Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized
58318
Albania
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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 Albania. 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 Albania is ranked 82 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.
Albania - Compared to global good practice economy as well as selected economies:
Albania's ranking in Doing Business 2011 Rank
Doing Business 2011
Ease of Doing Business
82
Starting a Business
45
Dealing with Construction Permits
170
Registering Property
72
Getting Credit
15
Protecting Investors
15
Paying Taxes
149
Trading Across Borders
75
Enforcing Contracts
89
Closing a Business
183
2
Summary of Indicators - Albania
Starting a Business
Procedures (number)
5
Time (days)
5
Cost (% of income per capita)
Dealing with Construction Permits
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)
331 381.3 6
Time (days)
42
Cost (% of property value)
3.4
Strength of legal rights index (0-10)
9
Depth of credit information index (0-6)
4
Public registry coverage (% of adults)
8.3
Private bureau coverage (% of adults)
0.0
Extent of disclosure index (0-10)
8
Extent of director liability index (0-10)
9
Ease of shareholder suits index (0-10)
5
Strength of investor protection index (0-10)
7.3
Payments (number per year)
44
Time (hours per year)
360
Profit tax (%)
8.5
Labor tax and contributions (%) Other taxes (%) Total tax rate (% profit) Trading Across Borders
16.8
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)
27.3 4.9 40.6 7 19 725 9 18 710 3
Enforcing Contracts
Closing a Business
Procedures (number)
39
Time (days)
390
Cost (% of claim)
38.7
Recovery rate (cents on the dollar)
0.0
Time (years)
no practice
Cost (% of estate)
no practice
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 0.24
0.20
Doing business has become easier (DB change score)
0.16
0.12
0.08
0.04
0.00
Croatia
Macedonia, FYR
Albania
Bosnia and Herzegovina
Hungary
Greece
6
1. Benchmarking Starting a Business Regulations:
Albania is ranked 45 overall for Starting a Business.
Ranking of Albania in Starting a Business - Compared to good practice and selected economies:
7
The following table shows Starting a Business data for Albania 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 Albania
5
5
16.8
0.0
Comparator Economies
12
55
17.7
30.5
Croatia
6
7
8.6
13.7
Greece
15
19
20.7
22.3
Hungary
4
4
8.2
10.2
Macedonia, FYR
3
3
2.5
0.0
Montenegro
7
10
1.9
0.0
Bosnia and Herzegovina
* 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 Albania Starting a Business data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
44
45
Procedures (number)
10
6
5
5
Time (days)
36
8
5
5
Cost (% of income per capita)
25.6
25.8
17.0
16.8
Min. capital (% of income per capita)
34.3
32.3
0.0
0.0
3. The following graphs illustrate the Starting a Business sub indicators in Albania over the past 4 years:
9
Starting a Business Summary - Albania
This table summarizes the procedures and costs associated with setting up a business in Albania. STANDARDIZED COMPANY Legal Form: Limited Liability Company (Shpk) City: Tirana
Registration Requirements: No:
Procedure
Time to complete
Cost to complete
1
Search for a unique company name
1
ALL 100
2
Notarize the incorporation documents
1
ALL 8700
3
Request and obtain the Registration Certification and unique business identification number with National Registration Center, NRC (Qendra Kombëtare për Regjistrim,QRK)
1
ALL 100
4
Registration with the Municipality Bureau of Internal Revenue
1
ALL 46500
5
Make a company seal
1
ALL (3,000 - 5,000)
10
Starting a Business Details - Albania
Procedure
1
Search for a unique company name
Time to complete:
1
Cost to complete:
ALL 100
Comment:
Procedure
2
Notarize the incorporation documents
Time to complete:
1
Cost to complete:
ALL 8700
Comment:
Fees to notarize the incorporation documents include: - Articles of incorporation: ALL 2,700. - Statute: ALL 2,700. - Eventual special proxy to an attorney: ALL 3,300. The above-mentioned professional fees are charged mostly in Euros. The legal fees for drafting the statute and the articles of incorporation vary greatly (from USD 100 to over USD 1,000), depending on the quality of legal services.
Procedure
3
Request and obtain the Registration Certification and unique business identification number with National Registration Center, NRC (Qendra Kombëtare për Regjistrim,QRK)
Time to complete:
1
Cost to complete:
ALL 100
Comment:
The NRC Law has established the National Registration Center as a new central public institution, which functions as a Single window where the entrepreneur can complete company registration, tax registration, social insurance, health insurance and labor directorate registration using a single application procedure (Article 59 of the law no. 9723 "on National Registration Center: NRC"). According to law no. 9723 "on National Registration Center: NRC", it takes 1 day to register at the NR since the electronic registry is now fully operational and has increased in capacity.
