1. SUBNATIONAL
DOING BUSINESS
IN ITALY 2013
Smarter Regulations for
Small and Medium-Size
Enterprises
COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS
IN 13 CITIES AND 7 PORTS WITH 185 ECONOMIES

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4. SUBNATIONAL
ITALY
Smarter Regulations for
Small and Medium-Size
Enterprises
COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 13 CITIES
AND 7 PORTS WITH 185 ECONOMIES
A COPUBLICATION OF THE WORLD BANK AND THE INTERNATIONAL FINANCE CORPORATION

5. ii DOING BUSINESS IN ITALY 2013
THE DOING BUSINESS WEBSITE
Doing Business in Italy 2013 report Download reports
http://www.doingbusiness.org/italy Access to Doing Business reports as well as
Current features subnational and regional reports, reform case
News on the Doing Business project studies and customized economy and regional
http://www.doingbusiness.org profiles
http://www.doingbusiness.org/Reports
Doing Business reforms
Short reform summaries Subnational and regional projects
http://www.doingbusiness.org/Reforms Differences in business regulations at the
subnational and regional level
Methodology and research http://www.doingbusiness.org/Subnational-
The methodology and research papers Reports
underlying Doing Business
http://www.doingbusiness.org/Methodology Law library
http://www.doingbusiness.org/Research Online collection of laws and regulations
relating to business and gender issues
http://www.doingbusiness.org/Law-library
http://wbl.worldbank.org
Business Planet
Interactive map on the ease of doing business
http://rru.worldbank.org/businessplanet

6. Contents
Doing Business in Italy 2013 is a new subna- more than 50 economies benchmarked Executive summary 1
tional report of the Doing Business series. It in other subnational Doing Business stud-
About Doing Business and
measures business regulations and their en- ies. All data and reports are available at
Doing Business in Italy 2013 8
forcement across 4 indicators in 13 Italian cit- www.doingbusiness.org/subnational.
ies: Bari (Apulia), Bologna (Emilia-Romagna), Starting a business 19
Cagliari (Sardinia), Campobasso (Molise), Doing Business investigates the regulations
that enhance business activity and those that Dealing with
Catanzaro (Calabria), L’Aquila (Abruzzo),
constrain it. Regulations affecting 5 stages construction permits 26
Milan (Lombardy), Naples (Campania),
Padua (Veneto), Palermo (Sicily), Potenza of the life of a business are measured at the Registering property 32
(Basilicata), Rome (Latium), and Turin subnational level in Italy: starting a business,
dealing with construction permits, registering Enforcing contracts 36
(Piedmont) and the indicator trading across
borders in 7 ports: Cagliari (Sardinia), property, trading across borders and enforc- Trading across borders 42
Catania (Sicily), Genoa (Liguria), Gioia Tauro ing contracts. These indicators were selected
(Calabria), Naples (Campania), Taranto because they cover areas of local jurisdiction
(Apulia), Trieste (Friuli-Venezia Giulia). The or practice. The indicators are used to ana-
Data notes 48
cities were selected by the Department for lyze economic outcomes and identify what
Planning and Coordination of Economic reforms have worked, where and why. The City tables 58
Policy (DIPE) of the Presidency of the Council data in Doing Business in Italy 2013 are current
Indicator tables 61
of Ministers of the Italian Republic. The cities as of June 1st, 2012.
can be compared against each other, and List of procedures:
with 185 economies worldwide. This project is the result of collaboration of starting a business 64
the Government of the Italian Republic’s
Department for Planning and Coordination
List of procedures:
Comparisons with other economies are
of Economic Policy of the Presidency of the dealing with
based on the indicators in Doing Business 2013:
Smarter Regulations for Small and Medium-Size Council of Ministers (DIPE) with the Global construction permits 71
Enterprises, the tenth in a series of annual Indicators and Analysis Department of the List of procedures:
reports published by the World Bank and World Bank Group. registering property 91
the International Finance Corporation. The
indicators in Doing Business in Italy 2013 are Indicator details—
also comparable with over 350 cities from enforcing contracts 98
Indicator details—
trading across borders 99
Acknowledgments 100

8. 1
Executive summary
In the 1950s and 60s, Italy successfully Since 2011, Italy’s government has taken
made the transition from a rural economy far-reaching measures to restore confi-
with a large agricultural sector, to one dence, stabilize the fiscal situation and
where industry and manufacturing are remedy structural weaknesses. Under the
the engines of growth.1 However, over auspices of the “Europe 2020 Strategy
the past two decades, Italy’s growth rate for Intelligent, Sustainable and Inclusive
lagged behind other EU countries, such as Growth,” Italy’s “Stability Program” and
Germany and France. The current global “National Reform Program” focus on fis-
crisis originated abroad, but longstanding cal consolidation, on the one hand, and
structural weaknesses have exacerbated promoting growth, on the other.6 The
its effects inside Italy and triggered the fiscal consolidation measures include
worst recession in decades. Since 2008, adjusting taxation to increase taxes on
Italy’s economy has shrunk by more than consumption and property while reduc-
5%. Today, unemployment is at 10.7% ing taxes on business activity and work.
and youth unemployment has hit a record The debt reduction strategy is to rein in
34.5%.2 And despite the government’s spending in the medium term.
