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Doing Business 2020 Ethiopia, Economy Profile of Ethiopia. Doing Business 2020 Indicators, in order of appearance in the document . Starting a business Procedures time cost and paid in minimum capital to start a limited liability company. Dealing with construction permits Procedures time and cost to complete all formalities to build a warehouse and the quality control and safety. mechanisms in the construction permitting system, Getting electricity Procedures time and cost to get connected to the electrical grid and the reliability of the electricity supply and the. transparency of tariffs, Registering property Procedures time and cost to transfer a property and the quality of the land administration system. Getting credit Movable collateral laws and credit information systems. Protecting minority investors Minority shareholders rights in related party transactions and in corporate governance. Paying taxes Payments time total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling. processes, Trading across borders Time and cost to export the product of comparative advantage and import auto parts.
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes. Resolving insolvency Time cost outcome and recovery rate for a commercial insolvency and the strength of the legal framework for. insolvency, Employing workers Flexibility in employment regulation and redundancy cost. Page 2, Doing Business 2020 Ethiopia, About Doing Business. The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and. regional level , The Doing Business project launched in 2002 looks at domestic small and medium size companies and measures the regulations applying to them through their life. cycle , Doing Business captures several important dimensions of the regulatory environment as it applies to local firms It provides quantitative indicators on regulation for. starting a business dealing with construction permits getting electricity registering property getting credit protecting minority investors paying taxes trading across. borders enforcing contracts and resolving insolvency Doing Business also measures features of employing workers Although Doing Business does not present rankings. of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business it does. present the data for these indicators , By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time Doing Business encourages.
economies to compete towards more efficient regulation offers measurable benchmarks for reform and serves as a resource for academics journalists private sector. researchers and others interested in the business climate of each economy . In addition Doing Business offers detailed subnational studies which exhaustively cover business regulation and reform in different cities and regions within a nation . These studies provide data on the ease of doing business rank each location and recommend reforms to improve performance in each of the indicator areas Selected. cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked . The first Doing Business study published in 2003 covered 5 indicator sets and 133 economies This year s study covers 11 indicator sets and 190 economies Most. indicator sets refer to a case scenario in the largest business city of each economy except for 11 economies that have a population of more than 100 million as of 2013. Bangladesh Brazil China India Indonesia Japan Mexico Nigeria Pakistan the Russian Federation and the United States where Doing Business also collected data. for the second largest business city The data for these 11 economies are a population weighted average for the 2 largest business cities The project has benefited from. feedback from governments academics practitioners and reviewers The initial goal remains to provide an objective basis for understanding and improving the. regulatory environment for business around the world . To learn more about Doing Business please visit doingbusiness org. Page 3, Doing Business 2020 Ethiopia, Ease of Doing Business in DB RANK DB SCORE. Region Sub Saharan Africa, Ethiopia, Income Category Low income. Population 109 224 559 48 0, 159, City Covered Addis Ababa. Rankings on Doing Business topics Ethiopia, 67, 132. 137, 142 142, 149, 156, 168, 176, 189, Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving.
a with Electricity Property Credit Minority Taxes across Contracts Insolvency. Business Construction Investors Borders, Permits. Topic Scores, 71 7 59 7 60 1 50 9 15 0 10 0 63 3 56 0 62 8 30 3. Starting a Business rank 168 Getting Credit rank 176 Trading across Borders rank 156. Score of starting a business 0 100 71 7 Score of getting credit 0 100 15 0 Score of trading across borders 0 100 56 0. Procedures number 11 Strength of legal rights index 0 12 3 Time to export. Time days 32 Depth of credit information index 0 8 0 Documentary compliance hours 76. Cost number 45 4 Credit registry coverage of adults 0 4 Border compliance hours 51. Paid in min capital of income per capita 0 0 Credit bureau coverage of adults 0 0 Cost to export. Documentary compliance USD 175, Dealing with Construction Permits rank 142 Protecting Minority Investors rank 189 Border compliance USD 172. Score of dealing with construction permits 0 100 59 7 Score of protecting minority investors 0 100 10 0 Time to export. Procedures number 15 Extent of disclosure index 0 10 3 0 Documentary compliance hours 194. Time days 136 Extent of director liability index 0 10 0 0 Border compliance hours 72. Cost of warehouse value 12 6 Ease of shareholder suits index 0 10 2 0 Cost to export. Building quality control index 0 15 11 0 Extent of shareholder rights index 0 6 0 0 Documentary compliance USD 750. Extent of ownership and control index 0 7 0 0 Border compliance USD 120. Getting Electricity rank 137 Extent of corporate transparency index 0 7 0 0. Score of getting electricity 0 100 60 1 Enforcing Contracts rank 67. Procedures number 4 Paying Taxes rank 132 Score of enforcing contracts 0 100 62 8. Time days 95 Score of paying taxes 0 100 63 3 Time days 530. Cost of income per capita 768 5 Payments number per year 29 Cost of claim value 15 2. Reliability of supply and transparency of tariff index 0 8 0 Time hours per year 300 Quality of judicial processes index 0 18 7 0. Total tax and contribution rate of profit 37 7, Registering Property rank 142 Postfiling index 0 100 51 6 Resolving Insolvency rank 149. Score of registering property 0 100 50 9 Score of resolving insolvency 0 100 30 3. Procedures number 7 Recovery rate cents on the dollar 27 3. Time days 52 Time years 3 0, Cost of property value 6 0 Cost of estate 14 5.