Procedure
4
Registration with the Municipality Bureau of Internal Revenue
Time to complete:
1
Cost to complete:
ALL 46500
Comment:
Local fees and tariffs include: - Environmental tax : ALL 25,000 - Green tax: ALL 5,000. - Billboard fee: ALL 1,500 (in Albanian) – ALL 3,000 (in foreign language) a year. - Property tax (assuming 100 sq. m in space), applied to any company-owned immovable property: ALL 200 per sq. m. a year.
11
Companies may pay local fees and taxes by Alba Post( a state-owned mailing services company) or commercial bank and must obtain proof of payment.
Procedure
5
Make a company seal
Time to complete:
1
Cost to complete:
ALL (3,000 - 5,000)
Comment:
12
13
1. Benchmarking Dealing with Construction Permits Regulations:
Albania is ranked 170 overall for Dealing with Construction Permits.
Ranking of Albania in Dealing with Construction Permits - Compared to good practice and selected economies:
14
The following table shows Dealing with Construction Permits data for Albania 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 Albania
24
331
381.3
Comparator Economies Bosnia and Herzegovina
16
255
578.1
Croatia
13
315
850.9
Greece
15
169
52.9
Hungary
31
189
9.8
Macedonia, FYR
21
146
1601.4
Montenegro
19
230
1215.0
15
2. Historical data: Dealing with Construction Permits in Albania Dealing with Construction Permits data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
172
170
Procedures (number)
24
24
24
24
Time (days)
331
331
331
331
461.0
435.0
386.1
381.3
Cost (% of income per capita)
3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Albania over the past 4 years:
16
Dealing with Construction Permits in Albania
The table below summarizes the procedures, time, and costs to build a warehouse in Albania. BUILDING A WAREHOUSE City: Tirana
Registration Requirements:
No:
Procedure
Time to complete
Cost to complete
1
Request and obtain recent property ownership certificate
30 days
ALL 2,870
2 *
Request and obtain extract of master plan of the plot from the Urban Planning Department
30 days
ALL 4,000
3 *
Request and obtain document attesting that the firm has no unpaid environmental fines
1 day
ALL 200
4 *
Request and obtain opinion of the District Urban Planning Department
10 days
ALL 2,000
5 *
Request and obtain project clearance from water authority
9 days
ALL 3,000
6 *
Request and obtain project clearance from environmental protection agency
8 days
no charge
7 *
Request and obtain electricity authority approval
5 days
ALL 500
8 *
Request and obtain Fire Department approval
30 days
ALL 20,000 17
9
Request a land permit from Urban Planning Department (Technical Commission)
1 day
no charge
10 *
Receive inspection from Technical Commission
1 day
no charge
11 *
Request and obtain decision of the Technical Commission
90 days
ALL 800,000
12
Request and obtain Building Permit
45 days
ALL 400,000
13
Receive on-site inspection of construction foundations
1 day
no charge
14
Receive on-site inspection of the completion of construction skeleton
1 day
no charge
15
Receive on-site inspection of the adjustment of the surroundings of the building according to the drawings
1 day
no charge
16 *
Request and connect to telecommunications services
30 days
ALL 30,000
17 *
Request and connect to water and sewage services
20 days
ALL 40,000
18 *
Request and connect to electricity services
20 days
ALL 40,000
19
Submit report on the completion of works and request on-site inspection by an authorized expert
1 day
no charge
20
Receive on-site inspection by an authorized expert and obtain approval
30 days
no charge
21
Receive inspection from municipality
1 day
no charge
22
Receive compliance report after inspection
2 days
no charge
23
Obtain occupancy permit
30 days
no charge
24
Register with the Real Estate Registry
60 days
ALL 4,320
* Takes place simultaneously with another procedure.
18
Dealing with Construction Permits Details - Albania Procedure
1
Request and obtain recent property ownership certificate
Time to complete:
30 days
Cost to complete:
ALL 2,870
Agency:
Real Estate Registry
Comment:
The certificate of ownership of property (the construction site) can be obtained from the Real Estate Registry. As of February 2008 the validity term of the certificate should be at most 72 hours. The Registry’s automated system expedites this process. As of February 2008 Real Estate Registry started including the mailing fee into the cost of obtaining a recent copy of property ownership certificate.
