Business Location

The Business Location topic measures three different options purchasing, leasing, and building that are available to entrepreneurs to choose the adequate location to set up their company, across three different dimensions, here referred to as pillars. The first pillar assesses the quality of regulations pertaining to property transfer, building, and environmental permitting, covering de jure features of a regulatory framework that are necessary for immovable property lease, property ownership, urban planning, and environmental licenses. The second pillar assesses the quality of public services and transparency of information in the provision of property transfer, building, and environmental permitting. The third pillar measures the operational efficiency of establishing a business location in practice. The interaction between these three pillars ensures a comprehensive evaluation of business location, balancing regulatory quality, service transparency, and operational efficiency to create an optimal environment for business establishment. The three pillars consider both the firm's flexibility and the broader social benefits. They ensure a more balanced approach accounting for private sector needs while safeguarding public interests, such as environmental sustainability and public safety. Each pillar is divided into categories—defined by common features that inform the grouping into a particular category—and each category is further divided into subcategories. Each subcategory has several indicators, each of which may, in turn, have several components. Relevant points are assigned to each indicator and subsequently aggregated to obtain the number of points for each subcategory, category, and pillar.

What the Indicator Measure

  • PROPERTY TRANSFER AND LAND ADMINISTRATION

    Property Transfer Standards; Land Dispute Mechanisms; Land Administration System

  • BUILDING, ZONING AND LAND USE

    Building Standards; Building Energy Standards; Zoning and Land Use Regulations

  • RESTRICTIONS ON OWNING AND LEASING PROPERTY

    Domestic Firms – Ownership; Domestic Firms – Leasehold; Foreign Firms – Ownership; Foreign Firms – Leasehold

  • ENVIRONMENTAL PERMITS

    Environmental Permits for Construction; Dispute Mechanisms for Construction-Related Environmental Permits;

  • AVAILABILITY AND RELIABILITY OF DIGITAL SERVICES

    Property Transfer – Digital Public Services; Property Transfer – Digital Land Management and Identification System; Property Transfer – Coverage of the Land Registry and Mapping Agency; Building Permits – Digital Public Services; Environmental Permits – Digital Public Services;

  • INTEROPERABILITY OF SERVICES

    Interoperability of Services for Property Transfer; Interoperability of Services for Building Permits

  • TRANSPARENCY OF INFORMATION

    Immovable Property (includes gender); Building, Zoning and Land Use; Environmental Permits

  • PROPERTY TRANSFER AND LAND ADMINISTRATION

    Major Constraints on Access to Land; Time to Obtain a Property Transfer; Cost to Obtain a Property Transfer

  • CONSTRUCTION & ENVIRONMENTAL PERMITS

    Time to Obtain Construction-Related Permits; Time to Obtain a Building Permit; Cost to Obtain a Building Permit; Time to Obtain an Environmental Permit; Cost to Obtain an Environmental Permit

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