Angola is country where it takes longest for a foreigner to set up a company

8 July 2010

Washington, United States, 8 July – A foreign investors takes 263 days to set up a company in Angola, which is the most bureaucratic nation out of 87 countries analysed in this year’s “Investing across borders” study by the World Bank.

Angola is followed by Haiti, where it takes 212 days, and Venezuela (179 days), with Brazil in fourth place at 166 days for a foreign investor to set up a company.

At the end of the list are the less bureaucratic countries such as Canada where it takes 6 days, and Rwanda and Georgia at 4 days, with the average of the 87 countries studied standing at 42 days.

Angola is also amongst the 10 countries analysed that has no arbitration institution, along with Afghanistan, Bangladesh, Kampuchea, Kosovo, Montenegro, Papua New Guinea, Rwanda, Sierra Leone and the Salomon Islands. The study noted that Ethiopia and Liberia have arbitration institutions, although they are not operating.

Despite the time it takes to open a company, Brazil has a better ranking when it comes to the ease of setting up a company, measured by an index that takes into account the regulatory regime for businesses to be launched.

Brazil was given 62.5 points on an index that starts at 0 (most difficult) to 100 (easiest), ranking below the overall average of 64.5 points, and Latin America and the Caribbean, with 62.8 points.

The study also assessed the restrictions on the presence of foreigners in the economy, with restrictions in Brazil ranked as being stricter than the average for Latin America and the Caribbean.

As compared with remaining BRIC (Brazil, Russia, India and China) countries, only Russia has fewer restrictions on foreigners being involved in the economy. (macauhub)