About the MEDT’s Role in Improving Business Environment Ministry of Economic Development and Trade of the Kyrgyz Republic About the MEDT’s Role in Improving Business Environment

Key Problems Impeding Business Development Imperfect entrepreneurship-related legislation Problem with registration Imperfect system of licenses and permits Numerous inspections by state controlling agencies Tax burden

Reforms in the construction sector Resolution of the Government of the Kyrgyz Republic № 252 dated May 30, 2008 “On Approval of the Procedure for Issuance of Permissive Documents for Designing, Construction and Other Changes in Real Estate Objects and the Procedure for Commissioning Completed Construction Objects in the Kyrgyz Republic” 2. Law of the KR “On Introducing Amendments and Addenda to the KR Law “On City Planning and Architecture of the Kyrgyz Republic”

Reforms in the area of information sharing, protection of minority shareholders and control of related party transactions Law of the KR “On Introducing Amendments and Addenda to the KR Law “On Joint Stock Companies” Concerned person Plaintiff (shareholder) Court Chairman of the Management Board/ Board of Directors Recognizing the transaction to be invalid Public and/or shareholders Disclosure of information on the deal Published statements Concerned person Related party transaction Board of Directors Plaintiff (shareholder) Direct / indirect claim Court Related party transaction Damage to JSC

Reforms in the area of information sharing, protection of minority shareholders and control of related party transactions Law of the Kyrgyz Republic “On Introducing Amendments to the Civil Code of the KR” Credit history: more than 2-year period Data on: Individuals Legal entities Data: Positive Negative Data on credit: 1% of income Credit information from: 1. Retailers 2. Trade creditors 3. Providers of utility services 4. Financial institutions CIB (Credit Information Bureau) The borrower can check his data in the CIB register Laws of the KR

Business Start-Up Reforms The KR Law on Introducing Amendments and Addenda to the KR Law “On State Registration of a Legal Entity, a Branch and a Representative Office of a Legal Entity” $ Placing a deposit in a bank Notarization of constituent documents Verification of the legal entity’s location . Registration with the Ministry of Justice the Tax Office Receiving a permit for the seal and , the stamp the Social Fund Opening a bank account

RLA Adoption Flow Chart Regulatory and Legal Act RIA Methodology beneficial Economic appropriateness non-beneficial Adoption Abolishment

“Guillotine” Principle

Ministries and agencies Working groups Draft Resolution of the Government of the Kyrgyz Republic “On the Interdepartmental Commission on Regulatory Reform” Government of the Kyrgyz Republic Interdepartmental Commission on Regulatory Reform Ministry of Economic Development and Trade of the KR Experts’ Working Group Ministries and agencies Working groups RIA

Contains the following norms: The Procedure for conducting inspections Resolution of the KR Government “On the Procedure for Conducting Inspections of Subjects of Entrepreneurship and Identifying the List of Authorized Bodies Having the Right to Conduct Inspections of Subjects of Entrepreneurship” as of 6.11.07, №533 Contains the following norms: The Procedure for conducting inspections The Procedure for coordination of the inspection plan Prohibits to conduct overlapping inspections on the same issue by different controlling entities

To implement the KR Law “On the Procedure for Conducting Inspections of Subjects of Entrepreneurship, the BELL Program has been developed inspection Entrepreneur State Controlling Body (AB) ring Public Relations Office of the MEDT Mobile team «BELL» Explanation of the Law on Inspections Identification of violations Reporting in mass media Taking actions Consists of: MEDT Mass media Business associations visit Establishing legality of the inspection NO YES

Next steps and perspective directions for development of the KR legislation I. Continue with the reforms to improve the legal frameworks for development of entrepreneurial activities in the Kyrgyz Republic Adoption of a new version of the Tax Code Continuing reforms for reducing bureaucratic barriers when obtaining permissive documents for construction Reduction of procedures for liquidation of enterprises Simplification of procedures to acquire the rights to real estate objects Revision and improvement of the legal frameworks through regulatory analysis of regulatory and legal acts in the sphere of entreprenruship II. Work on improving the Competitiveness Index of the World Economic Forum (Davos, Switzerland)

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