Bureaucratic hurdles continue to be an obstacle for entrepreneurs

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The good performance of a country's economy depends to a large extent on its companies and its entrepreneurs. But the path of entrepreneurship is not easy and when creating a company, there are many bureaucratic barriers and requirements that do not make it easy for those who want to start.

In countries like Spain, creating a company is not exactly a simple matter. In fact, in our article "Creating a company in Spain is still an odyssey" we talked about Spain being ranked 85 in terms of business start-up facilities. There are many entrepreneurs who are faced with a large number of bureaucratic procedures, poor coordination of public administrations and difficulty in obtaining financing.

The incorporation of a company in Spain requires time and many steps to follow, in other words, there are too many administrative barriers.To start the business activity, you have to register as a self-employed person or entrepreneur, deliver the articles of incorporation in the Mercantile Registry, request a Tax Identification Code from the Tax Agency, pay a minimum capital and register the workers in Security Social.

In short, a long and expensive process that causes many entrepreneurs to establish their companies in other countries where the procedures are simpler.

If we look at the UK, we find a very different scenario. The capital required to form a company is very low and the company can be created in a matter of hours. In British lands, it is enough to file an application with the Companies House, which is in charge of registering companies, and with the HRMC, the public body in charge of managing and collecting taxes. Once the company is incorporated, it is recommended to create a bank account in the United Kingdom. Therefore, three simple steps are enough to start a business.

Singapore is also a country where incorporating a company is very simple since a company can be created in less than 48 hours. A low level of taxes and very flexible laws for the creation of companies make the procedures quick and easy. However, operating in Singapore has its drawbacks since this small country is considered a tax haven.

Turning to Latin America, it is worth analyzing the case of Mexico. As we stated in our article "Mexico, the country in Latin America where it is easier to do business", Mexico leads the Business Doing ranking as the best country to carry out business activities. However, Panama, with its offshore companies, continues to be the Latin American country with the best opening facilities. In other parts of Latin America, the wait to open a company can be somewhat exasperating, which can be a matter of several months, as is the case in Venezuela.

If there is a country in which entrepreneurship is inseparable from its culture, it is the United States. This country offers a wide variety of corporate types and very flexible. For a foreign entrepreneur, it will be advisable to create a Limited Liability Company, that is, a Limited Company. The procedures are agile in the United States, you can set up a company with little money and it is not necessary to be a US citizen. You will need to obtain the necessary visas, obtain a tax identification number, and register the business with state and local tax administrations.

It is clear that the company is a fundamental element when it comes to generating wealth in the economy, and therefore, entrepreneurs, as brave people willing to risk time and money, must be facilitated with the creation of companies and therefore it is necessary that the procedures administrative procedures are quick and easy.

Tags:  economic-dictionary history Business 

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