74662 SUBNATIONAL DOING BUSINESS IN ITALY 2013 Smarter Regulations for Small and Medium-Size Enterprises COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 13 CITIES AND 7 PORTS WITH 185 ECONOMIES © 2013 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org Some rights reserved. 1 2 3 4 15 14 13 12 A copublication of The World Bank and the International Finance Corporation. This work is a product of the staff of The World Bank with external contributions. Note that The World Bank does not necessarily own each component of the content included in the work. The World Bank therefore does not warrant that the use of the content contained in the work will not infringe on the rights of third parties. The risk of claims resulting from such infringement rests solely with you. 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SUBNATIONAL ITALY Smarter Regulations for Small and Medium-Size Enterprises COMPARING BUSINESS REGULATIONS FOR DOMESTIC FIRMS IN 13 CITIES AND 7 PORTS WITH 185 ECONOMIES A COPUBLICATION OF THE WORLD BANK AND THE INTERNATIONAL FINANCE CORPORATION ii DOING BUSINESS IN ITALY 2013 THE DOING BUSINESS WEBSITE Doing Business in Italy 2013 report Download reports http://www.doingbusiness.org/italy Access to Doing Business reports as well as Current features subnational and regional reports, reform case News on the Doing Business project studies and customized economy and regional http://www.doingbusiness.org profiles http://www.doingbusiness.org/Reports Doing Business reforms Short reform summaries Subnational and regional projects http://www.doingbusiness.org/Reforms Differences in business regulations at the subnational and regional level Methodology and research http://www.doingbusiness.org/Subnational- The methodology and research papers Reports underlying Doing Business http://www.doingbusiness.org/Methodology Law library http://www.doingbusiness.org/Research Online collection of laws and regulations relating to business and gender issues http://www.doingbusiness.org/Law-library http://wbl.worldbank.org Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet Contents Doing Business in Italy 2013 is a new subna- more than 50 economies benchmarked Executive summary 1 tional report of the Doing Business series. It in other subnational Doing Business stud- About Doing Business and measures business regulations and their en- ies. All data and reports are available at Doing Business in Italy 2013 8 forcement across 4 indicators in 13 Italian cit- www.doingbusiness.org/subnational. ies: Bari (Apulia), Bologna (Emilia-Romagna), Starting a business 19 Cagliari (Sardinia), Campobasso (Molise), Doing Business investigates the regulations that enhance business activity and those that Dealing with Catanzaro (Calabria), L’Aquila (Abruzzo), constrain it. Regulations affecting 5 stages construction permits 26 Milan (Lombardy), Naples (Campania), Padua (Veneto), Palermo (Sicily), Potenza of the life of a business are measured at the Registering property 32 (Basilicata), Rome (Latium), and Turin subnational level in Italy: starting a business, dealing with construction permits, registering Enforcing contracts 36 (Piedmont) and the indicator trading across borders in 7 ports: Cagliari (Sardinia), property, trading across borders and enforc- Trading across borders 42 Catania (Sicily), Genoa (Liguria), Gioia Tauro ing contracts. These indicators were selected (Calabria), Naples (Campania), Taranto because they cover areas of local jurisdiction (Apulia), Trieste (Friuli-Venezia Giulia). The or practice. The indicators are used to ana- Data notes 48 cities were selected by the Department for lyze economic outcomes and identify what Planning and Coordination of Economic reforms have worked, where and why. The City tables 58 Policy (DIPE) of the Presidency of the Council data in Doing Business in Italy 2013 are current Indicator tables 61 of Ministers of the Italian Republic. The cities as of June 1st, 2012. can be compared against each other, and List of procedures: with 185 economies worldwide. This project is the result of collaboration of starting a business 64 the Government of the Italian Republic’s Department for Planning and Coordination List of procedures: Comparisons with other economies are of Economic Policy of the Presidency of the dealing with based on the indicators in Doing Business 2013: Smarter Regulations for Small and Medium-Size Council of Ministers (DIPE) with the Global construction permits 71 Enterprises, the tenth in a series of annual Indicators and Analysis Department of the List of procedures: reports published by the World Bank and World Bank Group. registering property 91 the International Finance Corporation. The indicators in Doing Business in Italy 2013 are Indicator details— also comparable with over 350 cities from enforcing contracts 98 Indicator details— trading across borders 99 Acknowledgments 100 1 Executive summary In the 1950s and 60s, Italy successfully Since 2011, Italy’s government has taken made the transition from a rural economy far-reaching measures to restore confi- with a large agricultural sector, to one dence, stabilize the fiscal situation and where industry and manufacturing are remedy structural weaknesses. Under the the engines of growth.1 However, over auspices of the “Europe 2020 Strategy the past two decades, Italy’s growth rate for Intelligent, Sustainable and Inclusive lagged behind other EU countries, such as Growth,” Italy’s “Stability Program” and Germany and France. The current global “National Reform Program” focus on fis- crisis originated abroad, but longstanding cal consolidation, on the one hand, and structural weaknesses have exacerbated promoting growth, on the other.6 The its effects inside Italy and triggered the fiscal consolidation measures include worst recession in decades. Since 2008, adjusting taxation to increase taxes on Italy’s economy has shrunk by more than consumption and property while reduc- 5%. Today, unemployment is at 10.7% ing taxes on business activity and work. and youth unemployment has hit a record The debt reduction strategy is to rein in 34.5%.2 And despite the government’s spending in the medium term. prudent fiscal policy, Italy’s public debt- to-GDP ratio is among the highest of the However, the heart of Italy’s problem was OECD high-income economies, while and is how to get back to more buoyant its private debt levels remain relatively economic growth. At a time of crisis, this moderate.3 The International Monetary growth cannot come from an unsustain- Fund (IMF) expects the Italian economy able expansion of public spending and to contract by another 2.3% in 2012 and there is also recognition of the limits of by 0.7% in 2013—with growth returning, prolonged austerity. There is, in fact, albeit only moderately, in 2014.4 greater acceptance among policymakers and the business community that growth Italy’s ranking on the World Economic has to come from boosting total-factor Forum (WEF)’s “competitiveness index” productivity. This means increasing is 21st out of the 27 EU member states.5 efficiency, productivity and competitive- Italy’s main strengths are well-developed ness by allowing more competition in the enterprise clusters, a broad presence in product and services markets, encourag- the value chain, corporate activity spread ing small and medium-size firms to invest among many firms and high firm-level more on innovation, further liberalizing innovation. However, the WEF report the economy, reforming the labor market recognizes that Italy’s potential is not and creating a flexible and simple fiscal fully realized due to weak competition, system that is transparent and efficient in burdensome government regulations and its administration. red-tape. Without reforms to address these structural gaps and obstacles to Four national action plans—“Save Italy” competitiveness, Italy’s growth is likely to (Salva Italia7), “Grow Italy” (Cresci remain sluggish over the medium term. Italia8), “Simplify Italy” (Semplifica Italia9) and the “Cohesion Action Plan” (Piano di Azione Coesione10)—started to 2 DOING BUSINESS IN ITALY 2013 tackle structural weaknesses, cut red tape, electronic submission of applications for FIGURE 1.1 Comparing the regions of the improve the business environment and business start-up and construction proj- center-north to the south with respect to population, number of unlock competitiveness. ects. Furthermore, a single interface for active firms and contribution to customs services was created, making it gross national income The “Save Italy” decree, adopted at the easier for businesses to manage customs end of 2011, aimed to ensure financial sta- % documents.12 A new tax framework for 80 bility, growth and social justice. Among businesses13 reduces the tax burden on other things, it introduced regulations to 70 capital investments to encourage eco- free up the establishment and opening 60 nomic growth. The decrees also allow for hours of commercial businesses and substitutive powers that come into effect 50 reduce restrictions on business activities. in the event of non-action by an adminis- 40 The powers of Italy’s Antitrust Authority tration (silence-is-consent rules). 30 were strengthened, extending the range 20 of administrative acts it can scrutinize. Finally, the “Cohesion Action Plan” is 10 A “companies’ court” (Tribunale delle expected to lead to a more efficient ab- 0 Imprese) was set up with the aim of re- sorption and management of EU funds, in Share of Share of Share of ducing the long delays for commercial particular in the south of Italy. Specifically, total GNI active total enterprises population dispute resolution. In addition, new the plan aims to set the stage to resume Center-North bankruptcy procedures were put in place, public investment in infrastructure and South similar to Chapter 11 in the United States, improve the quality of services and edu- Source: Atlante delle Competitività, Unioncamere Nazionale to protect entrepreneurs under strain and cation in the south. Any strategy to over- and Istituto Guglielmo Tagliacarne, 2010. facilitate the continuation of their busi- come economic lags and deep-rooted ness activities. weaknesses that have accumulated over the years must pay particular attention to depending on where they establish their The “Grow Italy” and “Simplify Italy” the untapped growth potential of Italy’s businesses. This study benchmarks 13 decrees aimed to encourage private south (known as the Mezzogiorno). While cities and 7 ports on 5 Doing Business entrepreneurship; facilitate access to Italy’s center-north is characterized by topics. The summary results for starting markets; create an environment more well-developed industrial, service and in- a business, dealing with construction conducive to domestic and foreign invest- frastructure networks, the south is marred permits, registering property and enforc- ment; promote innovation, efficiency and by a partial and outdated infrastructure ing contracts across the 13 cities are pre- transparency in Public Administration; network and an old and inefficient indus- sented in table 1.1. The results for trading and accelerate the adoption of informa- trial system. The south has traditionally across borders in the 7 ports measured tion and communication technologies. contributed less to the national economy, are presented in table 1.2. Specific measures under the “Grow as evidenced by a number of indicators.14 Italy” and “Simplify Italy” decrees include Some observations should be made. GDP per capita in the north, for example, abolishing minimum fees for professional First, no city does equally well in all areas. is €29,527—almost twice as high as in services and encouraging an increase In fact, each Italian city ranks in the top the south (€17,417).15 The Mezzogiorno in the number of notaries and pharma- third on at least 1 indicator18 and in the has 35% of the population, 33% of ac- cies operating in the country. A detailed bottom third on at least 1 other indica- tive firms and generates 24% of total package of measures was introduced tor. Bologna, for example, ranks first on gross national income (GNI). Meanwhile, to reduce the administrative burden on dealing with construction permits and the center-north is home to 65% of the citizens and businesses—including the registering property but lags behind population, 67% of firms and generates speedier issuance of vital records—across other cities on enforcing contracts. In and 76% of GNI (figure 1.1).16 Italy. The establishment of start-ups that Turin, enforcing contracts is easier than incorporate as “simplified limited liability elsewhere, but starting a business and WHAT DOES DOING BUSINESS registering property are ranked below companies” is being encouraged, includ- IN ITALY 2013 MEASURE? most other cities. Catanzaro is on top of ing a €1 minimum capital requirement Doing Business tracks business regula- the ranking for starting a business, but for people under age 35. One-stop shops tions that affect small and medium-size performs poorly when it comes to dealing for “productive activities” (SUAP)11 across domestic limited liability companies.17 with construction permits. These results the country make it easier for entrepre- Rome represents Italy in the annual Doing can guide policy makers to areas where neurs to interact with their respective Business publication, which compares 185 improvements are possible without major municipalities. For instance, these one- economies worldwide. But entrepreneurs legislative changes. Cities can share ex- stop shops are increasingly enabling the in Italy face different local practices periences and learn from each other. EXECUTIVE SUMMARY 3 TABLE 1.1 Doing Business in Italy 2013—where is it easier? TABLE 1.2 Ease of trading across borders Ease of Transshipment and Ease of dealing with Ease of Ease of Gateway ports regional ports starting a construction registering enforcing City business permits property contracts Rank City Rank City Bari, Apulia 6 9 7 13 1 Genoa, 1 Catania, Liguria Sicily Bologna, Emilia-Romagna 4 1 1 11 2 Trieste, Friuli 2 Taranto, Cagliari, Sardinia 11 2 6 5 Venezia Giulia Apulia Campobasso, Molise 13 8 3 5 3 Naples, 3 Gioia Tauro, Campania Calabria Catanzaro, Calabria 1 10 5 7 4 Cagliari, L’Aquila, Abruzzo 9 3 9 8 Sardinia Milan, Lombardy 8 3 7 10 Source: Doing Business database Naples, Campania 12 11 3 2 Padua, Veneto 2 5 12 12 outperforms the average EU economy Palermo, Sicily 5 12 2 9 on 1—registering property—where it is Potenza, Basilicata 3 13 11 3 considered a good-practice economy Rome, Latium 7 6 13 4 worldwide (figure 1.2). Registering Turin, Piedmont 10 7 9 1 property takes only 3 procedures, 24 Source: Doing Business database days and costs 4.5% of property value. Meanwhile, in the average EU economy, it Second, for dealing with construction insurance—and finance. Second are takes 5 procedures, 28 days and 4.6% of permits, there is a negative and sig- the transshipment and regional ports, property value. nificant correlation with regional GDP.19 which mainly focus on transshipment Wealthier cities tend to have a more activities—whereby containers are The good news is that the regulatory efficient construction permitting process. shipped and reloaded onto a different environment for entrepreneurs in Italy With regards to the other indicators, the vessel at a hub port—and on regional is improving—and the pace of change is correlation between income levels and trade. Regional ports play a key role in picking up. Relative rankings only tell part rankings is not significant.20 supplying area markets and connecting of the story. While the ease of doing busi- local entrepreneurs to national markets. ness compares economies with one an- Third, population size is not significantly For regional ports, the share of imported other, the distance to the frontier measure correlated with rankings across the vari- and exported containers compared to benchmarks economies to the frontier in ous indicators. In some cases, smaller cit- the total number of containers handled regulatory practice, measuring the abso- ies perform better than their larger neigh- is significantly lower than in gateway lute distance to the best performance on bors. For example, it is easiest to start a ports. Among the gateway ports, Genoa each indicator. When compared across business in Catanzaro and more difficult tops the ranking, thanks to the relatively years, the distance to frontier measure in Naples. Such results could be partially fast port and terminal handling time for shows how much the regulatory environ- attributed to smaller application volumes exports. Among the transshipment and ment has changed since 2005 in absolute in Catanzaro, compared to its larger, more regional ports, Catania is more efficient, terms. The results also show that Italy is populous neighbor. On the other hand, mainly thanks to rapid port and terminal closing the gap to the economies with large cities benefit from economies of handling operations for imported goods the most efficient practices on several scale and they may have more resources (table 1.2). indicators. The largest strides took place at their disposal to invest in administra- in starting a business, paying taxes and tive modernization than their smaller enforcing contracts (figure 1.3). ITALY’S PERFORMANCE AND neighbors. IMPROVEMENTS AS MEASURED Since 2005 Italy has implemented a With regards to trading across borders, BY DOING BUSINESS total of 14 institutional or regulatory the 7 ports covered in this analysis fall Italy, represented by Rome, ranks 73 out reforms in all areas measured by Doing into 2 distinct categories. First are the of 185 economies on the ease of doing Business—except dealing with construc- gateway ports, which typically handle business, according to Doing Business tion permits and trading across borders. large cargo volumes and service long in- 2013: Smarter Regulations for Small and Five years ago, the authorities started ternational supply chains. Gateway ports Medium-Size Enterprises—behind many to simplify business start up through a also provide trade-related services—such EU economies, which together average single online filing system—which was as distribution centers, warehouses and a ranking of 40 globally. Out of the 5 improved further in subsequent years, indicators covered in this report, Italy 4 DOING BUSINESS IN ITALY 2013 FIGURE 1.2 Italy’s performance according to Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises NEW HONG KONG NEW UNITED ARAB EASIEST (1) SINGAPORE ZEALAND SAR, CHINA ICELAND GEORGIA MALAYSIA ZEALAND EMIRATES SINGAPORE LUXEMBURG JAPAN EU 31 40 39 36 average 49 47 54 62 74 69 74 55 Italy 62 68 73 72 84 103 107 104 131 MOST DIFFICULT (185) 160 Ease of Starting a Dealing with Getting Registering Getting Protecting Paying Trading Enforcing Resolving doing business business construction electricity property credit investors taxes across borders contracts insolvency permits Note: Italy and other economies are represented by their largest business city and their rankings are based on Doing Business 2013: Smarter Regulations for Small and Medium-Size Enterprises. Source: Doing Business database. reducing requirements, time and cost. with fast and efficient response times. Registering Property Effective 2008, the corporate income tax Compared globally, it would rank 79 out The requirements to initiate the prop- rate was reduced from 33% to 27.5% and of 185 economies on the ease of starting erty transfer are identical throughout the the social security tax rate also dropped. a business as measured by Doing Business. country. These include obtaining an en- Enforcing a contract became faster, after ergy certificate for the building (ACE), as the civil procedure code was streamlined, Dealing with well as using a notary to execute the deed timeframes shortened and hearings construction permits of sale. The registration process itself condensed. It is easier to comply with the formali- varies depending on the city. In Bologna, ties to build a warehouse and connect Palermo, Milan, Naples, Rome and Turin, COMPARING REGULATIONS it to utilities in Bologna and Cagliari and 1 single electronic transmission registers IN 13 CITIES AND 7 PORTS more difficult in Potenza and Palermo. the building simultaneously with the Tax The number of requirements to build Agency (Agenzia delle Entrate) and the Starting a business a warehouse and hook it up to utilities Land Agency (Agenzia del Territorio).  In Since 2010, businesses across Italy must varies. In Cagliari, where the one-stop all other cities, the notary must first register through the single online filing shop for “productive activities” issues complete the online registration with the system known as ComUnica,21 managed the construction permit together with Tax Agency and then visit the property by the chambers of commerce. Thanks the preliminary clearances from the fire registry at the Land Agency to submit to ComUnica, starting a business now department, the health agency and oth- paper copies of the deed of sales (atto requires just 6 procedures in all cities but ers, it takes 11 steps. In Naples, where 3 di vendita) and transfer note (nota di 1.22 In Milan, Padua or Rome, an entrepre- different organizations are involved in trascrizione). neur can complete start-up requirements the water and sewerage connections, it in just 6 days, while in Naples it takes takes 15 steps. It takes about 5 months Thanks to the advanced digitization of 16 days. The time differences are due to to complete the process in Milan, but Italy’s professional services and public how fast the agencies linked by ComUnica more than 10 months in Catanzaro and agencies, registering property is also fast. respond. For example, in Milan, Padua, Palermo. The main delay is obtaining the Through the online platform Notartel, Rome or Bologna, the company registrar building permit (permesso di costruzione) notaries can access the land registry, ca- of the chamber of commerce processes from the municipality. In Catanzaro and dastre and company registrar databases applications in 1 day, while in Naples or Palermo, this step alone requires more online and carry out the necessary due L’Aquila it takes 5 days, on average. The than 6 months. The same process takes diligence in a matter of minutes before cost varies from 12.2% of income per half that time in Naples, Campobasso, they draft, execute and register the deed capita in Bari to 16.8% in Milan. In ad- and Potenza—and only 30 days in Milan. of sale. As a result, in Bologna, Naples, dition to start-up costs, limited liability There are also large variations in costs and Palermo, registering property takes companies must deposit the equivalent across cities. These stem mainly from just 13 days—faster than in Japan. On of 9.7% of income per capita as paid-in local building permit fees (contributo di the other hand, registering property is minimum capital.24 Catanzaro, the top costruzione), which constitute 87% of the expensive. Over 92% of the overall cost ranked city in starting a business within total cost. is composed of fees and duties set at Italy, combines low professional fees the national level—most important of EXECUTIVE SUMMARY 5 which are the registration tax (3% of FIGURE 1.3 Reforms improved various days (as in Bologna, Naples and Palermo) property value) and the cadastral tax (1% regulatory processes since 2005 and the cost to 4.3% of property value of property value). The remaining 8% Distance to frontier (as in Catanzaro) would allow “Italiana” (percentage points) are professional service fees—including to rank 26 globally—near Finland and 100 notary charges and the fees for the energy Starting a business ahead of Austria and the Netherlands. If certificate, ACE. the municipality of “Italiana” improved 80 the efficiency of Cagliari’s one stop shop Enforcing Contracts for “productive activities”, allowed for a Enforcing a contract takes the same num- fast-tracked substitute for the building ber of steps in the 13 courts measured, 60 Paying taxes permit as in Milan and lowered its fees as but there are time and cost variations. in Naples, it would take 11 steps over 151 Enforcing contracts is less difficult in days and cost 45.1% to obtain a construc- Turin, where it takes 855 days and costs 40 Enforcing contracts tion permit. That would imply a jump of 22.3% of the claim value. It is most dif- 30 70 positions in the global rank, moving ficult in Bari, where it takes more than Italy from 103 (as represented by Rome) 0 twice as long (2,022 days) and costs 2005 2006 2007 2008 2009 2010 2011 2012 to 33 (as represented by “Italiana”), same 34.1% of the claim value. While the high as Luxembourg and ahead of Finland and Note: The distance to frontier measure shows how far on number of cases can explain long waits average Italy is from the best performance achieved by any Spain. In contract enforcement, Turin has economy on any Doing Business indicator since 2005. The to some extent, variations among cities measure is normalized to range between 0 and 100, with successfully reduced pending cases and also show that courts can use tools to 100 representing the best performance (the frontier). sped up civil proceedings by establishing speed things up. Effective tools include Source: Doing Business database. clear guidelines on case management case management systems, information and tracking judges’ performance. Other technology and specializing judges by cities should follow suit. However, the LEARNING FROM EACH OTHER subject matter. The national government adoption of Turin’s practices would still As this study shows, local requirements and local courts have launched a number leave “Italiana” lagging behind other or practices drive notable differences in of initiatives to speed up civil proceedings economies in contract enforcement. The procedures, time and cost across cities. in recent years. same is true for the starting a business On all indicators, there are good practices indicator. Looking beyond Italy’s borders Trading across Borders to be found in Italian cities and regions. to regional and even global good practices Among the gateway ports, Genoa is the Reform-minded local governments can is another tool to identify more efficient top performer. Through its port, a con- use Doing Business indicators to motivate practices. That could allow Italian au- tainer can be exported in 18 days at a cost and sustain reform efforts. There is no thorities to formulate policies aimed at of $940. Importing a container through need to reinvent the wheel: it is sufficient making additional improvements in these the port of Genoa takes 17 days and costs to start by introducing improvements al- indicators for cities across Italy. $935. Among the transshipment and re- ready successfully implemented in other gional ports, Catania is the most efficient: cities (table 1.3). Peer-to-peer learning Benchmarking exercises like Doing it takes 19 days and $1,020 to export a events can facilitate knowledge shar- Business motivate governments to container while importing a container ing and provide opportunities for local improve business regulation. They takes 16 days and costs $1,040. On aver- authorities to bring their concerns to the uncover bottlenecks and identify where age, Italian entrepreneurs need to submit attention of the national government and policymakers can look for good practices. 4 documents, spend 19 days and pay to push the reform agenda for the country Comparisons between cities in the same $1,006 to export a standardized container as a whole. country can be even stronger drivers of of cargo. To import, Italian entrepreneurs reform because it is more difficult for A hypothetical city (“Italiana”) adopting need, on average, to submit 4 documents, local governments to justify why doing existing good practices on starting a busi- wait 17 days and spend $1,131. Italy fares business in their city or region is more ness, dealing with construction permits, well compared to the EU average on the burdensome than in neighboring cities. registering property, and enforcing con- number of documents required to trade Sharing a national legal framework fa- tracts, would rank 56 on the global Doing but it performs worse on costs and time. cilitates the implementation of good local Business ranking. That is 17 positions On average, in the EU it takes 5 docu- practices. National governments can also ahead of Italy’s current ranking accord- ments, 11 days and $1,072 to import and 4 use Doing Business data to monitor how ing to Doing Business 2013. In registering documents, 11 days and $1,004 to export. efficiently local branches of agencies property, reducing the requirements to 3 implement national regulation. procedures (as in Bologna, Milan, Naples, Palermo, Rome and Turin), the time to 13 6 DOING BUSINESS IN ITALY 2013 TABLE 1.3 Good practices in Italian cities compared internationally from a reform champion—whether the Italian best Italy’s performance president, minister or mayor—is central Doing practices compared in Doing Business to success. Moreover, consistent reform- Business internationally 2013* indicator Best practices within Italy (global rank) (global rank) ers are inclusive—involving all relevant Starting a Number of procedures 6 procedures (Bari, stakeholders, including the private sector, business to start a business Bologna, Cagliari, and institutionalizing the reform effort. Catanzaro, L’Aquila, Milan, Naples, Padua, Palermo, Potenza, Payoffs from business reforms can be Rome, Turin) large. Saving time and money are often the Days to start a 6 days (Milan, Padua, 78 84 immediate benefits for firms. In Mexico, business Rome) local one-stop shops cut the time to start Cost to start a 12.2% of income per business capita (Bari) a business from 58 to 13 days, on average. Minimum capital 9.7% of income per A recent study reports the payoffs: the requirement capita (all cities) number of new firm registrations rose by Dealing with Number of procedures 11 procedures 5%, employment increased by 2.2%, and construction to comply with (Cagliari, Rome) permits formalities to build a prices fell by nearly 1% because of the warehouse competition from new entrants.26 In India, Days to comply with 151 days (Milan) the progressive elimination of the License 33 103 formalities to build a warehouse Raj—a system of central controls on entry Cost to comply with 45.1% of income per and production—led to a 6% increase in formalities to build a capita (Naples) new firm registrations. In addition, highly warehouse productive firms entering the market in Registering Number of procedures 3 procedures property to register property (Bologna, Milan, India experienced larger increases in real Naples, Palermo, output than less productive ones.27 Rome, Turin) 26 39 Days to register 13 days (Bologna, Maintaining the momentum for reform property Naples, Palermo) will be important to help Italy address Cost to register 4.3% of property property value (Catanzaro) its stagnant productivity and entrenched Enforcing Number of procedures 41 procedures (all structural weaknesses. Removing need- contracts to enforce a contract cities) lessly bureaucratic regulations and red Days to enforce a 855 days (Turin) 123 160 tape reduces the cost for Italian firms contract to do business and thus enhances their Cost to enforce a 20.5% of claim value competitiveness abroad. Improvements contract (Potenza) in the regulatory framework—as captured Ease of doing business (Hypothetical city of “Italiana”) 56 73 *Represented by Rome. by the Doing Business indicators—can be Source: Doing Business database a powerful tool to enhance efficiency, boost productivity and help establish a more solid foundation to restore eco- Consistent reformers have a long-term the United Kingdom, a program running nomic growth. The economies that have agenda and continuously push forward. from 2005 to 2010 reduced the burden managed to increase their footprint in the They stay focused by setting specific of regulatory compliance by a quarter, global marketplace are also countries that goals and regularly monitor progress. The saving firms £3.5 billion ($5.53 billion).24 have made sustained efforts to create top-ranked economy globally on the ease New initiatives are under way.25 an environment that is more conducive of doing business, Singapore, introduces for private sector development. More ef- business reforms every year. Other poli- Cumulative business reforms across a ficient and transparent rules have been an cymakers—such as the Dutch Advisory range of topics produce the best results. integral part of these efforts. Board on Administrative Burden and the Cooperation across different govern- UK Better Regulation Executive—rou- ment agencies, at both local and national tinely assess existing regulation and levels, is necessary for wide-ranging manage the flow of new regulation. In reforms. Political will and vision coming EXECUTIVE SUMMARY 7 12. To be completed by July 2014. government introduced a new type of NOTES 13. The new tax framework is called limited liability company with a symbolic 1. In 1861 nearly two-thirds of the minimum capital requirement of €1, the “Aid for Economic Growth” (ACE). total labor force worked in agriculture, società responsabilità limitata semplificata while the remaining workers were 14. Cities of the center-north: Rome, (SRLS). The implementing regulations equally distributed between industry Bologna, Milan, Padua and Turin. concerning the SRLS were not issued and services. Although until World Cities in the south: Bari, Cagliari, as of June 2012. In the meantime, the War I the exodus from agriculture was Catanzaro, Campobasso, L’Aquila, authorities were discussing the possibil- limited, the 1930s and World War II Naples, Palermo and Potenza. ity of creating yet another legal form. years witnessed a significant shift of the 15. Social Cohesion Database, http://dati 24. For more information, please visit: labor force towards the non-farm sectors, .coesione-sociale.it/?lang=en http://www.bis.gov.uk. and by 1951 agriculture’s share stood at 16. “Atlante delle Competitività,” 43 percent. Finally, by 1973 the services 25. Other initiatives include: 1) Scrutinizing Unioncamere Nazionale and Istituto sector had become dominant (at 46 the entire stock of inherited regulations. Guglielmo Tagliacarne. 2010. percent), and it has continued to increase The UK has more than 21,000 regula- 17. In addition to limited liability companies, tions and statutory instruments on the in importance since then. Broadberry, there are several other forms of incorpo- Steven, Claire Giordano and Francesco books, spanning virtually the entire ration in Italy. Sole proprietors are also an spectrum of economic activity and Zollino, 12–15 October 2011. “A Sectoral important part of the business landscape. Analysis of Italy’s Development, 1861- imposing a huge cost on business. 2) The 18. Except Bari. “one in, one out” system which requires 2011.” Economic History Working Papers (Quaderni di Storia Economica) 20, Bank of 19. Given the limited number of observa- government departments to assess the Italy, Rome. tions, cross-section size correlations net cost to business of complying with are computed using Spearman and any new regulation that is proposed (an 2. “IMF (International Monetary Fund). Kendall nonparametric rank correlation “in”). These calculations are validated Italy: Selected Issues. IMF Country Report coefficients. Kendall and Spearman by the independent Regulatory Policy No. 12/167. July 2012. non-parametric correlation coefficients Committee. If a new regulation means a 3. OECD (Organisation for Economic cost to business, a deregulatory measure between the time, procedures, rank Co-operation and Development). OECD to deal with construction permits and (an “out”) must be found that reduces Economic Surveys: Italy. May 2011. Paris: regional income per capita is negative the net cost by at least the same amount. OECD. and significant at the 5% level. 3) Review and sunset clauses for new 4. IMF. World Economic Outlook. October regulations. This means that policy 20. There are no significant correlations for 2012. sub-indicators or rankings for register- makers must review the relevance of 5. World Economic Forum. The Europe 2020 ing property, enforcing contracts and new regulations after a maximum of 7 Competitiveness Report: Building a More starting a business, except for time to years and justify their continuation rather Competitive Europe. 2012. Geneva: World start a business. For starting a busi- than simply leaving them on the statute Economic Forum. ness, there is a positive and significant books. Source: World Bank. 2011. Doing 6. “National Reform Programme.” Section correlation between the time to start a Business 2012: Doing Business in a More III, 2012 Economic and Financial Document. business and income levels. Lower times Transparent World. Washington, DC: 18 April 2012. Available at http:// to start a business are associated with The World Bank Group. ec.europa.eu/europe2020/pdf/nd/ higher income per capita. The analysis is 26. Bruhn, Miriam. 2008. “License to Sell: nrp2012_italy_it.pdf. complete using Kendall and Spearman The Effect of Business Registration 7. Decreto Legge No. 201 of 4 December non-parametric correlation coefficients. Reform on Entrepreneurial Activity in 2011, converted into Law No. 214/2012. 21. Short for Comunicazione Unica. Mexico.” Policy Research Working Paper 4538. Washington, D.C.: World Bank. 8. Decreto Legge No. 1 of 24 January 2012 22. Campobasso is the only city where and converted into Law No.27/2012. the entrepreneur must still personally 27. Aghion, Philippe, Robin Burgess, Stephen submit a paper copy of the Segnalazione J. Redding and Fabrizio Zilibotti. 2008. 