Tonga will introduce Electronic Company Registration in September, said Penisimani Latu, the Deputy Registrar of Companies, at the Ministry of Labour Commerce and Industries, today.

Penisimani said that they would trial run the new electronic system next month in preparation for its launching in September. The server and database of registered companies will be stored in New Zealand but the ministry can access it from Tonga.

"The existing manual paper registration system will still be available, but the electronic company registration system will definitely speed up the process," he said.

One of the reasons for introducing the electronic system is that all the old databases were destroyed in the riots of November 16, 2006. He said that the new system is also a simpler, self-enforcing means of ensuring compliance.

The inclusion of the new electronic company registry system is one of the amendments under the First Exposure Draft of Companies (Amendment) Bill 2009 that was publicly debated in the capital in February.

Funded by the Asian Development Bank and co-financed by the Australian Agency for International Development (AusAID), the proposed amendment to the Act is aimed at removing many of the administrative barriers thus lowering the transaction costs for companies operating in Tonga.

Penisimani said that he was in the process of completing the draft amendments to the Tonga Companies Act 1995 to reflect the development and changes of the New Zealand Companies Act 1993, upon which Tonga's Act is based.