What is a company limited by guarantee in Hong Kong?
A company limited by guarantee in Hong Kong is a legal entity commonly used for non-profit organizations, charities, clubs, foundations, as well as professional organizations. It differs from a company limited by shares because it has no share capital and does not distribute profits to members.
Members instead commit to contribute a minimal sum (typically a fixed, small amount) to assets in the event that a company is to be wound up. This form gives limited liability protection to its members, as it would with a limited company.
Key characteristics of a company limited by guarantee in Hong Kong are:
- No share capital — its members are guarantors, not shareholders.
- Limited liability — members are only responsible for the amount that is guaranteed as per the Articles of Association.
- Commonly used for non-profit activities — i.e., charity organizations, religious clubs, sports clubs, school clubs, etc.
- Operated under Companies Ordinance (Cap. 622) — compliance with jurisdictional laws of Hong Kong is ensured.
- Has to submit yearly returns as well as keep proper accounting records, like any other registered company.
For companies seeking to register a company limited by guarantee in Hong Kong quickly, as well as in compliance with regulatory requirements, One IBC Hong Kong is experienced in providing expert assistance in company registration, structuring, as well as subsequent compliance.
