| Doing Business 2012: Nepal | |||
| DB rank 2011 | 110 | ||
| DB rank 2012 (out of 183 economies) | 107 | ||
| Improvement in ranking (position) | 3 | ||
| Topic ranking | |||
| Topics | DB 2012 Rank | DB 2011 Rank | Change in Rank |
| Starting a Business | 100 | 95 | -5 |
| Dealing with Construction Permits | 140 | 161 | 21 |
| Getting Electricity | 99 | 102 | 3 |
| Registering Property | 24 | 23 | -1 |
| Getting Credit | 67 | 64 | -3 |
| Protecting Investors | 79 | 74 | -5 |
| Paying Taxes | 86 | 90 | 4 |
| Trading Across Borders | 162 | 161 | -1 |
| Enforcing Contracts | 137 | 137 | No change |
| Resolving Insolvency | 112 | 113 | 1 |
| Starting a Business | |||
| Indicator | Nepal | South Asia | OECD |
| Procedures (number) | 7 | 7 | 5 |
| Time (days) | 29 | 23 | 13 |
| Cost (% of income per capita) | 37.4 | 21.6 | 4.7 |
| Paid-in Min. Capital (% of income per capita) | 0 | 19.1 | 14.1 |
| Dealing with Construction Permits | |||
| Indicator | Nepal | South Asia | OECD |
| Procedures (number) | 13 | 16 | 14 |
| Time (days) | 222 | 222 | 152 |
| Cost (% of income per capita) | 753.3 | 980 | 54.1 |
| Getting Electricity | |||
| Indicator | Nepal | South Asia | OECD |
| Procedures (number) | 5 | 6 | 5 |
| Time (days) | 70 | 145 | 103 |
| Cost (% of income per capita) | 1,995.80 | 1,775.90 | 92.8 |
| Registering Property | |||
| Indicator | Nepal | South Asia | OECD |
| Procedures (number) | 3 | 6 | 5 |
| Time (days) | 5 | 103 | 31 |
| Cost (% of property value) | 5 | 7.3 | 4.4 |
| Getting Credit | |||
| Indicator | Nepal | South Asia | OECD |
| Strength of legal rights index (0-10) | 7 | 6 | 7 |
| Depth of credit information index (0-6) | 3 | 3 | 5 |
| Public registry coverage (% of adults) | 0 | 1.7 | 9.5 |
| Private bureau coverage (% of adults) | 0.3 | 5.8 | 63.9 |
| Protecting Investors | |||
| Indicator | Nepal | South Asia | OECD |
| Extent of disclosure index (0-10) | 6 | 5 | 6 |
| Extent of director liability index (0-10) | 1 | 4 | 5 |
| Ease of shareholder suits index (0-10) | 9 | 6 | 7 |
| Strength of investor protection index (0-10) | 5.3 | 5 | 6 |
| Paying Taxes | |||
| Indicator | Nepal | South Asia | OECD |
| Payments (number per year) | 34 | 28 | 13 |
| Time (hours per year) | 326 | 281 | 186 |
| Profit tax (%) | 17.2 | 18.6 | 15.4 |
| Labor tax and contributions (%) | 11.3 | 7.7 | 24 |
| Other taxes (%) | 3 | 18.2 | 3.2 |
| Total tax rate (% profit) | 31.5 | 44.4 | 42.7 |
| Trading Across Borders | |||
| Indicator | Nepal | South Asia | OECD |
| Documents to export (number) | 9 | 8 | 4 |
| Time to export (days) | 41 | 32 | 11 |
| Cost to export (US$ per container) | 1,960 | 1,590 | 1,032 |
| Documents to import (number) | 9 | 9 | 5 |
| Time to import (days) | 35 | 33 | 11 |
| Cost to import (US$ per container) | 2,095 | 1,768 | 1,085 |
| Enforcing Contracts | |||
| Indicator | Nepal | South Asia | OECD |
| Time (days) | 910 | 1,075 | 518 |
| Cost (% of claim) | 26.8 | 27.2 | 19.7 |
| Procedures (number) | 39 | 43 | 31 |
| Resolving Insolvency | |||
| Indicator | Nepal | South Asia | OECD |
| Time (years) | 5 | 2.9 | 1.7 |
| Cost (% of estate) | 9 | 8 | 9 |
| Recovery rate (cents on the dollar) | 24.5 | 29 | 68.2 |
In terms of ease of doing business, Nepal ranked 107 out of 183 countries. Last year, Nepal’s ranking was 110 (non adjusted figure was 116). It is quite an improvement in terms of easing doing business in the country. Most of the push is contributed by making property registration easy, by enacting measures to protect investors and by improving enforcement of contracts.The Finance Act 2008 has reduced the fee for transferring a property from 6 percent to 4.5 percent of the property’s value.In 2011 Nepal improved oversight and monitoring in the court, speeding up the process for filing claims. This is the only reform enacted in terms of easing procedures to do business this year.
Here is how Nepal compares with the regional average:
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Best regional performance in registering property -- ranked 24 overall (regional average is 123). In Nepal, you need 3 procedures, takes 5 days and costs 5% of property value to get a property registered. The corresponding figures for the region are 6, 103, and 7.3.
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In terms of protecting investors, Nepal’s performance in the region was the best -- ease of shareholder suits index (0-10) is 9 (regional average is 6).
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In terms of enforcing contracts, Nepal’s performance was the best in the region -- 39 procedures to enforce a contract (regional average is 43)
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Lowest regional performance in cost of starting a business -- 37.4 % of income per capita (regional average is 21.6% of income per capita)
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In the ten indicators, ranking climbed up in four of them (when compared to previous year): dealing with construction permits, getting electricity, paying taxes, and resolving insolvency.
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