Doing Business in Poland 2013_TIGER_Dec 2012

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Doing Business 2013:

Poland in the Global Top 10

December 19, 2012

Dr. Marcin Piatkowski

Senior EconomistWorld Bank

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What does Doing Businessmeasure?

Doing Business indicators:

Focus on regulations relevant to the life

cycle of a small to medium-sized domestic

business.

Are built on standardized case scenarios.

Are measured for the most populous city in

each country.

Are focused on the formal sector.

DO NOT measure all aspects of the business environment such asmacroeconomic stability, corruption, level of labor skills, proximity to

markets, or of regulation specific to foreign investment or financial

markets.

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Doing Businessindicators 11 areas of businessregulation (10 included in the DB2013 ranking),covering 185 economies

Start-up Expansion Operations Insolvency

Starting abusiness

Minimum capitalrequirement,

procedures, time andcost

Dealing withconstruction permits

Procedures, time and cost

Getting electricity

Procedures, time and cost

Registering property

Procedures, time and cost Getting credit

Credit information systems

Movable collateral laws

Protecting investors

Disclosure and liability inrelated party transactions

Paying taxes

Payments, time and TotalTax Rate

Trading across borders

Documents, time and cost

Enforcing contracts

Procedures, time and costto resolve a commercialdispute

Employing workers

(annex)

Resolvinginsolvency

Time, cost andrecovery rate

Property rights

Investor protection

Access to credit

Entry Administrative burden

Flexibility in hiring

Recovery rate

Reallocation of

assets

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Top 30 on the ease of doing business index

1. Singapore

2. Hong Kong SAR, China

3. New Zealand

4. United States

5. Denmark

6. Norway

7. UnitedKingdom

8. Korea, Rep.

9. Georgia

10. Australia

11. Finland

12. Malaysia

13. Sweden

14. Iceland

15. Ireland

16. Taiwan, China

17. Canada

18. Thailand

19. Mauritius

20. Germany

21. Estonia

22. Saudi Arabia

23. Macedonia, FYR

24. Japan

25. Latvia

26. United Arab Emirates

27. Lithuania

28. Switzerland

29. Austria

30. Portugal

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88%

47%

38%46%

61%

68%

OECD high

IncomeEastern Europe

and Central Asia

Sub-Saharan

Africa

Middle East and

North Africa

Latin America

& the

Caribbean

South Asia

East Asia and

Pacific

Pace of reforms remains strong in 2011/12: share ofeconomies with at least one reform making it easier todo business

5

45%

About two-thirds of European union economies carried out reforms improving

their business regulations for small and medium sized business in 2011/12

Worldwide, 108 economies implemented 201 reforms in 2011/2012.

5

67%

EU-27


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Poland is the most-improved economy thanks to itsnumerous reforms in 2011/12

Ease of

Doing

Business

rank

Startinga

Business

Dealing withconstruction

permits

Getting

electricity

Registering

property

Getting

credit

Protecting

investors

Paying

taxes

Tradingacross

borders

Enforcing

contracts

Resolving

insolvency

1 Poland 55

2 Sri Lanka 81

3 Ukraine 137

4 Uzbekistan 154

5 Burundi 159

6 CostaRica 110

7 Mongolia 76

8 Greece 78

9 Serbia 86

10 Kazakhstan 49

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Poland has made progress towards the frontieracross most Doing Business indicators

0

10

20

30

40

50

60

70

80

90

100

Starting a

Business

Dealing with

contruction

permits

Registering

Property Getting Credit

Protecting

Investors Paying Taxes

Trading Across

Borders

Enforcing

Contracts

Resolving

Insolvency

D

istancetoFrontier(Percentagepoints)

In DB13, Poland made paying taxes easier forcompanies by promoting the use of electronic

filing and payment systems

the time for paying taxes has decreased as a

result by 10 hours from 296 to 286


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DB ReportYear Starting abusiness

Dealing with

constructionpermits

Registeringproperty Gettingcredit Protectinginvestors Payingtaxes

Trading

acrossborders

Enforcingcontracts Resolvinginsolvency

2013

2012

2011 2010

2009

2008

2007

2006

Regulatory reforms recorded in Poland in all areasmeasured by Doing Business since DB2006, 20 in total

Poland has reformed the business

environment every year

In 9 areas of Doing Business


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Poland is the European Union economy mostnarrowing the distance to the frontier since 2005

Cyprus, Luxemburg and Malta were not included in Doing Business 2006 report.

