“Doing business”

What is “Doing Business”?

  • The “Doing Business” report measures business environment according to the methodology and scenarios defined by the World Bank. As part of this survey the World Bank performs the analysis and ranking of the regulations that promote and restrict business in different  countries and regions.
  • The World Bank has been conducting the “Doing Business” report since 2002 and publishing its reports since 2003. The report covers the period running every year from 1 May to 1 May of the following year (except for the tax payment indicator the assessment of which covers a calendar year period).
  • Results of the World Bank’s report are based on information provided by national experts (respondents) to the World Bank. The World Bank cooperates directly with respondents by asking them to answer special questionnaires of the World Bank.
  • Business environment in the Report on “Doing Business” is measured according to 11 indicators:
    • Starting a business
    • Dealing with construction permits
    • Getting electricity
    • Registering property
    • Getting credit
    • Protecting minority investors
    • Paying taxes
    • Trading across borders
    • Enforcing contracts
    •  Resolving insolvency
    • Labor Market Regulation *
(*The indicator has no impact on the overall result of the country) 

Lithuania in the ranking of “Doing Business”

  • The last report published in October 2019 covered 190 economies. Lithuania has achieved the 11th position in the World Bank’s Doing Business report measuring business conditions. This is the highest position ever achieved by Lithuania since the launch of this report. 

  • In the rating measuring 190 countries of the world Lithuania is significantly ahead of both Latvia (19th position) and Estonia (18th position) as well as Finland (20th position), Germany (22nd position) and Poland (40th position). Lithuania now ranks 4th among the EU-28 and is behind Denmark, the United Kingdom and Sweden.

  • Reforms implemented during the reference period that have positively contributed to Lithuania’s ranking:

  • This year, major progress has been made in the Getting Electricity ranking, which determines our national attractiveness for investment in manufacturing: the number and cost of procedures has been reduced; moreover, the time limit for getting connected to the electricity networks has been cut down.  According to the availability of electricity networks Lithuania has jumped up by 11 positions to the 15th place in the rating scale.

  • The World Bank has also measured the changes brought in by the Government in the area of Protecting Minor Investors: following the introduction of obligatory independency requirements for members of collegial bodies Lithuania was raised up by one position to rank 37. For a third consecutive year, Lithuania keeps up stable positions in the areas of Paying Taxes and Trading across Borders (18th and 19th positions correspondingly).

  • For a number of consecutive years, Lithuania is best valued in Registering Property (4th position) out of all areas covered by the World Bank and has  a high 7th position in Enforcing Contracts; also, Lithuania ranks 10th in Dealing with Construction Permits.

Role of the Ministry of Economy and Innovation

  • The Ministry of Economy and Innovation is a coordinator of the “Doing Business” report in Lithuania.
  • The Report on “Doing Business” is an excellent means for identifying barriers faced by business in carrying out its activities, for comparing Lithuania in different areas with as many as 190 economies and, in may cases, for identifying the particular measures the implementation of which would allow Lithuania not only to achieve better results in “Doing Business” report, but also – and this is most important – to improve the business environment.
  • In view of the above, the Ministry of Economy and Innovation analyses the results and methodology of Reports on “Doing Business”, cooperates with public authorities and business entities in developing proposals and measures that might positively contribute to the data of the Report.

Useful links

Last updated: 03-07-2020