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 1. 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” Plaintiff (shareholder) Related party transaction Court Disclosure of information on the Concerned person deal Concerned person Chairman of the Management Board/ Board of Directors Recognizing the transaction to be invalid Public and/or shareholders Published statements Board of Directors Related party transaction Damage to JSC Plaintiff (shareholder) Direct / indirect claim Court

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” Data on: Individuals Legal entities Data: Positive Negative Credit information from: 1. Retailers 2. Trade creditors 3. Providers of utility services 4. Financial institutions Credit history: more than 2-year period Data on credit: 1% of income 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”

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Placing a deposit in a bank Notarization of constituent documents Verification of the legal entity’s Registration with the Ministry of Justice Registration with the Tax Office

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Registration with the Social Fund Receiving a permit for the seal and the stamp , Opening a bank account

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

“Guillotine” Principle

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 RIA Ministries and agencies

Working groups

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:

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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 State Controlling Body (AB) Consists of:

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MEDT

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Mass media

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Business associations inspection Entrepreneur ring Public Relations Office of the MEDT Mobile team «BELL» YES visit Establishing legality of the inspection Explanation of the Law on Inspections NO Identification of violations Reporting in mass media Taking actions

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

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Adoption of a new version of the Tax Code

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Continuing reforms for reducing bureaucratic barriers when obtaining permissive documents for construction

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Reduction of procedures for liquidation of enterprises

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Simplification of procedures to acquire the rights to real estate objects

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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)