Wed. May 12, 06:31h - In the scope of a Memorandum of Understanding celebrated between the Ministry of Justice and the international organization "International Finance Corporation" (part of World Bank Group), with the aim of improving the business environment and consequent improvement of economic growth in Timor-Leste, a program of reforms is currently under implementation for the streamlining and simplification of procedures concerning Business Registration.
This program involves several legislative and administrative measures that revise those procedures, as well as the computation of Business Registry service in Díli (Public Registry Department of Registry and Notary Civil Services National Directorate).
Since the procedure for public consultation in the scope of the referred reform is currently ongoing, citizens, companies and, in general, all the stakeholders interested in the creation of a better business environment in Timor-Leste, are invited to participate in the referred public consultation procedure, by accessing to the Ministry of Justice’s website.
The procedure will be held until the coming 28th of May.
Business Registration Reform
In the framework of a Memorandum of Understanding celebrated between the Ministry of Justice and the international organization "International Finance Corporation" (part of World Bank Group), with the aim to improve business environment and consequent improvement of economic growth in East Timor, it is currently under implementation a program of reforms regarding the streamlining and simplification of procedures concerning business registration, involving several legislative and administrative measures with the aim to revise those procedures, as well as the computerization of business registry in Dili (Public Registry Department of Registry and Notary Civil Services National Directorate).
Under a ongoing procedure of public consultation in the scope of the referred reform, it is submitted to the consideration of citizens, companies and, in general, all the stakeholders interested in the creation of a better business environment in East Timor, the legislative measures mentioned below, with the aim to present suggestions of amendment or reformulation of those measures.
Beyond the referred suggestions, stakeholders are invited to present suggestions or proposals of other legislative measures to be promoted in the scope of the current reform, or just complaints concerning the running of business registry and other civil services connected with it.
All the referred suggestions, proposals and complaints may be submitted by email, to the addressjoao .email@example.com , until the coming 28th May.
It will be ensured an answer, in due time, to all the suggestions, proposals and complaints submitted by stakeholders in the on going procedure of public consultation.
Legislative measures considered in the scope of the business registration reform
1) Creation of a special procedure concerning the formalization and registration of companies, involving the following acts and conditions:
a) The business registration office executes the company's name approval (with exemption of a certificate issuance), the incorporation's formalization and its registration, in a single act executed in the presence of interested parties;
b) The company's incorporation formalization will be executed by using legal standardized articles of association;
c) The formalization in the business registration office cannot be requested if any of the shareholders pay his/her capital share's subscription by means of transfer of immovable property, situation which will continue to require a formalization by means of a public deed;
d) Immediately after the registration, the registry office communicates that fact, electronically, to the ministries interested in the disclosure of data about the company's incorporation registration (including the ones that hold competences for the allocation of a tax identification number, for the company's activity and operating conditions licensing, for granting economic benefits and incentives in the scope of investment operations, for residence authorization or issuance of a work visa procedures, and for inspection of work conditions).
e) This service will be provided in the in the Public Registry Department of the Ministry of Justice, in Dili, and, in the future, it may be extended to registration business offices that may be created in other administrative districts of East Timor.
2) Requirement that the signatures of a company or cooperative's founders on the correspondent Memorandum and Articles of Association, formalized by a private document, are executed before the notary or business registration officer legally empowered, who must certify that fact;
3) Decrease of the level of formalization in the incorporation of high grade cooperatives and 1st grade cooperatives subject to a special regime of formalization by public deed by means of a private document, with the certification, by a notary or business registration officer legally empowered, of the entity founding members' signatures, put on the document before the official authority;
4) Approval of a regime concerning the sole ownership operator and legal persons' name registration;
5) Abolishment or reduction of the requirement of a minimum share capital for the incorporation of some legal types of companies (sociedades por quotas and sociedades anónimas), as well as the maximum share capital for the incorporation of sociedades por quotas;
6) Abolishment or reduction of the requirement, prescribed in the general regime applicable to cooperatives, of a minimum initial share capital for the incorporation of those entities;
7) Abolishment of business registration' s acts publication, with declaratory effects, in the official gazette and the local newspapers and its replacement by a mere monthly publication notice in the national gazette (it may be also foreseen the publication of the same information in the Ministry of Justice, as a board information);
8) Attribution of competence to translate (and certify the translation) of documents written in foreign language to other entities beyond notaries, specifically to the Timorese consulate in the country of the document issuance, to the consulate of the referred country in East Timor or to any other official entities who may be considered qualified for that purpose;
9) Abolishment of the requirement of trade entities' legal books authentication in the business registration office;
10) Possible abolishment of some of the trade entities' books that are required by current law and/or provision of the possibility of adoption of other document supports.