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INDUSTRY AND TRADE
On incorporation a company pays a registration fee of $100 plus $2 for every $1,000 of nominal capital. During the year 4,568 new companies were incorporated, 950 less than in 1973. The nominal capital of new companies registered during 1974 totalled about $2,488 million, 67 per cent less than the corresponding figure for the previous year. Of the new companies, 107 had a nominal share capital of $5 million or more. During the year 1,131 companies increased their nominal capital by amounts totalling about $4,299 million, on which fees were paid at the same rate of $2 per $1,000. At the end of the year there were 35,416 local companies on the register compared with 31,292 on December 31, 1973.
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, 81 such companies were registered and 64 ceased to operate. By the end of the year there were 870 companies registered from 46 countries, including 226 from the United States, 115 from Britain and 98 from Japan. Usually for tax reasons, many non-local companies 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, respec- tively. 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 Great Britain, or in the case of fire and marine insurance by maintaining similar deposits elsewhere in the Commonwealth. There are altogether 268 insurance companies, including 88 local companies, 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. The number of insolvencies coming before the court in 1974 was nevertheless the largest in any year since the war. During the year, 42 petitions in bankruptcy and 75 petitions for the compulsory winding-up of com- panies were presented to the court, and the court made 27 receiving orders and 62 winding-up orders. As in past years the Official Receiver was appointed trustee or liquidator in almost every case. Assets realised by the Official Receiver during 1974 amounted to about $14,266,630. In addition to these compulsory windings-up, 301 companies went into voluntary liquidation during the year, 289 by members' voluntary winding-up and 12 by creditors' voluntary winding-up.