Simplified Corporations


Incorporation of a business is complex, time-consuming, and costly in many countries throughout the region, largely because of outdated laws and antiquated procedures. To address this, the Model Law on the Simplified Corporation offers a modernized and simplified corporate structure without such complexity and its associated costs. While this enhanced efficiency will improve competitiveness for businesses of any size, extending the possibility of affordable incorporation will be of particular benefit to many small- and medium-sized enterprises (MSMEs), particularly those that operate in the informal sector.

Simplified incorporation serves as a useful first step in the process of business registration. This will encourage formalization of many MSMEs, which, in turn, will improve their likelihood of obtaining access to formal (and affordable) credit.