Getting Down to Business : Strengthening Economies through Business Registration Reforms
Business registration remains a complicated and costly process in many countries, hampering entrepreneurial activity and the creation of formal employment. In Bolivia and Uganda, for example, entrepreneurs need to complete 15 procedures to incorpor...
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| Language: | English en_US |
| Published: |
International Finance Corporation, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/12/18882382/getting-down-business-strengthening-economies-through-business-registration-reforms http://hdl.handle.net/10986/18689 |
| Summary: | Business registration remains a
complicated and costly process in many countries, hampering
entrepreneurial activity and the creation of formal
employment. In Bolivia and Uganda, for example,
entrepreneurs need to complete 15 procedures to incorporate
a limited liability company. In the Gambia and Djibouti, the
cost of incorporation is about 180 percent of per capita
income, and the average time needed to start up a business
in São Paulo, Brazil, is more than 100 days. Rampant
bureaucracy and systemic inefficiencies should not pose
obstacles for business development and growth. Several
research studies find that simpler business start-up
processes are associated with higher rates of formal
entrepreneurship, lesser development of shadow economies,
increased tax revenues, and decreased corruption. It is
clear that easy and straightforward business incorporation
practices have multiple spillover benefits for the entire economy. |
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