In response to issues arising from the revocation of the Business License Act in 2020, the Ministry of Local Government is actively working to streamline the business licensing process.

The move to eliminate the Act aims to reduce bureaucracy and enhance the ease of doing business; however, deficiencies in the licensing process emerged, prompting a re-evaluation.

Minister for Local Government, Maciu Nalumisa, highlights the challenges faced by small and medium-sized businesses before the revocation.

Nalumisa says, according to a World Bank report, businesses in the country took an average of 40 days to obtain a license, incurring costs of around $1,600.

The process involved approvals from multiple regulatory agencies, leading to delays and inconsistencies.

The revocation resulted in significant cost savings of nearly $3 million in compliance costs, as per a 2022 survey by the World Bank.

However, Nalumisa acknowledges that the main issue lies not in the absence of licenses but in the lack of enforcement.

“Countries like New Zealand, Georgia, and Singapore serve as models for not requiring business licenses, but we cannot overlook the robust regulatory frameworks and efficient enforcement mechanisms these countries have in place.”

To address this, the Ministry is actively engaging in collaborative initiatives, including the establishment of Memoranda of Understanding (MoUs) between councils and key entities like registered companies and Fiji Revenue and Customs Services.

These partnerships aim to facilitate information exchange and provide councils with a comprehensive overview of registered businesses.

Nalumisa reiterated his commitment to fostering a business-friendly environment while ensuring regulatory compliance in Fiji.

The legislative reviews and collaborative measures outlined are part of an ongoing effort to create a conducive business landscape aligned with legal frameworks.

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