Armenia : Institutional Modernization to Improve the Business Environment

Public sector management / Economic affairs management

In its present state, the Armenian business registration system is totally manual and is characterized by outdated procedures. since local branches are not linked to the central body, a branch cannot deal with a request for information on a legal entity outside its jurisdiction and must refer the request to head office. The system does not contain the register information as prescribed by law and in line with standard Duropean Union practices, and can therefore become the foundation for an effective and efficient online electronic registry. The existing business registration processes suffer from all the weaknesses of a manual paper-based system, including cumbersome procedures for starting a business, and weak reporting. The SRA has a website which gives uselful information on laws and legal requirements. However, it does not provide services such as downloadable and online forms, register searches, etc. The TA will support the introduction of an online business registry and will make the process of business registration efficient by reducing the time taken to register companies as well as improving access to, and transparency of, informaiton about companies. An organization and business redesign study will be conducted to seek the most appropriate technological model for the online business registry in the SRA. This study would examine the need for legislative and other changes to operationalize SRA's new business model. As part of the reforms, the government also plans to introduce an electronic one-stop business support facility. The TA will provide legal assistance to the Ministry of Justice to draft any required changes in laws and rules for implementing these reforms. The TA will also support any reorganization of business processes of the SRA that may be necessary following setting up of an electronic business registry. The TA will also fund procurement of equipment and software required for setting up the electronic business registry. This would include networked computers with fault-tolerant server hardware (including backup servers aimed at ensuring adequate data safeguards and disaster recovery procedures), broadband internet access, and facilities for scanning and converting existing paper records into a computer-readable form. Technical requirements and specifications for the new information technology system will be drawn up by the consultant.The impact of the TA will be an improved business climate. The outcome will be an efficient and transparent online business registry that will in turn meet two goals: (i) reduce the business registration time at the SRA from 7 days to 3 days; and (ii) improve information dissemination with respect to registered legal entities, which will help attract investments.

Improved business climate

Efficient electronic business registration system developed and pilot project implemented

An organization and business redesign study identifies appropriate technological model for

SRA and required improvements in SRA business processes and automated business registry developed and pilot tested

Legal and regulatory frameworks/amendments for implementing action plan drafted and

submitted to the government

IT support unit created in SRA, with suitable equipment and facilities

SRA staff manage the new automated system effectively

Completed.

Completed.

Completed.

Completed. IT team in SRA maintains the system.

Extensive training completed.

Extensive training completed.

On the request of the government, the TA was extended to provide support for a public awareness campaign documenting and showcasing the reform process. A video is being produced for use by the government. Parts of this video will also be used by ADB (DER) to document the successful reforms in Armenia.