ENG-1967 — Page 106

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INDUSTRY AND TRADE

companies are incorporated under the Companies Ordinance, which is based on the (now superseded) Companies Act 1929 of Great Britain. On incorporation, a company pays a registration fee of $100 plus $2 for every $1,000 of nominal capital. In 1967, 1,239 new companies were incorporated, 145 less than the total incorporated in 1966 due no doubt to the adverse effect of the disturbances. The nominal capital of new companies registered during 1967 totalled $458,521,990, 18 per cent less than the corresponding figure for the previous year. Of the new companies, seven had a nominal share capital of $5 million or more. At the end of the year there were 11,631 local companies on the register compared with 10,646 on December 31, 1966.

Companies incorporated outside Hong Kong are required to register certain documents with the Companies Registry within one month of establishing a place of business in the Colony. Only small filing fees are payable in such cases. During the year 44 such companies were registered and 33 ceased to operate. By the end of the year there were 599 companies registered from 39 countries including 149 from the United States, 98 from the United Kingdom and 59 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, respectively. 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 Act 1958 (as amended by the Companies Act 1967) in Great Britain, or- —in the case of fire and marine insurance-by maintaining adequate deposits elsewhere in the Commonwealth. There are, altogether 204 insurance companies, including 49 local companies, transacting such business in Hong Kong. The approval of the Governor in Council 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,