Government delivers on reforms to support private sector growth
Minister of State and of the Presidency of the Council of Ministers and
Official Spokesperson for the Government of Timor-Leste
Dili, April 7th, 2017
Government delivers on reforms to support private sector growth
The approval of the Commercial Companies Law by National Parliament on the 27th of March marks a significant step in the Government’s delivery of a package of legislation to support private sector growth and foster economic diversification in Timor-Leste. This law updated legislation regarding the operation of commercial companies, removing elements that were outdated and introducing new measures focused on facilitating growth. The law sees the simplification of processes involved in establishing and managing small and medium sized enterprises, a streamlining of the corporate business legal regime, the introduction of mechanisms to improve the business image of Timor-Leste to foreign institutions and an improvement of consistency with the rest of Timor-Leste’s commercial legislation.
The Commercial Companies Law and other legislation already approved by the Government and awaiting the consideration of National Parliament are part of a package of reforms that the Government’s 2015-2017 Guide for the Economic Reform and Growth of Timor–Leste states are “to create a favourable environment for the implementation and cost effective operation of business activities”.
Legislation recently approved by the Council of Ministers includes the Arbitration, Mediation and Conciliation Law to give legal certainty and speed in resolving conflicts, the Draft Law on Legislative Authorization regarding business recovery and insolvency which will lead to a Recovery and Insolvency Code, the Decree-Law of the Commercial Register, which defines in a single document the rules applicable to the legalization of companies and the Decree-Law on the Services for Registration and Verification of Entrepreneurs (SERVE) clarifying SERVE’s legal nature as a public institute exclusively providing commercial registration services and other services necessary to promote an optimal environment for business and investment.
Priority areas that have received the attention of the Sixth Constitutional Government are the Regulation of Land and Property, Development of Economic Infrastructure, Labour Regulation and Workforce Development, Reform of the Business Environment, Tax Reform, Reform of the System of Private Investment and the Reform and Development of the Private Sector.
Spokesperson, Minister of State Agio Pereira, noted “The Government continues the rigorous implementation of its reform program designed to accelerate economic development through facilitating an increase in private investment, encouraging the provision of opportunities for sustainable employment and promoting the diversification of our economy.”ENDS
