New Licensing law Drafted


The Ministry of Trade presented a draft amendment of the Commercial Registration and Business Licensing Proclamation for approval to the House of People’s Representatives.
According to the draft amendment, any commercial activity under a license from any government body can register within the budget year following the expiry of the period of registration or renewal.
The previous proclamation states that business should renew their license within four months of the new budget year. The amendment for the proclamation, which came into effect in 2011, is drafted mainly to create a favourable business environment, where businesses could thrive by providing significant inputs. The new proclamation minimizes the requirement for title deed of business premises or the authenticated contract of lease to renew licenses.  Under the new proclamation, written verification of its address from local administration is enough to renew business licenses, reducing bureaucracy for businesses renewing their licenses. 
The draft bill also dictates that export or import licenses shall not be valid unless the business category (type) is clearly indicated when licences are issued by the Ministry.
The amendment is aimed at easing renewal of business licensing as this is one of the defining elements of a conducive business environment according, to the Ministry of Trade. 
The house referred the amendment for further deliberation to the Trade Standing Committee.