Delegation of public services to a private entity the colombian experience - luz rincon


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Delegation of public services to a private entity the colombian experience - luz rincon

  1. 1. Delegation of Public Service to a Private Entity - The Colombian Experience Mrs. Luz Marina Rincón Martínez CRF 11th edition | Rio de Janeiro | Brazil March 2014
  2. 2. Colombian Case: More than an outsourcing a delegation by law. Registration with chambers of commerce
  3. 3. “Most Business Registers are run by The Government and are centralized” - European Commerce Registers’ FORUM Report 2013
  4. 4. *European Commerce Registers’ FORUM Report 2013 - Figure 3 Who Operates the Business Registry
  5. 5. The court – based system of registration was in place before • Faced several problems and was ineffective • Was necessary to remove responsibility for funding registration from the state budget • Since 1890 the law gave the chambers of commerce the status of trade and consulting bodies in trade and industry issues, to represent the general interest of the commercial activity before the government
  6. 6. The Colombian Constitution provides that individual may carry out administrative functions and also determine the legal regime applicable to individuals who performs public functions and regulates the exercise of their functions
  7. 7. Law 28 of 1931 transfer responsibility of the mercantile register to the Chambers of Commerce They have the ultimate administrative responsibility for: • Delivery of the registration services • Including administrative procedures associated with starting a business • Contact with customer • Full authority to run the Mercantile Registry
  8. 8. Nature of Chamber of Commerce in Colombia • Private, associative nature and nonprofit created by law • Legal institutions with juridical capacity, with statutory functions an entrusted with official functions including registries
  9. 9. Nature of Chamber of Commerce in Colombia • Integrated by traders registered in the commercial register • Apart from the public service performed, their organization, management, nature of their employees and the existence of statutes governing them show their corporate, associative and private nature
  10. 10. • 57 chambers throughout the country each one has its own jurisdiction, responsible for the maintenance of the Mercantile Register (MR) • Since 2005 a national data base called RUES (Unique Business and Social Registry - Registro Único Empresarial y Social) was set in place joining the 57 chambers • This private network provides free basic level Colombian companies information online via RUES Website – Decentralized but centralized
  11. 11. Decentralized but centralized • The RUES allows users of any jurisdiction to approach any chamber in the country to  acquire a certificate,  register a new business  perform registry changes • The operating cost of RUES is funded by all the Chambers • Compensation costs system remunerates services rendered between Chambers
  12. 12. • Mandatory registration is determined by law - Diversity of business cases subject to register - 80/103 are related only to corporations • Registry operation and compliance standards are regulated • Types of business association are defined by law Legal framework • Fees charged for registry services are regulated by Goverment
  13. 13. Legal framework • Surveillance and control is exercised through the Superintendence of Industry and Commerce (SIC) • The scope of examination includes to do legal checks in all of business cases • Claims may be filed firstly before the Chamber and appealed before the SIC • Further more Chambers of Commerce shall attest to the legality of the acts proposed for registration, if law requirements are not met the registrar can deny registration
  14. 14. Registry • Public by law and open to all potential agents in the market • Interested persons may access the data base and consult all the information supporting a registry (bylaws, acts, historic information, etc.) • The legislation allows to market the information only when value is added • Basic Information available trough RUES website
  15. 15. Measures taken to prevent corporate identity theft via the registry A new regulation was recently establish 1. For companies who decide to enroll in the Fraud Preventive System (SIPREF), no acts or changes can be registered, without previously verifying that it comes from the right holder 2. For all companies: a. Identity of the acting person is validated online through biometric matching fingerprint, against the database of the National Civil Registry b. ID check against the National Civil Registry c. E-monitor services that notify register user about changes (email, sms, etc.)
