BWI: Hong Kong Steps up Efforts to Streamline Company Incorporation Process

Press release from Business Wire India
Source: GuideMeHongKong.com
Thursday, May 13, 2010 10:00 AM IST (04:30 AM GMT)
Editors: General: Economy; Business: Banking & financial services, Business services, Financial Analyst, Stock exchanges
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Hong Kong Steps up Efforts to Streamline Company Incorporation Process
The Launch of the Second Phase of Public Consultation on the Provisions of the Hong Kong Companies Bill will focus on Streamlining the Hong Kong company incorporation process to make it faster and cheaper

Hong Kong S.A.R, Thursday, May 13, 2010 -- (Business Wire India) -- Hong Kong's Financial Services and Treasury Bureau (FSTB) has announced the launch of the second phase of public consultation on the provisions of the Hong Kong Companies Bill as part of its ongoing effort to reform the Hong Kong company law, reports www.GuideMeHongKong.com.

In order to make Hong Kong company law more business-friendly, the government has launched a comprehensive effort to rewrite the Companies Ordinance. In this regard, the Companies (Amendment) Bill 2010 and the Business Registration (Amendment) Bill 2010 were gazetted in January 2010. Both the bills will be introduced into the Legislative Council during 2010. While the Companies Bill aims at enhancing company formation in Hong Kong, the Business Registration Bill will help in implementing a one-stop service for company incorporation (with the Companies Registry) and business registration (with the Inland Revenue Department). The new measures will help entrepreneurs with Hong Kong company registration within one working day and simplify the regulatory regime for Hong Kong companies.

The first phase of public consultation on the Companies Bill ended in March 2010 and covered corporate governance matters and regulatory compliance. Some of the proposed amendments included codifying directors' duties, restricting the appointment of corporate directors, improving disclosure of company information, streamlining accounting and reporting requirements for Small and Medium Enterprises, removing the authorized capital requirement for Hong Kong company formation, enhancing shareholder participation, improving the enforcement regime for Hong Kong companies, and allowing companies to dispense with AGMs, among others.

According to Ms. Jacqueline Low, the Director of Corporate Services at Janus Corporate Solutions - the company that runs the GuideMeHongKong.com site, "We support the government's initiative to modernize the legal framework for Hong Kong companies. By updating the Companies Ordinance, Hong Kong reaffirms its commitment to remain a globally competitive business jurisdiction and to enhancing business facilitation in the region. Our view of the proposed Companies Bill is that it will improve the transparency and accountability of Hong Kong companies and will also help small companies save on business and compliance costs."

The second phase of public consultation deals with business facilitation such as enforcing simplified accounting requirements for private companies and small guarantee companies, streamlining financial assistance provisions, introducing a solvency test for the reduction of share capital, allowing electronic communication between a company and its members, enabling scrip-less holding and trading of shares and debentures, etc. Furthermore, the Companies Bill and Business Registration Bill also include provisions that will enable electronic incorporation of Hong Kong companies and expedite the company name approval process. The proposed amendments will facilitate the 'Integrated Companies Registry Information System' - a one-stop service for company incorporation and business registration.

Under the present system, subsequent to successful incorporation with the Companies Registry, a company must register itself with the Inland Revenue Department and obtain a Business Registration Certificate. However under the proposed 'Integrated Companies Registry Information System', an application for Hong Kong company registration automatically includes an application for business registration with the tax department. The Companies Registry will issue the Incorporation Certificate and Business Registration Certificate to successful applicants at the same time. According to Ms. Low, "At present, it takes around 4-7 working days to incorporate a company in Hong Kong. With the new legislation in place, the Hong Kong company incorporation process can be completed within one working day, which is the current norm for its main competitor Singapore. The e-system will help businesses save on time, cost and resources. Hong Kong's technology drive and company law reform will improve business processes and enhance Hong Kong's attractiveness as a regional business hub."

About GuideMeHongKong.com

GuideMeHongKong.com is a Hong Kong focused business portal that provides Hong Kong company incorporation, taxation, and immigration related information for organizations and individuals worldwide. For more information, refer to http://www.guidemehongkong.com site.


CONTACT DETAILS
Andrew Chen, GuideMeHongKong.com, +65-6222-7445, contact@guidemehongkong.com

KEYWORDS
ECONOMY, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES

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