Have you ever thought about setting up your own charity but feel like it is something out of reach?
Recently, many friends have inquired about the tax exemption under Section 88 of the Inland Revenue Ordinance (referred to as 88 license). It shows that Hong Kong people are eager to involve in charity work but don’t know how to start.
In fact, Hong Kong actually does not have a definition or license of the so-called "charitable institution". However, under Section 88 of the Hong Kong Inland Revenue Ordinance, charitable institutions and trusts of a public nature are exempt from paying tax. Therefore, most people think that organizations that qualify for tax exemption under Section 88 are charities.
To establish a charity, a "guarantee company" is usually used to apply to the Hong Kong Inland Revenue Department. The main criteria for approval by the Inland Revenue Department are to see whether the applicant's purpose is to perform "charitable" work, and whether it is satisfied that it will actually perform the described charitable work and not for other purposes. Therefore, it is necessary to review the articles of establishment of the organization, the background of the management personnel, relevant activity plans, etc., and the procedures are relatively complicated. In addition, the tax bureau’s requirements for licensing have become increasingly strict in recent years, and it is not easy to successfully obtain an approval.
Our company has a lot of experience in successfully applying for 88 licenses. Clients only need to provide information about the purpose of establishment, the organization's activity ideas, etc., and our company can follow up the entire process. Starting from the establishment of a guarantee company, we assist in formulating tailor-made company articles of association, to preparing the required information for applying and obtaining the 88 license as soon as possible, so that your charity dream can come true earlier.
Regarding the benefits of establishing a charity and other application requirements, our company will publish more about this in the future.
If you are interested in setting up your own charity organization and realizing your dream of promoting public welfare, please contact us.
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