-
Keeping track of each entrepreneur's identification-related
information can help reduce the number of “ghost businesses” and
prevent people with police and criminal records from doing
business in sectors that affect public order and security. This
can be achieved through strong and regular coordination among
the business registration, tax and police agencies. It should be
noted that as business startup procedures become easier,
post-registration monitoring will be more important. It is
critical to improve self-discipline and legal compliance among
citizens and to execute strong punishment on any individuals who
set up businesses for rent-seeking purposes.
Mr. Nguyen Thai Dung, Department of Administrative Management
for
Public Order, General Department of Public Security
-
 To
spur local economic growth and increase tax revenues, it is
critical to encourage more businesses to invest in this
province. Simplifying business-related administrative
procedures, especially the initial steps of business startup, is
one way to address this issue. The argument that strict business
start-up regulations help the state detect “ghost businesses” is
simply incorrect. People who set up such businesses for
rent-seeking purposes will complete those complicated procedures
at any price. However, most entrepreneurs want to save as much
time and money as possible so that they can focus on business
opportunities. More complicated or “strict” start-up procedures
actually create less favorable conditions for people who want to
set up legitimate businesses.
In Bac Ninh province, simplified business establishment
procedures will i) encourage thousands of households in trade
villages to formalize their businesses and grow them and ii)
help the province attract more investors. This reform will also
strengthen Bac Ninh's competitiveness and improve its ranking in
competitive sub-indices by reducing entry costs (time and
informal charges), increasing transparency and access to
regulatory information, and reflecting the commitment and
initiative of provincial leaders.
Mr. Nguyen Phuong Bac, Deputy Director,
Department of Planning and Investment, Bac Ninh province
-
 The
internationalization and globalization of business activities
through increased trade and cross border transactions have also
increased the need for a well-functioning business registry that
allows business partners to confirm the official legal status of
their enterprises and counterparts and thus feel more
comfortable with those they deal with. Efficient services that
verify the legal status of businesses are a prerequisite for any
SME seeking to expand its activity beyond its manager's
immediate social circle. Cumbersome and costly business
registration procedures and services also prevent SMEs from
taking advantage of opportunities such as wider markets for
exports. Access to credit, insurance, public services and
incentives are normally reserved for registered businesses, and
lowering the cost of verifying the legal status and
circumstances of enterprises ultimately lowers the cost of doing
business.
Mr. John Schjelderup Olaisen, Director,
Norway Registers Development AS
-
More simplified procedures will benefit both government agencies
and the business community. More enterprises will be encouraged
to move from the informal to the formal sector, enabling local
governments to earn more tax revenues and creating more jobs
with higher salaries in the formal sector. Moreover,
transparency of business procedures will be enhanced, reducing
corruption. The business community will also be happier with
more simplified procedures because the business entry process
will become less complicated, costly and time-consuming.
Mr. Vu Quang Thinh, Partner, Management Consulting Group (MCG),
Consultant to IFC-MPDF Provincial Simplification Project
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