European CommissionEuropean Commission

TACIS programmeTACIS programme

European Business European Business

Registration Survey 2005Registration Survey 2005

The Ukrainian projectThe Ukrainian project

• Law

• Organisation

• Systems

• European Integration

• EBR

Support for the State Registration of Legal

Entities and Sole Traders in Ukraine

Background to the surveyBackground to the survey

• Interest from Ukraine

• Support from the European Commission

• Support from ECRF

• Support from OECD

• World Bank activity on business registration

Conducting the surveyConducting the survey

Other sources of informationOther sources of information

• The Guide

• Doing Business in 2005

Structure of the questionnaireStructure of the questionnaire

• Part 1 – General – overall organisation

and procedures

• Part 2 – Statistics

• Part 3 - Detail

Geographical coverageGeographical coverage

What did we learn?What did we learn?

- but first …

Why is the World Bank concerned Why is the World Bank concerned about business registration?about business registration?

Time required to start a companyTime required to start a company

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

days

European average

Pre-registration Registration Post-registration

0 20 40 60 80 100 120

AlbaniaAustriaBelarusBelgium

Bosnia and HerzegovinaBulgariaCroatia

Czech RepublicDenmark

EstoniaFinlandFrance

GermanyGreece

HungaryIreland

ItalyLatvia

LithuaniaMacedonia, FYR

MoldovaNetherlands

Norw ayPoland

PortugalRomania

Russian FederationSerbia and Montenegro

Slovak RepublicSlovenia

SpainSw eden

Sw itzerlandTurkeyUkraine

United Kingdom

Pre-registration

Registration

Post-registration

6 ways to improve business 6 ways to improve business registrationregistration

• Create single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for businessCreate single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

Updating other databasesUpdating other databases

• Statistics authority

• Tax authority

• Pension Fund

• Social Security

• Employment

“All state and municipal agencies and judicial institutions shall use the commercial register information via Internet; they shall not request the submission of the same data from persons”

Denmark, Commercial Code, Article 541

6 ways to improve business registration

• Create single access points for businessCreate single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for businessCreate single access points for business• Get out of the courtsGet out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

Organisation of Business Registration in EuropeOrganisation of Business Registration in Europe

Organisation of Business Registration in EuropeOrganisation of Business Registration in Europe

CourtsCourts

Organisation of Business Registration in EuropeOrganisation of Business Registration in Europe

CourtsCourts

Chambers of CommerceChambers of Commerce

Organisation of Business Registration in EuropeOrganisation of Business Registration in Europe

CourtsCourts

Chambers of CommerceChambers of Commerce

Administrative officesAdministrative offices

Organisation of Business Registration in EuropeOrganisation of Business Registration in Europe

CourtsCourts

Chambers of CommerceChambers of Commerce

Administrative officesAdministrative offices

Analysis by type of organisationAnalysis by type of organisation

Courts (10)

Chambers of Commerce (2)

Administrativeoff ices (21)

Analysis by number of officesAnalysis by number of offices

Courts (423)

Administrativeoff ices (102)

Chambers ofCommerce (124)

Analysis by number of companiesAnalysis by number of companies

Administrativeoff ices (4.6m)

Courts (2.9m)

Chambers ofCommerce (1.7m)

Companies compared to populationCompanies compared to population

0

1

2

3

4

5

6

7

8

9

Under 20 21-30 31-40 41-50 51-100 Over 100

Companies per thousand population

CyprusGibraltarIsle of ManLiechtensteinLuxembourg

IcelandMalta

EstoniaHungaryLatviaRomaniaSpain

FinlandIrelandNetherlandsNorwaySloveniaSwedenU.K.

Czech RepublicDenmarkFrance

AustriaBulgariaGermanyItalyLithuaniaMoldovaMontenegroSerbia

6 ways to improve business registration

• Create single access points for businessCreate single access points for business• Get out of the courtsGet out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for business• Get out of the courts• Make registration electronicMake registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

Input - electronicInput - electronic

• Word etc documents

• Via web site

• Via proprietary software

• Via SMS

• Via e-mail

• Scanned documents

• Via EDI

Information processes and structureInformation processes and structure

• Single register

• Number used by all offices

• Electronic format

• Single access point

• Scanned documents

• Electronic signature

• Open standards

• XML within register

• XML externally

Output and interactiveOutput and interactive

Information on web – free

Information on web – paid

Ordering on web - credit card

Annual info by e-mail

Annual info uploaded via web

Annual info via web forms

Domain names

6 ways to improve business registration

• Create single access points for business• Get out of the courts• Make registration electronicMake registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licencesIntroduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business Impose a “silence is consent” rule in business

registrationregistration• Standardise paperwork

- World Bank, ‘Doing Business in 2005’

6 ways to improve business registration

• Create single access points for business• Get out of the courts• Make registration electronic• Introduce temporary business licences• Impose a “silence is consent” rule in business

registration• Standardise paperworkStandardise paperwork

- World Bank, ‘Doing Business in 2005’

Input - paperInput - paper

• Forms completed by hand

• Forms completed by typewriter

• Free-format documents

• Handwritten documents

• Certified documents

Some questionsSome questions

• Why so many free-form documents?

• Are restrictive objects relevant today?

• What functions are notaries serving?

What next?What next?

• Collect remaining information – including any corrections or updated

information

• Prepare final report on survey– Issue to all participants

• Maintain the information?

QUESTIONSQUESTIONS

DAVID WALKEDAVID WALKE

david@registryadvisers.com