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Ease of Doing Business in Asia 2009-2010

Source: The World Bank Group's report on Doing Business 2010  (Link: http://www.doingbusiness.org/)
Selected Asia Comparison Table: by Business-in-Asia.com


Summary of Ease of doing business in Asia

According to the report, data in Doing Business 2010: Reforming Through Difficult Times are current as of June 1, 2009. The indicators the World Bank Group found are used to analyze economic outcomes and identify what reforms have worked, where, and why.

Aggregate Rankings Worldwide

Economies are ranked on their ease of doing business, from 1 - 183, with first place being the highest.
Asian Countries
2010 Ranking
Singapore  1
Hong Kong 3
Thailand  12
Japan 15
Korea 19
Malaysia 23
China 89
Vietnam 93
Indonesia 122
India 133
Philippines 144
Cambodia 145
Laos
167
(Click here to see their ranking comparisons for previous year)



Ease of Starting Business in Asia

Runckel & Associates Comment:

Singapore and Hong Kong have ranked high for the past several years for this area.  According to the report, Thailand eased business start-up by merging the registration of memorandum and the application for company registration. As a result, it cut 1 procedure (from 8 to 7) and 1 day from company start-up (from 33 to 32 days). However, even though Thailand and Laos required only 7 procedures (compared to India at 13 and China 14), it takes many more days to complete their less number of procedures; for example Malaysia can process 9 procedures in 11 days which showed effectiveness in their systems.  Vietnam and Cambodia really need improvement in
days required to start a business, as currently they are 50 days and 85 days respectively.  China, even though it required more procedures and time, had the 3rd lowest cost to start at 4.9% of income per capita; while India and Cambodia cost the highest at 66.1% and 138.4% respectively.


Number of Procedures to Start Business
This table compares the number of procedures required before an entrepreneur can operate a business.
Asian Countries
Number of Procedures
 (Yr. 2010)

Hong Kong 3
Singapore 3
Thailand
7
Laos 7
Korea 8
Japan 8
Indonesia 9
Cambodia 9
Malaysia 9
Vietnam 11
India 13
China
14
Philippines
15
(Click here to see their ranking comparisons for previous year)

Time to Start Business (number of days)
This table compares the number of days required before an entrepreneur can operate a business.
Asian Countries
Number of Days
 (Yr. 2010)

Singapore 3
Hong Kong
6
Malaysia
11
Korea
14
Japan 23
India 30
Thailand 32
China 37
Vietnam 50
Philippines 52
Indonesia 60
Cambodia
85
Laos
100
(** Click here to see their ranking comparisons for previous year)

Cost to start a business (% of income per capita)
This table compares the costs to start a business.

Asian Countries
Cost to start - % of income per capita)
 (Yr. 2010)

Singapore 0.7
Hong Kong
1.8
China
4.9
Thailand
6.3
Japan 7.5
Malaysia 11.9
Laos 12.3
Korea 14.7
Vietnam 13.3
Indonesia 26.0
Philippines 28.2
India
66.1
Cambodia
138.4
(** Click here to see their ranking comparisons for previous year)

Ease of Dealing with Construction Permits

Runckel & Associates Comment: According to the report, please note that the rankings below are for a warehouse that will be used for general storage, not to be used for any goods requiring special conditions, such as food, chemicals or pharmaceuticals.  China was ranked poorly as one of the longest times, with many required procedures and cost more to get the construction permit issued (37 procedures/336 days/cost 579.2% of income per capita); while Hong Kong has established a one-stop shop that allowed six local departments and two private utilities to function under the same roof to expedite the issuance of construction permits (7 procedures in 67 days/cost 18.7%).  India's cost is the highest while Malaysia is the lowest cost (but Malasia takes more procedures and days than many to get the permit: 25 precedures/251 days).