Procedure
2
Request and obtain extract of master plan of the plot from the Urban Planning Department
Time to complete:
30 days
Cost to complete:
ALL 4,000
Agency:
Municipal Urban Planning Department
Comment:
The master and general plans of the plot are issued by the municipality’s Urban Planning Department. The general plan is a topographic map of the situation of the existing property, while the master plan is a plan of the proposed development. The fee covers both plans. The master plan should contain the approval of the municipality’s Department of Road Projects which can be done internally. Article 36 of the Law On City Planning states that the plot’s master plan must be submitted to the technical secretary of the Territory Management Council and to the municipality within 15 days of the date of its inclusion. It will be available to the company within 30 days.
Procedure
3
Request and obtain document attesting that the firm has no unpaid environmental fines
Time to complete:
1 day
Cost to complete:
ALL 200
Agency:
Environmental Authority
Comment:
This attestation is required by Point 18 of the Council of Ministers’ approval of the city planning regulations. It must be submitted with the required set of documents when applying for the construction site permit and the construction permit (up to three stories).
Procedure
4
Request and obtain opinion of the District Urban Planning Department
Time to complete:
10 days
Cost to complete:
ALL 2,000
Agency:
District Urban Planning Department
Comment:
BuildCo should request an attestation on the drawings’ compliance with urban zoning regulations from the district Urban Planning Department. This requirement is provided for by Point 21 of the regulations on construction (of up to three stories), "Documents That an Investor Should Submit for Obtaining Construction Site Permit and Construction 19
Permit," published by the Council of Tirana Municipality.
Procedure
5
Request and obtain project clearance from water authority
Time to complete:
9 days
Cost to complete:
ALL 3,000
Agency:
Water Authority
Comment:
The water authority approves the project and indicates the nearest water supply sources. Since January 2008 the Water and Sewage Company introduced a new cost for granting a project clearance at the initial stage of designing at the amount of ALL 3,000.
Procedure
6
Request and obtain project clearance from environmental protection agency
Time to complete:
8 days
Cost to complete:
no charge
Agency:
Environmental Protection Agency
Comment:
Procedure
7
Request and obtain electricity authority approval
Time to complete:
5 days
Cost to complete:
ALL 500
Agency:
Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure
8
Request and obtain Fire Department approval
Time to complete:
30 days
Cost to complete:
ALL 20,000
Agency:
Fire Department
Comment:
This procedure takes 30 days because while the Fire Department gives the approval, the Prefecture holds the actual seal that must be used to stamp the approval. In practice, the public actually make this request at the Prefecture (although according to the Fire Department, the law stipulates that Fire Department is the handling agency). The Fire Department then has to call the Prefecture to ask for files, which are forwarded to the Fire Department. The Fire Department must then review and send back to the Prefecture to stamp the approval. This procedure can takes place twice, before the Land Permit and before the Building Permit. The fee for this procedure is 0.5% of the project value for objects with investment value of up to ALL 50 million, according to Decision No. 285 (of June 27, 2002) "On Tariffs of the Police for Protection against Fire Services." The fee is estimated at 0.5% of the design value (generally 10% of the warehouse value, which would be ALL 4 million in the case considered here). Hence, the fee is ALL 20,000. This cost is to cover the both stages- for 20
land permit and for building permit.
Procedure
9
Request a land permit from Urban Planning Department (Technical Commission)
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
BuildCo must request the Urban Planning Department to issue a land clearance for the construction site.
Procedure
10
Receive inspection from Technical Commission
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
Upon inspection, the Technical Commission prepares an authorization letter, attesting that the land is clear for construction.
Procedure
11
Request and obtain decision of the Technical Commission
Time to complete:
90 days
Cost to complete:
ALL 800,000
Agency:
Territory Adjustment Commission
Comment:
The Territory Adjustment Commission convenes every 30 days. It is a commission chaired by the mayor that is constituted of 9 members—the mayor, 6 from political parties, 1 elected by 2/3 of the municipal council and 1 representative of the central government. However, owing to the recent backlog, with too many files processed by too few civil servants, as of April 2007, the Commission had not convened since December 2006. The fee is 2-4% of the overall project value.
Procedure
12
Request and obtain Building Permit
Time to complete:
45 days
Cost to complete:
ALL 400,000
Agency:
Territory Adjustment Commission
Comment:
The building permit is valid for a term determined by the Territory Adjustment Commission. According to Article 46 of the law "On City Planning," the permit is valid for 180 days. This permit grants the right to build on the site (construction site permit is already granted). The building permit shall be issued to only juridical persons who are licensed contractors. Several forms and documents are required to obtain this permit: - Technical project. - Chart of construction work. - Table of costs. - Seismologic study. 21
According to Article 50 of the law "On City Planning," the Territory Management Council has 45 days to decide on the construction permit. According to Article 51 of the same law, the fee is 1% of the investment value. As of 2008 construction companies do not have to notify the construction police about the start of construction works. The construction police has been moved under the Municipality’s Urban Planning Department.
