Business Reforms in Rwanda

Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.

DB2014:

Starting a Business:

Rwanda made starting a business easier by reducing the time required to obtain a registration certificate.


Dealing with Construction Permits:

Rwanda made dealing with construction permits easier and less costly by reducing the building permit fees, implementing an electronic platform for building permit applications and streamlining procedures.


Registering Property:

Rwanda made transferring property easier by eliminating the requirement to obtain a tax clearance certificate and by implementing the web-based Land Administration Information System for processing land transactions.


Getting Credit:

Rwanda strengthened its secured transactions system by providing more flexibility on the types of debts and obligations that can be secured through a collateral agreement.


Protecting Investors:

Rwanda strengthened investor protections through a new law allowing plaintiffs to cross-examine defendants and witnesses with prior approval of the questions by the court.


Paying Taxes:

Rwanda made paying taxes easier and less costly for companies by fully rolling out its electronic filing system to the majority of businesses and by reducing the property tax rate and business trading license fee.


Trading Across Borders:

Rwanda made trading across borders easier by introducing an electronic single-window system at the border.


Resolving Insolvency:

Rwanda made resolving insolvency easier through a new law clarifying the standards for beginning insolvency proceedings; preventing the separation of the debtor’s assets during reorganization proceedings; setting clear time limits for the submission of a reorganization plan; and implementing an automatic stay of creditors’ enforcement actions.


DB2013:

Enforcing Contracts:

Rwanda made enforcing contracts easier by implementing an electronic filing system for initial complaints.


Getting Electricity:

Rwanda made getting electricity easier by reducing the cost of obtaining a new connection.


DB2012:

Starting a Business:

Rwanda made starting a business easier by reducing the business registration fees.


Registering Property:

Rwanda made transferring property more expensive by enforcing the checking of the capital gains tax.


Getting Credit:

In Rwanda the private credit bureau started to collect and distribute information from utility companies and also started to distribute more than 2 years of historical information, improving the credit information system.


Paying Taxes:

Rwanda reduced the frequency of value added tax filings by companies from monthly to quarterly.


DB2011:

Dealing with Construction Permits:

Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits.


Getting Credit:

Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank’s public credit registry.


Trading Across Borders:

Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment.


DB2010:

Starting a Business:

Rwanda simplified the start-up process by eliminating the notarization requirement, introduction of standardized memoranda of association, making publication on-line, consolidation of name-checking, registration fee payment, tax registration and company registration procedures, and reducing the time required to process completed applications.


Employing Workers:

Rwanda increased the maximum duration of fixed-term contracts and eliminated the obligation to notify and seek the approval of a third party in cases of redundancy dismissals.


Registering Property:

Rwanda continued to ease the registration of property by decreasing the number of days required to transfer a property.


Getting Credit:

Rwanda made it easier to get credit with a new Secured Transactions Act and a new Insolvency Act to make secured lending more flexible, allowing a wider range of assets to be used as collateral and a general description of debts and obligations. Furthermore, out of court enforcement of collateral is now available to secured creditors who also now have absolute priority within bankruptcy. A new collateral registry has been created.


Protecting Investors:

Rwanda adopted a new company law that strengthened investor protections by requiring greater corporate disclosure, director liability and shareholder access to information.


Trading Across Borders:

Rwanda has improved trading times with administrative changes such as increased operating hours and enhanced cooperation at the border along with the removal of some documentation requirements for importers and exporters.


Resolving Insolvency:

Rwanda improved the process of dealing with distressed companies with a new law that aims at streamlining reorganization procedures.


DB2009:

Dealing with Construction Permits:

Rwanda streamlined project clearances for the second year in a row by combining the processes for obtaining a location clearance and building permit in a single application form. Rwanda also introduced a single application form for water, sewerage and electricity connections


Registering Property:

Rwanda abolished the 6% registration fee and replaced it with a flat rate of RWF 20,000 (about $34), regardless of the property value. Rwanda also created a new centralized service in the tax authority to speed up the process of issuing the certificate of good standing. As a result, the cost to transfer a property was reduced by 8.81% and the number of days by 56, from 371 days to 315.


Trading Across Borders:

Due to extended opening hours, implementation or improvement of EDI, risk-based inspections, transportation sector led to a decrease in export and import time.


Enforcing Contracts:

Commercial courts began operating in three locations, in Kigali, and Rwanda’s Northern and Southern province.


DB2008:

Dealing with Construction Permits:

Rwanda made obtaining construction permits easier by decentralizing the permit system which reduced the total time of getting a building permit and an occupancy permit. Meanwhile, the total time to obtain electricity connection was decreased. The government also set up the requirement for waste management facilities and proper sewerage.


Trading Across Borders:

Rwanda has eased trading across borders by expediting the acceptance of customs declarations and by liberalizing the warehouse services market.


Reform Summaries


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