9. Decreto Legge No. 5 of 9 February 2012, Certificata di Inizio Attività to the “The Unequal Effects of Liberalization: converted into Law No. 35/2012 municipal one-stop shop for “productive Evidence from Dismantling the License 10. The “Cohesion Action Plan” was Raj in India.” American Economic Review activities” (SUAP). developed jointly with the European 98 (4): 1397–412. Commission following the Area meeting 23. Doing Business considers the most com- on October 26, 2011. mon type of limited liability company, which is the società a responsabilità 11. Sportello Unico della Attivita Produttiva, limitata (SRL). In January 2012, the SUAP. 8 About Doing Business and Doing Business in Italy 2013 The private sector provides an estimated of their life cycle. The results for each 90% of jobs in developing economies.1 economy can be compared with those for Where government policies support a 184 other economies and over time. dynamic business environment—with firms making investments, creating jobs Over the years the choice of indicators for and increasing productivity—all people Doing Business has been guided by a rich have greater opportunities. A growing pool of data collected through the World body of evidence suggests that policy Bank Enterprise Surveys. These data makers seeking to strengthen the private highlight the main obstacles to business sector need to pay attention not only to activity as reported by entrepreneurs in macroeconomic factors but also to the well over 100 economies. Among the quality of laws, regulations and insti- factors that the surveys have identified as tutional arrangements that shape daily important to businesses have been taxes economic life.2 (tax administration as well as tax rates) and electricity—inspiring the design of This year the tenth global Doing Business the paying taxes and getting electricity report was published. When the first indicators. In addition, the design of the report was produced, in 2003, there Doing Business indicators has drawn were few globally available and regularly on theoretical insights gleaned from updated indicators for monitoring such extensive research literature.3 The Doing microeconomic issues as business Business methodology makes it possible regulations affecting local firms. Earlier to update the indicators in a relatively efforts from the 1980s drew on percep- inexpensive and replicable way. tions data, but these expert or business surveys focused on broad aspects of the The Doing Business methodology is also business environment and often captured responsive to the needs of policy makers. the experiences of businesses. These sur- Rules and regulations are under the direct veys also lacked the specificity and cross- control of policy makers—and policy country comparability that Doing Business makers intending to change the experi- provides—by focusing on well-defined ence and behavior of businesses will transactions, laws and institutions rather often start by changing rules and regula- than generic, perceptions-based ques- tions that affect them. Doing Business tions on the business environment. goes beyond identifying that a problem exists and points to specific regulations Doing Business seeks to measure business or regulatory procedures that may lend regulations for domestic firms through an themselves to regulatory reform. And objective lens. The project looks primar- its quantitative measures of business ily at small and medium-size companies regulation enable research on how spe- in the largest business city. Based on cific regulations affect firm behavior and standardized case studies, it presents economic outcomes. quantitative indicators on the regulations that apply to firms at different stages The first Doing Business report covered 5 topics and 133 economies. Doing ABOUT DOING BUSINESS 9 Business in 2013 covers 11 topics and 185 sample size of experts in order to improve FIGURE 2.1 What are SMART business economies. Ten topics are included in the accuracy. The local expert respondents regulations as defined by Doing Business? aggregate ranking on the ease of doing play a vital role in corroborating the Doing business, and 9 in the distance to frontier Business team’s understanding and inter- STREAMLINED—regulations measure.4 The project has benefited from pretation of rules and laws. that accomplish the desired feedback from governments, academics, outcome in the most efficient way practitioners and reviewers.5 The initial Data of the second type serve as inputs S goal remains: to provide an objective into indicators on the complexity and MEANINGFUL—regulations basis for understanding and improving cost of regulatory processes. These indi- that have a measurable positive the regulatory environment for business. cators measure the efficiency in achiev- impact in facilitating ing a regulatory goal, such as the number M interactions in the marketplace of procedures to obtain a building permit WHAT DOING BUSINESS IN or the time taken to grant legal identity ADAPTABLE—regulations ITALY 2013 COVERS to a business. In this group of indicators that adapt to changes in the The foundation of Doing Business is the environment notion that economic activity, particu- cost estimates are recorded from official fee schedules where applicable. Time A larly private sector development, benefits estimates often involve an element of RELEVANT—regulations that are from clear and coherent rules: Rules that judgment by respondents who routinely proportionate to the problem they set out and clarify property rights and are designed to solve administer the relevant regulations or facilitate the resolution of disputes. And undertake the relevant transactions. R rules that enhance the predictability of These experts have several rounds of economic interactions and provide con- TRANSPARENT—regulations interaction with the Doing Business team, that are clear and accessible to tractual partners with essential protec- anyone who needs to use them involving conference calls, written cor- tions against arbitrariness and abuse. respondence and visits by the team until T Where such rules are reasonably efficient there is convergence on the final answer. in design, are transparent and accessible To construct the time indicators, a regula- Note: Developed by Doing Business, this definition of SMART to those for whom they are intended tory process such as starting a business business regulations guides its measurement of regulations. and can be implemented at a reason- is broken down into clearly defined steps able cost, they are much more effective in shaping the incentives of economic and procedures (for more details, see WHAT DOING BUSINESS IN agents in ways that promote growth and the discussion on methodology in this ITALY 2013 DOES NOT COVER chapter). Here Doing Business builds on development. The quality of the rules also The Doing Business data have key limita- Hernando de Soto’s pioneering work in has a crucial bearing on how societies tions that should be kept in mind by those applying the time-and-motion approach distribute the benefits and bear the costs who use them. in the 1980s to show the obstacles to set- of development strategies and policies. ting up a garment factory on the outskirts Limited in scope Doing Business is about smart business of Lima.6 The Doing Business indicators are limited regulations, not necessarily fewer regula- tions (figure 2.1). in scope. In particular: Doing Business in Italy 2013 is a subna- tional Doing Business report (box 2.1) Ė Doing Business in Italy 2013 does not In constructing the indicators the Doing and as such captures several important measure all 11 indicators covered in the Business project uses 2 types of data. dimensions of the regulatory environ- global Doing Business report. The report The first come from readings of laws and ment as they apply to local firms in 13 covers only those 5 areas of business regulations in each economy. The Doing cities and 7 ports in Italy. It provides regulation that are either the prov- Business team, in collaboration with local quantitative measures of regulations for enance of the local governments or expert respondents, reads the civil law to 5 indicators: starting a business, dealing where local differences exist—starting find the number of procedures necessary with construction permits, registering a business, dealing with construction to resolve a commercial sale dispute property, trading across borders, and permits, registering property, trading before local courts. And it plumbs other enforcing contracts (table 2.1.). across borders and enforcing contracts legal instruments for other key pieces of data used in the indicators, several (table 2.1). of which have a large legal dimension. Ė Doing Business in Italy 2013 does notmea- Indeed, about three-quarters of the data sure the full range of factors, policies and used in Doing Business are of this factual institutions that affect the quality of the type, reducing the need to have a larger business environment in an economy or 10 DOING BUSINESS IN ITALY 2013 Limited to standardized BOX 2.1 COMPARING REGULATIONS AT THE LOCAL LEVEL: SUBNATIONAL DOING case scenarios BUSINESS REPORTS Subnational Doing Business reports expand the indicators beyond the largest busi- A key consideration for the Doing Business ness city in an economy. They capture local differences in regulations or in the imple- indicators is that they should ensure mentation of national regulations across cities within an economy (as in Colombia) comparability of the data across a global or region (as in South East Europe). Projects are undertaken at the request of central set of economies. The indicators are governments, which often contribute financing, as in Mexico. In some cases local gov- therefore developed around standardized ernments also provide funding, as in the Russian Federation. case scenarios with specific assumptions. Subnational indicators provide governments with standard measures, based on laws Doing Business recognizes the limitations and regulations, that allow objective comparisons both domestically and internation- ally. As a diagnostic tool, they identify bottlenecks as well as highlight good practices of the standardized case scenarios and that are easily replicable in other cities sharing a similar legal framework. assumptions. But while such assump- Governments take ownership of a subnational project by participating in all steps of tions come at the expense of generality, its design and implementation—choosing the cities to be benchmarked, the indicators they also help ensure the comparability that can capture local differences and the frequency of benchmarking. All levels of of data. For this reason it is common to government are involved—national, regional and municipal. see limiting assumptions of this kind in Subnational projects create a space for discussing regulatory reform and provide economic indicators. Inflation statistics, opportunities for governments and agencies to learn from one another, through the report and through peer-to-peer learning workshops. Even after the report is launched, for example, are often based on prices of knowledge sharing continues. In Mexico 28 of 32 states hold regular exchanges. a set of consumer goods in a few urban Repeated benchmarking creates healthy competition between cities to improve areas, since collecting nationally repre- their regulatory environment. The dissemination of the results reinforces this process sentative price data at high frequencies and gives cities an opportunity to tell their stories. Fifteen economies have requested may be prohibitively costly in many 2 or more rounds of benchmarking since 2005 (including Colombia, Indonesia and countries. Nigeria), and many have expanded the geographic coverage to more cities (including Russia). In Mexico each successive round has captured an increase in the number of states improving their regulatory environment in each of the 4 indicator sets includ- Some Doing Business topics include com- ed—reaching 100% of states in 2011. plex and highly differentiated areas. Here Since 2005 subnational reports have covered 335 cities in 54 economies, includ- the standardized cases and assumptions ing Brazil, China, the Arab Republic of Egypt, India, Kenya, Morocco, Pakistan and the are carefully considered and defined. For Philippines.1 example, the standardized case scenario This year studies were updated in Indonesia, Kenya, Mexico, Russia and the United usually involves a limited liability company Arab Emirates. Studies are ongoing in 23 cities and 4 ports in Colombia and 15 cities or its legal equivalent. The considerations and 3 ports in Egypt. In addition, 3 regional reports were published: in defining this assumption are twofold. Ė Doing Business in OHADA, comparing business regulations in the 16 member states First, private limited liability companies of the Organization for the Harmonization of Business Law in Africa (Benin, Burkina Faso, Cameroon, the Central African Republic, Chad, the Comoros, the Republic of are, empirically, the most prevalent busi- Congo, Côte d’Ivoire, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Mali, Niger, ness form in many economies around Senegal and Togo). the world. Second, this choice reflects Ė Doing Business in the East African Community, covering 5 economies (Burundi, Kenya, the focus of Doing Business on expanding Rwanda, Tanzania and Uganda). opportunities for entrepreneurship: inves- Ė Doing Business in the Arab World, covering 20 economies (Algeria, Bahrain, the tors are encouraged to venture into busi- Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Mauritania, Morocco, ness when potential losses are limited to Oman, Qatar, Saudi Arabia, Sudan, the Syrian Arab Republic, Tunisia, the United Arab Emirates, West Bank and Gaza, and the Republic of Yemen). their capital participation. 1. Subnational reports are available on the Doing Business website at http://www.doingbusiness.org/ The Doing Business indicators assume subnational. that entrepreneurs have knowledge of and comply with applicable regulations. its national competitiveness. It does not, Even within the relatively small set of In practice, entrepreneurs may not know for example, capture aspects of security, indicators included in Doing Business, the what needs to be done or how to comply the prevalence of bribery and corruption, focus is deliberately narrow. For example, and may lose considerable time in trying market size, macroeconomic stabil- the indicator on starting a business does to find out. Or they may deliberately avoid ity (including whether the government not cover all aspects of commercial compliance altogether—by not register- manages its public finances in a sus- legislation. ing for social security, for example. Where tainable way), the state of the financial regulation is particularly onerous, levels of system or the level of training and skills informality tend to be higher (figure 2.2). of the labor force. ABOUT DOING BUSINESS 11 TABLE 2.1 Doing Business in Italy 2013—benchmarking 5 areas of business regulation Do the focus areas of Doing Business mat- Indicator What it covers ter for development and poverty reduc- Starting a business Procedures, time, cost and minimum capital requirement tion? The World Bank study Voices of the Dealing with construction permits Procedures, time and cost Poor asked 60,000 poor people around Registering property Procedures, time and cost the world how they thought they might Enforcing contracts Procedures, time and cost to resolve a commercial dispute escape poverty.10 The answers were un- Trading across borders Documents, time and cost equivocal: women and men alike pin their hopes, above all, on income from their own business or wages earned in employ- Informality comes at a cost. Compared WHY THIS FOCUS? ment. Enabling growth—and ensuring with their formal sector counterparts, Why does Doing Business focus on the that all people, regardless of income level, firms in the informal sector typically grow regulatory environment for small and me- can participate in its benefits—requires more slowly, have poorer access to credit dium-size enterprises? These enterprises an environment where new entrants with and employ fewer workers—and these are key drivers of competition, growth and drive and good ideas can get started in workers remain outside the protections of job creation, particularly in developing business and where good firms can invest labor law.7 All this may be even more so economies. But in these economies up to and grow, thereby generating more jobs. for female-owned businesses, according 65% of economic activity takes place in In this sense Doing Business values good to country-specific research.8 Firms in the the informal sector, often because of ex- rules as a key to social inclusion. informal sector are also less likely to pay cessive bureaucracy and regulation—and taxes. in the informal sector firms lack access In effect, Doing Business functions as a to the opportunities and protections that barometer of the regulatory environment Doing Business measures one set of factors for domestic businesses. To use a medi- the law provides. Even firms operating in that help explain the occurrence of infor- cal analogy, Doing Business is similar to a the formal sector might not have equal mality and give policy makers insights cholesterol test. A cholesterol test does access to these opportunities and protec- into potential areas of reform. Gaining not tell us everything about our health. tions. Where regulation is burdensome a fuller understanding of the broader But our cholesterol level is easier to and competition limited, success tends to business environment, and a broader measure than our overall health, and the depend on whom one knows. But where perspective on policy challenges, requires test provides us with important informa- regulation is transparent, efficient and combining insights from Doing Business tion, warning us when we need to adjust implemented in a simple way, it becomes with data from other sources, such as the our behavior. Similarly, Doing Business easier for aspiring entrepreneurs to com- World Bank Enterprise Surveys.9 does not tell us everything we need to pete, innovate and grow. know about the regulatory environment for domestic businesses. But its indica- tors cover aspects that are more easily FIGURE 2.2 Higher levels of informality are associated with lower Doing Business rankings measured than the entire regulatory envi- ronment, and they provide important in- Informal sector as % of GDP, 2007 formation about where change is needed. 70 What type of change or regulatory reform is right, however, can vary substantially 60 across economies. 50 To test whether Doing Business serves 40 as a proxy for the broader business environment and for competitiveness, 30 one approach is to look at correlations 20 between the Doing Business rankings and other major economic benchmarks. The 10 indicator set closest to Doing Business in 0 what it measures is the set of indicators 0 20 40 60 80 100 120 140 160 180 on product market regulation compiled DB2013 ranking on the ease of doing business by the Organisation for Economic Co- Note: The correlation between the 2 variables is 0.57. Relationships are significant at the 5% level after controlling for income operation and Development (OECD). per capita. The data sample includes 143 economies. Source: Doing Business database; Schneider, Buehn and Montenegro 2010. These are designed to help assess the 12 DOING BUSINESS IN ITALY 2013 extent to which the regulatory environ- property, trading across borders, and while many poor economies in the world ment promotes or inhibits competition. enforcing contracts. The trading across still work with regulatory systems dating They include measures of the extent of borders indicator measures 7 ports—dif- to the late 1800s. price controls, the licensing and permit ferent from the 13 cities measured—but it system, the degree of simplification of provides 2 separate ranks: one for trans- WHAT 10 YEARS rules and procedures, the administrative shipment and regional ports and another OF DATA SHOW burdens and legal and regulatory bar- for gateway ports. Judgment is required A growing body of empirical research riers, the prevalence of discriminatory in interpreting these measures for any shows that particular areas of business procedures and the degree of government economy and in determining a sensible regulation, and particular regulatory re- control over business enterprises.11 These and politically feasible path for regulatory forms in those areas, are associated with indicators—for the 39 countries that are reform. vital social and economic outcomes— covered, several of them large emerging including firm creation, employment, markets—are highly correlated with the Reviewing the Doing Business rankings in formality, international trade, access Doing Business rankings (the correlation isolation may reveal unexpected results. to financial services and the survival of here is 0.53) (figure 2.3). Some cities may rank unexpectedly high struggling but viable firms.14 This research on some topics. And some cities that has been made possible by a decade of There is a high correlation (0.83) be- have had rapid growth or attracted a great Doing Business data combined with other tween the Doing Business rankings and the deal of investment may rank lower than data sets. Some 1,245 research articles rankings on the World Economic Forum’s others that appear to be less dynamic. published in peer-reviewed academic Global Competitiveness Index, a much For reform-minded local governments, journals, and about 4,071 working papers broader measure capturing such factors how much the regulatory environment available through Google Scholar, refer to as macroeconomic stability, aspects of for local entrepreneurs improves in an ab- the Doing Business data.15 human capital, the soundness of public institutions and the sophistication of solute sense matters far more than their Determining the empirical impact of the business community (figure 2.4).12 relative ranking. As cities develop, they regulatory reforms is not easy. One pos- Self-reported experiences with business may add to or improve on regulations that sible approach is cross-country correla- regulations, such as those captured by the protect investor and property rights. Many tion analysis. But with this method it is Global Competitiveness Index, often vary also tend to streamline existing regula- difficult to isolate the effect of a particular much more within economies (across tions and prune outdated ones. One find- regulatory reform because of all the other respondents in the same economy) than ing of Doing Business is that dynamic and factors that may vary across economies across economies.13 A high correlation growing economies continually reform and that may not have been taken into such as this one can therefore coexist with and update their business regulations and account in the analysis. How then do significant differences within economies. the implementation of those regulations, researchers determine whether social or DOING BUSINESS IN ITALY 2013 AS A BENCHMARKING FIGURE 2.3 A strong correlation between Doing Business rankings and OECD rankings on product market regulation EXERCISE By capturing key dimensions of regula- 2008 ranking on OECD product market regulation indicators tory regimes, Doing Business in Italy 2013 provides a rich opportunity for bench- 40 marking. Such a benchmarking exercise is necessarily incomplete, just as the 30 Doing Business data are limited in scope. It is useful when it aids judgment, but not 20 when it supplants judgment. Doing Business in Italy 2013 provides 10 2 perspectives on the data it collects: it presents “absolute” indicators and 0 rankings by topic for each of the 13 cit- 0 20 40 60 80 100 120 140 160 180 ies measured for 5 regulatory topics it DB2013 ranking on the ease of doing business addresses—starting a business, dealing Note: Relationships are significant at the 5% level after controlling for income per capita. with construction permits, registering Source: Doing Business database; OECD data. ABOUT DOING BUSINESS 13 FIGURE 2.4 A similarly strong correlation between Doing Business rankings and World Economic the establishment of new formal sector Forum rankings on global competitiveness firms: 2012/13 ranking on Global Competitiveness Index Ė In Colombia the introduction of one- stop shops for business registration in 140 different cities across the country was 120 followed by a 5.2% increase in new 100 firm registrations.24 80 Ė In Mexico a study analyzing the effects of a program simplifying municipal 60 licensing found that it led to a 5% 40 increase in the number of registered 20 businesses and a 2.2% increase in 0 employment. Moreover, competition 0 20 40 60 80 100 120 140 160 180 from new entrants lowered prices by DB2013 ranking on the ease of doing business 0.6% and the income of incumbent businesses by 3.2%.25 A second study Note: Relationships are significant at the 5% level after controlling for income per capita. Source: Doing Business database; WEF 2012. found that the program was more effective in municipalities with less corruption and cheaper additional economic outcomes would have been business registration also tend to have a registration procedures.26 Yet another different without a specific regulatory re- higher entry rate by new firms and greater found that simpler licensing may result form? A growing number of studies have business density.18 Faster business reg- in both more wage workers and more been able to investigate such questions istration is associated with more busi- formal enterprises, depending on the by analyzing regulatory changes within a nesses registering in industries with the personal characteristics of informal country over time or by using panel esti- strongest potential for growth, such as business owners: those with charac- mations. Others have focused on regula- those experiencing expansionary global teristics similar to wage workers were tory reforms relevant only for particular demand or technology shifts.19 And more likely to become wage workers, firms or industries within a country. The easier start-up is associated with more while those with characteristics similar broader literature, using a range of differ- investment in industries often sheltered to entrepreneurs in the formal sector ent empirical strategies, has produced a from competition, including transport, were more likely to become formal number of interesting findings, including utilities and communications.20 Empirical business owners.27 those described below. evidence also suggests that more effi- Ė In India a study found that the pro- cient business entry regulations improve Smarter business regulation promotes gressive elimination of the “license firm productivity and macroeconomic economic growth. Economies with better raj”—the system regulating entry and performance.21 business regulation grow faster. One production in industry—led to a 6% study found that for economies in the Lower costs for business registration improve increase in new firm registrations.28 best quartile of business regulation as formal employment opportunities. Because Another study found that simpler entry measured by Doing Business, the differ- new firms are often set up by high-skilled regulation and labor market flexibility ence in business regulation with those workers, lowering entry costs often leads were complementary: in Indian states in the worst quartile is associated with to higher take-up rates for education, with more flexible employment regula- a 2.3 percentage point increase in an- more jobs for high-skilled workers and tions informal firms decreased by 25% nual growth rates.16 Another found that higher average productivity.22 And by more, and real output grew by 18% regulatory reforms making it easier to do increasing formal registration, it can also more, than in states with less flexible business in relatively low-income econo- boost legal certainty—because the newly regulations.29 A third study found that mies are associated with an increase in formal firms are now covered by the legal the licensing reform resulted in an ag- growth rates of 0.4 percentage point in system, benefiting themselves as well as gregate productivity increase of 22% the following year.17 their customers and suppliers.23 among the firms affected.30 Ė In Portugal the introduction of a one- Simpler business registration promotes Country-specific studies confirm that stop shop for businesses led to a 17% greater entrepreneurship and firm pro- simplifying entry regulations can promote increase in new firm registrations. The ductivity. Economies that have efficient reform favored mostly small-scale 14 DOING BUSINESS IN ITALY 2013 entrepreneurs with low levels of educa- Sound financial market infrastructure— Ė Improving investor protections, tion operating in low-tech sectors such including courts, creditor and insolvency developing financial markets and as agriculture, construction and retail.31 laws, and credit and collateral registries— promoting more active markets for cor- improves access to credit. Businesses porate control reduce the persistence An effective regulatory environment im- worldwide identify access to credit as one of family-controlled firms over time, proves trade performance. Strengthening of the main obstacles they face.41 Good expanding opportunity for firms with the institutional environment for credit information systems and strong more diversified capital structures.47 trade—such as by increasing customs collateral laws help overcome this ob- efficiency—can boost trade volumes.32 stacle. An analysis of reforms improving HOW GOVERNMENTS In Sub-Saharan Africa an inefficient trade collateral law in 12 transition economies USE DOING BUSINESS environment was found to be among the concludes that they had a positive effect Doing Business offers policy makers a main factors in poor trade performance.33 on the volume of bank lending.42 Greater benchmarking tool useful in stimulating One study found that a 1-day reduction in information sharing through credit policy debate, both by exposing poten- inland travel times leads to a 7% increase bureaus is associated with higher bank tial challenges and by identifying good in exports.34 Another found that among profitability and lower bank risk. And practices and lessons learned. The initial the factors that improve trade perfor- stronger creditor rights and the existence debate on the results highlighted by the mance are access to finance, the quality of public or private credit registries are data typically turns into a deeper discus- of infrastructure and the government’s associated with a higher ratio of private sion on the relevance of the data to the ability to formulate and implement sound credit to GDP.43 economy and on areas where business policies and regulations that promote regulation reform is needed, including private sector development.35 The same Country-specific studies confirm that areas well beyond those measured by study showed that the more constrained efficient debt recovery and exit processes Doing Business. economies are in their access to foreign are key in determining credit conditions markets, the more they can benefit from and in ensuring that less productive firms Reform-minded governments seeking improvements in the investment climate. are either restructured or exit the market: success stories in business regulation Yet another study found that improve- refer to Doing Business for examples (box ments in transport efficiency and the Ė In India the establishment of special- 2.2). Saudi Arabia, for example, used business environment have a greater ized debt recovery tribunals had a the company law of France as a model marginal effect on exports in lower- range of positive effects, including for revising its own law. Many African income economies than in high-income speeding up the resolution of debt re- governments look to Mauritius—the ones.36 One study even suggests that covery claims, allowing lenders to seize region’s strongest performer on Doing behind-the-border measures to improve more collateral on defaulting loans, Business indicators—as a source of good logistics performance and facilitate trade increasing the probability of repayment practices to inspire regulatory reforms in may have a larger effect on trade, espe- by 28% and reducing interest rates on their own countries. Governments shared cially on exports, than tariff reduction loans by 1–2 percentage points.44 knowledge of business regulations before would.37 Ė Brazil’s extensive bankruptcy reform the Doing Business project began. But in 2005 was associated with a 22% Doing Business made it easier by creating Other areas of regulation matter for trade reduction in the cost of debt and a a common language comparing business performance. Economies with good con- 39% increase in the aggregate level of regulations around the world. tract enforcement tend to produce and credit.45 export more customized products than Ė Introducing streamlined mechanisms Over the past 10 years governments those with poor contract enforcement.33 for reorganization has been shown worldwide have been actively improving Since production of high-quality output to reduce the number of liquidations the regulatory environment for domestic is a precondition for firms to become because it encourages more viable companies. Most reforms relating to exporters, reforms that lower the cost of firms to opt for reorganization. Indeed, Doing Business topics have been nested high-quality production increase the posi- it reduced the number of liquidations in broader reform programs aimed at tive effect of trade reforms.39 Moreover, by 14% in Colombia and by 8.4% in enhancing economic competitiveness, as reforms removing barriers to trade need Belgium.46 One important feature of in Colombia, Kenya and Liberia. In struc- to be accompanied by other reforms, Colombia’s new system is that it bet- turing reform programs for the business such as those making labor markets more ter distinguishes between viable and environment, governments use multiple flexible, to increase productivity and nonviable firms, making it more likely data sources and indicators. This recog- growth.40 that financially distressed but funda- nizes the reality that the Doing Business mentally viable firms will survive. data on their own provide an incomplete ABOUT DOING BUSINESS 15 roadmap for successful business regula- tion reforms.48 It also reflects the need to BOX 2.2 HOW ECONOMIES HAVE USED DOING BUSINESS IN REGULATORY REFORM PROGRAMS respond to many stakeholders and inter- To ensure the coordination of efforts across agencies, such economies as Brunei est groups, all of whom bring important Darussalam, Colombia and Rwanda have formed regulatory reform committees, re- issues and concerns to the reform debate. porting directly to the president. These committees use the Doing Business indicators as one input to inform their programs for improving the business environment. More than When the World Bank Group engages 35 other economies have formed such committees at the interministerial level. In East with governments on the subject of and South Asia they include India; Korea; Malaysia; the Philippines; Taiwan, China; and improving the investment climate, the Vietnam. In the Middle East and North Africa: Morocco, Saudi Arabia and the United dialogue aims to encourage the criti- Arab Emirates. In Eastern Europe and Central Asia: Georgia, Kazakhstan, Kosovo, the Kyrgyz Republic, the former Yugoslav Republic of Macedonia, Moldova, Montenegro cal use of the Doing Business data—to and Tajikistan. In Sub-Saharan Africa: Botswana, Burundi, the Central African Republic, sharpen judgment and promote the Comoros, the Democratic Republic of Congo, the Republic of Congo, Côte d’Ivoire, broad-based reforms that enhance the Kenya, Liberia, Malawi, Mali, Nigeria, Sierra Leone, Togo and Zambia. And in Latin investment climate rather than a narrow America: Chile, the Dominican Republic, Guatemala, Mexico, Panama and Peru. Since focus on improving the Doing Business 2003 governments have reported more than 350 regulatory reforms that have been informed by Doing Business.1 rankings. The World Bank Group uses Many economies share knowledge on the regulatory reform process related to the a vast range of indicators and analyt- areas measured in Doing Business. Among the most common venues for this knowl- ics in this policy dialogue, including its edge sharing are peer-to-peer learning events—workshops where officials from dif- Global Poverty Monitoring Indicators, ferent governments across a region or even across the globe meet to discuss the chal- World Development Indicators, lenges of regulatory reform and share their experiences. In recent years such events Logistics Performance Indicators and have taken place in Colombia (for Latin America and the Caribbean), in Rwanda (for Sub-Saharan Africa), in Georgia (for Eastern Europe and Central Asia), in Malaysia (for many others. The open data initiative East Asia and the Pacific) and in Morocco (for the Middle East and North Africa). In has made data for many such indicators addition, regional organizations such as APEC, featured in a case study in this year’s conveniently available to the public at report, use the Doing Business data as a tool and common language to set an agenda for http://data.worldbank.org. business regulation reform. 1. These are reforms for which Doing Business is aware that information provided by the Doing METHODOLOGY AND DATA Business report was used in shaping the reform agenda. Doing Business in Italy 2013 covers 13 cit- ies and 7 ports. The data are based on and construction permits. Certain public based on actual practice rather than domestic laws and regulations as well officials (such as registrars from the com- the law on the books. This introduces a as administrative requirements. (For a mercial or property registry) also provide degree of judgment. The Doing Business detailed explanation of the Doing Business information that is incorporated into the approach has therefore been to work methodology, see the data notes.) indicators. with legal practitioners or professionals who regularly undertake the transactions Doing Business in Italy 2013 Information sources for the data involved. Following the standard method- respondents Most of the indicators are based on laws ological approach for time-and-motion Doing Business in Italy 2013 draws on the and regulations. In addition, most of the studies, Doing Business breaks down each inputs of more than 370 professionals. cost indicators are backed by official fee process or transaction, such as start- The Subnational Doing Business website schedules. Doing Business respondents ing a business or registering a building, shows the number of respondents for both fill out written questionnaires and into separate steps to ensure a better each city. Respondents are professionals provide references to the relevant laws, estimate of time. The time estimate for who routinely administer or advise on regulations and fee schedules, aiding data each step is given by practitioners with the legal and regulatory requirements checking and quality assurance. Having significant and routine experience in the covered in each Doing Business topic. representative samples of respondents is transaction. When time estimates differ, They are selected on the basis of their not an issue, as the texts of the relevant further interactions with respondents are expertise in the specific areas covered by laws and regulations are collected and pursued to converge on one estimate that Doing Business. Because of the focus on answers checked for accuracy. reflects the majority of applicable cases. legal and regulatory arrangements, most of the respondents are legal profession- For some indicators—for example, those The Doing Business approach to data als such as lawyers, judges or notaries. on dealing with construction permits collection contrasts with that of firm Freight forwarders, architects, engineers and enforcing contracts—the time com- surveys, which capture perceptions and and other professionals answer the ponent and part of the cost component experiences of businesses. A corporate surveys related to trading across borders (where fee schedules are lacking) are lawyer registering 100–150 businesses 16 DOING BUSINESS IN ITALY 2013 a year will be more familiar with the To reflect the relevant barrier to entry, the the Hidden Economy.” European Economic process than an entrepreneur, who will paid-in minimum capital has been used Review 51 (1): 203–24; Barseghyan, Levon. 2008. “Entry Costs and Cross-Country register a business only once or maybe rather than the required minimum capital. Differences in Productivity and Output.” twice. A judge dealing with dozens of Journal of Economic Growth 13 (2): 145–67; cases a year will have more insight into Data adjustments Klapper, Leora, Anat Lewin and Juan Manuel commercial proceedings than a company All changes in methodology are explained Quesada Delgado. 2009. “The Impact of that may undergo the process once. in the data notes as well as on the Doing the Business Environment on the Business Business website. In addition, data time Creation Process.” Policy Research Working Development of the methodology Paper 4937, World Bank, Washington, series for each indicator and economy are DC; Freund, Caroline, and Bineswaree The methodology for calculating each available on the website, beginning with Bolaky. 2008. “Trade, Regulations and indicator is transparent, objective and the first year the indicator or economy Income.” Journal of Development Economics easily replicable. Leading academics was included in the report. To provide a 87:309–21.; Chang, Roberto, Linda Kaltani collaborate in the development of the comparable time series for research, the and Norman Loayza. 2009. “Openness Can Be Good for Growth: The Role of Policy indicators, ensuring academic rigor. Eight data set is back-calculated to adjust for Complementarities.” Journal of Development of the background papers underlying the changes in methodology and any revi- Economics 90: 33–49; Helpman, Elhanan, indicators have been published in leading sions in data due to corrections. The data Marc Melitz and Yona Rubinstein. 2008. economic journals.49 set is not back-calculated for year-to-year “Estimating Trade Flows: Trading Partners revisions in income per capita data (that and Trading Volumes.” Quarterly Journal Doing Business uses a simple averaging of Economics 123 (2): 441–87.; Klapper, is, when the income per capita data are Leora, Luc Laeven and Raghuram Rajan. approach for weighting component revised by the original data sources, Doing 2006. “Entry Regulation as a Barrier to indicators and calculating rankings and Business does not update the cost mea- Entrepreneurship.” Journal of Financial the distance to frontier measure. Other sures for previous years). The website Economics 82 (3): 591–629; World Bank approaches were explored, including also makes available all original data sets (2005); and Ardagna, Silvia and Annamaria using principal components and unob- Lusardi. 2010. “Explaining international used for background papers. differences in entrepreneurship: The role served components. They turn out to of individual characteristics and regulatory yield results nearly identical to those Information on data corrections is provid- constraints.” NBER Working Paper. of simple averaging. In the absence of a ed in the data notes and on the website. A 3. This includes Djankov, Simeon, Rafael La strong theoretical framework that assigns transparent complaint procedure allows Porta, Florencio López-de-Silanes and different weights to the topics covered, anyone to challenge the data. If errors Andrei Shleifer. 2002. “The Regulation the simplest method is used: weighting are confirmed after a data verification of Entry.” Quarterly Journal of Economics 117 (1): 1–37.; Djankov, Simeon, Caralee all topics equally and, within each topic, process, they are expeditiously corrected. McLiesh and Andrei Shleifer. 2007. giving equal weight to each of the topic “Private Credit in 129 Countries.” components.50 Journal of Financial Economics 84 (2): NOTES 299–329; Djankov, Simeon, Rafael La Improvements 1. World Bank 2005; Stampini, Marco, Ron Porta, Florencio López-de-Silanes and to the methodology Leung, Setou M. Diarra and Lauréline Pla. Andrei Shleifer. 2008. “The Law and 2011. “How Large Is the Private Sector in Economics of Self-Dealing.” Journal of The methodology has undergone con- Africa? Evidence from National Accounts Financial Economics 88 (3): 430–65; tinual improvement over the years. For and Labor Markets.” IZA Discussion Djankov, Simeon, Caroline Freund and enforcing contracts, for example, the Paper 6267, Institute for the Study of Cong S. Pham. 2010. “Trading on Time.” amount of the disputed claim in the case Labor (IZA), Bonn. Review of Economics and Statistics 92 study was increased from 50% of income 2. See, for example, Alesina, Alberto, Silvia (1): 166–73; Djankov, Simeon, Rafael Ardagna, Giuseppe Nicoletti and Fabio La Porta, Florencio López-de-Silanes per capita to 200% after the first year of and Andrei Shleifer. 2003. “Courts.” Schiantarelli. 2005. “Regulation and data collection, as it became clear that Quarterly Journal of Economics 118 (2): Investment.” Journal of the European smaller claims were unlikely to go to Economic Association 3 (4): 791–825; Perotti, 453–517; Djankov, Simeon, Oliver Hart, court. Enrico, and Paolo Volpin. 2005. “The Caralee McLiesh and Andrei Shleifer. Political Economy of Entry: Lobbying and 2008. “Debt Enforcement around the Another change relates to starting a Financial Development.” Paper presented World.” Journal of Political Economy at the American Finance Association 2005 116 (6): 1105–49; Botero, Juan Carlos, business. The minimum capital require- Philadelphia Meetings; Fisman, Raymond, Simeon Djankov, Rafael La Porta, ment can be an obstacle for potential Florencio López-de-Silanes and Andrei and Virginia Sarria-Allende. 2010. entrepreneurs. Doing Business measured “Regulation of Entry and the Distortion Shleifer. 2004. “The Regulation of Labor.” the required minimum capital regardless of Industrial Organization.” Journal of Quarterly Journal of Economics 119 (4): of whether it had to be paid up front or Applied Economics 13 (1): 91–120; Antunes, 1339–82; and Djankov, Simeon, Tim Antonio, and Tiago Cavalcanti. 2007. Ganser, Caralee McLiesh, Rita Ramalho not. In many economies only part of the “Start Up Costs, Limited Enforcement, and and Andrei Shleifer. 2010. “The Effect minimum capital has to be paid up front. of Corporate Taxes on Investment and ABOUT DOING BUSINESS 17 Entrepreneurship.” American Economic Bureau of Economic Research, and Statistics 93 (1): 382–86. Journal: Macroeconomics 2 (3): 31–64. Cambridge, MA. Analyzing data from 15. According to searches for citations of the 4. For more details on how the aggregate World Bank Enterprise Surveys for 9 background papers that serve as the ranking is created, see the chapter on Sub-Saharan Africa, show that de basis for the Doing Business indicators in the ease of doing business and distance jure measures such as Doing Business the Social Science Citation Index and on to frontier. indicators are virtually uncorrelated with Google Scholar (http://scholar.google ex post firm-level responses, providing .com). 5. This has included a review by the World evidence that deals rather than rules Bank Independent Evaluation Group 16. Djankov, Simeon, Tim Ganser, prevail in Africa. The authors find that (2008), input from the International Caralee McLiesh, Rita Ramalho and the gap between de jure and de facto Tax Dialogue and regular input from the Andrei Shleifer. 