View Topic Details
Research
The Regulation of Entry (PDF, 131KB), by Djankov and others, Quarterly Journal of Economics, Feb. 2002.
This topic identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm. It examines the procedures, time, and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income (GNI).
The table below shows the main indicators. They include:
The Regulation of Entry (PDF, 131KB), by Djankov and others, Quarterly Journal of Economics, Feb. 2002.
| Region or Economy | Procedures (number) | Time (days) | Cost (% of income per capita) | Min. capital (% of income per capita) |
|---|---|---|---|---|
| OECD | 5.7 | 13.0 | 4.7 | 15.5 |
| Eastern Europe & Central Asia | 6.7 | 17.4 | 8.3 | 21.5 |
| South Asia | 7.3 | 28.1 | 27.0 | 26.9 |
| Middle East & North Africa | 7.9 | 20.7 | 34.1 | 129.7 |
| East Asia & Pacific | 8.1 | 41.0 | 25.8 | 21.3 |
| Sub-Saharan Africa | 9.4 | 45.6 | 99.7 | 144.7 |
| Latin America & Caribbean | 9.5 | 61.7 | 36.6 | 2.9 |
| Canada | 1 | 5 | 0.4 | 0.0 |
| New Zealand | 1 | 1 | 0.4 | 0.0 |
| Australia | 2 | 2 | 0.8 | 0.0 |
| Madagascar | 2 | 7 | 7.1 | 0.0 |
| Rwanda | 2 | 3 | 10.1 | 0.0 |
| Belgium | 3 | 4 | 5.3 | 19.4 |
| Finland | 3 | 14 | 0.9 | 7.2 |
| Georgia | 3 | 3 | 3.7 | 0.0 |
| Hong Kong, China | 3 | 6 | 1.8 | 0.0 |
| Kyrgyz Republic | 3 | 11 | 5.2 | 0.0 |
| Singapore | 3 | 3 | 0.7 | 0.0 |
| Slovenia | 3 | 6 | 0.0 | 43.3 |
| Sweden | 3 | 15 | 0.6 | 28.5 |
| Afghanistan | 4 | 7 | 30.2 | 0.0 |
| Bulgaria | 4 | 18 | 1.7 | 20.7 |
| Burkina Faso | 4 | 14 | 50.3 | 428.2 |
| Denmark | 4 | 6 | 0.0 | 38.6 |
| Hungary | 4 | 4 | 8.0 | 10.2 |
| Ireland | 4 | 13 | 0.3 | 0.0 |
| Macedonia, FYR | 4 | 4 | 2.5 | 0.0 |
| Saudi Arabia | 4 | 5 | 7.7 | 0.0 |
| Senegal | 4 | 8 | 63.7 | 206.9 |
| Sri Lanka | 4 | 38 | 5.9 | 0.0 |
| Tonga | 4 | 25 | 8.2 | 0.0 |
| Albania | 5 | 5 | 17.0 | 0.0 |
| Belarus | 5 | 6 | 1.7 | 0.0 |
| Dominica | 5 | 14 | 22.6 | 0.0 |
| Estonia | 5 | 7 | 1.7 | 23.2 |
| Ethiopia | 5 | 9 | 18.9 | 492.4 |
| France | 5 | 7 | 0.9 | 0.0 |
| Iceland | 5 | 5 | 3.0 | 15.8 |
| Israel | 5 | 34 | 4.2 | 0.0 |
| Latvia | 5 | 16 | 2.1 | 14.2 |
| Lebanon | 5 | 9 | 78.2 | 51.0 |
| Liberia | 5 | 20 | 52.9 | 0.0 |
| Maldives | 5 | 9 | 10.0 | 4.0 |
| Marshall Islands | 5 | 17 | 16.2 | 0.0 |
| Mauritius | 5 | 6 | 4.1 | 0.0 |
| Norway | 5 | 7 | 1.9 | 18.7 |
| Oman | 5 | 12 | 2.2 | 273.6 |
| Samoa | 5 | 9 | 9.9 | 0.0 |
| St. Lucia | 5 | 14 | 21.8 | 0.0 |
| Armenia | 6 | 15 | 2.6 | 0.0 |
| Azerbaijan | 6 | 10 | 2.9 | 0.0 |
| Cyprus | 6 | 8 | 13.3 | 0.0 |
| Egypt, Arab Rep. | 6 | 7 | 16.1 | 0.0 |
