Doing Business Research Paper

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Category: Business and Industry

Date Submitted: 11/27/2012 08:22 PM

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The two countries I wish to do business in are: Peru and Singapore. On May 29, 2008 both countries signed the Peru Singapore Free Trade Agreement (PeSFTA) in Lima. This resulted in 52.6 million U.S. dollars in trade between these two countries on 2008. I am going to compare these two countries by the ease and commodity to start a business, register property, pay taxes and enforce contracts.

Peru is part of the Latin American and South American region. Its current income category is upper middle income with a GNI per capita of $5,500. The land of the Incas is located on the Pacific or west area of the South American continent. Its current population is 29,399,817.

In Peru to register property it takes 7 days (4 procedures) and the payment of 3.3% of property value. This means that registering property in Peru is really easy compare to other countries in the region, were it usually takes around 67 days to register property. The payment of taxes in Peru is also above the regions with a total tax rate of 40.5% of profit compare to the regions 47.2%. Some examples of the taxes:

• Corporate income tax is 30%

• Social security contributions are 9% of gross salaries

• Value added tax is 18%

To start a business in Peru it takes 26 days and $458 spent in procedure associated costs. This is also far below the regions average.

However, enforcing contracts in Peru takes 428 days and a cost of 35.7% of claim. In able for a contract to be enforce; 41 procedures have to be accomplished. This puts Peru below the regions average. This represents a disadvantage for making business.

Singapore is part of the East Asia and Pacific region. Its current income category is high income with a GNI per capita of $42,930. The Southeast Asian city-state is located at the tip of the Malay Peninsula and is made up of 63 islands, making it an island country. Its current population is 5,183,700.

To start a business in Singapore it takes 3 days and $314 in procedure associated costs....