Procedure
13
Receive on-site inspection of construction foundations
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure
14
Receive on-site inspection of the completion of construction skeleton
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure
15
Receive on-site inspection of the adjustment of the surroundings of the building according to the drawings
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The on-site inspection occurs in 6–7 days.
Procedure
16
Request and connect to telecommunications services
Time to complete:
30 days
Cost to complete:
ALL 30,000
Agency:
Albtelecom
Comment:
Procedure
17
Request and connect to water and sewage services
22
Time to complete:
20 days
Cost to complete:
ALL 40,000
Agency:
Water and Sewerage Agencies
Comment:
Procedure
18
Request and connect to electricity services
Time to complete:
20 days
Cost to complete:
ALL 40,000
Agency:
Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure
19
Submit report on the completion of works and request on-site inspection by an authorized expert
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
Within 30 days of completing construction, BuildCo submits to the Urban Planning Department a report that documents construction materials and associated costs and requests an inspection of the construction site.
Procedure
20
Receive on-site inspection by an authorized expert and obtain approval
Time to complete:
30 days
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The authorized expert from the Urban Planning Department will sign the inspection completion statement after performing the on-site inspection.
Procedure
21
Receive inspection from municipality
Time to complete:
1 day
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The municipal inspection takes place several weeks later.
Procedure
22
Receive compliance report after inspection
23
Time to complete:
2 days
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The construction firm usually receives the compliance report within 2-3 days of inspection. Another 30 days are required to obtain the occupancy permit.
Procedure
23
Obtain occupancy permit
Time to complete:
30 days
Cost to complete:
no charge
Agency:
Municipal Urban Planning Department
Comment:
The occupancy permit grants the right to use the building after construction is completed. Addressed to the Urban Planning Department, the request must be accompanied by a set of documents related to the construction process and by the completion statement, duly signed by the authorized expert.
Procedure
24
Register with the Real Estate Registry
Time to complete:
60 days
Cost to complete:
ALL 4,320
Agency:
Real Estate Registry
Comment:
Upon receiving the occupancy permit, BuildCo registers the warehouse with the Real Estate Registry. It does so by submitting the construction file, which includes the building permit and inspection reports (cited in Procedure 1). The registration tax is EUR 8 per sq. m., or EUR 10,405. (The total fee thus corresponds to ALL 4,250.)
24
25
1. Benchmarking Registering Property Regulations:
Albania is ranked 72 overall for Registering Property.
Ranking of Albania in Registering Property - Compared to good practice and selected economies:
26
The following table shows Registering Property data for Albania 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 Albania
6
42
3.4
Comparator Economies Bosnia and Herzegovina
7
33
5.3
Croatia
5
104
5.0
Greece
11
22
12.7
Hungary
4
17
5.0
Macedonia, FYR
5
58
3.2
Montenegro
7
71
3.3
* The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates
27
2. Historical data: Registering Property in Albania Registering Property data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
69
72
Procedures (number)
6
6
6
6
Time (days)
42
42
42
42
Cost (% of property value)
3.5
3.4
3.4
3.4
3. The following graphs illustrate the Registering Property sub indicators in Albania over the past 4 years:
28
Registering Property in Albania
This topic examines the steps, time, and cost involved in registering property in Albania.
