This paper examines the establishment of business activity in this context. Whilst giving a practical guide to the structure and functioning of companies it analyses the extent to which legislative reform has closed the gap with Western economies in terms of the rights, obligations and benefits of ownership. To this extent it recognises the difference between the letter of the law and its application. The failure to approve and implement the regulatory mechanisms envisaged by new legislative acts perpetuates administrative barriers and high transaction costs. An understanding of this environment and the extent to which it is changing is of crucial importance to any potential investor.