Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
58383
Bulgaria
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Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010: Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org. ISBN: 978-0-8213-7960-8 E-ISBN: 978-0-8213-8630-9 DOI: 10.1596/978-0-8213-7960-8 ISSN: 1729-2638 Library of Congress Cataloging-in-Publication data has been applied for. Printed in the United States
Current features News on the Doing Business project http://www.doingbusiness.org
Rankings How economies rank-from 1 to 183 http://www.doingbusiness.org/rankings/
Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004 and a ranking simulation tool
Contents Introduction and Aggregate Rankings
http://www.doingbusiness.org/reforms/
Historical data Customized data sets since DB2004
5 - Year Measure of Cumulative Change
http://www.doingbusiness.org/custom-query/
Starting a Business
Methodology and research The methodologies and research papers underlying Doing Business
Dealing with Construction Permits
http://www.doingbusiness.org/Methodology/
Registering Property Download reports Access to Doing Business reports as well as subnational and regional reports, reform case studies and customized country and regional profiles http://www.doingbusiness.org/reports/
Getting Credit Protecting Investors Paying Taxes
Subnational and regional projects Differences in business regulations at the subnational and regional level
Trading Across Borders
http://www.doingbusiness.org/subnational-reports/
Enforcing Contracts
Law Library Online collection of business laws and regulations relating to
Closing a Business
business and gender issues
Doing Business 2011 Business Reforms
http://www.doingbusiness.org/law-library/
http://wbl.worldbank.org/ Local partners More than 8,200 specialists in 183 economies who participate in
Doing Business http://www.doingbusiness.org/Local-Partners/Doing-Business/
Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet
Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. A set of regulations affecting 9 stages of a business’s life are measured: starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing Business methodology has limitations. Other areas important to business such as an economy ’s proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in designing reform. The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD high-income economies. The following pages present the summary Doing Business indicators for Bulgaria. The data used for this economy profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region not only with one another but also with the “good practice” economy for each indicator. The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity to provide good examples of business regulation to other countries. These good -practice economies do not necessarily rank number 1 in the topic or indicator, but they are in the top 10. More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org).
* Except for the Paying Taxes indicator that refers to the period January to December of 2009. Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology and the addition of new economies (in the case of the rankings).
1
Economy Rankings - Ease of Doing Business Bulgaria is ranked 51 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.
Bulgaria - Compared to global good practice economy as well as selected economies:
Bulgaria's ranking in Doing Business 2011 Rank
Doing Business 2011
Ease of Doing Business
51
Starting a Business
43
Dealing with Construction Permits
119
Registering Property
62
Getting Credit
6
Protecting Investors
44
Paying Taxes
85
Trading Across Borders
108
Enforcing Contracts
87
Closing a Business
83
2
Summary of Indicators - Bulgaria
Starting a Business
Dealing with Construction Permits
Procedures (number) Time (days)
18
Cost (% of income per capita)
1.6
Min. capital (% of income per capita)
0.0
Procedures (number)
24
Time (days) Cost (% of income per capita) Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Procedures (number)
139 442.3 8
Time (days)
15
Cost (% of property value)
3.0
Strength of legal rights index (0-10)
8
Depth of credit information index (0-6)
6
Public registry coverage (% of adults)
37.0
Private bureau coverage (% of adults)
13.1
Extent of disclosure index (0-10)
10
Extent of director liability index (0-10)
1
Ease of shareholder suits index (0-10)
7
Strength of investor protection index (0-10)
6.0
Payments (number per year)
17
Time (hours per year)
616
Profit tax (%)
4.6
Labor tax and contributions (%) Other taxes (%) Total tax rate (% profit) Trading Across Borders
4
Documents to export (number) Time to export (days) Cost to export (US$ per container) Documents to import (number) Time to import (days) Cost to import (US$ per container)
20.4 3.9 29.0 5 23 1551 7 21 1666 3
Enforcing Contracts
Closing a Business
Procedures (number)
39
Time (days)
564
Cost (% of claim)
23.8
Recovery rate (cents on the dollar)
31.0
Time (years) Cost (% of estate)
3.3 9
The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy’s regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy’s business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions.
This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.18
0.16
Doing business has become easier (DB change score)
0.14
0.12
0.10
0.08
0.06
0.04
Czech Republic
Poland
Slovak Republic
Bulgaria
Moldova
Hungary
6
1. Benchmarking Starting a Business Regulations:
Bulgaria is ranked 43 overall for Starting a Business.
Ranking of Bulgaria in Starting a Business - Compared to good practice and selected economies:
7
The following table shows Starting a Business data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Procedures (number)
Time (days)
Cost (% of income per capita)
Min. capital (% of income per capita)
0.0
Denmark*
1
New Zealand*
1
0.0
Selected Economy Bulgaria
4
18
1.6
0.0
Comparator Economies Czech Republic
9
20
9.3
30.9
Hungary
4
4
8.2
10.2
Moldova
8
10
10.9
11.9
Poland
6
32
17.5
14.7
Slovak Republic
6
16
1.9
22.2
* The following economies are also good practice economies for : Procedures (number): Canada Cost (% of income per capita): Slovenia
8
2. Historical data: Starting a Business in Bulgaria Starting a Business data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
50
43
Procedures (number)
9
4
4
4
Time (days)
32
49
18
18
Cost (% of income per capita)
8.4
2.0
1.7
1.6
Min. capital (% of income per capita)
56.3
47.8
20.7
0.0
3. The following graphs illustrate the Starting a Business sub indicators in Bulgaria over the past 4 years:
9
Starting a Business Summary - Bulgaria
This table summarizes the procedures and costs associated with setting up a business in Bulgaria. STANDARDIZED COMPANY Legal Form: Druzestvo s Ogranichena Otgovornost (OOD) City: Sofia
Registration Requirements: No:
Procedure
Time to complete
Cost to complete
1
Execute the minutes of the constituent meeting of the shareholders in the ODD; obtain a notary certified statement of consent and signature specimen of the manager, and a certified copy of the articles of incorporation of the ODD.
