Hong Kong: 48,000 Local Companies Newly Registered in the Mid-2020
By the end of June 2020, Hong Kong’s total number of local companies registered was 1.38 million. Additionally, 48,760 local companies were newly registered in the first half of 2020 according to a new report by the Companies Registry.
876 foreign entities established a place of business in Hong Kong by newly registering a company in Hong Kong during the first half of 2020 – compared to 1,093 registrations for such types of companies in the second half of 2019. By the end of June 2020, the total number of non-Hong Kong-registered companies amounted to 13,117.
As announced by the Financial Secretary in the 2020-21 Budget, one part of the relief measures to support enterprises is the Companies (Fees) (Amendment) Regulation 2020. The Regulation will take effect on October 1, 2020, and will waive the registration fees for two years on annual returns that are delivered on time.
To encourage wider use of the Registry’s electronic services, the fees payable for company incorporation and registration by electronic means of non-Hong Kong companies will also be reduced by 10%.
The Registrar of Companies has noted that the Limited Partnership Fund Bill was passed by the Legislative Council on July 9 and the new regime would help attract private equity and venture capital funds to set up and operate in Hong Kong. This will also help to facilitate the channelling of capital into corporations, specifically start-ups in the innovation and technology field in the Guangdong-Hong Kong-Macao Greater Bay Area.
Extensive Government Support
The Hong Kong Government has also implemented other extensive support measures such as funding schemes, investment programmes, and special support initiatives for various industries:
- Small and medium-sized enterprise (SME) Financing Guarantee Scheme: This scheme provides loans up to a maximum of HKD 2 million to eligible SMEs. The loan will provide an option to make payments of interest only (with no repayments of the principal) for the first six months.
- Extended Funding from Innovation & Technology Commission: Applicant companies who are conducting Research and Development (R&D) can now obtain funding support in various special schemes which help to boost recruitment of researchers and post-doctoral talents to conduct R&D work in Hong Kong.
- Anti-epidemic Support Scheme: This scheme provides financial relief to the Property Management Sector and extends subsidy coverage to industrial buildings and commercial buildings. The second round of the Anti-epidemic Fund allows for the implementation of relief measures worth $137.5 billion.