ENG-1992 — Page 122

INDUSTRY AND TRADE

Companies Registry

The Companies Registry of the Registrar General's Department keeps records of all companies incorporated in Hong Kong and of all overseas companies that have established a place of business in Hong Kong.

Local companies are incorporated under the Companies Ordinance, which is similar to, but in some aspects quite different from, the United Kingdom Companies Acts. The ordinance is subject to continual revision and improvement on the advice of the Standing Committee on Company Law Reform which was set up in 1984. The primary task of the committee is to ensure that Hong Kong's company law meets the up-to-date needs of government and business.

A recent amendment to the ordinance is the Companies (Amendment) Ordinance which was enacted in December 1992 and will come into operation on a day to be appointed by the Governor. It will transfer the responsibility for the vetting of prospectuses from the Companies Registry to the Securities and Futures Commission and the Stock Exchange of Hong Kong.

During 1992 a new and more powerful computer system with twice the capacity of the previous system was installed in the Companies Registry. It commenced its live run on June 1, 1992. As a result of this enhanced system, the Companies Registry is considering the implementation over the next few years of a series of new computerised programmes beginning with the computerisation of the Document Index and the Control Book of incoming documents. During the year, other improvements achieved in the Registry's operational efficiency included the availability for search of an index of charges pending registration in the form of a computer print out, the printing of some certificates of registered charges by personal computer, the printing of certificates of incorporation of companies by computer, and further improvements in office accommodation and layout. Officers from the Finance Branch of the Government Secretariat and consultants from Coopers and Lybrand were invited to study the procedures undertaken in the Registry's Charges and Public Search Sections. As a result of implementing their recommendations, there have been significant improvements in the productivity and service levels of these sections.

On incorporation, a company pays a registration fee of $1,000 plus $6 for every $1,000 of nominal capital. In 1992, 58 110 new companies were incorporated, 14 135 more than in 1991. The nominal capital of new companies registered totalled $5,208 million. Of the new companies, 235 had a nominal share capital of $5 million or more. During the year, 11 657 companies increased their nominal capital by amounts totalling $45,574 million on which fees were paid at the same rate of $6 per $1,000. At the end of 1992, there were 358 129 local companies on the register, compared with 304 538 in 1991.

Companies incorporated overseas are required to register certain documents with the registry within one month of establishing a place of business in Hong Kong.

A registration fee of $500 and some incidental filing fees are payable in such cases. During the year, 550 of these companies were registered and 185 ceased to operate. At the end of the year 3 193 companies were registered from 72 countries, including 656 from the United States, 365 from the United Kingdom and 299 from Japan.

The registry also deals with the incorporation of trustees under the Registered Trustees Incorporation Ordinance, and with the registration of limited partnerships.

93