prudent fiscal policy, Italy’s public debt-
to-GDP ratio is among the highest of the However, the heart of Italy’s problem was
OECD high-income economies, while and is how to get back to more buoyant
its private debt levels remain relatively economic growth. At a time of crisis, this
moderate.3 The International Monetary growth cannot come from an unsustain-
Fund (IMF) expects the Italian economy able expansion of public spending and
to contract by another 2.3% in 2012 and there is also recognition of the limits of
by 0.7% in 2013—with growth returning, prolonged austerity. There is, in fact,
albeit only moderately, in 2014.4 greater acceptance among policymakers
and the business community that growth
Italy’s ranking on the World Economic has to come from boosting total-factor
Forum (WEF)’s “competitiveness index” productivity. This means increasing
is 21st out of the 27 EU member states.5 efficiency, productivity and competitive-
Italy’s main strengths are well-developed ness by allowing more competition in the
enterprise clusters, a broad presence in product and services markets, encourag-
the value chain, corporate activity spread ing small and medium-size firms to invest
among many firms and high firm-level more on innovation, further liberalizing
innovation. However, the WEF report the economy, reforming the labor market
recognizes that Italy’s potential is not and creating a flexible and simple fiscal
fully realized due to weak competition, system that is transparent and efficient in
burdensome government regulations and its administration.
red-tape. Without reforms to address
these structural gaps and obstacles to Four national action plans—“Save Italy”
competitiveness, Italy’s growth is likely to (Salva Italia7), “Grow Italy” (Cresci
remain sluggish over the medium term. Italia8), “Simplify Italy” (Semplifica
Italia9) and the “Cohesion Action Plan”
(Piano di Azione Coesione10)—started to

9. 2 DOING BUSINESS IN ITALY 2013
tackle structural weaknesses, cut red tape, electronic submission of applications for FIGURE 1.1 Comparing the regions of the
improve the business environment and business start-up and construction proj- center-north to the south with
respect to population, number of
unlock competitiveness. ects. Furthermore, a single interface for active firms and contribution to
customs services was created, making it gross national income
The “Save Italy” decree, adopted at the easier for businesses to manage customs
end of 2011, aimed to ensure financial sta- %
documents.12 A new tax framework for 80
bility, growth and social justice. Among businesses13 reduces the tax burden on
other things, it introduced regulations to 70
capital investments to encourage eco-
free up the establishment and opening 60
nomic growth. The decrees also allow for
hours of commercial businesses and substitutive powers that come into effect 50
reduce restrictions on business activities. in the event of non-action by an adminis- 40
The powers of Italy’s Antitrust Authority tration (silence-is-consent rules). 30
were strengthened, extending the range
20
of administrative acts it can scrutinize. Finally, the “Cohesion Action Plan” is
10
A “companies’ court” (Tribunale delle expected to lead to a more efficient ab-
0
Imprese) was set up with the aim of re- sorption and management of EU funds, in Share of Share of Share of
ducing the long delays for commercial particular in the south of Italy. Specifically, total GNI active total
enterprises population
dispute resolution. In addition, new the plan aims to set the stage to resume
Center-North
bankruptcy procedures were put in place, public investment in infrastructure and South
similar to Chapter 11 in the United States, improve the quality of services and edu-
Source: Atlante delle Competitività, Unioncamere Nazionale
to protect entrepreneurs under strain and cation in the south. Any strategy to over- and Istituto Guglielmo Tagliacarne, 2010.
facilitate the continuation of their busi- come economic lags and deep-rooted
ness activities. weaknesses that have accumulated over
the years must pay particular attention to depending on where they establish their
The “Grow Italy” and “Simplify Italy” the untapped growth potential of Italy’s businesses. This study benchmarks 13
decrees aimed to encourage private south (known as the Mezzogiorno). While cities and 7 ports on 5 Doing Business
entrepreneurship; facilitate access to Italy’s center-north is characterized by topics. The summary results for starting
markets; create an environment more well-developed industrial, service and in- a business, dealing with construction
conducive to domestic and foreign invest- frastructure networks, the south is marred permits, registering property and enforc-
ment; promote innovation, efficiency and by a partial and outdated infrastructure ing contracts across the 13 cities are pre-
transparency in Public Administration; network and an old and inefficient indus- sented in table 1.1. The results for trading
and accelerate the adoption of informa- trial system. The south has traditionally across borders in the 7 ports measured
tion and communication technologies. contributed less to the national economy, are presented in table 1.2.
Specific measures under the “Grow as evidenced by a number of indicators.14
Italy” and “Simplify Italy” decrees include Some observations should be made.
GDP per capita in the north, for example,
abolishing minimum fees for professional First, no city does equally well in all areas.
is €29,527—almost twice as high as in
services and encouraging an increase In fact, each Italian city ranks in the top
the south (€17,417).15 The Mezzogiorno
in the number of notaries and pharma- third on at least 1 indicator18 and in the
has 35% of the population, 33% of ac-
cies operating in the country. A detailed bottom third on at least 1 other indica-
tive firms and generates 24% of total
package of measures was introduced tor. Bologna, for example, ranks first on
gross national income (GNI). Meanwhile,
to reduce the administrative burden on dealing with construction permits and
the center-north is home to 65% of the
citizens and businesses—including the registering property but lags behind
population, 67% of firms and generates
speedier issuance of vital records—across other cities on enforcing contracts. In
and 76% of GNI (figure 1.1).16
Italy. The establishment of start-ups that Turin, enforcing contracts is easier than
incorporate as “simplified limited liability elsewhere, but starting a business and
WHAT DOES DOING BUSINESS registering property are ranked below
companies” is being encouraged, includ-
IN ITALY 2013 MEASURE? most other cities. Catanzaro is on top of
ing a €1 minimum capital requirement
Doing Business tracks business regula- the ranking for starting a business, but
for people under age 35. One-stop shops
tions that affect small and medium-size performs poorly when it comes to dealing
for “productive activities” (SUAP)11 across
domestic limited liability companies.17 with construction permits. These results
the country make it easier for entrepre-
Rome represents Italy in the annual Doing can guide policy makers to areas where
neurs to interact with their respective
Business publication, which compares 185 improvements are possible without major
municipalities. For instance, these one-
economies worldwide. But entrepreneurs legislative changes. Cities can share ex-
stop shops are increasingly enabling the
in Italy face different local practices periences and learn from each other.

