What is a Section 88 charity license in Hong Kong?

Section 88 of the Inland Revenue Ordinance (Cap. 112) recognizes charitable institutions or trusts of a public character. Recognition makes the entity exempt from profits tax and makes donations to it tax-deductible.

Can you buy a Section 88 charity in Hong Kong?

You acquire the company or trust that holds Section 88 status via share transfer, then notify the Inland Revenue Department of changes to directors or trustees. The charitable objects in the constitution must be preserved.

How long does a new Section 88 application take?

A fresh application to the IRD typically takes 3-6 months and there is no guarantee of approval. Acquiring an existing recognized entity via share transfer is significantly faster.

What are charitable purposes under Hong Kong law?

Relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community, following the heads of charity recognized by Hong Kong courts.

Charity License (Section 88) in Hong Kong

A Section 88 charity license — strictly, recognition as a charitable institution under Section 88 of the Inland Revenue Ordinance (Cap. 112) — is what turns a Hong Kong entity into a tax-exempt charitable body. Donations to it become tax-deductible, and its profits are exempt from profits tax. Foundations, NGOs, religious bodies and fundraising organizations all need it.

What Section 88 Status Gives You

Profits tax exemption — income and gains applied to charitable purposes are exempt
Tax-deductible donations — donors can deduct donations (minimum HK$100 per receipt) from assessable income or profits
Charitable status for banks and platforms — recognized status for fundraising campaigns and grant applications
Credibility — listed on the IRD's list of recognized charities

New Application vs Buying an Existing Charity Entity

Factor	Buy Existing Entity	Apply New
Timeline	3–5 weeks (share transfer)	3–6 months, not guaranteed
Approval risk	None — status already recognized	IRD may refuse or query objects
Track record	Existing filing history	Start from zero
Best for	Fast launch of foundations/NGOs	Custom objects from day one

How the Transfer Works

Enquiry & NDA — receive the entity's details under NDA
Due diligence — review constitution, charitable objects, IRD correspondence and filing record
Share transfer — acquire the company holding the status
IRD notification — notify the Inland Revenue Department of director/trustee changes
Operate — funds must continue to be applied to charitable purposes

Key Obligations After Acquisition

Funds and assets must be applied to charitable purposes only
Annual filings with the Companies Registry and IRD
Proper books and records of donations and expenditure
Any change of directors/trustees notified to the IRD

Easy Biz currently has Section 88 charity entities on offer, alongside Money Lender (MLO), SFC, school registration and other licensed companies. All transfers are handled face-to-face at our Star House, TST office with real documents before you pay.

Licenses on offer right now

Money Lender (MLO) HK$130,000 · Charity (Section 88) · School Registration (EDB) · SFC Type 1/4/9 & 4+9 · TCSP · MSO · Travel Agent · Employment Agency · EAA

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