European Commission TACIS programme

European Business Registration Survey 2005

The Ukrainian project Law Organisation Systems European Integration EBR Support for the State Registration of Legal Entities and Sole Traders in Ukraine

Background 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 survey

Other sources of information The Guide Doing Business in 2005

Structure of the questionnaire Part 1 – General – overall organisation and procedures Part 2 – Statistics Part 3 - Detail

Geographical coverage

What did we learn? - but first …

Why is the World Bank concerned about business registration?

Time required to start a company European average Pre- registration Registration Post-registration

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 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 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 Europe

Courts Courts

Organisation of Business Registration in Europe Courts Courts Chambers of Commerce Chambers of Commerce

Organisation of Business Registration in Europe Courts Courts Chambers of Commerce Chambers of Commerce Administrative offices Administrative offices

Organisation of Business Registration in Europe Courts Courts Chambers of Commerce Chambers of Commerce Administrative offices Administrative offices

Analysis by type of organisation

Analysis by number of offices

Analysis by number of companies

Companies compared to population Cyprus Gibraltar Isle of Man Liechtenstein Luxembourg Iceland Malta Estonia Hungary Latvia Romania Spain Finland Ireland Netherlands Norway Slovenia Sweden U.K. Czech Republic Denmark France Austria Bulgaria Germany Italy Lithuania Moldova Montenegro Serbia

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 - electronic Word etc documents Via web site Via proprietary software Via SMS Via Scanned documents Via EDI

Information 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 interactive Information on web – free Information on web – paid Ordering on web - credit card Annual info by 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 registrationImpose 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 registration Standardise paperworkStandardise paperwork - World Bank, ‘Doing Business in 2005’

Input - paper Forms completed by hand Forms completed by typewriter Free-format documents Handwritten documents Certified documents

Some questions Why so many free-form documents? Are restrictive objects relevant today? What functions are notaries serving?

What next? Collect remaining information –including any corrections or updated information Prepare final report on survey –Issue to all participants Maintain the information?

QUESTIONS

DAVID WALKE