2010. “The Effect of conditions grows with the formal regula- Indicators Advisory Group. Corporate Taxes on Investment and tory burden. The evidence also shows 6. De Soto, Hernando. 2000. The Mystery Entrepreneurship.” American Economic that more burdensome processes open of Capital: Why Capitalism Triumphs in the Journal: Macroeconomics 2 (3): 31–64. up more space for making deals and that West and Fails Everywhere Else. New York: firms may not incur the official costs of 17. Eifert 2009. Basic Books. compliance but still pay to avoid them. 18. Klapper, Lewin and Quesada Delgado 7. Schneider, Friedrich. 2005. “The Informal 14. Much attention has been given to 2009. Entry rate refers to newly Sector in 145 Countries.” Department of exploring links to microeconomic registered firms as a percentage of total Economics, University Linz; La Porta and outcomes, such as firm creation and registered firms. Business density is de- Shleifer 2008. employment. Recent research focuses fined as the total number of businesses 8. Amin, Mohammad. 2011. “Labor on how business regulations affect the as a percentage of the working-age Productivity, Firm-Size and Gender: The behavior of firms by creating incentives population (ages 18–65). Case of Informal Firms in Argentina (or disincentives) to register and operate 19. Ciccone, Antonio, and Elias Papaioannou. and Peru.” Enterprise Note 22, formally, to create jobs, to innovate and 2007. “Red Tape and Delayed Entry.” Enterprise Analysis Unit, World Bank to increase productivity. For details, Journal of the European Economic Group, Washington, DC. http:// see Djankov, Simeon, Rafael La Porta, Association 5 (2-3):444-58. enterprisesurveys.org./ Florencio López-de-Silanes and Andrei 20. Alesina, Alberto, Silvia Ardagna, 9. http://www.enterprisesurveys.org. Shleifer. 2002. “The Regulation of Giuseppe Nicoletti and Fabio 10. Narayan, Deepa, Robert Chambers, Entry.” Quarterly Journal of Economics 117 Schiantarelli. 2005. “Regulation and Meer Kaul Shah and Patti Petesh. 2000. (1): 1–37; Alesina and others (2005); Investment.” Journal of the European Voices of the Poor: Crying Out for Change. Banerjee, Abhijit, and Esther Duflo. Economic Association 3 (4): 791-825. Washington, DC: World Bank Group. 2005. “Growth Theory through the Lens 21. Loayza,Norman, Ana Maria Oviedo of Development Economics.” In Handbook and Luis Serven. 2005. “Regulation and 11. OECD, “Indicators of Product Market of Development Economics, ed. Philippe Macroeconomic Performance.” Policy Regulation,” http://www.oecd.org/. The Aghion and Steven Durlauf, vol. 1A: Research Working Paper 3469, World measures are aggregated into 3 broad 473–552. Amsterdam: Elsevier.; Perotti Bank, Washington DC; Barseghyan, families that capture state control, bar- and Volpin (2005); Klapper, Laeven and Levon. 2008. “Entry Costs and Cross- riers to entrepreneurship and barriers to Rajan (2006); Fisman and Sarria-Allende Country Differences in Productivity and international trade and investment. The (2010); Antunes and Cavalcanti (2007); Output.” Journal of Economic Growth 13 39 countries included in the OECD mar- Barseghyan (2008); Eifert, Benjamin. (2): 145-67 ket regulation indicators are Australia, 2009. “Do Regulatory Reforms Stimulate Austria, Belgium, Brazil, Canada, Chile, 22. Dulleck, Uwe, Paul Frijters and R. Winter- Investment and Growth? Evidence from China, the Czech Republic, Denmark, Ebmer. 2006. “Reducing Start-up Costs the Doing Business Data, 2003–07.” Estonia, Finland, France, Germany, for New Firms: The Double Dividend on Working Paper 159, Center for Global Greece, Hungary, Iceland, India, Ireland, the Labor Market.” Scandinavian Journal Development, Washington, DC; Klapper, Israel, Italy, Japan, Korea, Luxembourg, of Economics 108: 317–37; Calderon, Lewin and Quesada Delgado (2009); Mexico, the Netherlands, New Zealand, César, Alberto Chong and Gianmarco Djankov, Simeon, Caroline Freund and Norway, Poland, Portugal, Russia, the Leon. 2007. “Institutional Enforcement, Cong S. Pham. 2010. “Trading on Time.” Slovak Republic, Slovenia, South Africa, Labor-Market Rigidities, and Economic Review of Economics and Statistics 92 Spain, Sweden, Switzerland, Turkey, the Performance.” Emerging Markets Review (1): 166–73; Klapper, Leora, and Inessa United Kingdom and the United States. 8 (1): 38–49; Micco, Alejandro, and Love. 2011. “The Impact of Business 12. The World Economic Forum’s Global Carmen Pagés. 2006. “The Economic Environment Reforms on New Firm Competitiveness Report uses Doing Effects of Employment Protection: Registration.” Policy Research Working Business data sets on starting a business, Evidence from International Industry- Paper 5493, World Bank, Washington, employing workers, protecting inves- Level Data.” IZA Discussion Paper 2433, DC; Chari, Anusha. 2011. “Identifying tors and getting credit (legal rights), Institute for the Study of Labor (IZA), the Aggregate Productivity Effects of representing 7 of a total of 113 different Bonn, Germany. Entry and Size Restrictions: An Empirical indicators (or 6.19%). Analysis of License Reform in India.” 23. Masatlioglu, Yusufcan, and Jamele 13. Hallward-Driemeier, Mary, Gita Khun- American Economic Journal: Economic Rigolini. 2008. “Informality Traps.” B.E. Jush and Lant Pritchett. 2010. “Deals Policy 3: 66–96; Bruhn, Miriam. 2011. Journal of Economic Analysis & Policy 8 (1); versus Rules: Policy Implementation “License to Sell: The Effect of Business Djankov, Simeon. 2009. “The Regulation Uncertainty and Why Firms Hate It.” Registration Reform on Entrepreneurial of Entry: A Survey.” World Bank Research NBER Working Paper 16001, National Activity in Mexico.” Review of Economics Observer 24 (2): 183–203. 18 DOING BUSINESS IN ITALY 2013 24. Cardenas, Mauricio, and Sandra Rozo. “What Constrains Africa’s Exports?” Lilienfeld-Toal, Ulf, Dilip Mookherjee 2009. “Firm Informality in Colombia: World Bank Economic Review 25 (3): and Sujata Visaria. 2012. “The Problems and Solutions.” Desarrollo y 361–86. Distributive Impact of Reforms in Credit Sociedad, no. 63: 211–43. 35. Seker, Murat. 2011. “Trade Policies, Enforcement: Evidence from Indian Debt 25. Bruhn, Miriam. 2011. “License to Sell: The Investment Climate, and Exports.” MPRA Recovery Tribunals.” Econometrica 80 Effect of Business Registration Reform Paper 29905, University Library of (2): 497–558. In a follow-up study, von on Entrepreneurial Activity in Mexico.” Munich, Germany. Lilienfeld-Toal, Mookherjee and Visaria Review of Economics and Statistics 93 (1): found that the average effects identi- 36. Portugal-Perez, Alberto, and John 382–86. fied by Visaria (2009) differ between Wilson. 2011. “Export Performance and wealthy and poor borrowers when the 26. Kaplan, David, Eduardo Piedra and Trade Facilitation Reform: Hard and Soft credit supply is inelastic (because of Enrique Seira. 2007. “Entry Regulation Infrastructure.” World Development 40 limits in such resources as funds, staff and Business Start-Ups: Evidence from (7): 1295–307. and information). In particular, they Mexico.” Policy Research Working Paper 37. Hoekman, Bernard, and Alessandro found that in the short term after the 4322, World Bank, Washington, DC. Nicita. 2011. “Trade Policy, Trade Cost debt recovery tribunals are introduced, 27. Bruhn, Miriam. 2012. “A Tale of and Developing Country Trade.” World borrowers with less collateral may Two Species: Revisiting the Effect of Development 39 (12): 2069–79. experience a reduction in access to credit Registration Reform on Informal Business 38. Nunn, Nathan. 2007. “Relationship- while those with more collateral may Owners in Mexico.” Policy Research Specificity, Incomplete Contracts, and experience an increase. But the authors Working Paper 5971, World Bank, the Pattern of Trade.” Quarterly Journal of also point out that this short-term effect Washington, DC. Economics 122 (2): 569–600. disappears over time as banks are able 28. Aghion, Philippe, Robin Burgess, Stephen 39. Rauch, James. 2010. “Development to increase their resources and the credit Redding and Fabrizio Zilibotti. 2008. through Synergistic Reforms.” Journal of supply becomes elastic. “The Unequal Effects of Liberalization: Development Economics 93 (2): 153–61. 45. Funchal, Bruno. 2008. “The Effects of Evidence from Dismantling the License the 2005 Bankruptcy Reform in Brazil.” 40.Chang, Kaltani and Loayza (2009); Raj in India.” American Economic Review Economics Letters 101: 84–86. Cunat, Alejandro, and Marc J. Melitz. 98 (4): 1397–412. 2007. “Volatility, Labor Market Flexibility, 46. Giné, Xavier, and Inessa Love. 2010. 29. Sharma, Siddharth. 2009. “Entry and the Pattern of Comparative “Do Reorganization Costs Matter for Regulation, Labor Laws and Informality: Advantage.” NBER Working Paper 13062, Efficiency? Evidence from a Bankruptcy Evidence from India.” Enterprise Survey National Bureau of Economic Research, Reform in Colombia.” Journal of Law and Working Paper, Enterprise Analysis Unit, Cambridge, MA. Economics 53 (4): 833–64. World Bank Group, Washington, DC. 41. http://www.enterprisesurveys.org. 47. Franks, Julian, Colin Mayer, Paolo Volpin 30. Chari, Anusha. 2011. “Identifying the and Hannes F. Wagner. 2011. “The Life 42. Haselmann, Rainer, Katharina Pistor and Aggregate Productivity Effects of Entry Cycle of Family Ownership: International Vikrant Vig. 2010. “How Law Affects and Size Restrictions: An Empirical Evidence.” Review of Financial Studies 25 Lending.” Review of Financial Studies 23 Analysis of License Reform in India.” (8): 1–38. (2): 549–80. The countries studied were American Economic Journal: Economic Bulgaria, Croatia, the Czech Republic, 48. One recent study using Doing Business Policy 3: 66–96. Estonia, Hungary, Latvia, Lithuania, indicators illustrates the difficulties in 31. Branstetter, Lee G., Francisco Lima, Poland, Romania, the Slovak Republic, using highly disaggregated indicators Lowell J. Taylor and Ana Venâncio. Slovenia and Ukraine. to identify reform priorities. Kraay, 2010. “Do Entry Regulations Deter Aart, and Norikazu Tawara. 2011. “Can 43. Djankov, Simeon, Caralee McLiesh and Entrepreneurship and Job Creation? Disaggregated Indicators Identify Andrei Shleifer. 2007. “Private Credit Evidence from Recent Reforms in Governance Reform Priorities?” Policy in 129 Countries.” Journal of Financial Portugal.” NBER Working Paper 16473, Research Working Paper 5254, World Economics 84 (2): 299–329; Houston, National Bureau of Economic Research, Bank, Washington, DC. Joel, Chen Lin, Ping Lin and Yue Ma. Cambridge, MA. 2010. “Creditor Rights, Information 49. All background papers are available on 32. Djankov, Freund and Pham 2010. Sharing, and Bank Risk Taking.” Journal of the Doing Business website (http://www 33. Iwanow, Thomasz, and Colin Financial Economics 96 (3): 485–512. .doingbusiness.org). Kirkpatrick. 2009. “Trade Facilitation 44.Visaria, Sujata. 2009. “Legal Reform and 50. A technical note on the different and Manufacturing Exports: Is Africa Loan Repayment: The Microeconomic aggregation and weighting methods is Different?” World Development 37 (6): Impact of Debt Recovery Tribunals available on the Doing Business website 1039–50. in India.” American Economic Journal: (http://www.doingbusiness.org). 34. Freund, Caroline, and Nadia Rocha. 2011. Applied Economics 1 (3): 59–81. von 19 Starting a business Small and micro-enterprises are the back- are not put at risk. Sole proprietorships bone of the Italian economy. Ninety-nine do not provide this kind of protection but percent of Italian companies have fewer are usually simpler and cheaper to set than 50 employees: together, they em- up.4 Formally registered companies have ploy more than 13 million individuals. Sole access to services and institutions—from proprietorships account for over 62% of courts to banks to new markets—benefits the 5,233,746 businesses registered in that are not available to unregistered firms. the country.1 Flexibility, specialization and And where firms are formally registered, innovation allow Italy’s small companies their employees benefit from protections to excel in many areas—from fashion and provided by the law. high-quality consumer goods to industrial machinery. However, business size may Making the process of business incor- be a constraint when competing at a poration easy and inexpensive also has pan-European and at a global level. Faced broader benefits for the economy. A with a complex business environment, growing body of empirical research ex- Italian entrepreneurs often choose to stay plores the links between business-entry small and are thus unable to benefit from regulation and social and economic out- economies of scale to increase their pro- comes. Using data collected from com- ductivity as their foreign counterparts do.2 pany registries in 100 economies over 8 years, a recent study found that simple Over the past 6 years, Italy’s national business start-up is critical for fostering and local authorities have been particu- formal entrepreneurship.5 Cumbersome larly interested in improving the ease of regulations and administrative proce- business entry, reducing red tape and dures for starting a business are found bureaucracy.3 This effort intensified with to be associated with a smaller number the introduction of several measures of registered firms, greater informality, a aimed at reducing start-up costs. The smaller tax base and more opportunities impact of recent policies may show their for corruption. effects in the near future. A lot, however, will depend upon how these policies are Regulatory reforms can make a differ- implemented on the ground. ence.6 In Mexico, researchers found that a municipal license reform across states increased new firm registrations by 5% WHY DOES STARTING A and employment by 2.2%.7 The effect BUSINESS MATTER? was greater in states with less corruption Formal incorporation has many ben- and better governance.8 efits. Legal entities outlive their founders. Resources are pooled as shareholders join WHAT DOES STARTING A forces. The legal form under which a com- BUSINESS MEASURE? pany is registered also matters. Limited li- ability companies cap the financial liability Doing Business measures the procedures, of company owners to their investments, time, cost and paid-in minimum capital giving entrepreneurs more freedom to for a small to medium-size company to innovate because their personal assets start up and operate formally (figure 3.1). 20 DOING BUSINESS IN ITALY 2013 FIGURE 3.1 What are the time, cost, paid-in minimum capital and number of procedures to get a commencement of operations (figure local limited liability company up and running? 3.2).11 Campobasso is the only city where, Cost despite this new feature, the entrepreneur (% of income per capita) Formal must still personally submit a paper copy operation of the certificate to the SUAP. Paid-in Number of Despite the uniform requirements across minimum procedures capital Italy, there are variations in how much time the requirements take in different locations and the associated costs. As a result, it is easier to start a business Entrepreneur Time (days) in Catanzaro and more difficult in Preregistration Registration, Postregistration incorporation Campobasso (table 3.1). Source: Doing Business database. Compared internationally, starting a busi- ness in Italy is fast but expensive (figure Procedures include the steps required to process. In April 2007, Law No. 40 3.3). Across the 13 cities benchmarked, obtain all necessary licenses and permits (known as the “Bersani Law”) over- starting a business takes, on average, 6 and to complete required notifications, hauled the business registration process. procedures, 9 days and 14.5% of income verifications and inscriptions for the com- Since February 2008, the Chambers of per capita. In addition, Italian entrepre- pany and its employees. To make the data Commerce of Cagliari, Milan, Naples, neurs must deposit €2,500—equivalent comparable across 185 economies, Doing Padua, and Turin piloted an electronic to 9.7% of income per capita—as paid-in Business uses a standardized business platform known as ComUnica.10 As of April minimum capital. An average Italian city that is 100% domestically owned, has 1, 2010, ComUnica is mandatory every- would rank 96 out of 185 on the ease of a start-up capital equivalent to 10 times where. Now notaries and businesses in- starting a business as measured by Doing income per capita, engages in general teract online with the tax agency (Agenzia Business. Catanzaro—the Italian city with industrial or commercial activities and delle Entrate), the company registry of the best combination of low professional employs between 10 and 50 people. the Chambers of Commerce (Registro costs and fast public-agency response Imprese delle Camere di Commercio), the times (table 3.1)—would rank 79 globally, HOW DOES STARTING A Social Security Administration (INPS) and still below the average EU ranking of 74. BUSINESS WORK IN ITALY? the Accident Insurance Office (INAIL). Since March 2011, ComUnica also allows In Milan, Padua or Rome, an entrepreneur A shared national regulatory framework can complete the necessary procedures to regulates business start-up across Italy. entrepreneurs to notify the municipal one-stop shop for “productive activities” start a business in just 6 days, as fast as in First, the entrepreneur deposits at least Denmark or the United States. In L’Aquila 25% of the minimum start-up capital (SUAP for its initials in Italian) about the into a bank account.9 The second step is to visit a notary public who executes the FIGURE 3.2 ComUnica: how does it work? deed of incorporation and the company bylaws, including paying a registration tax. Then the entrepreneur buys the Social Security corporate and accounting books, pays Administration the government tax and gets the books stamped. Once these requirements are met, the firm and its employees are regis- tered with the company registrar and the Tax Agency tax agency, as well as with social security Chamber of Commerce, Company Registry and accident insurance. The municipality Municipal One Stop Shop is also informed of commencement of for “Productive Activities” operations. Finally, the entrepreneur noti- (SUAP) fies the local labor office regarding the Accident beginning and conditions of employment. Insurance Office Registration was not always easy. Over recent years, Italy has simplified the Source: Doing Business database. STARTING A BUSINESS 21 TABLE 3.1 The ease of starting a business applications in 1 day. In Turin, Catanzaro, of a new business—come first.” Many of across the benchmarked Italian Potenza, Cagliari and Palermo, it takes 2 her colleagues across Italy would agree. cities days. In Naples and L’Aquila, it takes 5 When the volume of application grows, RANK City RANK City days. Once the company has been regis- Italian agencies usually adopt advanced 1 Catanzaro 8 Milan tered, employees are registered with the monitoring and evaluation techniques. 2 Padua 9 L’Aquila Social Security Administration (INPS) in For example, the Chamber of Commerce 3 Potenza 9 Turin 1 day in Catanzaro, Campobasso, Padua, of Milan conducts regular surveys of 4 Bologna 11 Cagliari Milan or Rome—up to 7 days in Naples. customer satisfaction, makes the results 5 Palermo 12 Naples The remaining notifications and applica- public and uses feedback to improve per- 6 Bari 13 Campobasso tions are processed concurrently with formance. The process is accompanied by 7 Rome company and employee registrations. strict internal monitoring of data process- Note: Rankings are based on the average city percentile The tax agency (Agenzia delle Entrate), ing and service delivery.12 rankings on the procedures, time, cost and paid-in minimum capital to start a business. See Data notes for for example, issues the income tax and details. value-added tax (VAT) ID numbers just Throughout Italy, starting a business is Source: Doing Business database. a few minutes after the application has expensive (figure 3.5). In all cities, as per been submitted. Similarly, municipalities national regulations, the entrepreneur acknowledge receipt of notifications of must pay: €310 for the “government and Naples, starting a business takes 13 the beginning of operations within hours. grant tax” (tassa di concessione governa- and 16 days, respectively (figure 3.4). tiva), €168 for registration tax (imposta di The 10-day variation between cities de- In some cities, business start-up applica- registro), €156 for the stamp tax (imposta pends on the response time of the agen- tions are prioritized over other corporate di bollo forfetaria), as well as the Chamber cies contributing to ComUnica. Once the matters. A public official in Padua com- of Commerce’s registration fee of €90 necessary information has been uploaded ments: “Thanks to ComUnica, there is and annual membership fee of €200. to the system, the entire process of regis- a constant flow of communication and Additional fees—such as the stamp tering a company and its employees can data between companies and us. Not all duties to be applied on the corporate take as few as 2 days. In Milan, Padua, requests are equally important to the life books—add up to another €119. Rome and Bologna the company registry cycle of a business. As we process appli- cations or communications, we prioritize. Cost variations across cities are driven of the Chambers of Commerce processes Important things—such as the creation by differences in professional fees that FIGURE 3.3 Starting a business in Italy is fast but expensive 10 Spain 28 Spain Milan 16.8 49.1 Austria 43.9 Slovenia 9 Germany 25 Austria 14.5 8 Austria Naples 16 16 Sweden Bari 12.2 24.2 Denmark 15 Germany 14 EU average, 4.9 EU average, Campobasso 7 Germany, Finland Austria 13 United 4.7 Spain 12 Cities 6 6 EU average, Kingdom 4.5 OECD high United Kingdom, 12 OECD high income United States income average 14.9 EU average 5 OECD average 13.3 OECD high Italy— high income 13-city income average, average 9 average France 13.2 Spain, 1.4 United States Sweden 4 Denmark Italy 9.7 7 France 3 Finland, Milan, 6 6 Slovenia, 1.0 Finland Sweden Padua, Denmark, 0.9 France 7.0 Finland Rome United States 2 Slovenia 0.7 United Kingdom 0.0 New Zealand, 0.5 Sweden France, 0.4 New Zealand Germany, 0.2 Denmark United 1 New 1 New Kingdom, Zealand Zealand 0.0 Slovenia United States Procedures Time Cost Paid-in Minimum Capital (number) (days) (% of income per capita) (% of income per capita) Source: Doing Business database. 22 DOING BUSINESS IN ITALY 2013 FIGURE 3.4 Starting a business in Milan, Padua or Rome is as fast as in Denmark and in the WHAT TO REFORM United States Formalize fast-track processing Netherlands 5 for business start-up Milan 6 ComUnica is not only about business start- Padua 6 Rome 6 up. After a business has been registered, Denmark 6 firms use ComUnica to communicate a United States 6 wide array of information to company Bologna 7 registry, tax agency, the Social Security Catanzaro 7 Administration, Accident Insurance France 7 Campobasso 8 Office and the SUAPs. Regulations set at Palermo 8 the national level order agencies involved Potenza 8 in ComUnica to respond within a certain Turin 8 time limit to each communication. For ex- Bari 9 ample, in many instances, the Chambers Cagliari 9 of Commerce must respond within 5 OECD countries (average) 12 L’Aquila 13 days. The Social Security Administration United Kingdom 13 must respond within 7 days. In all 13 EU average 14 cities benchmarked, the public agencies Germany 15 generally abide by set time limits. In some Naples 16 cities, public officials have gone one step 0 5 10 15 20 Time (days) further by setting up an internal scale Source: Doing Business database. of priorities for processing applications. Business start-up and other vital process- es for companies—such as, corporate account, on average, for over 70% of the notaries.18 Decree no. 1 stipulates that the mergers and closures—are fast-tracked overall cost (figure 3.6). Starting a busi- necessary procedures for the licensing of over less important matters. This is the ness is less expensive in Bari (12.2% of 550 new notaries should be carried out by case in Padua, where registration with income per capita) and Catanzaro (12.4% the end of December 2012. Competitive ComUnica takes as few as 2 days. This of income per capita) while it is more state examinations for up to 1,000 ad- practice results in shorter waiting times expensive in Rome (16.5% of income per ditional notaries will be announced on for entrepreneurs and should be extended capita) and Milan (16.8% of income per December 31, 2013, and again 1 year later. throughout the country. capita). Other measures have been adopted dur- Eliminate the minimum Until a few months ago, the Ministerial ing 2012 to reduce the cost of starting capital requirement Decree of November 27, 2001, set a range a business. Notably, the Decreto “Cresci The minimum capital requirement for of permitted notary fees, allowing for a Italia” introduced a new type of limited limited liability companies in Italy is certain degree of flexibility for local notary liability company—the società responsabil- €10,000.22 Entrepreneurs must deposit chapters and individual notaries.13 The ità limitata semplificata (SRLS)—with a at least 25% of this amount in a bank ac- recent Decree no. 1 of January 24, 2012, symbolic minimum capital requirement count before incorporation (figure 3.7).23 (Decreto “Cresci Italia”) abolished the of €1. Notaries are not allowed to charge The funds can be withdrawn as soon as concept of minimum fees for professional for the constitution of a SRLS.19 The the company is created. services.14 The decree also stipulated an Ministry of Justice, Ministry of Finance increase in the overall number of notaries and Ministry of Economic Development However, studies show that minimum operating in the country.15 The measures are currently working together to de- capital requirements provide little in aim to foster competition for notary velop the necessary implementation the way of creditor-protection ben- services. regulations and standard articles of as- efits—regardless of the legal system.24 sociation.20 Even with these regulations in In practice, a minimum capital require- Notaries must now negotiate their fees place, many Italians will be excluded from ment is hardly a protection for investors upfront with their clients.16 But, as of June creating an SRLS or acquiring its shares. during insolvency. When creditors make 2012, due to a lack of implementation This is because the Decreto “Cresci Italia” an investment decision, they look at a regulations, notaries were still using the stipulates that SRLS can only be consti- wide range of protection instruments old Decree as a reference.17 Given the tuted by people younger than 35 years of available through the company law, scarcity of notaries, clients do not have age.21 the insolvency law and/or clauses in much choice: Italy currently counts 4,700 STARTING A BUSINESS 23 FIGURE 3.5 …but starting a business is expensive throughout the country capital requirements similar to those applied in France: 12,000 new UGs were Milan 16.8 Rome 16.5 created between November 2008 and Naples 16.0 January 2010.27 Turin 16.0 Cagliari 15.3 In January 2012, the Italian government Campobasso 15.3 introduced a simplified limited liability Padua 14.5 company (SRLS) with a minimum capital Bologna 14.1 requirement of €1, implicitly acknowledg- Palermo 13.5 L’Aquila 13.3 ing, as many other countries have done Potenza 12.6 over the past few years, that minimum Catanzaro 12.4 capital requirements are ineffective.28 Bari 12.2 This feature could be extended to all Netherlands 5.1 limited liability companies. EU average 4.9 Germany 4.9 Simplified limited liability OECD countries (average) 4.5 United States 1.4 companies should be available France 0.9 to all United Kingdom 0.7 Simplified limited liability companies Denmark 0.2 (SRLS) represent an important step to- 0 5 10 15 20 Cost (% of income per capita) wards smarter business regulation. The Source: Doing Business database. SRLS announced features—reduced fees and simplified requirements—will reduce the cost, time and complexity to start a negotiated contracts to mitigate risks. risk as a big manufacturing company in business in Italy. According to the Decreto Finally, academic evidence from around a volatile market. On the other hand, a “Cresci Italia,” however, simplified liability the world shows that recovery rates in minimum capital requirement can act as companies are only available to people bankruptcy are no higher in economies a barrier to entry—especially for small younger than 35 years of age. Apart from with minimum capital requirements than companies. being discriminatory, this restriction does in those without. In 2010 to 2011, the not serve any particular purpose.29 A new recovery rate was the same (34%) in France reduced its paid-in minimum capi- decree, known as Decreto Sviluppo, which economies without any paid-in capital tal requirement for limited liability com- is currently under discussion, might requirement as in the others.25 Moreover, panies (SARL) to €1 in 2003. In 2004 the address the problem. Entrepreneurship fixed amounts of capital requirements do number of newly created SARLs increased should be accessible to everybody with a not take into account differences in com- by 17.5%.26 In 2008, Germany introduced good idea, irrespective of age. mercial risk. A small firm in the services a new type of limited liability company, industry does not represent the same the Unternehmergesellschaft (UG), with Make the use of professional intermediaries optional The biggest obstacle to starting a busi- FIGURE 3.6 On average, more than 70% of the costs to start a business in Italy are due to ness in Italy is the high cost. Across the 13 professional services cities benchmarked, costs average 14.5% of income per capita. Over 70% of these costs are due to professional services. Using a notary to establish a limited li- Government Grant Tax 8.3% ability company—be it standard or sim- plified—is, at the moment, compulsory. Stamp Tax 4.2% Notary costs 72.2% Imposta di Registro (Registration Tax) 4.5% The government has recently abolished minimum notary fees and is pushing for Chamber of Commerce Registration Fee 2.4% an increase in the number of notaries Chamber of Commerce Membership Fee 5.3% to promote competition.30 For standard limited liability companies, notary fees Other 3.2% are now negotiated directly with the cli- Source: Doing Business database. ent. In addition, notaries are not to charge 24 DOING BUSINESS IN ITALY 2013 FIGURE 3.7 How much are enterpreneurs required to deposit as minimum capital in OECD high “The Impact of the Business Environment income economies? on the Business Creation Process.” Policy Research Working Paper 4937, World Canada 0.0 Bank, Washington, DC. France 0.0 6. Motta, Marialisa, Ana Maria Oviedo Germany 0.0 Silva, Massimiliano Santini. 2010. Ireland 0.0 “An Open Door for Firms: The Impact of Israel 0.0 Entry Reforms”. Viewpoint 323, World Japan 0.0 Bank, Washington, DC Korea, Rep. 0.0 7. Bruhn, Miriam. 2011. “License to Sell: New Zealand 0.0 The Effect of Business Registration Portugal 0.0 Reform on Entrepreneurial Activity United Kingdom 0.0 in Mexico.” Review of Economics and United States 0.0 Statistics 93 (1): 382–86. Finland 7.0 8. Kaplan, David, Eduardo Piedra and Hungary 9.4 Enrique Seira. 2007. “Entry Regulation Italy 9.7 and Business Start-Ups: Evidence from Poland 13.0 Mexico.” Policy Research Working Paper 4322, World Bank, Washington, DC. Spain 13.2 Belgium 18.2 9. Doing Business considers the most com- mon type of limited liability company, Luxembourg 20.9 which is the società a responsabilità Slovak Republic 21.3 limitata (SRL). In January 2012, the Estonia 22.1 government introduced a new type of Denmark 24.2 limited liability company with a symbolic Greece 24.4 minimum capital requirement of €1, the Czech Republic 29.7 società responsabilità limitata semplificata Slovenia 43.9 (SRLS). The necessary implementing Austria 49.1 regulations concerning the SRLS were not Netherlands 49.4 issued as of June 2012. In the meantime, the authorities were discussing the pos- 0 10 20 30 40 50 sibility of creating yet another legal form. Paid-in Minimum Capital (% of income per capita) 10. Turin, Venice, Padua, Prato, Pescara, Source: Doing Business database. Ravenna, Milan, Naples, Cagliari and Taranto piloted ComUnica since 19 February 2008. Additional cities—such an “honorarium” to create a simplified NOTES as Rome—started piloting ComUnica limited liability company (SRLS) for 1. Infocamere-Stockview data processed shortly after. entrepreneurs under 35. But why stop by Unioncamere del Veneto—1st Quarter 11. Decreto del Presidente della Repubblica here? The government could lower the 2012. No. 160 of 2010. cost to start a business by making sure 2. Gill, Martin. 2012. “Golden Growth: 12. More than 15,000 interviews were carried its standardized articles of association Restoring the Lustre of the European out between 2008 and 2011. The results Economic Model,” World Bank, are available at www.mi.camcom.it (currently in development) are flexible Washington, DC. 13. Articles 26 and 30 of Ministerial Decree enough to accommodate the needs of the 3. A seminal change in the business regis- of 27 November 2001. majority of simple businesses, thus allow- tration process was introduced by Art. 14. Art. 9.1 of Decreto Legge No. 1 of 24 ing entrepreneurs to draft and file deeds 9 of Decreto Legge No. 7 of 31 January January 2012. of incorporation themselves—without the 2007. The Decreto Legge was converted 15. Art. 12 of Decreto Legge No. 1 of 24 costly intervention of notaries. into Law No. 40 on 2 April 2007. January 2012. 4. According to a survey conducted by 16. Art. 9.3 of Decreto Legge No. 1 of 24 Eliminating or reducing state-set fees and Doing Business in 2011 covering 183 January 2012. stamp duties could further reduce costs. economies, the process of establishing a 17. Ministerial Decree of 27 November 2001 sole proprietorship requires fewer proce- In Denmark, starting a business is free. (Determinazione della tariffa degli onorari, dures and is cheaper than establishing a Funds to pay for government services dei diritti, delle indennità e dei compensi limited liability company in over 90% of are raised through taxes paid by thriving spettanti ai notai—G.U. n. 292, 17 dicembre economies. 2001, Serie Generale). businesses. 5. Klapper, Leora, Anat Lewin and Juan Manuel Quesada Delgado. 2009. STARTING A BUSINESS 25 18. On June 2012, there were 4,669 public 21. Article 3.1 of Decreto Legge No. 1 of 24 27. Common Register Portal of the notaries operating in Italy. A complete January 2012. German Federal States, https://www and updated list of notaries can be found 22. As per Art. 2463, comma 2, of the Italian .handelsregister.de/. in the website: www.notariato.it Civil Code. 28. Since 2005, 57 economies around 19. Note that the intervention of the 23. If the limited liability company has only the world have reduced or eliminated notary in the creation of the SRLS was 1 partner, the whole amount must be this requirement, lowering the average not required (i.e., atto costitutivo redatto deposited. paid-in minimum capital requirement per scrittura privata) by the Decree issued from 184% of income per capita to 49% 24. Elkind G. 2007. “Minimum Capital by the government on January 24, 2012. globally. See: World Bank. 2011. Doing Requirements, a Comparative Analysis,” The text of the decree was changed by Business 2012: Doing Business in a More USAID. Other relevant studies in- the Italian parliament when the decree Transparent World. Washington, DC: The clude: Armour, J., “Legal Capital: An was transformed into law. The interven- World Bank Group. Outdated Concept?”, European Business tion of the notary is now required (i.e., 29. Art. 3 of the Italian constitution says Organization Law Review 7: 5–27 5 atto costitutivo deve essere redatto per that “All citizens have equal social (2006); Kubler, F. “A Comparative atto pubblico) but notaries should not dignity and are equal before the law, Approach to Capital Maintenance: charge any fee (onorario) for this service. without distinction of sex, race, language, Germany”` European Business Law The changes to the original decree religion, political opinions, personal and Review 1031–1035 (2004); Simon, J. can be found at http://www.senato.it/ social conditions. It is the duty of the “A Comparative Approach to Capital commissioni/4572/368476/368336/ Republic to remove those obstacles of Maintenance: France,” European Business genpaginalista.htm an economic and social nature which, Law Review 1037–1044 (2004); Mulbert, The final text, as modified by the really limiting the freedom and equality P. and Birke, M. “Legal Capital—Is There parliament, can be found at: of citizens, impede the full development a Case Against the European Legal http://www.camera.it/126?pdl=5025 of the human person and the effective Capital Rules?,” 3 European Business The SRLS is also exempted from other participation of all workers in the politi- Organization Review 695–732 (2002). costs currently associated with starting cal, economic and social organization a limited liability company, namely the 25. World Bank. 2011. Doing Business 2012: of the country.” http://www.governo.it/ “costi camerali.” Doing Business in a More Transparent governo/costituzione/principi.html World. Washington, DC: The World Bank 20. More specifically, the ministries are 30. The title of Decreto Legge No. 1 of 24 Group. working upon creating a set of stan- January 2012 is “Urgent measures to dard articles of association (“Statuto 26. INSEE PREMIÈRE, No 2 of January 2005, increase competition, development of standard”) and defining the criteria to Institut National de la Statistique et des infrastructures and competitiveness.” ascertain the shareholder attributes and Études Économiques http://www.insee requirements. .fr/fr/ffc/docs_ffc/IP1002.pdf 26 Dealing with construction permits In May 2012, two massive earthquakes A smooth process for obtaining building hit Northern Italy, causing 26 deaths and permits is also associated with a lower widespread damage. Many buildings level of corruption (figure 4.1). This is collapsed in the earthquake, including relevant in Italy, where the perception of recently built warehouses. corruption is high as compared to other OECD high-income economies.6 It is not easy to find the right balance be- tween safety and efficiency in construc- WHAT DOES DEALING WITH tion regulations. The regulations need to CONSTRUCTION PERMITS be clear and adaptable to economic and MEASURE? technological change. Overly complex Doing Business records the procedures, regulations may push construction into time and cost required for a construc- the informal sector, undermining their tion business to obtain all the necessary intent. The challenge for governments is approvals to build a simple commercial to create prudent rules that ensure safety, warehouse and connect it to water, sew- without needlessly hindering businesses. erage and a fixed telephone line (figure Denmark, New Zealand and Sweden 4.2). The case study includes inspections are examples of countries that manage and certificates needed before, during to regulate the construction permitting and after construction of the warehouse. process with relatively few requirements, To make the data comparable across 185 yet regulations in these countries are economies, the case study assumes that considered prudent and buildings safe.1 the warehouse is located in the peri-urban area of the cities measured, is not in a WHY DOES CONSTRUCTION special economic or industrial zone and PERMITTING MATTER? will be used for general storage activities. The building industry contributes an average 6.5% to the GDP in OECD high- income economies.2 In Europe, the build- FIGURE 4.1 Share of firms that expects to give gifts in exchange for ing sector accounts for about 7% of total construction permits employment; it is the largest industrial Economies ranked by ease of dealing employer.3 For every 10 jobs directly re- with construction permits, quintiles lated to a building project, another 8 jobs % may be created in the local economy.4 30 In Italy, construction is the sector with 20 the highest incidence of accidents pro- ducing permanent disability and the sec- 10 ond highest for fatal accidents.5 Instead 0 of promoting public safety, overly rigid Least Most difficult difficult regulation can push Italy’s construction Note: Relationships are significant at the 1% level and into the informal economy. remain significant when controlling for income per capita. Source: Doing Business database; World Bank Enterprise Survey database. DEALING WITH CONSTRUCTION PERMITS 27 FIGURE 4.2 What are the time, cost and number of procedures to comply with formalities to build these steps varies from 11 in Cagliari and a warehouse? Rome to 15 in Naples. Cost (% of income per capita) The one-stop shops “Sportelli Unici,” are Completed theoretically in charge of coordinating warehouse the construction permitting process. They should forward the building ap- Number of procedures plications to the relevant authorities and collect their responses on behalf of the applicant, thereby reducing the number A business in the construction of interactions. However, in practice, ap- industry Time (days) plicants often prefer to go directly to the Before construction During construction After construction and utilities public health agency and the fire depart- ment, for example, to obtain clearances. HOW DOES CONSTRUCTION Finally, each municipality adopts its own Applicants claim that the response time PERMITTING WORK IN ITALY? urban planning regulations. is faster when they interact directly with each authority rather than through the Across Italy, dealing with construction The process includes obtaining clear- Sportello Unico. One alleged reason is permits takes an average of 13 proce- ances from the fire department and the that a personal visit allows applicants dures and 231 days, at a cost equivalent public health agency, obtaining a building to have preliminary discussions on the to 253.6% of income per capita. With permit and the seismic authorization,8 project. This is seen as an essential step an average of 14 requirements, the passing inspections during construction, to navigate the regulations. The applicant same process is slightly more complex, filing the certified notification “SCIA” then simply brings all approvals to the but faster—182 days—and significantly with the fire department, registering the Sportello Unico, so that the municipality less expensive—99.6% of income per building at the cadastre, obtaining the can issue the building permit. Cagliari is capita—in the average economy in the occupancy certificate, and connecting the exception. A law of the regional gov- European Union (figure 4.3). In Denmark, the building to utilities (figure 4.4). The ernment of Sardinia stipulates that com- the best performing European economy number of requirements to comply with panies must submit their applications in the Doing Business 2013 global ranking, dealing with construction permits re- quires just 8 procedures that last 68 days FIGURE 4.3 Dealing with construction permits in Italy, compared internationally and costs 57.1% of income per capita. It is easier to comply with all the formali- Naples 15 Palermo 316 Milan 966.3 ties to build a warehouse and connect it to utilities in Bologna and Cagliari and 14 OECD high income more difficult in Potenza and Palermo average, Italy— EU average (table 4.1). Bologna, Italy’s best perform- 13-city 13 231 253.6 average ing city, requires 13 procedures, 164 days, and 177.1% of income per capita. 