2017年-世界发展银行全球_Economy_Profile_of_Armenia_67页_1mb

Summary of Doing Business 2018: Reforming to Create Jobs

Core Content

The Doing Business 2018 report, a flagship publication by the World Bank Group, evaluates the regulatory environment for businesses across 190 economies. It provides objective, quantitative indicators that measure the ease of doing business, focusing on key areas such as 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. Additionally, it includes features of labor market regulation.

The report encourages economies to reform their business regulations by offering measurable benchmarks and data for comparison. It also provides detailed subnational reports, allowing cities and regions to compare their regulatory environments and identify areas for improvement.

Key Indicators and Their Measures

Armenia's Economy Profile

• Region: Europe & Central Asia
• Income Category: Lower middle income
• Population: 2,924,816
• GNI Per Capita (US$): 3,760
• City Covered: Yerevan
• Ease of Doing Business Ranking: 107th out of 190 economies
• Distance to Frontier (DTF) Score: 25.5 (on a scale of 0 to 100)

Starting a Business in Armenia

• Procedures: 4 for men, 4 for women
• Time: 4.5 days for men, 4.5 days for women
• Cost: 0.9% of income per capita for men, 0.9% of income per capita for women
• Paid-in Minimum Capital: 0% of income per capita (no requirement)

Key Details:

• The company is a limited liability company (LLC), 100% domestically owned, with five married owners (no legal entities).
• It operates in Yerevan, has a start-up capital of 10 times income per capita, and employs between 10 and 50 domestic nationals.
• The company deed is 10 pages long.
• The business engages in general industrial or commercial activities, not foreign trade or special tax products.

Procedure Summary:

1. Register at the One-stop shop: 2 working days (1 day in practice), no charge.
2. Order a company seal: 1 day, cost AMD 15,500.
3. Register for VAT: 1 day, no charge (voluntary).
4. Register employees: Less than 1 day, no charge.

Dealing with Construction Permits in Armenia

• Procedures: 19
• Time: 98 days
• Cost: 0.9% of warehouse value
• Building Quality Control Index: 8.0 (on a scale of 0 to 15)

Key Details:

• The warehouse is for general storage, with a total area of 1,300.6 square meters and a value of 50 times income per capita.
• The construction company (BuildCo) is a limited liability company, 100% domestically owned, with a licensed architect and engineer.
• The warehouse construction takes 30 weeks, excluding administrative delays.

Procedure Summary:

1. Apply and obtain architectural-constructional assignment (AN3): 15 days, no charge.
2. Obtain topographic survey of the land plot: 10 days, cost AMD 35,000.
3. Request and obtain technical conditions approval from Veolia Water: 15 days, no charge.
4. Request and obtain technical conditions approval from Electrical Networks of Armenia: 15 days, no charge.
5. Request and obtain fire safety technical conditions: 3 days, no charge.
6. Request and obtain building permit from Yerevan Municipality: 15 days, cost AMD 350,000.
7. Notify State Inspection of the start of construction: 1 day, no charge.
8. Receive inspection by the Municipality: 1 day, no charge.
9. Receive inspection by State Inspection of Urban Development: 1 day, no charge.
10. Request water and sewage services: 9 days, cost AMD 2,600.
11. Receive water and sewage inspection and obtain connection: 1 day, no charge.
12. Submit construction logbook and request occupancy permit: 1 day, no charge.
13. Notify the Ministry of Urban Planning about the completion of construction: 1 day, no charge.
14. Receive final inspection from Ministry of Urban Planning: 1 day, no charge.
15. Receive final inspection from the Ministry of Emergency Situations: 7 days, no charge.
16. Receive final inspection from the Municipality: 1 day, no charge.
17. Obtain occupancy permit from the Municipality: 28 days, cost AMD 100,000.
18. Register the building with the Cadastre: 2 days, cost AMD 127,332.
19. Receive on-site inspection for building registration: 1 day, cost AMD 200,000.

Main Findings and Viewpoints

• Ease of Starting a Business: Armenia performs relatively well, with a low number of procedures, time, and cost compared to other economies in the region.
• Construction Permit Process: The process is complex, involving multiple steps and a high cost, which is a major challenge for businesses.
• Comparative Performance: While Armenia's DTF score is 25.5, it is significantly lower than the best performers like New Zealand and the United Kingdom, indicating room for improvement.
• Regulatory Efficiency: The report emphasizes the importance of simplifying procedures and reducing costs to improve the ease of doing business and create more jobs.

Conclusion

The Doing Business 2018 report highlights the importance of regulatory reform in fostering a more business-friendly environment. Armenia, while showing some efficiency in starting a business, faces challenges in the construction permit process, which remains costly and time-consuming. The report provides valuable insights and benchmarks for policymakers to identify areas for reform and improve the overall business climate.