ENG-1970 — Page 89

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INDUSTRY AND TRADE

which have established a place of business in the Colony. Local companies are incorporated under the Companies Ordinance, which is based on the (now superseded) Companies Act 1929 of Great Britain. However, the Companies Law Revision Committee, which was reconstituted in 1968, has now reached an advanced stage in its consideration of the relevant legislation with a view to recommending revision thereof.

On incorporation a company pays a registration fee of $100 plus $2 for every $1,000 of nominal capital. In 1970, 3,419 new com- panies were incorporated, 873 more than the total incorporated in 1969. The nominal capital of new companies registered during 1970 totalled $2,222,980,360, 93 per cent more than the corresponding figure for the previous year. Of the new companies, 55 had a nominal share capital of $5 million or more. At the end of the year there were 18,229 local companies on the register compared with-15,167 on December 31, 1969.

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 84 such companies were registered and 27 ceased to operate. By the end of the year there were 696 companies registered from 44 countries, including 181 from the United States, 95 from the United Kingdom and 68 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 Acts 1958-67 in Great Britain, or-in the case of fire and marine insurance by maintaining similar deposits elsewhere in the Com- monwealth. There are altogether 210 insurance companies, including 55 local companies, transacting such business in Hong Kong. The