Positions of the Republic of Kazakhstan in “Doing Business” WBG: on the ease of enterprises registration and the registration of property rights

October 30, 2014

International rating “Doing Business” measures and tracks changes in the regulation of areas in the life cycle of business, in particular the registration of enterprises and registration of property rights.

In a series of annual reports of the “Doing Business” presents, quantitative indicators of business regulation and the protection of property rights that can be compare between the economies of 189 countries. Figures refer to a specific type of business, as a rule, local limited liability partnership, working in major business cities of these countries.

In the general rating of “Doing Business – 2013” Republic of Kazakhstan took 49th place. Due to the fact, that the ratings of the last year have been adjusted, that is, added 4 new countries, the Republic of Kazakhstan occupies 53 place, and in the rating “Doing Business – 2014” – 50th place. This indicates that the performance of the country during the current year has improved by three positions.

Rating “Doing Business” measures the ease of registration of the enterprise in the economy, recording all official procedures required in a particular country.

Indicator of ease registration of enterprises is the average percentage of ratings of four components: procedures, time, cost and minimum capital.

According to data collected by “Doing Business”, Kazakhstan is on the 30 place in the ranking of 189 economies on the ease registration of enterprises. Thus, registration is required for six treatments, it takes 12.0 days, and the cost is 0.6% of income per capita and requires a minimum share capital for 0.0% of income per capita.

In order to improve its position on this indicator, the Government of Kazakhstan has taken a number of measures, for example, in 2010, was simplified the process of starting a business by facilitating the documentation requirements and eliminate the requirement of registration with the local tax authorities; in 2013 eliminated the requirement to pay the minimum capital for three months in 2014 reduced the term of registration, etc.

Ensuring formal property rights is fundamental to the business. For forming index of “Doing Business” takes into account the following factors: process, time and cost.

In the Republic of Kazakhstan for registration accounts for 4 treatments. This process takes 23 days and costs 0.1% of the property value. Based on these factors, the Republic of Kazakhstan is located at 18 positions. These data indicate that the procedure of registration of property rights in the Republic of Kazakhstan in the simplified cross-country comparisons. In 2009, on the basis of Law of RK dated 26.07.2007 № 310-III “On state registration of rights to immovable property” was created by a single register of land and other real estates, as established CSC, now introduced electronic submission of the application form and etc.

Thus, in Kazakhstan in stages take real measures to facilitate the entrepreneurs of the registration and the alienation of property.

Saida Shukurova