  16. 16. Doing Business 2014 4th in Latin America Doing Business Report 2014
  17. 17. Starting a Business 3. Post-registration • Bank certificate • Tax Payer ID • Family compensation fund, Governmental learning service, Colombian family institute • Health coverage • Pension fund • Administrator of professional risk • Private pension fund • Severance fund 1. Pre-registration activities • Public Deed (Notary public - few) 2. Registration • Name verification • Pre-taxpayer ID • Registry of commerce
  18. 18. Starting a Business 15 days Registry of Commerce + "pre-taxpayer ID" Open a bank account Final tax payer ID number Family compensation fund, Governmental learning service, Colombian family institute Health coverage Pension fund Administrator of professional risk 1+2 1 1 10 6 1 - 3 1 Private pension fund1 Severance fund1 9 procedures
  19. 19. Registers managed Mercantile Bidders for Government Contracts Non-profit Institutions Foreign NGOs National Tourism Solidarity Economy - Cooperatives Gamming and Gambling Activities Oversight and Social Accountability Committees Security Interest
  20. 20. 20 A look at the Bogota Chamber of Commerce
  21. 21. 21 The Bogota Chamber of Commerce was established on October 6, 1878, as an entity representing the interests of businessmen and advisory body and government consultant 135 years old
  22. 22. Jurisdiction Bogota and 59 municipalities in Cundinamarca
  23. 23. Main financial figures Million US Dollars Equity 2011 2012 2013 360 409 480
  24. 24. Main financial figures Million US Dollars Revenues 2011 2012 2013 69 72 80
  25. 25. Higher Purpose 25 "We are allies to make your business dream come true, be sustainable, create shared value and have a prosperous Bogotá – Region with more and better businesses"
  26. 26. 13 Registry service offices 4 Entrepreneur centers 5 Community Attention Centers 1 Bogota Export program office Our Infrastructure 9
  27. 27. Documents are scanned File the documents in any branch Certificate attests mercantile information OK? Legal check by CCB lawyer Deny or changes are required Business case is Register or/and Identification number is assigned Registry Process Start
  28. 28. Processing time for incorporations and changes 15 days 8 labor hours vs
  29. 29. Business Service Center Characteristics • Promotes the creation and establishment of companies • Supports entrepreneurs, foreign investors and users • Simplify procedures Advantages • The process of companies formation was reduced to a single step Coverage • 21 Chambers of Commerce in Colombia ¿Why CAEs? • Procedures decrease • Costs reduction • Risk minimization • Quick and Formal activities start
  30. 30. Register Corporation, 40% Other Business, 60% Large, 2.17% Medium, 6.06% Small, 21.37% Microenterprise, 70.40% Micro 97,77%
  31. 31. Companies One man company 27.416 Regular general partnership 1.263 Limited partnership 13.655 Joint-stock limited companies 1.407 Limited liability companies 225.453 Corporation 18.768 Simplified Stock Corporation 114.362 Other business Persons holding professional trade 515.649 Commercial establishment and branches 436.704 Number and types of companies in CCB mercantile registry
  32. 32. It is a for profit legal entity by shares, the nature of which will always be commercial • May be formed by one or more persons or legal entities • Shareholders will only be responsible for providing the capital contribution promised to the SSC • Shareholders will not be held liable for any obligations incurred by the SSC • Upon the filling of the formation documents before the mercantile registry, de SSC will form a legal entity separate and distinct form its shareholders Simplified Stock Corporation – SSC • Shares issue by the SSC shall not be register by the stocking exchange
  33. 33. 4,947 14,092 32,129 56,447 80,656 106,034 114,632 2007 2008 2009 2010 2011 2012 2013 Simplified Stock Corporation – SSC 96% Of total companies incorporated
  34. 34. Mercantile registry volume transaction perform 2013 Registry services # of activities Participation Mercantile 5.709.416 94,9% New business 72.761 1,2% Commercial establishments 41.785 0,7% Renewal of corporation 253.633 4,2% Renewal of other business 160.462 2,7% Renewal of commercial establishments 229.524 3,8% Changes of information 318.424 5,3% Certificates 4.632.827 77,0% Bidders for Government Contracts 20.458 0,3% Non-profit entities 284.662 4,7% Total 6.014.536 100,0%
  35. 35. • Registry renewal • Online certificates • Registry of – Mercantile – Bidders for Government Contracts – Non-profit Entities – National Tourism – Foreign, private, non-profit entities – Solidarity Economy – Natural and legal persons engaged in the activity of gaming and gambling • Public registration of citizens oversight organizations • Contact us • FAQ • Chat • Virtual Call • Comments, complaints and compliments • Virtual Assistants • Tutorials • Names of companies active in the commercial register (homonymy) • Sorter goods and services • Economic Activities (ISIC Code and Treasury) • Make before Superintendence of Industry and Commerce • Registry Information • Databases and business information online • Procedures and formalities before the CCB • Corporate Law Library and Registry E-services Transactions Consultation Information E-Signature Documents signed online with legally compliant e-signature software are as valid and binding as traditional pen-and-paper documents.
