ECRF/CRF/IACA Survey 2013

Annika BränströmMonica Grahn

ECRF working group• Axel Forstmann, Germany• Rolf Koenig, Germany• Celia Johnston, Germany• Rico Dunn, The Netherlands• Lars Eliassen, Norway• Vito Giannella, Italy• Snezana Tosic, Serbia• Stacey-Jo Smith, UK• Kasper Sengelöv, Denmark• Annika Bränström, Sweden• Monica Grahn, Sweden• Magdalena Norberg-Schönfeldt, Sweden• Latha Kunjappa, CRF, Singapore• Hayley Clark, IACA, Canada

Survey purpose • 2002 – 2009 The starting years

– Basic statistics on registries and trends– Basic report, limited analyses – Base for benchmarking between registries

• 2010 – 2011 Improvements– Improve the ground for policy learning – Review the survey – Produce a more analytical and coherent report– Find a more solid and long term organisation for future surveys and

reports• 2012 – Make it global

– Include more countries/organisations in the survey– Keep on improving the survey and the report

2002 2005 2006 2007 2008 2009 2010 2011 2012

CRF 0 0 0 11 14 12 17 21 20

ECRF 20 29 31 31 28 29 31 29 34

IACA 0 0 0 0 0 0 0 0 18

5

15

25

35

45

55

65

75

Number of Participating Countries/ Organisations in the ECRF/CRF/IACA Survey

ECRF, CRF and IACA Participants

ECRF CRF IACA

Austria** Liechtenstein** Anguilla New Zealand** Canada** Nova Scotia

Belgium** Lithuania** Australia** Nigeria Delaware Ohio

Belgium** Luxembourg** Brazil - Alagoas Maceio Pakistan** Hawaii Oregon

Croatia** Macedonia* Cook Islands** Rwanda Louisana Texas

Czech Republic** Moldova Hong Kong* Singapore** Manitoba Utah

Denmark Netherlands** Israel** South Africa** Michigan Washington DC

Estonia** Norway** Lesotho* Sri Lanka Montana Washington State

Finland* Romania** Malaysia** Turkey Nevada Wisconsin

Georgia* Serbia** Mauritius** Uganda Newfoundland and Labrador

Germany** Slovenia** Mongolia Vanuatu North Carolina

Gibraltar** Spain, central** Guernsey** Sweden**

Ireland* Switzerland** Isle of Man** United Kingdom** Italy**

Jersey** Latvia Associated members of ECRF

Kosovo Ukraine Montenegro

*=2011,2012 Trend data available **=2010, 2011, 2012 Trend data available

Participating Countries/Organisations in the 2012 ECRF/CRF/IACA Survey

Chapter 1Legal and institutional settings

Africa & ME Govern-

ment

America Govern-

ment

Asia-Pac Govern-

ment

Asia-Pac Other

Europe Chamber of Commerce

Europe Court of Justice

Europe Govern-

ment

Europe Other

Europe Public-Private

Partnership

Percent-age

1 1 0.8 0.2 0.06 0.11 0.630000000000002

0.14 0.06

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Who Operates the Business Registry

Africa & ME Cent-

ralized

Africa & ME De-

centralized (non

autonom-ous local offices)

Africa & ME De-

centralized (autonomous local offices)

America Centralized

America Decentral-ized (non autonom-ous local offices)

Asia-Pac Centralized

Asia-Pac Decentral-ized (non autonom-ous local offices)

Asia-Pac Decentral-

ized (autonomous local offices)

Europe Centralized

Europe De-centralized

(non autonom-ous local offices)

Europe De-centralized (autonomous local offices)

Percent-age

0.714285714285715

0.142857142857144

0.142857142857144

0.950000000000001

0.05 0.600000000000001

0.2 0.2 0.600000000000001

0.114285714285715

0.285714285714287

5%

15%

25%

35%

45%

55%

65%

75%

85%

95%

Structure of the Business Register

Chapter 2Processing Time

None Name reserva-tion

Legal permit(s) Bank certifi-cate(s)

Notary Public Other

Africa & ME

0.285714285714286

0.571428571428571

0 0 0.142857142857143

0.142857142857143

America 0.65 0.25 0 0 0 0.1

Asia-Pac 0.2 0.8 0.1 0 0 0.3

Europe 0.257142857142857

0.171428571428571

0.228571428571429

0.285714285714286

0.457142857142857

0.114285714285714

5%

15%

25%

35%

45%

55%

65%

75%

Mandatory Pre-registration Activities

0 20 40 60 80 100 120 1400

20

40

60

80

100

120

CZ1111112

HKIM

1CH RO LT3 4

BZ

EE

1LS3

NEV

4GI

NEWNLRW

CAZALI ORELU UK

AUUTA

HR

DELUA

LOU PKDEMIC

IL NG

IT NO

TEX

NOV

LK

KVMN

RS

LVNORMD

UG

SIHAW

ME WIS

IR

MAN

FI

VU

WAS

SE

Time to Process Incorporations vs. Time to Process Changes (Including Pre-registration Activities)

