You are on page 1of 6

DOING BUSINESS 2019

Starting a Business
and Registering
Property
The role of training in facilitating
entrepreneurship and property rights
ƒƒ This year Doing Business collected
data on training provided to business
By keeping records of a company’s formal existence and of land and land registry officers and users in
ownership rights, business and land registries play a critical role in 183 economies.
any economy’s business environment. Registering a new company or
ƒƒ Training opportunities at business and
a property right is best done when registry officers are well trained
land registries are only provided in a
and knowledgeable. A combination of targeted training and effective
limited number of economies.
communication to both civil servants and the public can improve the
overall quality of the public goods and services provided by business ƒƒ Only 24% of the economies measured
and land registries. for this case study legally require
professional training for business
registry officers.
For the first time this year Doing Business The systematic training of registry
collected data on the training and commu- officers is, therefore, vital for a well-func- ƒƒ Mandatory training for business
nication of changes provided to both the tioning registry system and the effective registry officers is associated with
officers and the users of business and implementation of government policies higher business registry efficiency
land registries. Regarding registry officers, to promote entrepreneurship. while annual training for land registry
officers is also associated with higher
Doing Business research covered qualifi-
land registry efficiency.
cation requirements for civil servants, the Relevance of training in
mandatory training of officers, the business and land registries ƒƒ Communication of changes at the
frequency and duration of training and Well-trained staff are more efficient business and land registries—through
how changes in the registries are commu- and less prone to making errors when workshops for registry officers and
nicated to them. Data were also collected assessing transactions or assisting dissemination campaigns for registry
on training for registry users, including entrepreneurs. Business registrars users—is associated with a lower
the workshops offered to new business typically undertake a series of training transaction completion time.
owners and the targeted communication programs and examinations to gain
of registry changes to the general public. the qualifications required to perform
This case study examines how training their duties. The Canadian province of
contributes to business activity by Alberta, for example, requires aspiring
improving the quality of services provided business registrars to complete three
by business registries (to entrepreneurs) levels of exams to receive the highest
and land registries (to property owners). accreditation for the Corporate Registry
Electronic System. To pass these exams,
students complete three online courses
TRAINING REGISTRY (costing 365 Canadian dollars—about
OFFICERS $282—each) through which they learn
how to perform procedures such as
Business and land registry officers play a registering limited liability partnerships
key role in facilitating the delivery of high- and amending corporate structures,
quality services to new entrepreneurs. among others.1
34 DOING BUSINESS 2019

continuous training for land registry


Training registry officers about upcoming changes officers be practical, available to all
is associated with a positive impact on the business who require it and range from univer-
sity-level courses for comprehensive
operating environment.
professional training to short-term
courses for the introduction of new
Land registrars also play a fundamental provide training to business registry techniques. 5 Land registries should
role in guaranteeing legal certainty to officers. The content of the training is provide both formal and in-house
property rights transactions. To perform diverse, varying from technical skills training for employees and ensure
their duties local land officers need a (legislative changes, types of entities and that staff have adequate time to take
range of technical and communication incorporation requirements, IT skills) to advantage of training opportunities.6
skills that can be attained through staff soft skills (professional ethics, commu- Training is essential to convey registry
training programs.2 Most economies nication skills). In Spain, the Professional service standards (procedural times,
regulate the position of land registrar, Association of Registrars offers online for example) so that staff understand
typically through minimum skill or educa- and in-person courses free of charge their duties and are equipped to handle
tion requirements. Of the 183 economies for registry officers. Topics include the problems when they arise.7
included in this case study, 74% require legal forms and corporate structure of a
that land registrars attain a minimum company and the processes of registering Training should not be limited to
level of education (usually a university or dissolving each type of company, managers and supervisors. Land registry
degree in law), 47% require a profes- among others.4 staff that interact with the public on a
sional qualification and 44% mandate daily basis should also be well trained.
a minimum number of years of experi- Slightly more than half of the economies Capacity-building training programs—
ence. Only 15% of economies require a that legally mandate training also define such as that provided for the staff of
combination of four criteria—typically a a minimum frequency or duration of Turkey’s land and cadaster agency in
minimum level of education, minimum that training. In China and Romania, for 2018 or the workshop on land records
years of experience, professional example, mandatory training programs management in Thailand held in 2017—
qualification and being a civil servant. must be held annually. Registry staff typi- can be important for maintaining the
Prospective land registrars in Bulgaria, for cally make decisions on the duration and quality of land registry services.8
example, must have a university degree in frequency of training programs.
law, a license to practice law, evidence of Although most economies do not legally
moral integrity and professional standing, The Land Administration Guidelines require continuous training, one-third
no record of intentional criminal offenses, from the United Nations Economic of economies measured by this case
and the candidate must not be an elected Commission for Europe suggest that study hold regular training programs on
member of the Supreme Judicial Council.
FIGURE 3.1  Most economies do not legally require training for business registry officers
Continuous training in business
and land registries
Training required
Most economies do not have legally
binding regulation that mandates training
for business registry officers (figure 9%
3.1). Indeed, just 24% of the economies
24%
measured for this case study legally 43% 27%
require professional training for business
registry officers. Such requirements vary 76%
21%
significantly among regions—nearly two-
thirds (59%) of economies in Europe and
Central Asia have a legal requirement Only minimum time
for training, but only 11% of economies
Only minimum frequency
in the Middle East and North Africa
Training not required Minimum time and frequency
do.3 Although group classes are the
most common form of training, online Training required No minimum time or frequency

