Tuesday, May 15, 2012
The Registrar of Companies, Ada L L Chung, has announced that the capital duty currently levied on Hong Kong companies will be abolished from June 1, 2012.
Capital duty is currently levied in Hong Kong on a company having a share capital at a rate of HKD1 for every HKD1,000 (USD129) or part thereof, subject to a cap of HKD30,000 per case, on the amount of nominal share capital for registration of a company, an increase in the nominal share capital after incorporation, and the amount of premium for an issue of shares at a premium.
The abolition of the capital duty has been implemented by the Companies Ordinance (Amendment of Eighth Schedule) Order 2012. The Order was made by the Secretary for Financial Services and the Treasury, Professor K C Chan, to implement the Financial Secretary's proposal in the 2012-13 Budget to abolish capital duty levied on local companies.
"The abolition of the capital duty aims to enhance Hong Kong's attractiveness as a company domicile and our competitiveness as an international business centre. We are pleased that the legislative process has been completed and local companies will benefit from the initiative," Chung commented.
The amendments will be applicable to companies which lodge the relevant specified forms with the Companies Registry on or after June 1.