The World Bank “Ease of Doing Business” annual report (2017) sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 11 areas in the life cycle of a business: starting a business, dealing with construction permits, getting, electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, resolving, insolvency and labor market regulation.
Starting a business in Brazil can be more difficult than in countries like Ghana and Jordan. For 2016, Brazil fell 5 positions in the rank, going from 111th to 116th place, out of 189 economies, which puts it behind countries like Ghana and Jordan. Mexico is the best Latin American country to do business, while Brazil ranks among the six worst countries as in accordance with this report.
Here bellow find out some highlights for Brazil for doing business having as a source this annual report from the World Bank:
Starting a Business: What does it take to start a business in Brazil? Starting a business requires 11 procedures, takes 83 days, and costs 3.80% of income per capita. Globally, Brazil stands at 174 in the ranking of 189 economies on the ease case of starting a business.
Construction Permits: What does it take to comply with the formalities to build a warehouse in Brazil? Denting with construction permits requires 18.20 procedures, takes 425.70 days and costs 0.40% of the warehouse value.
Getting Electricity: What does it take to obtain a new electricity connection in Brazil? Getting electricity requires 4 procedures, takes 43.60 days and costs 28.60% of income per capita.
Registering Property: What does it take to complete a property transfer in Brazil? Registering property requires 13.60 procedures, takes 31.70 days and costs 3.10% of the property value.
Getting Credit: How well do the credit information system and collateral and bankruptcy laws in Brazil facilitate access to credit? The economy has a score of 7 on the depth of credit information index and a score of 2 on the strength of legal rights index. Higher scores indicate more credit information and stronger legal rights for borrowers and lenders. Globally, Brazil stands at 97 in the ranking of 189 economies on the ease of getting credit.
Protecting Minority Investors: How strong are minority investor protections against self-dealing in Brazil? The economy has a score of 6.50 on the strength of minority investor protection index, with a higher score indicating stronger protections. Globally, Brazil stands at 29 in the ranking of 189 economics on the strength of minority investor protection index.
Paying Taxes: What is the administrative burden of complying with taxes in Brazil – and how much do firms pay in taxes? On average, firms make 9.60 tax payments a year, spend 2600 hours a year filing, preparing and paying taxes and pay total taxes amounting to 69.20% of profit. Globally, Brazil stands at 178 in the ranking of 189 economies on the ease of paying taxes.
Trading Across Borders: The trading across Border indicator refers to a ease study scenario of a warehouse in the largest business city of an economy trading with the main import and export partner through the economy’s main border crossing. Globally, Brazil stands at 145 in the ranking of 189 economies on the ease of trading across borders.
Enforcing Contracts: How efficient is the process of resolving a commercial dispute through the courts in Brazil? Contract enforcement takes 731 days and costs 20.70% the value of the claim.
Resolving Insolvency: Resolving insolvency takes 4 years on average and costs 12% f the debtor’s estate.