| Grenada | 6 | 20 | 24.6 | 0.0 |
| Italy | 6 | 10 | 17.9 | 9.7 |
| Jamaica | 6 | 8 | 5.3 | 0.0 |
| Kiribati | 6 | 21 | 38.0 | 20.5 |
| Luxembourg | 6 | 24 | 1.8 | 19.9 |
| Morocco | 6 | 12 | 16.1 | 11.8 |
| Netherlands | 6 | 10 | 5.6 | 49.4 |
| Nicaragua | 6 | 39 | 111.7 | 0.0 |
| Panama | 6 | 12 | 10.3 | 0.0 |
| Poland | 6 | 32 | 17.9 | 15.3 |
| Portugal | 6 | 6 | 6.4 | 33.5 |
| Qatar | 6 | 6 | 7.1 | 59.0 |
| Romania | 6 | 10 | 2.9 | 0.9 |
| Sierra Leone | 6 | 12 | 118.8 | 0.0 |
| Slovak Republic | 6 | 16 | 2.0 | 23.8 |
| South Africa | 6 | 22 | 5.9 | 0.0 |
| Switzerland | 6 | 20 | 2.0 | 26.4 |
| Taiwan, China | 6 | 23 | 3.9 | 0.0 |
| Turkey | 6 | 6 | 14.2 | 9.5 |
| United Kingdom | 6 | 13 | 0.7 | 0.0 |
| United States | 6 | 6 | 0.7 | 0.0 |
| Yemen, Rep. | 6 | 12 | 83.0 | 0.0 |
| Zambia | 6 | 18 | 28.4 | 1.3 |
| Bahamas, the | 7 | 31 | 8.5 | 0.0 |
| Bahrain | 7 | 9 | 0.5 | 195.2 |
| Bangladesh | 7 | 44 | 36.2 | 0.0 |
| Benin | 7 | 31 | 155.5 | 290.8 |
| Croatia | 7 | 22 | 8.4 | 13.4 |
| Iran, Islamic Rep. | 7 | 9 | 3.9 | 0.8 |
| Kazakhstan | 7 | 20 | 4.8 | 13.4 |
| Lao PDR | 7 | 100 | 12.3 | 0.0 |
| Lesotho | 7 | 40 | 27.0 | 11.9 |
| Lithuania | 7 | 26 | 2.4 | 31.1 |
| Mali | 7 | 15 | 89.2 | 334.6 |
| Micronesia, Fed. Sts. | 7 | 16 | 136.9 | 0.0 |
| Mongolia | 7 | 13 | 3.0 | 44.0 |
| Nepal | 7 | 31 | 53.6 | 0.0 |
| Paraguay | 7 | 35 | 56.7 | 0.0 |
| Puerto Rico | 7 | 7 | 0.7 | 0.0 |
| Serbia | 7 | 13 | 7.1 | 6.1 |
| Solomon Islands | 7 | 57 | 52.7 | 0.0 |
| St. Vincent and the Grenadines | 7 | 11 | 21.0 | 0.0 |
| Syrian Arab Republic | 7 | 17 | 27.8 | 1,012.5 |
| Thailand | 7 | 32 | 6.3 | 0.0 |
| Togo | 7 | 75 | 205.0 | 514.0 |
| Uzbekistan | 7 | 15 | 11.2 | 13.8 |
| Angola | 8 | 68 | 151.1 | 29.0 |
| Antigua and Barbuda | 8 | 21 | 9.6 | 0.0 |
| Austria | 8 | 28 | 5.1 | 52.0 |
| Bhutan | 8 | 46 | 8.0 | 0.0 |
| Central African Republic | 8 | 22 | 244.9 | 507.1 |
| Czech Republic | 8 | 15 | 9.2 | 30.5 |
| Dominican Republic | 8 | 19 | 17.3 | 0.0 |
| El Salvador | 8 | 17 | 38.7 | 2.9 |
| Fiji | 8 | 46 | 25.3 | 0.0 |
| Gambia, the | 8 | 27 | 215.1 | 0.0 |
| Ghana | 8 | 33 | 26.4 | 13.4 |
| Guyana | 8 | 34 | 32.8 | 0.0 |
| Japan | 8 | 23 | 7.5 | 0.0 |
| Jordan | 8 | 13 | 49.5 | 19.9 |
| Korea, Rep. | 8 | 14 | 14.7 | 0.0 |
| Mexico | 8 | 13 | 11.7 | 8.9 |
| Moldova | 8 | 10 | 7.0 | 11.4 |
| Nigeria | 8 | 31 | 76.7 | 0.0 |
| Palau | 8 | 28 | 4.3 | 11.6 |
| Papua New Guinea | 8 | 56 | 20.5 | 0.0 |
| St. Kitts and Nevis | 8 | 45 | 11.9 | 0.0 |
| United Arab Emirates | 8 | 15 | 6.2 | 0.0 |
| Vanuatu | 8 | 39 | 42.0 | 0.0 |