STANDARDIZED PROPERTY Property Value: 17,660,061.35 City: Tirana Registration Requirements:
No:
Procedure
Time to complete
Cost to complete
1 *
The seller obtains an ownership title certificate
10 days (simultaneous with procedures 2 and 3)
950 ALL (500 ALL is the property certificate and 450 is the map)
2 *
Verification of property certificate and relevant map at the Real Estate Property Registry
2 days (simultaneous with procedures 1 and 3)
550 ALL (updated record file) + 950 ALL (updated certificate of title with a layout)
3 *
Comparison of property map with the real situation and position of the land
1 day (simultaneous with procedures 1 and 2)
50 to 100 ALL per square meter of the land
29
4
Notarization of the sale and purchase contract by a notary public
1 day
The fees applied are calculated according to the following schedule:Value of real estate property Notary fees From 100,000ALL up to 3,000,000 ALL 3,500 to 7,000 ( fee is estimated proportionally)From 3,000,000ALL up to 4,000,000ALL from 7,000ALL up to 8,500ALL From 4,000,000ALL up to 6,000,000ALL from 8,500ALL up to 10,000ALL From 6,000,000ALL up to 8,000,000ALL from 10,000ALL up to 15,000ALL From 8,000,000ALL up to 10,000,000ALL from 15,000ALL up to 18,000ALL From 10,000,000ALL up to 15,000,000ALL from 18,000ALL up to 23,000ALLFrom 15,000,000ALL up to 25,000,000ALL from 23,000ALL up to 30,000ALL From 25,000,000ALL up to 40,000,000ALL from 30,000ALL up to 35,000ALL From 40,000,000ALL up to 50,000,000ALL from 35,000ALL up to 40,000ALL From 50,000,000ALL up to 70,000,000ALL from 40,000ALL up to 50,000ALL From 70,000,000ALL up to 100,000,000ALL from 50,000ALL up to 100.000ALLOver 100,000,000ALL Up to 150,000 ALL
30
5
Payment of income tax at a second-tier bank
1 day
0.5% - 3% of property value, according to the following scale by Order of the Ministry of Finance No. 5, dated January 30, 2006: for properties the sale price of which is: from 0 up to ALL 2,000,000, the income tax is 0.5% of the sale price; over ALL 2,000,000 up to ALL 4,000,000 is 1% of the sale price; over ALL 4,000,000 up to ALL 6,000,000, is 2% of the sale price; over ALL 6,000,000 and up, is 3% of the sale price. In addition, the transfer of property is subject to 10% capital gains tax as per the law no: 9716 of 16.04.2007
6
Apply for registration at the Real Estate Registry Office
30 days
1,800 ALL (730 ALL registration fee, 950 issuance fee and 120 mailing service fee)
* Takes place simultaneously with another procedure.
31
Registering Property Details - Albania Procedure
1
The seller obtains an ownership title certificate
Time to complete:
10 days (simultaneous with procedures 2 and 3)
Cost to complete:
950 ALL (500 ALL is the property certificate and 450 is the map)
Agency:
Real Estate Registry Office
Comment:
The seller files with the relevant Real Estate Registry Office the required documents in order to obtain an updated certificate of title. The Certificate includes the property number, cadastral area, name of owner, surface in square meters, building data (if there are any) and a special section certifying that the property is (not) subject to any dispute, lien, encumbrance, mortage or lease agreement. The Certificate should be associated with the relevant map of the property. The ownership title certificate is always in possession of the seller. In order to avoid any possible dispute, a new certificate is strictly required for any kind of property transfer.
Procedure
2
Verification of property certificate and relevant map at the Real Estate Property Registry
Time to complete:
2 days (simultaneous with procedures 1 and 3)
Cost to complete:
550 ALL (updated record file) + 950 ALL (updated certificate of title with a layout)
Agency:
Real Estate Property Registry
Comment:
The buyer verifies the property Certificate and relevant map at the Real Estate Registry. This is done in order to avoid any fraud on the part of the seller, as sometimes happens. Such procedure is not mandatory, but sometimes is considered necessary, especially regarding properties with considerable economic value.
Procedure
3
Comparison of property map with the real situation and position of the land
Time to complete:
1 day (simultaneous with procedures 1 and 2)
Cost to complete:
50 to 100 ALL per square meter of the land
Comment:
This procedure prevents the buyer from any dispute with third parties caused from overlapping, borders misfit and land surface. Verification is performed by a private authorized expert (topographer) at the buyer's expense. Such procedure is not mandatory, but sometimes is considered necessary especially regarding properties with considerable economic value. The fee is between 50 – 100 ALL per square meter of land.
