Lesotho

Ease of Doing Business in

Lesotho

This page summarizes Doing Business 2015 data for Lesotho. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Sub-Saharan Africa
Income Category Lower middle income
Population 2,074,465
GNI Per Capita (US$) 1,550
City covered Maseru
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
128 128 0

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
56.64 55.98 down 0.66

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 2015 Rank 108 DB 2014 Rank*** 98 Change in Rank down-10
DB 2015 DTF** (% points) 82.84 DB 2014 DTF** (% points) 82.59 Change in DTF** (% points) up0.25

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

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)
7.0 7.8 4.8

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)
29.0 27.3 9.2

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)
9.4 56.2 3.4

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)
0.0 95.6 8.8
No. Procedure Time to Complete Associated Costs
1 Conduct a company name search and apply for business registration 7 days LSL 2 per page to certify the documents
* 2 Pay the registration fee at the Accounting window, Submit the receipt and Obtain company registration documents and TIN number 1 day (simultaneous with previous procedure) LSL 500 for a domestic company + LSL 30 for search of company name
3 Have land lease stamped and pay the stamp duty 1 day no charge
4 Receive an inspection by the Public Health Inspector and obtain health certificate 14 days LSL 60
5 Apply for an operational license 7 days no charge
* 6 Pay the operational license fee at the Accounting window, Submit the receipt and Obtain the operational license 1 day (simultaneous with previous procedure) LSL 650 for a retailer of domestic goods
* 7 File for workman’s compensation with an insurance company 1 day (simultaneous with previous procedures) no charge
* Takes place simultaneously with another procedure.

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

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

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