A survey done by the International Finance Corporation (IFC) shows that Papua New Guinea (PNG) is ranked the lowest in the time required to start a new business.
Papua New Guinea ranked 101 out of 189 countries analyzed in terms of the time required to start a new business.
The IFC’s project called Doing Business measures the number of procedures, time and cost for a small and medium-size limited liability company to start up and formally operate.
To make the data comparable across 189 economies, Doing Business used a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people within the first month of operations.
According to the IFC website, the most recent round of data collection for the project was completed in June 2013 with the exception of Transparency data that was last updated in June 2012.
The data from the survey shows that it takes 53 days to start a business in PNG. Experience, however tells that it can take up to more than 6 months or even years to start a simple, small business enterprise in PNG.
The procedural complications within the bodies responsible for business incorporations remains a greater impediment to business startup in the country.