His Mount Vema Majesty’s Revenue Services
Mount Vema Business Licenses are permits issued by His Mount Vema Majesty's Revenue Services that allow individuals or companies to conduct business within its jurisdiction (within the Vema Seamount Territory). It is the authorization to start a business. Applicants must note that some districts require multiple licenses that are issued by multiple government departments and agencies, as there are often many licenses, registrations and certifications required to conduct a business in a single District.
Typically, a company's business activity and physical location (address) determines which licenses are required to operate lawfully. Other determining factors may include the number of employees and the form of business ownership, such as sole proprietor or corporation. Government agencies can fine or close a business operating without the required business licenses.
Licensing and business registration requirements
All individuals and companies doing business in Mount Vema must obtain a Basic Business License and register their business. Some types of businesses require additional certification or permits beyond the Basic Business License and registration. The Office of Fair Trade ensures the health, safety, and economic welfare of District residents through licensing, inspection, compliance, and enforcement programs. In addition, the Office issues certain professional licenses, to regulate public space, and control land use through zoning.
Mount Vema requires a "Clearance Self-Certification" from most applicants, which is an affidavit stating that the applicant does not owe more than ₲500 golles to the District or to the State. Tour Guides must submit a Physician's Certificate. Fees for businesses licenses vary. For example the fee for a Special Event license such as a marathon is ₲1,000. The license for a movie theater costs ₲5,000 per year, for a grocery store ₲2,000 per year, for a beauty shop ₲800 per year. Education, healthcare, physicians and other professionals also require occupational licenses, to meet quota limits on the number of people who can enter a certain profession.
Economic barrier to entry - Policy
There are some economic barriers to entry, which is a cost that must be incurred by a new entrant into the Mount Vema Market when incumbents do not have or have not had to incur.
- Distributor agreements - Exclusive agreements must be made with licensed distributors or licensed retailers.
- Intellectual property - Potential entrant require access to equally efficient production technology as the one already in use in order to freely enter the market. Trademarks, Servicemarks and Patents owners have the legal right to stop other firms producing a product for a given period of time, and so restrict entry into the market.
- Restrictive practices - Agreements are required such as (landing slots) air transport agreements.
- Supplier agreements - Exclusive agreements with key links in the supply chain are required.
- Tariffs - Mount Vema taxes all goods entering into its market, and especially those which can be produced domestically.