How much does it cost to start a business in Albania? The new report of the World Bank

How much does it cost to start a business in Albania? The new report of the World Bank

What are the costs of starting a private activity and how much do they differ from the countries of the region? How much does it cost to start a business in Albania? The answers come up in an analytical report of the World Bank, part of the “Doing Business” report.

Tirana, 19 January 2016/Independent Balkan News Agency

To start a business has a financial cost. But what are the total costs of starting a private activity and how much do they differ from the countries of the region? The answers come up in an analytical report of the World Bank, part of the “Doing Business” report.

First of all, there are registration costs. Although the procedure of registration at QKR is only one euro, the World Bank says that businesses must also register at the municipality, where the cost is tens of times higher. This makes the cost of opening a business in Albania account for 10.4% of average GNP per capita.

According to the World Bank, this is the second highest level in the region after Bosnia, where opening a business accounts for 14.8% of average incomes.

Meanwhile, in other countries, this index varies from 0.1% to 7.3% of average incomes.

But, besides registration costs, the creation of an enterprise also requires other expenses. One of them is the connection of the business activity with the power grid. According to the World Bank, in Albania, the cost of being connected with the power grid accounts for 491.4% of average incomes. This is the highest level in the region, as in other countries, this cost varies from 70% in Greece to 464.8% in Montenegro.

But businesses often have properties which they must register. Even here, Albanian enterprises pay the highest cost in the region. The registration of a property in Albania accounts for 10.2%, while in the other countries of the region, this index varies from 3.1% to 5.2%.

In the past ten years, Albania has taken a number of measures to cut business costs, but as the figures of the World Bank reveal, at least for the bureaucratic and procedural aspect, businesses in Albania must pay more in comparison to their incomes as opposed to neighboring countries in the Balkans. /ibna/

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