Sin­ga­pore is the best coun­try for ‘do­ing busi­ness’

Financial Mirror (Cyprus) - - FRONT PAGE -

China, Togo and Viet­nam. How­ever, Cyprus still has a long way to go on this mat­ter.

Else­where, credit bu­reaus in Cyprus and the Kyr­gyz Repub­lic be­gan dis­tribut­ing both pos­i­tive and neg­a­tive credit in­for­ma­tion on bor­row­ers — and the one in Cyprus (Artemis) be­gan re­port­ing five years of credit his­tory on both bor­row­ers and guar­an­tors to banks and other fi­nan­cial in­sti­tu­tions.

Cyprus was among 24 economies im­prov­ing the most across three or more “Do­ing Busi­ness” top­ics in 2014/15. It fared well in get­ting elec­tric­ity, get­ting credit, pay­ing taxes, en­forc­ing con­tracts and re­solv­ing in­sol­vency.

The World Bank re­port said that “the util­ity in Cyprus [EAC] made get­ting elec­tric­ity eas­ier by re­duc­ing the time re­quired for ob­tain­ing a new con­nec­tion.

“Cyprus i mproved ac­cess to credit in­for­ma­tion by al­low­ing credit bu­reaus to col­lect and re­port pos­i­tive credit in­for­ma­tion and to re­port credit his­to­ries for both bor­row­ers and guar­an­tors.

“Cyprus made pay­ing taxes eas­ier for com­pa­nies by fa­cil­i­tat­ing on­line pay­ment of cor­po­rate in­come tax. At the same time, Cyprus raised the con­tri­bu­tion rate for so­cial in­sur­ance paid by em­ploy­ers, low­ered the tax brack­ets for the so­cial con­tri­bu­tion fund, raised the rate on in­ter­est in­come and in­creased the ve­hi­cle tax.

“Cyprus made en­forc­ing con­tracts eas­ier by in­tro­duc­ing a fast-track sim­pli­fied pro­ce­dure for claims worth less than EUR 3,000. Cyprus made re­solv­ing in­sol­vency eas­ier by in­tro­duc­ing a re­or­gan­i­sa­tion pro­ce­dure as well as pro­vi­sions to fa­cil­i­tate the con­tin­u­a­tion of the debtor’s busi­ness dur­ing in­sol­vency pro­ceed­ings and al­low cred­i­tors greater par­tic­i­pa­tion in im­por­tant de­ci­sions dur­ing the pro­ceed­ings.”

The re­port did not record and im­ped­i­ments or reg­u­la­tory ob­sta­cles in set­ting up or main­tain­ing a busi­ness.

* Cost of start­ing a busi­ness (as pct. of in­come): 0.6% * To­tal tax rate: 18.4% * In­come per capita: $51,150

De­spite mak­ing no sig­nif­i­cant re­forms, Sin­ga­pore is once again the best coun­try for busi­ness. It is no­table for its swift and trans­par­ent ju­di­cial sys­tem. The aver­age com­mer­cial dis­pute takes just 150 days to re­solve, the short­est turn­around world­wide. More­over, since early last year, lit­i­gants and lawyers have been able to file cases, ex­change doc­u­ments, sched­ule hear­ings, and hold con­fer­ences en­tirely on­line.

A stream­lined con­struc­tion process con­trib­utes to the city state’s favourable busi­ness. It takes only 26 days to get a con­struc­tion per­mit in Sin­ga­pore, the quick­est pro­ceed­ings of any coun­try. Ad­di­tional hur­dles to own­ing prop­erty are fairly low. Busi­ness own­ers are charged on aver­age just 0.3% of their prop­erty’s value in con­struc­tion-re­lated fees, one of the low­est such com­pli­ance costs in the world. Busi­ness own­ers also pay an ef­fec­tive tax rate of just 18.4%, one of the low­est rates world­wide.

* Cost of start­ing a busi­ness: 0.3% * To­tal tax rate: 34.3% * In­come per capita: $43,837

New Zealand is home to 4.5 mln peo­ple, and its econ­omy de­pends largely on agriculture, man­u­fac­tur­ing, and tourism. It has one of the best en­vi­ron­ments in the world for busi­ness and ranks high­est in the world in ease of start­ing a busi­ness, ob­tain­ing credit, reg­is­ter­ing prop­erty, and pro­tect­ing mi­nor­ity in­vestors. An en­tre­pre­neur can start a busi­ness in half a day, with no min­i­mum cap­i­tal re­quired. By con­trast, it takes five times as long to start a busi­ness in Aus­tralia.

With the ex­cep­tion of Sin­ga­pore, no other coun­try has more ideal con­di­tions for do­ing busi­ness. And con­di­tions con­tinue to im­prove. Since last year, reg­u­la­tors in New Zealand have im­proved pay­ment mon­i­tor­ing and con­fir­ma­tion pro­cesses, ul­ti­mately re­duc­ing the time it takes to es­tab­lish an elec­tric­ity con­nec­tion.

