A record number of companies were set up in March, as owners rushed to take advantage of the fee-free business registration that expired that month, Registrar of Companies Ada Chung Lai-ling said.
The Companies Registry said yesterday that 51,965 local firms were registered in the first six months of this year, up 13.41 per cent from 45,821 in the second half of last year, including a record 20,251 in March.
Ernst & Young tax partner Agnes Chan said: 'Many people set up companies to buy and sell real estate properties. Each unit may be held under one company.'
As of June 30, the total number of registered active firms was 741,082, up 30,316 from the end of last year.
The waiver, worth HK$1.6 billion for one year, was part of Financial Secretary John Tsang Chun-wah's giveaways in the 2008-09 budget.