Procedure
4
Time to complete:
Notarization of the sale and purchase contract by a notary public
1 day
32
The fees applied are calculated according to the following schedule:Value of real estate property Notary fees From 100,000ALL up to 3,000,000 ALL 3,500 to 7,000 ( fee is estimated proportionally)From 3,000,000ALL up to 4,000,000ALL from 7,000ALL up to 8,500ALL From 4,000,000ALL up to 6,000,000ALL from 8,500ALL up to 10,000ALL From 6,000,000ALL up to 8,000,000ALL from 10,000ALL up to 15,000ALL From 8,000,000ALL up to 10,000,000ALL from 15,000ALL up to 18,000ALL From 10,000,000ALL up to 15,000,000ALL from 18,000ALL up to 23,000ALLFrom 15,000,000ALL up to 25,000,000ALL from 23,000ALL up to 30,000ALL From 25,000,000ALL up to 40,000,000ALL from 30,000ALL up to 35,000ALL From 40,000,000ALL up to 50,000,000ALL from 35,000ALL up to 40,000ALL From 50,000,000ALL up to 70,000,000ALL from 40,000ALL up to 50,000ALL From 70,000,000ALL up to 100,000,000ALL from 50,000ALL up to 100.000ALLOver 100,000,000ALL Up to 150,000 ALL
Cost to complete:
Comment:
Procedure
5
Payment of income tax at a second-tier bank
Time to complete:
1 day
Cost to complete:
0.5% - 3% of property value, according to the following scale by Order of the Ministry of Finance No. 5, dated January 30, 2006: for properties the sale price of which is: from 0 up to ALL 2,000,000, the income tax is 0.5% of the sale price; over ALL 2,000,000 up to ALL 4,000,000 is 1% of the sale price; over ALL 4,000,000 up to ALL 6,000,000, is 2% of the sale price; over ALL 6,000,000 and up, is 3% of the sale price. In addition, the transfer of property is subject to 10% capital gains tax as per the law no: 9716 of 16.04.2007
Comment:
The seller is subject to the income tax due the transfer of the title of ownership on the real estate property. Such tax is paid at a second-tier bank in the territory of the Republic of Albania, with whom the relevant Real Estate Registry Office maintains a banking account, and the seller obtains a receipt of payment of income tax. The alienation of a real estate property from a legal entity to another one is also subject to capital gains tax, at a rate of 20% of the transaction value. According to Instruction of Ministry of Finance and Ministry of Justice No.9, dated 26.02.2008 "On taxes for transfer of ownership rights of real estates"The income tax for the property transfer is 10% of the sale price.
Procedure
6
Apply for registration at the Real Estate Registry Office
Time to complete:
30 days
Cost to complete:
1,800 ALL (730 ALL registration fee, 950 issuance fee and 120 mailing service fee)
Agency:
Real Estate Registry Office
Comment:
The buyer submits the original version of the sale and purchase contract and the bank receipt for payment of income tax to the relevant Real Estate Registry Office for the registration of the real estate property under the buyer's name. The Tirana Real Estate Registry handles the registration of the real estate properties mainly by means of a computerized system.
33
34
1. Benchmarking Getting Credit Regulations:
Albania is ranked 15 overall for Getting Credit.
Ranking of Albania in Getting Credit - Compared to good practice and selected economies:
35
The following table shows Getting Credit data for Albania 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 Albania
9
4
8.3
0.0
Comparator Economies Bosnia and Herzegovina
5
5
30.2
47.2
Croatia
6
4
0.0
81.2
Greece
3
5
0.0
61.5
Hungary
7
5
0.0
11.4
Macedonia, FYR
7
4
39.4
0.0
10
2
26.7
0.0
Montenegro
* 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.
36
2. Historical data: Getting Credit in Albania Getting Credit data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
14
15
Strength of legal rights index (0-10)
9
9
9
9
Depth of credit information index (0-6)
0
4
4
4
Private bureau coverage (% of adults)
0.0
0.0
0.0
0.0
Public registry coverage (% of adults)
0.0
8.3
9.9
8.3
3. The following graphs illustrate the Getting Credit sub indicators in Albania over the past 4 years:
37
Getting Credit in Albania
The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Albania.
Getting Credit Indicators (2010)
Private bureau coverage (% of adults)
Indicator
Private credit bureau
Public credit registry
4
Are data on both firms and individuals distributed?
No
Yes
1
Are both positive and negative data distributed?
No
Yes
1
Does the registry distribute credit information from retailers, trade creditors or utility companies as well as financial institutions?
No
No
0
Are more than 2 years of historical credit information distributed?
No
No
0
Is data on all loans below 1% of income per capita distributed?
No
Yes
1
Is it guaranteed by law that borrowers can inspect their data in the largest credit registry?
No
Yes
1
Coverage
0.0
8.3
Number of individuals
0
190,399
Number of firms
0
7,506
38
Strength of legal rights index (0-10)
9
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 ?
Yes
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?
No
During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement?
Yes
Does the law authorize parties to agree on out of court enforcement?
Yes
39
40
1. Benchmarking Protecting Investors Regulations:
Albania is ranked 15 overall for Protecting Investors.
Ranking of Albania in Protecting Investors - Compared to good practice and selected economies:
41
The following table shows Protecting Investors data for Albania compared to good practice and comparator economies:
Good Practice Economies
Strength of investor protection index (0-10)
9.7
New Zealand
Selected Economy Albania
7.3
Comparator Economies Bosnia and Herzegovina
5.0
Croatia
4.0
Greece
3.3
Hungary
4.3
Macedonia, FYR
6.7
Montenegro
6.3
42
2. Historical data: Protecting Investors in Albania Protecting Investors data
Doing Business 2008
Rank Strength of investor protection index (0-10)
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
15
15
2.7
7.3
7.3
7.3
e G
re
ec
ia ro at C
un ga ry H
H
Bo er snia ze go and vi na
ro eg en on t M
ac e FY don R ia,
M
an ia lb A
N
ew
Ze
al a
nd
3.3
4.0
4.3
5.0
6.3
6.7
7.3
9.7
3. The following graph illustrates the Protecting Investors index in Albania compared to best practice and selected Economies:
Note: The higher the score, the greater the investor protection.
43
Protecting Investors in Albania
The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Albania.
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
8 3 0 2 2 1 9 2 2 1 1
44
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)
1 1 1 5 1 1 0 1 1 1 7.3
45
46
1. Benchmarking Paying Taxes Regulations:
Albania is ranked 149 overall for Paying Taxes.
Ranking of Albania in Paying Taxes - Compared to good practice and selected economies:
47
The following table shows Paying Taxes data for Albania 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 Albania
44
360
40.6
Comparator Economies Bosnia and Herzegovina
51
422
23.0
Croatia
17
196
32.5
Greece
10
224
47.2
Hungary
14
277
53.3
Macedonia, FYR
40
119
10.6
Montenegro
77
372
26.6
* The following economies are also good practice economies for : Payments (number per year): Qatar
48
2. Historical data: Paying Taxes in Albania Paying Taxes data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
152
149
46.8
50.5
44.6
40.6
Payments (number per year)
44
44
44
44
Time (hours per year)
364
368
368
360
Rank Total tax rate (% profit)
3. The following graphs illustrate the Paying Taxes sub indicators in Albania over the past 4 years:
49
Paying Taxes in Albania
The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Albania, as well as measures of administrative burden in paying taxes.
Tax or mandatory contribution
Payments (number)
Notes on Payments
Time (hours)
Statutory tax rate
Value added tax
12
Vehicle tax
1
ALL 6,000
Tax on impact on environment
1
2.0%
Circulation tax
1
ALL 64,000
Property tax
1
ALL 140
Fuel tax
1
Property transfer tax Municipal taxes
144
20.0%
Tax base
Totaltax rate (% profit)
Notes on TTR
value added per truck
0.00
value of investment
0.00
per truck
0.40
area of building (land) in square meters
0.80
75% of price, with a maximum of ALL37
fuel price
1.00
1
2.0%
sale price
1.20
1
ALL 225,000
type of business
1.40
50
Health insurance contribution
0
Corporate income tax
13
Social security contributions Totals
paid jointly
1.7%
gross salaries
2.50
120
10.0%
taxable profit
8.50
12
96
16.7%
gross salaries
24.70
44
360
40.6
51
52
1. Benchmarking Trading Across Borders Regulations:
Albania is ranked 75 overall for Trading Across Borders.
Ranking of Albania in Trading Across Borders - Compared to good practice and selected economies:
53
The following table shows Trading Across Borders data for Albania 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 Albania
7
19
725
9
18
710
Comparator Economies Bosnia and Herzegovina
5
16
1240
7
16
1200
Croatia
7
20
1281
8
16
1141
Greece
5
20
1153
6
25
1265
Hungary
5
18
1225
7
17
1215
Macedonia, FYR
6
12
1376
6
11
1380
Montenegro
6
14
775
6
14
890
* The following economies are also good practice economies for : Time to export (days): Estonia
54
2. Historical data: Trading Across Borders in Albania Trading Across Borders data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
70
75
Cost to export (US$ per container)
745
770
725
725
Cost to import (US$ per container)
750
775
710
710
Documents to export (number)
7
7
7
7
Documents to import (number)
9
9
9
9
Time to export (days)
21
21
19
19
Time to import (days)
22
22
18
18
Rank
3. The following graphs illustrate the Trading Across Borders sub indicators in Albania over the past 4 years:
55
56
Trading Across Borders in Albania
These tables list the procedures necessary to import and export a standardized cargo of goods in Albania. The documents required to export and import the goods are also shown.
Nature of Export Procedures (2010)
Documents preparation
Duration (days)
US$ Cost
11
130
Customs clearance and technical control
2
65
Ports and terminal handling
3
350
Inland transportation and handling
3
180
19
725
Totals
Nature of Import Procedures (2010)
Documents preparation
Duration (days)
US$ Cost
12
115
Customs clearance and technical control
2
65
Ports and terminal handling
2
350
Inland transportation and handling
2
180
18
710
Totals
57
Documents for Export and Import
Export
Bill of lading Cargo release order Certificate of origin Commercial Invoice Customs export declaration Packing list Technical standard/health certificate Import
Bill of lading Cargo release order Certificate of origin Commercial Invoice Customs import declaration Customs transit document Packing list Technical standard/health certificate Terminal handling receipts
58
59
1. Benchmarking Enforcing Contracts Regulations:
Albania is ranked 89 overall for Enforcing Contracts.
Ranking of Albania in Enforcing Contracts - Compared to good practice and selected economies:
60
The following table shows Enforcing Contracts data for Albania 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 Albania
39
390
38.7
Comparator Economies Bosnia and Herzegovina
37
595
40.4
Croatia
38
561
13.8
Greece
39
819
14.4
Hungary
35
395
15.0
Macedonia, FYR
37
370
33.1
Montenegro
49
545
25.7
61
2. Historical data: Enforcing Contracts in Albania Enforcing Contracts data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
Rank
..
..
91
89
Procedures (number)
39
39
39
39
Time (days)
390
390
390
390
Cost (% of claim)
38.7
38.7
38.7
38.7
3. The following graphs illustrate the Enforcing Contracts sub indicators in Albania over the past 4 years:
62
Enforcing Contracts in Albania
This topic looks at the efficiency of contract enforcement in Albania.
Nature of Procedure (2010)
Indicator
Procedures (number)
39
Time (days)
390
Filing and service
30.0
Trial and judgment
180.0
Enforcement of judgment
180.0
Cost (% of claim)*
38.70
Attorney cost (% of claim)
21.6
Court cost (% of claim)
7.9
Enforcement Cost (% of claim)
9.2
63
Court information:
Tirana District Court
("Gjykata e Rrethit Gjyqesor Te")
* Claim assumed to be equivalent to 200% of income per capita.
64
65
1. Benchmarking Closing Business Regulations:
Albania is ranked 183 overall for Closing a Business.
Ranking of Albania in Closing Business - Compared to good practice and selected economies:
66
The following table shows Closing Business data for Albania 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 Albania
0.0
no practice
no practice
Comparator Economies Bosnia and Herzegovina
34.7
3.3
9
Croatia
28.7
3.1
15
Greece
43.2
2.0
9
Hungary
37.9
2.0
15
Macedonia, FYR
20.7
2.9
28
Montenegro
43.4
2.0
8
* The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway
67
2. Historical data: Closing Business in Albania Closing a Business data
Doing Business 2008
Doing Business 2009
Doing Business 2010
Doing Business 2011
..
..
183
183
Time (years)
no practice
no practice
no practice
no practice
Cost (% of estate)
no practice
no practice
no practice
no practice
0.0
0.0
0.0
0.0
Rank
Recovery rate (cents on the dollar)
3. The following graphs illustrate the Closing Business sub indicators in Albania over the past 4 years:
68
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.
69
Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Albania
Albania made it easier and less costly for companies to pay taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment.
Bosnia and Herzegovina
Bosnia and Herzegovina reduced delays in property registration at the land registry in Sarajevo. Bosnia and Herzegovina simplified its labor tax processes, reduced employer contribution rates for social security and abolished its payroll tax.
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.
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.
Croatia
Croatia eased business start-up by allowing limited liability companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design confirmation with a single certificate, simplifying and speeding up the construction permitting process.
Greece
Greece made transferring property more costly by increasing the transfer tax from 1% of the property value to 10%.
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.
Macedonia, FYR
FYR Macedonia made it easier to start a business by further improving its one-stop shop. FYR Macedonia lowered tax costs for businesses by requiring that corporate income tax be paid only on distributed profits.
Montenegro
Montenegro eliminated several procedures for business start-up by introducing a single registration form for submission to the tax administration. An amendment to Montenegro’s corporate income tax law removed the obligation for advance payments and abolished the construction land charge. Montenegro’s customs administration simplified trade by eliminating the requirement to present a terminal handling receipt for exporting and importing.
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.
the company registrar reduced the corporate for small businesses, in Brunei Darussalam
70
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.
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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