Doing Business In India

INTRODUCTION
Doing bi shows us how easy or difficult it is for a local entrepreneur to open and run a small or medium-size business when complying with relevant regulations.
Doing Business provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations applying to domestic small to medium-size businesses through their life cycle.Economies are ranked from 1 to 183 by the ease of doing business index. For each economy the index is calculated as the ranking on the simple average of its percentile rankings on each of the 10 topics included in the index in Doing Business 2012: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes,trading across borders, enforcing contracts and resolving insolvency. The ranking on each topic is the simple average of the percentile rankings on its component indicators

We have chosen 2 indicators to describe which we thought are the most interesting for you:
1. Starting a business for a local entrepreneur
2. Paying taxes
THE BUSINESS ENVIRONMENT

Figure 1.1 Where economies stand inthe global ranking on the ease of doing business

Figure 1.2 How India and comparator economies rank on the ease of doing business

Figure 1.3 How India ranks on Doing Business topics

Figure 1.4 How far has India come in the areas measured by Doing Business?
Distance to frontier, 2005 and 2011

This measure shows the distance of each economy to the “frontier,” a synthetic measurebased on the most efficient practice or highest score observed for each Doing Business indicator across all economies and years included in the Doing Business sample since 2005. Nine areas of business regulation are covered.

STARTING A BUSINESS

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive theirfounders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to theirinvestments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

What do the indicators cover?

The ranking on the ease of starting a business is the simple average of the percentile rankings on the 4 componentindicators: procedures, time, cost and paid-in minimum capital requirement.
We assume that all information is readily available to the entrepreneur and that there has been no prior contact with officials. It also assumes that all government and nongovernment entities involved in the process function without corruption. And it assumes that the business:
* Is a limited liability company, located inthe largest business city.
* Conducts general commercial or industrial activities
* Has a start-up capital of 10 times income per capita.
* Has a turnover of at least 100 times income per capita.
* Does not qualify for any special benefits.
* Does not own real estate.
* Is 100% domestically owned.

WHAT THE STARTING A BUSINESS INDICATORS MEASURE | |
1.Procedures to legally start and operate a company (number) Preregistration (for example, name verification or reservation, notarization) Registration in the economy’s largest business city Postregistration (for example, social security registration, company seal) 2. Time required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure...