Romania went down seven spots in the top of countries that improved their business regulation, according to a recent report issued by the World Bank and the International Finance Corporation. The country ranks 72nd out of 183 countries in the Doing Business 2012 report.

Romania improved its tax payment procedures for companies by introducing the electronic payments and by consolidating the declaration of social contributions. It has also given up on the minimum annual tax and changed the law on insolvency to shorten the procedures. However, setting up a business become more difficult due to the need of a fiscal record for the new company headquarters before registering the company.

The report covers all aspects: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders.

For example, getting electricity in Romania requires 7 procedures and can take up to 223 days, while the average number of days in Eastern Europe and Central Asia is 168.

registering property takes less: 26 days and 8 procedures, better than in Eastern Europe. In terms of paying taxes, Romania requires 113 payments a year and 222 hours spent to do so. Tax payments require 37 procedures a year in Eastern Europe, but these require 302 hours.

Export seems to be easier in Romania than elsewhere in Eastern Europe. 5 documents are needed and 12 days is the time to export, compared to 7 documents and 27 days in Eastern Europe.

Resolving insolvency takes 3.3 years in Romania, while the timing is 2.7 years in Eastern Europe and Central Asia. More details about Romania in the latest Doing Business report here and the full country report here.

Singapore ranked 1st in the top, Hong Kong SAR, China- 2nd and New Zealand, third. See the full ranking here.

Corina Saceanu, corina@romania-insider.com