Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in the West Bank and Gaza Strip. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
This information was collected from World Bank: Doing Business
Time to Complete
Search for company name and reserve proposed name
Local lawyer signs company documents
Submit company incorporation papers & obtain temporary copy of certificate of registration from Ministry
Deposit initial capital
Register with Companies Registry
Payment of registration fee
Register for income and VAT tax
Register with Chamber of Commerce
Obtain business license from municipality
35 days (simultaneous with previous procedure)
Obtain approval from fire department
1-3 days (simultaneous with previous procedure)
0.15 USD per square meter
Obtain and legalize special company books
3 days (simultaneous with previous procedure)
30 USD per transaction
* Takes place simultaneously with another procedure.