1
BGN 5
2
Deposit paid-up capital in a bank
1
BGN 20
3
Register with the Commercial Register at the Registry Agency
4
BGN 110
4
Register for VAT
12
no charge
10
Starting a Business Details - Bulgaria
Procedure
1
Execute the minutes of the constituent meeting of the shareholders in the ODD; obtain a notary certified statement of consent and signature specimen of the manager, and a certified copy of the articles of incorporation of the ODD.
Time to complete:
1
Cost to complete:
BGN 5
Comment:
The appointment of manager(s) is evidenced by a resolution passed by the constituent meeting of interest holders. The statement of consent and signature specimen is embodied into a single document, and notary certification of manager(s)' signature(s) is required.
Procedure
2
Deposit paid-up capital in a bank
Time to complete:
1
Cost to complete:
BGN 20
Comment:
The capital-accruing bank account must be opened either by the company manager or by a person authorized by a notary-certified power of attorney. Those persons delegated authority over the bank account must provide a signature specimen in person or a notary-certified specimen. The amount of capital stays blocked in the bank account until the registry issues a decision on the company registration. The Commercial Act requires the minimum capital prescribed by law, i.e. BGN 2, to be paid-in prior to incorporation. After opening the escrow account and despositing the funds therein the company under incorporation is issued a certificate evidencing the shareholders' deposit of the capital. The certificate must be presented at the registry.
Procedure
3
Register with the Commercial Register at the Registry Agency
Time to complete:
4
Cost to complete:
BGN 110
Comment:
The registration is done using a Standard Application (A4 Form – "Application for registration of circumstances related to a limited liability company"). The following documents must be attached to the application: (1) Agreement of Association, (2) Resolution for appointment of manager(s), (3) Notary certified consent and signature specimen of manager(s), and (4) Bank certificate for deposited capital. The state fees are BGN 160 if the documents are filed with the Registry Agency on paper or BGN 110 if the registration documents are filed with the Registry Agency electronically.
Procedure
4
Register for VAT
Time to complete:
12
Cost to complete:
no charge
Comment:
The Value Added Tax Act (promulgated on August 4, 2006 in State Gazette issue 63) became effective on January 1, 2007 (Bulgaria's EU accession date). Under this new law, the company may voluntarily register for VAT purposes at any time, because the 11
current threshold requirement has been abolished. A voluntarily registered person shall remain VAT-registered for 24 months starting from the beginning of the year following the year of VAT registration. The company must register for VAT purposes in Bulgaria if its turnover for 12 consecutive months exceeds BGN 50,000. Specific grounds for obligatory registration for VAT purposes apply when: - A person from an EU member state who is not established in Bulgaria and provides taxable supplies of goods that are to be assembled or installed in Bulgaria by that person or at his or her expense (if the recipient is not registered for VAT in Bulgaria). - A person from another EU member state supplies goods to Bulgaria exceeding total value of BGN 70,000 under the conditions of distance sales of goods within a given calendar year. - A person (whether resident or not) performs taxable intracommunity acquisitions in Bulgaria exceeding BGN 20,000 within a given calendar year. - A person (whether resident or not) receives supplies of services under chargeable supplies having place of performance on Bulgarian territory with respect to which the VAT is due by the recipient. - A Bulgarian resident performing supplies of services having place of supply the territory of another EU member state.
12
13
1. Benchmarking Dealing with Construction Permits Regulations:
Bulgaria is ranked 119 overall for Dealing with Construction Permits.
Ranking of Bulgaria in Dealing with Construction Permits - Compared to good practice and selected economies:
14
The following table shows Dealing with Construction Permits data for Bulgaria compared to good practice and comparator economies: Good Practice Economies
Procedures (number)
Time (days)
Cost (% of income per capita)
6
Denmark
0.8
Qatar
25
Singapore
Selected Economy Bulgaria
24
139
442.3
Comparator Economies Czech Republic
36
150
16.4
Hungary
31
189
9.8
Moldova
30
292
120.9
Poland
32
311
121.8
Slovak Republic
13
287
12.7
15
2. Historical data: Dealing with Construction Permits in Bulgaria Dealing with Construction Permits data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
117
119
Procedures (number)
22
24
24
24
Time (days)
131
139
139
139
499.9
493.6
436.5
442.3
Cost (% of income per capita)
3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Bulgaria over the past 4 years:
16
Dealing with Construction Permits in Bulgaria
The table below summarizes the procedures, time, and costs to build a warehouse in Bulgaria. BUILDING A WAREHOUSE City: Sofia
Registration Requirements:
No:
Procedure
Time to complete
Cost to complete
1
Apply and obtain the designing visa from the chief architect of the municipality
3 days
BGN 300
2 *
Sign preliminary contracts with the water authorities to connect to the water supply networks and obtain this connection
20 days
BGN 162
3 *
On-site inspection from water authorities
1 day
no charge
4 *
Obtain approval from the electricity provider
30 days
BGN 205
5
Receive on-site inspection from Electricity provider
1 day
BGN 86
6
Obtain preliminary survey from Telecom provider
15 days
no charge
7
Apply for the approval for the investment design with the Chief Architect of the Municipality
30 days
BGN 260
17
8 *
Request and obtain preliminary assessment of the building for its compliance with energy efficiency requirements from licensed company
2 days
BGN 1,301
9 *
Obtain approval of the investment design project from the Fire Department
30 days
BGN 450
10 *
Obtain an expert opinion on environmental impact assessment from the Director of the Regional Inspection for the protection of the environment
30 days
BGN 50
11 *
Obtain approval of the investment project design from a Hygiene Epidemiological Expert
25 days
BGN 70
12 *
Request the chief architect of the municipality to issue the permission for construction
7 days
BGN 11,705
13
Sign a contract with a surveillance company
5 days
BGN 10,405
14
Map the building on the cadastre
1 day
BGN 30
15 *
Sign contract with electricity company and receive connection
30 days
BGN 9,600
16 *
Sign contract with water provider and receive connection
10 days
BGN 500
17 *
Sign contract with telephone provider and receive connection
10 days
BGN 84
18
Obtain fire safety certificate
1 day
BGN 900
19
The construction surveillance files a report on the completed construction
1 day
no charge
20
A technical passport is registered with the Chief Architect of the municipality
3 days
no charge
21
A copy of the registered technical passport is filed with the Cadastre Agency
1 day
BGN 2
22
Request and obtain certificate for energy efficiency
7 days
no charge
23
Receive inspection by the municipality
1 day
no charge
24
The municipality issues the approval of the building
7 days
BGN 750
* Takes place simultaneously with another procedure.
