All the factors of cultures are excluded.
So how different is it to start a new business in countries?
Here is the result of the investigation from World Bank.
Very interesting.
Except the fund capital, the cost of registering a new company is around 250 thousand yen. (2,500 USD) with lots steps of procedures.
People may think that a certain amount of investment in establishing a company is the basic and necessary step for a new CEO and accept this cost and long registering procedure.
However, let’s have a look at the investigation from World Bank.
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The top position in the rank of ease of starting a new business is New Zealand. Only one single step procedure, fee around 0.3% of GDP per capital and half day is needed to register a new company without any minimum limitation for fund capital.
By calculating in Japanese yen with the average annual income of 4 million yen, it just feels like this…
Go to local government this morning, write a paper for registration and pay 12,000 yen (120 USD), then your own new company will be done in the afternoon!
So easy!
How about the second position on the rank?
It’s Canada. The procedure is also one step. Although it takes 5 days for handling, it only costs 0.4% of GDP per capital. (around 160 USD) No minimum limitation of fund capital.
The third one is Singapore. 3-step procedure, 2 and half days for handling and 0.6% GDP per capital for cost. (240 USD) No minimum limitation for fund capital.
My home country, Taiwan, is ranked in the 17th position with 3-step procedure, 10 days and 2.3% cost (920 USD) of GDP per capital without minimum limitation of fund capital.
And Japan, in the position of 120, needs to do procedures of 8 steps which take 22 days and cost 7.5% of GDP per capital (2,500 USD). But the minimum limitation of fund capital is 1 yen.
Of course, if the market is large enough, the foreign will come and set up local company no matter how troublesome the procedure is to register a new company.
Sincere Japan is a big market with 120 million population, no any company will ignore this market.
But for all entrepreneurs in Japan, the troublesome procedures for register and high cost form a high wall for them to start their new business. Certainly, difficulty will make entrepreneurs to think more and move more carefully before they start, but it may also decrease the number of people who is willing to start their new business.
Which may even killed thousands ideas that may change the world.
This is the responsibility of government to make the procedures simpler with lower cost.
By the way, Finland, where I’ll go for further study from this August, is ranked in the 55th position with 3-step procedures and 14 days for registering. The cost is 1.1% of GDP per capital (440 USD), but the minimum limitation of fund capital is 7% of GDP.
