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The Companies Registry's new e-Registry system has slashed the company incorporation process from four working days to less than 24 hours. Under the system, described by its users as being fast and easy, companies may start doing business immediately after completing the e-incorporation process.
In one recent case, the board of directors of a limited company that intended to tap into the Mainland market in early 2011 planned to set up an independent company in Hong Kong for each province and municipality in which they intended to invest. The plan involved setting up more than 10 companies in Hong Kong, and the company directors hoped to complete the incorporation process within three days to facilitate the required registration in the Mainland.
As the Companies Registry in Hong Kong would have taken four days to incorporate a company via paper-based application, the company directors discussed how to find a quicker way to register the new companies to start their business plans.
When the company directors learned that the Registry had just launched the e-incorporation facility to speed up incorporation, the company immediately proceeded with their business plan and completed all the procedures of incorporation and obtained the certificates required within one day. The company directors were very pleased with the efficiency of the new service.
The Registrar of Companies, Ms Ada L L Chung said, "The e-Registry (www.eregistry.gov.hk) is a 24-hour Internet portal and one-stop shop providing user-friendly, integrated services for company incorporation and business registration. It usually takes just about an hour to incorporate a company. Companies can start doing business immediately after completing the e-incorporation process."
Since the e-incorporation service was launched on March 18, 2011, a total of 16,604 electronic applications have been received up to the end of 2011.
When taking into account paper submissions as well, the Registry received a total of 150,190 applications for incorporation in 2011, an increase of 5.9 per cent when compared with 141,848 in 2010. "The e-incorporation service is apparently one reason for the increase in applications," Ms Chung said.
Big help for SMEs
Hong Kong is among the front runners offering a one-stop service for company incorporation and business registration.
"We have been developing our Integrated Companies Registry Information System in phases to deliver electronic services to our customers. This is in line with our strong commitment to delivering efficient, cost-effective and quality services to meet the ever-changing needs of the business community," Ms Chung said.
The e-incorporation service has also proved to be a boon to small and medium-sized enterprises (SMEs). According to the Registry's statistics, over 80 per cent of companies incorporated electronically are one-member companies and over 90 per cent are SMEs with authorised share capital of $10,000 or below.
"Our business helps clients set up companies," said Mr Ip Shu-on of Company Kit Registrations Limited. "E-incorporation is very convenient and helps us to set up companies quickly, often in 10 minutes."
Mr Chu Yiu-kwong of Victon Registrations Limited is equally pleased. "It used to take about four days to set up a company through printed documents. It could take longer when the Registry had to process a big load. Nowadays, new companies are able to register electronically within about 15 minutes despite a surge in the caseload in July last year," Mr Chu said.
Ms Lai Suk-yee of Offshorer Business Services (HK) Limited, agreed: "E-incorporation makes our work much easier," she said.
Successful applicants can get their electronic Certificates of Incorporation and Business Registration Certificates in one go.
Helping maintain Hong Kong's edge as a business hub
Hong Kong jumped from 6th to 5th out of 183 economies in the "Starting a business" indicator in the World Bank's "Doing Business Report 2012". The rise in Hong Kongˇ¦s ranking reflected the World Bank's recognition of the Registry's ongoing efforts to expedite the process of company incorporation.
"As a leading international business and financial centre, a convenient and efficient company registration system is crucial for Hong Kong," Ms Chung said.
"The new service not only makes it easy to start a business in Hong Kong, but also puts us on a par with business centres like London and Singapore. At the same time, it enhances Hong Kong's competitiveness and pull as a major international business and financial centre."
Key features
The new e-incorporation service took about 20 months to develop. The key features of the new one-stop electronic service are:
* Convenient, user-friendly, fast, secure, reliable and environmentally friendly.
* Applicants can incorporate companies and apply for business registration online simultaneously. Anyone who submits an application for company incorporation will be deemed to have applied for business registration.
* The entire process can be completed through one step in less than a day.
* A simple wizard guides applicants through the process. Electronic forms can be completed online or downloaded for offline completion.
* Samples of model Memorandum and Articles of Association (M&A) are provided.
* The system automatically adds into the model M&A-relevant information input by applicants, such as company name, details of share capital and founder members. Since applicants do not have to re-input data, it saves time and ensures data consistency.
* The Registry issues electronic Certificates of Incorporation and Business Registration Certificates in one go to successful applicants. Electronic certificates have the same legal effect as paper certificates.
* Companies can start business straight after completion of the e-incorporation process.
* The "e-Services User Guides" section of the e-Registry offers step-by-step demonstrations of user registration and one-stop electronic company incorporation and business registration.
* A 24-hour helpdesk service is available.
Other e-services
In the fourth quarter of 2011, the Registry also launched other new functions, namely bulk submission services, registration of registered agents and e-Monitor services at the e-Registry. The bulk submission function allows users to submit e-forms in bulk. Company and Individual Users of the e-Registry may appoint registered agents for the purpose of electronic filing at the e-Registry while the new e-Monitor service enables companies to keep track of their filing records.
In 2012, the e-Registry will be further enhanced to provide an electronic submission service for the more commonly filed statutory forms in stages. An e-search enhancement for smartphones will be available in the second quarter of 2012.
Ends/Wednesday, January 25, 2012
Issued at HKT 11:04
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