  36. 36. • We accept all kind of online payments credit cards, debit cards, direct transfer (PSE) • When the customer does not want to pay online the system can generates electronic bills to be printed and pay either in a bank, or any CCB offices • Agreements with the financial system allows us to collect payments in 1,041 bank offices and 137 non-banking correspondents • During 2013 64% of the registry income was collected through different channels than the CCB offices. Payments
  37. 37. * Ranking according to Our Main tool for contact and interaction with our users WEBsite Global Ranking: 62,725* Colombian Ranking: 261* Global Chamber of Commerce Ranking: 3* 16 millions unique hits on 2013 • Chat • FAQ´s • Complaints, suggestions and compliments • Virtual forums • Comments on posts • B-learning courses • Videos • Multimedia aids and tutorials
  38. 38. 16.493 Fans 36.939 Followers + 10.309 Views + 500 Users 5.855 photos 3rd* one between Chambers of Commerce 2nd* one between Chambers of Commerce * Ranking according to Social Networks Linked In You tube
  39. 39. We manage our business with excellence We use Project Management Institute (PMI) standards to support the implementation of key strategic programs Risk management – COSO ERM Risk framework Certified ISO 9001:2008
  40. 40. Awards Iberoamerican Quality award One of the best 5 projects in corporative social responsability 2nd Social Innovation experience Colombian Quality in Management award 2009 201120082006 2007 2010 High technology 6th place between 100 companies in Colombia 2012 Colombia Online Award category "Big Business"
  41. 41. Conclusions Where Public Registrars don’t have the right ability to render services efficiently, Chambers of Commerce as in the Colombian case have prove to be a good alternative • Natural ally of business and companies • It´s non profit nature allows them to invest remaining operational balances in the business community • The private sector is willing to support their activity if services are rendered efficiently and at affordable prices • Facilitates interaction between the government and private sector in benefit of business sector
  42. 42. Thank you! Luz Marina Rincón
  43. 43. 43 A look at the Bogota Chamber of Commerce
  44. 44. Business Strengthening companies created with our support on 2013 4,346 “Formalized” business 13,978
  45. 45. Business Strengthening We made several trade shows with business expectations of USD$106.5 Million Funding support to 150 companies reach USD$5.5 Million
  46. 46. Business Strengthening We develop 3 commercial platforms for music and visual arts sectors
  47. 47. ADR – Alternative Dispute Resolution Arbitration 296 cases 7,511 cases Conciliation agreements with a level of 80% 60 companies Internal Business ADR agreements with a level of 89%
  48. 48. ADR – Alternative Dispute Resolution school conciliation agreements with a level of 95% 47,996 cases
  49. 49. CLUSTER Michael E.Porter
  50. 50. CLUSTER Michael E.Porter “geographical concentration of companies and institutions in the same business, with common and complementary activities”
  51. 51. CLUSTER Michael E.Porter “geographical concentration of companies and institutions in the same business, with common and complementary activities”
  52. 52. CLUSTER Cluster initiatives Michael E.Porter “geographical concentration of companies and institutions in the same business, with common and complementary activities”
  53. 53. CLUSTER Cluster initiatives • IT & Software • Business turism and events • Creative industries and content • Fashion & apparel • Footwear & leather goods • Jewelry and fashion • Graphic communication • Cosmetics Michael E.Porter “geographical concentration of companies and institutions in the same business, with common and complementary activities”
  54. 54. Public policies proposals Private-public articulation Knowledge management Business Enviroment
  55. 55. We create 6 subsidiaries …