Doing Business 2013 Report entitled: « Smart Regulations for small and medium enterprises » celebrates the the 10th series of Doing Business. Over the last decade, such reports listed almost 2,000 business regulation reforms implemented in 180 economies. Across the world, local entrepreneurs have considerably benefited from such reforms.
In this regard, on Wednesday, April 24, 2013, at the Council of Ministers, the Ivory Government passed a proposed Order reducing the costs for the creation of companies with capital that does not exceed 1,000,000 FCFA. This measure was supported by its commitment to make the business environment more attractive in Ivory Coast and to improve its ranking in the Doing Business report.
According to the Doing business 2013 Report, the Ivory Coast is currently ranked at the 176th position while in 2012 the country was ranked at 173th position for enterprise creation. Consequently, the country lost 3 places compared to the past year. Through this action, the Ivory Coast Government wants to express its strong commitment to improve the business environment in the Ivory Coast as well as its ranking in the Doing Business report.
The proposed Order particularly abolishes the registration fees of 18,000 FCFA required before fee stamp as the payment of research right of 5,000 FCFA. However, such proposal maintains the ad valorem duty which accounts for 0.3% of the capital of the company under creation.
In addition, despite many incentive tax measures taken by the Ivory Coast Government as well as the implementation of the Guichet Unique for investors through the establishment of the Investment Promotion Centre organized by the Decree No. 2012-867 of September 6, 2012, the country is still mentioned as the States in which enterprise creation is very difficult. This measure reaffirms the Government’s willingness to render the business climate more competitive in Ivory Coast by namely easing the proceedings and reducing the costs related to the creation of companies.
In the same token, the Ivory Government passed another measure to promote commercial transactions.
Actually, this other proposed Order concerns the transfer of property. This proposal reduces the registration rate on property transfer from 10% to 7%. Therefore, this measure abolishes the income tax clearance required from the seller on all of its assets, which is replaced by one discharge on the sole transferrable asset.
« Despite adopted incentive tax measures, our country is still among the States in which to create an enterprise and to transfer property is always subjected to tax charges relatively higher. Therefore, these two orders shall improve this situation by alleviating the tax weights and procedures on real estate transfer operations and enterprise creation. Thus, the Government wants to improve both the business environment and its rank in Doing Business ».
To conclude, these two proposed orders will contribute to improving the business environment and to enable the Ivory Coast to gain a good position in the next Doing Business Report. They shall be signed and enacted by the President of Republic in the forthcoming days.