Reforming Business Registration in Hong Kong Ms Ada Chung Registrar of Companies 30 March 2009

Why is Hong Kong so special ? Gateway to China HK

Why is Hong Kong so special ? (2) Freest economy of the world for the 15 th consecutive year (the Heritage Foundation) Ranked 1 st in the 2007 Survey of Corporate Governance in Asia (the Asian Corporate Governance Association) Ranked 1 st in the Inward Foreign Investment Performance Index of the World Investment Report 2008 (the United Nations Conference on Trade & Development)

Freest economy of the world for the 15 th consecutive year (the Heritage Foundation)

Ranked 1 st in the 2007 Survey of Corporate Governance in Asia (the Asian Corporate Governance Association)

Ranked 1 st in the Inward Foreign Investment Performance Index of the World Investment Report 2008 (the United Nations Conference on Trade & Development)

The Companies Registry

Incorporating a Hong Kong Company Section 4 of the Companies Ordinance: Any one or more person may, for any lawful purpose, incorporate a company Any one, whether a Hong Kong citizen or not, can incorporate a company on his own. No agency system. There is no resident requirement on directors of a company

Section 4 of the Companies Ordinance:

Any one or more person may, for any lawful purpose, incorporate a company

Any one, whether a Hong Kong citizen or not, can incorporate a company on his own. No agency system.

There is no resident requirement on directors of a company

Recent Major Improvement Initiatives (1) Implementation of Phase I of the Integrated Companies Registry Information System (ICRIS) New filing requirements for non-Hong Kong companies Shortening the time for processing incorporation documents Streamlining incorporation requirements One-stop service for company incorporation and business registration

Implementation of Phase I of the Integrated Companies Registry Information System (ICRIS)

New filing requirements for non-Hong Kong companies

Shortening the time for processing incorporation documents

Streamlining incorporation requirements

One-stop service for company incorporation and business registration

Recent Major Improvement Initiatives (2) - Implementation of ICRIS Phase I of ICRIS was implemented on 28 February 2005: Paperless document processing workflow Online search services

Phase I of ICRIS was implemented on 28 February 2005:

Paperless document processing workflow

Online search services

Recent Major Improvement Initiatives (3) – New Filing Requirements for Non-Hong Kong Companies Annual returns of non-Hong Kong companies Relevant provision – section 334 of the Companies Ordinance Deliver an annual return for registration within 42 days after each anniversary of the date of registration of the company Escalating filing fee - HK$180 up to HK$4,800

Annual returns of non-Hong Kong companies

Relevant provision – section 334 of the Companies Ordinance

Deliver an annual return for registration within 42 days after each anniversary of the date of registration of the company

Escalating filing fee - HK$180 up to HK$4,800

Recent Major Improvement Initiatives (4) – New Filing Requirements for Non-Hong Kong Companies Compliance rate on filing of annual returns by non-Hong Kong companies

Compliance rate on filing of annual returns by non-Hong Kong companies

Recent Major Improvement Initiatives (5) – Shortening the Time for Processing Incorporation Documents Position mentioned in the Doing Business Report 2009 - 7days for incorporation The time for processing incorporation of Hong Kong companies was shortened with effect from 2 January 2008 as a result of streamlining of operation procedures and redeployment of resources: 6 working days 4 working days

Position mentioned in the Doing Business Report 2009 - 7days for incorporation

The time for processing incorporation of Hong Kong companies was shortened with effect from 2 January 2008 as a result of streamlining of operation procedures and redeployment of resources:

6 working days

4 working days

Recent Major Improvement Initiatives (6) – Streamlining Incorporation Requirements After the introduction of a new incorporation form, newly incorporated companies are no longer required to file separate notifications on essential company particulars after incorporation since 11 July 2008 Impact on “Starting a Business” in the Doing Business Report The number of steps has been reduced from 5 to 4 With the removal of the step, the overall time for “Starting a Business” has also been reduced by 1 day

After the introduction of a new incorporation form, newly incorporated companies are no longer required to file separate notifications on essential company particulars after incorporation since 11 July 2008

Impact on “Starting a Business” in the Doing Business Report

The number of steps has been reduced from 5 to 4

With the removal of the step, the overall time for “Starting a Business” has also been reduced by 1 day

Recent Major Improvement Initiatives (7) – One-stop Service for Company Incorporation and Business Registration Establishment of a Receipt and Despatch Counter of the Business Registration Office in the Companies Registry on 1 December 2008

Establishment of a Receipt and Despatch Counter of the Business Registration Office in the Companies Registry on 1 December 2008

The Path Ahead Phase II of ICRIS – online incorporation and document filing Further integration of company incorporation and business registration processes online Rewrite of Companies Ordinance Companies Registry: http://www.cr.gov.hk Inland Revenue Department: http://www.ird.gov.hk

Phase II of ICRIS – online incorporation and document filing

Further integration of company incorporation and business registration processes online

Rewrite of Companies Ordinance

Companies Registry: http://www.cr.gov.hk

Inland Revenue Department: http://www.ird.gov.hk

Thank you !

Thank you !