Enterprise Formalization
The incidence of informal enterprises is high, particularly in countries where the informal economy provides a primary source of livelihood for people who cannot enter the formal economy. Informal enterprises are often characterized by low productivity and decent work deficits, they do not generate public revenues and they tend to engage in unfair competition with formal enterprises.
The ILO conducts research and provides advisory services to constituents to facilitate enterprise formalization, for example through appropriate and well-coordinated legislation, policies and compliance mechanisms. This is combined with direct measures to support enterprise formalization, such as business development services and measures that make business registration cheaper, easier and more attractive. Our work contributes to the SDGs of the 2030 Agenda, and builds on ILO Recommendation 204 concerning the Transition from the Informal to the Formal Economy, adopted by the ILC in 2015.
Latest news and publications
Insights into ILO Formalize Your Business in Côte d'Ivoire, The Gambia and Senegal
Charting a New Path: Stakeholders Validate Blueprint for Women's Entrepreneurship Empowerment in Nigeria
Key resources
Enterprise Formalization: An Introduction
Enterprise Formalization: Simplifying and facilitating business start-up and compliance
Enterprise Formalization: Tailored registration, tax and social security requirements for MSEs
Theory of Change: Enterprise formalization for decent work
R204 - Transition from the Informal to the Formal Economy Recommendation, 2015
A double transition: formalization and the shift to environmental sustainability with decent work
Our work
- ILO Product Offer on Enterprise Formalization
