Capital duty to be banished by June 1

It’s another move to grow a faltering economy by telling foreigners that Hong Kong is great for their businesses.

Registrar of Companies Ada Chung said the capital duty currently levied on Hong Kong companies under the Companies Ordinance will be abolished starting June 1.

She said the abolition of the capital duty aims to enhance Hong Kong's attractiveness as a company domicile and its competitiveness as an international business centre.

The abolition of the capital duty is implemented by the Companies Ordinance Order 2012. The Order was made by the Secretary for Financial Services & the Treasury Prof KC Chan to implement the Financial Secretary's proposal in the 2012-13 Budget to abolish the capital duty levied on local companies.

The amendments will be applicable to companies that lodge relevant specified forms concerning incorporation; increases in nominal share capital or the issuing of shares at a premium with the Companies Registry from June 1.