Doing Business 2015: Nepal Summary
Core Content
Doing Business 2015 is a World Bank Group flagship report that evaluates the ease of doing business in 189 economies by measuring regulations across 11 key areas in the business life cycle. This summary focuses on Nepal and provides an overview of its performance in these areas, alongside comparator economies and global best performers.
Main Indicators and Rankings
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Starting a Business |
Rank: 104 |
Rank: 97 |
Afghanistan: 24, Bhutan: 92, China: 128, India: 158, Pakistan: 116, Sri Lanka: 104 |
New Zealand (1) |
| DTF Score |
83.01 |
82.71 |
New Zealand (99.96) |
- |
| Procedures (number) |
7.0 |
7.0 |
- |
- |
| Time (days) |
17.0 |
17.0 |
- |
- |
| Cost (% of income per capita) |
32.2 |
34.6 |
- |
Slovenia (0.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Dealing with Construction Permits |
Rank: 91 |
Rank: 126 |
Afghanistan: 185, Bhutan: 131, China: 179, India: 121, Pakistan: 125, Sri Lanka: 60 |
Hong Kong SAR, China (1) |
| DTF Score |
71.83 |
64.87 |
Hong Kong SAR, China (95.53) |
- |
| Procedures (number) |
10.0 |
12.0 |
- |
- |
| Time (days) |
86.0 |
118.0 |
- |
- |
| Cost (% of warehouse value) |
9.4 |
10.2 |
- |
Qatar (0.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Getting Electricity |
Rank: 85 |
Rank: 78 |
Afghanistan: 141, Bhutan: 72, China: 124, India: 137, Pakistan: 146, Sri Lanka: 100 |
Korea, Rep. (1) |
| DTF Score |
76.07 |
75.67 |
Korea, Rep. (99.83) |
- |
| Procedures (number) |
5.0 |
5.0 |
- |
- |
| Time (days) |
70.0 |
70.0 |
- |
- |
| Cost (% of income per capita) |
1,284.9 |
1,380.7 |
- |
Japan (0.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Registering Property |
Rank: 27 |
Rank: 29 |
Afghanistan: 183, Bhutan: 86, China: 37, India: 121, Pakistan: 114, Sri Lanka: 131 |
Georgia (1) |
| DTF Score |
83.08 |
83.03 |
Georgia (99.88) |
- |
| Procedures (number) |
3.0 |
3.0 |
- |
- |
| Time (days) |
5.0 |
5.0 |
- |
- |
| Cost (% of property value) |
4.8 |
4.8 |
- |
4 Economies (0.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Getting Credit |
Rank: 116 |
Rank: 111 |
Afghanistan: 89, Bhutan: 71, China: 71, India: 36, Pakistan: 131, Sri Lanka: 89 |
New Zealand (1) |
| DTF Score |
35.00 |
35.00 |
New Zealand (100) |
- |
| Strength of legal rights index (0-12) |
7 |
7 |
- |
3 Economies (12) |
| Depth of credit information index (0-8) |
0 |
0 |
- |
23 Economies (8) |
| Credit registry coverage (% of adults) |
0.0 |
0.0 |
- |
Portugal (100.0) |
| Credit bureau coverage (% of adults) |
1.0 |
0.7 |
- |
23 Economies (100) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Protecting Minority Investors |
Rank: 71 |
Rank: 70 |
Afghanistan: 189, Bhutan: 104, China: 132, India: 7, Pakistan: 21, Sri Lanka: 51 |
New Zealand (1) |
| DTF Score |
56.67 |
56.67 |
New Zealand (81.67) |
- |
| Extent of conflict of interest regulation index (0-10) |
5.3 |
5.3 |
- |
Singapore (9.3) |
| Extent of shareholder governance index (0-10) |
6.0 |
6.0 |
- |
France (7.8) |
| Strength of minority investor protection index (0-10) |
5.7 |
5.7 |
- |
New Zealand (8.2) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Paying Taxes |
Rank: 126 |
Rank: 120 |
Afghanistan: 79, Bhutan: 86, China: 120, India: 156, Pakistan: 172, Sri Lanka: 158 |
United Arab Emirates (1) |
| DTF Score |
66.52 |
66.52 |
United Arab Emirates (99.44) |
- |
| Payments (number per year) |
34.0 |
34.0 |
- |
- |
| Time (hours per year) |
334.0 |
334.0 |
- |
- |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Trading Across Borders |
Rank: 171 |
Rank: 169 |
Afghanistan: 184, Bhutan: 165, China: 98, India: 126, Pakistan: 108, Sri Lanka: 69 |
Singapore (1) |
| DTF Score |
36.08 |
36.07 |
Singapore (96.47) |
- |
| Documents to export (number) |
11 |
11 |
Ireland (2) |
- |
| Time to export (days) |
40.0 |
42.0 |
- |
- |
| Cost to export (US$ per container) |
2,545.0 |
2,295.0 |
- |
Timor-Leste (410.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Documents to import (number) |
11 |
11 |
Ireland (2) |
- |
| Time to import (days) |
39.0 |
