02 Business Registration and Licensing Reform
Transcription
02 Business Registration and Licensing Reform
Business Registration and Licensing Reform LESOTHO Chaba Mokuku Project Manager Lesotho Private Sector Competitiveness and Economic Diversification Project Email: cmokuku@psc.org.ls Key Investment Climate Reforms in Lesotho • Company Registration Reform (Complete). • One Stop Business Facilitate Centre (Complete – improvements in progress) • Business Licensing Reform (In progress). • Construction Permit Reform (In progress) • Access to Finance (In progress). • Insolvency (In progress). • Customs modernisation (In progress). • Tax reform (In progress). • Financial Sector Reform (In progress). 3/17/2015 2 Business Start Up - Related Reforms • Company registration reform 2007-2014. • One Stop Business Facilitation Centre 2007-present. • Business licensing reform 2014 – 2019. Registering property Getting credit Protecting Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency 88 (-8) 43 (-6) 110 (+1) 1 (0) 28 (+1) 149 108 (130 in 2010) 156 61 145 6 29 93 161 25 32 55 2 117 103 117 66 158 140 11 41 51 93 173 97 129 24 98 61 151 61 52 61 17 36 106 106 87 17 110 3 28 67 109 85 19 74 5 13 157 147 136 100 127 1 17 61 115 53 46 173 1 44 49 120 81 36 80 19 43 South Africa 128 (0) Namibia 74 (-8) Lesotho Mauritius Starting a Business Dealing with construction permits Getting Electricity Singapore Overall Rank Botswana TOPIC Swaziland Doing Business Ranking for Lesotho - 2015 Current Licensing in Lesotho • The licensing regime covers all licenses and authorizations in different Government agencies in addition to trade and industrial Licenses issued by Ministry of Trade and Industry. • High cost and regulatory burden with limited justifiable benefits. • Universal licensing regime. • Absence of clearly stipulated goals and rational for licensing. • Some common justification for licenses include the following: • • • • Fiscal solvency Revenue collection Zoning enforcement Information collection Legal Framework – Initial Coverage Four (4) licensing categories will be established for activities that are currently regulated through licensing in Lesotho in accordance with the Industrial Licensing Act, Trading Enterprises Act, Agricultural Marketing Act, Betting Control Act, Accommodation, Catering and Tourism Enterprises Act, and Liquor Licensing Act. Licensing Categories • Category 1 includes activities that will be fully deregulated; • Category 2 includes activities where licensing will be replaced with premises certification. Operating businesses who lease certified premises will also be fully deregulation; • Category 3 includes activities where licensing is replaced with premises certification + declaration + inspections; • Category 4 includes activities that will still be licensed. Examples of Categories EXAMPLE Category 1 deregulation Category 2 Category 3 Category 4 Premises Declaration, Permanent Certification combination licensing Comments FLORIST ARRANGEMENTS No risks ARTS AND CRAFTS PRODUCTION (JEWELLERY AND POTTERY) These can be manufactured at home, and do not pose much risk. For larger scale production premises certification is adequate. FURNITURE AND CAPENRTRY Process has to conform to minimum standards to avoid risks. Prior approval will not address these standards. CANNERY( FRUITS AND VEGETABLES) Food production – sanitary risks, equipment risk– especially for larger scale production. Small scale can be home based and deregulated. Compensation for Possible Revenue Losses • Nominal increase in license fees for activities that will still be licensed, especially for large companies. • Charging higher fees for licensing socially undesirable activities (trade in alcohol, tobacco, gambling etc.). • Keep annual license renewals fees for socially undesirable activities. • Charge once-off fee for issuance premises certificate (category 2). • Charging once-off fee for declarations when a business operation commences (Category 3). • Introduction of the pre-emptive tax for various categories of small businesses (Category 1). E-Licensing Portal Characteristics and functionalities of the system will include: 1. Integration with business registration portal and business database. 2. Informational: All business activities; licensing requirements; laws and regulations; forms etc. 3. Transactional: Declaration using Unique Identifying Number (UIN); online applications through UIN; Automatic completion of parts of application forms with info from business registration database; and scheduling of interviews, inspections, hearings etc. 4. Functionality of e-licensing should allow verification of a license by a Government Agency or a third party. Conclusion - Licensing • Activities that pose moderate risks to safety, health and environment should be regulated with clear conduct rules and inspections rather than licenses. • A limited number of currently licensed activities will remain to be licensed through a system of permanent licenses. • “Socially Undesirable” activities such as trade in liquor and gambling will be licensed by annually renewable and expensive licenses. • It is envisioned that overall decrease of licensing coverage will free Government resources for more efficient and effective regulation of licensed activities. • Establishment of clear licensing conditions together with risk based approach to licensing and inspections will further improve regulatory regime in Lesotho. Lessons - Critical Requirements for Investment Climate Reform • Political will. • Political stability. • Sound Institutional Framework and Coordination Mechanism. • Adequate capacity building within the Public Sector to match the reforms. • Change Management Strategy. • Effective Performance Management System. • Data management capacity and robust M&E framework. 3/17/2015 12