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Company Limited by Guarantee Hong Kong


Company Limited by Guarantee Hong Kong | Bestar
Company Limited by Guarantee Hong Kong | Bestar

A company limited by guarantee (CLG) is a type of company in Hong Kong that does not have a share capital. Instead, it has members who agree to contribute a predetermined sum to the company if it is wound up. The liability of the members is limited to the amount they have guaranteed to contribute.


CLGs are typically used for non-profit organizations, such as charities, clubs, and societies. They can also be used by professional associations, trade unions, and other organizations that do not need to raise capital from shareholders.


To incorporate a CLG in Hong Kong, you will need to file the following documents with the Companies Registry:

  • Memorandum of Association

  • Articles of Association

  • Declaration of Compliance

  • Application for Registration

  • Statement of Guarantee

The filing fees for incorporating a CLG are HK$1,000.


The advantages of using a CLG include:

  • Limited liability for members

  • Separate legal personality from members

  • No need to raise capital from shareholders

  • Flexibility in terms of membership

The disadvantages of using a CLG include:

  • More complex to incorporate than a company limited by shares

  • More stringent requirements for filing annual returns

  • More limited investment opportunities

If you are considering setting up a non-profit organization in Hong Kong, a CLG may be the right legal structure for you. However, you should carefully consider the advantages and disadvantages before making a decision.


Here are some of the specific requirements for a CLG in Hong Kong:

  • The company must have at least two members.

  • The company must have a registered office in Hong Kong.

  • The company must have a company name that ends with the words "Limited by Guarantee" or the abbreviation "L.G.".

  • The company must have a Memorandum of Association and Articles of Association.

  • The company must file an annual return with the Companies Registry.

If you are interested in incorporating a CLG in Hong Kong, you can contact a corporate services provider for assistance.


Why Company Limited by Guarantee


There are several reasons why you might choose to incorporate a company limited by guarantee (CLG) in Hong Kong.

  • Limited liability for members. The liability of the members of a CLG is limited to the amount they have guaranteed to contribute to the company if it is wound up. This means that the members' personal assets are not at risk if the company runs into financial difficulties.

  • Separate legal personality from members. A CLG is a separate legal entity from its members. This means that the company can sue or be sued, own property, and enter into contracts in its own name. It also means that the members are not personally liable for the debts and liabilities of the company.

  • No need to raise capital from shareholders. A CLG does not have a share capital. This means that the company does not need to raise capital from shareholders. This can be an advantage for non-profit organizations that do not need to generate profits.

  • Flexibility in terms of membership. The membership of a CLG is not restricted to shareholders. This means that the company can have members who are not investors. This can be an advantage for non-profit organizations that want to have a broad membership base.

Here are some of the specific requirements for a CLG in Hong Kong:

  • The company must have at least two members.

  • The company must have a registered office in Hong Kong.

  • The company must have a company name that ends with the words "Limited by Guarantee" or the abbreviation "L.G.".

  • The company must have a Memorandum of Association and Articles of Association.

  • The company must file an annual return with the Companies Registry.

If you are considering setting up a non-profit organization in Hong Kong, a CLG may be the right legal structure for you. However, you should carefully consider the advantages and disadvantages before making a decision.


Here are some of the other advantages of using a CLG in Hong Kong:

  • Tax benefits. Non-profit organizations that are incorporated as CLGs may be eligible for certain tax benefits, such as exemption from profits tax.

  • Ease of incorporation. The process of incorporating a CLG is relatively simple and straightforward.

  • Flexibility in terms of operations. CLGs have a lot of flexibility in terms of how they operate. This can be an advantage for non-profit organizations that need to be able to adapt to changing circumstances.

If you are interested in incorporating a CLG in Hong Kong, you can contact a corporate services provider for assistance.


Why Hong Kong


There are several reasons why you might choose to incorporate a company limited by guarantee (CLG) in Hong Kong.