10. EXECUTIVE SUMMARY 3
TABLE 1.1 Doing Business in Italy 2013—where is it easier? TABLE 1.2 Ease of trading across borders
Ease of Transshipment and
Ease of dealing with Ease of Ease of Gateway ports regional ports
starting a construction registering enforcing
City business permits property contracts
Rank City Rank City
Bari, Apulia 6 9 7 13 1 Genoa, 1 Catania,
Liguria Sicily
Bologna, Emilia-Romagna 4 1 1 11
2 Trieste, Friuli 2 Taranto,
Cagliari, Sardinia 11 2 6 5 Venezia Giulia Apulia
Campobasso, Molise 13 8 3 5 3 Naples, 3 Gioia Tauro,
Campania Calabria
Catanzaro, Calabria 1 10 5 7
4 Cagliari,
L’Aquila, Abruzzo 9 3 9 8 Sardinia
Milan, Lombardy 8 3 7 10 Source: Doing Business database
Naples, Campania 12 11 3 2
Padua, Veneto 2 5 12 12
outperforms the average EU economy
Palermo, Sicily 5 12 2 9
on 1—registering property—where it is
Potenza, Basilicata 3 13 11 3
considered a good-practice economy
Rome, Latium 7 6 13 4
worldwide (figure 1.2). Registering
Turin, Piedmont 10 7 9 1
property takes only 3 procedures, 24
Source: Doing Business database
days and costs 4.5% of property value.
Meanwhile, in the average EU economy, it
Second, for dealing with construction insurance—and finance. Second are takes 5 procedures, 28 days and 4.6% of
permits, there is a negative and sig- the transshipment and regional ports, property value.
nificant correlation with regional GDP.19 which mainly focus on transshipment
Wealthier cities tend to have a more activities—whereby containers are The good news is that the regulatory
efficient construction permitting process. shipped and reloaded onto a different environment for entrepreneurs in Italy
With regards to the other indicators, the vessel at a hub port—and on regional is improving—and the pace of change is
correlation between income levels and trade. Regional ports play a key role in picking up. Relative rankings only tell part
rankings is not significant.20 supplying area markets and connecting of the story. While the ease of doing busi-
local entrepreneurs to national markets. ness compares economies with one an-
Third, population size is not significantly For regional ports, the share of imported other, the distance to the frontier measure
correlated with rankings across the vari- and exported containers compared to benchmarks economies to the frontier in
ous indicators. In some cases, smaller cit- the total number of containers handled regulatory practice, measuring the abso-
ies perform better than their larger neigh- is significantly lower than in gateway lute distance to the best performance on
bors. For example, it is easiest to start a ports. Among the gateway ports, Genoa each indicator. When compared across
business in Catanzaro and more difficult tops the ranking, thanks to the relatively years, the distance to frontier measure
in Naples. Such results could be partially fast port and terminal handling time for shows how much the regulatory environ-
attributed to smaller application volumes exports. Among the transshipment and ment has changed since 2005 in absolute
in Catanzaro, compared to its larger, more regional ports, Catania is more efficient, terms. The results also show that Italy is
populous neighbor. On the other hand, mainly thanks to rapid port and terminal closing the gap to the economies with
large cities benefit from economies of handling operations for imported goods the most efficient practices on several
scale and they may have more resources (table 1.2). indicators. The largest strides took place
at their disposal to invest in administra- in starting a business, paying taxes and
tive modernization than their smaller enforcing contracts (figure 1.3).
ITALY’S PERFORMANCE AND
neighbors.
IMPROVEMENTS AS MEASURED
Since 2005 Italy has implemented a
With regards to trading across borders, BY DOING BUSINESS
total of 14 institutional or regulatory
the 7 ports covered in this analysis fall Italy, represented by Rome, ranks 73 out reforms in all areas measured by Doing
into 2 distinct categories. First are the of 185 economies on the ease of doing Business—except dealing with construc-
gateway ports, which typically handle business, according to Doing Business tion permits and trading across borders.
large cargo volumes and service long in- 2013: Smarter Regulations for Small and Five years ago, the authorities started
ternational supply chains. Gateway ports Medium-Size Enterprises—behind many to simplify business start up through a
also provide trade-related services—such EU economies, which together average single online filing system—which was
as distribution centers, warehouses and a ranking of 40 globally. Out of the 5 improved further in subsequent years,
indicators covered in this report, Italy

11. 4 DOING BUSINESS IN ITALY 2013
FIGURE 1.2 Italy’s performance according to Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises
NEW HONG KONG NEW UNITED ARAB
EASIEST (1) SINGAPORE ZEALAND SAR, CHINA ICELAND GEORGIA MALAYSIA ZEALAND EMIRATES SINGAPORE LUXEMBURG JAPAN
EU 31
40 39 36
average 49 47
54 62
74 69 74 55
Italy 62 68
73 72
84
103 107 104
131
MOST
DIFFICULT (185) 160
Ease of Starting a Dealing with Getting Registering Getting Protecting Paying Trading Enforcing Resolving
doing business business construction electricity property credit investors taxes across borders contracts insolvency
permits
Note: Italy and other economies are represented by their largest business city and their rankings are based on Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises.
