Doing Business 2012: Doing Business in a More Transparent World assesses regulations impacting on domestic businesses in 183 economies and ranks the economies in 10 aspects of business regulation, including starting a business, dealing with insolvency and trading across borders. This year’s report data cover regulations assessed from June 2010 through May 2011. The report rankings on ease of doing business have broadened to incorporate indicators on getting electricity. The report confirms that obtaining an electrical connection is most efficient in Iceland; Germany; Taiwan, China; Hong Kong SAR, China; and Singapore.
The ease of conducting business in South Africa advanced one place this year to rank 35 out of 183 economies. South Africa made starting a business less complicated by enacting the new Companies Act in April, as reported by the World Bank and the International Finance Corporation’s in the “Doing Business 2012: Doing Business in a More Transparent World”.
Morocco improved its business regulation by far the most when compared to other global economies, ascending 21 places to 94, by simplifying the construction permitting process, reducing the administrative burden of tax compliance, and offering increased protections to minority shareholders.
The new Company Act legal guidelines removed the requirement to reserve a company name and simplified the incorporation documents. Transferring property was made cheaper and a lot more efficient by lowering transfer duty and properly introducing electronic filing.
The report identified that South Africa in addition introduced a new reorganisation process to assist rehabilitate financially distressed companies. Throughout sub-Saharan Africa regulatory reform has been broadening, with 13 economies carrying out reforms to make it simpler to do business in three or more areas, the World Bank said.
The leading five economies where doing business was easiest were Singapore, Hong Kong, New Zealand, the United States, and Denmark.
South Africa considerably improved substantially in the starting a new business category, moving up from 74 last year to 44. It now required five procedures to start a business, one fewer than the year before, and 19 days, compared with last year’s 22 days. Furthermore there had also been long-term change for the better, as in 2004 it took nine procedures and 38 days to start a business.
With respect to the ease of registering property, South Africa moved up 14 places coming in at 76 this year. “Registering property requires six procedures, takes 23 days and costs 5.6% of the property value,” as stated by the report.
Addressing construction permits retained its rank over the two years at 31. “Based on data compiled by Doing Business, addressing construction permits demands 13 procedures, takes 127 days and costs 21.2% of income per capita,” the report uncovered.
South Africa shared 1st place with United Kingdom when it comes to the ease of obtaining credit. It was ranked 10th for safeguarding investors, the same place as last year.
Enforcing contracts advanced from 85 to 81 and resolving insolvency likewise gained ground from 79 to 77.
In spite of this, when it came to receiving electricity for new buildings, South Africa’s ranking fell from 122 to 124. This was worse than the sub-Saharan regional average ranking of 122. Mauritius claimed 44th place in getting electricity, Botswana was 91, Namibia 105, and Kenya 115, all ahead of South Africa.
SA lapsed from 18 to 44 in the ease of paying taxes. “On average, companies make nine tax payments a year, spend 200 hours a year filing, preparing and paying taxes and pay total taxes amounting to 24.4%,” the World Bank said.
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