Time to Process Incorporations (hours)

Tim

e to

Pro

cess

Cha

nges

(hou

rs)

0 2 4 6 8 10 12 14 16 18 200

2

4

6

8

10

12

14

16

18

CZ

BE1WDC

DKOHI

AICKTRNZ

SG

GG

GE

JE

MU

LSMY

GI

NEW

MK

CH

RW

AT

UKORE

LULI

AU

ZA

UTA BZ

CA

DEL

LOUMIC UAR² = 0.634530370717235

1st Quadrant: Fastest processing time, incl. pre-registration

Time to Process Incorporations (hours)

Tim

e to

Pro

cess

Cha

nges

(hou

rs)

Chapter 3e-Services

Chapter 4Cost, Fees and Charges

Governmental funding No Funding

Africa & ME 0.571428571428571 0.428571428571429

America 0.7 0.3

Asia-Pac 0.4 0.6

Europe 0.6 0.4

5%

15%

25%

35%

45%

55%

65%

Source of Funding

Incorpora-tion

Changes Annual Ac-counts

Keep Entity in Rgister

Information Fees

Other Fees Some Ser-vices are free

of Charge

Africa & ME

1 0.714285714285714

0.714285714285714

0.571428571428571

1 0.571428571428571

1

America 0.95 0.9 0.4 0.75 0.8 0.8 0.9

Asia-Pac 1 0.9 0.6 0.7 0.9 0.7 0.7

Europe 0.857142857142857

0.857142857142857

0.342857142857143

0.228571428571429

0.771428571428572

0.571428571428571

0.885714285714286

5%15%25%35%45%55%65%75%85%95%

Fees Collected

Rwanda

Uganda

Nigeria

Michigan

Oregon

North Caro

linaOhio

Canada

Newfoundland and Labrador

Texas

Delaware

Wash

ington State

Mongolia

Australia

New Zealand

Malaysia

Hong Kong

Montenegro

Croatia, R

epublic of

Ireland

Guernsey

Germany

Czech

Republic

Austria

Switzerla

nd

Norway

Netherlands

United Kingdom

Georgia

Lithuania

Luxe

mbourgJerse

y

Belgium0

100

200

300

400

500

600

700

800

Source of Funding and Average Incorporation Price

Africa & ME

Europe

Avg = €93

America Asia-PacAvg = €281

Avg = €139 Avg = €130

Avg = €215

Avg = €96

Avg = €210

Avg = €73

Euro

Chapter 5Business Dynamics

0% 5% 10% 15% 20% 25%0%

5%

10%

15%

20%

25%

30%

35%

UTA

CZUALIDE

ESCNEW

WDC MD TRIL MICFIRONG BE1

SE

MY

ITLU JEMK

ZAPK

CHATLT ME HRIRLSKV IMNO NZUG

GGGI

MU AU GE DKWIS

NOV NOR MANEELVCA

VU NLORE LKMN RS

SI WASTEX SGHKCKDEL

UKHAW

NEV

RW

AI

Relationship between Percentage of New Registrations and Percentage of Terminations in a Register

Percentage of Terminations

Perc

enta

ge o

f New

Reg

istr

ation

s

Sole Trader General Partnership

Private Lim-ited

Public Lim-ited

Limited US LLC Other Entity

Africa & ME 67963 719 162351 325 21655 NaN 9258

America 5821 6683 4000 2 167175 883116 380323

Asia-Pac 294735 54034 430029 2532 44439 NaN 6669

Europe 774382 105109 604931 20278 543939 NaN 100114

50,000

150,000

250,000

350,000

450,000

550,000

650,000

750,000

850,000

Firm Creation by Region

2023-04-11

Conclusions in the 2013 report (1)• European registries seem to

be more empowered• The general trend is to

provide companies with a unique identification number

• Mandatory pre-registration activities are more common in Europe

• The existence of pre-registration activities has a negative effect on processing-time

2023-04-11

• It is more common to send documents electronically in Europe than elsewhere

• The usage of e-services has no impact on processing-time and productivity

Conclusions in the 2013 report (2)

Axel Forstmann, ECRF Survey - Definition Group, Germany 27

ECRF Survey Working Group

“Definitions”

Rio de Janeiro, March 2014

Definition of..

28 Axel Forstmann, ECRF Survey - Definition Group, Germany 28

- Existing legal forms in Business Registers

- „Branches“ of companies

If we talk about....

29 Axel Forstmann, ECRF Survey - Definition Group, Germany 29

..limited Companies…..

The ECRF-CRF-IACA Survey

30 Axel Forstmann, ECRF Survey - Definition Group, Germany 30

How can we answer the question for the survey ?

If we answer the questions...

31 Axel Forstmann, ECRF Survey - Definition Group, Germany 31

Do we really talk about the same Legal Form?

In the questionaire....

32 Axel Forstmann, ECRF Survey - Definition Group, Germany 32

……all of us ????

The „Definition Group“

33 Axel Forstmann, ECRF Survey - Definition Group, Germany 33

• Collection of existing Legal Forms of all participants of the survey

• Find out similarities and differences

• Define groups of Legal Forms

• Implement them into the survey

Branches

34 Axel Forstmann, ECRF Survey - Definition Group, Germany 34

Regional Office

Unit

Branch

Agency

Daughter Company Subsidiary

Mother CompanyMain Office

HeadquartersMain Establishment

Branches

35 Axel Forstmann, ECRF Survey - Definition Group, Germany 35

Or…

A company in my Business Register which has a

foreign or national legal form and a name of a

company in an other country but I have no idea how they

are related to each other

The “Definition Group”

36 Axel Forstmann, ECRF Survey - Definition Group, Germany 36

• Collection of existing legal definitions for „Branch“ of all participants of the survey

• Find out similarities and differences

• Try to find an common accepted definition

• Implement them into the survey

Definition of Branches

37 Axel Forstmann, ECRF Survey - Definition Group, Germany 37

1.New Zealand:In terms of “Branches” our legislation requires all overseas companies commencing business in NZ to register on the overseas register ( as set out in the spreadsheet), sometimes these overseas companies are loosely referred to as branches.  An overseas company must on registering provide evidence of incorporation of the overseas company (this can be a certified copy of the certificate or incorporation or registration ) and a copy of the instrument constituting or defining the constitution of the company, and, if not in English, a translation of such documents certified in accordance with regulations made under the Companies Act.  For Australian companies registered on the Overseas register we also require the ABN (Australian Business Number).2.Gibraltar:The definition of a branch in Gibraltar is as follows:-The Companies Act states the following: ”branch” means a branch within the meaning of Council Directive 89/666/EEC on the disclosure requirements in respect of branches      opened in a member State by certain types of company governed by the law of another member State; Of course, European Law does not itself define a "branch". Our interpretation of the legal term "branch" on the basis of the definition in the Companies Act is as follows:-

Definition

38 Axel Forstmann, ECRF Survey - Definition Group, Germany 38

Australia Ireland New Zealand

Azerbaijan Italy Newfoundland and Labrador

Belgium Jersey Oregon

Canada Kiribati Pakistan

China Latvia Republic of Moldova

Croatia Lichtenstein Serbia

Delaware Lithuania Slovenia

Denmark Luxemburg Spain

Estonia Macedonia Sweden

Georgia Malaysia Switzerland

Germany Mauritius UK

Gibraltar Mauritius Washington D.C.

Guernsey Montenegro

Definition Group

39 Axel Forstmann, ECRF Survey - Definition Group, Germany 39

We need your assistance !

Definition Group

40 Axel Forstmann, ECRF Survey - Definition Group, Germany 40

Thank you !

Next Step – The Global Business Registration Survey

Next Step – The Global Business Registration Survey

• Continuation of the ECRF survey and report • Proposal to establish The Global Business

Registration Survey as a permanent structure– CRF, Rio de Janeiro in March– IACA, Milwaukee in May– ECRF, Rome in June

• The survey and associated report are accepted as the “gold standard” for information and benchmarking regarding business registration activities such as thresholds, process steps, time, and outcomes.

• Fifty per cent or more of the world’s publically available business registries participate in the survey within three years.

• The survey is used as an input into other international reports (such as the World Bank’s “Doing Business”) and by researchers.

Goals

Time for discussion

What would you like to know?

Time for discussion

What should make you want to use the report? For example:

1. Important themes to be included in the survey and report?

2. In what areas do you see a need to compare with others?

Discuss with your neighbor´s

All this will not be finishedIn the first one hundred days.

Nor will it be finishedin the first one thousand days,

nor in the lifeof this Administration,

nor even perhapsin our lifetime on this planet.

But let us begin

Inaugural Address

Contact

annika.branstrom@bolagsverket.se