Guide to Understanding Hong Kong Charity Structures

1. Company Limited by Guarantee (CLG)

This is the most common and robust structure for modern charities and NGOs. Instead of having shareholders who own pieces of the company, a CLG has "members" who guarantee to pay a nominal amount (often just HK$100) if the organization shuts down.

It creates a distinct legal entity separate from its founders. The organization can own property, enter into contracts, and sue or be sued in its own name. It requires a high level of transparency, including annual audits and filings with the Inland Revenue Department, making it a highly trusted structure for donors.

See all Section 88 CLGs.

2. Society Registered Under the Societies Ordinance

A very common structure for grassroots community groups, local clubs, and smaller associations.

Societies are much easier and cheaper to set up than a guaranteed company. However, they are not separate legal entities. This means the office-bearers (the committee members) can potentially be held personally liable for the debts or legal issues of the society.

See all Section 88 societies.

3. Trust

A legal arrangement where assets (like money, property, or investments) are handed over to "Trustees" who are legally obligated to manage those assets for a specific charitable purpose.

Trusts are often used by wealthy individuals, families, or corporations to set up philanthropic foundations or grant-making bodies. The structure is governed by a Trust Deed rather than a constitution, and the focus is usually on managing and distributing funds rather than running daily charitable operations.

See all Section 88 trusts.

4. Statutory Body Incorporated Under a Specific Ordinance

These are heavy-hitting, institutional organizations established by the Hong Kong government through their own specific pieces of legislation.

Organizations like the Tung Wah Group of Hospitals or the Po Leung Kuk operate under this framework. They are deeply embedded in the public infrastructure and are governed exactly according to the rules written into their specific Ordinance.

See all Section 88 statutory bodies.

5. Unincorporated Association

A formal arrangement where a group of people come together for a shared charitable purpose, governed by a set of rules or a constitution, rather than incorporating as a company.

This structure functions very differently depending on who is behind it. Because an Unincorporated Association does not have its own separate legal identity, the people running it take on personal legal responsibility.

• For private citizens: Because of the personal liability involved, this structure is usually only suitable for very small, low-risk community initiatives or neighborhood groups.
• For government or institutional bodies: You will sometimes see major, highly funded government committees or trust funds operating under this structure. In these unique cases, the committee members are protected because they are operating with the backing and indemnification of the government or a larger parent institution.

See all Section 88 unincorporated associations.

6. Registered Non-Hong Kong Company

An organization that was incorporated overseas but has registered a branch to operate locally in Hong Kong.

Many large, internationally recognized NGOs (such as global aid organizations or environmental groups) use this structure. They bring their global operations to Hong Kong while maintaining their original overseas corporate identity, subsequently applying for local Section 88 tax exemption.

See all Section 88 registered non-Hong Kong companies.

7. Company Limited by Shares

The standard structure for a normal, for-profit business. However, in rare cases, they can achieve charitable status.

To get Section 88 status, these companies must have strict clauses in their Articles of Association forbidding the distribution of profits or dividends to their shareholders. All profits must be reinvested into the social mission.

See all Section 88 companies limited by shares.

A Note on "Subsidiaries" in the Charity Register

If you browse the directory on Charity Finder (or refer to the IRD's list of Section 88 charities), you will notice thousands of "subsidiaries." In fact, while there are 11,039 parent charities in Hong Kong, there are 17,584 total recognized entities when you include their subsidiaries.

Unlike the corporate world where a subsidiary is a completely separate company, a charity subsidiary in Hong Kong is usually a specific branch, school, fund, or social enterprise project that operates under the legal and tax umbrella of the parent charity.

For example, a major statutory body might list its individual elderly care homes as subsidiaries. A large church might list its neighborhood youth centers. These subsidiaries don't have their own independent legal structure; they share the legal structure—and the Section 88 tax-exemption status—of their parent organization.

Summary

Understanding an organization's legal structure gives you a window into how it operates, how heavily it is regulated, and how it manages risk. Whether it's a small local society or a heavily audited company limited by guarantee, all of these structures can effectively deliver social impact when governed responsibly.