China

Ease of Doing Business in

China

This page summarizes Doing Business 2014 data for China. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region East Asia & Pacific
Income Category Upper middle income
Population 1,350,695,000
GNI Per Capita (US$) 5,740
City covered Shanghai
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
96 99 down 3

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
61.51 60.18 down 1.33
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.

Subnational Data


 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 158 DB 2013 Rank*** 153 Change in Rank down-5
DB 2014 DTF** (% points) 67.38 DB 2013 DTF** (% points) 66.99 Change in DTF** (% points) up0.39

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator China East Asia & Pacific OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

View methodology
Procedures (number)
13 7 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

View methodology
Time (days)
33.0 37.8 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

View methodology
Cost (% of income per capita)
2.0 29.8 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in Min. Capital (% of income per capita)
78.2 293.3 10.4
No. Procedure Time to Complete Associated Costs
1 Obtain a notice of pre-approval of the company name 1 day no charge
2 Open a preliminary bank account; deposit fund in the account and obtain the certificate of deposit 1 day no charge
3 Obtain capital verification report from an auditing firm 2 days CNY 350
4 Apply for registration certification "business license of enterprise legal person" with SAIC, the organization code certificate issued by the Quality and Technology Supervision Bureau and registration for both state and local tax with the tax bureau 11 days no charge (Fee exempted for micro and small size companies from 2012 to 2014 - otherwise 0.08% of registered capital)
5 Obtain the approval to make a company seal from the police department 1 day no charge
6 Make a company seal 1 day CNY 300
7 Pay the fee for the organization code certificate issued by the Quality and Technology Supervision Bureau at the time of pick-up 1 day CNY 102 (Production cost of CNY 18 for Organization Code Certificate is exempted for micro and small size companies from 2012 to 2014)
8 Register with the local statistics bureau 1 day no charge
* 9 Open a formal bank account of the company and transfer the registered capital to the account 1 day (simultaneous with previous procedure) no charge
10 Apply for the authorization to print or purchase financial invoices/receipts 10 days no charge (Fee exempted for micro and small size companies from 2012 to 2014)
11 Purchase uniform invoices 1 day no charge (Fee exempted for micro and small size companies from 2012 to 2014 - otherwise CNY 1.05-1.67 per book of invoices)
12 File for recruitment registration with local career service center 1 day no charge
* 13 Register with Social Welfare Insurance Center 1 day (simultaneous with previous procedure) no charge
* Takes place simultaneously with another procedure.

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

Explore Economy Data


- OR -

Close