doing business reports

INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

Presentation On:

Presented By:

Anant Sirohi (15810003)Arush Jain (15810009)

Doing Business Reports

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TABLE OF CONTENT

• Introduction• Business Environment• Doing Business Evaluations Criteria

Starting a Business Dealing with Construction Permits Getting Electricity Registering Property Getting Credits Protecting Minority Investors Paying Taxes Trading Across Borders Enforcing Contracts Resolving Insolvency

• Conclusion

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INTRODUCTION

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations.

It measures and tracks changes in regulations affecting 10 areas in the life cycle of a business.

In a series of annual reports Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 189 economies.

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The Doing Business methodology has limitations such as an economy’s proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders and getting electricity), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions—are not directly studied

The data not only highlight the extent of obstacles to doing business, they also help identify the source of those obstacles

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BUSINESS ENVIRONMENT

For policy makers trying to improve their economy’s regulatory environment for business, and to find out how it compares with the regulatory environment in other economies.

Doing Business presents results for 2 aggregate measures: the distance to frontier score and the ease of doing business ranking.

The ease of doing business ranking compares economies with one another; the distance to frontier score benchmarks economies with respect to regulatory best practice, showing the absolute distance to the best performance on each Doing Business indicator.

Ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies.

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The 10 topics included in the ranking in Doing Business 2016 Starting a business Dealing with construction permits Getting electricity Registering property Getting credit Protecting minority investors Paying taxes Trading across borders Enforcing contracts Resolving insolvency

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India and comparator economies rank on the ease of doing business

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STARTING A BUSINESS

• Formal registration of companies • Resources are pooled as several

shareholders join forces to start a company.

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India’s Ranking

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Starting a business there requires 12.90 procedures, takes 29.00 days, costs 13.50% of income per capita and requires paid-in minimum capital of 0.00% of income per capita.

What it takes to start a business in India - Mumbai

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DEALING WITH CONSTRUCTION PERMITS Regulation of construction is critical

to protect the public. It needs to be efficient, to avoid

excessive constraints on a sector that plays an important part in every economy.

hazardous construction that puts public safety at risk.

several assumptions about the construction company, the warehouse project and the utility connections are used.

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Comply with formalities to build a warehouse in India - Mumbai

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Comply with formalities to build a warehouse in India - Delhi

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India’s Ranking

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GETTING ELECTRICITY

Access to reliable and affordable electricity is vital for businesses.

Rely on self-supply, often at a prohibitively high cost due to poor power supply which is very costly.

First step for a customer is always to gain access by obtaining a connection.

Getting electricity there requires 5.00 procedures, takes 90.10 days and costs 442.30% of income per capita.

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Indicators to measure

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To obtain an electricity connection in India – Mumbai.

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To obtain an electricity connection in India – Delhi.

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India’s Ranking

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REGISTERING PROPERTY

If property is informal or poorly administered, it has little chance of being accepted as collateral for loans—limiting access to finance.

If formal property transfer is too costly or complicated, formal titles might go informal again.

Doing Business records the full sequence of procedures necessary for a business to purchase property from another business and transfer the property title to the buyer’s name.

Registering property there requires 7.00 procedures, takes 47.00 days and costs 7.50% of the property value.

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Indicator Measures

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Register property in India - Mumbai

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Register property in India - Delhi

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India’s Ranking

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Getting Credits

Effective Credit Information Systems to lenders.

Sound collateral and bankruptcy laws.

Strength of legal rights index.

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India’s Ranking

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Indicators Analysis

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Protecting Minority Investors

Regulations for precise related-party transactions, clear and effective disclosure requirements and shareholder participation in company’s decision making.

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India’s Ranking

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Indicators Analysis

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Paying Taxes

Ease of paying tax along with the tax rates and tax administration in the country.

Measures the administrative burden of paying taxes and contributions.

Information on filling and payments.

Time taken to comply tax laws.

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India’s Ranking

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Taxes and Contributions (Mumbai)

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Taxes and Contributions (Delhi)

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Trading Across Borders

Document requirements, custom procedures, port operations and infrastructure.

Time and cost involved in logistical process of importing and exporting of goods.

Time is measured in hours.

Costs are measured in US dollars and include insurance cost and other informal payments.

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India’s Ranking

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Trading Compliance

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Trading Compliance (Mumbai)

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Trading Compliance (Delhi)

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Enforcing Contracts

Effective and transparent settlement of disputes.

Speedy trails for small enterprises.

Quality of Judicial processes index.

Adoption of good practices in the court system.

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India’s Ranking

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Time and Cost Parameters

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Indicators Analysis

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Resolving Insolvency

Time, cost and outcome of insolvency proceedings involving legal entities.

Recovery Rate

Liquidation or Debt enforcement proceedings

Adoption of internationally accepted good practices

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India’s Ranking

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Time and Cost Parameters

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Indicators Analysis

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Conclusion

Currently, India’s rank is 130th in the list of 189 countries.

India is performing well in:-1) Protecting Minority Investors- Rank 82) Getting Credits- Rank 423) Getting Electricity- Rank 70

There is a lot of scope to improve:-1) Trading Across Borders- Rank 1332) Resolving Insolvency- Rank 1363) Registering Property- Rank 1384) Starting a Business- Rank 1555) Paying Taxes- Rank 1576) Enforcing Contracts- Rank 178 7) Dealing with Construction Permits- Rank 183

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Thank You!!