Source: Doing Business database.
reducing requirements, time and cost. with fast and efficient response times. Registering Property
Effective 2008, the corporate income tax Compared globally, it would rank 79 out The requirements to initiate the prop-
rate was reduced from 33% to 27.5% and of 185 economies on the ease of starting erty transfer are identical throughout the
the social security tax rate also dropped. a business as measured by Doing Business. country. These include obtaining an en-
Enforcing a contract became faster, after ergy certificate for the building (ACE), as
the civil procedure code was streamlined, Dealing with
well as using a notary to execute the deed
timeframes shortened and hearings construction permits
of sale. The registration process itself
condensed. It is easier to comply with the formali- varies depending on the city. In Bologna,
ties to build a warehouse and connect Palermo, Milan, Naples, Rome and Turin,
COMPARING REGULATIONS it to utilities in Bologna and Cagliari and 1 single electronic transmission registers
IN 13 CITIES AND 7 PORTS more difficult in Potenza and Palermo. the building simultaneously with the Tax
The number of requirements to build Agency (Agenzia delle Entrate) and the
Starting a business
a warehouse and hook it up to utilities Land Agency (Agenzia del Territorio). In
Since 2010, businesses across Italy must
varies. In Cagliari, where the one-stop all other cities, the notary must first
register through the single online filing
shop for “productive activities” issues complete the online registration with the
system known as ComUnica,21 managed
the construction permit together with Tax Agency and then visit the property
by the chambers of commerce. Thanks
the preliminary clearances from the fire registry at the Land Agency to submit
to ComUnica, starting a business now
department, the health agency and oth- paper copies of the deed of sales (atto
requires just 6 procedures in all cities but
ers, it takes 11 steps. In Naples, where 3 di vendita) and transfer note (nota di
1.22 In Milan, Padua or Rome, an entrepre-
different organizations are involved in trascrizione).
neur can complete start-up requirements
the water and sewerage connections, it
in just 6 days, while in Naples it takes
takes 15 steps. It takes about 5 months Thanks to the advanced digitization of
16 days. The time differences are due to
to complete the process in Milan, but Italy’s professional services and public
how fast the agencies linked by ComUnica
more than 10 months in Catanzaro and agencies, registering property is also fast.
respond. For example, in Milan, Padua,
Palermo. The main delay is obtaining the Through the online platform Notartel,
Rome or Bologna, the company registrar
building permit (permesso di costruzione) notaries can access the land registry, ca-
of the chamber of commerce processes
from the municipality. In Catanzaro and dastre and company registrar databases
applications in 1 day, while in Naples or
Palermo, this step alone requires more online and carry out the necessary due
L’Aquila it takes 5 days, on average. The
than 6 months. The same process takes diligence in a matter of minutes before
cost varies from 12.2% of income per
half that time in Naples, Campobasso, they draft, execute and register the deed
capita in Bari to 16.8% in Milan. In ad-
and Potenza—and only 30 days in Milan. of sale. As a result, in Bologna, Naples,
dition to start-up costs, limited liability
There are also large variations in costs and Palermo, registering property takes
companies must deposit the equivalent
across cities. These stem mainly from just 13 days—faster than in Japan. On
of 9.7% of income per capita as paid-in
local building permit fees (contributo di the other hand, registering property is
minimum capital.24 Catanzaro, the top
costruzione), which constitute 87% of the expensive. Over 92% of the overall cost
ranked city in starting a business within
total cost. is composed of fees and duties set at
Italy, combines low professional fees
the national level—most important of

12. EXECUTIVE SUMMARY 5
which are the registration tax (3% of FIGURE 1.3 Reforms improved various days (as in Bologna, Naples and Palermo)
property value) and the cadastral tax (1% regulatory processes since 2005 and the cost to 4.3% of property value
of property value). The remaining 8% Distance to frontier (as in Catanzaro) would allow “Italiana”
(percentage points)
are professional service fees—including to rank 26 globally—near Finland and
100
notary charges and the fees for the energy Starting a business ahead of Austria and the Netherlands. If
certificate, ACE. the municipality of “Italiana” improved
80 the efficiency of Cagliari’s one stop shop
Enforcing Contracts for “productive activities”, allowed for a
Enforcing a contract takes the same num- fast-tracked substitute for the building
ber of steps in the 13 courts measured, 60 Paying taxes
permit as in Milan and lowered its fees as
but there are time and cost variations. in Naples, it would take 11 steps over 151
Enforcing contracts is less difficult in days and cost 45.1% to obtain a construc-
Turin, where it takes 855 days and costs 40 Enforcing contracts tion permit. That would imply a jump of
22.3% of the claim value. It is most dif- 30
70 positions in the global rank, moving
ficult in Bari, where it takes more than Italy from 103 (as represented by Rome)
0
twice as long (2,022 days) and costs 2005 2006 2007 2008 2009 2010 2011 2012 to 33 (as represented by “Italiana”), same
34.1% of the claim value. While the high as Luxembourg and ahead of Finland and
Note: The distance to frontier measure shows how far on
number of cases can explain long waits average Italy is from the best performance achieved by any Spain. In contract enforcement, Turin has
economy on any Doing Business indicator since 2005. The
to some extent, variations among cities measure is normalized to range between 0 and 100, with
successfully reduced pending cases and
also show that courts can use tools to 100 representing the best performance (the frontier). sped up civil proceedings by establishing
speed things up. Effective tools include Source: Doing Business database. clear guidelines on case management
case management systems, information and tracking judges’ performance. Other
technology and specializing judges by cities should follow suit. However, the
LEARNING FROM EACH OTHER
subject matter. The national government adoption of Turin’s practices would still
As this study shows, local requirements
and local courts have launched a number leave “Italiana” lagging behind other
or practices drive notable differences in
of initiatives to speed up civil proceedings economies in contract enforcement. The
procedures, time and cost across cities.
in recent years. same is true for the starting a business
On all indicators, there are good practices
indicator. Looking beyond Italy’s borders
Trading across Borders to be found in Italian cities and regions.
to regional and even global good practices
Among the gateway ports, Genoa is the Reform-minded local governments can
is another tool to identify more efficient
top performer. Through its port, a con- use Doing Business indicators to motivate
practices. That could allow Italian au-
tainer can be exported in 18 days at a cost and sustain reform efforts. There is no
thorities to formulate policies aimed at
of $940. Importing a container through need to reinvent the wheel: it is sufficient
making additional improvements in these
the port of Genoa takes 17 days and costs to start by introducing improvements al-
indicators for cities across Italy.