Quality of the land administration index 0 30 5 5 Outcome 0 as piecemeal sale and 1 as going 0. concern , Strength of insolvency framework index 0 16 5 0. Page 4, Doing Business 2020 Ethiopia, Starting a Business. This topic measures the number of procedures time cost and paid in minimum capital requirement for a small to medium sized limited liability company to start up and. formally operate in each economy s largest business city . To make the data comparable across 190 economies Doing Business uses a standardized business that is 100 domestically owned has start up capital equivalent to. 10 times the income per capita engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of. operations all of whom are domestic nationals Starting a Business considers two types of local limited liability companies that are identical in all aspects except that one. company is owned by 5 married women and the other by 5 married men The ranking of economies on the ease of starting a business is determined by sorting their. scores for starting a business These scores are the simple average of the scores for each of the component indicators . The most recent round of data collection for the project was completed in May 2019 See the methodology for more information . What the indicators measure Case study assumptions. Procedures to legally start and formally operate a company To make the data comparable across economies several assumptions about the business and the. number procedures are used It is assumed that any required information is readily available and that the. entrepreneur will pay no bribes , Preregistration for example name verification or reservation . notarization , The business , Registration in the economy s largest business city Is a limited liability company or its legal equivalent If there is more than one type of limited. Postregistration for example social security registration liability company in the economy the limited liability form most common among domestic firms is. company seal chosen Information on the most common form is obtained from incorporation lawyers or the. statistical office , Obtaining approval from spouse to start a business or to leave.
Operates in the economy s largest business city For 11 economies the data are also collected for. the home to register the company, the second largest business city . Obtaining any gender specific document for company Performs general industrial or commercial activities such as the production or sale to the public of. registration and operation or national identification card goods or services The business does not perform foreign trade activities and does not handle. products subject to a special tax regime for example liquor or tobacco It is not using heavily. Time required to complete each procedure calendar days . polluting production processes , Does not include time spent gathering information Does not qualify for investment incentives or any special benefits . Is 100 domestically owned , Each procedure starts on a separate day 2 procedures cannot Has five business owners none of whom is a legal entity One business owner holds 30 of the. start on the same day , company shares two owners have 20 of shares each and two owners have 15 of shares. Procedures fully completed online are recorded as day each . Procedure is considered completed once final document is Is managed by one local director . received Has between 10 and 50 employees one month after the commencement of operations all of them. domestic nationals , No prior contact with officials Has start up capital of 10 times income per capita .
Has an estimated turnover of at least 100 times income per capita . Cost required to complete each procedure of income per. Leases the commercial plant or offices and is not a proprietor of real estate . capita , Has an annual lease for the office space equivalent to one income per capita . Official costs only no bribes Is in an office space of approximately 929 square meters 10 000 square feet . Has a company deed that is 10 pages long , No professional fees unless services required by law or. commonly used in practice, The owners , Paid in minimum capital of income per capita . Have reached the legal age of majority and are capable of making decisions as an adult If there. Funds deposited in a bank or with third party before registration is no legal age of majority they are assumed to be 30 years old . or up to 3 months after incorporation Are in good health and have no criminal record . Are married the marriage is monogamous and registered with the authorities . Where the answer differs according to the legal system applicable to the woman or man in. question as may be the case in economies where there is legal plurality the answer used will be. the one that applies to the majority of the population . Page 5, Doing Business 2020 Ethiopia, Starting a Business Ethiopia. Standardized Company, Legal form Private Limited Company PLC .
Paid in minimum capital requirement No minimum, City Covered Addis Ababa. Indicator Ethiopia Sub Saharan OECD high Best Regulatory. Africa income Performance, Procedure Men number 11 7 4 4 9 1 2 Economies . Time Men days 32 21 5 9 2 0 5 New Zealand , Cost Men of income per capita 45 4 36 3 3 0 0 0 2 Economies . Procedure Women number 11 7 5 4 9 1 2 Economies , Time Women days 32 21 6 9 2 0 5 New Zealand . Cost Women of income per capita 45 4 36 3 3 0 0 0 2 Economies . Paid in min capital of income per capita 0 0 9 3 7 6 0 0 120 Economies . Figure Starting a Business in Ethiopia Score, 41 2 68 3 77 3 100 0.
Procedures Time Cost Paid in min capital, Figure Starting a Business in Ethiopia and comparator economies Ranking and Score. DB 2020 Starting a Business Score, 0 100, 93 2 Rwanda Rank 35 . 87 8 Egypt Arab Rep Rank 90 , 82 7 Kenya Rank 129 . 80 1 Regional Average Sub Saharan Africa , 71 7 Ethiopia Rank 168 . 52 9 Eritrea Rank 185 , Note The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business These scores are the simple average of.
indicator sets refer to a case scenario in the largest business city of each economy except for 11 economies that have a population of more than 100 million as of 2013 Bangladesh Brazil China India Indonesia Japan Mexico Nigeria Pakistan the Russian Federation and the United States where also collected data

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