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Ease of Doing Business in

Taiwan, China

Taiwan, China Download Profile (1729.4KB, pdf)
Region East Asia & Pacific
Income Category High income
Population 23,492,074
GNI Per Capita (US$) 22,267
City covered Taipei

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 11 10 down
1
81.09 81.08 down
0.01
Starting a Business 19 16 down
3
94.42 94.41 up
0.01
Dealing with Construction Permits 3 3
-
86.30 86.29 up
0.01
Getting Electricity 2 2
-
99.44 99.43 up
0.01
Registering Property 17 17
-
83.89 83.89
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 22 18 down
4
70.00 70.00
-
Paying Taxes 30 32 up
2
84.78 84.79 down
0.01
Trading across Borders 68 67 down
1
80.11 80.11
-
Enforcing Contracts 14 15 up
1
73.49 73.49
-
Resolving Insolvency 22 21 down
1
78.46 78.41 up
0.05

DB 2017 Rank:

22

DB 2016 Rank:

21

Change in Rank:

down1

DB 2017 DTF (% points):

78.46

DB 2016 DTF (% points):

78.41

Change in DTF (% points):

up0.05

Indicator Taiwan, China East Asia & Pacific OECD high income
Recovery rate (cents on the dollar) info_outline 81.9 33.9 73.0
Time (years) info_outline 1.9 2.6 1.7
Cost (% of estate) info_outline 4 20.6 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 .. ..
Strength of insolvency framework index (0-16) info_outline 11 7.1 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 81.9
    Proceeding Mirage management will initiate reorganization as this is consistent with management's intent to keep the business operating and would also maximize the value of the asset from the perspective of BizBank. reorganization
    Outcome The hotel will continue operating as a going concern after the reorganization plan is approved by creditors. going concern
    Time (in years) The reorganization proceeding until the reorganization plan is approved by creditors takes approximate 1.9 years. After Mirage filing the reorganization petition at Taipei District Court, the Court reviews the material, accepts Mirage case for consideration and appoints administrator usually in half a year. The insolvency administrator is responsible for finalizing creditors' claims and holding the creditor's meeting, which takes about an additional 2 months. In the meantime, Mirage's management would prepare the reorganization plan and in practice it takes about 1 year to get the reorganization plan approved. 1.9
    Cost (% of estate) The costs associated with the case would amount to approximately 4% of the value of the debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees, attorney fees (1.5%), costs of notification and publication , insolvency representative or receiver fees (1-2%), and fees of accountants, assessors, inspectors and other professionals (0.5%). 4.0
    Answer Score
    Strength of insolvency framework index (0-16) 11.0
    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? (a) Debtor is generally unable to pay its debts as they mature 1.0
    Management of debtor's assets index (0-6) 5.5
    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? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    Reorganization proceedings index (0-3) 0.5
    Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    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? No 0.0
    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”.