Bhutan ranks 75 in ease of do­ing busi­ness

Bhutan Times - - Front Page - Sonam Pen­jor

The coun­try ranked 75th in ease of do­ing busi­ness com­pared to 190 economies and se­lected ci­ties at the sub- na­tional and re­gional level, ac­cord­ing to the World Bank’s ease of do­ing busi­ness re­port 2018.

While, the do­ing busi­ness project was launched in 2002, it looks at do­mes­tic small and medium- size com­pa­nies and mea­sures the reg­u­la­tions ap­ply­ing to them through their life cy­cle.

Do­ing Busi­ness cap­tures sev­eral im­por­tant di­men­sions of the reg­u­la­tory en­vi­ron­ment as it ap­plies to lo­cal firms. It pro­vides quan­ti­ta­tive in­di­ca­tors on reg­u­la­tion for start­ing a busi­ness, dealing with con­struc­tion per­mits, get­ting elec­tric­ity, reg­is­ter­ing prop­erty, get­ting credit, pro­tect­ing mi­nor­ity in­vestors, pay­ing taxes, trad­ing across bor­ders, en­forc­ing con­tracts and re­solv­ing in­sol­vency. Do­ing Busi­ness also mea­sures fea­tures of la­bor mar­ket reg­u­la­tion.

The World Bank’s ease of do­ing busi­ness re­port 2018 stated that to start a busi­ness, for en­trepreneurs in economies in South Asia ( SA), Bhutan ranked 88 among the 190 coun­tries.

Dealing with con­struc­tion per­mits, Bhutan ranked 82 and to ma­te­ri­al­ize the per­mits, Bhutan con­sume about 150 days.

The re­port stated that this would re­quired time and cost to build a ware­house- in­clud­ing ob­tain­ing nec­es­sary li­censes and per­mits, sub­mit­ting all re­quired no­ti­fi­ca­tions, re­quest­ing and re­ceiv­ing all nec­es­sary in­spec­tions and ob­tain­ing util­ity con­nec­tions.

In ad­di­tion, dealing with con­struc­tion per­mits in­di­ca­tor mea­sures the build­ing qual­ity con­trol in­dex, eval­u­at­ing the qual­ity of build­ing reg­u­la­tions, the strength of qual­ity con­trol and safety mech­a­nisms, li­a­bil­ity and in­sur­ance regimes, and pro­fes­sional cer­ti­fi­ca­tion re­quire­ments.

To ob­tain a per­ma­nent elec­tric­ity con­nec­tion for a newly con­structed ware­house, Bhutan ranked 56. For this 61 days are con­sumed and four pro­ce­dures are used that in­cludes sub­mit­ting all rel­e­vant doc­u­ments and ob­tain­ing all nec­es­sary clear­ances and per­mits, com­plet­ing all re­quired no­ti­fi­ca­tions and re­ceiv­ing all nec­es­sary in­spec­tions, ob­tain­ing ex­ter­nal in­stal­la­tion works and pos­si­bly pur­chas­ing ma­te­rial for th­ese works, con­clud­ing any nec­es­sary sup­ply con­tract and ob­tain­ing fi­nal sup­ply, stated the re­port.

Due to some re­forms, Bhutan made get­ting elec­tric­ity eas­ier by speed­ing up the process

for ob­tain­ing a new con­nec­tion

In terms of economies in South Asia ( SA) rank on the ease of reg­is­ter­ing prop­erty, Bhutan ranked 56. To get this, the coun­try uses three pro­ce­dures and con­sumed 77 days.

Whereas, in terms of ease of get­ting credit, Bhutan ranked 77 and In­dia ranked 29. The re­port states that Bhutan im­proved ac­cess to credit in­for­ma­tion through new reg­u­la­tions gov­ern­ing the li­cens­ing and func­tion­ing of the credit bureau and guar­an­tee­ing bor­row­ers’ right to ac­cess their data.

How­ever, ease of pro­tect­ing mi­nor­ity in­vestors, Bhutan ranked 124; a higher rank­ing does in­di­cate that an econ­omy’s reg­u­la­tions over stronger in­vestor pro­tec­tions against self- dealing in the ar­eas mea­sured. Bhutan how­ever, ranked 17 in ease of pay­ing taxes and rank 26 on the ease of trad­ing across bor­ders.

Whereas, ease of en­forc­ing con­tracts, Bhutan ranked 25 and had taken 225 days to en­force a con­tract in the coun­try. The re­port stated that Bhutan made en­forc­ing con­tracts eas­ier by cre­at­ing a ded­i­cated bench to re­solve com­mer­cial cases. For the ease of re­solv­ing in­sol­vency, Bhutan ranked 168.

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