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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 |
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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. |
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