By World Bank
8th in a sequence of annual reviews evaluating company laws in 183 economies, Doing enterprise 2011 measures laws affecting 10 components of daily company task: beginning a company, facing building allows, utilising employees, registering estate, getting credits, preserving traders, paying taxes, buying and selling throughout borders, imposing contracts, and last a enterprise. The file updates all 10 units of signs, ranks nations on their total ease of doing enterprise and analyzes reforms to enterprise rules- picking out which nations are bettering strengthening their company surroundings the main and which of them slipped. Doing company 2011 contains effects at the ongoing examine within the zone of "getting electrical energy" and illustrates how reforms in company rules can translate into larger results for household marketers and the broader financial system. It additionally specializes in how ladies in specific are laid low with complicated company laws.
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Additional info for Doing Business 2011: Making a Difference for Entrepreneurs - South Asia (SA) 57946
1 Average Time to Close a Business (years) 39 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy’s regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy’s business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related-party transactions.
What does the Closing a Business indicator measure? Closing a Business : insolvency proceedings against local company Time required to recover debt (years) Measured in calendar years Appeals and requests for extension are included Cost required to recover debt (% of debtor's estate value) Measured as percentage of estate value Court fees Fees of insolvency administrators Lawyers’ fees Assessors' and auctioneers' fees All other fees and costs Recovery rate for creditors(cents on the dollar) Measures the cents on the dollar recovered by creditors Present value of debt recovered 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 rate Recovery rate is a function of time, cost and other factors such as lending rate and the likelihood of the business continuing to operate Case Study Assumptions The Company • is domestically owned • is a limited liability company operating a hotel • operates in the economy’s largest business city • has 201 employees, 1 secured creditor and 50 unsecured creditors • has a higher value as a going concern and a lower value in a piecemeal sale of assets 36 Time to go through insolvency (years) This graph compares the number of years it takes to go through an insolvency process.
The economy with the least time to import is included as a benchmark. Cost to import (US$ per container) This graph compares the costs for an entrepreneur to import. * The economy with the lowest cost to import is included as a benchmark. 3 Region Average Time to Import (days) 31 Well functioning courts help businesses expand their network and markets. Where contract enforcement is efficient, firms have greater access to credit and are more likely to engage with new borrowers or customers. Doing Business measures the efficiency of the judicial system in resolving a commercial sale dispute before local courts.