Lesotho

Ease of Doing Business in

Lesotho

This page shows summary Doing Business 2012 data for Lesotho. The first table lists the overall "Ease of Doing Business" rank (out of 183 economies) and the rankings by each topic. 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 Sub-Saharan Africa
Income Category Lower middle income
Population 2,084,182
GNI Per Capita (US$) 1,080.00
Doing Business 2012 Rank Doing Business 2011 Rank Change in Rank
143 142 down -1
Topic Rankings DB 2012 Rank DB 2011 Rank Change in Rank
Starting a Business 144 140 up -4
Dealing with Construction Permits 157 158 up 1
Getting Electricity 141 141 No change
Registering Property 150 145 up -5
Getting Credit 150 130 up -20
Protecting Investors 147 145 up -2
Paying Taxes 61 60 up -1
Trading Across Borders 147 148 up 1
Enforcing Contracts 102 111 up 9
Resolving Insolvency 71 73 up 2

Economy Profile

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Starting a Business

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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 2012 Rank 144 DB 2011 Rank 140 Change in Rank down-4
Indicator Lesotho Sub-Saharan Africa 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).

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Procedures (number)
7 8 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.

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Time (days)
40 37 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.

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Cost (% of income per capita)
24.9 81.2 4.7

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.

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Paid-in Min. Capital (% of income per capita)
11.2 129.8 14.1
No. Procedure Time to Complete Associated Costs
1 search company name 1-2 days LSL 5
2 Hire a registered legal practitioner to prepares and register company documents 20 days LSL 1,112
3 Have land lease stamped and pay the stamp duty. 1 day 0.8% on sublease rent, assuming the sublease rent is 10% of initial capital and it is a 5-10 years agreement
4 Receive an inspection by the Public Health Inspector 14 days LSL 30-60
5 Apply for operation license and register for taxes with the OSS at the Ministry of Trade and Industry. 1 day LSL 1000
* 6 Open a bank account and pay the required initial capital in a bank 3 days (simultaneous with previous procedures) no charge
* 7 File for workman’s compensation with an insurance company 1 day (simultaneous with previous procedures) no charge
* Takes place simultaneously with another procedure.

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