Generally, people tend to believe that all the countries with the reputation of global giants are business friendly. However, the truth is far different. World Bank has used the ease of doing business index as a criterion to list the most business friendly countries in the world at present and you might find the final rankings quite surprising. If we have aroused your attention, keep reading. You might even decide to start a search for the best location for your new office building in one of these countries. Positive environments have always inspired ambitious, creative, and hard-working individuals to continuously improve their living standard and their position on the business ladder.
What is the ease of doing business index?
The ease of doing business index is determined according to certain quantitive indicators on business regulations. These indicators can be compared among the countries and then you can easily deduct which of the countries you are analyzing are business friendly. Here are the factors that affect the final value of the ease of doing business index:
- Starting a business – It is critical to know the procedure and all the necessary documents to start a business. Also, time is an important factor too, because we all know that wasting time can be considerably expensive in business terms. Only after examining these elements in detail can you continue with the procedure and eventually maybe hire a branding consultant to help your business grow.
- Dealing with construction permits – Those business owners who need to consider building a warehouse for their business are particularly interested in the procedures regarding this aspect of their business. If the costs are high and the time you need to obtain all the mandatory documents long, these countries are not perceived as a good choice for some business investments.
- Getting electricity – Once you decide to construct a warehouse that will meet all your business needs, getting a permanent electricity connection is the next issue you have to solve. Understandably, it is a great benefit when the procedure does not require a lot of time or financial means to be completed efficiently and yet successfully.
- Registering property – Since each and every business owner is required to register commercial real estate, this factor rightfully deserves a place on the list of these parameters.
- Getting a loan – Each country has a specific set of regulations that define the minimum capital for starting a business. However, a business aimed at continuous improvement and development requires constant investments so business owners tend to find solutions in various loans. Hence, what they are particularly interested in are the strength of legal rights index and depth of credit information index of a country their business is situated in.
- Protecting minority investors – This factor that influences the final decision on the most business friendly countries in the world is related to the ease of shareholder suits index, the business extent of disclosure index, and, finally, the director liability index.
- Paying taxes – Taxes are always a factor of key importance not only when you are considering your options to start doing business but also when you are choosing a country to live in. Business owners pay close attention to the number of taxes they are required to pay and the total tax payable.
- Trading across borders – To be considered business-friendly, a country has to offer favorable conditions for export and import.
- Enforcing contracts – The procedure and the amount of time a business owner needs to enforce a debt contract affect the final rankings of the countries we perceive to be business friendly.
- Resolving insolvency – It is highly important to offer business owners favorable recovery rates under bankruptcy.
These are the most business friendly countries in the world
According to the above-mentioned criteria underlying the ease of doing business index, World Bank has come to the following list of the most business friendly countries in the world:
- Singapore
- New Zealand
- Hong Kong
- Denmark
- The Republic of Korea
- Norway
- The United States
- The United Kingdom
- Finland
- Australia
- Sweden
- Iceland
- Ireland
Each one of the countries listed has a stable, well-organized economy that makes a favorable environment for doing business. Every year, the rankings change to a minor extent, but we must emphasize that Saudi Arabia, for example, has scored a giant leap and significant improvement in this field.
Procedures, paperwork, and the costs of starting a business in Saudi Arabia are constantly acquiring business friendly features. Moreover, import and export to and from Saudi Arabia are relatively easy for business owners. If you want to get in this line of business yourself, don’t worry about customs regulations, as there are companies that can help you every step of the way. Finally, experts predict that the new improvement of the ranking of this country on the list is yet to happen in the years to come.
A thorough analysis is necessary prior to starting a business in a country
Starting a business in a new country is a serious and very demanding endeavor. To gain a spotless reputation in your niche and reach the desired success, one needs to conduct a thorough analysis of all the key factors that will determine whether the country in question offers a favorable environment for doing business or not. Judging by the number of parameters one needs to focus on to gain a clear image of the current economic situation, consulting experts is always a good and reasonable decision. World Bank creates its own list of the most business friendly countries in the world every year to provide business owners with assistance and support on where to invest. We strongly suggest analyzing every factor that influences the ease of doing business index before making any substantial investments.
Author’s bio
Hannah Wexler is a business consultant who has worked for companies such as fourwinds-ksa.com during her 10-year career. She has helped many business owners and those who would like to become one start or expand their companies. In her free time, she enjoys reading science fiction novels.
