China

Ease of Doing Business in

China

This page summarizes Doing Business 2013 data for China. The first table lists the overall "Ease of Doing Business" rank (out of 185 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

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Economy Summary
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Region East Asia & Pacific
Income Category Upper middle income
Population 1,344,130,000
GNI Per Capita (US$) 4,930
Doing Business 2013 Rank Doing Business 2012 Rank Change in Rank
91 91 0

Doing Business 2013 DTF** (% points) Doing Business 2012 DTF** (% points) Improvement in DTF** (% points)
60.6 59.5 down 1.1
Topic Rankings DB 2013 Rank DB 2012 Rank Change in Rank
Starting a Business 151 153 up 2
Dealing with Construction Permits 181 181 No change
Getting Electricity 114 113 up -1
Registering Property 44 41 up -3
Getting Credit 70 67 up -3
Protecting Investors 100 98 up -2
Paying Taxes 122 118 up -4
Trading Across Borders 68 60 up -8
Enforcing Contracts 19 20 up 1
Resolving Insolvency 82 78 up -4

Economy Profile

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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 2013 Rank 151 DB 2012 Rank 153 Change in Rank up2
DB 2013 DTF** (% points) 67.5 DB 2012 DTF** (% points) 63.8 Improvement in DTF** (% points) up3.7
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 36 12

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)
2.1 22.4 4.5

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)
85.7 13.4 13.3
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 registrationfor both state and local tax with the tax bureau 11 calendar 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 indicators across all economies included in Doing Business since each indicator was 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...

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