Number of Procedures for Construction Permits
This table compares the number of procedures required for an entrepreneur to deal with construction permits
Asian Countries
Number of Procedures
 (Yr. 2010)

Hong Kong
7
Singapore
11
Thailand
11
Vietnam
13
Korea 13
Indonesia
14
Japan
15
Cambodia
23
Laos
24
Philippines
24
Malaysia 25
China
37
India
37
 

Summary of improvement/changes for 2010:
  (Source: The World Bank Group's report on Doing Business 2010  (Link: http://www.doingbusiness.org/)


Cambodia:
2010 Cambodia introduced a social security contribution of 0.8 percent of the monthly average wage, with a cap of KHR 1 million (about $250).


China:
2010 China’s State Administration of Foreign Exchange relaxed trade credit restrictions in response to the economic and financial crisis. Foreign exchange authorization is no longer required.


Hong Kong:
2010 Hong Kong (China) eased business start-up by simplifying registration and merging procedures. The economy also established a one-stop shop, allowing six local departments and two private utilities to function under the same roof to expedite the issuance of construction permits. Property registration has also become easier, because the stamp duty for the sale can now be submitted online.


India:
2010 In India procedures under the 2002 Securitization Act have become more effective, easing the process and reducing the time required to close a business.



Indonesia:
2010 Indonesia eased incorporation and post-incorporation processes for new business registration by introducing online services, eliminating certain licenses, making the registry more efficient, and cutting company deed legalization fees, publication fees, registration fees, and business license fees. As a result, 2 procedures and 16 days were cut and the average company start-up cost was reduced by almost 52 percent of gross national income per capita. Property registration also became easier because time limits were introduced for standard procedures at the land registry. In addition, Indonesia increased investor protections by expanding disclosure requirements for related-party transactions.


Laos:
2010 Lao PDR made it easier to pay taxes by consolidating three taxes—business turnover tax, excise tax, and personal income tax withholding—into one simpler form. It also improved the lodgment process and tax office staffing. The compliance time for paying taxes was reduced by 198 hours a year.


Malaysia:
2010 Malaysia eased business start-up with a new one-stop shop to streamline registration. In addition, the Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) reduced company incorporation charges and corporate fees. The service is still new, and the government is planning a public awareness campaign about the new system. Enforcing contracts through the courts was made easier by increased staff and stricter deadlines that have shortened case filing times from 45 days to 30. In addition, the commercial court has been reorganized to dispose of interlocutory matters more swiftly.


The Philippines:
2010 The Philippines enhanced access to credit with a new credit information act that regulates the operations and services of a credit information system. The government also cut the corporate income tax rate from 35 percent to 30 percent and promoted reorganization procedures by introducing prepackaged reorganizations and regulating the receiver profession.


Singapore:
2010 Singapore simplified business start-up by making it possible to incorporate a company and register for taxes using the same online form. It also made it easier to deal with construction permits with new workplace safety and health regulations that allow low-risk industries to submit documents online. In addition, Singapore eased property registration by improving its computerized system.


Thailand:
2010 Thailand eased business start-up by merging the registration of memorandum and the application for company registration. As a result, it cut 1 procedure and 1 day from company start-up.


Vietnam
2010 Vietnam cut the corporate income tax from 28 percent to 25 percent and eliminated the surtax on income from the transfer of land use. It also adopted a new enterprise income tax law and value added tax law. In addition, increasing competition in the logistics industry and the application of new customs administration procedures as part of the World Trade Organization (WTO) membership reform program have reduced trade delays.



Time to deal with construction permits
This table compares the number of days required for an entrepreneur to deal with construction permits

Asian Countries
Number of Days
 (Yr. 2010)

Singapore
25
Korea
34
Hong Kong
67
Thailand
156
Indonesia
160
Laos
172
Japan
187
Vietnam
194
India
195
Philippines
203
Malaysia 261
China
336
Cambodia
709



Ease in Registering Property

Runckel & Associates Comment: Thailand leads the group on short procedures, time and cost (which ultimately increased the country's ranking on the Aggregate Ranking).

Procedures to register property (number)
This table compares the number of procedures required for an entrepreneur to register a property.

