The county moved up up one place from last year thanks to its riddance of the cheque levy, which made paying taxes easier, the World Bank found.
"Simple rules that are easy to follow are a sign that a government treats its citizens with respect. They yield direct economic benefits—more entrepreneurship; more market opportunities for women; more adherence to the rule of law," Paul Romer, World Bank chief economist and senior vice president, said in a statement.
The annual report measures regulation related to the launch, operation and expansion of private sector businesses in 190 countries, such as getting electricity, enforcing contracts, resolving insolvency and labor market regulation. Gender components were added to the World Bank's methodology for the first time this year, including a woman's ability to own, use and transfer property.
Singapore ranked second, followed by Denmark, Hong Kong, South Korea, Norway, the United Kingdom, the United States, Sweden, and Macedonia. It was the first time the former Yugoslav Republic broke into the top ten rankings. Venezuela, Libya, Eritrea and Somalia rounded out the bottom of the rankings.
Overall, the World Bank said emerging markets made significant progress in terms of reforms undertaken.