Secretary for Financial Services and the Treasury Christopher Hui said on Friday that a new law allowing overseas firms to re-domicile to Hong Kong will inject new momentum into growth.

His comments came as the SAR started accepting applications from firms incorporated overseas to relocate to the city while maintaining their legal identity and business continuity.

The company re-domiciliation regime was passed by the Legislative Council on May 14 and took effect from Friday.

Previously, companies that wanted to move to the city were required to wind up existing operations and shift all assets and transactions to the Hong Kong entity.

Under the new law, firms can move to the city while maintaining their legal identity and business continuity, which will help save on complex and costly legal procedures.

Following the move, French insurance giant AXA's Hong Kong and Macau arm was among the first batch of firms applying for such relocation.

Hui said in a post on his official blog he is glad that some firms have already reported they are actively preparing to apply for a relocation to Hong Kong.

"The new law has opened up a convenient path for interested companies to relocate to Hong Kong, while ensuring the safety and stability of the relocation process," he said.

"The continuous uncertainties in the global political and economic situation and the development of international market regulations have made Hong Kong's advantages more prominent.

"Relocating to Hong Kong will help enterprises cope with adverse factors in the external business environment."

Such applications, according to Hui, shall be examined and approved within two weeks if all required documents and materials are submitted.

He added that authorities will also provide appropriate support to the firms, while communicating with offshore jurisdictions to facilitate relocations.

Companies that are given approvals for the relocation will have a 120-day transitional period to complete the deregistration in its original place of incorporation.