In the past starting a business required 11 steps over 32 days but now things have changed
The past trade registration and licensing system involved 11 steps which included transfers from multiple government offices and took a considerable time of 32 days for completion.
In addition the system required steps that are nonessential to the registration process thereby delayed registration completion time.
To improve this, the Ministry of Trade and Industry has introduced several reforms that reduce the number of processes required to get a business license as well as the time required to register your business.
Key reforms that make starting new businesses very easy
With the implementation of these reforms there has been a significant improvement in service delivery. Some of these reforms are;
- Reducing the time needed to get a license from an average of 32 days to 5 days
- Abolishing the need for publication of company and trade name, reducing the time needed for publication from 15 days to Zero.
- Authorization of Article of Association (AoA) and Memorandum of Understanding (MOU) at the Ministry of Trade and Industry from 1 day to 3 hours.
- Commercial registration, business licensing and trade name registration can be requested at simultaneously reducing the steps from 11 to 6.
- Reducing the time needed to obtain a cash register from 7 days to 3 days.
- Additional measures have also been taken by signing MOUs with various stakeholders, as well as providing training of trainers in an effort to ensure smooth implementation of the reform.
These reforms were undertaken by:
Merging of several procedures that required transfer of multiple government institutions now being provided at one institution:
- Single application for commercial registration, business license and trade name.
- Documents Authentication And Registration Agency (DARA) has delegated the authentication of Article of Association (AoA) and Memorandum of Understanding (MOU) to Ministry of Trade and Industry as of December 2019.
Eliminating several burdensome requirements:
- Eliminating the need for newspaper publication for trade name thereby scraping a 15 day waiting period.
- Renting office space and bringing lease agreement no more required for getting a business license
Introducing an Online Trade Registration and Licensing System (OTRLS) that allows users to obtain key services in getting a business license online.