formalsector
The formal sector refers to parts of an economy that operate within the legal and regulatory framework of a country. It includes registered businesses, government entities, and workers employed under formal contracts who pay taxes and are covered by social protection programs. Activities in the formal sector are typically measured and regulated by official statistics.
Characteristics include registration with authorities, formal accounting, adherence to labor laws, and eligibility for formal credit
The formal and informal sectors are used to describe two ends of a spectrum. The informal sector
Policy efforts aim to enlarge the formal sector by simplifying registration, reducing regulatory burden, and offering