184 France Compared globally, Bologna’s ranking 182 Spain, Cagliari, 11 EU average would be 99 among 185 economies on Rome the ease of dealing with construction Milan 151 permits—ahead of the Ireland (106) and 9 Germany, 143 OECD United high income 99.6 EU average Brazil (131) but behind France (52) and Kingdom, average Spain (38). France 78.7 OECD high income 8 Spain, average Denmark 99 United Construction regulations are established at Kingdom 68.0 France 62.4 United the national, regional and municipal level. 97 Germany Kingdom The Decree No. 380 of 2001,7 Testo Unico Naples 45.1 57.1 Denmark 68 Denmark 51.8 Spain dell’Edilizia, sets the fundamental prin- 48.1 Germany ciples and the general provisions. Regional authorities implement the regulation in Procedures Time Cost (number) (days) (% of income per capita) accordance with this national framework. Source: Doing Business database 28 DOING BUSINESS IN ITALY 2013 electronically to the Sportello Unico per le FIGURE 4.4 Construction permitting follows filing of the Super-DIA,11 the municipality Attività Produttive (SUAP).9 Upon receipt, the same basic stages across Italy verifies all documents for formal compli- the SUAP convenes a conference with all Preconstruction procedures ance and completeness. Construction the agencies responsible for issuing ap- can then start. Even though the Super-DIA provals (Conferenza dei Servizi). However, Obtain clearance from the fire department is a national law, implementing regula- in practice, one conference is rarely suffi- tions are set at the regional level. In Milan Obtain clearances from the public health agency cient. A request for additional documents and in the rest of the Lombardy region, by any one of the relevant agencies can Obtain a building permit from the municipality the Super-DIA is allowed as an alternative trigger a complete repetition of the entire to the building permit for new construc- approval process. Fulfill the requirements of the seismic regulation tions. In the other regions, the use of the Super-DIA is more restricted. It cannot be During construction procedures In Padua, accredited professionals are used for new constructions, except when allowed to substitute the clearance from Hire an independent professional the town plan (Piano Attuativo) contains the public health agency with a self-cer- to test the structure precise provisions regarding the size and tification of compliance with health and the type of construction that can be built Postconstruction procedures hygiene norms for business activities. In in a certain area. other cities, this is possible only for resi- File the certified notification “SCIA” dential constructions. In Campobasso, with the fire department After construction, developers must fulfill before starting construction, the struc- the fire safety requirements, register the Register the building with the cadastre tural project must be filed with 2 different building and obtain the occupancy permit. offices—one municipal and the other Obtain the occupancy certificate In Bologna and Cagliari, the occupancy from the municipality regional—while in the other cities appli- permit is issued in just 1 day. In the other cants deal with 1 office only. In Catanzaro, Connect to the utilities cities, municipalities have 30 days from building companies must clear cadastral the date of filing to issue the occupancy Source: Doing Business database. documents with the Municipal Technical certificate, after which a “silence-is- Office before they can register the build- consent” formula is applied. Obtaining a ing with the cadastral agency Agenzia the respective municipality are the main telephone connection varies from 15 days del Territorio. In Naples, a drainage au- cause of this variation. Because of the to 30 days. Water and sewerage connec- thorization (Autorizzazione allo Scarico in complexity of regulations, municipalities tions take from 20 days (in L’Aquila and Fogna) must be obtained from the agency often request additional information or Milan) to 3 months (in Potenza). “A.T.O. 2 Campania” prior to connecting to amendments to the original plans. Such sewerage. The cost of obtaining construction per- requests automatically postpone the mits also varies considerably from city approval deadlines. The time to receive Obtaining all permits takes 151 days in to city. In Naples (45.1%) and Catanzaro feedback on projects also depends on the Milan—faster than the EU average. In (48.1%), the process is significantly less efficiency of the municipality. In Palermo Palermo, it takes more than 5 months expensive as a percentage of gross na- and Catanzaro, waiting for feedback may longer (figure 4.5). Delays related to tional income (GNI) per capita than it is take over 6 months, while in Naples, the issuance of building permits from in Milan (966.3%) or Potenza (725.1%). Campobasso and Potenza, it would take under 3 months. In Milan it takes only 30 The variation in costs stems mainly from days. Even though, according to national local building permit fees (Contributo TABLE 4.1 Where is dealing with law, smaller cities should issue building di Costruzione), which constitute 87% construction permits easy— and where not? permits faster than bigger cities, that of the total cost (figure 4.6). Regional RANK City RANK City is not always the case in practice.10 For governments set bandwidths within 1 Bologna 8 Campobasso instance, obtaining a building permit in which municipalities establish their fees. 2 Cagliari 9 Bari Catanzaro takes as long as in Palermo. In many municipalities, finding out how 3 L’Aquila 10 Catanzaro much a building permit costs is a chal- In Milan, a fast-tracked procedure speeds 3 Milan 11 Naples lenge itself because of the complexity of up the building authorization process. 5 Padua 12 Palermo the calculation. In Milan, the calculation A law of the regional government of 6 Rome 13 Potenza can be done easily through the website Lombardy allows applicants to proceed 7 Turin of the municipality. The municipalities of with a “Starting Activity Declaration” Note: Rankings are based on the average city percentile Padua and of Turin provide clear instruc- rankings on the procedures, time, and cost to deal with (Super-DIA), which is a substitute for the construction permits. See Data notes for details. tion on how to calculate the fees for each building permit. Within 30 days of the Source: Doing Business database. type of construction. These instructions DEALING WITH CONSTRUCTION PERMITS 29 are also available online. The other cities municipality grants the building permit biggest hurdle for construction compa- do not provide easily available online in- and construction may begin. nies in Italy. The “silence-is-consent” formation, except the regulations that set rule introduced in July 2011 is a positive the fees. These rules are often difficult to A regulation under discussion at the time step, but—especially, in cities with more interpret, even for professionals. For this of writing requires that all clearances nec- than 100,000 inhabitants—the time limit reason, an appointment with an officer essary for the construction permit must is still too long (150 days).12 In addition, of the municipality is usually needed to be released to the one-stop shop rather whenever municipalities request ad- calculate the fees. than directly to the applicant. In order ditional documents or clarifications, the to improve efficiency, the fire depart- clock stops, which means that the overall ment, public health agency and others time to obtain a building permit can run WHAT TO REFORM? should be encouraged to cooperate more even longer. Improve the coordination smoothly with the Sportello Unico of the between the fire department, municipality and coordinate amongst More can be done to speed up the ap- the public health agency and the themselves. In order to encourage the proval process for simple buildings. The one-stop shops agencies to do so without delay, other implementation of the Super-DIA in Milan Applicants in most cities have the option measures should also be considered. offers an excellent example. to request the various pre-construction One way to obtain more responsiveness clearances through the one-stop shop, is to set performance-related rewards A different approach would be to introduce rather than visit each agency separately. for cooperation with the Sportelli Unici. risk-based assessments. The German But the general perception is that the one- Another option is to fine authorities when state of Bavaria offers an example. Here stop-shop delays the process. As a result, they stall the process for no clear reason. a differentiated permitting approach building companies often bypass the Staffing and resources should also be was introduced in 1994. For low-risk Sportello Unico and interact directly with added to the one-stop shops themselves. projects, the design architects must show the fire department, public health agency proof of their qualifications and assume and others. Once the pre-construction Cut delays to obtain building liability for the construction. For medium- clearances are obtained, they are deliv- permits from municipalities risk projects, an independent, certified ered to the Sportello Unico, so that the Obtaining building permits from the appraiser must approve the plans. Only respective municipality presents the high-risk, complex projects are fully re- viewed by building authorities.13 By 2002 Bavarian builders had saved an estimated FIGURE 4.5 Time to deal with construction permits across 13 Italian cities €154 million in building permit fees that would have been paid to the government Days 200 under the pre-1994 rules, and building Palermo 316 authorities had 270 fewer employees on 200 Catanzaro 309 their payroll. 180 Cagliari 252 Improve the accessibility and 85 Naples 252 transparency of information 135 Bari 238 Municipal administrations that make L’Aquila 150 clear and complete information eas- 238 135 ily accessible online help professionals Rome and entrepreneurs avoid delays when 234 135 Padua dealing with construction permits. In 230 75 Italy, Bologna is a positive example. Its Potenza 208 website provides detailed information on 90 Campobasso each requirement. Municipalities should 207 120 also provide an online tool to calculate Turin 198 120 the fees related to the building permit Bologna 164 (Contributo di Costruzione). Milan already 30 Milan provides this service. Other cities should 151 0 50 100 150 200 250 300 350 follow suit. Time to obtain a permesso di costruire (or equivalent) Time for dealing with construction permits Source: Doing Business database. 30 DOING BUSINESS IN ITALY 2013 FIGURE 4.6 High costs to obtain a building in Catanzaro became unpopular because declaration certifying that the project permit professionals did not understand how to abides with public health requirements use it. In Piedmont—where the regional (Autocertificazione). Later on, if the project 13% Other government, municipalities and profes- does not meet such requirements, the oc- costs 87% sional associations have worked together cupancy certification will not be issued. Building permit fees since the developing stage and proper training sessions were set up—the online In most of the cities, such regulation cur- platform MUDE has been a success. rently applies only to residential buildings. In Padua, it applies also to simpler com- Provide guidelines and promote mercial buildings. Limiting the prelimi- Source: Doing Business database. inter-agency working groups nary authorization by the public health Across Italian cities, the complexity of agency to more complex projects could building regulations is a challenge not free up resources to focus on high-impact Extend online submission of or hazardous structures. only for private sector professionals, but applications across cities and also for public officials. Public servants regions Make the occupancy certificate are not always able to clear up doubts Online applications reduce delays. Not effective immediately after on regulations brought up by develop- only are they faster, they also limit the its filing ers, architects or engineers. As a result, frequency of interactions with officials, there is a lot of uncertainty. Guidelines Once all the required documents are reducing the potential for under-the-table that clearly explain how to interpret the properly filed, the municipalities of transactions. regulations should be made available to Bologna and Cagliari grants the occu- the public. pancy permits immediately. Random, ex- The Piedmont region’s MUDE system post inspections are performed to check for the electronic submission of building Currently, representatives from the vari- that the constructions are in compliance. approvals is the most advanced system ous agencies involved in the permitting In the other cities, where random controls in Italy.14 MUDE not only facilitates process have few occasions to meet. are performed before the occupancy online applications for entrepreneurs, Meeting more regularly could help them permit is granted, the same process can it also allows municipalities to interact reach a common understanding regard- take as long as 30 days, after which a directly with the cadaster and the land ing specific requirements and standard “silence-is-consent” formula is applied. registry (Agenzia del Territorio) for build- operating procedures. In 2007, the Hong These cities should follow the example of ing registration and taxation issues. Set Kong (China) local government launched Bologna and Cagliari, where the ex-post at the regional level, MUDE streamlined its successful “Be a Smart Regulator” controls guarantee the same level of the building-approval process for 105 program. Under this program, several safety and the process is faster. municipalities. Following this example, requirements to obtain a construction computerization should be accelerated license were either eliminated or ex- and implemented across other cities and pedited. This was achieved by creating NOTES regions in Italy. Italian cities should also working groups with the agencies and 1. Moullier, Thomas. 2009. Reforming follow the examples of global leaders in bureaus involved in the construction Building Permits: Why Is It Important and this area, such as Singapore. What Can IFC Really Do? Washington, D.C.: area. These groups found redundant International Finance Corporation. procedures, improved communication 2. OECD. 2010. “Construction Industry.” In Singapore, qualified professionals can and coordination schemes, and identified OECD Journal of Competition Law & Policy submit structural plans through an online simple regulatory changes that could be 10 (1): 156. platform that allows authorities to check implemented to create a more efficient 3. OECD. 2008. Policy Roundtables— in an efficient manner if structural plans construction process. Construction Industry. Paris: OECD. are correct and prepared with high safety http://www.oecd.org/dataoecd/32/55/ standards, eliminating, for example, Substitute the clearance on 41765075.pdf the need for inspections for low-risk the conformity with health and 4. PricewaterhouseCoopers. 2005. buildings. “Economic Impact of Accelerating Permit hygiene regulations with a self- Processes on Local Development and To successfully introduce online applica- certification of compliance Government Revenues.” Report prepared tions, training should be provided. Without The national law establishes that ac- for the American Institute of Architects, credited professionals can substitute Washington, DC. training, users can become frustrated. a preliminary clearance from the 5. INAIL (Istituto Nazionale per For example, over the past few years, an l’Assicurazione contro gli Infortuni sul online system for seismic authorizations public health agency with a written Lavoro). 2011. Rapporto annuale 2010 con DEALING WITH CONSTRUCTION PERMITS 31 analisi dell’andamento infortunistico. Milan: 10. The Decree No. 380 of 2001 sets geological and geotechnical reports, INAIL. shorter time limits for the issuance of the the heating systems and energy saving 6. Transparency International. 2011. building permit for cities below 100,000 projects, as well as urbanization and Corruption Perceptions Index 2011. Berlin: inhabitants. construction fee calculations. Transparency International. 11. Attached documents must include 12. Decreto Legge No. 70 of 13 May 2011 sets 7. Decreto del Presidente della Repubblica official proof-of-ownership, construction a time ceiling of 150 days for cities with No. 380 of 6 June 2001. drawings, a report signed by a registered over 100,000 inhabitants. Within the architect or engineer guaranteeing first 60 days municipalities can interrupt 8. Because Campobasso, Catanzaro, compliance of the planned building with the process to request additional docu- L’Aquila, Naples, Potenza, and Rome the town planning rules, construction ments or modifications to the project. are classified with high seismic risk, a regulations, safety norms, public health 13. Bayerisches Staatsministerium des seismic authorization must be obtained. requirements, plus sufficient technical Innern. 2002. In cities where the seismic risk is lower, documentation to allow proper evalua- it is sufficient to submit the structural 14. “Modello Unico Digitale per l’Edilizia.” tion of the impact on the landscape. The project before starting construction. applicant must also submit the structural 9. Legge Regionale No. 3 of 5 March 2008. engineering project together with the 32 Registering property The importance of registering property buildings accounting for between half was recognized early on in Italy. In 1427, and three-quarters of the wealth in most the city of Florence introduced one of the economies, having an up-to-date land first modern land registration systems: information system clearly matters.3 households were to declare their posses- sions, including land and real estate. From The benefits of land registration go be- then on, authorities were able to levy yond the private sector. For governments, taxes based upon hard data regarding having reliable, up-to-date information in each family’s wealth. Relieving artisans cadastres and land registries is essential and traders from the burden of arbitrary to correctly assess and collect tax rev- taxation fostered their entrepreneurial enue. With up-to-date land information, spirit, thereby contributing to ensuring governments can map out the varying the city’s wealth for hundreds of years. requirements of their cities and strategi- cally plan the provision of services and infrastructure in the areas of each city WHY DOES PROPERTY where they are most needed.4 Land infor- REGISTRATION MATTER? mation can also help in planning the ex- Registered property rights are neces- pansion of urban areas. This is especially sary to support investment, productivity important in economies prone to natural and growth.1 Evidence from economies disasters, such as Italy.5 around the world suggests that property owners with registered titles are more likely to invest. They also have a better WHAT DOES REGISTERING chance of getting credit, because prop- PROPERTY MEASURE? erty can serve as collateral.2 Cadastres, Doing Business records the procedures together with land registries, are tools necessary for a business to purchase used around the world to map, prove a property from another business and and secure property rights. These insti- to transfer the property title to the tutions are part of the land information buyer’s name (figure 5.1). The process system of an economy. With land and starts with obtaining the necessary FIGURE 5.1 What are the time, cost and number of procedures required to transfer property between 2 local companies? Cost (% of property value) Buyer can use the property, resell it or use it as collateral Procedures Land & 2-story warehouse Seller with property registered and no title disputes Time Preregistration Registration Postregistration (days) REGISTERING PROPERTY 33 documents—such as a copy of the sell- FIGURE 5.2 Registering property in Italy is less cumbersome, faster and less expensive than er’s title—and conducting due diligence, in many EU economies if required. The transaction is considered complete when it is opposable to third 8 Belgium, 110 Slovenia 12.7 Belgium parties and when the buyer can use the France property as collateral for a bank loan or resell it. 6 United 64 Belgium 7.3 Portugal Kingdom 59 France 7.1 Spain HOW DOES REGISTERING PROPERTY WORK IN ITALY? 6.1 France, 5 EU average, 40 Germany Netherlands Registering property across the 13 Italian Bari, Cagliari, Germany, 5.7 Germany Campobasso, Netherlands, cities measured takes an average of 4 Catanzaro, 29 United Slovenia, procedures, 18 days and costs 4.4% of L’Aquila, Spain Kingdom Padua, 28 EU property value—considerably better than Potenza 4 4 United average 4.7 United States Kingdom the European Union average of 5 pro- Rome 24 Rome 4.5 4.6 EU average, 21 Austria 4.4 Austria cedures, 27 days and 4.6% of property Italy— Catanzaro 4.3 13-city value (figure 5.2). average 18 4.0 Finland Bologna, 3 3 Austria, Milan, Finland 14 Finland 3.5 United Compared globally with 185 economies, the Naples, Bologna, 13 13 Spain States Palermo, Naples, 12 United 2.0 Slovenia average Italian city would rank 35th on the Rome, Turin Palermo, States ease of registering property, as measured 7 Netherlands 2 Georgia by Doing Business. That is ahead of the 1 Georgia, 0.1 Georgia Portugal 1 Portugal United Kingdom (73) and Germany (81), Procedures Time Cost but behind Switzerland (15) and Portugal (number) (days) (% of property value) (30). In Georgia, the best performer glob- Source: Doing Business database. ally, the process takes just 1 procedure, 2 days and costs 0.1% of property value. records started in the early 1990s and the done through a single electronic transmis- In the city of Bologna, the best performer cadastral system is now fully computerized. sion (adempimento unico telematico): taxes in Italy, transferring a property title requires The land agency (Agenzia del Territorio), are credited directly to the tax agency while just 3 procedures, 13 days and a cost that the public agency that controls both the the deed of sale is recorded in the property comes to 4.4% of property value (table 5.1). cadastre (Catasto) and the property regis- registry of the land agency and, once the If Bologna were to represent Italy for the try (Registro Immobiliare), is a centralized Head of the Registry (Conservatore) of- ease of registering property, as measured institution with local branches in each ficially acknowledges the transfer, it is by Doing Business, it would rank among the province. In spite of this uniformity, notable automatically registered in the cadastre 30 easiest economies in the world. local variations persist among cities. (voltura catastale). In the cities where this efficient system is not yet implemented, In Italy, the laws and regulations that ap- Pre-registration procedures are identical the notary can register the transfer with ply to the transfer of property are set at throughout the country. Before initiating the tax agency on-line but must complete national level. The digitization of cadastral the transfer of property, the seller must the registration with the property registry obtain an energy certificate (attestato di at the land registry in person by submit- certificazione energetica—ACE). Prepared ting paper copies of the deed of sale and TABLE 5.1 The ease of registering property across 13 Italian cities by a licensed professional (certificatore), transfer note (atto di vendita and nota di RANK City RANK City the ACE ascertains the levels of energy trascrizione). Once these documents have 1 Bologna 7 Bari consumption of the building and must be been submitted, she has to wait for the 2 Palermo 9 Turin referenced in the deed of sale.7 Once the transfer note to be returned to her together 3 Campobasso 9 L’Aquila ACE has been obtained, the notary carries with a certificate that all administrative re- out the necessary due diligence, drafts quirements have been carried out (duplo). 3 Naples 11 Potenza the deed of sale, executes it (rogito) and 5 Catanzaro 12 Padua receives the corresponding payments. Registering property is relatively fast 6 Cagliari 13 Rome across Italian cities. Advanced digitiza- 7 Milan Registration procedures vary depending tion of data in public agencies and profes- Note: Rankings are based on the average city percentile rankings on the procedures, time, and cost to register on the city. In Bologna, Palermo, Milan, sional services involved in the process property. See Data notes for details. Naples, Rome and Turin, the registration helped speed up the process. The online Source: Doing Business database. with the tax agency and the land agency is 34 DOING BUSINESS IN ITALY 2013 platform set up by the notary association in Catanzaro to €5,084 in Turin. The registries takes only about half as much (notartel) allows notaries to carry out the recent abolition of minimum fees for time on average as in economies with necessary due diligence by accessing notary services—introduced by Decree paper records.8 the databases of the cadastre, company no. 1 of January 24, 2012 (Decreto “Cresci and land registries in a matter of minutes Italia”)—is yet to produce results. As of All Italian cities measured in this report al- without interacting in person with any June 2012, notaries continued to set their ready use electronic records. Information public official from the involved agen- fees using the old Ministerial Decree is available online and the necessary cies. When the intervention of a public of November 27, 2001, and the pricing checks and verifications that precede the official is necessary—as in the case of the guidelines of local notary chapters as execution of the deed of sale do not require registration of the deed of sale with the points of reference. any personal interaction between notaries property registry of the land agency—re- and public officials. Furthermore, local au- sponse times are usually fast and can take thorities in Bologna, Palermo, Milan, Rome WHAT TO REFORM? as little as 1 day. and Turin recently aligned themselves Implement the single with some of the best practices in the electronic registration In Bologna, Naples and Palermo, all neces- world—Norway and New Zealand—cre- platform “Adempimento Unico sary steps can be carried out in just 13 ating a full-blown electronic registration Telematico” in all cities days—faster than in Japan (figure 5.3). platform for property transfers. Thanks In Padua and Rome, where the process Digital property records have advantages to the recently introduced Adempimento is more time consuming, it takes 10 days over paper records. They take up less Unico Telematico, all the necessary infor- longer with 23 and 24 days, respectively. space, and backup copies ensure that mation can now be sent through a single Differences in delay are mainly explained records will not be compromised in the transmission to the tax agency, property by the time required to issue the energy event of natural disasters or tragic events. registry and cadastre. Once this has been certificate (ACE) and draft and execute Electronic systems also make errors and done, registration procedures can take as the deed of sale. In Palermo, the energy ef- duplicate titles easier to spot. Transferring little as 1 day. This new system should be ficiency certificate can be obtained in only property in economies with computerized 3 days. In Catanzaro, Padua and Potenza, it takes more than 3 times longer. Similarly, FIGURE 5.3 Registering property in Bologna, Naples or Palermo is faster than in Japan the drafting and execution of the deed takes 4 days in Bari, while it takes 11 days in Time (days) Rome and Milan, the 2 largest Italian cities. Portugal 1 Energy Certificate (ACE) United States 12 Notary conducts due diligence on the property There is little variation in the cost of reg- transfer, drafts and executes the deed of sale Bologna 13 and processes payment istering property across Italy: costs vary Naples 13 Registration with Tax Agency and Land Agency from 4.3% of property value in Catanzaro to 4.5% in Rome (figure 5.4). Over 92% Palermo 13 of the costs to transfer property are com- Japan 14 posed of fees and duties set at the na- Switzerland 16 tional level that equally apply to all cities. Cagliari 16 The entrepreneur wishing to transfer the 16 Campobasso property title of a commercial warehouse Canada 17 pays 3% of the property value as property Bari 17 registration tax (imposta ipotecaria) and Catanzaro 19 1% of the property value as cadastral tax Milan 19 (imposta catastale), €55 as title transfer fee (diritti di voltura), €35 as property Turin 19 registry duty (tassa ipotecaria), €168 as L’Aquila 20 registration duty (imposta di registro), and Austria 21 €230 as stamp duty (imposta di bollo). Potenza 22 Padua 23 Cost variations across cities are due to Rome 24 professional service fees. The cost to United Kingdom 29 obtain an energy efficiency certificate Germany 40 varies from €250 in Bari to €850 in Rome. Notary costs vary from €3,129 Source: Doing Business database. REGISTERING PROPERTY 35 FIGURE 5.4 Cost to register property is lower than the average for OECD high income economies 2. Galiani, Sebastian, and Ernesto Schargrodsky. 2009. “Property Rights for the Poor: Effects of Land Titling.” Switzerland 0.4 Total transfer taxes and registration fees Working Paper 7 (revised), Ronald Coase Denmark 0.6 Institute, St. Louis, MO. Total professional costs Norway 2.5 and certificates 3. World Bank. 1989. World Development Average of 31 OECD Report 1989. New York: Oxford University Ireland 2.5 high income economies Press. United States 3.5 4. Property information held in cadastres Finland 4.0 and land registries is part of the land Sweden information available to governments. 4.3 Land information also includes other Catanzaro (least expensive) 4.3 geographic, environmental and socioeco- Rome (most expensive) 4.5 nomic data related to land that are useful for urban planning and development. Austria 4.6 5. Located on the Eurasian and African United Kingdom 4.7 plate boundary, Italy is one of the Germany 5.7 countries with the highest seismic risk in the Mediterranean. Together with Japan 5.8 Iceland, Italy also has also the highest France 6.1 concentration of active volcanoes in Netherlands 6.1 Europe. It ranks among the first countries in the world in terms of number of Portugal 7.3 inhabitants exposed to volcanic risk. For Greece 11.8 more information, please visit: www. 12.7 protezionecivile.gov.it Belgium 6. Procedures for registering property are 0 2 4 4.5 6 8 10 12 14 partially different in Trentino Alto-Adige Cost (% of property value) and in some areas of Friuli Venezia Source: Doing Business database. Giulia, Veneto, and Lombardy that used to be part of the Austro-Hungarian Empire. None of these areas have been made available to other cities throughout economies, 8 have recently reduced taxes benchmarked in the present report. the country.9 or fees by an average of 3% of the prop- 7. Energy Certificates are valid for 10 years. erty value.11 Switzerland cut its transfer Additional information can be found in Lower property transfer costs tax in 2005, reducing the total cost to the Legislative Decree No. 28 of 3 March Property transfer taxes are an important 2011. register property from 1.4% to 0.4% of source of revenue for many governments. 8. World Bank. 2011. Doing Business 2012: property value—one of the lowest rates Doing Business in a More Transparent But when transfer fees and taxes are too in the world. World. Washington, D.C.: The World burdensome, even already registered Bank Group. properties may become informal again Public policy measures recently intro- 9. The extension of the Adempimento Unico if subsequent transactions are not reg- duced by the Italian government—such Telematico to all Italian provinces is cur- istered or reflect below market values. as the increase of the number of notaries rently planned for September 19, 2012. This not only weakens the protection of and the abolition of minimum fees for For more information, please visit: www. notary services—should increase com- agenziaterritorio.gov.it property rights, it also reduces potential petition and eventually contribute to a 10. World Bank. 2011. Doing Business 2012: revenue from property taxes. Doing Business in a More Transparent lowering of professional costs to register World. Washington, D.C.: The World In Italy, the transcription and cadastral property. Further drops could be achieved Bank Group. taxes alone amount to 4% of property by reducing property transfer taxes and 11. Australia by 2.3%, Germany by 0.5%, value. Additional state fees and duties, fees set at the national level. Hungary by 6%, Ireland by 7%, Israel by together with professional service fees, 2.5%, Poland by 1.1%, Slovak Republic by account for up to an additional 0.5%. 3%, and Switzerland by 1%. Only Sweden NOTES increased duties by 1.25%. Between 2004 and 2012, 57 of 183 economies tracked by Doing Business low- 1. For a summary of the relevant studies ered transfer taxes and other government on the subject see: Deininger, Klaus. 2003. Land Policies for Growth and Poverty fees—reducing the global average cost to Reduction. World Bank Policy Research register property by 4.2% of the property Report. New York: Oxford University value.10 Among the 31 OECD high-income Press. 36 Enforcing contracts “Milan alone has as many lawyers as the as creditors’ rights—help increase bank whole of France” is a curious fact com- lending only if contracts can be enforced monly mentioned by Italians. In reality Italy in the courts.4 has 4 times more lawyers than France. An abundance of legal professionals may be WHAT DOES ENFORCING one reason why litigation rates are higher CONTRACTS MEASURE? than in neighboring countries. Italian first Doing Business measures the time, cost instance courts receive 60% more new and procedural complexity of resolving a civil cases than French courts, and the commercial lawsuit between 2 domestic total backlog is about 3 times higher.1 businesses. The dispute involves the Unsurprisingly, big caseloads are matched breach of a sales contract worth twice by lengthy delays. the income per capita of the economy. The case study assumes that the court WHY DOES hears arguments on the merits and that COMMERCIAL DISPUTE an expert provides an opinion on the RESOLUTION MATTER? quality of the goods in dispute. This dis- Effective commercial dispute resolution tinguishes the case from simple debt en- has many benefits. Courts are essential forcement. The time, cost and procedures for entrepreneurs because they interpret are measured from the perspective of the the rules of the market and protect entrepreneur (the plaintiff) pursuing the property rights. Efficient and transparent standardized case through local courts courts encourage new business relation- (figure 6.1). ships because firms know they can rely on the courts if a new customer fails to pay. Speedy trials are essential for small FIGURE 6.1 What are the time, cost and enterprises because they may lack the number of procedures to resolve resources to stay in business while await- a commercial dispute through the courts? ing the outcome of a long court dispute. Court A study of 27 judicial districts in Italy found that, all other things being equal, Time where the backlog of pending trials is rela- Cost tively large, credit is less widely available, Number of procedures the average interest rate is higher and the default rate is higher.2 Confartigianato, Company A Commercial dispute Company B the Italian confederation of craft workers, (seller & plaintiff) (buyer & defendant) estimates that in 2007 lengthy court proceedings cost businesses €2.3 bil- Filing of Trial & court case judgment Enforcement lion.3 Another study in Eastern Europe shows that reforms in other areas—such ENFORCING CONTRACTS 37 HOW DOES IT WORK IN TABLE 6.1 Where is it easier to enforce a Article 6 of the European Convention on ITALY AND HOW DOES ITALY contract—and where not? Human Rights establishes that everyone COMPARE GLOBALLY? RANK City RANK City is entitled to a fair trial within a “reason- Enforcing a contract in the 13 cities 1 Turin 8 L’Aquila able time,” which has been defined as 3 measured takes on average 41 procedural 2 Naples 9 Palermo years by Italian jurisprudence. In 2008, steps that last 1,400 days and cost 26.2% 3 Potenza 10 Milan the European Court of Human Rights of the claim value. Italian cities lag behind 4 Rome 11 Bologna in Strasbourg found Italy in violation of other economies in the European Union, 5 Cagliari 12 Padova Article 6 for lengthy court proceedings 53 where on average it takes 32 procedures 5 Campobasso 13 Bari times—only Turkey was found in violation and 547 days, and costs 21.5% of the 7 Catanzaro more often.8 Back in 2001, Italy passed claim value (figure 6.2). The average Note: Rankings are based on the average of city the Pinto Act introducing the right to lodge percentile rankings on the procedures, time and cost to Italian city would thus rank 155 out of a complaint against excessively long resolve a commercial dispute through the courts. See the 185 economies measured by Doing the Data notes for details. proceedings.9 But the problem was not Source: Doing Business database. solved. With the exception of Turin, civil Business. Yet, there are strong variations across locations. Enforcing contracts is proceedings still take longer than 3 years. easier in Turin, where it takes 855 days is the main bottleneck. Judges have a As a result of a large number of com- and costs 22.3% of the claim value (table statutory time limit to issue the judgment plaints, the Italian Public Administration 6.1). It is more difficult in Bari, where it after the last hearing, but since they was condemned to pay over €300 million takes more than twice as long and costs need to decide on many cases and have in damages between 2001 and 2009.10 much more: 2,022 days and 34.1% of the little administrative support, they usually adjourn the last hearing for a period of 5 One explanation for such lengthy trials claim value. months up to 3 years. Enforcement is also may be that Italian judges face more cases Italy has a civil law system. Jurisdiction time-consuming. The plaintiff needs to than their European peers—in 2008 for is determined on the basis of the claim initiate a separate enforcement procedure example Italy faced 55% more incoming value. Cases above €5,000 are heard (processo di esecuzione mobiliarie). Public civil and commercial cases per judge than by a court of first instance; cases below sales are semi-privatized through regis- France and 39% more cases per judge that threshold are heard by a small claims tered professionals supervised by a public than Spain.11 But how each court man- court (giudici di pace). There is no distinc- institution (Istituti Vendite Giudiziarie).7 ages its cases and deals with the backlog tion between commercial and civil law, since both codes were merged in 1942, FIGURE 6.2 Enforcing contracts in Italy compared globally and there are no specialized commercial courts.5 The total number of procedural steps for ordinary proceedings6 is 41—the 51 Timor-Leste Bari 2,022 163.2 Timor-Leste same for all Italian courts, since the same laws regulate them. Although legal rules are common across all cities, court ad- Italy— 13-city 1,400 Bari 34.1 ministration varies as it is the prerogative average 1,290 Slovenia of the head of each court. Italy 41 1,285 Timor-Leste 40 Spain Enforcing a contract in Italy is slow. In 26.2 Rome it takes 1,210 days—among the 20 Turin 855 slowest of the 185 economies measured 32 EU average, 21.5 EU average in Doing Business, and only faster than Portugal, Potenza 20.5 Slovenia 547 EU average, Slovenia among EU economies. The 30 Germany Portugal 29 France 17.4 France same process takes 390 days in France, 510 Spain 17.2 Spain 394 days in Germany, and 510 days in 26 Luxembourg 394 Germany Spain. In addition, there is considerable 390 France 14.4 Germany 13.0 Portugal variation within Italy: from 855 days in 12.7 Slovenia Turin to 2,022 days in Bari (figure 6.3). Most delays occur during the trial stage, 321 Luxembourg 9.7 Luxembourg which takes anywhere from almost 2 Procedures Time Cost years in Turin to almost 4 years in Bari. (number) (days) (% of claim value) The adjournment of the last hearing Source: Doing Business database. 