#

Ease of Doing Business in

Japan

Japan Download Profile (1996.9KB, pdf)
Region OECD high income
Income Category High income
Population 126,958,472
GNI Per Capita (US$) 36,680
City covered Tokyo, Osaka

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 34 32 down
2
75.53 75.36 down
0.17
Starting a Business 89 81 down
8
86.09 86.09
-
Dealing with Construction Permits 60 58 down
2
73.33 73.32 up
0.01
Getting Electricity 15 14 down
1
89.88 89.88
-
Registering Property 49 49
-
73.91 73.91
-
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 53 51 down
2
60.00 60.00
-
Paying Taxes 70 71 up
1
77.03 75.32 up
1.71
Trading across Borders 49 49
-
86.43 86.43
-
Enforcing Contracts 48 48
-
65.26 65.26
-
Resolving Insolvency 2 2
-
93.34 93.41 down
0.07

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points):

93.16

DB 2016 DTF (% points):

93.23

Change in DTF (% points):

down0.07

Indicator Tokyo OECD high income
Recovery rate (cents on the dollar) info_outline 91.8 73.0
Time (years) info_outline 0.6 1.7
Cost (% of estate) info_outline 4.5 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 14 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 91.8
    Proceeding The most likely procedure applicable to our case study would be a reorganization (civil rehabilitation). Mirage may use the rehabilitation proceeding to gain time, find a new investor, or renegotiate its debt. The rehabilitation proceeding starts with Mirage (debtor) filing for court-supervised rehabilitation with the Tokyo District Court. Mirage’s managers will draft a rehabilitation plan which is likely to be approved by creditors. BizBank will likely support the rehabilitation proceedings as according to the case assumption the continuation of Mirage’s operations as a going concern would fetch 100% of Mirage's market value. reorganization
    Outcome Yes, the hotel will continue operating as a going concern after approval of the rehabilitation plan by creditors. going concern
    Time (in years) A reorganization (civil rehabilitation) procedure will approximately take 7 months in total. Creditors will file the proof of claims and, in the meantime, Mirage will prepare the plan. The plan will be submitted 3 months from the commencement (the court designates the date). The supervisor will submit his opinion regarding the plan and a creditors' meeting will be convened to approve the plan. 0.6
    Cost (% of estate) Cost incurred during the entire insolvency process mainly include court or government agency fees (1%), attorney fees (2%), costs of notification and publication (<1%), insolvency representative or receiver fees (1%), and fees of accountants, assessors, inspectors and other professionals (<1%). 4.5
    Answer Score
    Strength of insolvency framework index (0-16) 14.0
    Commencement of proceedings index (0-3) 3.0
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor may file for both liquidation and reorganization 1.0
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 6.0
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? Yes 1.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (b) Yes over ordinary unsecured creditors but not over secured creditors 1.0
    Reorganization proceedings index (0-3) 3.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? Yes 1.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? Yes 1.0
    Creditor participation index (0-4) 2.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? No 0.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? Yes 1.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.