$935. Among the transshipment and re- ready successfully implemented in other
gional ports, Catania is the most efficient: cities (table 1.3). Peer-to-peer learning Benchmarking exercises like Doing
it takes 19 days and $1,020 to export a events can facilitate knowledge shar- Business motivate governments to
container while importing a container ing and provide opportunities for local improve business regulation. They
takes 16 days and costs $1,040. On aver- authorities to bring their concerns to the uncover bottlenecks and identify where
age, Italian entrepreneurs need to submit attention of the national government and policymakers can look for good practices.
4 documents, spend 19 days and pay to push the reform agenda for the country Comparisons between cities in the same
$1,006 to export a standardized container as a whole. country can be even stronger drivers of
of cargo. To import, Italian entrepreneurs reform because it is more difficult for
A hypothetical city (“Italiana”) adopting
need, on average, to submit 4 documents, local governments to justify why doing
existing good practices on starting a busi-
wait 17 days and spend $1,131. Italy fares business in their city or region is more
ness, dealing with construction permits,
well compared to the EU average on the burdensome than in neighboring cities.
registering property, and enforcing con-
number of documents required to trade Sharing a national legal framework fa-
tracts, would rank 56 on the global Doing
but it performs worse on costs and time. cilitates the implementation of good local
Business ranking. That is 17 positions
On average, in the EU it takes 5 docu- practices. National governments can also
ahead of Italy’s current ranking accord-
ments, 11 days and $1,072 to import and 4 use Doing Business data to monitor how
ing to Doing Business 2013. In registering
documents, 11 days and $1,004 to export. efficiently local branches of agencies
property, reducing the requirements to 3
implement national regulation.
procedures (as in Bologna, Milan, Naples,
Palermo, Rome and Turin), the time to 13

13. 6 DOING BUSINESS IN ITALY 2013
TABLE 1.3 Good practices in Italian cities compared internationally from a reform champion—whether the
Italian best Italy’s performance president, minister or mayor—is central
Doing practices compared in Doing Business to success. Moreover, consistent reform-
Business internationally 2013*
indicator Best practices within Italy (global rank) (global rank) ers are inclusive—involving all relevant
Starting a Number of procedures 6 procedures (Bari, stakeholders, including the private sector,
business to start a business Bologna, Cagliari, and institutionalizing the reform effort.
Catanzaro, L’Aquila,
Milan, Naples, Padua,
Palermo, Potenza, Payoffs from business reforms can be
Rome, Turin) large. Saving time and money are often the
Days to start a 6 days (Milan, Padua, 78 84
immediate benefits for firms. In Mexico,
business Rome)
local one-stop shops cut the time to start
Cost to start a 12.2% of income per
business capita (Bari) a business from 58 to 13 days, on average.
Minimum capital 9.7% of income per A recent study reports the payoffs: the
requirement capita (all cities) number of new firm registrations rose by
Dealing with Number of procedures 11 procedures 5%, employment increased by 2.2%, and
construction to comply with (Cagliari, Rome)
permits formalities to build a prices fell by nearly 1% because of the
warehouse competition from new entrants.26 In India,
Days to comply with 151 days (Milan) the progressive elimination of the License
33 103
formalities to build a
warehouse Raj—a system of central controls on entry
Cost to comply with 45.1% of income per and production—led to a 6% increase in
formalities to build a capita (Naples) new firm registrations. In addition, highly
warehouse
productive firms entering the market in
Registering Number of procedures 3 procedures
property to register property (Bologna, Milan, India experienced larger increases in real
Naples, Palermo, output than less productive ones.27
Rome, Turin)
26 39
Days to register 13 days (Bologna, Maintaining the momentum for reform
property Naples, Palermo)
will be important to help Italy address
Cost to register 4.3% of property
property value (Catanzaro) its stagnant productivity and entrenched
Enforcing Number of procedures 41 procedures (all structural weaknesses. Removing need-
contracts to enforce a contract cities) lessly bureaucratic regulations and red
Days to enforce a 855 days (Turin)
123 160 tape reduces the cost for Italian firms
contract
to do business and thus enhances their
Cost to enforce a 20.5% of claim value competitiveness abroad. Improvements
contract (Potenza)
in the regulatory framework—as captured
Ease of doing business (Hypothetical city of “Italiana”) 56 73
*Represented by Rome.
by the Doing Business indicators—can be
Source: Doing Business database a powerful tool to enhance efficiency,
boost productivity and help establish a
more solid foundation to restore eco-
Consistent reformers have a long-term the United Kingdom, a program running nomic growth. The economies that have
agenda and continuously push forward. from 2005 to 2010 reduced the burden managed to increase their footprint in the
They stay focused by setting specific of regulatory compliance by a quarter, global marketplace are also countries that
goals and regularly monitor progress. The saving firms £3.5 billion ($5.53 billion).24 have made sustained efforts to create
top-ranked economy globally on the ease New initiatives are under way.25 an environment that is more conducive
of doing business, Singapore, introduces for private sector development. More ef-
business reforms every year. Other poli- Cumulative business reforms across a
ficient and transparent rules have been an
cymakers—such as the Dutch Advisory range of topics produce the best results.
integral part of these efforts.