38 DOING BUSINESS IN ITALY 2013 FIGURE 6.3 It is faster to enforce a contract in Turin discussions in legislature to restructure the judiciary and eliminate smaller courts. Turin 26 622 207 855 Filing and service period Trial and judgment period Rome 40 900 270 1,210 Individual courts are also experimenting Enforcement period Naples 27 900 353 1,280 with new solutions to reduce delays. The Milan 25 835 431 1,291 Court of Naples was reorganized in 2009, Campobasso 28 1,019 291 1,338 separating criminal and civil jurisdictions Bologna 29 1,097 221 1,347 and increasing the specialization of each Palermo 40 798 527 1,366 section by subject matter. Milan is making Catanzaro 26 1,055 346 1,427 use of information and communication L'Aquila 14 1,119 302 1,435 technologies (ICT)—such as online com- Potenza 22 1,221 218 1,461 munications and electronic filing of docu- Cagliari 23 1,144 340 1,507 ments by the parties (box 6.1). To address Padua 28 1,309 328 1,665 staff limitations, several courts are piloting Bari 25 1,427 570 2,022 the recruitment of apprentices to support 0 500 1,000 1,500 2,000 judges in preparing and managing cases. Time (Days) Source: Doing Business database. The average cost to enforce a contract in the Italian cities measured is 26.2% of the claim value—that is among the highest matters. In 2001, the president of Turin’s costs in the EU. To compare, enforcing a court launched the Strasbourg Program, an ambitious plan to reduce backlog and eliminate all cases not resolved after 3 BOX 6.1 THE COURT OF MILAN AND THE USE OF INFORMATION AND COMMUNICATION or more years. The president gave three TECHNOLOGIES (ICT) main instructions to judges and registrars: Although Italian courts all have an online registry known as PolisWeb, which allows lawyers to track progress of their cases via internet, the use of ICT solutions varies 1) prioritize older cases, 2) classify and across Italian courts. The Ministry of Justice has developed software for judges to ac- physically label all cases (targatura) by the tively manage their caseload—Consolle del Magistrato and MAG-office—but it is still not originating date, and 3) follow a “first in, in widespread use. In some courts, such as in Potenza, judges rely on registrars to use first out” approach. He issued 20 guide- the electronic system, as they are unable to access it. lines encouraging judges to take an active The Court of Milan is the most advanced in the use of ICT. In 2006, the Court of role during proceedings. The guidelines Milan and 5 other courts launched a pilot online civil trial for injunction orders (decreti ingiuntivi). promote the use of short and concise By 2011, 62% of Milan’s injunction orders were made online—the highest ratio in judgments, agreement on a timetable the country. Since then, the time to obtain an injunction order was cut from 50 days to or calendar for the case during the first just 15 days, providing substantial relief in a very busy court. In 2011 alone, Milan had hearing, inadmissibility of unsubstanti- 42,256 injunction orders and 59,062 ordinary civil trials.1 ated adjournments, shorter adjournments, The Court of Milan is also the first Italian court to offer online communications be- and oral hearings as opposed to written tween the court and the parties. Since 2010, all communication from the court to the exchanges. Establishing individual goals parties is conducted by e-mail. Milanese judges are actively issuing judicial orders and judgments online, and the court is now piloting the e-filing of court documents by law- and monitoring judges’ performance can yers. The online trial has been estimated to save the Court of Milan €1 million per year, produce positive results as well. By 2010, as well as saving time. But the introduction of the online civil trial requires more than cases older than 3 years represented less technology. The Ministry of Justice and the Court of Milan have also spent substantial than 5% of the court’s caseload. Turin’s resources training judges and court officers as well as actively involving external stake- example did not go unnoticed. In July 2011 holders—such as the university and the lawyers association (Ordine degli Avvocati). Italy’s Ministry of Justice decided to roll out The impact of ICT solutions will ultimately depend on whether lawyers use them. As the use of new technology varies from one court to another, the number of lawyers this approach and mandated that all courts registered for online services also varies significantly between cities. Adoption rates submit plan to reduce their backlogs.12 vary from 61.1% and 56.4% of lawyers in Padua and Turin, respectively, to just 2.3% and 1.1% in Palermo and Campobasso, respectively.2 It recently became mandatory In 2012, the latest initiative to improve for lawyers to have an electronic certified e-mail address (Posta elettronica certificata), the court system mandates the creation but courts need to actively engage with lawyers’ associations to encourage the use of of “companies courts” (tribunale delle online systems in practice. imprese)—which will hear corporate, anti- 1 Statistics provided by the Court of Milan. trust, intellectual property, and public pro- 2 Statistics provided by the Ministry of Justice, Dipartamento Generale dei Sistemi Informativi curement cases.13 There are also ongoing Automatizzati. Processo Telematico. June 2011. ENFORCING CONTRACTS 39 contract costs just 9.7% of the claim value electronically. Backlogs in Malaysia’s introducing mediation, increasing court in Luxembourg, 14.4% in Germany and Sessions Courts were reduced by more fees, and limiting claims against the 17.4% in France (figure 6.4). Legal fees than 50% between 2009 and 2011, either Social Security Administration. Reducing are the largest component of the cost in through the resolution of cases or identi- the case backlog would also ease the Italy at 17.2% of the claim value. That is fication of inactive cases.17 burden on judges, thereby speeding up significantly higher than the share of legal proceedings. Following Turin’s example, fees in Germany (6.6%), France (10.7%) Case management systems should be pro- all courts are now required to submit and Spain (12.7%). Until recently, Italy’s moted, replicating existing good practices their own targets and track progress.19 attorney fees were subject to a national and tools. The case management software The Ministry of Justice and the Consiglio professional fee schedule. In March 2012, developed by the Ministry of Justice Superiore della Magistratura should closely this schedule was abolished.14 The effects (Consolle del Magistrato and MAG-office) monitor to see if courts are abiding by are yet to be seen. But even under the ap- allows a judge to track his or her cases their plans. plication of the professional fee schedule, and manage hearings, notifications and attorney fees vary significantly by region.15 judgments. As of 2012, it is only used by Macedonia, FYR, faced a similar issue and Hiring an attorney is generally more ex- some judges. It should be expanded to all introduced bold measures to tackle case pensive in the northern cities. An attorney courts, accompanied by training programs backlogs. The number of cases pending typically may cost twice as much in Milan for judges and registrars. Additionally, for more than 3 years was reduced by as in Potenza. Court fees are regulated Turin’s guidelines could be replicated, 46%. Litigants in longstanding disputes nationally by the Ministry of Justice and encouraging judges to establish a calen- were summoned to appear in court on there are no significant differences in court dar for each case at the first hearing and set days and if neither appeared, the case and enforcement costs across cities and limiting adjournment periods. Another ap- was dismissed. As a result of this reform, regions. proach is to have support staff dedicated the time to enforce a contract in court to case management, as seen in Milan and dropped from 509 days to 385 days.20 Campobasso. These courts have created In Colombia, one of the main causes of WHAT TO REFORM? an “office of the judge” (ufficio del giudice) backlogs was the high percentage of inac- Promote case management staffed with trainees whose role is to sup- tive cases due to inactivity by either party. systems and monitor port judges in preparation for hearings and To address this problem, the legislature performance judgments, monitor the development of issued a law in May 2008 that sets forth Judicial case management systems are cases, and categorize hearings by subject mechanisms for judges to dismiss cases effective tools to reduce procedural delays matter or procedural type. whenever there is no activity on behalf of at court and to monitor the performance the parties. As a result of the application of judges and court officers. By analyzing Continue to reduce the case of this law, judges in 150 municipal courts court workloads, computerized case- backlog in courts in Colombia dismissed almost 32,283 management systems can help predict The number of pending cases across Italy cases.21 Furthermore, in civil courts—at trends and allocate resources strategical- has doubled over the past 20 years.18 The the municipal and circuit level—a total of ly. Case management systems are preva- government has launched several initia- 43,948 cases were dismissed as of June lent in two-thirds of OECD high-income tives attempting to reduce the number 2009—that is, 12.2% of the total inven- economies, and are increasingly being of new cases. These initiatives include tory of inactive cases.22 adopted in more economies.16 In 2009, Malaysia introduced a case management system that sorts cases into 2 tracks by FIGURE 6.4 Attorney fees across Italian cities are higher than in other EU economies level of complexity, and the commercial Italy (average) EU Germany division of the Kuala Lumpur high court Total cost: Total cost: Total cost: was reorganized. Judges’ performances 26.2% of claim value 21.5% of claim value 14.4% of claim value were closely monitored; at the same time they received more training and were 4.1% 4.2% 2.4% encouraged to play a more active role in 4.9% 17.2% 4.4% 12.9% 6.6% addressing cases. Efficiency improved. In 5.4% addition, a case management system is helping to optimize judges’ schedules by enabling registrars to use a digital planner Attorney Court Enforcement to schedule hearings at a judge’s earliest availability. The system is also allowing Note: Italy costs are calculated as the average of the 13 cities measured. Source: Doing Business database. judges to access the minutes of each case 40 DOING BUSINESS IN ITALY 2013 Expand online filing and new cases (casi pervenuti) of the 8 court 6. The case study measured by Doing the use of ICT sections that hear civil cases increased Business would fall under ordinary proceedings (processo ordinario). The The online civil trial (processo telematico) by 11%.24 Specialization should be encour- injunction order (decreto ingiuntivo) is a has proved successful in Milan for injunc- aged across all courts. common procedure for debt recovery, but tion orders (decreto ingiuntivo) and is it assumes the case can be decided upon Eighty-seven of the 185 economies cov- documentary evidence. If the defendant being rolled out throughout the country. It ered by Doing Business have a specialized or debtor opposes to the injunction order, could be expanded to cover ordinary pro- she becomes the plaintiff and an ordinary commercial court, a specialized section or ceedings—allowing for electronic filing, case is initiated. See Data notes for the specialized judges that solely hear com- electronic communications between the definition of procedural steps and the mercial cases within a general civil court. parties and the court, electronic exchange case study. Studies have found that specialized courts of official documents and other features. 7. Decree of February 11, 1997, No. 109. tend to improve efficiency.25 Creating spe- Ministero di Grazia e Giustizia. A strong communications campaign will cialized commercial courts can result in 8. Evaluation report of European judicial be essential to bring lawyers on-board. faster and cheaper contract enforcement. systems by the European Commission One reason for the greater efficiency is for the Efficiency of Justice (CEPEJ). Sixteen economies globally allow the that judges become experts in handling 2010. France. Council of Europe. electronic filing of commercial complaints commercial disputes. Commercial courts 9. Law No. 89 of 24 March 2001. with some associated automation of case often have fewer formal procedures and 10. Barbuto, Mario. Legge & Management, processing by the court. The Republic of l’organizazzione della giustizia in Italia in Korea is a good example. Since 2006, use oral arguments to facilitate swifter una nuova prospettiva. May 2011. Forli. Korea has expanded the use of electronic case disposal—even in court systems that 11. Estimates refer to civil and commercial solutions in its courtrooms, or “e-courts.” have traditionally not used oral processes. cases reaching courts of first instance Judges have benefited from information Analysis of Doing Business data shows that in 2008. Spain had 1,620,717 cases and technology systems allowing better commercial disputes are resolved up to 5 4,836 judges. France had 1,744,350 months faster, on average, in economies cases and 5,819 judges. Italy had access to electronic records and the abil- 2,842,668 cases and 6,109 judges. ity to record trial procedures. Since May with specialized commercial courts or sec- Evaluation report of European judicial 2011, lawyers have been able to electroni- tions than in those without them.26 systems by the European Commission cally file the initial complaint in a case for the Efficiency of Justice (CEPEJ). before the main civil courts, including the 2010. France. Council of Europe. NOTES 12. Decreto Legge of July 6, 2011 (which Seoul West district court. Thanks to the 1. Le verità dell’Europa sui magistrati Italiani: modifies Art. 37 of Legislative Decree of e-court program, legal documents can be July 8, 2003). Dossier a cura dell’Associazione Nazionale submitted through the court’s website, Magistrati. The document is available at 13. Decreto Legge of January 24, 2012, No. 1, judgments can be delivered electroni- http://www.associazionenazionalemag- Disposizioni urgenti per la concorrenza, lo cally, and court records—including judg- istrati.it sviluppo delle infrastrutture e la competi- ments—can be consulted remotely. This 2. Jappelli, Tullio, Marco Pagano and tività, modifies the Legislative Decree electronic filing system will be expanded Magda Bianco. 2005. “Courts and Banks: ofJune 26, 2003, No. 168, regarding Effects of Judicial Enforcement on Credit special sections. The legal reform was to bankruptcy, family law and public ad- Markets.” Journal of Money, Credit, and approved into law in March 2012 (Law ministration cases.23 Banking 37 (2): 223–44. No.27, Official Gazette No.71, March 24, 3. I costi e tempi della giustizia. 2012). “Companies courts” expand the Encourage specialization Confartigianato. Roma. May 12, 2009. competencies of existing specialized within courts Elaborazione Flash. The estimated cost sections, which today hear intellec- for companies due to delays of the tual property matters and exist in some The degree of specialization within courts justice system is based on the financial courts, like in Milan. varies significantly across cities. Some cost of disputed credits and the value of 14. Decreto Legge. of January 24, 2012, No. courts have a section for intellectual assets under an insolvency proceeding. 1, approved into law in March 2012 (Law property cases (sezione specializzata pro- 4. Safavian, Mehnaz, and Siddharth No.27, Official Gazette No.71, March prietà industriale), and an ongoing reform Sharma. 2007. “When Do Creditor Rights 24, 2012). This reform expands on the aims to expand these sections to cover Work?” Journal of Comparative Economics “Bersani Law of 2006,” which allowed 35 (3): 484–508. World Bank. 2007. parties to establish an agreement below additional corporate matters, calling them the minimum tariff. tribunale delle imprese. Until recently, 5. There are specialized court sections for other matters, like intellectual property 15. The professional fee schedule for judges in Naples heard both criminal and attorneys allowed for some flexibility. It or industrial rights. A recent reform civil cases. A reform in 2009 separated intends to expand these sections to was divided into activities and services, both jurisdictions and reorganized sec- cover corporate, anti-trust and public with fixed and variable costs for each. tions by subject matter. Since then, the procurement disputes. But these court What attorneys charge in practice varies sections will not be competent to hear from one city to another, resulting in ratio of resolved cases (casi definiti) to general commercial matters. significant variation. ENFORCING CONTRACTS 41 16. World Bank. 2011. Doing Business in 2012: 23. World Bank. 2011. Doing Business in 2012: The World Bank Research Observer, vol. 18, Doing Business in a More Transparent World. Doing Business in a More Transparent No. 1 (Spring 2003), pp. 61–88. Washington, D.C.: World Bank Group. World. Washington, D.C.: World Bank 26. Differences are statistically significant 17. Ibid. Group. at the 99% level after controlling for 18. Statistics provided by the Ministry of 24. Data provided by the Court of Naples income per capita. Justice. May 2012. statistics unit. Productivity is defined as the number of cases resolved (through 19. As of July 2011 per Art. 37 of Decreto judgment or other outcomes) divided by Legge of July 6, 2011 the number of new cases. Civil sections 20. World Bank. 2006. Doing Business 2007: include sections 2-4, 6, 8, 10-12. The How to Reform. Washington, D.C.: World period of time observed is 2008-2011. Bank Group. The reform took place in the middle of 21. World Bank. 2009. Doing Business in 2009. Colombia 2010. Washington, D.C.: World 25. Botero, Juan Carlos, Rafael La Porta, Bank Group. Florencio López-de-Silanes, Andrei 22. Ibid. Shleifer, Alexander Volokh et al. 2003. 42 Trading across borders Three major trade routes cross Italy, con- trade flows mean more goods crossing necting Eastern Europe, East Asia and borders are subjected to customs proce- North Africa to the markets of Western dures. National administrations are trying Europe. This strategic location has made to cope efficiently with the larger volume Italian ports the natural logistics gateway of traffic. Globalization and international in the Mediterranean for centuries. competition have also increased the Maritime trade is, thus, an important complexity of modern trade dynamics. pillar of the Italian economy. In 2009 Tying up imported or exported goods at the national maritime sector contrib- the border for days due to unnecessary or uted 2.6% to the gross domestic product, over-complicated trade procedures and generating €39.5 billion and employing requirements hurts businesses.5 more than 213,000 workers.1 The Italian port system also plays a primary role in Trade inefficiencies also increase domes- the country’s complex logistics network tic prices while restricting businesses through strong complementarities with from exporting abroad. Recent research other transportation methods.2 In 2008 shows that each day a product is delayed about 290 million tons of goods were in transit reduces trade by at least 1%.6 handled by Italian ports, 100 million Another study shows that reducing trade tons were transported on wheels and 16 costs by 50% could increase global trade million tons by rail.3 The multiplier ef- in manufacturing by up to $377 billion a fect triggered by trade-related activities year, and it could provide triple the ben- is even larger. A recent study on Italian efits to consumers in the form of tariff ports estimated that a €100 increase in reductions.7 demand can generate €224 of national income. Moreover, employing 100 new WHAT DOES TRADING ACROSS workers in the maritime sector generates BORDERS MEASURE? demand for 241 additional workers in the Doing Business measures the time and national economy.4 cost (excluding tariffs) associated with exporting and importing a 20-foot con- WHY DOES TRADING ACROSS tainer by sea transport and the number BORDERS MATTER? of documents necessary to complete the International trade has increased rapidly transaction (figure 7.1). The indicators over the last decade. Multilateral trade- cover documentation requirements and liberalization agreements have reduced procedures at customs and other regula- trade tariffs and trade quotas. At the same tory agencies as well as at the port. They time, moving high-volume manufacturing also cover logistical aspects, including the to low-cost countries outside Europe and time and cost of inland transport between the economic development of the Balkans, company warehouses and traders’ ports. Eastern and Southern Europe have also increased the importance of Italy as a transit and distribution hub. Increased TRADING ACROSS BORDERS 43 FIGURE 7.1 What are the time, documents and cost to export and import a 20-foot container by also provide trade-related services—such sea transport? as distribution centers, warehouses and insurance, and finance. The gateway ports included in this study are Genoa, Naples and Trieste. Transshipment and regional Time Time ports, on the other hand, mainly focus Cost Cost on transshipment activities—whereby To export To import Documents Full, 20-foot container Documents containers are shipped and reloaded to different vessels at a hub port—and on Import regional trade. The transshipment ports in this study are Catania, Taranto, Gioia Tauro and Cagliari. Transshipment ports play a Export key role in supplying regional markets and Port and terminal Customs and Inland connecting local entrepreneurs to national handling border agencies transport markets. In these ports, the share of con- tainers that are exported and imported to an overseas port directly is significantly HOW DOES TRADING ACROSS delle Dogane—a central agency under the lower than in gateway ports. Moreover, BORDERS WORK IN ITALY? Ministry of Economy and Finance. The the total number of containers handled is Italy has more than 4,600 miles of Agenzia delle Dogane employs a risk-man- usually higher in gateway ports.9 coastline and for centuries—before the agement platform allowing electronic data country was unified in the 19th century—a interchange (EDI). The platform is cen- In all the ports measured, 4 documents number of small independent territories trally administered and pools information are required to import or export. On the exploited their central position in the from local customs offices. The Ministry import side, a bill of lading, certificate of Mediterranean specializing in interna- of Health is also involved in customs in- origin, commercial invoice and customs tional trade. From such a history, Italy has spections via 2 different agencies: Posti di import declaration are required. For ex- inherited a complex port system embrac- Ispezione Frontaliera (PIF) is responsible for ports, a bill of lading, commercial invoice, ing more than 140 ports in the 15 coastal animals or animal products, while Uffici di customs export declaration and technical regions of the country. Their activities and Sanità Marittima Area di Frontiera (USMAF) standard certificate are required. For characteristics vary: Larger ports connect is responsible for food products. These exports, Italy is in line with the average big industries and many small and medi- agencies—even the ones affiliated with the number of documents required in OECD um-size firms to international markets. same ministry—are not organized within high income countries as well as with the Smaller ports supply primarily regional the same hierarchic responsibility struc- requirements of other competitor econo- and local markets. A number of ports are tures. Furthermore, they use different IT mies—such as the United Kingdom or also the main gateway for energy supply platforms, complicating communication. Germany. For imports, Italy’s regulations in a country that is high in consumption As a result, coordinating inspection pro- are less burdensome than the OECD but relatively poor in energy resources.8 cedures is challenging and often results in average (where it takes 1 more document And most of the ports are, to some ex- multiple inspections, leading to delays and to import a container). tent, involved in all of these activities. higher costs. Finally, under the authority of the Minister of Economy and Finance, the While carrying out the 4 required pro- Law 84/1994 sets the institutional frame- Guardia di Finanza is in charge of fighting cedures, Italian entrepreneurs spend an work within which the Italian port system financial crimes, smuggling and the drug average of 19 days and $1,006 to export functions. The law establishes a “landlord” trade. Local customs offices evaluate risk a standardized container of cargo. This model where the public sector is in charge levels for cargo based on local factors and is slower and more expensive than in of planning, control and overall manage- intelligence operations in conjunction with Germany where, via port of Hamburg, ment while private sector operators the national Guardia di Finanza. exporting takes 7 days and costs $872. handle traffic and terminal management. To import, Italian entrepreneurs need to There are many agencies involved in trade The ports covered in this analysis fall into spend 17 days and $1,131. Importing is procedures across Italy. Twenty-four port 2 distinct categories: gateway ports and easier in the United Kingdom where, via authorities (Autorità Portuali) are estab- transshipment and regional ports. The port of Southampton, containers are im- lished in the most relevant ports of the gateway or hub ports typically handle ported in 6 days for a total cost of $1,045 country as public sector agencies. Custom large cargo volumes and service long (figure 7.2). operations are managed by the Agenzia international supply chains. Gateway ports 44 DOING BUSINESS IN ITALY 2013 TABLE 7.1 Ease of trading across borders and Goia Tauro takes 2 days longer. On ports because exports require less cus- in Italy the import side, Cagliari and Catania are toms-related activity than imports do. Transshipment faster. In both ports, containers can be Moreover, economies of scale, deriving RANK Gateway ports RANK and regional ports imported in 16 days. In most of the other from the large number of containers 1 Genoa 1 Catania ports, it takes 1 day longer (17 days), while handled in gateway ports (like Trieste and 2 Trieste 2 Taranto in Taranto it takes 2 (18 days). Delays and Genoa), speed up export times compared 3 Naples 3 Gioia Tauro congestion are typically caused by the to the other ports measured. 4 Cagliari rigidity of the working hours of the agen- Note: Rankings are based on the average of the port’s cies involved—such as customs and the On average, it costs $1,006 to export and percentile rankings on the documents, time and cost to $1,131 to import in the ports measured; import and export. See Data notes for details. ministry of health. Customs offices are Source: Doing Business database. open approximately 6 hours per day, while however, the costs of importing and in many other European countries they exporting differ from port to port. It is operate 24 hours a day. Differences in cheaper to export through the port of Among the gateway ports, Genoa is the Genoa, where it costs $940 (figure 7.4). opening hours are partly due to the nature top performer (table 7.1). Through its For imports, Taranto is the port with the of the ports. Transshipment or regional port, a container can be exported in 18 lowest price: it costs $1,030 to import ports—like Cagliari and Catania—tend days for a total cost of $940. Importing a a single container. Among the 7 ports to have shorter trading times because container through the port of Genoa takes covered, Cagliari is the port with the high- customs are less busy and because they 17 days and costs $935. Among trans- est cost for both exports—$1,040—and experience fewer delays due to conges- shipment and regional ports, Catania imports—$1,470. In contrast, gateway tion, compared to larger ports. The port is the most efficient: it takes 19 days ports are able to achieve important sav- of Catania focuses primarily on supplying and $1,020 to export a container while ings and efficiency thanks to economies Sicilian regional markets. Because of this importing a container takes 16 days and of scale. As a result, freight forwarders’ limited scope of service, the port is able costs $1,040. charges are lower, as are inspection and to conduct its export and import opera- tions more efficiently. Similarly, Cagliari handling fees. Exporting a container It is fastest to export from Genoa, Taranto services primarily the Sardinian market. through a gateway port costs $973, on and Trieste, where exporting takes 18 days On the export side, busy customs offices average. Exporting through a transship- (figure 7.3). Exporting through Naples are not as much of a problem for gateway ment or regional port is, on average, $57 FIGURE 7.2 Trading across borders in Italy compared globally 5 Greece, 19 19 Greece 1435 Switzerland 6 Greece, 1440 Switzerland Spain Spain 17 1350 Spain 1315 United 1260 Spain 15 Greece States 5 Germany, 1248 France EU average, Italy— 1115 Greece OECD high 7 ports 4 4 Germany, income average United 1090 United average, Kingdom, United 1131 1135 Greece States EU average, States, OECD high 1078 France Switzerland income 1080 OECD high 4 4 United income average, Kingdom United 11 EU average, average 11 EU average 1028 OECD States, high France Switzerland 10 OECD income 10 OECD high 1072 EU high average income average income 1006 1004 EU average average average 1045 United 9 France, 9 Spain, Kingdom Spain 950 United Switzerland Kingdom 8 Switzerland 872 Germany 937 Germany 2 France 7 Germany, 2 France 7 Germany United Kingdom 6 United 6 United Kingdom States 5 United States Documents Time Cost Documents Time Cost to export to export to export to import to import to import (number) (days) (% of income per capita) (number) (days) (% of income per capita) Source: Doing Business database. TRADING ACROSS BORDERS 45 FIGURE 7.3 Time to export and import across Italian ports of these practices throughout Spanish Time to export (days) Time to import (days) customs offices—along with a progres- sive increase in the use of fully electronic Trieste Catania declarations among importers and ex- Taranto Cagliari porters—has reduced the need for traders Genoa Trieste to go to the customs offices in person. At Catania Naples the same time, the customs authority has Cagliari Gioia Tauro improved its electronic communication Naples Genoa and information sharing with other gov- Gioia Tauro Taranto 17 18 19 20 15 15.5 16 16.5 17 17.5 18 ernment agencies—such as the Secretaria del Mar. These initiatives have allowed Source: Doing Business database. customs to improve their risk profiling for cargo, thus resulting in fewer physical more expensive. The cost of importing WHAT TO REFORM? inspections and a drop in the average and exporting containers is in line with delays for customs clearance. A number of European countries carried the OECD average. However, the process out important reforms in the area of is cheaper in some of Italy’s competitor Following the example of other European maritime trade. countries that recently reformed their economies. In Germany, for example, it costs $937 to import and $872 to export regulatory environment, Italy should This year the port terminals in Rotterdam a container. This is $134 less expensive to introduced a new web-based system for reform its trade sector in the following export and $194 less expensive to import cargo release. Previously, in order to pick priority areas. than the Italian ports’ average. up containers at the port terminal, the Liberalize the transport sector importers (or customs agents on behalf Aiming to identify inefficiencies and Transport liberalization should be pur- of the trader) had to print out the cargo promote good practices in trade, the release documents (electronically) sent sued by the new Autorità dei Trasporti (box Ministry of Economic Development cre- from the customs authorities, and physi- 7.1). Following the example of many other ated a task force on trade facilitation in cally present them at the port terminals. European countries, port terminal op- 2009, the Tavolo Strategico Nazionale sulla This is no longer the case. By entering erators in Italy should be able to directly Facilitazione al Commercio Internazionale. the reference number (provided by manage connection services between Representatives from all types of trade Dutch customs) into the new web-based port platforms and the railway network operators – including freight forwarders system, the port terminals are informed in a competitive environment. This will and custom brokers – are part of the task of the customs clearance status, and the reduce delays and streamline handling force, which, despite its limited budget, driver can pick up the container without and transportation operations. plays an important role in improving presenting any physical document. coordination and communication among Introduce pre-clearance the stakeholders involved. Traders in Spain have been able to procedures transmit customs declarations and Congestion generates delays and addi- scanned documents electronically for tional costs to trade. This can be reduced several years. The gradual adoption of the by lightening the workload of ports and technological tools and implementation customs offices through pre-clearance procedures. Through pre-clearance, cargo containers are cleared by customs prior to FIGURE 7.4 Cost to export and import across Italian ports their departure for the port of destination. This reduces the time that containers Cost to export (US$ per container) Cost to import (US$ per container) spend inside destination ports waiting for Genoa EU Genoa EU average average customs clearance and ensures shorter Trieste Taranto import time. While pre-clearance pro- Naples Gioia Tauro cedures have been experimented with in Catania Catania some Italian ports—such as Genoa—they Taranto Trieste should be extended to the others and Gioia Tauro Naples implemented on a more permanent basis. Cagliari Cagliari 800 900 1000 1100 1200 1300 1400 1500 800 900 1000 1100 1200 1300 1400 1500 Source: Doing Business database. 46 DOING BUSINESS IN ITALY 2013 Promote the authorized economic operator (Operatore BOX 7.1 ON A PATH TO OVERCOME INFRASTRUCTURE CHALLENGES THROUGH PRIVATE SECTOR FINANCING AND TRADE LIBERALIZATION Economico Autorizzato) Infrastructure is a constraint for most Italian ports. The World Economic Forum’s Another initiative that can facilitate cus- “Global Competitiveness Index” places Italy 81st among 142 economies for the quality toms procedures is the introduction of of its port infrastructure—below its principal European competitors.1 A study finds that the “authorized economic operator,” the congested container platforms in Italian ports generate delays in port and handling Operatore Economico Autorizzato. First services. A delay of 1 day in the provision of such services can generate extra costs of up to $100,000.2 launched in 2008, the concept provides Competition to obtain financial resources for infrastructure improvement is high. fast-tracked and simplified access to Italian port authorities are among the least independent port authorities across the customs-related operations—including European Union economies and rely mainly on public sector investments that are often fewer container inspections—to opera- split among a large number of ports, including both gateway and transshipment ports.3 tors that meet high standards of safety Such public investments hardly fit the very specific needs of single ports and involve and reliability.   In line with European a costly and rigid process to be implemented by the central authorities. Relying on limited public sector investments puts gateway ports in particular at a disadvantage Union standards set by Regulation (EC) against their major European competitors. In most Northern European economies, port 648/2005, the Operatore Economico authorities have full autonomy in undertaking new investments and are often respon- Autorizzato status is awarded to eco- sible for a large share of the monetary resources employed.4 Port authorities should be nomic operators meeting the following able to retain part of the resources generated by their activity. This is a key instrument standards: customs compliance, appro- to attract additional resources and shape a coherent development strategy in line with the specific needs of the port. priate record-keeping, financial solvency Italy recently made important progress by making private sector financing of ports and, where relevant, appropriate secu- possible. Between 2011 and 2012, with Laws 214/2011, 27/2012 and 35/2012, Italy in- rity and safety standards. troduced project bonds, public-private partnership financing schemes and eased con- cessions to build and manage public infrastructure works. These are important instru- Implement out-of-port ments that are expected to generate resources for strategic investments in Italian ports. inspections Transport liberalization is also a priority for improving trade efficiency. The Autorità Congestion can also be reduced by per- dei Trasporti—an independent national transport authority—was created in 2012 with the objective of liberalizing the transport sector. Today, container-connection services forming customs and other inspections between port platforms and the railway network are operated in a monopolistic re- directly at the warehouses of suppliers gime by a state-owned company.5 This can generate delays for exporters and importers and importers or at logistics centers when incentives are not in line with business needs. outside port areas. This is a common Italy started to liberalize dredging activities with Law 27/2012. Through dredging, practice in OECD high-income econo- ports can increase and preserve the depth of their waters. This allows them to receive mies and contributes to higher efficiency the modern, large container cargo ships. Water depth is a key dimension of competi- tion among European ports. Indeed, being able to attract big container ships ensures of import and export practices by keeping higher trade volumes and generates additional demand for trade-related services. For port clear from extra cargo traffic. years, rigid regulations represented an important obstacle for Italian ports that had to wait years to receive dredging authorizations. Efficient provisions regulating dredging Increase financial activities should promote competitiveness while at the same time satisfying environ- autonomy of ports mental concerns in the areas affected. Italy should move towards financial au- 1. World Economic Forum. 2011. Global Competitiveness database. tonomy of port management. Resources 2. Beretta Enrico, Alessandra Dalle Vacche and Andrea Migliardi. 2009. “The Italian Port System: should be allocated to each port in relation A Survey on Competitiveness and Development Factors.” Questioni di Economia e Finanza, Occasional Paper 39. Banca d’Italia, Rome. to its economic value and contribution to 3. European Sea Ports Organization. 2011. Intervention of Patrick Verhoeven at General Assembly GDP. A radical restructuring of port fund Assoporti, Rome, 18 October 2011. allocation based on meritocratic criteria 4. Ibid. would reward the most productive ports 5. Beretta Enrico, Alessandra Dalle Vacche and Andrea Migliardi. 2009. “The Italian Port System: A Survey on Competitiveness and Development Factors.” Questioni di Economia e Finanza, and shape a national port strategy around Occasional Paper 39. Banca d’Italia, Rome. them. A quota of the revenues generated by value added tax and excises through import and export activities by each port should be allocated to the local port authorities. Such resources would be em- ployed locally to cover port management costs and finance long-term investments in port infrastructure to ensure sustain- ability of increasing trade flows. TRADING ACROSS BORDERS 47 Implement the single window for NOTES trade (Sportello Unico Doganale) 1. Beretta Enrico, Alessandra Dalle Italy passed Law 242/2010, mandating the Vacche and Andrea Migliardi. 2009. creation of a single window and a one-stop “The Italian Port System: A Survey on Competitiveness and Development shop for customs operations: the Sportello Factors.” Questioni di Economia e Finanza, Unico Doganale. But the single window has Occasional Paper 39. Banca d’Italia, not been created yet. To ensure that cus- Rome. toms procedures are streamlined and that 2. Ibid. the single window and the one-stop shop 3. Ibid. are effective, responsibilities must be clear 4. Baccelli Oliviero, Mauro Ravasio and among the different agencies involved. A Giuliano Sparacino. 2007. Porti Italiani. hierarchy of responsibility must be defined Strategie per l’autonomia finanziaria e l’intermodalità. with the customs authority at the top, 5. OECD. 2005. “The Costs and Benefits of coordinating the other agencies. Moreover, Trade Facilitation.” Policy Briefs, OECD, the advantages deriving from the imple- Paris. mentation of the Sportello Unico Doganale 6. Djankov Simeon, Caroline Freund and should be extended to intra-European Cong S. Pham. 2006. “Trading on Time.” trade flows. Maritime trade flows between The Review of Economics and Statistics, EU economies are large and the benefits of MIT Press, vol. 92(1), pages 166-173, 05. extending efficient trade practices to them 7. Dennis Allen. 2006. “The Impact of will be substantial. Regional Trade Agreements and Trade Facilitation in the Middle-East and North Africa Region.” Policy Research Working Align customs operations Paper 3837. World Bank, Washington DC. to business needs 8. Osservatorio Nazionale sul Trasporto Merci Customs and other agencies should be e la Logistica. 2011. Il futuro dei porti e del reformed to allow for more flexible work- lavoro portuale. ing hours, in line with business needs. 9. The ports covered by this study have Customs staff mobility rules should been classified as “gateway/ hub ports” or “transshipment/regional’ ports” based also be reformed bearing in mind trade on the share of containers transshipped volumes. Current rules allow for some over the total number of containers proportionality between the number of handled. customs officers assigned to each port 10. Beretta Enrico, Alessandra Dalle Vacche and their trade volume. However, cus- and Andrea Migliardi. 2009. “The Italian toms offices in major gateway ports still Port System: A Survey on Competitiveness and Development Factors.” Questioni di appear understaffed in relation to their Economia e Finanza, Occasional Paper 39. trade volumes and more flexibility in of- Banca d’Italia, Rome. ficers’ mobility is necessary. 