Doing Business 2015: Czech Republic Summary
Core Content
The Doing Business 2015 report evaluates the ease of doing business in the Czech Republic by analyzing regulations affecting 11 key areas in the business life cycle. It provides both a rank and a distance to frontier (DTF) score, benchmarking the Czech Republic against other economies and the global best practices. The report highlights the regulatory environment, changes in business regulations, and the implications for economic performance.
Main Indicators Overview
| Indicator |
Czech Republic DB2015 |
Czech Republic DB2014 |
Germany DB2015 |
Hungary DB2015 |
Italy DB2015 |
Poland DB2015 |
Slovak Republic DB2015 |
United Kingdom DB2015 |
Best Performer Globally DB2015 |
| Starting a Business (Rank) |
110 |
110 |
114 |
57 |
46 |
85 |
77 |
45 |
New Zealand (1) |
| Starting a Business (DTF Score) |
82.58 |
80.59 |
81.38 |
90.04 |
91.22 |
85.79 |
87.02 |
91.23 |
New Zealand (99.96) |
| Procedures (Number) |
9.0 |
9.0 |
9.0 |
4.0 |
5.0 |
4.0 |
7.0 |
6.0 |
112 Economies (0.0) |
| Time (Days) |
19.0 |
19.5 |
14.5 |
5.0 |
5.0 |
30.0 |
11.5 |
6.0 |
New Zealand (0.5) |
| Cost (% of Income per Capita) |
8.0 |
8.2 |
8.8 |
8.3 |
14.1 |
12.9 |
1.5 |
0.3 |
Slovenia (0.0) |
| Dealing with Construction Permits (Rank) |
139 |
136 |
8 |
103 |
116 |
137 |
110 |
17 |
Hong Kong SAR, China (1) |
| Dealing with Construction Permits (DTF Score) |
62.91 |
62.90 |
87.42 |
69.37 |
67.35 |
62.97 |
68.19 |
85.06 |
Hong Kong SAR, China (95.53) |
| Procedures (Number) |
24.0 |
24.0 |
8 |
23.0 |
10.0 |
19.0 |
10.0 |
9.0 |
12 Economies (1.0) |
| Time (Days) |
143.0 |
143.0 |
96.0 |
91.0 |
233.0 |
212.0 |
286.0 |
105.0 |
Singapore (26.0) |
| Cost (% of Warehouse Value) |
0.3 |
0.3 |
1.1 |
0.2 |
3.7 |
0.3 |
0.1 |
1.2 |
Qatar (0.0) |
| Getting Credit (Rank) |
23 |
45 |
23 |
17 |
89 |
17 |
36 |
17 |
New Zealand (1) |
| Getting Credit (DTF Score) |
70.00 |
60.00 |
70.00 |
75.00 |
45.00 |
75.00 |
65.00 |
75.00 |
New Zealand (100) |
| Strength of Legal Rights Index (0-12) |
7 |
5 |
6 |
10 |
2 |
7 |
7 |
7 |
3 Economies (12) |
| Depth of Credit Information Index (0-8) |
7 |
7 |
8 |
5 |
7 |
8 |
6 |
8 |
23 Economies (8) |
| Credit Registry Coverage (% of Adults) |
6.4 |
6.4 |
1.3 |
0.0 |
24.6 |
0.0 |
2.8 |
0.0 |
Portugal (100.0) |
| Credit Bureau Coverage (% of Adults) |
76.6 |
76.0 |
100.0 |
74.6 |
100.0 |
84.3 |
65.7 |
100.0 |
23 Economies (100.0) |
| Protecting Minority Investors (Rank) |
83 |
81 |
51 |
110 |
21 |
35 |
100 |
4 |
New Zealand (1) |
| Protecting Minority Investors (DTF Score) |
54.17 |
54.17 |
59.17 |
47.50 |
66.67 |
62.50 |
50.83 |
78.33 |
New Zealand (81.67) |
| Extent of Conflict of Interest Regulation Index (0-10) |
5.3 |
5.3 |
5.0 |
4.0 |
6.0 |
6.0 |
4.7 |
8.3 |
Singapore (9.3) |
| Extent of Shareholder Governance Index (0-10) |
5.5 |
5.5 |
6.8 |
5.5 |
7.3 |
6.5 |
5.5 |
7.3 |
France (7.8) |
| Strength of Minority Investor Protection Index (0-10) |
5.4 |
5.4 |
5.9 |
4.8 |
6.7 |
6.3 |
5.1 |
7.8 |
New Zealand (8.2) |
| Paying Taxes (Rank) |
119 |
116 |
68 |
88 |
141 |
87 |
100 |
16 |
United Arab Emirates (1) |
| Paying Taxes (DTF Score) |
67.66 |
67.91 |
77.02 |
73.27 |
62.13 |
73.51 |
71.57 |
90.52 |
United Arab Emirates (99.44) |
| Payments (Number per Year) |
8.0 |
8.0 |
9.0 |
11.0 |
15.0 |
18.0 |
20.0 |
8.0 |
Hong Kong SAR, China (3.0) |
| Time (Hours per Year) |
413.0 |
413.0 |
218.0 |
277.0 |
269.0 |
286.0 |
207.0 |
110.0 |
Luxembourg (55.0) |
| Cost (% of Claim) |
33.0 |
33.0 |
14.4 |
15.0 |
23.1 |
19.4 |
30.0 |
39.9 |
Iceland (9.0) |
| Trading Across Borders (Rank) |
58 |
57 |
18 |
72 |
37 |
41 |
71 |
15 |
Singapore (1) |
| Trading Across Borders (DTF Score) |
78.33 |
78.35 |
87.67 |
76.48 |
83.44 |
81.80 |
76.49 |
88.32 |
Singapore (96.47) |
| Documents to Export (Number) |
4 |
4 |
4 |
6 |
3 |
5 |
5 |
4 |
Ireland (2) |
| Time to Export (Days) |
17.0 |
17.0 |
9.0 |
17.0 |
19.0 |
15.0 |
16.0 |
8.0 |
5 Economies (6.0) |
| Cost to Export (US$ per Container) |
1,240.0 |
1,215.0 |
1,015.0 |
885.0 |
1,195.0 |
1,050.0 |
1,525.0 |
1,005.0 |
Timor-Leste (410.0) |
| Documents to Import (Number) |
