Studies conducted by USAID LENS found major constraints to business registration in Jordan in terms of requirements for written approvals from one or more ministries or government agencies; multiple on-site before and after inspections; and multiple steps required to register a trade name. This creates inconsistencies in knowledge and communications among government employees, commercial lawyers and business owners.
As a result, the lack of clarity around the registration process drives many micro and small enterprises (MSEs) and startups to avoid registering and licensing their businesses, and hence, prevents them from growing and expanding.
USAID LENS Work
In order to reach its target of improving the efficiency of the registration process and increasing the awareness of public policy; USAID LENS began working with partners to improve business registration in Jordan as a whole.
USAID LENS is currently working with the Ministry of Industry and Trade (MOITS) and the Companies Control Department (CCD) to improve the efficiency of business registration process for MSEs. This includes upgrading CCD’s server storage capacity to handle more data for registered businesses, and developing a business registration manual that clearly outlines the registration process for different types of businesses in order to motivate people to formalize their businesses.
USAID LENS completed the procurement of a data server and storage array valued at JD 100,000 to the Companies Control Department in October 2015. This new high-performance database server will enable the CCD to enhance the efficiency of business registration processes for micro and small businesses across Jordan.
USAID LENS has partnered up with the Ministry of Industry, Trade and Supply, and the Companies Control Department to create a detailed and comprehensive startup guide to help MSEs in the registration & licensing process, in collaboration with the Financial Services Volunteer Corps. The guide aims to lay out in a clear and simple manner, the steps first-time registrants must take. This includes everything from the required documents, capitalization, fees to specific requirements for specific businesses. The guide was published in the first quarter of 2016.
USAID LENS is working on producing four videos on business registration an individual establishment, private partnership, limited liability and the overall business registration and licensing process. Moreover, MOITS Secretary-General emphasized the need for support to promote the videos on TV channels as well as utilizing both CCD and MOITS social media channels.