ENG-1969 — Page 108

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INDUSTRY AND TRADE

figure for the previous year. Of the new companies, 19 had a nominal share capital of $5 million or more. At the end of the year there were 15,167 local companies on the register compared with 12,929 on December 31, 1968.

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 52 such companies were registered and 20 ceased to operate. By the end of the year there were 639 companies registered from 42 countries, including 168 from the United States, 92 from the United Kingdom and 62 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, 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 203 insurance companies, including 51 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, and with the registration of limited partnerships, Chinese partner- ships and money-lenders.

BANKRUPTCIES AND LIQUIDATIONS

In Hong Kong the number of business failures in which recourse is had to formal insolvency proceedings in court is always comparatively small in relation to the total number of businesses closing down. Nevertheless, during the year 13 petitions in

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