Officials expect new business registrations to grow by 8.06% this year as the government promotes small and medium-sized enterprises (SMEs), infrastructure development and tourism.
The bright prospects are also due to the government's new regime that allows the incorporation of juristic persons registered by only one person and the Secured Transactions Act, both of which will take effect this year
The current incorporation rule requires a minimum of three promoters or shareholders for a limited company and at least two promoters for a limited partnership. It also requires at least one director, an auditor, a memorandum of association, a statutory meeting and registration of the incorporation papers. According to a study by the Business Development Department most juristic persons are established with three or four directors. In practice, however, often only one shareholder truly owns and manages the company.