Online Business Licensing

Brunei is known for having a very lengthy set of procedures to go through when setting-up a business. According to doingbusiness.org, an entrepreneur needs to go through 18 procedures or departments before they can get their business license. This would take a minimum of 124 days before they could start their business. The entrepreneur needs to get approval from each department before they can proceed to the next department. They have to go back and forth between departments to check the status of their application.

Below is the screenshot showing the 18 procedures needed to start a business in Brunei.

However, countries such as Singapore, have set up a one-step solution for entrepreneurs applying for business licenses online. It would only take up to 3 days and 3 steps before they can start their business. Not much time is wasted. The entrepreneur can easily check the status of their application online. An email notification will be sent to the entrepreneur once their application is either approved or rejected. They could even make their payment for the license online once their application is approved.

This screenshot shows the 3 steps for an entrepreneur in Singapore

The screenshot below is of Singapore's official online website that entrepreneurs use to submit their application online to relevant government agencies. Other than making a new application, existing applicants can retrieve drafts, check the status of their application, make payments online, renew their business licence and also terminate their existing business licence.

Australia is also providing a similar service to entrepreneurs that wish to set up business in Australia. They provide guidelines and application forms for any applicant that wishes to apply. It only takes 2 days for them to complete their business registration application.

The 2 steps to go through for an Australian entrepreneur are shown below

This screenshot shows the website that provides application forms for entrepreneurs to fill in and submit to relevant government agencies.

Brunei's government should come up with a e-government service similar to Singapore's and Australia's. If this online business licensing service were to be implemented, the number of steps to go through would be reduced and applications would be easier to make. With such a service, the steps to follow would be: the entrepreneur creates an account (step 1), selects the type of service they would like to apply for (step 2), chooses the type of business activity (step 3), enter general information (step 4), fill in the licence form (step 5), and finally send out their application (step 6). An email will be received when the application is send out successfully. The steps are greatly reduced compared to the 18 steps currently in place in Brunei. In addition, the application process is centralised online. As each department approves the application, an e-mail would be sent to notify the applicant. If the applicant wishes to know the status of the application they would click on "status of application" to check whether his application has been approved, rejected or still pending by a department. If one of the departments rejects the application an email will be sent to the applicant for amendment. If the department wishes to verify the application with support documents the applicant can hand in the documents to relevant government agencies by email or by post. Once again an email will be sent by the relevant government agencies to acknowledge the receipt of the documents. Once the application is approved, they could use the online payment system to pay for the license and an e-receipt will be given for verification purposes. The applicant will need to go to the licensing department to collect their licence upon showing the e-receipt. If the applicant has any queries about the application process they can use the contact details to make their queries through telephone or email.

The service suggested above is similar to the services of Singapore and Australia, and would greatly reduce the time needed to make an application as well as making the entire system electronic and paperless. This online business licensing service will improve the country’s economy by simplifying business license approval and reduce illegal business activities of entrepreneurs forced to run their business without a business license. With just one application service sent to all relevant government departments, it reduces the hassle of travelling around Brunei to get things done. Entrepreneurs will be able to track their status of application online without needing to constantly go to the relevant government agencies in order to make the query. It will be more convenient for both the applicant and government to get things done as soon as possible. Shortening the time frame for an application to be approved would be beneficial to entrepreneurs as they legally have to rent or own their premises for the entire 124 days of the current application system but be unable to carry out any business activities. In the long run this system will create a paperless society, increase the number of businesses in the country, which reduces dependence on the oil and gas industry and also diversifies the economy. In addition, it will create a hassle free online application service for any would-be entrepreneurs.

References:
Brunei
http://www.doingbusiness.org/Exploretopics/startingbusiness/Details.aspx?economyid=29 Date accessed: 1st april 2010
http://www.doingbusiness.org/ExploreEconomies/?economyid=29 Date accessed: 1st april 2010

Singapore
http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=167 Date accessed: 2nd april 2010
http://www.doingbusiness.org/ExploreEconomies/?economyid=167 Date accessed: 2nd april 2010
https://licences.business.gov.sg/SHINE/sop/WebPageHandler?p=OASIS&pn=SelectLicences&ss=Start Date accessed: 2nd april 2010

Australia
http://www.doingbusiness.org/ExploreEconomies/?economyid=12 Date accessed: 4th april 2010
http://www.blis.tas.gov.au/BLIS/prod/info Date accessed: 4th april 2010
http://www.abr.business.gov.au/%28lcqk0oi14flj1s553aa03f55%29/main.aspx Date accessed: 4th april 2010
http://www.business.gov.au/Pages/default.aspx Date accessed: 4th april 2010
http://www.abr.gov.au/ABR_BC/ Date accessed: 4th april 2010