Setting up a Non-Profit Organization in Hong Kong (Part Two)

In our previous blog we mentioned that you have two options when setting up a non-profit organization in Hong Kong. First one – you can set up a company. And here is the second one:

1. Set Up a Society

To register as a Society, an organization must register with the Societies Office of the Police Department (http://www.police.gov.hk/)

Many less formal industry associations and social/recreational groups opt for this.

Why? There are some advantages:

–       Cost – minimal. A society is free of the statutory controls which companies are subject to, and can be inexpensive to run.

– There is no fee for registering under the Societies Ordinance.

– Simplicity – set-up process is simple and hassle-free. A registered society can be very simple to run. Minimal formalities are required and administrative complexity can be kept to a minimum.

However, there are also a few disadvantages to consider:

–       Unincorporated structure: if the organization becomes inactive, great difficulties can sometimes be encountered in identifying he persons with the authority to take decisions as to the disposal of the assets

– Personal liability: both members of the  management committee and sometimes the members of the association itself may incur.