Starting business takes Tk 25,820 sans bribes: WB report

It takes nine steps and about 20 working days to complete the procedures for starting a business in two major cities of Bangladesh, according to a World Bank report.

The WB's 'Doing Business Index', published on Wednesday, calculated the cost at Tk 25,820 or 21 per cent of per capita income, if someone takes a business initiative in Dhaka or Chattogram metropolitan area.

When the cost is higher than South Asian average requirement at 11 per cent of per capita and OECD's 3.1 per cent, the cost in Bangladesh is only the "official" one, "not bribes", observed the report.

Despite the high cost, a business starter can hardly get access to credit. Bangladesh's score in a scale of 0-100 in terms of credit is only 25.

An entrepreneur has to wait around six months to get electricity connection, the WB index found. Cost of commercial connection of electricity stands at up to Tk 1 million, according to the report.

The procedural costs for business start-ups include registration fee amounting to Tk 11,900, registration fees of Tk 2,400, Tk 2,220 for certified copies of memorandum and articles of association and stump duties of Tk 4,150.

Obtaining a trade license costs Tk 4,500 and company name registration to the joint stock company reqires Tk 600.

In the starting business category of the index, Bangladesh has been ranked 138th among 190.

Overall, the report titled “Doing Business 2019: Training for Reform,” has placed Bangladesh at 176th, one position above the last year’s 177.

However, Bangladesh is the lowest ranked economy in South Asia.

The country fared the best in protecting minority investors -- at 89th.

It has performed the worst in enforcing business contract and registering property categories -- at 189 and 183 respectively.