Figure 1 – What are the time, cost, paid-in starting up an it business capital and number of procedures to get a local limited liability company up and running? Two types of local limited liability companies are considered under the starting a business methodology.
They are identical in all aspects, except that one company is owned by five married women and other by five married men. The score for each indicator is the average of the scores obtained for each of the component indicators for both of these standardized companies. After a study of laws, regulations and publicly available information on business entry, a detailed list of procedures is developed, along with the time and cost to comply with each procedure under normal circumstances and the paid-in minimum capital requirement. Subsequently, local incorporation lawyers, notaries and government officials review and verify the data. Information is also collected on the sequence in which procedures are to be completed and whether procedures may be carried out simultaneously.
It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. If answers by local experts differ, inquiries continue until the data are reconciled. To make the data comparable across economies, several assumptions about the businesses and the procedures are used. If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office. Operates in the economy’s largest business city.
For 11 economies the data are also collected for the second largest business city. Has start-up capital of 10 times income per capita. Performs general industrial or commercial activities, such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco.