Australia is one of the easiest places to do business in the world. Statistically, if all countries in the world with population of more than 20 million is to be taken into account, Australia ranks fourth just behind South Korea, the USA and the UK.
Ease of doing business is measured on a number of quantitative indicators. It includes indices on business regulations and the protection of property rights as well as aspects that govern the life of a business. These are used to measure and analyse economic outcomes and to what extent the laws related to business functioning in a country facilitate business efficiencies.
Here are some factors that go a long way to prove that Australia has one of the best environments in the world for doing business.
- Australia is ranked at seven as the easiest place to start a business in the world. It takes just two and a half days to complete all formalities and register a business. The pride of place goes to New Zealand at only half a day. In comparison, it takes on an average 8.5 days in OECD high income group and 22.7 days in East Asia and Pacific countries. Any entrepreneur can also take help of top end business lawyers in the country to facilitate this process. They will help out with all legal and tax formalities in the State where the venture is proposed to be grounded. For example, PB Lawyers are well known in this regard in Melbourne in the State of Victoria.
- Getting quick access to credit facilities is the key to launching a business and expansion and diversification at a later stage. One of the benchmarks of ease of doing business is assessing how efficiently financial institutions support lending and borrowing. In this case too, Australia ranks high up in the list. Among 190 economies in the world, Australia ranks 6th with other leading economies trailing far behind. Canada is at 12th, the UK at 29th, China 68th and Japan 77th.
- The highlight of Australia’s ease of doing business factor is the legal rights index which at 11 out of 12 is almost perfect. Only nine other countries have a score that is equal to this or higher. The country’s credit information index is also ranked at 7 of 8. This is an indicator that credit bureaus can collect all information about payment history with a high degree of privacy protection. The credit information system in the country has been further strengthened after Parliament passed the Privacy Amendment (Enhancing Privacy Protection) Act 2012.
All these go a long way to prove that so far as friendly business laws and ease of doing are concerned, Australia is way up there on the list of economies of the world.