Doing Business 2012: Nepal Summary
Core Content
The Doing Business report by the World Bank and the International Finance Corporation evaluates the ease of doing business across 183 economies, focusing on 10 key areas in the business life cycle. The report provides quantitative indicators that measure regulatory efficiency and help identify areas for reform. It also introduces the distance to frontier measure, which compares an economy's performance to the best practices observed globally.
Key Indicators and Performance
Ease of Doing Business Ranking
- Nepal DB2012 Rank: 107
- Nepal DB2011 Rank: 110
- Change in Rank: Improved by 3 positions
- Regional Average (South Asia): 110
- Global Best Performer: New Zealand (rank 1)
Business Life Cycle Indicators
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Starting a Business |
100 |
95 |
Afghanistan: 30, Bangladesh: 86, India: 166, Maldives: 59, Pakistan: 90, Sri Lanka: 38 |
New Zealand (1) |
| Procedures (number) |
7 |
7 |
Afghanistan: 4, Bangladesh: 7, India: 12, Maldives: 5, Pakistan: 10, Sri Lanka: 4 |
Canada (1) |
| Time (days) |
29 |
31 |
Afghanistan: 7, Bangladesh: 19, India: 29, Maldives: 9, Pakistan: 21, Sri Lanka: 35 |
New Zealand (1) |
| Cost (% of income per capita) |
37.4 |
46.6 |
Afghanistan: 25.8, Bangladesh: 30.6, India: 46.8, Maldives: 8.9, Pakistan: 11.2, Sri Lanka: 4.7 |
Denmark (0.0) |
| Paid-in Min. Capital |
0.0 |
0.0 |
Afghanistan: 0.0, Bangladesh: 0.0, India: 149.6, Maldives: 3.5, Pakistan: 0.0, Sri Lanka: 0.0 |
82 Economies (0.0) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Dealing with Construction Permits |
140 |
161 |
Afghanistan: 162, Bangladesh: 82, India: 181, Maldives: 20, Pakistan: 104, Sri Lanka: 111 |
Hong Kong SAR, China (1) |
| Procedures (number) |
13 |
13 |
Afghanistan: 12, Bangladesh: 11, India: 34, Maldives: 8, Pakistan: 11, Sri Lanka: 18 |
Denmark (5) |
| Time (days) |
222 |
402 |
Afghanistan: 334, Bangladesh: 201, India: 227, Maldives: 174, Pakistan: 222, Sri Lanka: 217 |
Singapore (26) |
| Cost (% of income per capita) |
753.3 |
890.8 |
Afghanistan: 4876.4, Bangladesh: 154.5, India: 1631.4, Maldives: 12.7, Pakistan: 262.5, Sri Lanka: 40.6 |
Qatar (1.1) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Getting Electricity |
99 |
102 |
Afghanistan: 104, Bangladesh: 182, India: 98, Maldives: 132, Pakistan: 166, Sri Lanka: 95 |
Iceland (1) |
| Procedures (number) |
5 |
5 |
Afghanistan: 4, Bangladesh: 7, India: 7, Maldives: 6, Pakistan: 6, Sri Lanka: 4 |
Germany (3) |
| Time (days) |
70 |
74 |
Afghanistan: 109, Bangladesh: 372, India: 67, Maldives: 101, Pakistan: 206, Sri Lanka: 132 |
Germany (17) |
| Cost to get electricity (US$ per container) |
1960 |
1960 |
Afghanistan: 3545, Bangladesh: 965, India: 1095, Maldives: 1550, Pakistan: 660, Sri Lanka: 715 |
Malaysia (450) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Registering Property |
24 |
23 |
Afghanistan: 172, Bangladesh: 173, India: 97, Maldives: 152, Pakistan: 125, Sri Lanka: 161 |
New Zealand (3) |
| Procedures (number) |
3 |
3 |
Afghanistan: 9, Bangladesh: 8, India: 5, Maldives: 6, Pakistan: 6, Sri Lanka: 8 |
Portugal (1) |
| Time (days) |
5 |
5 |
Afghanistan: 250, Bangladesh: 245, India: 44, Maldives: 57, Pakistan: 50, Sri Lanka: 83 |
Portugal (1) |
| Cost (% of property value) |
5.0 |
4.8 |
Afghanistan: 5.0, Bangladesh: 6.6, India: 7.3, Maldives: 16.7, Pakistan: 7.7, Sri Lanka: 5.1 |
Slovak Republic (0.0) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Getting Credit |
67 |
64 |
