1st in the region, 17th globally. Lithuania climbs 10 places in World Bank Doing Business report
The World Bank’s “Doing Business 2014” report, released today, ranks Lithuania in the highest position in Central and Eastern Europe, and the 6th highest in the European Union. Lithuania has been ranked the 17th best country in the world, ahead of the likes of Germany (21st) and Estonia (22nd).
The jump from 27th in 2013 is Lithuania’s best ever improvement. The “Doing Business 2014” report objectively evaluates the business climate in 189 economies each year, using data to compare business regulation environments in different countries.
‘I am glad that Lithuania has considerably increased its “Doing Business 2014” ranking,’ comments Milda Dargužaitė, General Manager of Invest Lithuania. ‘This is great news, not only for investors, but for all residents of Lithuania.’
One important reason for Lithuania’s improved overall position is a dramatic improvement in the ease of starting a business. Ranked 107th in 2013, Lithuania is now the 11th best location in the world for starting a business.
Substantial government reforms, initiated in 2012, are behind this shift. Whereas previously it took 20 days and 7 different procedures to start up a business, you now only have to go through 4 procedures, in a maximum time of 6 and a half days. Crucially, limited liability companies can now be established with no minimum capital requirement.
The higher overall ranking also reflects a substantial shift in the legal landscape for businesses. In the area of “getting credit”, Lithuania’s position has improved from 53rd up to 28th, thanks to three major improvements. Firstly, the Code of Civil Procedure has been amended to allow debtors to use any group of movable assets as collateral. Secondly, all or part of a business enterprise, including its immovable property, can now be used to create an enterprise mortgage. Finally, speedier out-of-court enforcement is now possible, thanks to the simplification of the execution procedure for pledges.
There have also been significant improvements in other areas. It is now cheaper and easier to obtain import or export licenses, and construction permits. As a result, Lithuania’s position in the Doing Business report has improved from 24th up to 15th in trading across borders, and from 48th to 39th in dealing with construction permits.
Overall, Lithuania’s elevation from 27th to 17th is good news for potential investors. In addition to being the top business environment in central and Eastern Europe, Lithuania also ranks significantly higher than major developed economies like Japan (27th), the Netherlands (28th) and France (38th).
Invest Lithuania www.investlithuania.com/