39.0 |
- |
- |
| Cost to import (US$ per container) |
2,650.0 |
2,400.0 |
- |
Singapore (440.0) |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Enforcing Contracts |
Rank: 134 |
Rank: 134 |
Afghanistan: 183, Bhutan: 74, China: 35, India: 186, Pakistan: 161, Sri Lanka: 165 |
Singapore (1) |
| DTF Score |
49.65 |
49.65 |
Singapore (89.54) |
- |
| Time (days) |
910.0 |
910.0 |
- |
- |
| Cost (% of claim) |
26.8 |
26.8 |
- |
Iceland (9.0) |
| Procedures (number) |
39.0 |
39.0 |
- |
- |
| Indicator |
Nepal DB2015 |
Nepal DB2014 |
Comparator Economies |
Best Performer |
| Resolving Insolvency |
Rank: 82 |
Rank: 78 |
Afghanistan: 159, Bhutan: 189, China: 53, India: 137, Pakistan: 78, Sri Lanka: 72 |
Finland (1) |
| DTF Score |
45.41 |
45.41 |
Finland (93.85) |
- |
| Time (years) |
2.0 |
- |
Ireland (0.4) |
- |
| Cost (% of estate) |
9.0 |
9.0 |
- |
Norway (1.0) |
| Recovery rate (cents on the dollar) |
43.7 |
43.7 |
Japan (92.9) |
- |
| Strength of insolvency framework index (0-16) |
7 |
7 |
- |
5 Economies (15.0) |
Key Findings
- Ease of Doing Business Rank: Nepal ranked 108 in 2015, a slight improvement from 109 in 2014.
- Distance to Frontier (DTF) Score: Nepal's DTF score improved from 59.6 to 60.3, showing a small but positive movement toward the best practices.
- Starting a Business: Nepal has a relatively high number of procedures (7), but it lags behind best performers like New Zealand, which has only 1 procedure.
- Dealing with Construction Permits: Nepal has 10 procedures and takes 86 days, which is worse than the global best performer, Hong Kong SAR, China, which has only 5 procedures and takes 26 days.
- Getting Electricity: Nepal has 5 procedures and takes 70 days, compared to the global best performer, Korea, Rep., which has 3 procedures and takes 18 days.
- Registering Property: Nepal has a DTF score of 83.08, which is above the regional average, but still far behind Georgia, the best performer, which has a score of 99.88.
- Getting Credit: Nepal's DTF score is 35, significantly below the global best performer, New Zealand, which has a score of 100.
- Protecting Minority Investors: Nepal's DTF score is 56.67, which is relatively low compared to New Zealand's 81.67.
- Paying Taxes: Nepal has a DTF score of 66.52, which is below the best performer, the United Arab Emirates, with a score of 99.44.
- Trading Across Borders: Nepal has a DTF score of 36.08, much lower than Singapore's 96.47.
- Enforcing Contracts: Nepal's DTF score is 49.65, which is below the global best performer, Singapore, with a score of 89.54.
- Resolving Insolvency: Nepal's DTF score is 45.41, significantly lower than Finland's 93.85.
Methodology Notes
- The report covers 11 key areas in the business life cycle, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving insolvency, and labor market regulation.
- DTF Score is used to measure how far an economy is from the best performance in each indicator, on a scale from 0 to 100.
- The rankings are based on the average DTF scores across the 10 topics included in the aggregate ranking.
- Data Limitations: The report does not cover all aspects of the business environment, such as infrastructure quality beyond electricity and trade, or macroeconomic conditions. It focuses on regulatory efficiency and business process indicators.
- Methodological Changes in 2015: The methodology was updated to include more detailed aspects of business regulations, such as corporate governance and insolvency frameworks, and the DTF score is now calculated differently for paying taxes.
Conclusion
Nepal has made small improvements in some areas, such as the distance to frontier and ease of doing business ranking, but still faces significant challenges in areas like getting credit, enforcing contracts, and resolving insolvency. The report highlights the importance of regulatory reform and the need for further improvements to enhance the business environment. It also provides a framework for comparing Nepal's performance with other economies and identifying areas where reforms can have the greatest impact.