Best Countries for Doing Business in 2012

The Ease of Doing Business Index is an index created by the World Bank. Higher rankings indicate better, usually simpler, regulations for businesses and stronger protections of property rights. Empirical research funded by the World Bank to justify their work show that the effect of improving these regulations on economic growth is strong.

The index is based on the study of laws and regulations, with the input and verification by more than 8,000 government officials, lawyers, business consultants, accountants and other professionals in 183 economies who routinely advise on or administer legal and regulatory requirements.
Best Countries for Doing Business

The Ease of Doing Business index is meant to measure regulations directly affecting businesses and does not directly measure more general conditions such as a nation's proximity to large markets, quality of infrastructure, inflation, or crime. A nation's ranking on the index is based on the average of 10 subindices:

  1. Starting a Business - Procedures, time, cost and minimum capital to open a new business

  2. Dealing with construction permits - Procedures, time and cost to build a warehouse

  3. Employing workers - Difficulty of hiring index, rigidity of hours of index, difficulty of redundancy index, rigidity of employment index, redundancy costs

  4. Registering property - Procedures, time and cost to register commercial real estate

  5. Getting credit - Strength of legal rights index, depth of credit information index

  6. Protecting investors - Indices on the extent of disclosure, extent of director liability and ease of shareholder suits

  7. Paying taxes - Number of taxes paid, hours per year spent preparing tax returns and total tax payable as share of gross

  8. Trading across borders - Number of documents, cost and time necessary to export and import

  9. Enforcing contracts - Procedures, time and cost to enforce a debt contract

  10. Closing a business - Index of recovery rate which is a function of time, cost and other factors such as lending rate and the likelihood of the company continuing to operate

The most recent rankings come from the "Doing Business 2012" report. Singapore topped the ranking on Ease of Doing Business for the sixth year. Detail information is here

Here is interesting infographic created by about best Countries for Doing Business in 2012.

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