Entrepreneurs should have the opportunity to turn their ideas into a business and often a first step is to formally register a company. Yet in many countries the bureaucratic obstacles and high costs imposed by inefficient company registries deter people with good business ideas from embarking on the path of formal entrepreneurship. As the first interface between the regulator and a potential new entrepreneur, company registries hold the key to the formal economy, providing businesses with a legal identity and empowering them to participate fully and within the framework of the law. What should company registries do to encourage businesses to formalize? What are the best practices to follow?
Overview
- Company registries empower businesses to operate in the formal economy—and to reap the benefits that come with formalization.
- Online platforms for company incorporation make the process faster and cheaper.
- Electronic registration and online services substantially reduce the opportunities for bribery and other forms of corruption.
- Rwanda has made promoting private sector development a top priority on its reform agenda—and making it easier to register a business is part of that.
- Chile’s new online business registry experienced rapid take-up, accounting for nearly half of new registrations of limited liability companies in just 7 weeks.
- The United Kingdom’s corporate registry actively promotes the use of electronic services and data transparency.
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