Board on Administrative Burden and the Cooperation across different govern-
UK Better Regulation Executive—rou- ment agencies, at both local and national
tinely assess existing regulation and levels, is necessary for wide-ranging
manage the flow of new regulation. In reforms. Political will and vision coming

14. EXECUTIVE SUMMARY 7
12. To be completed by July 2014. government introduced a new type of
NOTES
13. The new tax framework is called limited liability company with a symbolic
1. In 1861 nearly two-thirds of the minimum capital requirement of €1, the
“Aid for Economic Growth” (ACE).
total labor force worked in agriculture, società responsabilità limitata semplificata
while the remaining workers were 14. Cities of the center-north: Rome,
(SRLS). The implementing regulations
equally distributed between industry Bologna, Milan, Padua and Turin.
concerning the SRLS were not issued
and services. Although until World Cities in the south: Bari, Cagliari,
as of June 2012. In the meantime, the
War I the exodus from agriculture was Catanzaro, Campobasso, L’Aquila,
authorities were discussing the possibil-
limited, the 1930s and World War II Naples, Palermo and Potenza.
ity of creating yet another legal form.
years witnessed a significant shift of the 15. Social Cohesion Database, http://dati
24. For more information, please visit:
labor force towards the non-farm sectors, .coesione-sociale.it/?lang=en
http://www.bis.gov.uk.
and by 1951 agriculture’s share stood at 16. “Atlante delle Competitività,”
43 percent. Finally, by 1973 the services 25. Other initiatives include: 1) Scrutinizing
Unioncamere Nazionale and Istituto
sector had become dominant (at 46 the entire stock of inherited regulations.
Guglielmo Tagliacarne. 2010.
percent), and it has continued to increase The UK has more than 21,000 regula-
17. In addition to limited liability companies, tions and statutory instruments on the
in importance since then. Broadberry, there are several other forms of incorpo-
Steven, Claire Giordano and Francesco books, spanning virtually the entire
ration in Italy. Sole proprietors are also an spectrum of economic activity and
Zollino, 12–15 October 2011. “A Sectoral important part of the business landscape.
Analysis of Italy’s Development, 1861- imposing a huge cost on business. 2) The
18. Except Bari. “one in, one out” system which requires
2011.” Economic History Working Papers
(Quaderni di Storia Economica) 20, Bank of 19. Given the limited number of observa- government departments to assess the
Italy, Rome. tions, cross-section size correlations net cost to business of complying with
are computed using Spearman and any new regulation that is proposed (an
2. “IMF (International Monetary Fund).
Kendall nonparametric rank correlation “in”). These calculations are validated
Italy: Selected Issues. IMF Country Report
coefficients. Kendall and Spearman by the independent Regulatory Policy
No. 12/167. July 2012.
non-parametric correlation coefficients Committee. If a new regulation means a
3. OECD (Organisation for Economic cost to business, a deregulatory measure
between the time, procedures, rank
Co-operation and Development). OECD to deal with construction permits and (an “out”) must be found that reduces
Economic Surveys: Italy. May 2011. Paris: regional income per capita is negative the net cost by at least the same amount.
OECD. and significant at the 5% level. 3) Review and sunset clauses for new
4. IMF. World Economic Outlook. October regulations. This means that policy
20. There are no significant correlations for
2012. sub-indicators or rankings for register- makers must review the relevance of
5. World Economic Forum. The Europe 2020 ing property, enforcing contracts and new regulations after a maximum of 7
Competitiveness Report: Building a More starting a business, except for time to years and justify their continuation rather
Competitive Europe. 2012. Geneva: World start a business. For starting a busi- than simply leaving them on the statute
Economic Forum. ness, there is a positive and significant books. Source: World Bank. 2011. Doing
6. “National Reform Programme.” Section correlation between the time to start a Business 2012: Doing Business in a More
III, 2012 Economic and Financial Document. business and income levels. Lower times Transparent World. Washington, DC:
18 April 2012. Available at http:// to start a business are associated with The World Bank Group.
ec.europa.eu/europe2020/pdf/nd/ higher income per capita. The analysis is 26. Bruhn, Miriam. 2008. “License to Sell:
nrp2012_italy_it.pdf. complete using Kendall and Spearman The Effect of Business Registration
7. Decreto Legge No. 201 of 4 December non-parametric correlation coefficients. Reform on Entrepreneurial Activity in
2011, converted into Law No. 214/2012. 21. Short for Comunicazione Unica. Mexico.” Policy Research Working Paper
4538. Washington, D.C.: World Bank.
8. Decreto Legge No. 1 of 24 January 2012 22. Campobasso is the only city where
and converted into Law No.27/2012. the entrepreneur must still personally 27. Aghion, Philippe, Robin Burgess, Stephen
submit a paper copy of the Segnalazione J. Redding and Fabrizio Zilibotti. 2008.
9. Decreto Legge No. 5 of 9 February 2012,
Certificata di Inizio Attività to the “The Unequal Effects of Liberalization:
converted into Law No. 35/2012
municipal one-stop shop for “productive Evidence from Dismantling the License
10. The “Cohesion Action Plan” was Raj in India.” American Economic Review
activities” (SUAP).
developed jointly with the European 98 (4): 1397–412.
Commission following the Area meeting 23. Doing Business considers the most com-
on October 26, 2011. mon type of limited liability company,
which is the società a responsabilità
11. Sportello Unico della Attivita Produttiva,
limitata (SRL). In January 2012, the
SUAP.