learning tools are used in about 5% of


economies with a legal requirement to Source: Doing Business database.
STARTING A BUSINESS AND REGISTERING PROPERTY 35

a variety of topics for land registry offi-


FIGURE 3.2  Economies with training programs tend to score better than those without
cials. Routine training is offered in 45%
of OECD high-income economies but Score for starting a business, registering property
(0–100)
just 24% of economies in Sub-Saharan
100
Africa.9 While the topics of these training
programs vary, they commonly include
90
administrative processes (offered in 35%
of economies with training), property
80
rights (30%), new systems or innova-
tions (27%) and customer service and
coordination with other agencies such as 70

the cadaster or tax authority (22%).


60

Business and land registry efficiency


tends to be higher in economies where 50
Training at the business registry Training at the land registry
training is offered to registry staff.
Economies with mandatory training for Yes No
business registry officers have a score
for starting a business that is 6 points Source: Doing Business database.
higher on average than those without Note: For training at the business registry, this relationship is significant at the 1% level after controlling for income
per capita. For training at the land registry, this relationship is significant at the 5% level after controlling for income
it (figure 3.2). Furthermore, economies per capita.
with annual training programs at the land
registry have a higher score (by 7 points and East Asia and the Pacific also run Training registry officers about upcoming
on average) for registering property than pilot tests before implementing new changes is associated with a positive
economies without it. processes. Pilot testing is used in impact on the business operating envi-
less than 20% of economies in Latin ronment. Doing Business data indicate
Communicating changes to America and the Caribbean, the Middle that it takes 12 days less on average
registry officers East and North Africa, South Asia and to incorporate a business and 29 days
Changes to regulations or processes Sub-Saharan Africa. less on average to transfer a property in
at business and land registries can be
communicated to staff in various ways.
At business registries, officers learn FIGURE 3.3  Workshops are the most common channel for communicating changes
to registry
about changes to the business start-up
process through workshops in 66% of Share of economies using communication channel
economies; in 39% of economies they (%)

are informed via pilot tests. Workshops 70

and pilot tests are also the most common 60


means of informing staff of changes to 50
regulations or processes at land regis-
40
tries; 56% of economies mainly use
workshops for this purpose while 24% 30

use pilot tests (figure 3.3). 20

10
By using pilot testing, business and
0
land registries can identify and address Workshops Pilot tests Dissemination Public broadcast
potential challenges before the full campaigns
implementation of new processes. Pilot
Business registries Land registries
tests are most commonly implemented
in registries in Europe and Central
Asia, where 55% of business registries Source: Doing Business database.
Note: An economy can use multiple channels of communication as listed above. Economies where changes are not
and 41% of land registries use pilot communicated (two economies) are excluded from the sample. Workshops refer to the use of presentations for a
testing. A significant share of registries group of people. Pilot tests refer to the use of small-scale experiments or tests to introduce changes. Dissemination
campaigns refer to the use of social media or billboards. Public broadcast refers to using television or radio
in the OECD high-income economies transmission to convey changes.
36 DOING BUSINESS 2019