  • Hong Kong is a financial hub. Hong Kong is a major financial center in Asia. This means that it has a well-developed legal and regulatory framework for businesses, including CLGs.

  • Hong Kong has a favorable tax regime. Non-profit organizations that are incorporated in Hong Kong may be eligible for certain tax benefits, such as exemption from profits tax.

  • Hong Kong is a stable and secure jurisdiction. Hong Kong is a stable and secure jurisdiction with a strong rule of law. This makes it an attractive place to incorporate a CLG.

  • Hong Kong is a convenient location. Hong Kong is a convenient location for businesses that operate in Asia. It is well-connected to other major cities in the region, and it has a modern infrastructure.

If you are considering setting up a non-profit organization in Hong Kong, a CLG may be the right legal structure for you. However, you should carefully consider the advantages and disadvantages before making a decision.


Here are some of the specific requirements for a CLG in Hong Kong:

  • The company must have at least two members.

  • The company must have a registered office in Hong Kong.

  • The company must have a company name that ends with the words "Limited by Guarantee" or the abbreviation "L.G.".

  • The company must have a Memorandum of Association and Articles of Association.

  • The company must file an annual return with the Companies Registry.

If you are interested in incorporating a CLG in Hong Kong, you can contact a corporate services provider for assistance.


Here are some of the other reasons why you might choose to incorporate a CLG in Hong Kong:

  • To raise funds. CLGs can raise funds through donations, grants, and other means. This can be an advantage for non-profit organizations that need to raise money to support their activities.

  • To gain credibility. CLGs are seen as legitimate and credible organizations. This can be an advantage for non-profit organizations that are trying to attract donors, volunteers, and partners.

  • To protect assets. The assets of a CLG are protected from the personal liability of the members. This can be an advantage for non-profit organizations that want to ensure that their assets are used for their intended purpose.

Ultimately, the decision of whether or not to incorporate a CLG in Hong Kong is a complex one. You should carefully consider all of the factors involved before making a decision.


How Bestar can Help


Bestar is a corporate services provider that can help you incorporate a company limited by guarantee (CLG) in Hong Kong. We offer a comprehensive range of services, including:

  • Company formation: Bestar can help you with the entire process of incorporating a CLG, from drafting the necessary documents to filing them with the Companies Registry.

  • Registered office: Bestar can provide you with a registered office in Hong Kong, which is required by law for all CLGs.

  • Accounting and taxation: Bestar can help you with your accounting and taxation needs, ensuring that your CLG complies with all applicable laws and regulations.

  • Professional advice: Bestar can provide you with professional advice on any matter related to your CLG, such as drafting contracts or resolving disputes.

  • Corporate secretarial services: Bestar can provide you with a range of corporate secretarial services, such as filing annual returns and keeping minutes of meetings.

Bestar is a reputable corporate services provider with a wealth of experience in helping CLGs in Hong Kong. We can help you with all aspects of incorporating and running your CLG, so you can focus on your core activities.


Here are some of the specific services that Bestar can offer for CLGs in Hong Kong:

  • Company formation: Bestar can help you with the following:

    • Drafting the Memorandum of Association and Articles of Association

    • Filing the necessary documents with the Companies Registry

    • Obtaining a business registration number

    • Opening a bank account

  • Registered office: Bestar can provide you with a registered office address in Hong Kong. This is a requirement for all CLGs.

  • Accounting and taxation: Bestar can help you with the following:

    • Preparing financial statements

    • Filing tax returns

    • Advising on tax planning

  • Professional advice: Bestar can provide you with professional advice on any matter related to your CLG, such as drafting contracts or resolving disputes.

  • Corporate secretarial services: Bestar can provide you with the following:

    • Filing annual returns

    • Keeping minutes of meetings

    • Organizing board meetings

If you are considering incorporating a CLG in Hong Kong, Bestar is a good option to consider. We offer a comprehensive range of services and have a wealth of experience in helping CLGs.


Contact us today!


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