Asian Countries
Number of Procedures
 (Yr. 2010)

Thailand
2
Singapore
2
China
4
Vietnam
4
Hong Kong
5
Malaysia
5
India
5
Japan
6
Indonesia
6
Korea
7
Cambodia
7
Philippines
8
Laos
9





Ease of Trading Across Borders

Runckel & Associates Comment: Please pay particular note to export and import times as this is something that most companies have to do frequently.  The truth is that in most Asian nations much more is required to be done to speed up procedures and to limit the number of documents and the times for processing of these documents in terms of import and export.  Vietnam needs to improve on reducing days required before export and cost per container.

Documents to export (number)
This table compares the number documents required before an entrepreneur can export.

Asian Countries
# of Document
 (Yr. 2010)

Korea
3
Hong Kong
4
Singapore
4
Thailand
4
Japan
4
Indonesia
5
Vietnam
6
China
7
Malaysia
7
Philippines
8
India
8
Laos
9
Cambodia
11


Documents to Import (number)
This table compares the number documents required before an entrepreneur can import.

Asian Countries
Number of Document
 (Yr. 2010)

Korea
3
Thailand
3
Hong Kong
4
Singapore
4
China
5
Japan
5
Indonesia
6
Malaysia
7
Philippines
8
Vietnam
8
India
9
Laos
10
Cambodia
11


Cost to import (US$ per container)

Asian Countries
(US$ per container)
 (Yr. 2010)

Singapore
439
Malaysia
450
China
545
Hong Kong
583
Indonesia
660
Korea
742
Thailand
795
Philippines
819
Cambodia
872
Vietnam
940
India
960
Japan
1,047
Laos
2,040





Cost to deal with construction permits (% of income per capita) 

This table compares the costs to deal with construction permits.

Asian Countries
(% of income per capita)
 (Yr. 2010)

Malaysia
7.1
Thailand
12.1
Hong Kong
18.7
Japan
19.3
Singapore
19.9
Cambodia
53.6
Philippines
81.7
Korea
135.6
Laos
144.0
Indonesia
194.8
Vietnam
248.1
China
579.2
India
2,394.9



Time to register property (days)
This table compares the number of days required for an entrepreneur to register a property.

Asian Countries
Number of Days
 (Yr. 2010)

Thailand
2
India
4
Singapore
5
Korea
11
Japan
14
Indonesia
12
China
29
Philippines
33
Hong Kong
45
Cambodia
56
Vietnam
57
Laos
135
Malaysia
144


Cost to register property (% of property value)

Asian Countries
% of property value
 (Yr. 2010)

Thailand
1.1
Vietnam
1.1
Malaysia
2.6
Singapore
2.8
China
3.1
Laos
4.1
Philippines
4.3
Cambodia
4.4
Japan
5.0
Hong Kong
5.1
Korea
5.1
India
7.4
Indonesia
10.7


Time to Export (days)
This table compares the number of days required before an entrepreneur can export.

Asian Countries
Days to Export
 (Yr. 2010)

Singapore
5
Hong Kong
6
Korea
8
Japan
10
Thailand
14
Philippines
16
India
17
Malaysia
18
China
21
Indonesia
21
Cambodia
22
Vietnam
22
Laos
50


Cost to export (US$ per container)

Asian Countries
(US$ per container)
 (Yr. 2010)

Malaysia
450
Singapore
456
China
500
Hong Kong
625
Thailand
625
Indonesia
704
Cambodia
732
Korea
742
Vietnam
756
Philippines
816
India
945
Japan
989
Laos
1,860


Time to import (days)
This table compares the number of days required before an entrepreneur can import.

Asian Countries
Days to Import
 (Yr. 2010)

Singapore
3
Hong Kong
5
Korea
8
Japan
11
Thailand
13
Malaysia
14
Philippines
16
India
20
Vietnam
21
China
24
Indonesia
27
Cambodia
30
Laos
50




More comparisons of Asian Countries' Rankings:


  • Taxes in Asia  (for the Paying Taxes indicator that refers to the period January to December of 2008)


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