Doing Business 2015: Croatia Summary
Core Content Overview
The Doing Business 2015 report evaluates the ease of doing business for small to medium-sized enterprises (SMEs) across 189 economies, including Croatia. It measures regulatory performance in 10 key areas: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The report also includes labor market regulation, which is not part of the aggregate ranking but is presented in the economy profile.
Key Methodological Changes in 2015
- Distance to Frontier (DTF) scores are now used to calculate the ease of doing business ranking.
- For 11 large economies (including Croatia), data for a second city has been added to improve accuracy.
- Getting credit indicators were revised: the strength of legal rights index and depth of credit information index now have a higher score range (12 and 8, respectively).
- The protecting investors indicator was renamed to protecting minority investors, with an expanded scope to include corporate governance.
- The resolving insolvency indicator was updated to include a measure of the strength of the legal framework.
- The paying taxes ranking uses a nonlinear approach to calculate the total tax rate.
- The employing workers indicator was renamed to labor market regulation, with a focus on the retail sector and expanded coverage to include labor disputes and worker benefits.
Croatia's Business Environment Performance
Ease of Doing Business Ranking
- DB2015 Rank: 65
- DB2014 Rank: 67 (adjusted for data and methodology changes)
- Rank Change: Improved by 2 positions
Distance to Frontier (DTF) Score
- DB2015 DTF: 66.5
- DB2014 DTF: 64.4
- DTF Change: Increased by 2.1 points
Comparative Performance
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Starting a Business |
88 |
85 |
New Zealand (1) |
| Procedures (number) |
7.0 |
7.0 |
New Zealand (1.0) |
| Time (days) |
15.0 |
15.0 |
New Zealand (0.5) |
| Cost (% of income per capita) |
3.5 |
9.1 |
Slovenia (0.0) |
| Paid-in min. capital (% of income per capita) |
26.6 |
26.9 |
112 Economies (0.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Dealing with Construction Permits |
178 |
185 |
Hong Kong SAR, China (1) |
| Procedures (number) |
21.0 |
22.0 |
12 Economies (5.0) |
| Time (days) |
188.0 |
379.0 |
Singapore (26.0) |
| Cost (% of warehouse value) |
10.9 |
11.2 |
Qatar (0.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Getting Electricity |
59 |
55 |
Korea, Rep. (1) |
| Procedures (number) |
5.0 |
5.0 |
12 Economies (3.0) |
| Time (days) |
70.0 |
70.0 |
Korea, Rep. (18.0) |
| Cost (% of income per capita) |
316.7 |
319.8 |
Japan (0.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Registering Property |
92 |
91 |
Georgia (1) |
| Procedures (number) |
5.0 |
5.0 |
4 Economies (1.0) |
| Time (days) |
72.0 |
72.0 |
3 Economies (1.0) |
| Cost (% of property value) |
5.0 |
5.0 |
4 Economies (0.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Getting Credit |
61 |
55 |
New Zealand (1) |
| Strength of legal rights index |
5 |
5 |
3 Economies (12) |
| Depth of credit information index |
6 |
6 |
23 Economies (8) |
| Credit bureau coverage (% of adults) |
100.0 |
100.0 |
Portugal (100.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Protecting Minority Investors |
62 |
61 |
New Zealand (1) |
| Strength of minority investor protection index |
5.8 |
5.8 |
New Zealand (8.2) |
| Shareholder governance index |
6.5 |
6.5 |
France (7.8) |
| Conflict of interest regulation index |
5.0 |
5.0 |
Singapore (9.3) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Paying Taxes |
36 |
33 |
United Arab Emirates (1) |
| DTF Score |
82.92 |
83.54 |
United Arab Emirates (99.44) |
| Payments (number per year) |
19.0 |
19.0 |
Hong Kong SAR, China (3.0) |
| Time (hours per year) |
208.0 |
196.0 |
Luxembourg (55.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Trading Across Borders |
86 |
88 |
Singapore (1) |
| DTF Score |
74.25 |
73.24 |
Singapore (96.47) |
| Documents to export (number) |
6 |
6 |
Ireland (2) |
| Time to export (days) |
16.0 |
18.0 |
5 Economies (6.0) |
| Cost to export (US$ per container) |
1,335.0 |
1,335.0 |
Timor-Leste (410.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Enforcing Contracts |
54 |
56 |
Singapore (1) |
| DTF Score |
64.81 |
64.81 |
Singapore (89.54) |
| Time (days) |
572.0 |
572.0 |
Singapore (150.0) |
| Cost (% of claim) |
13.8 |
13.8 |
Iceland (9.0) |
| Indicator |
Croatia DB2015 |
Croatia DB2014 |
Comparator Economies |
| Resolving Insolvency |
56 |
56 |
Finland (1) |
| DTF Score |
53.92 |
53.82 |
Finland (93.85) |
| Time (years) |
3.1 |
3.1 |
Ireland (0.4) |
| Cost (% of estate) |
14.5 |
14.5 |
Norway (1.0) |
| Recovery rate (cents on the dollar) |
30.5 |
30.3 |
Japan (92.9) |
| Strength of insolvency framework index |
12.0 |
12.0 |
5 Economies (15.0) |
Main Findings
- Croatia's ease of doing business ranking improved slightly from 67 to 65 in 2015, indicating progress in regulatory reforms.
- The distance to frontier score increased by 2.1 points, showing a closer alignment with best practices.
- In starting a business, Croatia ranked 88th, with a DTF score of 85.43 and 7 procedures. It performed better than its regional neighbors but lagged behind top performers like New Zealand.
- Dealing with construction permits remained a challenge, with Croatia ranking 178th and a DTF score of 44.97.
- Getting electricity was relatively efficient, with Croatia ranking 59th and a DTF score of 80.05, though still behind leaders like South Korea.
- Registering property was ranked 92nd, with a DTF score of 66.44, and Croatia performed better than most regional economies.
- Getting credit ranked 61st, with a DTF score of 55.00. Croatia's credit bureau coverage was 100%, but its depth of credit information index was low.
- Protecting minority investors ranked 62nd, with a DTF score of 57.50, indicating room for improvement in shareholder rights and governance.
- Paying taxes ranked 36th, with a DTF score of 82.92, showing a more efficient system than many economies, though still below the top performer, the United Arab Emirates.
- Trading across borders ranked 86th, with a DTF score of 74.25, and Croatia performed better than most comparator economies.
- Enforcing contracts ranked 54th, with a DTF score of 64.81, and Croatia's time and cost were relatively high compared to top performers like Singapore.
- Resolving insolvency ranked 56th, with a DTF score of 53.92, and Croatia's recovery rate and cost were moderate compared to global leaders like Finland.
Conclusion
Croatia's business environment shows progress in several areas, particularly in paying taxes and registering property, but significant challenges remain in areas like dealing with construction permits and enforcing contracts. The report highlights the importance of continued regulatory reforms to improve the business climate and align with global best practices.