Business Reforms in Malawi
= Doing Business reform making it easier to do business. = Change making it more difficult to do business.
Starting a Business: Malawi made starting a business more expensive by increasing the cost of registering a business with the Registrar General.
Dealing with Construction Permits: Malawi made dealing with construction permits cheaper by halving the fees charged by the city council to process building plan approvals.
Getting Credit: Malawi strengthened access to credit by adopting a new law that establishes clear priority rules inside and outside bankruptcy procedures. Malawi improved access to credit information by establishing a new credit bureau.
Trading across Borders: Malawi made exporting and importing easier by upgrading to a web-based customs data management platform, ASYCUDA World.
Resolving Insolvency: Malawi made resolving insolvency easier by introducing a reorganization procedure, facilitating continuation of the debtor’s business during insolvency proceedings and introducing regulations for insolvency practitioners.
Starting a Business: Malawi made starting a business easier by eliminating the legal requirement to use a company seal and making it optional for entrepreneurs.
Getting Credit: Malawi strengthened access to credit by adopting a new law on secured transactions that implements a functional secured transactions system and establishes a centralized, notice-based, online collateral registry.
Protecting Minority Investors: Malawi strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, by clarifying ownership and control structures through the prohibition of a subsidiary company from acquiring shares issued by its parent company, and by extending the ability for shareholders to recover their legal expenses.
Starting a Business: Malawi made starting a business easier by streamlining company name search and registration and by eliminating the requirement for inspection of company premises before issuance of a business license.
Getting Electricity: Malawi reduced the time required to get electricity by engaging subcontractors to carry out external connection works.
Registering Property: Malawi made transferring property easier by reducing the stamp duty.
Dealing with Construction Permits: Malawi made dealing with construction permits more expensive by increasing the cost to obtain the plan approval and to register the property.
Paying Taxes: Malawi introduced a mandatory pension contribution for companies.
Trading across Borders: Trading across borders in Malawi became easier thanks to improvements in customs clearance procedures and transport links between the port of Beira in Mozambique and Blantyre.
Registering Property: Malawi made property registration slower by no longer sustaining last year’s time improvement in Compliance Certificate processing times at the Ministry of Lands.
Getting Credit: Malawi improved its credit information system by passing a new law allowing the creation of a private credit bureau.
Resolving Insolvency: Malawi adopted new rules providing clear procedural requirements and time frames for winding up a company.
Labor Market Regulation: Malawi decreased the severance pay applicable in case of redundancy dismissals of workers with 10 years of service.
Registering Property: Malawi eased property transfers by cutting the wait for consents and registration of legal instruments by half.
Enforcing Contracts: Malawi simplified the enforcement of contracts by raising the ceiling for commercial claims that can be brought to the magistrates court.
Paying Taxes: Malawi made paying taxes less time consuming for companies by encouraging the use of electronic systems.
Trading across Borders: Malawi reduced delays in clearing goods by implementing a risk-based inspection system and a postdestination clearance program for preapproved traders.
Resolving Insolvency: Malawi enhanced its insolvency process through a new law limiting the liquidator’s fees.
Enforcing Contracts: Malawi made enforcing contracts easier by opening a commercial court and hiring judges for the court.