Data

Time required to start a business

What you should know about this indicator

Time required to start a business is the number of calendar days needed to complete the procedures to legally operate a business. If a procedure can be speeded up at additional cost, the fastest procedure, independent of cost, is chosen.

Limitations and exceptions: The Doing Business methodology has limitations that should be considered when interpreting the data. First, the data collected refer to businesses in the economy's largest city and may not represent regulations in other locations of the economy. To address this limitation, subnational indicators are being collected for selected economies. These subnational studies point to significant differences in the speed of reform and the ease of doing business across cities in the same economy. Second, the data often focus on a specific business form - generally a limited liability company of a specified size - and may not represent regulation for other types of businesses such as sole proprietorships. Third, transactions described in a standardized business case refer to a specific set of issues and may not represent the full set of issues a business encounters. Fourth, the time measures involve an element of judgment by the expert respondents. When sources indicate different estimates, the Doing Business time indicators represent the median values of several responses given under the assumptions of the standardized case. Fifth, the methodology assumes that a business has full information on what is required and does not waste time when completing procedures.

Statistical concept and methodology: Data are collected by the World Bank with a standardized survey that uses a simple business case to ensure comparability across economies and over time - with assumptions about the legal form of the business, its size, its location, and nature of its operation. Surveys are administered through more than 9,000 local experts, including lawyers, business consultants, accountants, freight forwarders, government officials, and other professionals who routinely administer or advise on legal and regulatory requirements.

Entrepreneurs around the world face a range of challenges. One of them is inefficient regulation. The indicator measures the procedures, time, cost and paid-in minimum capital required for a small or medium-size limited liability company to start up and formally operate.

The Doing Business project of the World Bank encompasses two types of data: data from readings of laws and regulations and data on time and motion indicators that measure efficiency in achieving a regulatory goal. Within the time and motion indicators cost estimates are recorded from official fee schedules where applicable. The data from surveys are subjected to numerous tests for robustness, which lead to revision or expansion of the information collected.

Source
Multiple sources compiled by World Bank (2024) – processed by Our World in Data
Last updated
May 20, 2024
Next expected update
May 2025
Date range
2003–2019
Unit
days

Sources and processing

This data is based on the following sources

The World Development Indicators (WDI) is the primary World Bank collection of development indicators, compiled from officially-recognized international sources. It presents the most current and accurate global development data available, and includes national, regional and global estimates.

Retrieved on
May 20, 2024
Citation
This is the citation of the original data obtained from the source, prior to any processing or adaptation by Our World in Data. To cite data downloaded from this page, please use the suggested citation given in Reuse This Work below.
World Bank's World Development Indicators (WDI).

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To cite this page overall, including any descriptions, FAQs or explanations of the data authored by Our World in Data, please use the following citation:

“Data Page: Time required to start a business”. Our World in Data (2024). Data adapted from World Bank. Retrieved from https://ourworldindata.org/grapher/time-required-to-start-business [online resource]
How to cite this data

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Multiple sources compiled by World Bank (2024) – processed by Our World in Data

Full citation

Multiple sources compiled by World Bank (2024) – processed by Our World in Data. “Time required to start a business” [dataset]. World Bank, “World Development Indicators” [original data]. Retrieved June 15, 2024 from https://ourworldindata.org/grapher/time-required-to-start-business