If the existing limited company is not suitable for the daily operations of a charitable organization, it is advisable to establish a new guarantee limited company to apply for the 88 license. This may involve adjusting the composition of the governance structure and business model. If the existing company has significant differences from the requirements of the 88 license or if you wish to maintain the independence and operational methods of the current company, then establishing a completely new guarantee limited company may be a better option.

• To apply for the tax-exempt 88 license for a charitable organization, you need to submit a draft of the organization's articles of association, a 12-month activity plan, a list of governance organization members, and an application form to the tax department. The Charity Donations Section is responsible for reviewing and approving the application. For businesses that have been operating for one year or more, relevant documents also need to be provided simultaneously.

• The approval process for each document submission typically takes around 4 months. The entire application process generally takes between 9 months to 1.5 years, with some complex cases potentially requiring even more time.

• In addition to ensuring the completeness of the documents, it is essential to ensure that the organization meets the qualifications for being a tax-exempt charitable organization, including meeting legal definitions, having charitable purposes and activities, and conforming to the tax department's recognized standards for charitable nature.

• After a successful application, the company is required to fulfill its duties under the exemption regulations, ensuring that its activities comply with regulations and make a contribution to society.

Charitable organizations typically prohibit the distribution of income and assets to all members of the governance organization or directors. This means that charitable organizations are not allowed to directly or indirectly transfer income and assets to members in the form of dividends, bonuses, or any other means. Similarly, the board of directors or members of the governance organization of a charitable organization are prohibited from receiving salaries or remuneration, and they cannot be appointed to positions that receive compensation or fees. Charitable organizations are also not allowed to provide remuneration or other benefits in the form of money or its equivalent to the board of directors, executive committee, or members of the governance organization. These provisions are in place to ensure that the funds of the charitable organization are used for public welfare purposes rather than personal financial gain.