INDUSTRY AND TRADE
Local companies are incorporated under the Companies Ordinance, which is similar to, but in some aspects quite different to, the United Kingdom Companies Acts. The ordinance is subject to continual revision and improvement on the advice of the Standing Committee on Company Law Reform which was set up in 1984. The primary task of the committee is to ensure that Hong Kong's company law meets the most up-to-date needs of government and business.
Further amendments to the ordinance, which were fully implemented in 1991, included the Companies (Amendment) (No. 5) Ordinance 1990 and the Companies (Amendment) Ordinance 1991. The former, which came into force on March 1, 1991, has considerably streamlined the process for the incorporation of new companies – which now stands at seven working days - with particular reference to the selection of company names. The latter, which came into force on September 1, 1991, permits companies to purchase their own shares in certain circumstances, and introduces statutory provisions on what profits are distributable.
During the year, several initiatives to improve the registry's operational efficiency were implemented. These included centralising and improving office accommodation and layout, a computerised public search system for company names and an interim computerised index indicating companies which have changed their registered addresses. In addition, a number of administrative and legislative proposals are being processed to improve further the registry's efficiency, including increased computerisation, streamlining the registration of charges, and relaxing the statutory requirements regarding dormant companies.
On incorporation, a company pays a registration fee of $1,000 plus $6 for every $1,000 of nominal capital. In 1991, 43 975 new companies were incorporated 17 828 more than in 1990. The nominal capital of new companies registered totalled $4,097 million. Of the new companies, 131 had a nominal share capital of $5 million or more. During the year, 9 388 companies increased their nominal capital by amounts totalling $28,599 million on which fees were paid at the same rate of $6 per $1,000. At the end of 1991, there were 304 538 local companies on the register, compared with 265 452 in 1990.
Companies incorporated overseas are required to register certain documents with the registry within one month of establishing a place of business in Hong Kong.
A registration fee of $500 and some incidental filing fees are payable in such cases. During the year, 402 of these companies were registered and 209 ceased to operate. At the end of the year, 2 828 companies were registered from 69 countries, including 635 from the United States 354 from the United Kingdom and 299 from Japan.
The registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partnerships.
Money Lenders
Under the Money Lenders Ordinance, which came into force in December 1980 and was amended in July 1988, anyone wishing to carry on business as a money lender must apply to a Licensing Court for a licence. The ordinance does not affect bankers and deposit- taking companies authorised under the Banking Ordinance.
Any application for a licence is in the first instance submitted to the Registrar General as Registrar of Money Lenders and a copy is sent to the Commissioner of Police, who may object to the application. The application is advertised, and any member of the public who has an interest in the matter also has the right to object. During the year, 508 applications
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