18
Dealing with Construction Permits Details - Bulgaria Procedure
1
Apply and obtain the designing visa from the chief architect of the municipality
Time to complete:
3 days
Cost to complete:
BGN 300
Agency:
Municipality
Comment:
To obtain the design permit, BuildCo must submit an application form, a title of property or proof of ownership, a sketch of the acting regulation plan, and a change proposal with tax receipts. The time limit for obtaining the design permit is 14 days, according to the Law of the Spatial Planning (Article 140). The design permit fees are set according to Decision No 894, Protocol No 93 (dated November 23, 2006) of the Sofia Municipal Council, Addendum 4, Article 2, as shown below. Fee schedule for design permit request: - Residential buildings: BGN 40. - Nonresidential buildings: BGN 150. As of January 2009, the design visa can be obtained in fast track option. For nonresidential buildings it will cost BGN 300. The documents required for issuance of a designing visa are: an application form, a title of ownership and a tax receipt.
Procedure
2
Sign preliminary contracts with the water authorities to connect to the water supply networks and obtain this connection
Time to complete:
20 days
Cost to complete:
BGN 162
Agency:
Water Authorities
Comment:
In principle, BuildCo must obtain approval from the water authorities. The approval is valid for a year. Several documents are necessary to obtain this approval, including proof of ownership, the plan, the application form, the design permit, and the investment design by the municipal?s chief architect. Because this procedure is carried out simultaneously with Procedure 2, the filing is submitted at the same time. On these grounds, the water company undertakes a preliminary survey and subsequently issues a report that contains the necessary technical data and the specifications for the network connection. As of January 2009 the Water Company operating on the territory of Sofia has a new pricelist for the services provided. The fee amounting at BGN 162 is payable in regard with the issuance of a report containing the technical data and specifications of the water network connection. The expedited procedure is not effective anymore. It takes on average 20 days to complete this procedure.
Procedure
3
On-site inspection from water authorities
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Water Authorities
19
Comment:
Procedure
4
Obtain approval from the electricity provider
Time to complete:
30 days
Cost to complete:
BGN 205
Agency:
Natsionalna Elektricheska Kompania (NEK)
Comment:
Several documents are necessary to obtain this approval, including the request form, a copy of the title document, and the design visa obtained in Procedure 2. Electricity provider experts could provide BuildCo with investment-design project consulting services, at the following rates: - Up to 1 hour: 8.22 BGN. - Up to 2 hours: 16.40 BGN. A required document to obtain the municipality’s chief architect’s approval of the investment design is a preliminary contract with the electricity provider.
Procedure
5
Receive on-site inspection from Electricity provider
Time to complete:
1 day
Cost to complete:
BGN 86
Agency:
Natsionalna Elektricheska Kompania (NEK)
Comment:
Procedure
6
Obtain preliminary survey from Telecom provider
Time to complete:
15 days
Cost to complete:
no charge
Agency:
Bulgaria Telecom (BTC)
Comment:
Procedure
7
Apply for the approval for the investment design with the Chief Architect of the Municipality
Time to complete:
30 days
Cost to complete:
BGN 260
Agency:
Municipality
Comment:
The approval of the investment design is the basis for issuing a construction permit. As of January 2009, after amendment of the Decision No 894, the fees for the approval of the investment design are BGN 0.20 per sq. m.. for the nonresidential buildings. 20
The procedure for the construction permit may be completed at the same time and within 7 days if the investment designs are grounds for issuing permission for construction. A respective request must be included in the application for coordination. However, many opt for separate procedures.
Procedure
8
Request and obtain preliminary assessment of the building for its compliance with energy efficiency requirements from licensed company
Time to complete:
2 days
Cost to complete:
BGN 1,301
Agency:
Licensed Company
Comment:
Every investment project for construction, reconstruction and modernization, on the basis of which permission for construction is granted, has to be assessed for its compliance with the energy efficiency requirements. The assessment is made by a company licensed thereto. There is no a fixed price for the issuance of a certificate for energy effectiveness. The rates are subject of negotiation and vary between BGN 1 - BGN 1.5 sq. m.. The assessment is done by a privately licensed company.
Procedure
9
Obtain approval of the investment design project from the Fire Department
Time to complete:
30 days
Cost to complete:
BGN 450
Agency:
Fire Department
Comment:
The fee for this procedure is equal to 50% of the cost of the certificate for fire safety issued after the completion of the construction. The latter depends on the construction category that the fire department has classified the warehouse. As of the Law of the Ministry of Interior (title amend.) SG 86/00: as of Article 31, Point 3a, Tariff No. 4), the fee formula for warehouses, industrial buildings and premises, and external facilities classified as a fire hazard "A" and "B" is BGN 250 plus BGN 0.50 per sq. m. As of 4 May 2007 fire safety procedures have been streamlined by an Order “On Conduction Fire Safety Measures”. The Order does not stipulate any new requirements regarding the construction process. However, the Order explicitly enumerates the attachments that have to be submitted together with the application in order to obtain a Certificate for Fire Safety. The validity of Certificate has been extended to 3 years. The procedure must be completed within 14 days. However in practice it still takes on average one month.
Procedure
10
Obtain an expert opinion on environmental impact assessment from the Director of the Regional Inspection for the protection of the environment
Time to complete:
30 days
Cost to complete:
BGN 50
Agency:
Regional Inspection for the Protection of the Environment
Comment:
The Law on Environment Protection (Appendix 1 and Appendix 2) defines the investment projects subject to an environmental impact assessment. The warehouse building for storing books and stationary does not fall among the investment projects listed in both appendices. Thus, the issuance of such decision is not obligatory. However, an expert opinion adopted by the competent body (e.g., the Director of the Regional Inspectorate of Protection of Environment) is required to confirm that such decision is not necessary. The expert opinion is issued within 14 days of submitting the request form and paying BGN 50 The decision is valid for 5 years. 21
Procedure
11
Obtain approval of the investment project design from a Hygiene Epidemiological Expert
Time to complete:
25 days
Cost to complete:
BGN 70
Agency:
Hygiene Epidemiological Expert
Comment:
Required documents for the issuance of a hygiene certificate are a request form, a permit for designing, approval letters from water and electricity authority, expert opinion from the regional sanitary inspector, and other project documents. The hygiene epidemiological expert’s fees for consulting services are BGN 4.5 an hour. The overall cost of the approval is based on two criteria the number of experts involved in the inspection and billable hours.
Procedure
12
Request the chief architect of the municipality to issue the permission for construction
Time to complete:
7 days
Cost to complete:
BGN 11,705
Agency:
Municipality
Comment:
After the investment design has been approved, the permission for construction is issued within 7 days of the formal application being received. Both steps could be performed simultaneously if required in the application. The fees are BGN 9 per sq. m., according to Decision No 894, Protocol No. 93 (dated November 23, 2006, and amended in February 5, 2008) of the Sofia Municipal Council, Addendum 4, Table 1, assuming suburban Zone V.
Procedure
13
Sign a contract with a surveillance company
Time to complete:
5 days
Cost to complete:
BGN 10,405
Agency:
Surveillance Company
Comment:
BuildCo should sign a contract with an independent construction supervision firm. This supervisor must be licensed by the Ministry of Regional Development and Public Works. The supervisor will sign all acts and records during construction. The firm’s instructions and orders are binding for BuildCo and the technical manager. Within 3 days of being issued, objections against supervisory firm’s instructions can be made before the Directorate for National Construction Control. Construction will be stopped until a decision is reached, and the decision is considered to be a new set of binding rules. The supervisor must notify the Regional Directorate For National Construction control of any irregularities within 3 days of detection. The supervisor will be responsible for damages caused to the assignor and to the other participants in the construction, and jointly responsible with BuildCo for damages caused by not complying with the technical rules and the approved designs. The supervision contract must be valid for the entire construction process. The rates for a contract are between BGN 6 and BGN 10 per sq. m. of built area. However, the cost for this procedure is subject to negotiation between the investor and the surveillance company. There is no legally regulated minimum cost, but the Bulgarian Association of Architects and Engineers has issued an act containing recommended fees. The fees depend on the value of the construction work but may not be less than BGN 800. After the end of the construction, the person exercising construction supervision will prepare a final report to the assignor.
22
Procedure
14
Map the building on the cadastre
Time to complete:
1 day
Cost to complete:
BGN 30
Agency:
Agency for Geodesy, Cartography and Cadastre
Comment:
The Cadastre Agency issues a document after the building has been mapped. As of June 2007 the procedure can be done in fast track option in 4 hours for BGN 30. The fee is collected in the system of the Ministry of Regional Development and Public Works, according to Article 42, Paragraph 1, of the Tariff 14 promulgated SG No.94/1998. As of 03.2006 the Agency authorized to map the building on the cadastre is under the name of Agency for Geodesy, Cartography and Cadastre. The amendment is made by § 7, item 1 of the Law of the Geodesy and Cartography.
Procedure
15
Sign contract with electricity company and receive connection
Time to complete:
30 days
Cost to complete:
BGN 9,600
Agency:
Natsionalna Elektricheska Kompania (NEK)
Comment:
The fee is BGN 9,600 for connection to utility networks with a length up to 25 meters.
Procedure
16
Sign contract with water provider and receive connection
Time to complete:
10 days
Cost to complete:
BGN 500
Agency:
Water Authorities
Comment:
The decision is valid for 3 years, according to the order of the environmental protection law.
Procedure
17
Sign contract with telephone provider and receive connection
Time to complete:
10 days
Cost to complete:
BGN 84
Agency:
Bulgaria Telecom (BTC)
Comment:
Procedure
18
Obtain fire safety certificate
Time to complete:
1 day
Cost to complete:
BGN 900
Agency:
Fire Department 23
Comment:
Procedure
The fee for issuing fire certificates for buildings and premises with industrial purpose, warehouses, and external facilities with fire hazard category "A" and "B" is BGN 250 plus BGN 0.50 per sq. m. This fee is set according to Tariff No. 4 for the Charges Collected Within the System of the Interior Ministry, Under the Law of the State Fees, Article 3a (amend. – SG 21/07). 19
The construction surveillance files a report on the completed construction
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Construction Surveillance
Comment:
After the construction is finished, the assignor, the designer, the constructor, and the supervisor, must issue a document confirming that the construction has been carried out in accordance with the approved designs, the certified executive documentation, the requirements of the construction and the conditions of the contract. The records for conducted trials on the machines and on the facilities should also be attached. The transfer of the construction by the constructor to the assignor is also implemented.
Procedure
20
A technical passport is registered with the Chief Architect of the municipality
Time to complete:
3 days
Cost to complete:
no charge
Agency:
Municipality
Comment:
The Law on Spatial Development was supplemented on September 15, 2006, State Gazette, Issue No. 76. The law contains a new requirement for licensed experts performing surveillance control. A technical passport for the construction should be prepared after the completion of construction. This document defines all terms for the performance of any major or current repairs and contains data on all certificates issued (those required by the construction legislation). Inspections should also be recorded in the passport. The technical passport must be prepared by the surveillance company. Either the surveillance company or the investor files two copies of the technical passport (one for the investor and one for the chief architect of the municipality) and an electronic copy with the Chief Architect of the Municipality, Office for Registration. The registration of the technical passport may take 2 or 3 days (no charge) after which the investor or the surveillance company may take back their original (it should bear a stamp with the date and the registration number).
Procedure
21
A copy of the registered technical passport is filed with the Cadastre Agency
Time to complete:
1 day
Cost to complete:
BGN 2
Agency:
Cadastre
Comment:
A copy of the registered original technical passport (notarization not required), along with the original technical passport, should be filed with the Cadastre Agency (this second procedure costs BGN 2 and is completed in a day). The copy is to be kept by the Cadastre Agency, while the original (with a stamped registration number) is returned to the investor.
Procedure
22
Request and obtain certificate for energy efficiency
24
Time to complete:
7 days
Cost to complete:
no charge
Agency:
Licensed Company
Comment:
After completing a new construction a certificate for energy efficiency (energy passport ) has to be issued, which is a part of the technical passport of the construction. The issuance of the certificate is performed under a contract signed by the assignor and natural person / entity, entered in the Register for the persons authorized to perform certification for energy efficiency.