48 Data notes The indicators presented and analyzed conference calls, written correspon- in Doing Business in Italy 2013 measure dence and visits by the team. For Doing business regulation and the protection of Business in Italy 2013, team members property rights—and their effect on busi- visited all the cities measured to verify nesses, especially small and medium-size data and recruit respondents. The data domestic firms. The indicators document from questionnaires are subjected to the complexity of regulation, such as the numerous rounds of verification, leading number of procedures to start a business to revisions or expansions of the infor- or to register and transfer commercial mation collected. property. They also gauge the time and cost of achieving a regulatory goal or com- The Doing Business methodology offers plying with regulation, such as the time several advantages. It is transparent, us- and cost to enforce a contract, go through ing factual information about what laws bankruptcy or trade across borders. ECONOMY CHARACTERISTICS In this report, Doing Business indicators have been created for 13 cities and for Gross national income per capita Doing Business in Italy 2013 re- 7 ports in Italy. The data for all sets of ports 2011 income per capita as indicators in Doing Business in Italy 2013 as published in the World Bank’s World well as for Doing Business 2013 are current Development Indicators 2012. Income as of June 2012. is calculated using the Atlas method (current U.S. dollars). For cost indi- cators expressed as a percentage of METHODOLOGY income per capita, 2011 gross na- The Doing Business in Italy 2013 data tional income (GNI) in U.S. dollars is are collected in a standardized way. used as the denominator. Italy’s GNI per capita in 2011 = US$ 35,330. To start, the Doing Business team, with academic advisers, designs a question- Exchange rate The exchange rate used in this re- naire. The questionnaire uses a simple port is: 1 US$ = 0.73 € (Euro). business case to ensure comparability Region and income group across economies and over time—with Doing Business uses the World assumptions about the legal form of the Bank regional and income group business, its size, its location and the classifications, available at http:/ / nature of its operations. Questionnaires data.worldbank.org/about/country- were administered through more than classifications. The World Bank does not assign regional classifications 370 local experts, including lawyers, to high-income economies. For the business consultants, accountants, purpose of the Doing Business report, freight forwarders, government of- high-income OECD economies are ficials and other professionals routinely assigned the “regional” classification administering or advising on legal and OECD high income. Figures and tables presenting regional averages include regulatory requirements. These experts economies from all income groups have several rounds of interaction with (low, lower middle, upper middle and the Doing Business team, including high income). DATA NOTES 49 and regulations say and allowing multiple responses given under the assumptions FIGURE 8.2 Starting a business: getting a local interactions with local respondents to of the standardized case. limited liability company up and running clarify potential misinterpretations of Finally, the methodology assumes that Rankings are based on 4 indicators questions. Having representative sam- ples of respondents is not an issue; Doing a business has full information on what Business is not a statistical survey, and the is required and does not waste time Preregistration, As % of income registration and per capita, no texts of the relevant laws and regulations when completing procedures. In practice, postregistration bribes included completing a procedure may take longer (in calendar days) are collected and answers checked for accuracy. The methodology is inexpen- if the business lacks information or is un- sive and easily replicable, so data can be able to follow up promptly. Alternatively, 25% 25% collected in a large sample of economies. the business may choose to disregard Time Cost Because standard assumptions are used some burdensome procedures. For both 25% 25% in the data collection, comparisons and reasons the time delays reported in Doing Procedures Paid-in minimum benchmarks are valid across economies. Business would differ from the recollection capital Finally, the data not only highlight the of entrepreneurs reported in the World extent of specific regulatory obstacles Bank Enterprise Surveys or other percep- Procedure is Funds deposited in a completed when bank or with a notary to business but also identify their source tion surveys. final document before registration, as % is received of income per capita and point to what might be reformed. STARTING A BUSINESS LIMITS TO WHAT IS MEASURED is developed, along with the time and Doing Business in Italy 2013 records all The Doing Business methodology has 4 cost of complying with each procedure procedures officially required for an entre- limitations that should be considered under normal circumstances and the preneur to start up and formally operate when interpreting the data. First, the data paid-in minimum capital requirement. an industrial or commercial business, as often focus on a specific business form— Subsequently, local incorporation lawyers, well as the time and cost to complete generally a limited liability company (or its notaries and government officials com- them and the paid-in minimum capital re- legal equivalent) of a specified size—and plete and verify the data. quirement (figure 8.1). These procedures may not be representative of the regula- include obtaining all necessary licenses Information is also collected on the tion on other businesses, for example, and permits and completing any required sequence in which procedures are to sole proprietorships. Second, transactions notifications, verifications or inscriptions be completed and whether procedures described in a standardized case scenario for the company and employees with may be carried out simultaneously. It is refer to a specific set of issues and may relevant authorities. The ranking on the assumed that any required information not represent the full set of issues a busi- ease of starting a business is the simple is readily available and that the entrepre- ness encounters. Third, the measures of average of the percentile rankings on its neur will pay no bribes. If answers by local time involve an element of judgment by component indicators (figure 8.2). experts differ, inquiries continue until the the expert respondents. When sources data are reconciled. indicate different estimates, the time After a study of laws, regulations and indicators reported in Doing Business publicly available information on busi- To make the data comparable across represent the median values of several ness entry, a detailed list of procedures economies, several assumptions about the business and the procedures are used. FIGURE 8.1 What are the time, cost, paid-in minimum capital and number of procedures to get a Assumptions about the business local limited liability company up and running? The business: Cost (% of income per capita) Ė Is a limited liability company (or its Formal legal equivalent). If there is more than operation one type of limited liability company in the economy, the form most popu- Paid-in Number of minimum procedures lar among domestic firms is chosen. capital Information on the most popular form is obtained from incorporation lawyers or the statistical office. Entrepreneur Ė Operates in the selected city. Time (days) Preregistration Registration, Postregistration Ė Is 100% domestically owned and has 5 incorporation owners, none of whom is a legal entity. 50 DOING BUSINESS IN ITALY 2013 Ė Has start-up capital of 10 times income entrepreneur to formally operate a busi- TABLE 8.1 What do the starting a business per capita, paid in cash. ness are recorded (table 8.1). indicators measure? Ė Performs general industrial or commer- Procedures to legally start and operate a company Procedures required for official cor- (number) cial activities, such as the production respondence or transactions with public Preregistration (for example, name verification or or sale to the public of products or ser- reservation, notarization) agencies are also included. For example, vices. The business does not perform Registration in the selected city if a company seal or stamp is required foreign trade activities and does not Postregistration (for example, social security on official documents, such as tax dec- registration, company seal) handle products subject to a special tax larations, obtaining the seal or stamp is Time required to complete each procedure regime, for example, liquor or tobacco. counted. Similarly, if a company must (calendar days) It is not using heavily polluting produc- open a bank account before registering Does not include time spent gathering tion processes. information for sales tax or value added tax, this Ė Leases the commercial plant and offic- Each procedure starts on a separate day transaction is included as a procedure. es and is not a proprietor of real estate. Procedure completed once final document is Shortcuts are counted only if they fulfill 4 received Ė Does not qualify for investment incen- criteria: they are legal, they are available No prior contact with officials tives or any special benefits. to the general public, they are used by Cost required to complete each procedure Ė Has at least 10 and up to 50 employees the majority of companies, and avoiding (% of income per capita) 1 month after the commencement of them causes substantial delays. Official costs only, no bribes operations, all of them nationals. No professional fees unless services required Only procedures required of all businesses by law Ė Has a turnover of at least 100 times are covered. Industry-specific procedures Paid-in minimum capital (% of income per capita) income per capita. are excluded. For example, procedures to Funds deposited in a bank or with a notary Ė Has a company deed 10 pages long. before registration (or within 3 months) comply with environmental regulations are Procedures included only when they apply to all busi- nesses conducting general commercial the entrepreneur spends on gathering A procedure is defined as any interaction or industrial activities. Procedures that information is ignored. It is assumed that of the company founders with external the company undergoes to connect to the entrepreneur is aware of all entry re- parties (for example, government agen- electricity, water, gas and waste disposal quirements and their sequence from the cies, lawyers, auditors or notaries). services are not included. beginning but has had no prior contact Interactions between company founders or company officers and employees are with any of the officials. Time not counted as procedures. Procedures Time is recorded in calendar days. The Cost that must be completed in the same measure captures the median duration Cost is recorded as a percentage of the building but in different offices or at dif- that incorporation lawyers indicate is economy’s income per capita. It includes ferent counters are counted as separate necessary in practice to complete a all official fees and fees for legal or pro- procedures. If founders have to visit the procedure with minimum follow-up with fessional services if such services are same office several times for different government agencies and no extra pay- required by law. Fees for purchasing and sequential procedures, each is counted ments. It is assumed that the minimum legalizing company books are included if separately. The founders are assumed time required for each procedure is 1 these transactions are required by law. The to complete all procedures themselves, day. Although procedures may take company law, the commercial code and without middlemen, facilitators, ac- place simultaneously, they cannot start specific regulations and fee schedules are countants or lawyers, unless the use on the same day (that is, simultaneous used as sources for calculating costs. In the of such a third party is mandated by procedures start on consecutive days). absence of fee schedules, a government law. If the services of professionals are A procedure is considered completed officer’s estimate is taken as an official required, procedures conducted by such once the company has received the source. In the absence of a government of- professionals on behalf of the company final document, such as the company ficer’s estimate, estimates of incorporation are counted separately. Each electronic registration certificate or tax number. lawyers are used. If several incorporation procedure is counted separately. If 2 If a procedure can be accelerated for an lawyers provide different estimates, the procedures can be completed through the additional cost, the fastest procedure is median reported value is applied. In all same website but require separate filings, chosen if that option is more beneficial to cases the cost excludes bribes. they are counted as 2 procedures. the economy’s ranking. It is assumed that Both pre- and postincorporation proce- the entrepreneur does not waste time and Paid-in minimum capital dures that are officially required for an commits to completing each remaining The paid-in minimum capital requirement procedure without delay. The time that reflects the amount that the entrepreneur DATA NOTES 51 needs to deposit in a bank or with a notary Information is collected from experts in FIGURE 8.4 Dealing with construction before registration and up to 3 months fol- construction licensing, including archi- permits: complying with formalities to build a warehouse lowing incorporation and is recorded as a tects, construction lawyers, construction Rankings are based on 3 indicators percentage of the economy’s income per firms, utility service providers and public capita. The amount is typically specified officials who deal with building regula- Days to comply with As % of income in the commercial code or the company tions, including approvals and inspections. formalities to build a per capita, no warehouse in the bribes included law. Many economies require minimum To make the data comparable across selected city capital but allow businesses to pay only a economies, several assumptions about 33.3% 33.3% part of it before registration, with the rest the business, the warehouse project and Time Cost to be paid after the first year of operation. the utility connections are used. In Turkey in June 2012, for example, the 33.3% minimum capital requirement was 5,000 Assumptions about the Procedures Turkish liras, of which one-fourth needed construction company to be paid before registration. The paid-in The business (BuildCo): Procedure is completed when final document is minimum capital recorded for Turkey is Ė Is a limited liability company. received; construction permits, inspections and therefore 1,250 Turkish liras, or 7.2% of utility connections included Ė Operates in the selected city. income per capita. Ė Is 100% domestically and privately The data details on starting a business can owned. Assumptions about be found for each economy at http://www Ė Has 5 owners, none of whom is a legal the warehouse .doingbusiness.org by selecting the economy entity. The warehouse: in the drop-down list. This methodology was Ė Is fully licensed and insured to carry out Ė Will be used for general storage ac- developed in Djankov and others (2002) and construction projects, such as building tivities, such as storage of books or is adopted here with minor changes. warehouses. stationery. The warehouse will not be Ė Has 60 builders and other employees, used for any goods requiring special all of them nationals with the technical conditions, such as food, chemicals or DEALING WITH expertise and professional experience pharmaceuticals. CONSTRUCTION PERMITS necessary to obtain construction per- Ė Has 2 stories, both above ground, Doing Business in Italy 2013 records all pro- with a total surface of approximately mits and approvals. cedures required for a business in the con- 1,300.6 square meters (14,000 square Ė Has at least 1 employee who is a li- struction industry to build a warehouse feet). Each floor is 3 meters (9 feet, 10 censed architect and registered with (figure 8.3). These procedures include inches) high. the local association of architects. submitting all relevant project-specific Ė Has paid all taxes and taken out all Ė Has road access and is located in the documents (for example, building plans necessary insurance applicable to its periurban area of the selected city (that and site maps) to the authorities; obtain- general business activity (for example, is, on the fringes of the city but still ing all necessary clearances, licenses, accidental insurance for construction within its official limits). permits and certificates; completing all workers and third-person liability). Ė Is not located in a special economic required notifications; and receiving all Ė Owns the land on which the warehouse or industrial zone. The zoning require- necessary inspections. Doing Business is built. ments for warehouses are met by in Italy 2013 also records procedures for obtaining connections for water, sewer- age and a fixed landline.1 Procedures FIGURE 8.3 What are the time, cost and number of procedures to comply with formalities to build necessary to register the property so that a warehouse? it can be used as collateral or transferred Cost to another entity are also counted. The (% of income per capita) survey divides the process of building a Completed warehouse warehouse into distinct procedures and calculates the time and cost of complet- Number of ing each procedure. The ranking on the procedures ease of dealing with construction permits is the simple average of the percentile A business in rankings on its component indicators the construction industry (figure 8.4). Time (days) Before construction During construction After construction and utilities 52 DOING BUSINESS IN ITALY 2013 building in an area where similar ware- Procedures consecutive days). If a procedure can be houses can be found. A procedure is any interaction of the accelerated legally for an additional cost, Ė Is located on a land plot of 929 square company’s employees or managers with the fastest procedure is chosen. It is as- meters (10,000 square feet) that is external parties, including government sumed that BuildCo does not waste time 100% owned by BuildCo and is ac- agencies, notaries, the land registry, the and commits to completing each remain- curately registered in the cadastre and cadastre, utility companies, public and ing procedure without delay. The time that land registry. private inspectors and technical experts BuildCo spends on gathering information Ė Is a new construction (there was no apart from in-house architects and en- is ignored. It is assumed that BuildCo is previous construction on the land). gineers. Interactions between company aware of all building requirements and employees, such as development of the their sequence from the beginning. Ė Has complete architectural and technical plans prepared by a licensed architect. warehouse plans and inspections con- Cost ducted by employees, are not counted as Ė Will include all technical equipment Cost is recorded as a percentage of the procedures. Procedures that the company required to make the warehouse fully economy’s income per capita. Only official undergoes to connect to water, sewerage operational. costs are recorded. All the fees associated and telephone services are included. All Ė Will take 30 weeks to construct (ex- procedures that are legally or in practice with completing the procedures to legally cluding all delays due to administrative required for building a warehouse are build a warehouse are recorded, including and regulatory requirements). counted, even if they may be avoided in those associated with obtaining land use exceptional cases (table 8.2). approvals and preconstruction design Assumptions about the clearances; receiving inspections before, utility connections Time during and after construction; getting The water and sewerage connection: Time is recorded in calendar days. The utility connections; and registering the Ė Is 10 meters (32 feet, 10 inches) from measure captures the median duration warehouse property. Nonrecurring taxes the existing water source and sewer that local experts indicate is necessary required for the completion of the ware- tap. to complete a procedure in practice. It is house project are also recorded. The build- Ė Does not require water for fire pro- assumed that the minimum time required ing code, information from local experts tection reasons; a fire extinguishing for each procedure is 1 day. Although and specific regulations and fee schedules system (dry system) will be used in- procedures may take place simultane- are used as sources for costs. If several stead. If a wet fire protection system ously, they cannot start on the same day local partners provide different estimates, is required by law, it is assumed that (that is, simultaneous procedures start on the median reported value is used. the water demand specified below The data details on dealing with construction also covers the water needed for fire TABLE 8.2 What do the dealing with permits can be found for each economy at protection. construction permits http://www.doingbusiness.org by selecting Ė Has an average water use of 662 liters indicators measure? the economy in the drop-down list. (175 gallons) a day and an average Procedures to legally build a warehouse (number) wastewater flow of 568 liters (150 gal- Submitting all relevant documents and obtaining lons) a day. all necessary clearances, licenses, permits and REGISTERING PROPERTY certificates Ė Has a peak water use of 1,325 liters Completing all required notifications and Doing Business in Italy 2013 records the (350 gallons) a day and a peak waste- receiving all necessary inspections full sequence of procedures necessary for water flow of 1,136 liters (300 gallons) Obtaining utility connections for water, sewerage a business (buyer) to purchase a prop- a day. and a land telephone line erty from another business (seller) and Registering the warehouse after its completion to transfer the property title to the buyer’s Ė Will have a constant level of water de- (if required for use as collateral or for transfer of mand and wastewater flow throughout the warehouse) name so that the buyer can use the the year. Time required to complete each procedure property for expanding its business, use (calendar days) the property as collateral in taking new The telephone connection: Does not include time spent gathering loans or, if necessary, sell the property to information Ė Is 10 meters (32 feet, 10 inches) from another business. The process starts with Each procedure starts on a separate day the main telephone network. obtaining the necessary documents, such Procedure completed once final document is Ė Is a fixed landline. received as a copy of the seller’s title if necessary, No prior contact with officials and conducting due diligence if required. Cost required to complete each procedure The transaction is considered complete (% of income per capita) when it is opposable to third parties and Official costs only, no bribes when the buyer can use the property, use DATA NOTES 53 it as collateral for a bank loan or resell it FIGURE 8.6 Registering property: transfer Ė Has no trees, natural water sources, (figure 8.5). The ranking on the ease of of property between 2 local natural reserves or historical monu- companies registering property is the simple average ments of any kind. Rankings are based on 3 indicators of the percentile rankings on its compo- Ė Will not be used for special purposes, nent indicators (figure 8.6). Days to transfer property As % of property value, and no special permits, such as for in the selected city no bribes included residential use, industrial plants, waste Every procedure required by law or neces- storage or certain types of agricultural sary in practice is included, whether it is 33.3% 33.3% Time Cost activities, are required. the responsibility of the seller or the buyer Ė Has no occupants (legal or illegal), and or must be completed by a third party 33.3% no other party holds a legal interest in it. on their behalf. Local property lawyers, Procedures notaries and property registries provide Procedures information on procedures as well as the A procedure is defined as any interaction time and cost to complete each of them. Steps to check encumbrances, obtain clearance certificates, prepare deed and transfer title so of the buyer or the seller, their agents (if an that the property can be occupied sold or used agent is legally or in practice required) or To make the data comparable across as collateral economies, several assumptions about the property with external parties, includ- the parties to the transaction, the prop- ing government agencies, inspectors, no- erty and the procedures are used. Ė Has no mortgages attached and has taries and lawyers. Interactions between been under the same ownership for the company officers and employees are not Assumptions about the parties past 10 years. considered. All procedures that are le- The parties (buyer and seller): gally or in practice required for registering Ė Is registered in the land registry or Ė Are limited liability companies. property are recorded, even if they may be cadastre, or both, and is free of title avoided in exceptional cases (table 8.3). Ė Are located in the periurban area of the disputes. It is assumed that the buyer follows the selected city. Ė Is located in a periurban commercial fastest legal option available and used by Ė Are 100% domestically and privately zone, and no rezoning is required. the majority of property owners. Although owned. Ė Consists of land and a building. The the buyer may use lawyers or other profes- Ė Have 50 employees each, all of whom land area is 557.4 square meters (6,000 sionals where necessary in the registration are nationals. square feet). A 2-story warehouse of process, it is assumed that the buyer does Ė Perform general commercial activities. 929 square meters (10,000 square feet) not employ an outside facilitator in the is located on the land. The warehouse registration process unless legally or in Assumptions about the property is 10 years old, is in good condition and practice required to do so. The property: complies with all safety standards, build- Ė Has a value of 50 times income per ing codes and other legal requirements. Time capita. The sale price equals the value. The property of land and building will be Time is recorded in calendar days. The transferred in its entirety. measure captures the median duration Ė Is fully owned by the seller. Ė Will not be subject to renovations or ad- that property lawyers, notaries or registry ditional building following the purchase. officials indicate is necessary to complete a procedure. It is assumed that the mini- mum time required for each procedure is 1 day. Although procedures may take place FIGURE 8.5 What are the time, cost and number of procedures required to transfer property between 2 local companies? simultaneously, they cannot start on the same day. It is assumed that the buyer Cost (% of property value) does not waste time and commits to com- Buyer can use pleting each remaining procedure without the property, delay. If a procedure can be accelerated for resell it or use it as collateral an additional cost, the fastest legal proce- dure available and used by the majority of Procedures property owners is chosen. If procedures Land & 2-story warehouse can be undertaken simultaneously, it Seller with property is assumed that they are. It is assumed registered and no title disputes that the parties involved are aware of all Time Preregistration Registration Postregistration (days) requirements and their sequence from 54 DOING BUSINESS IN ITALY 2013 TABLE 8.3 What do the registering property sea transport are not included. All docu- FIGURE 8.8 Trading across borders: exporting indicators measure? ments needed by the trader to export or and importing by sea transport Procedures to legally transfer title on immovable import the goods across the border are Rankings are based on 3 indicators property (number) also recorded. For exporting goods, proce- Document preparation, Preregistration procedures (for example, checking dures range from packing the goods into customs clearance and for liens, notarizing sales agreement, paying technical control, port property transfer taxes) the container at the warehouse to their de- All documents required by and terminal handling, customs and other inland transport and Registration procedures in the selected city parture from the port of exit. For importing agencies handling Postregistration procedures (for example, filing goods, procedures range from the vessel’s 33.3% 33.3% title with municipality) arrival at the port of entry to the cargo’s Documents Time to Time required to complete each procedure to export export and delivery at the warehouse. Payment is and import import (calendar days) made by letter of credit, and the time, cost Does not include time spent gathering 33.3% information and documents required for the issuance Cost to export and import Each procedure starts on a separate day or advising of a letter of credit are taken Procedure completed once final document is into account (figure 8.7). The ranking on received the ease of trading across borders is the US$ per 20-foot container, No prior contact with officials no bribes or tariffs included simple average of the percentile rankings Cost required to complete each procedure on its component indicators (figure 8.8). (% of property value) Official costs only, no bribes Ė Does not require any special phytosan- Local freight forwarders, shipping lines, No value added or capital gains taxes included itary or environmental safety standards customs brokers, port officials and other than accepted international banks provide information on required standards. the beginning. Time spent on gathering documents and cost as well as the time information is not considered. to complete each procedure. To make Assumptions about the business the data comparable across economies, The business: Cost several assumptions about the business and the traded goods are used. Ė Has at least 60 employees. Cost is recorded as a percentage of the Ė Is located in the selected city. property value, assumed to be equivalent Assumptions about Ė Is a private, limited liability company. It to 50 times income per capita. Only official the traded goods does not operate in an export process- costs required by law are recorded, includ- The traded product travels in a dry-cargo, ing zone or an industrial estate with ing fees, transfer taxes, stamp duties and 20-foot, full container load. It weighs special export or import privileges. any other payment to the property registry, 10 tons and is valued at $20,000. The Ė Is 100% domestically owned. notaries, public agencies or lawyers. Other product: taxes, such as capital gains tax or value Ė Exports more than 10% of its sales. Ė Is not hazardous nor does it include added tax, are excluded from the cost measure. Both costs borne by the buyer military items. Documents and those borne by the seller are included. Ė Does not require refrigeration or any All documents required per shipment If cost estimates differ among sources, the other special environment. to export and import the goods are median reported value is used. FIGURE 8.7 How much time, how many documents and what cost to export and import The data details on registering property can by sea transport? be found for each economy at http://www .doingbusiness.org by selecting the economy in the drop-down list. Time Time TRADING ACROSS BORDERS Cost Cost To export To import The trading across borders indicator mea- Documents Documents Full, 20-foot container sures the time and cost (excluding tariffs) associated with exporting and importing Import a standardized cargo of goods by sea transport. The time and cost necessary to complete every official procedure for Export exporting and importing the goods are Port and terminal Customs and Inland recorded; however, the time and cost for handling border agencies transport DATA NOTES 55 recorded (table 8.4). It is assumed that are not taken into account because they FIGURE 8.9 What are the time, cost and a new contract is drafted per shipment are not available to all trading companies. number of procedures to resolve a commercial dispute through and that the contract has already been Sea transport time is not included. It is the courts? agreed upon and executed by both par- assumed that neither the exporter nor ties. Documents required for clearance by the importer wastes time and that each Court relevant agencies—including government commits to completing each remaining ministries, customs, port authorities and procedure without delay. Procedures that Time other control agencies—are taken into ac- can be completed in parallel are measured Cost Number of count. Since payment is by letter of credit, as simultaneous. But it is assumed that procedures all documents required by banks for the document preparation, inland transport, issuance or securing of a letter of credit customs and other clearance, and port Company A Commercial dispute Company B (seller & plaintiff) (buyer & defendant) are also taken into account. Documents and terminal handling require a minimum that are requested at the time of clear- time of 1 day each and cannot take place Filing of Trial & ance but that are valid for a year or longer simultaneously. The waiting time be- court case judgment Enforcement and do not require renewal per shipment tween procedures—for example, during (for example, an annual tax clearance unloading of the cargo—is included in the certificate) are not included. measure. rankings on its component indicators Time Cost (figure 8.10). The time for exporting and importing Cost measures the fees levied on a is recorded in calendar days. The time 20-foot container in U.S. dollars. All the The name of the relevant court in each calculation for a procedure starts from fees associated with completing the economy—the court in the largest the moment it is initiated and runs until procedures to export or import the goods business city with jurisdiction over com- it is completed. If a procedure can be are taken into account. These include mercial cases worth 200% of income accelerated for an additional cost and is costs for documents, administrative fees per capita—is published at http://www available to all trading companies, the for customs clearance and inspections, .doingbusiness.org /ExploreTopics/ fastest legal procedure is chosen. Fast- customs broker fees, port-related charges EnforcingContracts/. track procedures applying only to firms and inland transport costs. The cost does located in an export processing zone, or not include customs tariffs and duties or Assumptions about the case only to certain accredited firms under costs related to sea transport. Only of- Ė The value of the claim equals 200% of authorized economic operator programs, ficial costs are recorded. the economy’s income per capita. Ė The dispute concerns a lawful transac- The data details on trading across borders tion between 2 businesses (Seller and TABLE 8.4 What do the trading across can be found for each economy at http:// Buyer), located in the selected city. borders indicators measure? www.doingbusiness.org by selecting the Seller sells goods worth 200% of the Documents required to export and import (number) economy in the drop-down list. This meth- economy’s income per capita to Buyer. Bank documents odology was developed in Djankov, Freund Customs clearance documents and Pham (2010) and is adopted here with Port and terminal handling documents minor changes. FIGURE 8.10 Enforcing contracts: resolving Transport documents a commercial dispute through Time required to export and import (days) the courts ENFORCING CONTRACTS Obtaining, filling out and submitting all the Rankings are based on 3 indicators documents Indicators on enforcing contracts mea- Inland transport and handling sure the efficiency of the judicial system in Days to resolve Attorney, court and commercial sale dispute enforcement costs as Customs clearance and inspections resolving a commercial dispute. The data through the courts % of claim value Port and terminal handling are built by following the step-by-step Does not include sea transport time evolution of a commercial sale dispute 33.3% 33.3% Time Cost Cost required to export and import before local courts. The data are collected (US$ per container) through study of the codes of civil proce- All documentation dure and other court regulations as well 33.3% Inland transport and handling Procedures as surveys completed by local litigation Customs clearance and inspections lawyers and by judges (figure 8.9). The Port and terminal handling ranking on the ease of enforcing contracts Steps to file claim, obtain judgment Official costs only, no bribes is the simple average of the percentile and enforce it 56 DOING BUSINESS IN ITALY 2013 After Seller delivers the goods to Buyer, court. A procedure is defined as any decides to file the lawsuit in court until Buyer refuses to pay for the goods on interaction, required by law or commonly payment. This includes both the days the grounds that the delivered goods used in practice, between the parties or when actions take place and the waiting were not of adequate quality. between them and the judge or court periods between. The average duration Ė Seller (the plaintiff) sues Buyer (the officer. Other procedural steps, internal of different stages of dispute resolution defendant) to recover the amount to the court or between the parties and is recorded: the completion of service of under the sales agreement (that is, their counsel, may be counted as well. process (time to file and serve the case), 200% of the economy’s income per Procedural steps include steps to file and the issuance of judgment (time for the capita). Buyer opposes Seller’s claim, serve the case, steps to assign the case to trial and obtaining the judgment) and the saying that the quality of the goods is a judge, steps for trial and judgment and moment of payment (time for enforce- not adequate. The claim is disputed on steps necessary to enforce the judgment ment of the judgment). the merits. The court cannot decide (table 8.5). Cost the case on the basis of documentary The survey allows respondents to record Cost is recorded as a percentage of the evidence or legal title alone. procedures that exist in civil law but not claim, assumed to be equivalent to 200% Ė A court in the selected city with juris- common law jurisdictions and vice versa. of income per capita. No bribes are re- diction over commercial cases worth For example, in civil law jurisdictions the corded. Three types of costs are recorded: 200% of income per capita decides judge can appoint an independent expert, court costs, enforcement costs and aver- the dispute. while in common law jurisdictions each age attorney fees. Ė Seller attaches Buyer’s movable assets party submits a list of expert witnesses (for example, office equipment and to the court. To indicate overall efficiency, Court costs include all court costs that vehicles) before obtaining a judgment 1 procedure is subtracted from the total Seller (plaintiff) must advance to the because Seller fears that Buyer may number for economies that have special- court, regardless of the final cost to Seller. become insolvent. ized commercial courts, and 1 procedure Enforcement costs are all costs that Ė An expert opinion is given on the for economies that allow electronic filing Seller (plaintiff) must advance to enforce quality of the delivered goods. If it is of the initial complaint in court cases. the judgment through a public sale of standard practice in the economy for Some procedural steps that are part of Buyer’s movable assets, regardless of the each party to call its own expert wit- others are not counted in the total num- final cost to Seller. Average attorney fees ness, the parties each call one expert ber of procedures. are the fees that Seller (plaintiff) must witness. If it is standard practice for the advance to a local attorney to represent judge to appoint an independent ex- Time Seller in the standardized case. pert, the judge does so. In this case the Time is recorded in calendar days, judge does not allow opposing expert counted from the moment the plaintiff The data details on enforcing contracts can testimony. be found for each economy at http://www .doingbusiness.org by selecting the economy Ė The judgment is 100% in favor of TABLE 8.5 What do the enforcing contracts in the drop-down list. This methodology was Seller: the judge decides that the goods indicators measure? developed in Djankov and others (2003) and are of adequate quality and that Buyer Procedures to enforce a contract through the courts is adopted here with minor changes. must pay the agreed price. (number) Ė Buyer does not appeal the judgment. Any interaction between the parties in a commercial dispute, or between them and INDICATOR RANKINGS Seller decides to start enforcing the the judge or court officer judgment as soon as the time allocated Doing Business in Italy 2013 includes Steps to file and serve the case rankings for each of the topics covered. by law for appeal expires. Steps for trial and judgment For starting a business, dealing with con- Ė Seller takes all required steps for Steps to enforce the judgment struction permits, registering property prompt enforcement of the judgment. Time required to complete procedures and enforcing contracts, there is a rank The money is successfully collected (calendar days) of the 13 cities measured. The ranking through a public sale of Buyer’s Time to file and serve the case on each topic is the simple average of movable assets (for example, office Time for trial and obtaining judgment the percentile rankings on its component equipment and vehicles). Time to enforce the judgment indicators. The ease of starting a business Cost required to complete procedures (% of claim) Procedures is a simple average of the city percentile No bribes rankings on the number of procedures, The list of procedural steps compiled for Average attorney fees and the associated time and cost (% of each economy traces the chronology of Court costs income per capita) and paid in minimum a commercial dispute before the relevant Enforcement costs DATA NOTES 57 capital required to start a business. The as the total tax rate corresponding to NOTES ease of dealing with construction permits the 15th percentile based on the overall 1. Following the inclusion of getting is a simple average of the city percentile distribution of total tax rates for all years. electricity indicators in the ease of rankings on the number of procedures, Second, for each economy the scores ob- doing business index in Doing Business and the associated time and cost (% tained for individual indicators are aggre- 2012, additional procedures, time and of income per capita) required to build gated through simple averaging into one cost related to obtaining an electricity connection in the preconstruction stage a warehouse. The ease of registering distance to frontier score. An economy’s were removed from the dealing with property is a simple average of the city distance to frontier is indicated on a scale construction permits indicators this year percentile rankings on the number of from 0 to 100, where 0 represents the to avoid double counting. procedures, associated time and cost (% lowest performance