Most of reforms addressed aspects of starting a business, dealing with construction permits, getting electricity, and paying taxes; the least reformed area was resolving insolvency.
Doing Business reforms
Removing obstacles to starting a business
Entrepreneurs in many economies continue to face significant barriers to entry when starting a business. Burdensome and costly regulation can prevent entrepreneurs from entering the formal economy, negatively impacting both the public and private sectors. Formalization allows entrepreneurs and employees to access the legal and financial services available to registered companies (such as obtaining loans and social security benefits). There is clear evidence that streamlining regulatory procedures can encourage business entry, business growth, job creation and rising national incomes.
Forty-six economies made starting a business easier in 2018/19 by reducing the procedures, time, cost, or paid-in minimum capital requirement associated with the process. The majority of these economies simplified registration formalities by abolishing requirements to obtain various approvals or consolidating several registration processes into one. Others streamlined post-registration procedures by eliminating the need to obtain a general business license or company seal whereas others set up or improved one-stop shops, reduced or eliminated minimum capital requirements and set up online platforms for entrepreneurs.
South Asia was the region with the highest share of reformers in the area of starting a business in 2018/19. Following the introduction of a one-stop shop for company registration in 2018, Pakistan further expanded the procedures covered by the one-stop shop in 2019. Starting from January 2019, incorporation application at the Securities and Exchange Commission of Pakistan allows founders to also register their company with the Employees Old-Age Benefits Institution, the Excise & Taxation Department of the District for Professional Tax, the Employees Social Security Institution and the Labor Department. Under the new system, while filing the incorporation application, founders can opt for all of the above registrations at the same time. In March 2019, India made starting a business easier by abolishing filing fees for the SPICe form, the electronic memorandum of association and the electronic articles of association for companies with an authorized share capital below IDR 1,500,000.