China

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  • Publicado : 27 de agosto de 2010
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When entrepreneurs draw up a business plan and try to get under way, the first hurdles they face are the procedures
required to incorporate and register the new firm beforethey can legally operate. Economies differ greatly in how
they regulate the entry of new businesses. In some the process is straightforward and affordable. In others theprocedures are so burdensome that entrepreneurs may have to bribe officials to speed up the process or may decide
to run their business informally.
Analysis shows that burdensomeentry regulations do not increase the quality of products, make work safer or
reduce pollution. Instead, they constrain private investment; push more people into the informaleconomy; increase
consumer prices and fuel corruption.
Methodology
The data on starting a business is based on a survey and research
investigating the procedures that a standardsmall to medium -size
company needs to complete to start operations legally. This includes
obtaining all necessary permits and licenses and completing all
requiredinscriptions, verifications and notifications with authorities
to enable the company to formally operate. Procedures are recorded
only where interaction is required with an externalparty. It is
assumed that the founders complete all procedures themselves unless
professional services (such as by a notary or lawyer) are required by
law. Voluntary proceduresare not counted, nor are industry–specific
requirements and utility hook-ups. Lawful shortcuts are counted.
It is assumed that all in formation is readily available to theentrepreneur, that there has been no prior contact with officials and
that all government and nongovernment entities involved in the
process function without corruption
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