* Cost of start­ing a busi­ness: 0.2% * To­tal tax rate: 24.5% * In­come per capita: $61,310

Since June 2014, Den­mark has im­ple­mented an on­line plat­form to fa­cil­i­tate si­mul­ta­ne­ous busi­ness and tax reg­is­tra­tion for en­trepreneurs. Un­der the im­proved con­di­tions, it takes three days to start a busi­ness. Though the Scan­di­na­vian coun­try ranks 29th in the world for ease of start­ing a busi­ness, its han­dling of in­ter­na­tional trade is the most busi­ness friendly in the world. With no fees for doc­u­men­ta­tion or bor­der com­pli­ance for i mports and ex­ports, along with a doc­u­men­ta­tion time that can be mea­sured in min­utes, no na­tion makes it eas­ier, or cheaper, for busi­nesses to trade with other na­tions.

With con­di­tions so con­ducive to do­ing busi­ness, Den­mark’s peo­ple are rel­a­tively pros­per­ous and the na­tional econ­omy is grow­ing mod­estly, up 1.1% and 1.6% in the last two years, re­spec­tively.

* Cost of start­ing a busi­ness: 14.5% * To­tal tax rate: 33.2% * In­come per capita: $27,090

No coun­try in the world has bet­ter ac­cess to re­li­able elec­tric­ity than South Korea. It takes just 18 days for a typ­i­cal en­ter­prise to es­tab­lish a new con­nec­tion, tied for the fastest time in the world. For busi­nesses, loss of elec­tric­ity of­ten leads to a sig­nif­i­cant loss of rev­enue. Not only do busi­nesses in Seoul lose power very rarely, they also re­ceive com­pen­sa­tion for out­ages that last longer than five min­utes.

South Korean busi­nesses are also pro­tected by one of the most ef­fi­cient ju­di­cial sys­tems in the world. Court cases are filed and con­ducted en­tirely on­line, one of only a few na­tions where this is the case, while the typ­i­cal com­mer­cial dis­pute is re­solved in just 230 days. De­spite be­ing gen­er­ally con­ducive to busi­ness, South Korea has a com­par­a­tively high cost of en­trepreneur­ship. The aver­age cost of start­ing a busi­ness is 14.5% of the coun­try’s GNI per capita.

* Cost of start­ing a busi­ness: 0.1% * To­tal tax rate: 32.0% * In­come per capita: $42,690

Bu­reau­cratic and reg­u­la­tory con­di­tions are among the most busi­ness friendly in the world. The coun­try scores within the 75th per­centile in eight out of ten mea­sures of ease of do­ing busi­ness. En­trepreneurs have a sig­nif­i­cant ad­van­tage in the U.K. – with no cap­i­tal, an en­tre­pre­neur can start a busi­ness in un­der five days.

In par­tic­u­lar, the U.K. has im­proved its tax sys­tem in the past year, re­duced the cor­po­rate in­come tax rate and de­creased the con­tri­bu­tions to so­cial se­cu­rity that em­ploy­ers are re­quired to pay. Other changes were not as ben­e­fi­cial. Court fees as­so­ci­ated with en­forc­ing con­tracts went up in the U.K over that time.

* Cost of start­ing a busi­ness: 1.1% * To­tal tax rate: 43.9% * In­come per capita: $55,200

The United States is the largest econ­omy in the world and the sixth best for do­ing busi­ness. Other than New Zealand, no coun­try has a bet­ter credit frame­work. All Amer­i­can adults are cov­ered by a credit bureau and have some of the most ex­ten­sive le­gal rights in the world. The U.S. le­gal frame­work also sup­ports re­cov­er­ies from to­tal fi­nan­cial ruin. The coun­try boasts mul­ti­ple suc­cess sto­ries whereby soon af­ter declar­ing bank­ruptcy, a pre­vi­ously in­sol­vent com­pany reemerged with a new cor­po­rate struc­ture and fo­cus. Ko­dak, Mar­vel, and Fruit of the Loom — to­day ma­jor multi­na­tional cor­po­ra­tions — all re­turned to prof­itabil­ity partly due to the U.S.’s favourable re­or­gan­i­sa­tion and re­fi­nanc­ing laws. Start­ing a busi­ness in Amer­ica, how­ever, is not as easy as it is in other busi­ness-friendly coun­tries; it is a six-step process, and the pro­ce­dure takes about six days.

* Cost of start­ing a busi­ness: 0.5% * To­tal tax rate: 49.1% * In­come per capita: $46,219

Like other Scan­di­na­vian coun­tries, Swe­den is one of the best na­tions for busi­ness. It per­forms well in ev­ery mea­sure

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.