Singapore is the best country for ‘doing business’
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