Hong Kong to abolish capital duty in June

HONG KONG - The capital duty currently levied on Hong Kong companies will be abolished from next month, the city's Registrar of Companies Ada Chung said on Sunday.

The scope of the abolition relates to the amount of nominal share capital for registration of a company, an increase in the nominal share capital after incorporation and the amount of premiums for an issue of shares at a premium, she said.

"The abolition of the capital duty aims to enhance Hong Kong's attractiveness as a company domicile and our competitiveness as an international business center. We are pleased that the legislative process has been completed and local companies will benefit from the initiative," she said.

The abolishment, however, will cut the financial hub's government revenue by some 90 million HK dollars ($11.6 million) each year.

Currently under the Companies Ordinance of Hong Kong, for every or part of 1,000 HK dollars of the nominal share capital, the capital fee for the registration is 1 HK dollar and it is subject to a maximum fee of 30,000 HK dollars per case.