Open Meeting with DB2015 Contributors Wednesday January 7, 2015 Permanent Committee for Streamlining Business Environment in Kuwait (PCK) 1
• Motivating reforms through country benchmarking. • Informing the design of reforms. • Enriching international initiatives on development effectiveness. • Informing theory. 2
• Simplify and deregulate in competitive markets. • Focus on enhancing rights. • Expand the use of technology. • Reduce court involvement in business matters. • Make reform a continuous process. In the regulation of business activity, two principles Apply: • First, regulate only when private ordering or litigation are not sufficient to induce good conduct. • Second, regulate only if there is capacity to enforce. 3
• A reflection (proxy) of important institutional features that matter for economic growth & poverty reduction. • A new method to characterize details of rules and mechanisms underlying competitive markets. • A mechanism to strengthen service delivery and measurement of actual practices. • A promoter of economic inclusion with input from local experts who deal with practical situations. • A helpful benchmarking tool. • A model of transparency about data and its limitations. • An enabler for progress in research and policy debate. DB is not an “investor attraction” index but aims at measuring key features of rules governing businesses. 4
5
6
• DB ranking is a comprehensive measure of business environment . • Narrow focus on increasing DB ranking results in improvement of the overall business environment . • DB indicators promote deregulation . • DB indicators focus only on laws and do not take into account practice. • DB methodology and historical data have not been revised over the years. 7
economies topics economies topics 133 5 189 10+ • DB2004 • DB2015 8
Most improved Between June 2013 and June 2014: economies • 123 economies out of 189 recorded real improvements in local regulatory framework (65%). • 230 business reforms were documented. – 145 reforms aimed at reducing the complexity and cost of complying with business regulation (63%). – 85 reforms aimed at strengthening legal institutions (37%). 9
DB 2015: Done DB2016: Planned • Revision of the calculation • Broadening the scope of of the Ease of Doing indicator sets to expand the Business ranking. regulatory quality: • Adding a second city in 11 1. Dealing with large economies. construction permits. • Broadening the scope of 2. Getting electricity. indicator sets for : 3. Registering property. 1. Getting credit. 4. Paying taxes. 2. Protecting minority 5. Enforcing contracts. investors(renamed). 3. Resolving insolvency. 10
• The distance to frontier score captures the gap between an economy’s performance and a measure of best practice across the entire 10 DB topics. • A higher score indicates a more efficient business environment and stronger legal institutions. For indices, the frontier is set at the best theoretical score even if no economy attains it. Example: the strength of legal rights index (which ranges from 0 to 12) is set in this case at 12. 11
12
What was added to Resolving insolvency Indicator set Changes • New: the strength of • A new indicator measures good practices in accordance with the insolvency framework index WBG’s Principles for Effective Insolvency and creditor/Debtor Regimes and the United Nations Commission on International Trade Law’s (UNCITRAL) Legislative Guide on Insolvency Law. 13
14
15
16
17
How? Who ? Why? 18
• There are more than 10,000 contributors. • The contributors are from law Kuwait Contributors in DB2015: 39 firms, notaries, consulting firms, freight-forwarders, & others, that are familiar with the whole process covered by regulations for DB in the country. 19
• Global Supporters • Regional Supporters Others: • Kauffman Foundation • USAID 20
21
22
DB website: http://www.doingbusiness.org/data/exploreeconomies/kuwait#starting-a-business 23
24
25
26
27
28
29
30
31
32
Total: 5+2 = 7 33
34
35
Total number of attached official documents to the report: 10 36
II. KDIPA Explanation/Response to Comments : Staring a Business: Comment from government DB Team response KDIPA Explanation The passage of Law No.111 for According to input from This positive reform is available 2013 for commercial licensing incorporation lawyers, the since October 20, 2013 but till permits has entailed to reduce majority of companies do not to date official sources at MoCI processing time for permits yet obtain their business indicated that there was no and facilitate business by license online using the new e- request applications received allowing to issue within 3 days services. Furthermore, in line for issuing a temporary license the impact is currently shorter with the estimates provided, which if received will take only number of procedures for please note that the time 3 days. starting a limited liability recorded to obtain a company (according to case commercial license is 2 days scenario in DB methodology) for the case-study company down from 12 procedures under consideration. recorded in DB2014 to only 7 procedures and shorter duration from 32 days to 21 37 days.
II. KDIPA Explanation/Response to Comments : Staring a Business: Comment from government DB Team response KDIPA Explanation The number of civil ID Incorporation experts Official sources is granted immediately reported that a visit to reiterated that there is for the company at PACI is still necessary no need to physically MoCI through an e-link to complete this visit PACI . A screen shot with the Public registration as the at MoCI for issuing Authority for Civil electronic service is directly civil ID is Information (PACI) as not yet fully functional attached that proves no of November 10, 2013. as of June 1, 2014. need to physically visit PACI. Attached pdf document no. 5 38
39
II. KDIPA Explanation/Response to Comments : Staring a Business: Comment from government DB Team response KDIPA Explanation The issue of rise in limited Private sector practitioners Despite apparent rise of liability licensing fees from have confirmed the fees we maintain our stance KD 30 to KD 150 comes increase in the commercial that if the cost is after 27 years of the last license fee based on considered as % of Kuwait increase (1986), it entailed Resolution No. 411/2013, GDP per capita and given longer duration (for published in the Official the fact it is over 4 years example 4 years instead of Gazette on October 20, validity instead of previous 2), less fees for renewals,& 2013. This change will be 2 years then it has no is in line with other regional reflected in the upcoming impact. GCC rates, it intends to Doing Business 2015 report. hinder manipulation of (as Χ reform) commercial licensing for establishing imaginary companies 40
II. KDIPA Explanation/Response to Comments : Staring a Business: Comment from government DB Team response KDIPA Explanation According to MoJ, the limited According to input from MoJ documentation is already liability companies, General incorporation lawyers, the saving time by being done in Partnership companies, and time to obtain a commercial one day ( 2 hours) for limited Limited Partnership companies, license has not changed as of liability companies. will be able to process June 1, 2014. Please refer to procedures within 2 hours from attached pdf official submission, without violating document no. 4 any articles in decree law No. 25/2012 as amended by Law No. 97/2013. While, the public shareholding companies, the holding companies, and the closed shareholding will take a maximum of 2 days to complete the same procedures. 41
42
II. KDIPA Explanation/Response to Comments : Dealing with Construction Permits: DB Team Response: The team consulted with construction experts who noted that obtaining the electricity approval still takes 7 days on average. This time includes the waiting time after the electricity inspection is conducted and before the Ministry of Electricity and Water begins the approval process. As for the cost, construction experts noted there is still a fee of KD 4,000 for this approval. The team would appreciate receiving an official fee schedule where it indicates that there is no charge for the electricity approval. (Attached document No. 1) 43
Recommend
More recommend