15. 8
About Doing Business and
Doing Business in Italy 2013
The private sector provides an estimated of their life cycle. The results for each
90% of jobs in developing economies.1 economy can be compared with those for
Where government policies support a 184 other economies and over time.
dynamic business environment—with
firms making investments, creating jobs Over the years the choice of indicators for
and increasing productivity—all people Doing Business has been guided by a rich
have greater opportunities. A growing pool of data collected through the World
body of evidence suggests that policy Bank Enterprise Surveys. These data
makers seeking to strengthen the private highlight the main obstacles to business
sector need to pay attention not only to activity as reported by entrepreneurs in
macroeconomic factors but also to the well over 100 economies. Among the
quality of laws, regulations and insti- factors that the surveys have identified as
tutional arrangements that shape daily important to businesses have been taxes
economic life.2 (tax administration as well as tax rates)
and electricity—inspiring the design of
This year the tenth global Doing Business the paying taxes and getting electricity
report was published. When the first indicators. In addition, the design of the
report was produced, in 2003, there Doing Business indicators has drawn
were few globally available and regularly on theoretical insights gleaned from
updated indicators for monitoring such extensive research literature.3 The Doing
microeconomic issues as business Business methodology makes it possible
regulations affecting local firms. Earlier to update the indicators in a relatively
efforts from the 1980s drew on percep- inexpensive and replicable way.
tions data, but these expert or business
surveys focused on broad aspects of the The Doing Business methodology is also
business environment and often captured responsive to the needs of policy makers.
the experiences of businesses. These sur- Rules and regulations are under the direct
veys also lacked the specificity and cross- control of policy makers—and policy
country comparability that Doing Business makers intending to change the experi-
provides—by focusing on well-defined ence and behavior of businesses will
transactions, laws and institutions rather often start by changing rules and regula-
than generic, perceptions-based ques- tions that affect them. Doing Business
tions on the business environment. goes beyond identifying that a problem
exists and points to specific regulations
Doing Business seeks to measure business or regulatory procedures that may lend
regulations for domestic firms through an themselves to regulatory reform. And
objective lens. The project looks primar- its quantitative measures of business
ily at small and medium-size companies regulation enable research on how spe-
in the largest business city. Based on cific regulations affect firm behavior and
standardized case studies, it presents economic outcomes.
quantitative indicators on the regulations
that apply to firms at different stages The first Doing Business report covered
5 topics and 133 economies. Doing

16. ABOUT DOING BUSINESS 9
Business in 2013 covers 11 topics and 185 sample size of experts in order to improve FIGURE 2.1 What are SMART business
economies. Ten topics are included in the accuracy. The local expert respondents regulations as defined
by Doing Business?
aggregate ranking on the ease of doing play a vital role in corroborating the Doing
business, and 9 in the distance to frontier Business team’s understanding and inter-
STREAMLINED—regulations
measure.4 The project has benefited from pretation of rules and laws. that accomplish the desired
feedback from governments, academics, outcome in the most efficient way
practitioners and reviewers.5 The initial Data of the second type serve as inputs S
goal remains: to provide an objective into indicators on the complexity and
MEANINGFUL—regulations
basis for understanding and improving cost of regulatory processes. These indi- that have a measurable positive
the regulatory environment for business. cators measure the efficiency in achiev- impact in facilitating
ing a regulatory goal, such as the number M interactions in the marketplace
of procedures to obtain a building permit
WHAT DOING BUSINESS IN
or the time taken to grant legal identity ADAPTABLE—regulations
ITALY 2013 COVERS
to a business. In this group of indicators that adapt to changes in the
The foundation of Doing Business is the environment
notion that economic activity, particu-
cost estimates are recorded from official
fee schedules where applicable. Time
A
larly private sector development, benefits
estimates often involve an element of RELEVANT—regulations that are
from clear and coherent rules: Rules that
judgment by respondents who routinely proportionate to the problem they
set out and clarify property rights and are designed to solve
administer the relevant regulations or
facilitate the resolution of disputes. And
undertake the relevant transactions.
R
rules that enhance the predictability of
These experts have several rounds of
economic interactions and provide con- TRANSPARENT—regulations
interaction with the Doing Business team, that are clear and accessible to
tractual partners with essential protec- anyone who needs to use them
involving conference calls, written cor-
tions against arbitrariness and abuse.
respondence and visits by the team until T
Where such rules are reasonably efficient
there is convergence on the final answer.
in design, are transparent and accessible
To construct the time indicators, a regula- Note: Developed by Doing Business, this definition of SMART
to those for whom they are intended
tory process such as starting a business business regulations guides its measurement of regulations.
and can be implemented at a reason-
is broken down into clearly defined steps
able cost, they are much more effective
in shaping the incentives of economic
and procedures (for more details, see WHAT DOING BUSINESS IN
agents in ways that promote growth and
the discussion on methodology in this ITALY 2013 DOES NOT COVER
chapter). Here Doing Business builds on
development. The quality of the rules also The Doing Business data have key limita-
Hernando de Soto’s pioneering work in
has a crucial bearing on how societies tions that should be kept in mind by those
applying the time-and-motion approach
distribute the benefits and bear the costs who use them.
in the 1980s to show the obstacles to set-
of development strategies and policies.
ting up a garment factory on the outskirts Limited in scope
Doing Business is about smart business
of Lima.6 The Doing Business indicators are limited
regulations, not necessarily fewer regula-
tions (figure 2.1). in scope. In particular:
Doing Business in Italy 2013 is a subna-
tional Doing Business report (box 2.1) Doing Business in Italy 2013 does not
In constructing the indicators the Doing
and as such captures several important measure all 11 indicators covered in the
Business project uses 2 types of data.