-2

0

2

4

6

8

10

12

14

Narrow

ingtheDistancetotheFr

ontierfrom2

005to2012 Who advanced the most in closing the gap to the frontier ?


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Poland ranks higher or equal to the EU-27 average in 3of 10 areas

124

161

137

62

49

114

5056

37

Starting abusiness

Dealing withconstruction

permits

Gettingelectricity

Registeringproperty

Getting credit Protectinginvestors

Paying taxes Tradingacrossborders

Enforcingcontracts

Resolvinginsolvency

EU-27 in DB 13 Poland DB 13

Highest1

Lowest185

4

7469

74

6254

6862

3647

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Poland reformed in the area of propertyregistration in 2011/12

Poland made property registration

faster by introducing a new

caseload management system for

the land and mortgage registries

and by continuing to digitize therecords of the registries.

The average time for applying

for registration and the Land

Registry or Registry court went

from 3

6 months to 14 days

2months

152

54

0

20

40

60

80

100

120

140

160

DB 2012 DB 2013

Total time to registerproperty in Warsaw

-98 days


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Poland has cut the time to enforce contractsby a third in Warsaw

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Poland has improved the efficiency of insolvencyproceedings in the last 6 years

In 2011/12, Poland strengthened its insolvency process by updating guidelines on the information and

documents that need to be included in the bankruptcy petition and by granting secured creditors the

right to take over claims encumbered with the right to take over pledged assets in case of liquidation.


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Poland is catching up to better performingEU economies thanks to recent reforms

50

55

60

65

70

75

80

2005 2006 2007 2008 2009 2010 2011 2012

Czech

Republic

Estonia

France

Germany

Latvia

Lithuania

Poland

Distance to frontier (percentage points)


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Despite Polands progress, it still ranks below the

EU-27 average on the ease of doing business

102

78

73

72

66

65

5655

54

46

44

40

36

35

34

33

31

30

29

27

25

21

20

15

13

11

7

5

0 20 40 60 80 100 120

Malta

Greece

Italy

Romania

Bulgaria

Czech Republic

LuxembourgPoland

Hungary

Slovak Republic

Spain

Regional average

Cyprus

Slovenia

France

Belgium

Netherlands

Portugal

Austria

Lithuania

Latvia

Estonia

Germany

Ireland

Sweden

Finland

United Kingdom

Denmark


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The reform agenda

The World Banks

Recommendationsfor

Doing Business Reforms


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Recommendations to improve theconstruction permitting process

Shorten and enforce statutory approval limits when processing

construction and occupancy permits

Streamline and re-engineer procedures to issue construction

permits to save time and cost of investors using delegation and

notification

Pro-actively use the risk-based approach when processing

applications for construction and occupancy permits

Rationalize and consolidate post-completion inspections

Cautiously use silence is consent principle in construction


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Recommendations to improve paying taxes

Make electronic filing mandatory for all corporate entities andmedium to large businesses (say, with turnover over Euro 1

million)

Digital signatures costly for small firms make use of tax

intermediaries legal Simplify forms further, making them better suited to e-filing

Provide more user-friendly software

Popularize electronic filing through targeted communications

campaigns

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Recommendations to improvestarting a business

Unify all numbers into one universal identification number and

issue it by the Registration Court

Make available standard company agreements with the option

of drafting and notarizing custom made company agreements,and empower officials to verify signatures

Eliminate separate registrations for National Sanitary Inspection

and National Work Inspection; combine registration for VAT at

the National Court Register

Eliminate the minimum capital requirement


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Thank you. For more information:www.doingbusiness.org

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Doing Business in Poland 2013_TIGER_Dec 2012

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