Doing Business Report


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World Bank Update, Paula Garcia Serna And Hans Schraeder.

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Doing Business Report

  1. 1. Global Trends - Business Registration Paula Garcia Serna Hans Shrader March 2013
  2. 2. Starting a business: the indicator 22
  3. 3. Where is starting a business easy?What do many have in common?New Zealand Global good practiceAustralia No or minimal minimum capital requirementCanada Standardized formsSingaporeMacedonia FYR No courts involvedHong Kong SAR, China Fixed registration feeGeorgiaRwanda No publication in legal journal requiredBelarusIreland 33
  4. 4. Who has narrowed the distance to frontierin starting a business the most since 2005? The distance to frontier measure shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator since 2005—in this case for the starting a business indicators. 4
  5. 5. Pace of reforms remains strong worldwide: 108economies implemented 201 reforms in 2011/12 OECD high Eastern Europe Income 88% and Central Asia 68% Middle East and 47% North Africa 46% 38% East Asia and Latin America Pacific & the 45% South Asia Caribbean 61% Sub-Saharan Africa Nearly half of all economies in East Asia and Pacific reformed in one or more areas of business regulation in 2011/12 5 5 5
  6. 6. Number of reforms easing start-up sinceDB2006 6
  7. 7. The most popular reforms in 2010/11 7
  8. 8. What are the trends since DB2006 Incorporation fees tend Over the past 8 years Doing Businessto be lower in economies recorded 368 business registrationwhere fee schedules are reforms in 149 economieseasily accessible In 2011/12, 36 economies made it Globally, the average easier to start a business, withtime to start a business fell streamlining registration formalities thefrom 50 days to 30, and most common featurethe average cost from 89%of income per capita to Entrepreneurs in Sub-Saharan Africa31.27%. continue to face the highest cost and highest paid-in minimum capital 8
  9. 9. Transparency in public agencies Share of economies where agency makes fee schedules easily available (%) 79 64 56 53 Company Rgistry Property Registry Distribution Utility Builiding departmentCompany Property Distribution Builiding Rgistry Registry Utility department 9
  10. 10. Reforms making it easier to start a business show results over time in reduced delays… 2005 It was possible to start a business in less than 20 days in only 40 economies, mostly in North America and Northern and Central Europe 2012* Now, the time to start a business is less than 20 days for entrepreneurs in 105 economies*Based on samples of 174 economies in 2005 and 185 economies in2012 10 10
  11. 11. … and big reductions in the cost to start a business around the world  As of 2012, 91 economies Global have no minimum capital OECD high income 12 Average 22 requirement. Eastern Europe & Central 14 Asia 37 East Asia & Pacific 36 52 South Asia 19 38 DB2013Middle East & North Africa 21 DB2006 39 Sub-Saharan Africa 34 232.9Latin America & Caribbean 53 74 0 50 100 31.3 11 11
  12. 12. WORLD BANK – DEVELOPMENT BANK Putting Policy into Practice: Bangladesh 12
  13. 13. The Toolkit Case Study on BangladeshThe Office of Registrar Joint StockCompanies and Firms (RJSC) …. Priorto Reform …. 13
  14. 14. 14
  15. 15. And today…a fully functioning onlinesystem and a pioneering agency toimplement Digital Bangladesh vision 15
  16. 16. 16
  17. 17. Before and After the Online SystemBefore At least 7 days to get Name Clearance At least 30-40 days and often more than 60 days to get Registration 4-5 weeks related to stamp duty and treasury chalan After  No visit for name clearance  Only four hours to get registration through Fast Track.  No requirement for adhesive stamp.  Payment at the Bank in 15 minutes and all information available in the web  Reduced scope for bribery and corruption  Increase of transparency 17
  18. 18. Reform Options that have Impact♦ Flat fee schedule♦ Standardized incorporation documents♦ Moving registration out of the courts♦ Making the use of notaries optional♦ Reducing or eliminating the minimum capital requirement♦ Making the registration process transparent and accountable♦ Integrated Registration System and Unique Company ID♦ Creating a Single Interface --- One Stop Shop♦ ICT led registration system 18
  19. 19. Do and Don’t of ICT-led BR SystemDon’ts - frequently made common mistakes:♦ Hardware and Software cannot resolve a problem that was not articulated♦ What works for a particular country will work anywhere (the Bandwagon effect)♦ Registry staff and users will easily adapt to a new technology♦ Once the system is automated my problems will be overDo’s - it always is worth doing:♦ Careful mapping and streamlining of processes♦ Make prototypes and test:♦ Utilize synergies with eGov and other agenciesCheck Implementing Electronic Business Registry (e-BR) Services, WBG 19
  20. 20. World Bank Group Collaboration for Reform Phases of Engagement Partners1. Receive Government request WBG, donors2. Prepare DB Reform Memo DB Reform, WBG3. Discussions with the Government DB Reform; Regional and• Identify priority areas for reform product BEE teams;• Agree on reform action plans WBG; donors• Design a TA reform program4. Monitoring & evaluation DB ProjectThe DB Reform Unit was set up in 2007 to respond to governmentrequests for assistance in reform in areas covered by Doing Business 20
  21. 21. Reforming Business Registration: A Toolkit for Policymakersand Practitioners♦ The toolkit analyzes:  Fundamentals of international good practices in BR reforms  Legal, business process, and institutional reform implementation issues  BR reform issues in Fragile and Conflict-Affected States (FCAS)  Project life-cycle of a BR reform program  Country case studies and web resources♦ The toolkit does not:  Provide a one-model-fits-all strategy but helps practitioners to design their own strategy based on their country- context. 21
  22. 22. THANKS! Doing Business: World Bank Group Entrepreneurship database: /entrepreneurship Reforming Business Registration. A tool for practitioners: 22 22