Business registration is the first step in formalizing a business and is mandatory for conducting business in the Gambia, according to The Single Window Business Registration Act of 2013.
Registering a business with the government through the Attorney General’s ( AG) Chambers at the Ministry of Justice offers several advantages. It not only generates revenue for the government through registration and renewal fees but also provides valuable data for strategic decision-making. Additionally, enterprises can benefit in various ways from registering their businesses. Some of these benefits include giving a business a legal existence, facilitating access to finance, enabling formal financial transactions, easier access to public procurement, and the opportunity to join business networks and representative organizations that can advocate and provide services, among other advantages.
Many informal businesses in The Gambia face challenges when trying to register their businesses. This is because there are only two regions with AG Chambers offices where business registration is possible: Banjul and Kanifing. This makes it very inconvenient for informal business owners and prospective business owners in other regions. For example, traveling from Basse or Fatoto, which are more than 325 kilometers from Banjul, to register a business is extremely burdensome.
As a result of these inconveniences, many small businesses remain unregistered. This has significant implications, including the loss of valuable data for decision-making and a substantial amount of revenue for the government. The revenue loss includes not only registration and renewal fees but also income taxes that would have been paid if these businesses were registered and tax-compliant.
The government should prioritize addressing this issue through the Ministry of Justice to ensure that business registration and renewals are accessible in every region in the country. This will not only improve the accuracy of data and revenue collection but also contribute to national development.
The government should prioritize addressing this issue through the Ministry of Justice to ensure that business registration and renewals are accessible in every region in the country. This will not only improve the accuracy of data and revenue collection but also contribute to national development.
Moreover, the Government, through the MOJ, should work towards digitizing business registrations to ensure everyone has access to them and enable them to keep an accurate database of all registered businesses.
References:
- The Single Window Business Registration Act of 2013
- World Bank Doing Business Report 2013
- GCCI/ILO Business Formalization Manual
Wriitten by:
Abdoulie D. Bah, GCCI/ILO FYB TRAINER (Founder of AYEA)