Law on Development of Small Enterprises (Law No. 141 of 2004)
(enacted in 2004)
The Law on Development of Small Enterprises (Law No. 141 of 2004) applies to small and very small enterprises. The Social Fund for Development (SFD) is the competent authority for developing these enterprises. The Executive Regulations accompanying this law determine the SFD system of operations and its fulfillment of duties.
Relevant provisions of the law include:
- The definition of small and very small enterprises;
- The maximum amount of paid-up capital;
- The activities of the SFD;
- The activities of the units that the SFD will establish for the service of small enterprises, which include:
- Entering into contracts with the owners of firms;
- Issuing temporary licenses to owners;
- Inspecting the firms, etc;
- The funding of small and very small firms, identifying:
- Possible sources of funds;
- Opportunities to be included in the State’s annual budget;
- A system for the guarantee of credit risks;
- Incentives and facilitations, such as:
- Allocation of land;
- The provision of public utilities;
- Services by experts in the areas of investment opportunities, feasibility studies, purchase of machinery, risk assessment, etc; and
- Providing the know-how about the latest developments in production and marketing techniques.
The law concludes by discussing licenses, suspension of administrative activities, complaints, etc.