Afghanistan: 150, Bangladesh: 78, India: 40, Maldives: 166, Pakistan: 67, Sri Lanka: 78 |
United Kingdom (1) |
| Strength of legal rights index (0-10) |
7 |
7 |
Afghanistan: 6, Bangladesh: 7, India: 8, Maldives: 4, Pakistan: 6, Sri Lanka: 4 |
New Zealand (10) |
| Depth of credit information index (0-6) |
3 |
3 |
Afghanistan: 0, Bangladesh: 2, India: 4, Maldives: 0, Pakistan: 4, Sri Lanka: 5 |
Japan (6) |
| Public registry coverage (% of adults) |
0.0 |
0.0 |
Afghanistan: 0.0, Bangladesh: 0.6, India: 0.0, Maldives: 0.0, Pakistan: 6.9, Sri Lanka: 0.0 |
Portugal (86.2) |
| Private bureau coverage (% of adults) |
0.3 |
0.3 |
Afghanistan: 0.0, Bangladesh: 0.0, India: 15.1, Maldives: 0.0, Pakistan: 2.0, Sri Lanka: 29.4 |
New Zealand (100.0) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Protecting Investors |
79 |
74 |
Afghanistan: 183, Bangladesh: 24, India: 46, Maldives: 79, Pakistan: 29, Sri Lanka: 46 |
New Zealand (1) |
| Extent of disclosure index (0-10) |
6 |
6 |
Afghanistan: 1, Bangladesh: 6, India: 7, Maldives: 0, Pakistan: 6, Sri Lanka: 6 |
France (10) |
| Extent of director liability index (0-10) |
1 |
1 |
Afghanistan: 1, Bangladesh: 7, India: 4, Maldives: 8, Pakistan: 6, Sri Lanka: 5 |
Singapore (9) |
| Ease of shareholder suits index (0-10) |
9 |
9 |
Afghanistan: 1, Bangladesh: 7, India: 7, Maldives: 5, Pakistan: 7, Sri Lanka: 7 |
New Zealand (10) |
| Strength of investor protection index (0-10) |
5.3 |
5.3 |
Afghanistan: 1.0, Bangladesh: 6.7, India: 6.0, Maldives: 5.3, Pakistan: 6.3, Sri Lanka: 6.0 |
New Zealand (9.7) |
| Indicator |
Nepal DB2012 |
Nepal DB2011 |
Comparator Economies |
Global Best Performer |
| Paying Taxes |
86 |
90 |
Afghanistan: 63, Bangladesh: 100, India: 147, Maldives: 1, Pakistan: 158, Sri Lanka: 173 |
Canada (8) |
| Payments (number per year) |
34 |
34 |
Afghanistan: 8, Bangladesh: 21, India: 33, Maldives: 3, Pakistan: 47, Sri Lanka: 71 |
Norway (4) |
| Time (hours per year) |
326 |
338 |
Afghanistan: 275, Bangladesh: 302, India: 254, Maldives: 0, Pakistan: 560, Sri Lanka: 256 |
Luxembourg (59) |
| Cost (% of estate) |
9 |
9 |
Afghanistan: 25, Bangladesh: 8, India: 9, Maldives: 4, Pakistan: 4, Sri Lanka: 5 |
Singapore (1) |
| Recovery rate (cents on the dollar) |
24.5 |
24.5 |
Afghanistan: 26.5, Bangladesh: 25.8, India: 20.1, Maldives: 50.4, Pakistan: 36.4, Sri Lanka: 48.3 |
Japan (92.7) |
Main Points
- Ease of Doing Business Index: Nepal ranks 107 out of 183 economies, indicating a moderate business environment.
- Distance to Frontier: This measure highlights how far Nepal has moved toward efficient business practices compared to the best performers.
- Starting a Business: Requires 7 procedures, takes 29 days, and costs 37.4% of income per capita. No minimum paid-in capital is required.
- Comparative Performance: Nepal performs relatively better than some comparator economies in certain areas but lags behind in others.
- Reforms: No significant reforms were recorded in Nepal from DB2005 to DB2012, suggesting a need for regulatory improvements.
Conclusion
The Doing Business 2012 report provides a comprehensive overview of Nepal's business environment, highlighting the challenges and opportunities in various areas. While Nepal has shown some improvement in rankings, there is still room for reform, particularly in areas such as getting credit and resolving insolvency. The report serves as a useful tool for policymakers to design targeted regulatory reforms that can enhance the ease of doing business and support economic growth.