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 Haiti. 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.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Deposit the legally required initial capital in the National Bank and obtain deposit evidence | 1 day | no charge |
| 2 | Prepare of company statutes ( Articles and Memorundum of Association) | 10 days | HTG 25000 - 35000 |
| 3 | Notarize the company deeds and articles of association | 15 days | HTG 15000 - 25000 notary fees |
| 4 | Pay the registration fee at the Direction Générale des Impôts (DGI) | 1 day | HTG 250 (frais de dossier) + HTG 25 (vignette bleue) |
| 5 | Registration with the Commercial Registry at the Ministry of Commerce and Industry and obtain the authorization of operations (Droit de fonctionnement) | 2-3 weeks for registration and 60 days for publication | HTG 1500 for registration + HTG 20000 for publication in Le Moniteur (10-25 pages) |
| * 6 | Obtain the Tax ID number (numero d’identification fiscale -NIF) from the Tax authorities (DGI), pay fees, and obtain certificate of patente | 15 days (simultaneous with previous procedure) | HTG 50 (tax ID card) + 2% of initial capital + 0.3% per share + HTG 102 (droit de fonctionnement) + HTG 5 (taxe carte d’identite professionelle) |
| 7 | Obtain the “Carte d’Identite Professionelle” from the Ministry of Commerce | 15-20 days | HTG 300-500 |
| 8 | Obtain special commercial books | 2 days | HTG 5000 |
| 9 | Legalize the commercial books | 7 days | HTG 1000 |
| 10 | Notification to the Labor Ministry about hiring | 1 day | no charge |
| 11 | Register for social security (OFATMA) | 1 day | no charge |
| 12 | Register for Retirement Insurance Office (ONA) | 1 day | no charge |