economies where registry officers have of EET on business growth such as, Guatemala’s business registry maintains
received training compared to economies for example, enhancing entrepreneurs’ a budget explicitly dedicated to training
where no training is offered (figure 3.4). access to credit.12 Training programs also system users—the registry has an annual
succeeded in teaching new entrepreneurs budget of 70,000 quetzales (about
managerial skills useful to the opera- $10,000) specifically for training nota-
TRAINING REGISTRY USERS tion of their businesses.13 In addition, ries and lawyers. In recent years the land
business-support interventions for small registry spent 208,000 quetzales (about
Registry users also benefit from training. and medium-size enterprises like training $28,000) to provide training to more
As the popularity of entrepreneurial programs help improve firm performance than 3,000 system users, mainly notaries
training programs has risen in recent and create jobs.14 However, depending and lawyers.
years governments worldwide have on the national context and on the audi-
taken steps to develop and expand ence receiving the program, the impact Skills training programs are more
such programs. of training programs can vary widely. An successful when the private sector is
experiment in Bosnia and Herzegovina, involved in curriculum development as
Relevance of training for for example, showed that individuals well as providing on-the-job training
entrepreneurs with an existing business tend to benefit via internships or apprenticeships.17
In 2014 some 230 Entrepreneurship more from training opportunities and Colombia’s Jóvenes en Acción program, for
Education and Training (ETT) programs make more investments than individuals example, combines classroom instruc-
were identified around the world; without a business.15 tion with on-the-job training at private
these include global initiatives like the companies. This model’s short-term
International Labor Organization’s Know For more than three decades, the New outcomes—namely a higher probability
About Business and Start and Improve Enterprise Incentive Scheme—a program of formal employment and greater earn-
Your Business and regional programs like run by Australia’s Department of Jobs ings—were sustained over the long term.
Injaz Al-Arab.10 and Small Business—has provided
accredited training and mentoring to help Training and information
When EET programs target budding individuals start a business. Delivered by opportunities for registry users
entrepreneurs, results show significant a network of 21 providers nationally, each Registries offer training to start-up firms
increases in self-employment, household year the scheme provides 8,600 people in just over one-half of OECD high-
consumption, and income two years after with small business training, income income economies, the highest share
the intervention.11 Over time, evalua- support and rental assistance during their among the regions measured by Doing
tions find positive and significant effects first year in business.16 Business; registries in South Asia offer

FIGURE 3.4  Starting a business and transferring property tend to take less time in economies where workshops are provided to registry staff

Average time to start a business Average time to transfer property


(days) (days)
70 70

60 60

50 50

40 40

30 30

20 20

10 10

0 0
Workshops at the business registry Workshops at the land registry

Used Not used

Source: Doing Business database.


Note: Both relationships are significant at the 1% level after controlling for income per capita.
STARTING A BUSINESS AND REGISTERING PROPERTY 37

the least training to entrepreneurs (figure answers to specific inquiries related to Communication of changes to
3.5). Where training opportunities are procedures. Of the economies included registry users
offered to entrepreneurs, these usually in this case study, 57% have a help Business and land registries inform
take the form of group classes, work- desk specifically for property registra- the public of changes—for example, to
shops and seminars. Online courses are tion available to the public. In general, requirements for registering a company
available in one-third of the economies economies with a publicly-available or selling a property—using various chan-
that offer training. help desk tend to have a higher score nels of communication. In a majority of
on the quality of land administration economies, business registries commu-
Training can be offered to anyone index.19 The help desk, which is entirely nicate changes to the business start-up
starting a business but, in some cases, focused on user and customer satis- process via a dissemination campaign
special learning opportunities are faction, improves land registry quality using social media or physical bill-
directed to targeted groups, such as by providing feedback on the types of boards (63%) and public broadcasts on
youth, elderly and woman entrepre- issues raised by customers, which the television or radio (65%). Training and
neurs. However, just 17% of economies registry can then address. Since Peru’s workshops are a less-common method of
that provide training implement targeted Superintendencia Nacional de los Registros conveying such changes (36%).
training programs. In Niger the Chamber Públicos (SUNARP, the national public
of Commerce and Industry and registry superintendency) established Income level plays a role in determining
the National Employment Promotion the Citizen Attention Center in 2014, which communication method is used.
Agency run an entrepreneurship training the help desk has addressed more than Business registries in around two-thirds
program tailored specifically to young half a million inquiries. The center’s (70%) of low- and middle-income
people, including high school students lawyers, registration law specialists, economies use public broadcasting;
and other youths who did not complete provide guidance free of charge on those in high-income economies rely
formal education.18 registration and general procedures at more heavily on web-based methods of
the land registry. All citizens have access dissemination, such as publication on
Help desks play a critical role in to this service via e-mail, chat and a free the business registry’s website.
addressing citizens concerns and hotline, Aló SUNARP. Economies that
inquiries regarding various processes have a help desk at the land registry Similarly, when a new initiative is adopted
developed by public agencies. By tend to perform better on the ease of by the land registry, or when significant
providing access to information help registering property indicator set and changes are made to the legislation or a
desks act as a strategic educational tool have a better score in the quality of land new system is implemented, registries in
for the public; they allow citizens to have administration index.20 46% of economies communicate those

FIGURE 3.5  Most OECD high-income economies provide registry training to entrepreneurs

Share of economies (%)


100
90
80
70
60
50
40
30
20
10
0
OECD high Europe & East Asia & Sub-Saharan Latin America & Middle East & South Asia
income Central Asia Pacific Africa Caribbean North Africa

Training No training

Source: Doing Business database.


