One-Stop Business Start-up Center (OSBSC) in Hargeisa, Berbera, and Burao

The Government of The Somaliland (GOS), under the leadership of the Ministry of Commerce and Tourism, has requested the World Bank Group – through the Somalia PSD Re-Engagement Program Phase II (Som-PREPII) Multi-Donor Trust Fund (MDTF) – to provide technical and financial support for the streamlining and decentralization of the business start-up process in Somaliland. This will include the establishment of a one stop shop for registering a new business to be known as the One-Stop Business Start-up Center (OSBSC), initially as a pilot program in three regional locations – Hargeisa, Berbera and Burao; and with a view to eventual expansion to other locations.

The objectives of this program are to stimulate the development of the private sector and to foster job creation through support to relevant government agencies and stakeholders by implementing a program of reforms that will revise, streamline and simplify administrative, institutional and procedural frameworks and associated ICT processes for starting a business in Somaliland.

During this project, our staff was responsible for the following:

• Policy and Administrative Reform: This includes identifying the institutional, procedural, and capacity bottlenecks for registering a business, with particular regard to relevant processes and regulatory arrangements administered by the Ministry of Commerce (business licensing), Attorney General’s Department (business registration), Ministry of Finance (tax administration), as well as municipal requirements related to occupancy permits and local taxes affecting businesses in the cities of Hargeisa, Berbera and Burao. This is to include the identification of other relevant authorities or processes, such as ministerial orders, that may affect the administration of business start-ups in the proposed localities. Our scope of work also includes providing policy advice and recommendations that are to incorporate reform solutions endorsed by a broad circle of stakeholders, including the private sector in the target localities.
• Business Process Re-Engineering: We are responsible for assisting in simplifying the existing procedures for business start-up by proposing improvements as a result of a process of business process re-engineering affecting related regulatory agencies.
• Pilot implementation of the One Stop Business Start-up Centres (OSBSCs). – Training, Capacity Building, and Communication Outreach.

Expected Impacts:

(a) Reduce the aggregate number of days to register a business within the relevant MDAs.

(b) Reduce the aggregate cost of business start-up applications, particularly the minimum paid-in capital and the associated fees and taxes.

(c) Increase the number of newly registered companies

(d) Allow all entrepreneurs to register online within their own municipalities without having to physically travel to Hargeisa.