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:
- 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.