Doing Business in Afghanistan - World Bank

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Afghanistan
Region:South Asia
Income category: Low income
Visit the law libraryPopulation: 30,946,652
GNI per capita (US$): 260.00
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Ease of... Doing Business 2008 rank Doing Business 2007 rank Change in rank
Doing Business 159 156 -3
Starting a Business 24 19 -5
Dealing with Licenses 141 139 -2
Employing Workers 24 22 -2
Registering Property 169 168 -1
Getting Credit 177 177 0
Protecting Investors 178 178 0
Paying Taxes 38 35 -3
Trading Across Borders 174 172 -2
Enforcing Contracts 160 164 +4
Closing a Business 178 178 0
Note: Doing Business 2007 rankings have been recalculated to reflect changes to the methodology and the addition of three new countries.
Starting a Business
The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita. Indicator Afghanistan Region OECD
Procedures (number) 4 7.6 6.0
Duration (days) 9 33.4 14.9
Cost (% GNI per capita) 84.6 40.7 5.1
Paid in Min. Capital (% of GNI per capita) 0.0 0.7 32.5
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Dealing with Licenses
Shown below are the procedures, time, and costs to build a warehouse, including obtaining necessary licenses and permits, completing required notifications and inspections, and obtaining utility connections. Indicator Afghanistan Region OECD
Procedures (number) 13 16.3 14.0
Duration (days) 340 247.3 153.3
Cost (% of income per capita) 21,230.8 3,230.0 62.2
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Employing Workers
The difficulties that employers face in hiring and firing workers are shown below. Each index assigns values between 0 and 100, with higher values representing more rigid regulations. The Rigidity of Employment Index is an average of the three indices. Indicator Afghanistan Region OECD
Difficulty of Hiring Index 0 23.6 25.2
Rigidity of Hours Index 40 17.5 39.2
Difficulty of Firing Index 30 40.0 27.9
Rigidity of Employment Index 23 27.0 30.8
Nonwage labor cost (% of salary) 0 6.7 20.7
Firing costs (weeks of wages) 0 66.0 25.7
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Registering Property
The ease with which businesses can secure rights to property is shown below. Included are the number of steps, time, and cost involved in registering property. Indicator Afghanistan Region OECD
Procedures (number) 9 6.4 4.9
Duration (days) 250 134.1 28.0
Cost (% of property value) 7.0 6.0 4.6
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Getting Credit
Measures on credit information sharing and the legal rights of borrowers and lenders are shown below. The Legal Rights Index ranges from 0-10, with higher scores indicating that those laws are better designed to expand access to credit. The Credit Information Index measures the scope, access and quality of credit information available through public registries or private bureaus. It ranges from 0-6, with higher values indicating that more credit information is available from a public registry or private bureau. Indicator Afghanistan Region OECD
Legal Rights Index 0 3.9 6.4
Credit Information Index 0 1.9 4.8
Public registry coverage (% adults) 0.0 0.7 8.6
Private bureau coverage (% adults) 0.0 1.9 59.3
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Protecting Investors
The indicators below describe three dimensions of investor protection: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholdersÌ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index) and Strength of Investor Protection Index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection. Indicator Afghanistan Region OECD
Disclosure Index 0 4.3 6.4
Director Liability Index 0 4.3 5.1
Shareholder Suits Index 2 6.4 6.5
Investor Protection Index 0.7 5.0 6.0
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Paying Taxes
The data below shows the tax that a medium-size company must pay or withhold in a given year, as well as measures of the administrative burden in paying taxes. These measures include the number of payments an entrepreneur must make; the number of hours spent preparing, filing, and paying; and the percentage of their profits they must pay in taxes. Indicator Afghanistan Region OECD
Payments (number) 6 30.6 15.1
Time (hours) 275 305.5 183.3
Profit tax (%) 0.0 19.5 20.0
Labor tax and contributions (%) 0.0 7.5 22.8
Other taxes (%) 35.5 14.3 3.4
Total tax rate (% profit) 35.5 41.4 46.2
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Trading Across Borders
The costs and procedures involved in importing and exporting a standardized shipment of goods are detailed under this topic. Every official procedure involved is recorded - starting from the final contractual agreement between the two parties, and ending with the delivery of the goods. Indicator Afghanistan Region OECD
Documents for export (number) 12 8.6 4.5
Time for export (days) 67 32.5 9.8
Cost to export (US$ per container) 2,500 1,179.9 905.0
Documents for import (number) 11 9.1 5.0
Time for import (days) 71 32.1 10.4
Cost to import (US$ per container) 2,100 1,417.9 986.1
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Enforcing Contracts
The ease or difficulty of enforcing commercial contracts is measured below. This is determined by following the evolution of a payment dispute and tracking the time, cost, and number of procedures involved from the moment a plaintiff files the lawsuit until actual payment. Indicator Afghanistan Region OECD
Procedures (number) 47 43.5 31.3
Duration (days) 1,642 1,047.1 443.3
Cost (% of claim) 25.0 27.2 17.7
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Closing a Business
The time and cost required to resolve bankruptcies is shown below. The data identifies weaknesses in existing bankruptcy law and the main procedural and administrative bottlenecks in the bankruptcy process. The recovery rate, expressed in terms of how many cents on the dollar claimants recover from the insolvent firm, is also shown. Indicator Afghanistan Region OECD
Time (years) no practice 5.0 1.3
Cost (% of estate) no practice 6.5 7.5
Recovery rate (cents on the dollar) 0.0 20.1 74.1
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