Yes, it is time for you to expand your business further and internationally. This article will mention the countries as well cover all the essential points that are considered before deciding upon this list of host countries where you would like to invest and start your business, be it a start-up, a subsidiary of your already running business enterprise or a branch in a new geographical location.
It’s important to note here that this article isn’t meant to be an investment guide, but rather will help you know about countries that are ranked high in terms of ease of doing business, the overall quality of an economy’s business environment and its national competitiveness, macroeconomic stability, development of the financial system, market size, rule of law, and the quality of the labor force. All these can be quantitatively judged by mathematical figures like Gross Domestic Product (GDP), Consumer Price Index (CPI), PMI Manufacturing and Services, Employment Indicators (EI) & Central Bank Minutes (CBM).
Ease of Doing Business
You need to know the regulations and procedures of all the 190 economies of the World before you decide your new destination in a new geographical location. You will also need to know those regulations that enhance business activity and those that constrain it. Regulations that affect the 12 areas of any business may be enumerated as 1) starting of a business, 2) construction permits, 3) getting electricity, 4) registration of property, 5) Availing credit, 6) protection of minority investors, 7) paying of taxes, 8) trading across the borders, 9) enforcing contracts between entities, 10) resolving insolvency if required, 11) employment of workers, and 12) contracting with the government. Making regulations in the aforesaid 12 areas easy and convenient, safe and enforceable is what known as Ease of Doing Business.
20 Countries that are the best In terms of Ease of Doing Business in 2020
Ease of doing business is an important foothold to structural reforms that actually encourages broad-based growth. Every Economy is trying to catch up with 20 best economies in ease of doing business. But still the gap is wide. In total, 115 economies made it easier to do business in their countries. According to a report published by The World Bank Group the 20 economies with the most notable improvement in ease of doing business in 2020 are as follows:
- New Zealand
- Hong Kong
- Saudi Arabia
- Korea, Rep
- United States
- United Kingdom
- United Arab Emirates
- North Macedonia
The above-mentioned 20 top-ranking Economies of the World have implemented a total of 22 reforms in business regulations to help businesses grow and prosper in their countries in 2020. Since 2003-2004, the 20 best-performing economies have carried out a total of 464 regulatory changes, suggesting that even the gold standard setters have room to improve their business climates.
It is important to note here that more than 50% of the economies in the top-20 countries are from the OECD high-income group. Countries that are on the top of the list for on the ease of doing business have many common features, including the common use of electronic systems. All of the 20 top-ranking economies have online procedures and filing for business incorporation processes, tax, and property transfers etc. Moreover, 11 economies have electronic procedures for construction permitting. In general, the 20 top performers have sound business regulation with a high degree of transparency. The average scores of these economies are 12.2 (out of 15) on the building quality control index, 7.2 (out of 8) on the reliability of supply and transparency of tariffs index, 24.8 (out of 30) on the quality of land administration index, and 13.2 (out of 18) on the quality of judicial processes index. Fourteen of the 20 top performers have a unified collateral registry, and 14 allow a viable business to continue operating as a going concern during insolvency proceedings.
20 Countries that are the worst In terms of Ease of Doing Business in 2020
The below-mentioned 20 lowest-ranking Economies of the World have implemented a total of 10 reforms in business regulations to help businesses grow and prosper in their countries in 2020. This is not sufficient and very less compared to the numbers implemented by the best 20 Economies of the World.
The difference in an entrepreneur’s experience in top-performing and bottom-performing economies is noticeable in almost all the points that make ease of doing business better. For example, it takes nearly six times longer on average to start a business in the economies ranked in the bottom 20 than it does in the top 20. Transfer of property in the 20 top economies requires less than two weeks, compared to about three months in the bottom 20. Obtaining an electricity connection in an average bottom-20 economy takes twice the time that it takes in an average top-20 economy; the cost of such a connection is 44 times higher when expressed as a share of income per capita. Also, commercial dispute resolution lasts about 2.1 years in economies ranking in the bottom 20 compared to 1.1 years in the top 20. Notable differences between stronger and weaker performing economies are also evident in the quality of regulation and information. In the top 20, 83% of the adult population on average is covered by either a credit bureau or registry, whereas in the bottom 20 the average coverage is only at 10%.
- Guinea- Bissau
- Syrian Arab Republic
- Equatorial Guinea
- Congo, Rep.
- Timor- Leste
- Congo Dem. Rep.
- Central African Republic
- South Sudan
- Yemen, Rep
- Venezuela, RB
The facts and figures mentioned is as per the report published by the World Bank Group on ease of doing business in 2020 and hence are authentic and can be trusted. Now that you have a comprehensive knowledge about the ease of doing business in the top 20 and the bottom 20 countries of the world you can take an informed decision about your expansion in a new geographical location. Wish you all a great 2020 with success in new markets.
Why will you need a Professional Translation Company to assist you?
Last but not the least, when you decide your destination country for exploring business in a new market you will at first place come up with a challenge of language differences. All documentation and communication in most of the cases will be in the language of the land. Going further, for marketing you will need assistance in creating marketing content for the new market in their language. Here is where you have to hire a Professional Translation Company to handle all your language based needs. If you are looking for translation services in dubai you must give Dar Al Marjaan translation a try.