The Companies Registry recorded a surplus of $40.4 million for the financial year ending March 31.

The figures were highlighted in its annual report for 2002-03, tabled at the Legislative Council today.

Registrar of Companies Gordon Jones said the year saw a 38.4% increase in the number of company incorporations.

There were also increases of 6.9% and 5% in the number of documents filed and applications for change of company names respectively. However, there was a 9.5% drop in charges registration and a 2.8% fall in microfilm searches.

The registry achieved cumulative savings of $19.2 million, or 9.6% of its recurrent expenditure.

The registry has been implementing its Strategic Change Plan to bring about full electronic delivery of services. An integral part of the plan is the Integrated Companies Registry Information System, which will be developed in two phases.

"Phase I, estimated to be completed by early 2004, will include the replacement of the existing computer systems, document imaging, conversion of microfilm records and online searches on current data and digitised images of registered company documents kept in the registry's database," Mr Jones said.

"Phase II, estimated to be completed by early 2005, will include the implementation of online document registration and incorporation."

The report of the Standing Committee on Company Law Reform, published in February 2000, contains 62 recommendations including a mix of amendments to specific sections of the Companies Ordinance; topics which required further research and study; and major structural proposals such as rewriting and restructuring the ordinance.

Virtually all the proposals regarding amendments to specific sections of the ordinance have been included in the Companies (Amendment) Ordinance 2003, which was enacted in July.

"Work on topics requiring further research and study has been undertaken in the context of either the committee's Corporate Governance Review or independently by the committee. The results of some of this work are contained in the Companies (Amendment) Bill 2003," Mr Jones said.