dimensions of the regulatory environ- global Doing Business report. The report
The first come from readings of laws and
ment as they apply to local firms in 13 covers only those 5 areas of business
regulations in each economy. The Doing
cities and 7 ports in Italy. It provides regulation that are either the prov-
Business team, in collaboration with local
quantitative measures of regulations for enance of the local governments or
expert respondents, reads the civil law to
5 indicators: starting a business, dealing where local differences exist—starting
find the number of procedures necessary
with construction permits, registering a business, dealing with construction
to resolve a commercial sale dispute
property, trading across borders, and permits, registering property, trading
before local courts. And it plumbs other
enforcing contracts (table 2.1.). across borders and enforcing contracts
legal instruments for other key pieces
of data used in the indicators, several (table 2.1).
of which have a large legal dimension. Doing Business in Italy 2013 does notmea-
Indeed, about three-quarters of the data sure the full range of factors, policies and
used in Doing Business are of this factual institutions that affect the quality of the
type, reducing the need to have a larger business environment in an economy or

17. 10 DOING BUSINESS IN ITALY 2013
Limited to standardized
BOX 2.1 COMPARING REGULATIONS AT THE LOCAL LEVEL: SUBNATIONAL DOING case scenarios
BUSINESS REPORTS
Subnational Doing Business reports expand the indicators beyond the largest busi-
A key consideration for the Doing Business
ness city in an economy. They capture local differences in regulations or in the imple- indicators is that they should ensure
mentation of national regulations across cities within an economy (as in Colombia) comparability of the data across a global
or region (as in South East Europe). Projects are undertaken at the request of central set of economies. The indicators are
governments, which often contribute financing, as in Mexico. In some cases local gov- therefore developed around standardized
ernments also provide funding, as in the Russian Federation.
case scenarios with specific assumptions.
Subnational indicators provide governments with standard measures, based on laws
Doing Business recognizes the limitations
and regulations, that allow objective comparisons both domestically and internation-
ally. As a diagnostic tool, they identify bottlenecks as well as highlight good practices of the standardized case scenarios and
that are easily replicable in other cities sharing a similar legal framework. assumptions. But while such assump-
Governments take ownership of a subnational project by participating in all steps of tions come at the expense of generality,
its design and implementation—choosing the cities to be benchmarked, the indicators they also help ensure the comparability
that can capture local differences and the frequency of benchmarking. All levels of of data. For this reason it is common to
government are involved—national, regional and municipal.
see limiting assumptions of this kind in
Subnational projects create a space for discussing regulatory reform and provide
economic indicators. Inflation statistics,
opportunities for governments and agencies to learn from one another, through the
report and through peer-to-peer learning workshops. Even after the report is launched, for example, are often based on prices of
knowledge sharing continues. In Mexico 28 of 32 states hold regular exchanges. a set of consumer goods in a few urban
Repeated benchmarking creates healthy competition between cities to improve areas, since collecting nationally repre-
their regulatory environment. The dissemination of the results reinforces this process sentative price data at high frequencies
and gives cities an opportunity to tell their stories. Fifteen economies have requested may be prohibitively costly in many
2 or more rounds of benchmarking since 2005 (including Colombia, Indonesia and
countries.
Nigeria), and many have expanded the geographic coverage to more cities (including
Russia). In Mexico each successive round has captured an increase in the number of
states improving their regulatory environment in each of the 4 indicator sets includ- Some Doing Business topics include com-
ed—reaching 100% of states in 2011. plex and highly differentiated areas. Here
Since 2005 subnational reports have covered 335 cities in 54 economies, includ- the standardized cases and assumptions
ing Brazil, China, the Arab Republic of Egypt, India, Kenya, Morocco, Pakistan and the are carefully considered and defined. For
Philippines.1 example, the standardized case scenario
This year studies were updated in Indonesia, Kenya, Mexico, Russia and the United usually involves a limited liability company
Arab Emirates. Studies are ongoing in 23 cities and 4 ports in Colombia and 15 cities or its legal equivalent. The considerations
and 3 ports in Egypt. In addition, 3 regional reports were published:
in defining this assumption are twofold.
Doing Business in OHADA, comparing business regulations in the 16 member states
First, private limited liability companies
of the Organization for the Harmonization of Business Law in Africa (Benin, Burkina
Faso, Cameroon, the Central African Republic, Chad, the Comoros, the Republic of are, empirically, the most prevalent busi-
Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Niger, ness form in many economies around
Senegal and Togo). the world. Second, this choice reflects
Doing Business in the East African Community, covering 5 economies (Burundi, Kenya, the focus of Doing Business on expanding
Rwanda, Tanzania and Uganda). opportunities for entrepreneurship: inves-
Doing Business in the Arab World, covering 20 economies (Algeria, Bahrain, the tors are encouraged to venture into busi-
Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Mauritania, Morocco,
ness when potential losses are limited to
Oman, Qatar, Saudi Arabia, Sudan, the Syrian Arab Republic, Tunisia, the United
Arab Emirates, West Bank and Gaza, and the Republic of Yemen). their capital participation.
1. Subnational reports are available on the Doing Business website at http://www.doingbusiness.org/ The Doing Business indicators assume
subnational.
that entrepreneurs have knowledge of
and comply with applicable regulations.
its national competitiveness. It does not, Even within the relatively small set of In practice, entrepreneurs may not know
for example, capture aspects of security, indicators included in Doing Business, the what needs to be done or how to comply
the prevalence of bribery and corruption, focus is deliberately narrow. For example, and may lose considerable time in trying
market size, macroeconomic stabil- the indicator on starting a business does to find out. Or they may deliberately avoid
ity (including whether the government not cover all aspects of commercial compliance altogether—by not register-
manages its public finances in a sus- legislation. ing for social security, for example. Where
tainable way), the state of the financial regulation is particularly onerous, levels of
system or the level of training and skills informality tend to be higher (figure 2.2).
of the labor force.