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Doing Business 2011: Making a Difference for Entrepreneurs - by World Bank

By World Bank

8th in a sequence of annual reviews evaluating company rules in 183 economies, Doing enterprise 2011 measures laws affecting 10 components of daily company task: beginning a enterprise, facing building allows, using staff, registering estate, getting credits, maintaining traders, paying taxes, buying and selling throughout borders, imposing contracts, and final a enterprise. The record updates all 10 units of signs, ranks nations on their total ease of doing company and analyzes reforms to enterprise legislation- determining which international locations are bettering strengthening their company setting the main and which of them slipped. Doing company 2011 contains effects at the ongoing study within the sector of "getting electrical energy" and illustrates how reforms in enterprise rules can translate into higher results for household marketers and the broader economic climate. It additionally specializes in how ladies in specific are plagued by complicated enterprise rules.

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Extra resources for Doing Business 2011: Making a Difference for Entrepreneurs - Common Market for Eastern and Southern Africa (COMESA) 57934

Example text

By improving the expectations of creditors and debtors about the outcome of insolvency proceedings, well -functioning insolvency systems can facilitate access to finance, save more viable businesses, and thereby improve growth and sustainability in the economy overall. Some reform outcomes A study of the 2005 bankruptcy reform in Brazil found that it had led to an average reduction of 22% in the cost of credit for Brazilian companies, a 39% increase in overall credit and a 79% increase in long-term credit in the economy.

Closing a Business : bankruptcy of a local company Rankings are based on 1 subindicator Time required to recover debt (years)  Measured in calendar years  Appeals and requests for extension are included  Postregistration (for example, transactions with the local authority, tax authority or cadastre) Cost required to recover debt (% of debtor's estate)  Measured as percentage of estate value  Court fees  Fees of insolvency administrators  Lawyers’ fees  Assessors' and auctioneers' fees Recovery rate for creditors(cents on the dollar)  Measures the cents on the dollar recovered by creditors  Present value of debt recovered  Official costs of the insolvency proceedings are deducted  Depreciation of furniture is taken into account  Outcome for the business (survival or not) affects the maximum value that can be recovered 100% Recovery ra te Recovery ra te is a function of time , cost a nd other factors such a s le nding ra te a nd the lik elihood of the com pa ny continuing to ope rate Case Study Assumptions The Company • is a domestically owned • is a limited liability corporation operating a hotel • operates in the country’s largest business city • has 201 employees, 1 main secured creditor and • has 50 unsecured creditors The future cash flow.

Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. The Seychelles removed the tax-free threshold limit and lowered corporate income tax rates. Swaziland strengthened investor protections by requiring greater corporate disclosure, higher standards of accountability for company directors and greater access to corporate information for minority investors.

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