OFFICE OF THE REGISTRAR GENERAL

CORPORATE REGISTRY FORUM

MAURITIUS –2010

Presented by: Mr. Kabera ErasteRegistrar General

BUSINESS

REGISTRATION

REFORM:

THE RWANDA

EXPERIENCE

OUTLINEBackground/ Analysis of the situationReforms to be conductedImplementation of the reformsAchievement and impactsWay forward

Doing Business Ranking places Rwanda No. 11 in Starting a business:Indicators Rwanda Sub- Saharan

AfricaOECD Average

Procedures (number)

2 9.4 5.7

Time (days) 3 45.6 13.0

Cost (% in income per capita)

10.1 99.7 4.7

Minimum Capital (% of income per capita)

0.0 144.7 15.5

Background/ Analysis of the former situation:

The Office of the Registrar General (ORG) was formerly known as Rwanda Commercial Registration of Services Agency. (law No. 112 of 2007)

The ORG was established as a public register institution in line with international practices. (merged with RDB its now a department known as ORG/RDB)

Initially business registration in Rwanda was done in courts scattered around the country. Rwanda did not have a centralized office in charge of this task. (year?)

LEGAL AND INSTITUTIONAL REFORMS AIMED AT IMPROVING BUSINESS REGISTRATION IN RWANDA:

LEGAL AND INSTITUTIONAL REFORMS AIMED AT IMPROVING BUSINESS REGISTRATION IN RWANDA:

Legal reform has been done parallel to institutional reform

Institutional reform• The registration mandates were moved out of court and

ministries then delegated to ORG now incorporated into RDB along with other institutions servicing and promoting commercial activities. (single slide diagram to explain)

Legal reform- Company Law has been enacted N°07/2009 of 27/04/2009

LEGAL AND INSTITUTIONAL REFORMS AIMED AT IMPROVING BUSINESS REGISTRATION IN RWANDA:

Legal reform

Company Law has been enacted N°07/2009 of 27/04/2009

LEGAL AND INSTITUTIONAL REFORMS AIMED AT IMPROVING BUSINESS REGISTRATION IN RWANDA:

Prior to reform, the process was cumbersome with

numerous procedures, multiple interactions with several

agencies and thus high administrative cost to businesses

The option for reform was a complete overhaul of the

legal and institutional framework and cost adjustments

Past procedures Reforms Present practice

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

9

1. Check the uniqueness of the company name and pick up a company registration form (4 days) 2. Notarize the company deeds and articles of association (2 days) 3. Pay tax on capital and registration fee to Rwanda Revenue Authority 4. Registration with the Commercial Registry 5. Pay the publication fee at the Rwanda Revenue Authority and obtain receipt 6. Apply for publication of company statutes in the Official Journal with the Prime Minister’s Office 7. Registration of the Company for taxes with the Rwanda Revenue Authority (Department des Imports) and get a fiscal number (TIN & VAT) 8. Registration with the Social Security Institute

Process: 8 procedures, taking 14 days

1. Centralized all business registration

services at a one stop centre in Rwanda

Development Board also including a

payment point. These include:

 

Checking the uniqueness of the company

name and pick up a company registration

form, Registration of company with RRA

and Social Security Fund, payment for

service and picking of certificate of

incorporation.

 

2. The new company law abolished the

requirements to notarize articles and to

publish in the Official Journal with the

Prime Minister’s Office.

3. A flat fee of RWF 25,000 despite the

nature of business was introduced replacing

varying fees based on business activity.

1. All business registration services at

a one stop centre in RDB: Single

application form, registration with

RRA and CSR and payment of

registration fee.

2. Requirement to notarize and publish

in the Official Gazette abolished

under new company law.

Process: 2 proceduresTaking 3 days

Starting a company (Old Way)

Impact of reforms on registering a business in Rwanda:Nature of procedure (2006)

Duration (days) old system

Duration (days) reformed system

Cost in USD old system

Cost in USD reformed system

Check uniqueness of company name & pick company registration form

4 1 0 0

Notarize the company’s deeds and articles of association

2 0 167.29 0

Deposit the legally required initial capital in a bank and obtain deposit evidence

1 1 0 0

Registration with the commercial registry

2 2 0 77.31

Apply for publication of company statutes in the Official Journal at the Prime Ministers’ Office.

1 0 222.79 0

Pay publication fee at the bank and obtain a receipt

1 0 0 0

Registration of the Company for Taxes &b obtain a fiscal number TIN

1 0 9 0

Impact of reforms on registering a business in Rwanda:

Nature of procedure (2006)

Duration (days) old system

Duration (days) reformed system

Cost in USD old system

Cost in USD reformed system

Registration with social security Institute

2 0 4 0

Make a company seal

2 0 30 0

Totals 16 4 $433.08 77.31

Way forwardCompany contracted to set up on-line business

registry, collateral registry and intellectual property early this year

This to be carried out simultaneously with further improvements in paper based system

Emphasis is to ensure that businesses don’t only start but stay

We aim to have a reliable registry