Before, you had to inspect numerous microfilms to search for information of a company; now, you can search it online. Before, you had to queue and submit documents in person to form a company and it took four days to complete the incorporation process. Now, a few clicks on a website will do and it just takes one day to set up a company! Sounds amazing, aha? Sure you can imagine how easy it is to set up a company now, but what you can't imagine is the hard work and efforts the Companies Registry (the Registry) has put in to develop this new electronic system. Let's listen to Miss Wendy Ma, Deputy Registry Manager, about how to make this daunting task come to reality.
Thinking out of the box
Yes, no more paperwork. But how did the Registry turn a paper-based application into a paper-free online system? Is it simply a conversion of manual procedures to electronic procedures? Of course not, according to Miss Wendy Ma, there were many hurdles to resolve, one of which was how to let applicants sign documents online.
To ensure that the system design met customers' needs, Miss Ma said the Registry had conducted annual surveys to collect customers' views on its development plan. Many respondents indicated that they did not acquire any e-Certificates issued by recognised Certification Authority (including Hong Kong Post e-Cert (Personal) Certificates). So, if the Registry solely accepted e-Certificates as a means for e-Signature, it was afraid that the e-Registry services would not be widely used. Racking their brains, the Registry finally came up with a solution – allowing customers to sign documents either by using digital certificates or their passwords registered with the e-Registry. Simple and easy to use!
One problem solved, but more to come. As multiple signatures are required for some application documents for company incorporation, it implied that all required signatories would have to register an account with the e-Registry. This would surely turn customers away. In order to reduce burdensome registration procedures, the Registry had streamlined the company incorporation process. For example, only one founder member is required to sign the Incorporation Form, and the Memorandum and Articles of Association (M&A) delivered to the Registry needs not be a signed or certified copy.
Rise to the challenge
To implement the password-as-signature authentication and other streamlined procedures, legislative changes to the Companies Ordinance were needed – another very challenging task. Miss Ma said the Registry had to improve the system design to address legislators' concerns, for example, to request for certified true copies of applicants' ID cards or passports to prove their identities upon their user registration at the e-Registry. Moreover, to facilitate the e-Incorporation service, the Registrar of Companies (the Registrar) is given the power to issue electronic Certificates of Incorporation (CI) which have the same legal effect as the CI issued in paper form for paper applications.
Streamlining the company name registration system was also a key factor to the introduction of new electronic service. In the past, the Registry's staff had to spend days to check the registrability of an intended company name. The Registry will now allow a company to be set up first if the company name meets the basic criteria. If it is later found that the company name is not acceptable, with the legislative amendments, the Registrar is empowered to direct the company to change its company name after incorporation.
Can do spirit
The journey of introducing legislative amendments, streamlining procedures and developing computer system was "painful". But Miss Ma said civil servants were committed to serving Hong Kong people, so the Registry had to find ways to come up with solutions. Here, Miss Ma gave us a few tips on how to make things more manageable in the journey of developing an e-Service portal:
- obtain top management's support and set up a task force before commencing the project;
- consult the industry, professional bodies and customers at the very beginning and tailor the system to meet the needs of various stakeholders;
- work closely with the IT contractor during the development process and draw up a realistic time table;
- increase public awareness of the new services as early as possible; and
- implement trial runs with major customers, and provide sufficient assistance to customers once the new service is launched.
Overwhelming encouraging feedback
All their hard work pays off. Since the launch of the e-Registry, feedback has been very positive. Customers find the new system very easy to use. For straight-forward applications, they can incorporate their companies within 30 minutes and start doing business right away. Model forms of M&As for private companies and multiple e-Payment methods, in particular the deduction from deposit accounts of registered users, are well-received. Many customers find the new system both timesaving and efficient. According to the World Bank's Doing Business 2012 Report, Hong Kong's international ranking in starting a business has jumped from 6th to 5th.
Innovative and positive thinking make change happens
From the Registry's experience, automation is not just copying manual procedures to electronic procedures. It needs innovative thinking, as well as the drivers of process re-engineering and legislative amendments. Of course, the critical success factor is what Miss Ma concluded during her interview "If you believe you can, you can."
Ms Ada Chung, the Registrar of Companies (centre), accompanied by Miss Wendy Ma, Deputy Registry Manager (right), received the Silver Prize of the "Departmental Service Enhancement Award at the Prize Presentation Ceremony of the "Civil Service Outstanding Service Award Scheme 2011". The award recognises the Companies Registry's continuous efforts in enhancing their service standard.
Feature article provided by the Economic Analysis and Business Facilitation Unit of the Financial Secretary's Office
About the Author
The Economic Analysis and Business Facilitation Unit is a unit under the Financial Secretary's Office responsible for inter alia, taking forward business facilitation initiatives aiming to improve the business environment of Hong Kong.