| Belize | 9 | 44 | 50.6 | 0.0 |
| Cambodia | 9 | 85 | 138.4 | 36.6 |
| Cape Verde | 9 | 24 | 17.0 | 38.9 |
| Chile | 9 | 27 | 6.9 | 0.0 |
| Colombia | 9 | 20 | 12.8 | 0.0 |
| Gabon | 9 | 58 | 17.8 | 26.5 |
| Germany | 9 | 18 | 4.7 | 0.0 |
| Indonesia | 9 | 60 | 26.0 | 59.7 |
| Kosovo | 9 | 52 | 43.3 | 169.5 |
| Malaysia | 9 | 11 | 11.9 | 0.0 |
| Mauritania | 9 | 19 | 34.7 | 450.4 |
| Niger | 9 | 17 | 118.7 | 613.7 |
| Peru | 9 | 41 | 24.5 | 0.0 |
| Russian Federation | 9 | 30 | 2.7 | 1.8 |
| Seychelles | 9 | 38 | 7.3 | 0.0 |
| Trinidad and Tobago | 9 | 43 | 0.7 | 0.0 |
| Botswana | 10 | 61 | 2.1 | 0.0 |
| Congo, Rep. | 10 | 37 | 86.5 | 96.5 |
| Côte d'Ivoire | 10 | 40 | 133.3 | 204.9 |
| Malawi | 10 | 39 | 108.0 | 0.0 |
| Mozambique | 10 | 26 | 19.3 | 0.0 |
| Namibia | 10 | 66 | 20.4 | 0.0 |
| Pakistan | 10 | 20 | 5.8 | 0.0 |
| São Tomé and Principe | 10 | 144 | 81.7 | 0.0 |
| Spain | 10 | 47 | 15.0 | 12.8 |
| Sudan | 10 | 36 | 36.0 | 0.0 |
| Timor-Leste | 10 | 83 | 4.1 | 202.9 |
| Tunisia | 10 | 11 | 5.7 | 0.0 |
| Ukraine | 10 | 27 | 5.8 | 153.5 |
| Zimbabwe | 10 | 96 | 499.5 | 0.0 |
| Burundi | 11 | 32 | 151.6 | 0.0 |
| Comoros | 11 | 24 | 182.1 | 261.8 |
| Djibouti | 11 | 37 | 195.1 | 500.5 |
| Guatemala | 11 | 29 | 45.4 | 23.5 |
| Iraq | 11 | 77 | 75.9 | 30.3 |
| Uruguay | 11 | 65 | 40.0 | 0.0 |
| Vietnam | 11 | 50 | 13.3 | 0.0 |
| West Bank and Gaza | 11 | 49 | 55.0 | 220.4 |
| Bosnia and Herzegovina | 12 | 60 | 15.8 | 29.8 |
| Cameroon | 12 | 34 | 121.1 | 182.9 |
| Costa Rica | 12 | 60 | 20.0 | 0.0 |
| Kenya | 12 | 34 | 36.5 | 0.0 |
| Montenegro | 12 | 13 | 2.6 | 0.0 |
| Tajikistan | 12 | 25 | 24.3 | 9.9 |
| Tanzania | 12 | 29 | 36.8 | 0.0 |
| Congo, Dem. Rep. | 13 | 149 | 391.0 | 0.0 |
| Ecuador | 13 | 64 | 37.7 | 10.6 |
| Eritrea | 13 | 84 | 76.5 | 297.0 |
| Guinea | 13 | 41 | 139.2 | 489.7 |
| Haiti | 13 | 195 | 227.9 | 22.4 |
| Honduras | 13 | 14 | 47.3 | 17.3 |
| India | 13 | 30 | 66.1 | 210.9 |
| Kuwait | 13 | 35 | 1.0 | 59.2 |
| Suriname | 13 | 694 | 112.8 | 0.7 |
| Swaziland | 13 | 61 | 33.9 | 0.5 |
| Algeria | 14 | 24 | 12.1 | 31.0 |
| China | 14 | 37 | 4.9 | 130.9 |
| Argentina | 15 | 27 | 11.0 | 2.9 |
| Bolivia | 15 | 50 | 99.2 | 2.5 |
| Greece | 15 | 19 | 10.9 | 21.4 |
| Philippines | 15 | 52 | 28.2 | 5.5 |
| Brazil | 16 | 120 | 6.9 | 0.0 |
| Guinea-Bissau | 16 | 213 | 323.0 | 779.9 |
| Venezuela, R.B. | 16 | 141 | 24.0 | 0.0 |
| Brunei Darussalam | 18 | 116 | 9.8 | 0.0 |
| Uganda | 18 | 25 | 84.4 | 0.0 |
| Chad | 19 | 75 | 176.7 | 369.3 |
| Equatorial Guinea | 20 | 136 | 100.4 | 12.4 |