Each year, the World Bank prepares the Doing Business report, which ranks countries in the world according to how favorable conditions are for doing business in a particular location. But this year, the scandal confused reporters: it turned out that the results were shaken in 2018, 2019 and 2020.
In addition to the names of several South American and Middle Eastern countries, China has led by accusations of influencing its ranking in the report. Many said it was doubtful that the largest Asian country had just raised its stake in the World Bank when it improved its ranking in Doing Business. classification. The scandal swelled to the point that the World Bank website said: Comment the new document Preparation and internal investigation. Based on this, a decision will be made whether to continue the series or to publish the reports in another form. Report completed: No further publications have been produced (at the moment).
Doing Business is also a statement of competitiveness that shows which countries expect and receive international capital on the best terms. It is often the case that when investors consider foreign expansion, they take into account written studies on countries.
The list includes 3 countries alternately on the platform for years. New ZealandAnd Singapore And Hong Kong Take the lead in starting and running a business. Denmark, South Korea, Georgia, UK, Norway, Sweden and the USA are in the top ten, with Hungary at 52nd in the latest rankings.
Dr.. Kasaba Majyar A Crystal in the world According to its CEO, the first criterion for ranking is how easy it is to start a business in a particular country. This applies to company registration, legal duties and costs incurred in the beginning. It is also important how difficult or easy it is to obtain building and electricity permits, how property ownership is registered, and how quickly the rate of obtaining a loan is. The protection of minority property is also important, as is the administration and the tax system. They will also examine the development of logistics suitable for international trade, as well as how easy it is to comply with contractual obligations in a particular country. Last but not least, the possibilities of reorganization are taken into account, that is, if the company is on the verge of bankruptcy, how easy it will be to restore the business of the company, said the expert.
It’s better to do business in small countries, but why?
After examining each country individually by the World Bank, it analyzed the information collected and based on this list. Let’s take a closer look at the top three.
Currently, New Zealand has the most points for starting a business, in addition to commercial credit and entering real estate ownership is the best. However, it is not surprising that because of its location, it was weaker in terms of international trade and logistics. Both personal income tax and corporate tax are relatively high for them, with the latter accounting for 28 percent, for example, but there are a number of tax credits that can secure tax havens.
Second place is Singapore, which is a recognized player in international business, and an important financial center. It has proven to be the strongest in terms of contractual legal certainty: the authorities, courts and legal procedures are best suited to enforce the contracts made there by the partners. It is also worth noting that Singapore has also gained prominence in terms of protecting minority rights and starting a business. Interestingly, the taxes are done on a regional basis, which means that corporations only have to tax Singapore income and many international incomes are exempt from tax. A common feature of New Zealand and Singapore is that companies cannot be completely foreign in management, and it is necessary to appoint a local director.
The third is Hong Kong, which has achieved the best position in obtaining building permits, in addition to providing very favorable conditions for companies in terms of taxation and tax obligations. The country has also done well in the speed of getting electricity and has an outstanding infrastructure. Like Singapore, Hong Kong has region-based taxes, so transactions made overseas are not subject to tax. The two Asian countries have concluded a number of agreements to avoid double taxation. For this reason, it is no coincidence that a large percentage of the largest foreign investors in China come from Hong Kong and Singapore. Thus, foreign investors usually start business in these two countries for the first time and build their Asian investments from there, said Dr. Csaba Magyar.
Why are they on the platform?
New Zealand has long been doing a lot to attract foreign investors by constantly improving its competitiveness. They also strive to retain an intellectual workforce, as the financial centers of Australia and Southeast Asia have a continual draining effect on a skilled and highly skilled local workforce. On the other hand, the presence of foreign investors helps to keep professionals at home, as is the case in Singapore and Hong Kong, which are also heavily influenced by Anglo-Saxon business. This is one reason for the solution: Decades ago, it was recognized that providing services to international investors that would keep them afloat would be beneficial to the country.
However, Hong Kong’s reputation has recently been altered by the repeated interference of the Chinese leadership, leading many investors to re-evaluate their views on the city-state. Of course, the Chinese government also sees the value of Hong Kong and has no interest in destroying one of the strongholds of the global economy, but at the same time it wants to condition cooperation. More investors don’t like it, the expert said, so they’ve taken to Singapore and New Zealand.
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