6 |
6 |
4 |
6 |
3 |
4 |
5 |
4 |
Ireland (2) |
| Time to Import (Days) |
17.0 |
17.0 |
7.0 |
19.0 |
18.0 |
14.0 |
16.0 |
6.0 |
Singapore (4.0) |
| Cost to Import (US$ per Container) |
1,215.0 |
1,190.0 |
1,050.0 |
845.0 |
1,145.0 |
1,025.0 |
1,505.0 |
1,050.0 |
Singapore (440.0) |
| Enforcing Contracts (Rank) |
37 |
38 |
13 |
20 |
147 |
52 |
55 |
36 |
Singapore (1) |
| Enforcing Contracts (DTF Score) |
68.00 |
68.00 |
76.74 |
73.36 |
45.61 |
64.83 |
64.68 |
68.08 |
Singapore (89.54) |
| Time (Days) |
611.0 |
611.0 |
394.0 |
395.0 |
1,185.0 |
685.0 |
545.0 |
437.0 |
Singapore (150.0) |
| Cost (% of Claim) |
33.0 |
33.0 |
14.4 |
15.0 |
23.1 |
19.4 |
30.0 |
39.9 |
Iceland (9.0) |
| Procedures (Number) |
27.0 |
27.0 |
31.0 |
34.0 |
37.0 |
33.0 |
33.0 |
29.0 |
Singapore (21.0) |
| Resolving Insolvency (Rank) |
20 |
20 |
3 |
64 |
29 |
32 |
31 |
13 |
Finland (1) |
| Resolving Insolvency (DTF Score) |
77.50 |
77.19 |
91.78 |
49.78 |
71.29 |
69.73 |
69.93 |
82.04 |
Finland (93.85) |
| Time (Years) |
2.1 |
- |
1.2 |
2.0 |
1.8 |
3.0 |
4.0 |
1.0 |
Ireland (0.4) |
| Cost (% of Estate) |
17.0 |
17.0 |
8.0 |
14.5 |
22.0 |
15.0 |
18.0 |
6.0 |
Norway (1.0) |
| Outcome (0 as piecemeal sale and 1 as going concern) |
1 |
1 |
1 |
0 |
1 |
1 |
1 |
1 |
- |
| Recovery Rate (cents on the dollar) |
65.6 |
65.0 |
83.4 |
40.2 |
62.8 |
57.0 |
54.4 |
88.6 |
Japan (92.9) |
| Strength of Insolvency Framework Index (0-16) |
13.5 |
13.5 |
15.0 |
9.0 |
12.0 |
12.5 |
13.0 |
11.0 |
5 Economies (15.0) |
Key Information
- The Czech Republic ranked 44th in the ease of doing business (DB2015) and 47th in DB2014, showing a 3-point improvement.
- The distance to frontier (DTF) score increased from 69.8 in DB2014 to 71 in DB2015.
- The report includes comparator economies for each indicator to facilitate cross-country comparisons.
- The methodology underwent several updates in 2015, including:
- Nonlinear scoring for the paying taxes indicator.
- Expanded scope for protecting minority investors and resolving insolvency.
- Changes in data sources for some indicators, such as credit information and legal rights.
- The report highlights regulatory bottlenecks and areas of strength in the Czech Republic, using both rankings and DTF scores to assess performance.
- Ease of doing business rankings are based on a population-weighted average of DTF scores for economies with data on two cities.
- The DTF score measures how far an economy is from the best regulatory practices in each indicator, on a scale from 0 to 100, with 100 representing the frontier.
Main Viewpoints
- Starting a business in the Czech Republic requires 9 procedures, taking 19 days and costing 8% of income per capita, placing it at 110th globally.
- Dealing with construction permits involves 24 procedures, taking 143 days and costing 0.3% of warehouse value, ranking 139th.
- Registering property requires 3 procedures, taking 24 days and costing 4% of property value, placing it 31st globally.
- Getting credit is relatively efficient, with a DTF score of 70, and the Czech Republic ranks 23rd globally.
- Paying taxes involves 8 payments per year, taking 413 hours and costing 33% of claim, ranking 119th.
- Trading across borders is relatively efficient, with 4 documents to export and 6 to import, taking 17 days each, and ranking 58th.
- Enforcing contracts requires 27 procedures, taking 611 days and costing 33% of claim, ranking 37th.
- Resolving insolvency involves 2.1 years, costing 17% of estate, and ranks 20th globally.
Conclusion
The Doing Business 2015 report provides a comprehensive overview of the Czech Republic's business environment, highlighting both its strengths and areas for improvement. While the Czech Republic performs well in several areas, such as property registration and credit access, it still faces challenges in contract enforcement and insolvency resolution. The report underscores the importance of regulatory reforms and efficiency improvements in enhancing the business climate. The DTF scores and rankings are essential tools for policy makers to identify and address regulatory inefficiencies.