38 DOING BUSINESS 2019

FIGURE 3.6  Starting a business and transferring property tend to be faster when registry changes are introduced through
dissemination campaigns
Average time to start a business Average time to transfer property
(days) (days)
60 60

50 50

40 40

30 30

20 20

10 10

0 0
Dissemination campaigns at the business registry Dissemination campaigns at the land registry

Used Not used

Source: Doing Business database.


Note: For the business registry, this relationship is significant at the 1% level after controlling for income per capita. For the land registry, this relationship is significant at the 5%
level after controlling for income per capita.

changes to the public through a dissemi- -records-management-and-information


-systems-community-of-learning-exchange#1.
nation campaign; 61% rely most heavily NOTES 9. The share of economies (as measured by
on television and radio. this case study) that hold regular training
This case study was written by Cyriane Coste, Marie programs for land registry officials is as
Lily Delion, Fatima Hewaidi, Frédéric Meunier, Albert follows: OECD high income (45%); East Asia
When citizens are made aware of the Nogues i Comas, Nadia Novik, Nathalie Reyes, Erick and the Pacific (40%); South Asia (38%);
changes implemented at the business Tjong and Yuriy Valentinovich Avramov. Europe and Central Asia (32%); Middle East
and land registries, they may be more 1. For more information, see the registries and North Africa (32%); Latin America and
training section of the website of the the Caribbean (29%); and Sub-Saharan Africa
likely to assert their rights with confi- (24%).
Association of Alberta Registry Agents
dence. Doing Business data show that it (AARA) at http://www.aaratraining.com 10. Valerio, Parton and Robb 2014.
takes 13 days less on average to start a /index.aspx?tabid=1. 11. Valerio, Parton and Robb 2014.
2. Fourie 1998. 12. Valerio, Parton and Robb 2014.
business and 19 days less on average to 13. Dana 2001.
3. The share of economies (as measured by
transfer a property when a dissemina- this case study) with a legal requirement 14. Cravo and Piza 2016.
tion campaign is used to communicate for training is as follows: Europe and Central 15. Bruhn 2011.
Asia (59%); East Asia and the Pacific (28%); 16. For more information on Australia’s New
changes to the public (figure 3.6). Enterprise Incentive Scheme, see the website
OECD high income (27%); Latin America
and the Caribbean (16%); Sub-Saharan Africa of the Department of Jobs and Small Business
(16%); South Asia (13%); and Middle East and at https://www.jobs.gov.au/self-employment
-new-enterprise-incentive-scheme-neis.
CONCLUSION North Africa (11%).
17. Valerio, Parton and Robb 2014.
4. For more information, see the website of the
Asociación Profesional de Registradores at 18. Le Sahel. 2014. “Signature de conventions
Training can be important for ensuring http://www.apregistradores.com/. de financement entre le PRODEC, la CCIAN
5. UNECE 1996. et l’ANPE: près de 404 millions de FCFA
the quality of business and land regis- pour soutenir la formation professionnelle et
6. Williamson 2000.
tries. Data collected for Doing Business 7. FAO 2017. l’insertion économique des jeunes.” January
2019 suggest that training initiatives are 8. For more information on the World Bank’s Land 30. http://news.aniamey.com/h/11947.html.
Registration and Cadastre Modernization Project 19. This relationship is significant at the 1% level
beneficial to both registry officers and after controlling for income per capita.
in Turkey, see http://documentsworldbank.org
entrepreneurs. Access to training for /curated/en/774231526581694132/pdf 20. This relationship is significant at the 1% level
registry officials and the public can be /Disclosable-Version-of-the-ISR-Turkey-Land after controlling for income per capita.

provided through a variety of channels. -Registration-and-Cadastre-Modernization


-Project-P106284-Sequence-No-21.pdf.
Workshops, learning programs, help Additional information on the Workshop on
desks, media broadcasts and awareness Land Records Management and Information
campaigns can improve the efficiency of Systems:Community of Learning Exchange can
be found at http://www.worldbank.org/en
business and land registries and create a /events/2017/06/12/workshop-on-land
well-informed public.

You might also like