INDUSTRY AND TRADE
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registered during 1973 totalled $7,563,374,200-36 per cent more than the correspond- ing figure for the previous year. Of the new companies, 264 had a nominal share capital of $5 million or more. During the year 1,555 companies increased their nominal capital by amounts totalling $23,761,743,000, on which fees were paid at the same rate of $2 per $1,000. At the end of the year there were 31,292 local companies on the register compared with 26,067 on December 31, 1972.
Companies incorporated overseas are required to register certain documents with the Companies Registry within one month of establishing a place of business in Hong Kong. Only small filing fees are payable in such cases. During the year, 74 such com- panies were registered and 53 ceased to operate. By the end of the year there were 853 companies registered from 45 countries, including 225 from the United States, 110 from Britain and 99 from Japan. Usually for tax reasons, many non-local com- panies incorporate a subsidiary in Hong Kong in preference to operating a branch office.
All insurance companies wishing to transact life, fire or marine insurance business in Hong Kong must comply with the provisions of the Life Insurance Companies Ordinance or the Fire and Marine Insurance Companies Deposit Ordinance. In addition to the filing of annual accounts, these ordinances require deposits to be made. with the Registrar of Companies, unless the company qualifies for exemption by complying with the Insurance Companies Acts 1958–67 in Britain, or-in the case of fire and marine insurance-by maintaining similar deposits elsewhere in the Com- monwealth. There are altogether 243 insurance companies, including 73 local com- panies, transacting such business in Hong Kong. The approval of the Registrar General must be obtained for transacting motor vehicle third party insurance business.
The Companies Registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partnerships and money-lenders.
Bankruptcies and Liquidations
In Hong Kong the number of business failures in which recourse leads to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down. During the year, 27 petitions in bankruptcy and 42 petitions for the winding-up of companies were presented to the court, and the court made 19 receiving orders, one administration order, and 37 orders for the winding-up of companies. For many years, the Official Receiver has become trustee or liquidator in almost every case, and this was so again in 1973. The assets realised by the Official Receiver during 1973 were about $30,259,598. In addition to the compulsory windings up, 199 companies went into voluntary liquidation during the year, 189 by members' voluntary winding-up and 10 by creditors' voluntary winding-up.