The total number of live local companies registered in Hong Kong reached 815,762 at the end of June this year, up 43,509 from the number at the end of 2009.

The number of companies registered under the Companies Ordinance has reached a record high. The total number of live local companies registered was 815,762 at the end of June this year, up 43,509 from the number at the end of 2009, according to statistics released by the Companies Registry on July 11.

“The number of new companies incorporated continued to rise in the first six months this year, with a monthly record averaging around 11,300,” the Registrar of Companies, Ada Chung, said.

A total of 67,669 new local companies were registered during the first half of 2010, representing an increase of 17.77% from 57,459 in the second half of 2009, and a surge of 30.22% from 51,965 in the first half of 2009.

Of these, 350 new non-Hong Kong companies had established a place of business in Hong Kong and registered under Part XI of the Companies Ordinance in the first half of this year, up 24.56% from 281 in the corresponding period of 2009. The total number of non-Hong Kong companies registered stood at 7,959 at the end of June this year.

According to Ms. Chung, the development of Phase II of the Integrated Companies Registry Information System is now in full swing, with the anticipated launch of the electronic incorporation of companies and a one-stop service for company incorporation and business registration in early 2011.  

With the new electronic services, the time required for incorporation of a company and business registration will be significantly reduced from four working days to less than one day. This improvement not only facilitates business, but also puts Hong Kong on a par with comparable jurisdictions, such as the U.K. and Singapore.

On July 7, the Hong Kong Legislative Council passed the Companies (Amendment) Bill 2010. Apart from the provisions on electronic company incorporation, the Amendment Ordinance also enables the Companies Registry to expedite the company name approval process. At the same time, it strengthens Hong Kong’s company name registration system to enhance enforcement against possible abuses by “shadow companies,” which are companies incorporated in Hong Kong with names very similar to existing and established trademarks or trade names.

The Registrar of Companies will be empowered to act pursuant to court orders to direct a shadow company to change its name and to substitute the company’s name with its registration number if it fails to comply with the Registrar's direction to change its name.

“The Amendment Ordinance also facilitates electronic and website communications between a company and its members. Relevant provisions are expected to be brought into operation later this year. By then, companies can disseminate information, including annual reports, to their members through the companies’ Web sites or other electronic means,” Ms. Chung said.

Through August 6, the Hong Kong Special Administrative Regional Government is consulting the public on the draft provisions of the new Companies Bill, with the aim of introducing the new bill into the Legislative Council by the end of this year.