Brief

Helping Firms Realize the Benefits of (Partial) Formalization

Show simple item record

collection.link.175
https://openknowledge.worldbank.org/handle/10986/9406
collection.name.175
Finance & PSD Impact
dc.contributor.author
Campos, Francisco
dc.contributor.author
Goldstein, Markus
dc.contributor.author
McKenzie, David
dc.date.accessioned
2018-10-23T18:09:29Z
dc.date.available
2018-10-23T18:09:29Z
dc.date.issued
2018-10
dc.date.lastModified
2021-05-25T10:54:43Z
dc.description.abstract
Developing country governments seek to reduce pervasive informality of firms for multiple reasons: increasing the tax base, helping firms access formal markets and grow, increasing rule of law, and as a means of obtaining data that can be used for other government functions. The most common approach towards achieving these aims has been to make it easier for firms to formalize, most notably by setting up one-stop shops where firms can register as a legal entity and for tax purposes all at once. But past experiments have showed very few informal firms choose to formalize even after such reforms, and that many of those who do fail to see any benefits on financial access or firm growth. An alternative approach, used in much of Africa, is to separate the process of business registration from tax registration. Getting firms to register legally may help governments reduce informality and achieve some of the aims above, even if it does not raise more taxes. But the question is then whether firms are interested in even this more limited form of formalization, and whether they see any benefits from using it.
en
dc.identifier
http://documents.worldbank.org/curated/en/511561539287441679/Helping-Firms-Realize-the-Benefits-of-Partial-Formalization
dc.identifier.uri
http://hdl.handle.net/10986/30590
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.relation.ispartofseries
Finance & PSD Impact;No. 52
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
INFORMALITY
dc.subject
TAX REGISTRATION
dc.subject
ACCESS TO FINANCE
dc.subject
BUSINESS ENVIRONMENT
dc.subject
BUSINESS REGISTRATION
dc.title
Helping Firms Realize the Benefits of (Partial) Formalization
en
dc.type
Brief
en
okr.date.disclosure
2018-10-11
okr.doctype
Publications & Research
okr.doctype
Publications & Research :: Brief
okr.docurl
http://documents.worldbank.org/curated/en/511561539287441679/Helping-Firms-Realize-the-Benefits-of-Partial-Formalization
okr.googlescholar.linkpresent
yes
okr.identifier.doi
10.1596/30590
okr.identifier.externaldocumentum
090224b086430990_1_0
okr.identifier.internaldocumentum
30491659
okr.identifier.report
130756
okr.imported
true
en
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/511561539287441679/pdf/130756-Newsletter-IN.pdf
en
okr.region.administrative
Africa
okr.region.country
Malawi
okr.topic
Finance and Financial Sector Development :: Access to Finance
okr.topic
Private Sector Development :: Enterprise Development & Reform
okr.topic
Private Sector Development :: Legal Regulation and Business Environment
okr.topic
Private Sector Development :: Small and Medium Size Enterprises
okr.topic
Public Sector Development :: Tax Administration
okr.unit
DECRG-FP

Show simple item record



This item appears in the following Collection(s)