Business leaders have welcomed new measures that promise to dramatically reduce red tape in the issuing and cancelling of trading licences.

One of the biggest blows to bureaucracy and red tape in many years

The measures, which come into force on November 1, were drawn up after extensive consultation with entrepreneurs and business organisations.

They form part of the Government’s efforts to make life easier and simpler for small businesses, according to Small Businesses Minister Jason Azzopardi.

GRTU president Paul Abela said businesses surely stood to gain from effective measures that curbed bureaucracy.

“This is one hurdle less which businessmen have to face. Any time saved helps and this is eliminating a phase in the process that wasted time,” he said. Dr Azzopardi explained that as from next month, business owners will no longer need to file an application with the Trade Department and face a lot of bureaucracy to start operating a business. Instead, upon obtaining a permit from the Malta Environment and Planning Authority, business owners will only have to notify the Trade Department that they are about to start a new commercial activity – as long as the business is not related to health or food. In the latter cases health regulations and permits came into play.

Businessmen have up to 30 days to file their notification and they only need to submit the number of the planning authority permit. It is estimated that about 80 per cent of new commercial activities will benefit from this simplification.

At present, to start a business entrepreneurs have to submit their application and then a certified copy of their outlet’s development permit and a copy of the floor plan certified by an architect.

According to Dr Azzopardi, the process can take weeks, if not months.

“This measure alone is estimated to save business owners at least six months,” he said.

Other measures include reductions in the cost of several licenses. The licence paid on commercial premises will no longer be calculated on the amount of rent paid.

It will start being worked out on the footprint of the premises and will be capped at €1,000, down from the previous minimum licence of €1,164.

The third and final issue to be tackled is the cancellation of trading licences, which is not automatic.

Payment of arrears is currently owed up to the cancellation date, even if the business had shut down years earlier.

Dr Azzopardi said that as from next month, the Commerce Department can automatically cancel licences which have not been paid for four consecutive years, and the process to cancel licences will be facilitated.

Moreover, licence fees will only be owed up to the time the relevant commercial activity was concluded, and not until the licence is cancelled.

“This is a Government that is trying to make the life of businessmen easier by reducing red tape,” Dr Azzopardi said, adding that this was “one of the biggest blows to bureaucracy and red tape in many years”.

He recalled how the Government earlier this year started Business First, through which 20 government departments offer 54 services under one roof.