Procedure
23
Receive inspection by the municipality
Time to complete:
1 day
Cost to complete:
no charge
Agency:
National Construction Control Department
Comment:
A state commission coordinated by national Construction Control Department grants final approval of the building construction. The commission is comprised of members from different authorities, including the Hygienic Epidemiological Institute and the Fire Alarm Security Service.
Procedure
24
The municipality issues the approval of the building
Time to complete:
7 days
Cost to complete:
BGN 750
Agency:
Municipality
Comment:
After finishing the construction and tests of facilities, to obtain an occupancy permit, the assignor must register before the Chief Architect of the Municipality, present the ultimate report, the utility provider contracts, and document from the cadastral agency that its requirement has been fulfilled. In 7 days, the municipality issues the occupancy permit.
25
26
1. Benchmarking Registering Property Regulations:
Bulgaria is ranked 62 overall for Registering Property.
Ranking of Bulgaria in Registering Property - Compared to good practice and selected economies:
27
The following table shows Registering Property data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Procedures (number)
Time (days)
Cost (% of property value)
2
New Zealand*
1
Norway*
0.0
Saudi Arabia
Selected Economy Bulgaria
8
15
3.0
Comparator Economies Czech Republic
4
43
3.0
Hungary
4
17
5.0
Moldova
5
5
0.9
Poland
6
152
0.4
Slovak Republic
3
17
0.0
* The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates
28
2. Historical data: Registering Property in Bulgaria Registering Property data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
56
62
Procedures (number)
8
8
8
8
Time (days)
19
19
15
15
Cost (% of property value)
2.3
2.3
2.3
3.0
3. The following graphs illustrate the Registering Property sub indicators in Bulgaria over the past 4 years:
29
Registering Property in Bulgaria
This topic examines the steps, time, and cost involved in registering property in Bulgaria.
STANDARDIZED PROPERTY Property Value: 416,729.05 City: Sofia Registration Requirements:
No:
Procedure
Time to complete
Cost to complete
1 *
The sketch of the estate is drafted by the respective Municipality
4 days (express simultaneous with procedures 2, 3, 4, and 5), otherwise 7 or 14 days
BGN 40 for an express procedure (4 days), BGN 30 for a fast procedure (7 days), BGN 20 for a regular procedure (14 days)
2 *
Obtain a tax valuation of the property
4 days (simultaneous with procedures 1, 3, 4, and 5)
BGN 34 for an express procedure (4 days), BGN 25 for a fast procedure, BGN 17 for a regular procedure (14 days)
3 *
Issuance of certificate of good standing for seller and buyer
1 day (simultaneous with procedures 1, 2, 4, and 5)
BGN 5 each
30
4 *
Obtain a non-encumbrance certificate from the Real Estate Register
Regular service (7 working days); Fast service (3 working days); Express service (8 hours) (simultaneous with procedures 1, 2, 3, and 5)
BGN 50 for Express service (8 hours), BGN 20 for Fast service (3 working days), BGN 10 for regular service (7 working days)
5 *
Obtain a tax clearance certificate
7 days (simultaneous with procedures 1, 2, 3, and 4)
no cost
31
6
The notary executes the transfer deed
1 day
2.5% of property price (local tax) + 0.1% of property price (Registration fee) + notary’s fees according to the following scale and with a maximum of BGN 3,000: Value of Property Fees Up to 100 BGN 30 From BGN 100 to 1,000 BGN 30 + 1.5% of excess over BGN 100 From BGN 1,000 to 10,000 BGN 43.5 + 1.3% of excess over BGN 1,000 From BGN 10,000 to 50,000 BGN 160.5 + 0.8% of excess over BGN 10,000 From BGN 50,000 to 100,000 BGN 730 + 0.2% of excess over BGN 100,000 Above BGN 100,000 BGN 1530.5 + 0.1% of excess over BGN 500,000, but no more than 6 000 BGN The new notary's tarrif depends on the value fo the deal and is as follows: Up to 100 BGN - 30 BGN; 101 - 1000 BGN - 30 + 1.5 % for the amount over 100 BGN; 1001 - 10 000 BGN - 43.50 + 1.3 % for the amount over 1000 BGN; 10 001 - 50 000 BGN - 160.50 + 0.8 % for the amount over 10 000 BGN 50 001 - 100 000 BGN - 730 BGN + 0.2 % for the amount over 100 000 BGN; 100 001 - 500 000 лв. - 1530.50 BGN + 0.1 % for the amounht over 500 000 BGN, but no more than 6 000 BGN
7
Registration of the notarized deed at the Registry
1-2 days
Already paid in Procedure 4
8
Parties receive a copy of the registered deed
1 day
no cost
32
* Takes place simultaneously with another procedure.
33
Registering Property Details - Bulgaria Procedure
1
The sketch of the estate is drafted by the respective Municipality
Time to complete:
4 days (express - simultaneous with procedures 2, 3, 4, and 5), otherwise 7 or 14 days
Cost to complete:
BGN 40 for an express procedure (4 days), BGN 30 for a fast procedure (7 days), BGN 20 for a regular procedure (14 days)
Agency:
Local Cadastre Agency
Comment:
The draft of the estate is a graphic sketch of the estate with its borders, square meters, and number of the area where the estate is situated. This draft is issued at the Cadastre of Real Estate. If the skecth is for a real estate in the urban area, principally, the sketch is issued by the local Cadastre Agency. In case teh sketch is required for agricultural land, the skecth is issued by the respective municipal agricultual and forest agency. If for the respective territory there is no cadastre card adopted and approved, then the skecth is then issued by the Municipality.
Procedure
2
Obtain a tax valuation of the property
Time to complete:
4 days (simultaneous with procedures 1, 3, 4, and 5)
Cost to complete:
BGN 34 for an express procedure (4 days), BGN 25 for a fast procedure, BGN 17 for a regular procedure (14 days)
Agency:
Sofia Municipality - Tax department
Comment:
The tax valuation of the property is issued by the respective tax authorities. A tax valuation is mandatory for every property transfer.
Procedure
3
Issuance of certificate of good standing for seller and buyer
Time to complete:
1 day (simultaneous with procedures 1, 2, 4, and 5)
Cost to complete:
BGN 5 each
Agency:
Registration Agency or Regional Court
Comment:
Certificate will be obtained at the Registration Agency or Regional Court depending on whether the company has re-registration with the Commercial Register. As of January 1, 2008 all companies in Bulgaria are registered by the new centralized Commercial Register. The companies are to be re-registered until 31 December 2010 with the Commercial Register. Companies in Bulgaria are registered with the respective regional court depending on the address of the company. This certificate is issued by the registration court. The certificate is needed to show that the company is registered and existing, and that the person who signs on behalf of the company is actually the authorized person to sign. The certificate can be obtained online since 2009.
Procedure
4
Time to complete:
Obtain a non-encumbrance certificate from the Real Estate Register
Regular service (7 working days); Fast service (3 working days); Express service (8 hours) (simultaneous with procedures 1, 2, 3, and 5) 34
Cost to complete:
BGN 50 for Express service (8 hours), BGN 20 for Fast service (3 working days), BGN 10 for regular service (7 working days)
Agency:
Real Estate Registry
Comment:
The express procedures are implemented in the Tariff for the taxes collected by the Registry Agency, published in State Gazette, issue 94 of 25 November 2005, last amended State Gazette issue 77 of 29 September 2009.
Procedure
5
Obtain a tax clearance certificate
Time to complete:
7 days (simultaneous with procedures 1, 2, 3, and 4)
Cost to complete:
no cost
Agency:
Local Tax Department
Comment:
The tax clearance certificate, showing that no taxes are owed, is obtained from the local tax department for both the buyer and the seller, according to Taxation and Insurance Procedure Code in effect as of 1 January 2006, namely Art. 87, paragraph 6.
Procedure
6
The notary executes the transfer deed
Time to complete:
1 day
Cost to complete:
2.5% of property price (local tax) + 0.1% of property price (Registration fee) + notary’s fees according to the following scale and with a maximum of BGN 3,000: Value of Property Fees Up to 100 BGN 30 From BGN 100 to 1,000 BGN 30 + 1.5% of excess over BGN 100 From BGN 1,000 to 10,000 BGN 43.5 + 1.3% of excess over BGN 1,000 From BGN 10,000 to 50,000 BGN 160.5 + 0.8% of excess over BGN 10,000 From BGN 50,000 to 100,000 BGN 730 + 0.2% of excess over BGN 100,000 Above BGN 100,000 BGN 1530.5 + 0.1% of excess over BGN 500,000, but no more than 6 000 BGN The new notary's tarrif depends on the value fo the deal and is as follows: Up to 100 BGN - 30 BGN; 101 - 1000 BGN - 30 + 1.5 % for the amount over 100 BGN; 1001 - 10 000 BGN - 43.50 + 1.3 % for the amount over 1000 BGN; 10 001 - 50 000 BGN - 160.50 + 0.8 % for the amount over 10 000 BGN 50 001 - 100 000 BGN - 730 BGN + 0.2 % for the amount over 100 000 BGN; 100 001 - 500 000 лв. - 1530.50 BGN + 0.1 % for the amounht over 500 000 BGN, but no more than 6 000 BGN
Comment:
The notary executes the transfer deed and collects the money for payment of the state fee (transfer tax) and the registration fee. Usually the notary pays the state and registration fees. This is done for the clients’ convenience. The parties can pay the fees at the account of the tax authority where the estate is situated and bring the receipts to the notary. The local tax is now a subject of determination by each municipality on yearly basis. The local tax in Sophia increased from 2% to 2.5% in 07.03.2008 according to the Local Taxes and Fees Act.
Procedure
7
Time to complete:
Registration of the notarized deed at the Registry
1-2 days 35
Cost to complete:
Already paid in Procedure 4
Agency:
Registration Agency
Comment:
The notary will register the notarized deed at the registration office with the respective district court. This can be done by the parties too, but it is most common that the notary will do it (and it is included in the above fees). The notary will pay registration and state fees collected previously. Registration should take 1 day, but it can take up to 3 days during busy periods. According to Art.25, para 5 of the Notary Public and Notarial Activity Law of 2009 (last amendment of the Notary Public and Notarial Activity Act was promulgated in State Gazette, issue 82 of 16 October 2009, http://dv.parliament.bg/DVWeb/broeveList.faces), the notary now has to submit the notarized deed in the same day it is signed. In practice, this generally happens in Sophia. If a notary public does not perform their obligation for entry of a notary deed or other notary certified act with the real estate register, the interested persons are entitled to claim the suffered damages. Furthermore, the interested persons may address the Notary Chamber regarding the violations of the notary's obligations. This may entail disciplinary proceedings against the respective notary public. This amendment also ensures that the notaries public have access to the National Database "Population" and to the National Automatic Information Fund for personal identity documents. It also introduced an obligation for the notaries public to make special checks in the database and the fund when performing notary certifications connected to rights over real estates.
Procedure
8
Parties receive a copy of the registered deed
Time to complete:
1 day
Cost to complete:
no cost
Comment:
Parties will receive a copy of the registered deed the same or next day the deed has been registered by the notary
36
37
1. Benchmarking Getting Credit Regulations:
Bulgaria is ranked 6 overall for Getting Credit.
Ranking of Bulgaria in Getting Credit - Compared to good practice and selected economies:
38
The following table shows Getting Credit data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Strength of legal rights index (0-10)
Depth of credit information index (0-6)
Public registry coverage (% of adults)
Private bureau coverage (% of adults)
100.0
New Zealand*
67.1
Portugal
10
Singapore*
6
United Kingdom
Selected Economy Bulgaria
8
6
37.0
13.1
Comparator Economies Czech Republic
6
5
4.9
73.2
Hungary
7
5
0.0
11.4
Moldova
8
0
0.0
0.0
Poland
9
4
0.0
91.7
Slovak Republic
9
4
2.2
44.5
* The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index.
39
2. Historical data: Getting Credit in Bulgaria Getting Credit data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
6
6
Strength of legal rights index (0-10)
8
8
8
8
Depth of credit information index (0-6)
6
6
6
6
Private bureau coverage (% of adults)
3.0
5.0
6.2
13.1
Public registry coverage (% of adults)
25.4
30.7
34.8
37.0
3. The following graphs illustrate the Getting Credit sub indicators in Bulgaria over the past 4 years:
40
Getting Credit in Bulgaria
The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Bulgaria.
Getting Credit Indicators (2010)
Private bureau coverage (% of adults)
Indicator
Private credit bureau
Public credit registry
6
Are data on both firms and individuals distributed?
Yes
Yes
1
Are both positive and negative data distributed?
Yes
Yes
1
Does the registry distribute credit information from retailers, trade creditors or utility companies as well as financial institutions?
Yes
No
1
Are more than 2 years of historical credit information distributed?
Yes
No
1
Is data on all loans below 1% of income per capita distributed?
Yes
Yes
1
Is it guaranteed by law that borrowers can inspect their data in the largest credit registry?
Yes
Yes
1
Coverage
13.1
37.0
Number of individuals
820,250
2,290,160
Number of firms
41,540
137,430
41
Strength of legal rights index (0-10)
8
Can any business use movable assets as collateral while keeping possession of the assets; and any financial institution accept such assets as collateral ?
Yes
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description of collateral?
Yes
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of collateral?
Yes
May a security right extend to future or after-acquired assets, and may it extend automatically to the products, proceeds or replacements of the original assets ?
Yes
Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?
Yes
Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the grantor's name of a security right ?
No
Do secured creditors have absolute priority to their collateral outside bankruptcy procedures?
Yes
Do secured creditors have absolute priority to their collateral in bankruptcy procedures?
Yes
During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement?
No
Does the law authorize parties to agree on out of court enforcement?
Yes
42
43
1. Benchmarking Protecting Investors Regulations:
Bulgaria is ranked 44 overall for Protecting Investors.
Ranking of Bulgaria in Protecting Investors - Compared to good practice and selected economies:
44
The following table shows Protecting Investors data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Strength of investor protection index (0-10)
9.7
New Zealand
Selected Economy Bulgaria
6.0
Comparator Economies Czech Republic
5.0
Hungary
4.3
Moldova
4.7
Poland
6.0
Slovak Republic
4.7
45
2. Historical data: Protecting Investors in Bulgaria Protecting Investors data
Doing Business 2008
Rank Strength of investor protection index (0-10)
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
41
44
6.0
6.0
6.0
6.0
4.3
4.7
4.7
un ga ry H
ov a ol d M
Sl o ep vak ub lic R
R
C z ep ech ub lic
ia Bu lg ar
Po la nd
N
ew
Ze
al a
nd
5.0
6.0
6.0
9.7
3. The following graph illustrates the Protecting Investors index in Bulgaria compared to best practice and selected Economies:
Note: The higher the score, the greater the investor protection.
46
Protecting Investors in Bulgaria
The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Bulgaria.
Protecting Investors Data (2010) Extent of disclosure index (0-10)
What corporate body provides legally sufficient approval for the transaction? Whether immediate disclosure of the transaction to the public and/or shareholders is required? Whether disclosure of the transaction in published periodic filings (annual reports) is required? Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10)
Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? Whether shareholders can hold the approving body (the CEO or board of directors) liable for the damage that the Buyer-Seller transaction causes to the company? Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff?
Indicator
10 3 2 2 2 1 1 0 0 0 0
47
Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? Whether fines and imprisonment can be applied against Mr. James? Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? Ease of shareholder suits index (0-10)
Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? Whether the plaintiff can directly question the defendant and witnesses during trial? Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? Whether the level of proof required for civil suits is lower than that of criminal cases? Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10)
0 0 1 7 4 0 1 1 1 0 6.0
48
49
1. Benchmarking Paying Taxes Regulations:
Bulgaria is ranked 85 overall for Paying Taxes.
Ranking of Bulgaria in Paying Taxes - Compared to good practice and selected economies:
50
The following table shows Paying Taxes data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Payments (number per year)
Time (hours per year)
3
Maldives*
Total tax rate (% profit)
0
0.2
Timor-Leste
Selected Economy Bulgaria
17
616
29.0
Comparator Economies Czech Republic
12
557
48.8
Hungary
14
277
53.3
Moldova
48
228
30.9
Poland
29
325
42.3
Slovak Republic
31
257
48.7
* The following economies are also good practice economies for : Payments (number per year): Qatar
51
2. Historical data: Paying Taxes in Bulgaria Paying Taxes data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
95
85
36.7
34.9
31.4
29.0
Payments (number per year)
17
17
17
17
Time (hours per year)
616
616
616
616
Rank Total tax rate (% profit)
3. The following graphs illustrate the Paying Taxes sub indicators in Bulgaria over the past 4 years:
52
Paying Taxes in Bulgaria
The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Bulgaria, as well as measures of administrative burden in paying taxes.
Tax or mandatory contribution
Payments (number)
Value added tax (VAT)
1
Final/one-off on corporate on certain expenses
Notes on Payments
Time (hours)
online filing
288
Statutory tax rate
Tax base
Totaltax rate (% profit)
20.0%
value added
1
10.0%
gross expenses
Vehicle tax
2
BGN 10
per ton of vehicle
0.00
Real estate tax on the land and building
4
0.2%
tax value of land and building
0.20
Vignette
1
BGN 950
type of vehicle
0.30
Stamp duty on property transfer
1
notary fees of BGN 3,000 and 0.1% of sales price
higher of tax value and agreed value of real estate
0.50
Fuel tax
1
535 per litre
included in the price of fuel
1.10
Notes on TTR
53
Fees for municipal services (garbage collection fee) - Sofia
4
Corporate income tax
1
online filing
Social security contributions
1
online filing
Totals
17
1.0%
tax value of land and building
1.80
40
10.0%
taxable profit
4.60
288
18.1%
gross salaries
20.40
616
29.0
54
55
1. Benchmarking Trading Across Borders Regulations:
Bulgaria is ranked 108 overall for Trading Across Borders.
Ranking of Bulgaria in Trading Across Borders - Compared to good practice and selected economies:
56
The following table shows Trading Across Borders data for Bulgaria compared to good practice and comparator economies: Good Practice Economies
Documents to export (number)
Time to export (days)
Cost to export (US$ per container)
Documents to import (number)
Time to import (days)
Cost to import (US$ per container)
5
Denmark*
2
France
2
450
Malaysia
4
Singapore
439
Selected Economy Bulgaria
5
23
1551
7
21
1666
Comparator Economies Czech Republic
4
17
1060
7
20
1165
Hungary
5
18
1225
7
17
1215
Moldova
6
32
1765
7
35
1960
Poland
5
17
884
5
25
884
Slovak Republic
6
17
1530
8
19
1505
* The following economies are also good practice economies for : Time to export (days): Estonia
57
2. Historical data: Trading Across Borders in Bulgaria Trading Across Borders data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
109
108
Cost to export (US$ per container)
1329
1626
1551
1551
Cost to import (US$ per container)
1377
1776
1666
1666
Documents to export (number)
5
5
5
5
Documents to import (number)
7
7
7
7
Time to export (days)
23
23
23
23
Time to import (days)
21
21
21
21
Rank
3. The following graphs illustrate the Trading Across Borders sub indicators in Bulgaria over the past 4 years:
58
59
Trading Across Borders in Bulgaria
These tables list the procedures necessary to import and export a standardized cargo of goods in Bulgaria. The documents required to export and import the goods are also shown.
Nature of Export Procedures (2010)
Documents preparation
Duration (days)
US$ Cost
15
200
Customs clearance and technical control
2
75
Ports and terminal handling
4
246
Inland transportation and handling
2
1030
23
1551
Totals
Nature of Import Procedures (2010)
Documents preparation
Duration (days)
US$ Cost
13
250
Customs clearance and technical control
2
140
Ports and terminal handling
4
246
Inland transportation and handling
2
1030
21
1666
Totals
60
Documents for Export and Import
Export
Bill of lading Certificate of origin Commercial invoice Customs export declaration Packing list Import
Bill of lading Cargo release order Certificate of origin Commercial Invoice Customs import declaration Packing list Technical standard/health certificate
61
62
1. Benchmarking Enforcing Contracts Regulations:
Bulgaria is ranked 87 overall for Enforcing Contracts.
Ranking of Bulgaria in Enforcing Contracts - Compared to good practice and selected economies:
63
The following table shows Enforcing Contracts data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Procedures (number)
Time (days)
Cost (% of claim)
0.1
Bhutan
20
Ireland
150
Singapore
Selected Economy Bulgaria
39
564
23.8
Comparator Economies Czech Republic
27
611
33.0
Hungary
35
395
15.0
Moldova
31
365
20.9
Poland
38
830
12.0
Slovak Republic
31
565
30.0
64
2. Historical data: Enforcing Contracts in Bulgaria Enforcing Contracts data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
88
87
Procedures (number)
40
39
39
39
Time (days)
564
564
564
564
Cost (% of claim)
23.8
23.8
23.8
23.8
3. The following graphs illustrate the Enforcing Contracts sub indicators in Bulgaria over the past 4 years:
65
Enforcing Contracts in Bulgaria
This topic looks at the efficiency of contract enforcement in Bulgaria.
Nature of Procedure (2010)
Indicator
Procedures (number)
39
Time (days)
564
Filing and service
105.0
Trial and judgment
334.0
Enforcement of judgment
125.0
Cost (% of claim)*
23.80
Attorney cost (% of claim)
10.0
Court cost (% of claim)
5.6
Enforcement Cost (% of claim)
8.2
66
Court information:
Sofia District Court
("Софийски районен съд")
* Claim assumed to be equivalent to 200% of income per capita.
67
68
1. Benchmarking Closing Business Regulations:
Bulgaria is ranked 83 overall for Closing a Business.
Ranking of Bulgaria in Closing Business - Compared to good practice and selected economies:
69
The following table shows Closing Business data for Bulgaria compared to good practice and comparator economies:
Good Practice Economies
Recovery rate (cents on the dollar)
Time (years)
Cost (% of estate)
0.4
Ireland
92.7
Japan
1
Singapore*
Selected Economy Bulgaria
31.0
3.3
9
Comparator Economies Czech Republic
55.9
3.2
17
Hungary
37.9
2.0
15
Moldova
28.2
2.8
9
Poland
31.3
3.0
20
Slovak Republic
55.3
4.0
18
* The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway
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2. Historical data: Closing Business in Bulgaria Closing a Business data
Rank Time (years) Cost (% of estate) Recovery rate (cents on the dollar)
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
79
83
3.3
3.3
3.3
3.3
9
9
9
9
32.4
32.1
32.1
31.0
3. The following graphs illustrate the Closing Business sub indicators in Bulgaria over the past 4 years:
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Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems.
Closing a Business
Enforcing Contracts
Trading Across Borders
Paying Taxes
Protecting Investors
Getting Credit
Economy
Registering Property
Negative Change
Starting a Business
Positive Change
Dealing with Construction Permits
The top 10 most-improved in Doing Business 2011
Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam
* For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking.
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Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brunei Darussalam
Brunei Darussalam made starting a business easier by improving efficiency at and implementing an electronic system for name searches. Brunei Darussalam income tax rate from 23.5% to 22% while also introducing a lower tax rate ranging from 5.5% to 11%. The introduction of an electronic customs system made trading easier.
the company registrar reduced the corporate for small businesses, in Brunei Darussalam
Bulgaria
Bulgaria eased business start-up by reducing the minimum capital requirement ($3,250) to 2 leva ($1.30). Bulgaria reduced employer contribution rates for social security.
Cape Verde
Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks.
Czech Republic
The Czech Republic simplified its labor tax processes and reduced employer contribution rates for social security. The Czech Republic made it easier to deal with insolvency by introducing further legal amendments to restrict setoffs in insolvency cases and suspending for some insolvent debtors the obligation to file for bankruptcy.
Grenada
Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users.
Hungary
Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy.
Kazakhstan
Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation.
Moldova
Moldova reduced employer contribution rates for social security.
Peru
Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals.
Poland
Poland eased property registration by computerizing its land registry.
Rwanda
Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank’s public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment.
Tajikistan
Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate.
from
5,000 leva
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Vietnam
Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors.
Zambia
Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations and introducing scanning machines at border posts. Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records.
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