TNAG-1054-FCO40-1304-Trade-relations-between-Hong-Kong-and-the-UK-1981 — Page 74

Business Registration Fees

The Business Registration Ordinance provides that, with a few exceptions, every person, firm or corpora- tion which carries on a business in Hong Kong, must register that business and pay an annual fee of HK$175 (US$35). Companies incorporated in Hong Kong under the Companies Ordinance which do not carry on a business are also required to be registered and to pay the annual fee, as is every overseas company which has established a place of business in Hong Kong but does not carry on business here.

Incorporating a Company

An individual wishing to incorporate a company in Hong Kong must comply with certain procedures, details of which are given in Section 9. He is required to pay a fee of HK$300 (US$60) for registration plus HK$4 (US$0.80) for every HK$1,000 (US$200) of nominal capital. Other fees payable are HK$10 (US$2) for both the Memorandum and the Articles of Association; HK$10 (US$2) for the statutory declaration of com- pliance with the requirements of the Companies Ordin- ance; HK$4 (US$0.80) for every HK$1,000 (US$200) on subsequent increases in nominal capital; and HK$10 (US$2) for each additional document filed with the Companies Registry. Any company incorporated or registered under the Companies Ordinance must also register with the Business Registration Office and pay the business registration fee of HK$175 (US$35).

Stamp Duty

The Stamp Ordinance is based on the United Kingdom Stamp Acts, which imposes a fixed duty on certain classes of documents and an ad valorem duty on others at rates which vary from 0.025 per cent to 2.75 per cent.

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Rates on Land and Buildings

As mentioned in Section 3, rates are levied on the occupation of premises.

Payment of rate has now been extended to most parts of the New Territories including the major industrial areas. The rate initially charged for premises in new rating areas is lower, but it will be progressively increased each year until the full New Territories rate of 11 per cent is reached.

Excise Duties

Only four groups of commodities-tobacco, alcoholic liquors, hydrocarbons and methyl alcohol, whether imported or locally manufactured-are subject to excise duty. The rates of duty are generally low. No duty is levied on exports. Drawback is payable in certain cases on locally manufactured commodities made from duty paid materials if exported direct from the factory or from an approved warehouse.

At present the main dutiable commodities of interest to industrialists are in hydrocarbon oils on which the duties per litre are:

Motor spirit and aircraft spirit Diesel oil for road vehicles

Trade Declaration Charges

HK$ US$

0.48 0.096

0.35 0.070

With the exception of transhipment cargo, transit cargo, ship and aircraft stores, personal baggage, postal packets, advertising material of no commercial value and gifts of a personal nature, all imports into and exports from Hong Kong are subject to a Trade Declaration Charge calculated as follows:

HK$ US$

Not exceeding HK$4,000 (US$800) 2.00 Each additional HK$1,000 (US$200)

or part thereof

0.40

0.50 0.10 Trade Declarations should be submitted to the Director of Trade Industry and Customs within 14 days of the arrival or departure of the consignment of goods concerned. The revenue raised from these charges is used to finance Hong Kong's trade promotional activities.

Registration Tax on Motor Vehicles

First Registration Tax is levied on motor vehicles when first registered in Hong Kong. The rates vary and are:

Rate

Private Cars

(a)

Where the C.I.F. value of the car does not exceed HK$20,000 (US$4,000)

35%

(b)

Where the C.I.F. value of the car exceeds

HK$20,000 (US$4,000) but does not

exceed HK$30,000 (US$6,000)

40%

(c)

Where the C.I.F. value of the car exceeds HK$30,000 (US$6,000)

45%

Motor cycles

35%

Other vehicles (except franchised buses)

15%

Left-hand-drive vehicles may not be registered or

licensed in Hong Kong, except in very special circum- stances.