and 100 the frontier.2 2. This represents a change from last year’s of the property value) required to register report, where 100 represented the lowest property. The ease of enforcing contracts The difference between an economy’s performance and 0 the frontier. is a simple average of the city percentile distance to frontier score in 2005 and rankings on the procedures, time and its score in 2012 illustrates the extent cost (% of claim value) to resolve a com- to which the economy has closed the mercial dispute through the courts. The gap to the frontier over time. And in any ease of trading across borders measures given year the score measures how far an 7 ports and provides 2 separate rankings: economy is from the highest performance one for transshipment and regional ports at that time. and another for gateway ports. The maximum (max) and minimum Distance to frontier measure (min) observed values are computed for the 174 economies included in the The distance to frontier measure illus- Doing Business sample since 2005 and trates the distance of an economy to the for all years (from 2005 to 2012). The “frontier,” and the change in the measure year 2005 was chosen as the baseline over time shows the extent to which the for the economy sample because it was economy has closed this gap. The frontier the first year in which data were available is a score derived from the most efficient for the majority of economies (a total of practice or highest score achieved on 174) and for all 9 indicator sets included each of the component indicators in 9 in the measure. To mitigate the effects of Doing Business indicator sets (excluding extreme outliers in the distributions of the the employing workers and getting elec- rescaled data (very few economies need tricity indicators) by any economy since 694 days to complete the procedures 2005. to start a business, but many need 9 Calculating the distance to frontier for days), the maximum (max) is defined each economy involves 2 main steps. as the 95th percentile of the pooled data First, individual indicator scores are nor- for all economies and all years for each malized to a common unit: except for the indicator. The exceptions are the getting total tax rate, each of the 28 component credit, protecting investors and resolving indicators y is rescaled to (max—y)/ insolvency indicators, whose construc- (max—min), with the minimum value tion precludes outliers. The distance to (min) representing the frontier—the frontier measure can also be used for highest performance on that indicator comparisons across economies in the across all economies since 2005. For the same year, complementing the ease of total tax rate, consistent with the calcula- doing business ranking. tion of the rankings, the frontier is defined 5858 DOING BUSINESS IN ITALY 2013 City tables Bari Starting a business (rank) 6 Registering property (rank) 7 Procedures (number) 6 Procedures (number) 4 Time (days) 9 Time (days) 17 Cost (% of income per capita) 12.2 Cost (% of property value) 4.3 Paid-in min. capital (% of income per capita) 9.7 Dealing with construction permits (rank) 9 Enforcing contracts (rank) 13 Procedures (number) 13 Procedures (number) 41 Time (days) 238 Time (days) 2,022 Cost (% of income per capita) 165.0 Cost (% of claim) 34.1 Bologna Starting a business (rank) 4 Registering property (rank) 1 Procedures (number) 6 Procedures (number) 3 Time (days) 7 Time (days) 13 Cost (% of income per capita) 14.1 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 1 Enforcing contracts (rank) 11 Procedures (number) 13 Procedures (number) 41 Time (days) 164 Time (days) 1,347 Cost (% of income per capita) 177.1 Cost (% of claim) 32.8 Cagliari Starting a business (rank) 11 Registering property (rank) 6 Procedures (number) 6 Procedures (number) 4 Time (days) 9 Time (days) 16 Cost (% of income per capita) 15.3 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 2 Enforcing contracts (rank) 5 Procedures (number) 11 Procedures (number) 41 Time (days) 252 Time (days) 1,507 Cost (% of income per capita) 132.5 Cost (% of claim) 21.5 Campobasso Starting a business (rank) 13 Registering property (rank) 3 Procedures (number) 7 Procedures (number) 4 Time (days) 8 Time (days) 16 Cost (% of income per capita) 15.3 Cost (% of property value) 4.3 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 8 Enforcing contracts (rank) 5 Procedures (number) 14 Procedures (number) 41 Time (days) 207 Time (days) 1,338 Cost (% of income per capita) 160.9 Cost (% of claim) 25.5 CITY TABLES 59 Catanzaro Starting a business (rank) 1 Registering property (rank) 5 Procedures (number) 6 Procedures (number) 4 Time (days) 7 Time (days) 19 Cost (% of income per capita) 12.4 Cost (% of property value) 4.3 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 10 Enforcing contracts (rank) 7 Procedures (number) 14 Procedures (number) 41 Time (days) 309 Time (days) 1,427 Cost (% of income per capita) 48.1 Cost (% of claim) 24.1 L’Aquila Starting a business (rank) 9 Registering property (rank) 9 Procedures (number) 6 Procedures (number) 4 Time (days) 13 Time (days) 20 Cost (% of income per capita) 13.3 Cost (% of property value) 4.3 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 3 Enforcing contracts (rank) 8 Procedures (number) 13 Procedures (number) 41 Time (days) 238 Time (days) 1,435 Cost (% of income per capita) 107.2 Cost (% of claim) 22.9 Milan Starting a business (rank) 8 Registering property (rank) 7 Procedures (number) 6 Procedures (number) 3 Time (days) 6 Time (days) 19 Cost (% of income per capita) 16.8 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 3 Enforcing contracts (rank) 10 Procedures (number) 12 Procedures (number) 41 Time (days) 151 Time (days) 1,291 Cost (% of income per capita) 966.3 Cost (% of claim) 31.5 Naples Starting a business (rank) 12 Registering property (rank) 3 Procedures (number) 6 Procedures (number) 3 Time (days) 16 Time (days) 13 Cost (% of income per capita) 16.0 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 11 Enforcing contracts (rank) 2 Procedures (number) 15 Procedures (number) 41 Time (days) 252 Time (days) 1,280 Cost (% of income per capita) 45.1 Cost (% of claim) 21.7 Padua Starting a business (rank) 2 Registering property (rank) 12 Procedures (number) 6 Procedures (number) 4 Time (days) 6 Time (days) 23 Cost (% of income per capita) 14.5 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 5 Enforcing contracts (rank) 12 Procedures (number) 12 Procedures (number) 41 Time (days) 230 Time (days) 1,665 Cost (% of income per capita) 182.1 Cost (% of claim) 28.1 60 DOING BUSINESS IN ITALY 2013 Palermo Starting a business (rank) 5 Registering property (rank) 2 Procedures (number) 6 Procedures (number) 3 Time (days) 8 Time (days) 13 Cost (% of income per capita) 13.5 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 12 Enforcing contracts (rank) 9 Procedures (number) 14 Procedures (number) 41 Time (days) 316 Time (days) 1,366 Cost (% of income per capita) 89.5 Cost (% of claim) 25.2 Potenza Starting a business (rank) 3 Registering property (rank) 11 Procedures (number) 6 Procedures (number) 4 Time (days) 8 Time (days) 22 Cost (% of income per capita) 12.6 Cost (% of property value) 4.4 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 13 Enforcing contracts (rank) 3 Procedures (number) 14 Procedures (number) 41 Time (days) 208 Time (days) 1,461 Cost (% of income per capita) 725.1 Cost (% of claim) 20.5 Rome Starting a business (rank) 7 Registering property (rank) 13 Procedures (number) 6 Procedures (number) 3 Time (days) 6 Time (days) 24 Cost (% of income per capita) 16.5 Cost (% of property value) 4.5 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 6 Enforcing contracts (rank) 4 Procedures (number) 11 Procedures (number) 41 Time (days) 234 Time (days) 1,210 Cost (% of income per capita) 184.2 Cost (% of claim) 29.9 Turin Starting a business (rank) 9 Registering property (rank) 9 Procedures (number) 6 Procedures (number) 3 Time (days) 8 Time (days) 19 Cost (% of income per capita) 16.0 Cost (% of property value) 4.5 Paid-in min. Capital (% of income per capita) 9.7 Dealing with construction permits (rank) 7 Enforcing contracts (rank) 1 Procedures (number) 13 Procedures (number) 41 Time (days) 198 Time (days) 855 Cost (% of income per capita) 313.6 Cost (% of claim) 22.3 INDICATOR TABLES 61 61 Indicator tables STARTING A BUSINESS DEALING WITH CONSTRUCTION PERMITS Paid-in min. Ease of Cost capital Ease of Cost dealing with (% of (% of starting a (% of construction Procedures Time income per income per business Procedures Time income per permits City (number) (days) capita) capita) (rank) (number) (days) capita) (rank) Bari 6 9 12.2 9.7 6 13 238 165.0 9 Bologna 6 7 14.1 9.7 4 13 164 177.1 1 Cagliari 6 9 15.3 9.7 11 11 252 132.5 2 Campobasso 7 8 15.3 9.7 13 14 207 160.9 8 Catanzaro 6 7 12.4 9.7 1 14 309 48.1 10 L’Aquila 6 13 13.3 9.7 9 13 238 107.2 3 Milan 6 6 16.8 9.7 8 12 151 966.3 3 Naples 6 16 16.0 9.7 12 15 252 45.1 11 Padua 6 6 14.5 9.7 2 12 230 182.1 5 Palermo 6 8 13.5 9.7 5 14 316 89.5 12 Potenza 6 8 12.6 9.7 3 14 208 725.1 13 Rome 6 6 16.5 9.7 7 11 234 184.2 6 Turin 6 8 16.0 9.7 9 13 198 313.6 7 62 DOING BUSINESS IN ITALY 2013 REGISTERING PROPERTY ENFORCING CONTRACTS Cost Ease of Ease of (% of registering enforcing Procedures Time property property Procedures Time Cost contracts City (number) (days) value) (rank) (number) (days) (% of claim) (rank) Bari 4 17 4.3 7 41 2,022 34.1 13 Bologna 3 13 4.4 1 41 1,347 32.8 11 Cagliari 4 16 4.4 6 41 1,507 21.5 5 Campobasso 4 16 4.3 3 41 1,338 25.5 5 Catanzaro 4 19 4.3 5 41 1,427 24.1 7 L’Aquila 4 20 4.3 9 41 1,435 22.9 8 Milan 3 19 4.4 7 41 1,291 31.5 10 Naples 3 13 4.4 3 41 1,280 21.7 2 Padua 4 23 4.4 12 41 1,665 28.1 12 Palermo 3 13 4.4 2 41 1,366 25.2 9 Potenza 4 22 4.4 11 41 1,461 20.5 3 Rome 3 24 4.5 13 41 1,210 29.9 4 Turin 3 19 4.5 9 41 855 22.3 1 INDICATOR TABLES 63 TRADING ACROSS BORDERS—GATEWAY PORTS Documents to Documents to Ease of trading export Time to export Cost to export import Time to import Cost to import across borders City (number) (days) (US$ per container) (number) (days) (US$ per container) (rank) Genoa 4 18 940 4 17 935 1 Trieste 4 18 980 4 17 1,120 2 Naples 4 20 1,000 4 17 1,290 3 TRADING ACROSS BORDERS—TRANSSHIPMENT AND REGIONAL PORTS Documents to Documents to Ease of trading export Time to export Cost to export import Time to import Cost to import across borders City (number) (days) (US$ per container) (number) (days) (US$ per container) (rank) Catania 4 19 1,020 4 16 1,040 1 Taranto 4 18 1,025 4 18 1,030 2 Gioia Tauro 4 20 1,035 4 17 1,035 3 Cagliari 4 19 1,040 4 16 1,470 4 64 DOING BUSINESS IN ITALY 2013 Procedure 5. Register online with Comments: A public deed of incorporation (atto LIST OF PROCEDURES costitutivo), including the company’s bylaws ComUnica (statuto), must be drafted and executed before STARTING A BUSINESS Time: 5 days (3 days for Chamber of Commerce, a notary public by the shareholders or their INAIL, Agenzia delle Entrate, SUAP + 2 days for authorized representatives. Bari INPS) Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Standard company legal form: Società a accounting books 200 for annual membership with the Register of Responsabilità Limitata Companies of the Chambers of Commerce) Time: 1 day Minimum capital requirement: EUR 2,500 Comments: As of April 1, 2010, the ap- Cost: EUR 119 [EUR 14.62 stamp fee for each 100 (US$ 3,419) plicant must electronically file a single notice pages (3 books) + EUR 25.00 registration fee per Data as of: June 2012 (ComUnicazione Unica, or ComUnica) with the book (3 books)] Procedure 1. Deposit of at least 25% of Register of Companies. This includes issuance of Comments: According to Article 2478 of the the tax identification and VAT numbers, as well as Italian Civil Code, a limited liability company must the start-up capital in a bank account registration with Social Security Administration keep the following corporate books: minute book Time: 1 day (INPS) and Accident Insurance Office (INAIL). of shareholders’ meetings, minute book of board Cost: Nominal (bank commission) The applicant must attach the forms requested by of directors’ meetings, and minute book of board Comments: At incorporation, 25% of the (i) the Register of Companies for the registration, of auditors’ meetings (the last one is mandatory company’s capital contributed in cash must be (ii) the Italian tax authorities for the immediate for companies with capital of EUR 120,000 and deposited in a bank account. The payment of the start of business, and (iii) by INPS and INAIL for above). capital may be replaced by an insurance policy or the registration with these administrations. Since by a bank guarantee for at least the same amount, March 29, 2011 (D.P.R. 160/2010), ComUnica Procedure 4*. Pay government grant tax though it is possible for the shareholders to pay is used also to communicate the beginning (Tassa di Concessione Governativa) in the due amount at any time. If the company of operations (Segnalazione Certificata di Inizio Time: 1 day capital is not wholly paid in at incorporation, Attività) to the municipality’s one-stop shop for Cost: EUR 310 (government grant tax) the company has a credit against the founding productive activities (SUAP). Such communica- tion is carried out by uploading an additional form Comments: The government grant tax is due to shareholders for payment of the outstanding in the system (Modello S5). the Office of Revenue every year. For companies portion of the capital. The directors have power to with capital below EUR 516,456.90, the amount claim the payment at any time. Procedure 6*. Notify the Labor Office of is EUR 309.87. For companies with capital Procedure 2*. Execute a public deed the employment of workers exceeding EUR 516,456.90, the amount is EUR of incorporation and company bylaws Time: 1 day 516.46. before a notary public Cost: No cost Procedure 5. Register online with Time: 1 day Comments: The employer notifies the provincial ComUnica Cost: EUR 2,424 (EUR 168 for registration tax + Labor Office about the hiring of personnel at least Time: 3 days (1 day for Chamber of Commerce, EUR 156 for stamp duty + notary costs) 24 hours before the start of employment. INAIL, Agenzia delle Entrate, SUAP + 2 days for Comments: A public deed of incorporation (atto INPS) costitutivo), including the company’s bylaws STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR (statuto), must be drafted and executed before 200 for annual membership with the Register of Bologna a notary public by the shareholders or their Companies of the Chambers of Commerce) authorized representatives. Standard company legal form: Società a Responsabilità Limitata Comments: As of April 1, 2010, the ap- Procedure 3*. Buy corporate books and plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 accounting books (ComUnicazione Unica, or ComUnica) with the (US$ 3,419) Register of Companies. This includes issuance of Time: 1 day Data as of: June 2012 the tax identification and VAT numbers, as well as Cost: EUR 119 [EUR 14.62 stamp fee for each 100 registration with Social Security Administration pages (3 books) + EUR 25.00 registration fee per Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). book (3 books)] the start-up capital in a bank account The applicant must attach the forms requested by Comments: According to Article 2478 of the Time: 1 day (i) the Register of Companies for the registration, Italian Civil Code, a limited liability company must Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate keep the following corporate books: minute book Comments: At incorporation, 25% of the start of business, and (iii) by INPS and INAIL for of shareholders’ meetings, minute book of board company’s capital contributed in cash must be the registration with these administrations. Since of directors’ meetings, and minute book of board deposited in a bank account. The payment of the March 29, 2011 (D.P.R. 160/2010), ComUnica of auditors’ meetings (the last one is mandatory capital may be replaced by an insurance policy or is used also to communicate the beginning for companies with capital of EUR 120,000 and by a bank guarantee for at least the same amount, of operations (Segnalazione Certificata di Inizio above). though it is possible for the shareholders to pay Attività) to the municipality’s one-stop shop for in the due amount at any time. If the company productive activities (SUAP). Such communica- Procedure 4*. Pay government grant tax capital is not wholly paid in at incorporation, tion is carried out by uploading an additional form (Tassa di Concessione Governativa) the company has a credit against the founding in the system (Modello S5). Time: 1 day shareholders for payment of the outstanding Cost: EUR 310 (government grant tax) Procedure 6*. Notify the Labor Office of portion of the capital. The directors have power to Comments: The government grant tax is due to the employment of workers claim the payment at any time. the Office of Revenue every year. For companies Time: 1 day with capital below EUR 516,456.90, the amount Procedure 2*. Execute a public deed Cost: No cost is EUR 309.87. For companies with capital of incorporation and company bylaws Comments: The employer notifies the provincial exceeding EUR 516,456.90, the amount is EUR before a notary public Labor Office about the hiring of personnel at least 516.46. Time: 1 day 24 hours before the start of employment. Cost: EUR 2,924 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - STARTING A BUSINESS 65 STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Cagliari 200 for annual membership with the Register of accounting books Companies of the Chambers of Commerce) Standard company legal form: Società a Time: 1 day Comments: As of April 1, 2010, the ap- Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the pages (3 books) + EUR 25.00 registration fee per (US$ 3,419) Register of Companies. This includes issuance of book (3 books)] Data as of: June 2012 the tax identification and VAT numbers, as well as Comments: According to Article 2478 of the registration with Social Security Administration Italian Civil Code, a limited liability company must Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). keep the following corporate books: minute book the start-up capital in a bank account The applicant must attach the forms requested by of shareholders’ meetings, minute book of board Time: 1 day (i) the Register of Companies for the registration, of directors’ meetings, and minute book of board Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate of auditors’ meetings (the last one is mandatory start of business, and (iii) by INPS and INAIL for for companies with capital of EUR 120,000 and Comments: At incorporation, 25% of the the registration with these administrations. Since above). company’s capital contributed in cash must be deposited in a bank account. The payment of the March 29, 2011 (D.P.R. 160/2010), ComUnica Procedure 4*. Pay government grant tax capital may be replaced by an insurance policy or is used also to communicate the beginning of operations (Segnalazione Certificata di Inizio (Tassa di Concessione Governativa) by a bank guarantee for at least the same amount, Time: 1 day though it is possible for the shareholders to pay Attività) to the municipality’s one-stop shop for productive activities (SUAP). Such communica- Cost: EUR 310 (government grant tax) in the due amount at any time. If the company capital is not wholly paid in at incorporation, tion is carried out by uploading an additional form Comments: The government grant tax is due to the company has a credit against the founding in the system (Modello S5). the Office of Revenue every year. For companies shareholders for payment of the outstanding with capital below EUR 516,456.90, the amount Procedure 6*. Notify the Labor Office of portion of the capital. The directors have power to is EUR 309.87. For companies with capital the employment of workers claim the payment at any time. exceeding EUR 516,456.90, the amount is EUR Time: 1 day 516.46. Procedure 2*. Execute a public deed Cost: No cost of incorporation and company bylaws Procedure 5. Register online with Comments: The employer notifies the provincial before a notary public Labor Office about the hiring of personnel at least ComUnica Time: 1 day 24 hours before the start of employment. Time: 4 days (3 days for Chamber of Commerce, Agenzia delle Entrate, INAIL + 1 day for INPS) Cost: EUR 3,224 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR 200 for annual membership with the Register of Comments: A public deed of incorporation (atto Campobasso Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws Standard company legal form: Società a Comments: As of April 1, 2010, the ap- (statuto), must be drafted and executed before Responsabilità Limitata plicant must electronically file a single notice a notary public by the shareholders or their authorized representatives. Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the (US$ 3,419) Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Data as of: June 2012 the tax identification and VAT numbers, as well as accounting books registration with Social Security Administration Time: 1 day Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). Cost: EUR 119 [EUR 14.62 stamp fee for each 100 the start-up capital in a bank account The applicant must attach the forms requested by pages (3 books) + EUR 25.00 registration fee per Time: 1 day (i) the Register of Companies for the registration, book (3 books)] Cost: Nominal (bank commission) (ii) the Italian tax authorities for the inmediate start of business, and (iii) by INPS and INAIL for Comments: According to Article 2478 of the Comments: At incorporation, 25% of the the registration with these administrations. Italian Civil Code, a limited liability company must company’s capital contributed in cash must be keep the following corporate books: minute book deposited in a bank account. The payment of the Procedure 6*. Notify the Municipal of shareholders’ meetings, minute book of board capital may be replaced by an insurance policy or One-stop Shop for Productive of directors’ meetings, and minute book of board by a bank guarantee for at least the same amount, Activities (SUAP) about the beginning of auditors’ meetings (the last one is mandatory though it is possible for the shareholders to pay of operations for companies with capital of EUR 120,000 and in the due amount at any time. If the company Time: 1 day above). capital is not wholly paid in at incorporation, Cost: No cost the company has a credit against the founding Procedure 4*. Pay government grant tax shareholders for payment of the outstanding Comments: The entrepreneur must fill the (Tassa di Concessione Governativa) portion of the capital. The directors have power to “Segnalazione Certificata di Inizio Attività” (SCIA) Time: 1 day claim the payment at any time. form and submit it to the Municipal one-stop Cost: EUR 310 (government grant tax) shop for productive activites (SUAP). In the Procedure 2*. Execute a public deed SCIA, (s)he must declare the type of activity(ies) Comments: The government grant tax is due to of incorporation and company bylaws pursued and abide by the requisites set by the the Office of Revenue every year. For companies before a notary public law. The business can start its activities as soon with capital below EUR 516,456.90, the amount Time: 1 day as the SCIA form is submitted. is EUR 309.87. For companies with capital exceeding EUR 516,456.90, the amount is EUR Cost: EUR 3,224 (EUR 168 for registration tax + Procedure 7*. Notify the Labor Office of 516.46. EUR 156 for stamp duty + notary costs) the employment of workers Comments: A public deed of incorporation (atto Time: 1 day Procedure 5. Register online with costitutivo), including the company’s bylaws ComUnica (statuto), must be drafted and executed before Cost: No cost Time: 5 days (2 days for Chamber of Commerce, a notary public by the shareholders or their Comments: The employer notifies the provincial INAIL, Agenzia delle Entrate, SUAP + 3 days for authorized representatives. Labor Office about the hiring of personnel at least INPS) 24 hours before the start of employment. * This procedure can be completed simultaneously with previous procedures. 66 DOING BUSINESS IN ITALY 2013 STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Catanzaro 200 for annual membership with the Register of accounting books Companies of the Chambers of Commerce) Standard company legal form: Società a Time: 1 day Comments: As of April 1, 2010, the ap- Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the pages (3 books) + EUR 25.00 registration fee per (US$ 3,419) Register of Companies. This includes issuance of book (3 books)] Data as of: June 2012 the tax identification and VAT numbers, as well as Comments: According to Article 2478 of the registration with Social Security Administration Italian Civil Code, a limited liability company must Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). keep the following corporate books: minute book the start-up capital in a bank account The applicant must attach the forms requested by of shareholders’ meetings, minute book of board Time: 1 day (i) the Register of Companies for the registration, of directors’ meetings, and minute book of board Cost: No cost Nominal (bank commission) (ii) the Italian tax authorities for the immediate of auditors’ meetings (the last one is mandatory start of business, and (iii) by INPS and INAIL for for companies with capital of EUR 120,000 and Comments: At incorporation, 25% of the the registration with these administrations. Since above). company’s capital contributed in cash must be deposited in a bank account. The payment of the March 29, 2011 (D.P.R. 160/2010), ComUnica is Procedure 4*. Pay government grant tax capital may be replaced by an insurance policy or used also to communicate the beginning of opera- tions (Segnalazione Certificata di Inizio Attività) to (Tassa di Concessione Governativa) by a bank guarantee for at least the same amount, Time: 1 day though it is possible for the shareholders to pay the municipality’s one-stop shop for productive activities (SUAP). Such communication is carried Cost: EUR 310 (government grant tax) in the due amount at any time. If the company capital is not wholly paid in at incorporation, out by uploading an additional form in the system Comments: The government grant tax is due to the company has a credit against the founding (Modello S5). the Office of Revenue every year. For companies shareholders for payment of the outstanding with capital below EUR 516,456.90, the amount is Procedure 6*. Notify the Labor Office of portion of the capital. The directors have power to EUR 309.87. For companies with capital exceed- the employment of workers claim the payment at any time. ing EUR 516,456.90, the amount is EUR 516.46. Time: 1 day Procedure 2*. Execute a public deed Cost: No cost Procedure 5. Register online with of incorporation and company bylaws Comments: The employer notifies the provincial ComUnica before a notary public Labor Office about the hiring of personnel at least Time: 9 days (5 days for Chamber of Commerce, Time: 1 day 24 hours before the start of employment. Agenzia delle Entrate, INAIL, SUAP + 4 days for INPS) Cost: EUR 2,474 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR 200 for annual membership with the Register of Comments: A public deed of incorporation (atto L’Aquila Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws Standard company legal form: Società a Comments: As of April 1, 2010, the ap- (statuto), must be drafted and executed before Responsabilità Limitata plicant must electronically file a single notice a notary public by the shareholders or their authorized representatives. Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the (US$ 3,419) Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Data as of: June 2012 the tax identification and VAT numbers, as well as accounting books registration with Social Security Administration Time: 1 day Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). Cost: EUR 119 [EUR 14.62 stamp fee for each 100 the start-up capital in a bank account The applicant must attach the forms requested by pages (3 books) + EUR 25.00 registration fee per Time: 1 day (i) the Register of Companies for the registration, book (3 books)] Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate start of business, and (iii) by INPS and INAIL for Comments: According to Article 2478 of the Comments: At incorporation, 25% of the the registration with these administrations. Since Italian Civil Code, a limited liability company must company’s capital contributed in cash must be March 29, 2011 (D.P.R. 160/2010), ComUnica is keep the following corporate books: minute book deposited in a bank account. The payment of the used also to communicate the beginning of opera- of shareholders’ meetings, minute book of board capital may be replaced by an insurance policy or tions (Segnalazione Certificata di Inizio Attività) to of directors’ meetings, and minute book of board by a bank guarantee for at least the same amount, the municipality’s one-stop shop for productive of auditors’ meetings (the last one is mandatory though it is possible for the shareholders to pay activities (SUAP). Such communication is carried for companies with capital of EUR 120,000 and in the due amount at any time. If the company out by uploading an additional form in the system above). capital is not wholly paid in at incorporation, (Modello S5). the company has a credit against the founding Procedure 4*. Pay government grant tax shareholders for payment of the outstanding Procedure 6*. Notify the labor office of (Tassa di Concessione Governativa) portion of the capital. The directors have power to the employment of workers Time: 1 day claim the payment at any time. Time: 1 day Cost: EUR 310 (government grant tax) Procedure 2*. Execute a public deed Cost: No cost Comments: The government grant tax is due to of incorporation and company bylaws Comments: The employer notifies the provincial the Office of Revenue every year. For companies before a notary public Labor Office about the hiring of personnel at least with capital below EUR 516,456.90, the amount is Time: 1 day 24 hours before the start of employment. EUR 309.87. For companies with capital exceed- ing EUR 516,456.90, the amount is EUR 516.46. Cost: EUR 2,724 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) Procedure 5. Register online with Comments: A public deed of incorporation (atto ComUnica costitutivo), including the company’s bylaws Time: 3 days (2 days for Chamber of Commerce, (statuto), must be drafted and executed before INAIL, Agenzia delle Entrate, SUAP + 1 day for a notary public by the shareholders or their INPS) authorized representatives. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - STARTING A BUSINESS 67 STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Milan 200 for annual membership with the Register of accounting books Companies of the Chambers of Commerce) Standard company legal form: Società a Time: 1 day Comments: As of April 1, 2010, the ap- Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the pages (3 books) + EUR 25.00 registration fee per (US$ 3,419) Register of Companies. This includes issuance of book (3 books)] the tax identification and VAT numbers, as well as Comments: According to Article 2478 of the Data as of: June 2012 registration with Social Security Administration Italian Civil Code, a limited liability company must Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). keep the following corporate books: minute book the start-up capital in a bank account The applicant must attach the forms requested by of shareholders’ meetings, minute book of board Time: 1 day (i) the Register of Companies for the registration, of directors’ meetings, and minute book of board (ii) the Italian tax authorities for the immediate of auditors’ meetings (the last one is mandatory Cost: Nominal (bank commission) for companies with capital of EUR 120,000 and start of business, and (iii) by INPS and INAIL for Comments: At incorporation, 25% of the the registration with these administrations. Since above). company’s capital contributed in cash must be March 29, 2011 (D.P.R. 160/2010), ComUnica is deposited in a bank account. The payment of the Procedure 4*. Pay government grant tax used also to communicate the beginning of opera- capital may be replaced by an insurance policy or tions (Segnalazione Certificata di Inizio Attività) to (Tassa di Concessione Governativa) by a bank guarantee for at least the same amount, the municipality’s one-stop shop for productive Time: 1 day though it is possible for the shareholders to pay activities (SUAP). Such communication is carried Cost: EUR 310 (government grant tax) in the due amount at any time. If the company out by uploading an additional form in the system Comments: The government grant tax is due to capital is not wholly paid in at incorporation, (Modello S5). the Office of Revenue every year. For companies the company has a credit against the founding with capital below EUR 516,456.90, the amount is shareholders for payment of the outstanding Procedure 6*. Notify the Labor Office of EUR 309.87. For companies with capital exceed- portion of the capital. The directors have power to the employment of workers ing EUR 516,456.90, the amount is EUR 516.46. claim the payment at any time. Time: 1 day Cost: No cost Procedure 5. Register online with Procedure 2*. Execute a public deed ComUnica of incorporation and company bylaws Comments: The employer notifies the provincial before a notary public Labor Office about the hiring of personnel at least Time: 12 days (5 days for Chamber of Commerce, 24 hours before the start of employment. INAIL, Agenzia delle Entrate, SUAP + 7 days for Time: 1 day INPS) Cost: EUR 3,624 (EUR 168 for registration tax + STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR EUR 156 for stamp duty + notary costs) 200 for annual membership with the Register of Comments: A public deed of incorporation (atto Naples Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws Standard company legal form: Società a Comments: As of April 1, 2010, the ap- (statuto), must be drafted and executed before Responsabilità Limitata plicant must electronically file a single notice a notary public by the shareholders or their Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the authorized representatives. (US$ 3,419) Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Data as of: June 2012 the tax identification and VAT numbers, as well as accounting books registration with Social Security Administration Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). Time: 1 day the start-up capital in a bank account The applicant must attach the forms requested by Cost: EUR 119 [EUR 14.62 stamp fee for each 100 (i) the Register of Companies for the registration, Time: 1 day pages (3 books) + EUR 25.00 registration fee per (ii) the Italian tax authorities for the immediate book (3 books)] Cost: Nominal (bank commission) start of business, and (iii) by INPS and INAIL for Comments: According to Article 2478 of the Comments: At incorporation, 25% of the the registration with these administrations. Since Italian Civil Code, a limited liability company must company’s capital contributed in cash must be March 29, 2011 (D.P.R. 160/2010), ComUnica is keep the following corporate books: minute book deposited in a bank account. The payment of the used also to communicate the beginning of opera- of shareholders’ meetings, minute book of board capital may be replaced by an insurance policy or tions (Segnalazione Certificata di Inizio Attività) to of directors’ meetings, and minute book of board by a bank guarantee for at least the same amount, the municipality’s one-stop shop for productive of auditors’ meetings (the last one is mandatory though it is possible for the shareholders to pay activities (SUAP). Such communication is carried for companies with capital of EUR 120,000 and in the due amount at any time. If the company out by uploading an additional form in the system above). capital is not wholly paid in at incorporation, (Modello S5). the company has a credit against the founding Procedure 4*. Pay government grant tax shareholders for payment of the outstanding Procedure 6*. Notify the Labor Office of (Tassa di Concessione Governativa) portion of the capital. The directors have power to the employment of workers Time: 1 day claim the payment at any time. Time: 1 day Cost: EUR 310 (government grant tax) Procedure 2*. Execute a public deed Cost: No cost Comments: The government grant tax is due to of incorporation and company bylaws Comments: The employer notifies the provincial the Office of Revenue every year. For companies before a notary public Labor Office about the hiring of personnel at least with capital below EUR 516,456.90, the amount is Time: 1 day 24 hours before the start of employment. EUR 309.87. For companies with capital exceed- ing EUR 516,456.90, the amount is EUR 516.46. Cost: EUR 3,424 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) Procedure 5. Register online with Comments: A public deed of incorporation (atto ComUnica costitutivo), including the company’s bylaws Time: 2 days (1 day for Chamber of Commerce, (statuto), must be drafted and executed before INAIL, Agenzia delle Entrate, SUAP + 1 day for a notary public by the shareholders or their INPS) authorized representatives. * This procedure can be completed simultaneously with previous procedures. 68 DOING BUSINESS IN ITALY 2013 STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Padua 200 for annual membership with the Register of accounting books Companies of the Chambers of Commerce) Standard company legal form: Società a Time: 1 day Comments: As of April 1, 2010, the ap- Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the pages (3 books) + EUR 25.00 registration fee per (US$ 3,419) Register of Companies. This includes issuance of book (3 books)] Data as of: June 2012 the tax identification and VAT numbers, as well as Comments: According to Article 2478 of the registration with Social Security Administration Italian Civil Code, a limited liability company must Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). keep the following corporate books: minute book the start-up capital in a bank account The applicant must attach the forms requested by of shareholders’ meetings, minute book of board Time: 1 day (i) the Register of Companies for the registration, of directors’ meetings, and minute book of board Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate of auditors’ meetings (the last one is mandatory start of business, and (iii) by INPS and INAIL for for companies with capital of EUR 120,000 and Comments: At incorporation, 25% of the the registration with these administrations. Since above). company’s capital contributed in cash must be deposited in a bank account. The payment of the March 29, 2011 (D.P.R. 160/2010), ComUnica is Procedure 4*. Pay government grant tax capital may be replaced by an insurance policy or used also to communicate the beginning of opera- tions (Segnalazione Certificata di Inizio Attività) to (Tassa di Concessione Governativa) by a bank guarantee for at least the same amount, Time: 1 day though it is possible for the shareholders to pay the municipality’s one-stop shop for productive activities (SUAP). Such communication is carried Cost: EUR 310 (government grant tax) in the due amount at any time. If the company capital is not wholly paid in at incorporation, out by uploading an additional form in the system Comments: The government grant tax is due to the company has a credit against the founding (Modello S5). the Office of Revenue every year. For companies shareholders for payment of the outstanding with capital below EUR 516,456.90, the amount is Procedure 6*. Notify the Labor Office of portion of the capital. The directors have power to EUR 309.87. For companies with capital exceed- the employment of workers claim the payment at any time. ing EUR 516,456.90, the amount is EUR 516.46. Time: 1 day Procedure 2*. Execute a public deed Cost: No cost Procedure 5. Register online with of incorporation and company bylaws Comments: The employer notifies the provincial ComUnica before a notary public Labor Office about the hiring of personnel at least Time: 4 days (2 days for Chamber of Commerce, Time: 1 day 24 hours before the start of employment. INAIL, Agenzia delle Entrate, SUAP + 2 days for INPS) Cost: EUR 3,024 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR 200 for annual membership with the Register of Comments: A public deed of incorporation (atto Palermo Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws Standard company legal form: Società a Comments: As of April 1, 2010, the ap- (statuto), must be drafted and executed before Responsabilità Limitata plicant must electronically file a single notice a notary public by the shareholders or their authorized representatives. Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the (US$ 3,419) Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Data as of: June 2012 the tax identification and VAT numbers, as well as accounting books registration with Social Security Administration Time: 1 day Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). Cost: EUR 119 [EUR 14.62 stamp fee for each 100 the start-up capital in a bank account The applicant must attach the forms requested by pages (3 books) + EUR 25.00 registration fee per Time: 1 day (i) the Register of Companies for the registration, book (3 books)] Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate start of business, and (iii) by INPS and INAIL for Comments: According to Article 2478 of the Comments: At incorporation, 25% of the the registration with these administrations. Since Italian Civil Code, a limited liability company must company’s capital contributed in cash must be March 29, 2011 (D.P.R. 160/2010), ComUnica is keep the following corporate books: minute book deposited in a bank account. The payment of the used also to communicate the beginning of opera- of shareholders’ meetings, minute book of board capital may be replaced by an insurance policy or tions (Segnalazione Certificata di Inizio Attività) to of directors’ meetings, and minute book of board by a bank guarantee for at least the same amount, the municipality’s one-stop shop for productive of auditors’ meetings (the last one is mandatory though it is possible for the shareholders to pay activities (SUAP). Such communication is carried for companies with capital of EUR 120,000 and in the due amount at any time. If the company out by uploading an additional form in the system above). capital is not wholly paid in at incorporation, (Modello S5). the company has a credit against the founding Procedure 4*. Pay government grant tax shareholders for payment of the outstanding Procedure 6*. Notify the Labor Office of (Tassa di Concessione Governativa) portion of the capital. The directors have power to the employment of workers Time: 1 day claim the payment at any time. Time: 1 day Cost: EUR 310 (government grant tax) Procedure 2*. Execute a public deed Cost: No cost Comments: The government grant tax is due to of incorporation and company bylaws Comments: The employer notifies the provincial the Office of Revenue every year. For companies before a notary public Labor Office about the hiring of personnel at least with capital below EUR 516,456.90, the amount is Time: 1 day 24 hours before the start of employment. EUR 309.87. For companies with capital exceed- ing EUR 516,456.90, the amount is EUR 516.46. Cost: EUR 2,774 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) Procedure 5. Register online with Comments: A public deed of incorporation (atto ComUnica costitutivo), including the company’s bylaws Time: 2 days (1 day for Chamber of Commerce, (statuto), must be drafted and executed before INAIL, Agenzia delle Entrate, SUAP + 1 day for a notary public by the shareholders or their INPS) authorized representatives. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - STARTING A BUSINESS 69 STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR Procedure 3*. Buy corporate books and Potenza 200 for annual membership with the Register of accounting books Companies of the Chambers of Commerce) Standard company legal form: Società a Time: 1 day Comments: As of April 1, 2010, the ap- Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 plicant must electronically file a single notice Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the pages (3 books) + EUR 25.00 registration fee per (US$ 3,419) Register of Companies. This includes issuance of book (3 books)] Data as of: June 2012 the tax identification and VAT numbers, as well as Comments: According to Article 2478 of the registration with Social Security Administration Italian Civil Code, a limited liability company must Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). keep the following corporate books: minute book the start-up capital in a bank account The applicant must attach the forms requested by of shareholders’ meetings, minute book of board Time: 1 day (i) the Register of Companies for the registration, of directors’ meetings, and minute book of board Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate of auditors’ meetings (the last one is mandatory start of business, and (iii) by INPS and INAIL for for companies with capital of EUR 120,000 and Comments: At incorporation, 25% of the the registration with these administrations. Since above). company’s capital contributed in cash must be deposited in a bank account. The payment of the March 29, 2011 (D.P.R. 160/2010), ComUnica is Procedure 4*. Pay government grant tax capital may be replaced by an insurance policy or used also to communicate the beginning of opera- tions (Segnalazione Certificata di Inizio Attività) to (Tassa di Concessione Governativa) by a bank guarantee for at least the same amount, Time: 1 day though it is possible for the shareholders to pay the municipality’s one-stop shop for productive activities (SUAP). Such communication is carried Cost: EUR 310 (government grant tax) in the due amount at any time. If the company capital is not wholly paid in at incorporation, out by uploading an additional form in the system Comments: The government grant tax is due to the company has a credit against the founding (Modello S5). the Office of Revenue every year. For companies shareholders for payment of the outstanding with capital below EUR 516,456.90, the amount is Procedure 6*. Notify the Labor Office of portion of the capital. The directors have power to EUR 309.87. For companies with capital exceed- the employment of workers claim the payment at any time. ing EUR 516,456.90, the amount is EUR 516.46. Time: 1 day Procedure 2*. Execute a public deed Cost: No cost Procedure 5. Register online with of incorporation and company bylaws Comments: The employer notifies the provincial ComUnica before a notary public Labor Office about the hiring of personnel at least Time: 2 days (1 day for Chamber of Commerce, Time: 1 day 24 hours before the start of employment. Agenzia delle Entrate, INAIL, SUAP + 1 day for INPS) Cost: EUR 2,524 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) STARTING A BUSINESS Cost: EUR 290 (EUR 90 for registration fee + EUR 200 for annual membership with the Register of Comments: A public deed of incorporation (atto Rome Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws Standard company legal form: Società a Comments: As of April 1, 2010, the ap- (statuto), must be drafted and executed before Responsabilità Limitata plicant must electronically file a single notice a notary public by the shareholders or their authorized representatives. Minimum capital requirement: EUR 2,500 (ComUnicazione Unica, or ComUnica) with the (US$ 3,419) Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Data as of: June 2012 the tax identification and VAT numbers, as well as accounting books registration with Social Security Administration Time: 1 day Procedure 1. Deposit of at least 25% of (INPS) and Accident Insurance Office (INAIL). Cost: EUR 119 [EUR 14.62 stamp fee for each 100 the start-up capital in a bank account The applicant must attach the forms requested by pages (3 books) + EUR 25.00 registration fee per Time: 1 day (i) the Register of Companies for the registration, book (3 books)] Cost: Nominal (bank commission) (ii) the Italian tax authorities for the immediate start of business, and (iii) by INPS and INAIL for Comments: According to Article 2478 of the Comments: At incorporation, 25% of the the registration with these administrations. Since Italian Civil Code, a limited liability company must company’s capital contributed in cash must be March 29, 2011 (D.P.R. 160/2010), ComUnica is keep the following corporate books: minute book deposited in a bank account. The payment of the used also to communicate the beginning of opera- of shareholders’ meetings, minute book of board capital may be replaced by an insurance policy or tions (Segnalazione Certificata di Inizio Attività) to of directors’ meetings, and minute book of board by a bank guarantee for at least the same amount, the municipality’s one-stop shop for productive of auditors’ meetings (the last one is mandatory though it is possible for the shareholders to pay activities (SUAP). Such communication is carried for companies with capital of EUR 120,000 and in the due amount at any time. If the company out by uploading an additional form in the system above). capital is not wholly paid in at incorporation, (Modello S5). the company has a credit against the founding Procedure 4*. Pay government grant tax shareholders for payment of the outstanding Procedure 6*. Notify the Labor Office of (Tassa di Concessione Governativa) portion of the capital. The directors have power to the employment of workers Time: 1 day claim the payment at any time. Time: 1 day Cost: EUR 310 (government grant tax) Procedure 2*. Execute a public deed Cost: No cost Comments: The government grant tax is due to of incorporation and company bylaws Comments: The employer notifies the provincial the Office of Revenue every year. For companies before a notary public Labor Office about the hiring of personnel at least with capital below EUR 516,456.90, the amount is Time: 1 day 24 hours before the start of employment. EUR 309.87. For companies with capital exceed- ing EUR 516,456.90, the amount is EUR 516.46. Cost: EUR 3,544 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) Procedure 5. Register online with Comments: A public deed of incorporation (atto ComUnica costitutivo), including the company’s bylaws Time: 4 days (2 days for Chamber of Commerce, (statuto), must be drafted and executed before INAIL, Agenzia delle Entrate, SUAP + 2 days for a notary public by the shareholders or their INPS) authorized representatives. * This procedure can be completed simultaneously with previous procedures. 70 DOING BUSINESS IN ITALY 2013 STARTING A BUSINESS Register of Companies. This includes issuance of Procedure 3*. Buy corporate books and Turin accounting books the tax identification and VAT numbers, as well as registration with Social Security Administration Standard company legal form: Società a Time: 1 day (INPS) and Accident Insurance Office (INAIL). Responsabilità Limitata Cost: EUR 119 [EUR 14.62 stamp fee for each 100 The applicant must attach the forms requested by Minimum capital requirement: EUR 2,500 pages (3 books) + EUR 25.00 registration fee per (i) the Register of Companies for the registration, (US$ 3,419) book (3 books)] (ii) the Italian tax authorities for the immediate Data as of: June 2012 Comments: According to Article 2478 of the start of business, and (iii) by INPS and INAIL for Italian Civil Code, a limited liability company must the registration with these administrations. Since Procedure 1. Deposit of at least 25% of keep the following corporate books: minute book March 29, 2011 (D.P.R. 160/2010), ComUnica is the start-up capital in a bank account of shareholders’ meetings, minute book of board used also to communicate the beginning of opera- Time: 1 day of directors’ meetings, and minute book of board tions (Segnalazione Certificata di Inizio Attività) to Cost: Nominal (bank commission) of auditors’ meetings (the last one is mandatory the municipality’s one-stop shop for productive for companies with capital of EUR 120,000 and activities (SUAP). Such communication is carried Comments: At incorporation, 25% of the out by uploading an additional form in the system above). company’s capital contributed in cash must be (Modello S5). deposited in a bank account. The payment of the Procedure 4*. Pay government grant tax capital may be replaced by an insurance policy or (Tassa di Concessione Governativa) Procedure 6*. Notify the Labor Office of by a bank guarantee for at least the same amount, Time: 1 day the employment of workers though it is possible for the shareholders to pay Time: 1 day Cost: EUR 310 (government grant tax) in the due amount at any time. If the company Comments: The government grant tax is due to Cost: No cost capital is not wholly paid in at incorporation, the company has a credit against the founding the Office of Revenue every year. For companies Comments: The employer notifies the provincial shareholders for payment of the outstanding with capital below EUR 516,456.90, the amount is Labor Office about the hiring of personnel at least portion of the capital. The directors have power to EUR 309.87. For companies with capital exceed- 24 hours before the start of employment. claim the payment at any time. ing EUR 516,456.90, the amount is EUR 516.46. Procedure 2*. Execute a public deed Procedure 5. Register online with of incorporation and company bylaws ComUnica before a notary public Time: 4 days (2 days for Chamber of Commerce, Time: 1 day Agenzia delle Entrate, INAIL, SUAP + 2 days for INPS) Cost: EUR 3,424 (EUR 168 for registration tax + EUR 156 for stamp duty + notary costs) Cost: EUR 290 (EUR 90 for registration fee + EUR 200 for annual membership with the Register of Comments: A public deed of incorporation (atto Companies of the Chambers of Commerce) costitutivo), including the company’s bylaws (statuto), must be drafted and executed before Comments: As of April 1, 2010, the ap- a notary public by the shareholders or their plicant must electronically file a single notice authorized representatives. (ComUnicazione Unica, or ComUnica) with the * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 71 d. The project and the related documents, Chapter 9 of the Technical Regulations LIST OF PROCEDURES including clearance by the fire department and for Construction (“Norme Tecniche per le the public health agency. Costruzioni”—2008) regulates this procedure. DEALING WITH Within 120 days from the date in which the Structural engineering inspection entails the CONSTRUCTION PERMITS application is filed, the municipal agency assessment of the behavior and performance evaluates the consistency of the project with the of all load-bearing parts of the building. During Bari regulations. The 120-day term can be interrupted construction the inspector will control any to request modifications to the project, and, structural components bound to debar testing Warehouse value: EUR 1,040,000 (US$ 1,446,663) within the first 60 days, only once, to request after completion. The director of structural works Data as of: June 2012 additional documents. communicates to the “collaudatore statico” that Procedure 1. Obtain clearance by the fire After the 120-day term, within the following the structure has been completed. The “col- department 30 days the municipal agency issues the final laudatore” has 60 days to make the test. He has approval (“Provvedimento finale”). to issue a test certificate (“Certificato di collaudo”) Time: 60 days and send it to the municipal office “Sportello Unico Cost: EUR 150 Since July 2011, a Decree for Development (“Decreto Sviluppo”) introduced a “silence-is- per l’Edilizia.” To issue the certificate, the inspector Comments: BuildCo must present a request consent” principle on national scale, meaning has to examine: for clearance (“Parere di conformità”) to the that no response by the municipality equals final a. The test results for the materials used to build provincial fire department. The fire department approval, once the time limit has expired. the structure, previously sent to the laboratories verifies the conformity of the project to the fire by the director of structural works (chapter 11 legislation and issues its response within 60 days. BuildCo must file all structural projects at the “Sportello Unico per l’Edilizia” once the building of the Technical Regulations for Construction). Clearance is needed to obtain the building permit. In case of reinforced concrete structures, the Registered professionals can apply through the permit is obtained and before structural construc- tion starts. tests are done on a minimum of 3 specimens of fire department website. concrete and 3 of steel. The procedure is regulated by a recent reform The building permit is released after the related fees have been paid. b. The report on completed structures (“Relazione (Presidential Decree 151/11 of August 1st, 2011— a strutture ultimate”) that is written by the director “D.P.R. 151/11”). The reform has introduced a Procedure 4. File the structural projects of structural works and filed at the municipal simplified procedure. Building occupancies have at municipal office “Sportello Unico per office “Sportello Unico per l’Edilizia.” been divided into 3 categories with different l’Edilizia” approval procedures. Category A (low risk, Procedure 6. File the Certified Time: 1 day Notification of Starting Activity standard) no longer requires clearance by the fire department. For Category B (medium risk) and C Cost: EUR 148 [EUR 90.00 for administration (“SCIA”) at the fire department (high risk) clearance is still required. The present fees + EUR 58.48 for 4 stamps] Time: 1 day case is under Category B. Comments: Before structural construction starts, Cost: EUR 216 The reform was introduced to conform with the BuildCo must file all structural projects at the “Sportello Unico per l’Edilizia.” Required documents Comments: The Presidential Decree No. 11 of “Small Business Act” adopted by the European August, 2011 (“D.P.R. 151/11”) divides building Community. include the engineer’s certification that his project implements all government enforced Technical occupancies into 3 groups with different approval Procedure 2*. Obtain clearance by the Regulations for Construction (Ministry Decree, procedures. public health agency January 14, 2008) and whatever antiseismic For activities of Category B (medium risk), Time: 45 days requirements are prescribed by the territorial and BuildCo files a Certified Notification of Starting town planning instruments. Also included are the Activity (“SCIA”) at the fire department. This Cost: EUR 1,000 geological and geotechnical reports. document is a declaration produced by the Comments: As per the requirements of article 20, company that states the compliance of the paragraph 1, of Presidential Decree 380/2001— Together with the filing of the structural project, BuildCo appoints the engineering inspector. The building with the fire safety rules. The cost of the on Construction (“Testo Unico Edilizia”), in order procedure depends on the type of construction to obtain a building permit, it is necessary to municipal office transmits all the documentation to the province. and activity. A random on-site inspection by the obtain clearance from the public health agency. fire department can occur within the following Since the territory where the warehouse could 60 days. Procedure 3*. Obtain a building permit be built is rated as “mildly seismic,” preventive from the municipal office “Sportello authorization for antiseismic structures is not Procedure 7*. Register the building at Unico per l’Edilizia” required. the cadastre (“Agenzia del Territorio”) Time: 135 days The filed projects are subjected to random Time: 5 days Cost: EUR 33,530 [EUR 33,000.00 for fees inspections. Cost: EUR 159 [EUR 44.00 to obtain the extract related to the obtainment of the construction digital map + EUR 65.00 to register the building permit + EUR 515.00 for administration fees + Procedure 5. Hire an independent professional to test the structure in the land registry (“Catasto Terreni”) + EUR EUR 14.62 for 1 stamp] 50.00 to register the building in the building Comments: Applications to the city of Bari for Time: 1 day registry (“Catasto Fabbricati”)] building permits must carry a EUR 14.62 stamp Cost: EUR 6,000 Comments: Art. 25 of Presidential Decree and be filed on forms that can be downloaded Comments: As established by Art. 67 of 380/2001—on Construction (“Testo Unico from the township’s website. Presidential Decree 380/2001—on Construction Edilizia”) requires BuildCo to register the building As per article 20, paragraph 1, of Presidential (“Testo Unico Edilizia”), BuildCo must hire an at the land and building registry at the agency Decree 380/2001 on Construction, the following independent structural engineering inspector, called “Agenzia del Territorio.” This is preliminary documents must be attached to the application who is a registered civil engineer (or architect) to the obtainment of the occupancy certificate. form: not directly involved in the project, to make the The application is carried out by a registered a. A copy of the title of ownership of the property final tests on completed structures (“collaudo professional. for which the building permit is requested; statico”). This professional, called “collaudatore The registration of a new building entails a 2-step statico,” is appointed at the same time of the procedure: b. A declaration of consistency with the city plan- deposit of the structural project. ning instruments and the building regulations; a. Updating the Land Registry: c. The calculation of the building tax; Updating the Land Registry is an online procedure (or, one can also go personally to the local office * This procedure can be completed simultaneously with previous procedures. 72 DOING BUSINESS IN ITALY 2013 of the “Agenzia del Territorio”) that consists in Procedure 10*. Apply for water and Procedure 2*. Obtain clearance by the producing an updated map of the built lot by sewerage connection at Azienda public health agency means of “Pregeo” software. The cost of this Acquedotto Pugliese (AQP) Time: 30 days procedure is EUR 65.00. Time: 1 day Cost: EUR 274 [EUR 259.25 for cost of the b. Updating the Buildings Registry: Cost: No cost procedure + EUR 14.62 for 1 stamp] Once the Land Registry is updated, the Buildings Registry must be updated as well. The new Comments: BuildCo should contact the water Comments: As per the requirements of article 20, building must be notified by a registered authority to obtain the water and sewerage paragraph 1, of Presidential Decree 380/2001— professional by means of a standard procedure connection. on Construction (“Testo Unico Edilizia”), in order to called “DOCFA,” that can be filed on line or at obtain a building permit it is necessary to obtain Procedure 11*. Receive an on-site clearance from the public health agency. the local Land Registry Office, within 30 days inspection and an estimate of after completion of the building’s windows. This BuildCo applies to the local public health agency installation costs by Azienda (“AUSL”) to obtain clearance. The cost of the procedure costs EUR 50.00 for each real estate Acquedotto Pugliese (AQP) unit. The filing procedure also determines the procedure depends on the number of employee taxable revenue value of the property, which is a Time: 1 day that will work in the warehouse. It costs 259.25 necessary reference for tax returns and ownership Cost: No cost for less than 10 employees, 1,155.50 for more than changes. Comments: The inspection is necessary to 10 employees. Once obtained clearance, BuildCo The Buildings Registry Office releases a copy of estimate the cost of the connection works. can apply for the building permit. the documents and a filing certificate at the end Procedure 3*. Obtain a building permit Procedure 12*. Obtain water and of the same update session. from the municipal office “Sportello sewerage installation from Azienda After registering, the land registry office has 1 Acquedotto Pugliese (AQP) Unico per l’Edilizia” year to verify the classification attributed by the Time: 120 days professional to the building. Time: 60 days Cost: EUR 1,100 Cost: EUR 36,156 [EUR 10,443.82 for fees related The “Agenzia del Territorio” (the government to the 1st type of urbanization costs sustained revenue agency for taxing real estate property) Comments: Once the estimates are accepted by the client, connection works are carried. by the municipality (“Oneri di urbanizzazione provides complete procedure information to primaria”) + EUR 4,968.29 for fees related to the registered professionals at its website (“Sister” Procedure 13*. Obtain a telephone 2nd type of urbanization costs sustained by the platform). connection by Telecom Italia S.p.a. municipality (“Oneri di urbanizzazione secondaria”) Procedure 8. Apply for the occupancy Time: 15 days + EUR 20,081.26 for fees related to cost to certificate (“Certificato di agibilità”) at sustained the construction of public parking Cost: EUR 200 the municipal office “Sportello Unico per (“Monetizzazione parcheggi pubblici”) + EUR Comments: The company should contact 647.60 for administration fees for the building l’Edilizia” the telecommunication provider to obtain a permit application (“Diritti di segreteria”) + EUR Time: 30 days telephone connection. 14.62 for 1 stamp.] Cost: EUR 120 [EUR 105.00 for administration Comments: Applications to the city of Bologna fees + EUR 14.62 for 1 stamp] DEALING WITH CONSTRUCTION PERMITS for building permits must carry a EUR 14.62 Comments: The request for an occupancy Bologna stamp and be filed on forms that can be certificate must be filed at the municipal office downloaded from the township’s website. “Sportello Unico per l’Edilizia” within 15 days from Warehouse value: EUR 1,040,000 (US$ 1,446,663) Data as of: June 2012 As per article 20, paragraph 1, of Presidential completion of construction. The municipal office Decree 380/2001 on Construction, the following has 30 days from the date of filing to issue the Procedure 1. Obtain clearance by the fire documents must be attached to the application occupancy certificate, after which the silence-is- department form: consent formula is applied. The 30-day term can be interrupted to request modifications to the Time: 60 days a. A copy of the title of ownership of the property project and, within the first 15 days, only once, to Cost: EUR 150 for which the building permit is requested; request additional documents. Comments: BuildCo must present a request b. A declaration of consistency with the city plan- Filed requests are randomly selected for further for clearance (“Parere di conformità”) to the ning instruments and the building regulations; control. provincial fire department. The fire department c. The calculation of the building tax, that can be The application must include, as attachments: verifies the conformity of the project to the fire done online; the land registry documentation; installation legislation and issues its response within 60 days. d. The project and the related documents, certificates; the structure certificate; the Clearance is needed to obtain the building permit. including clearance by the fire department and declaration of conformity to the approved project, Registered professionals can apply through the the public health agency. to the draining of the walls, and to healthy fire department website. Project documents of electrical and mechanical environments; the declaration of conformity The procedure is regulated by a recent reform installations must be filed at the municipality of works to existing legislation on accessibility (Presidential Decree 151/11 of August 1st, 2011— (office for building procedures “Sportello Unico per and on elimination of architectural barriers; the “D.P.R. 151/11”). The reform has introduced a l’Edilizia”) prior to construction. energy performance certification finalized to the simplified procedure. Building occupancies have Within 120 days from the date in which the containment of fuel consumption. been divided into 3 categories with different application is filed, the municipal agency approval procedures. Category A (low risk, evaluates the consistency of the project with the Procedure 9. Receive on-site inspection standard) no longer requires clearance by the fire regulations. The 120-day term can be interrupted by the fire department department. For Category B (medium risk) and C to request modifications to the project, and, Time: 1 day (high risk) clearance is still required. The present within the first 60 days, only once, to request Cost: No cost case is under Category B. additional documents. Comments: Once the SCIA is filed, a random The reform was introduced to conform with the After the 120-day term, within the following on-site inspection by the fire department can “Small Business Act” adopted by the European 30 days the municipal agency issues the final occur within the following 60 days. Community. approval (“Provvedimento finale”). Since July 2011, a Decree for develop- ment (“Decreto Sviluppo”) introduced a * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 73 “silence-is-consent” principle on national scale, a. The test results for the materials used to build taxable revenue value of the property, which is a meaning that no response by the municipality the structure, previously sent to the laboratories necessary reference for tax returns and ownership equals final approval, once the time limit has by the director of structural works (chapter 11 changes. expired. This is not an innovation for Bologna, nor of the Technical Regulations for Construction). The Buildings Registry Office releases a copy of for the Emilia-Romagna Region, since the regional In case of reinforced concrete structures, the the documents and a filing certificate at the end code already contains the “silence-is-consent” tests are done on a minimum of 3 specimens of of the same update session. principle. concrete and 3 of steel. After registering, the land registry office has 1 The building permit is released after the related b. The report on completed structures (“Relazione year to verify the classification attributed by the fees have been paid. a strutture ultimate”) that is written by the director professional to the building. of structural works and filed at the municipal The “Agenzia del Territorio” (the government Procedure 4. File the structural projects office “Sportello Unico per l’Edilizia.” at the municipal office “Sportello Unico revenue agency for taxing real estate property) per l’Edilizia” Procedure 6. File the Certified provides complete procedure information to Notification of Starting Activity registered professionals at its website (“Sister” Time: 1 day (“SCIA”) at the fire department platform). Cost: EUR 214 [EUR 63.60 for administration fees for the deposit of the structural project + EUR Time: 1 day Procedure 8. Deposit the occupancy 150.00 for a lump-sum refund for the deposit Cost: EUR 216 certificate (“Certificato di conformità of the structural project (“rimborso forfettario per Comments: The Presidential Decree No. 11 of edilizia e agibilità”) at the municipal deposito strutturale”)] August, 2011 (“D.P.R. 151/11”) divides building office “Sportello Unico per l’Edilizia” Comments: According to Regional Law 19/2008, occupancies into 3 groups with different approval Time: 1 day article 13, BuildCo must file all structural projects procedures. Cost: EUR 170 at the “Sportello Unico per l’Edilizia” before struc- For activities of Category B (medium risk), Comments: The request for an occupancy tural construction starts. Required documents BuildCo files a Certified Notification of Starting certificate must be filed at the municipal office include the engineer’s certification that his project Activity (“SCIA”) at the fire department. This “Sportello Unico per l’Edilizia” within 15 days from implements all government enforced Technical document is a declaration produced by the completion of construction. The municipal office Regulations for Construction (Ministry Decree, company that states the compliance of the has 90 days from the date of filing to issue the January 14, 2008) and whatever antiseismic building with the fire safety rules. The cost of the occupancy certificate, after which a “silence-is- requirements are prescribed by the territorial and procedure depends on the type of construction consent” formula is considered operating. town planning instruments. Also included are the and activity. A random on-site inspection by the geological and geotechnical reports. If the required documents are in order and fire department can occur within the following complete, clearance for occupancy is granted Since the territory of Bologna is rated as “mildly 60 days. immediately. Documents must be produced seismic,” preventive authorization for antiseismic Procedure 7*. Register the building at directly to a municipal inspection officer upon structures is not required. BuildCo must pay the cadastre (“Agenzia del Territorio”) appointment. The appointment can be made a EUR 63.60 administration fee as well as a online. EUR 150.00 lump-sum reimbursement. The Time: 5 days municipality of Bologna retains an in-house Filed documents are randomly selected for further Cost: EUR 159 [EUR 44.00 to obtain the extract antiseismic engineering office that performs control, with the help of AUSL (the public health digital map + 65.00 to register the building in the random inspections on filed projects. agency), with which the city of Bologna has land registry—(“Catasto Terreni”) + EUR 50.00 signed a collaboration contract. to register the building in the building registry Procedure 5. Hire an independent (“Catasto Fabbricati”)] The application must include, as attachments: professional to test the structure the land registry documentation, installation Comments: Art. 25 of Presidential Decree Time: 1 day certificates, the explanatory report on compliance 380/2001—on Construction (“Testo Unico Cost: EUR 6,000 with statutory requirements under the Building Edilizia”) requires BuildCo to register the building and City Planning Regulation (“Regolamento Comments: As established by Art. 67 of at the land and building registry at the agency Urbanistico Edilizio”). Presidential Decree 380/2001—on Construction called “Agenzia del Territorio.” (“Testo Unico Edilizia”), BuildCo must hire an This is preliminary to the obtainment of the Procedure 9. Receive on-site inspection independent structural engineering inspector, who occupancy certificate. by the fire department is a registered civil engineer (or architect) not The application is carried out by a registered Time: 1 day directly involved in the project, to make the final professional. tests on completed structures (“collaudo statico”). Cost: No cost This professional, called “collaudatore statico,” is The registration of a new building entails a 2-step Comments: Once the SCIA is filed, a random appointed at the same time of the deposit of the procedure: on-site inspection by the fire department can structural project. a. Updating the Land Registry: occur within the following 60 days. Chapter 9 of the Technical Regulations Updating the Land Registry is an online procedure Procedure 10*. Apply for water and for Construction (“Norme Tecniche per le (or, one can also go personally to the local office sewerage connection at Hera S.p.a. Costruzioni”—2008) regulates this procedure. of the “Agenzia del Territorio”) that consists in producing an updated map of the built lot by Time: 1 day Structural engineering inspection entails the means of “Pregeo” software. The cost of this Cost: No cost assessment of the behavior and performance of all load-bearing parts of the building. During procedure is EUR 65.00. Comments: BuildCo should contact the water construction the inspector will control any b. Updating the Buildings Registry: authority to obtain the water and sewerage structural components bound to debar testing Once the Land Registry is updated, the Buildings connection. after completion. The director of structural works Registry must be updated as well. The new Procedure 11*. Receive an on-site communicates to the “collaudatore statico” that the building must be notified by a registered inspection and an estimate of structure has been completed. The “collaudatore” professional by means of a standard procedure installation costs by Hera S.p.a. has 60 days to make the test. He has to issue called “DOCFA,” that can be filed on line or at a test certificate (“Certificato di collaudo”) and the local Land Registry Office, within 30 days Time: 1 day send it to the municipal office “Sportello Unico per after completion of the building’s windows. This Cost: No cost l’Edilizia.” To issue the certificate, the inspector procedure costs EUR 50.00 for each real estate Comments: The inspection is necessary to has to examine: unit. The filing procedure also determines the estimate the cost of the connection works. * This procedure can be completed simultaneously with previous procedures. 74 DOING BUSINESS IN ITALY 2013 Procedure 12*. Obtain water and granted, the building permit is issued to BuildCo Cost: EUR 216 sewerage installation from Hera S.p.a. upon payment of the construction fees due. In Comments: The Presidential Decree No. 11 of practice, this procedure is rarely completed in 1 August, 2011 (“D.P.R. 151/11”) divides building Time: 30 days meeting. occupancies into 3 groups with different approval Cost: EUR 2,000 procedures. Comments: Once the estimates are accepted by Procedure 2. File the structural projects at the regional office “Genio Civile” For activities of Category B (medium risk), the client, connection works are carried. BuildCo files a Certified Notification of Starting Time: 1 day Procedure 13*. Obtain a telephone Activity (“SCIA”) at the fire department. This Cost: EUR 15 document is a declaration produced by the connection by Telecom Italia S.p.a. Comments: BuildCo must file all structural company that states the compliance of the Time: 15 days projects at the “Genio Civile” before structural building with the fire safety rules. The cost of the Cost: EUR 400 construction starts. Required documents include procedure depends on the type of construction Comments: The company should contact the the engineer’s certification that his project and activity. A random on-site inspection by the telecommunication provider to obtain a telephone implements all government enforced Technical fire department can occur within the following connection. Regulations for Construction (Ministry Decree, 60 days. January 14, 2008) and whatever antiseismic DEALING WITH CONSTRUCTION PERMITS requirements are prescribed by the territorial and Procedure 5*. Register the building at town planning instruments. Also included are the the cadastre (“Agenzia del Territorio”) Cagliari geological and geotechnical reports. Time: 5 days Warehouse value: EUR 1,040,000 (US$ 1,446,663) Since the territory of Cagliari is rated as “mildly Cost: EUR 159 [EUR 44.00 to obtain the extract Data as of: June 2012 seismic,” preventive authorization for antiseismic digital map + EUR 65.00 to register the building in structures is not required. the land registry (“Catasto Terreni”) + EUR 50.00 Procedure 1. Obtain the permission to to register the building in the building registry build (“DUAAP”) from to the one-stop Procedure 3. Hire an independent (“Catasto Fabbricati”)] shop for business activities “SUAP” professional to test the structure Comments: Art. 25 of Presidential Decree Time: 180 days Time: 1 day 380/2001—on Construction (“Testo Unico Cost: EUR 26,885 [EUR 14.62 for 1 stamp + EUR Cost: EUR 5,000 Edilizia”) requires BuildCo to register the building 1,600.00 for administration fees + EUR 150.00 Comments: As established by Art. 67 of at the land and building registry at the agency to obtain clearance by the fire department + EUR Presidential Decree 380/2001—on Construction called “Agenzia del Territorio.” 25,120.00 for fees related to costs sustained by (“Testo Unico Edilizia”), BuildCo must hire an This is preliminary to the obtainment of the the municipality (“Contributo di costruzione”)] independent structural engineering inspector, who occupancy certificate. Comments: BuildCo sends electronically a is a registered civil engineer (or architect) not The application is carried out by a registered “DUAAP” (a self-declaration to start construction directly involved in the project, to make the final professional. related to productive activities) to the one-stop tests on completed structures (“collaudo statico”). shop for business activities “SUAP” (“Sportello The registration of a new building entails a 2-step This professional, called “collaudatore statico,” is Unico per le Attività Produttive”). BuildCo must procedure: appointed at the same time of the deposit of the also send all the documents required to start structural project. a. Updating the Land Registry: the construction, including ownership proof, the Chapter 9 of the Technical Regulations Updating the Land Registry is an online procedure demonstration that the project complies with for Construction (“Norme Tecniche per le (or, one can also go personally to the local office the building norms, and the architectural and Costruzioni”—2008) regulates this procedure. of the “Agenzia del Territorio”) that consists in structural drawings and documents. “SUAP” then producing an updated map of the built lot by Structural engineering inspection entails the distributes the documents to all the agencies means of “Pregeo” software. The cost of this assessment of the behavior and performance involved in the procedure. procedure is EUR 65.00. of all load-bearing parts of the building. During In case technical discretionary judgments (“giudizi construction the inspector will control any b. Updating the Buildings Registry: tecnico-discrezionali”) are needed, within 30 days structural components bound to debar testing Once the Land Registry is updated, the Buildings from the application date, “SUAP” calls for an after completion. The director of structural works Registry must be updated as well. The new “agencies conference” (“Conferenza dei servizi”), communicates to the “collaudatore statico” building must be notified by a registered gathering all the agencies that are responsible that the structure has been completed. The professional by means of a standard procedure for issuing an approval. In our specific case, “collaudatore” has 60 days to make the test. called “DOCFA,” that can be filed on line or at which does not consider special limitations (e.g., He has to issue a test certificate (“Certificato di the local Land Registry Office, within 30 days landscape or hydrogeological protection), the collaudo”) and send it to the one-stop shop for after completion of the building’s windows. This agencies involved are listed below: business activities “SUAP.” To issue the certificate, procedure costs EUR 50.00 for each real estate a. Building Permits Office of the City of Cagliari; the inspector has to examine: unit. The filing procedure also determines the b. Fire department; a. The test results for the materials used to build taxable revenue value of the property, which is a c. Abbanoa S.p.a. (the city’s water and waste the structure, previously sent to the laboratories necessary reference for tax returns and ownership systems management company); by the director of structural works (chapter 11 changes. d. Technical Services Office of the City of Cagliari; of the Technical Regulations for Construction). The Buildings Registry Office releases a copy of In case of reinforced concrete structures, the the documents and a filing certificate at the end e. Transportation Services Office of the City of tests are done on a minimum of 3 specimens of of the same update session. Cagliari; concrete and 3 of steel. After registering, the land registry office has 1 f. Commercial Activities Office of the City of b. The report on completed structures (“Relazione year to verify the classification attributed by the Cagliari; a strutture ultimate”), which is written by the direc- professional to the building. g. Environment and Ecology Office of the City of tor of structural works and filed at the one-stop The “Agenzia del Territorio” (the government Cagliari. shop for business activities “SUAP.” revenue agency for taxing real estate property) If any convened agency does not attend the provides complete procedure information to meeting without a justification, their ap- Procedure 4. File the Certified registered professionals at its website (“Sister” proval is assumed. At the end of the meeting, Notification of Starting Activity platform). any proposed additions to the documents that (“SCIA”) at the fire department were produced are evaluated. If all approvals are Time: 1 day * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 75 DEALING WITH CONSTRUCTION PERMITS b. A declaration of consistency with the city Procedure 6. Deposit the occupancy certificate (“Certificato di agibilità”) at Campobasso planning instruments and the building regulations; the one-stop shop for business activities c. The calculation of the building tax; Warehouse value: EUR 1,040,000 (US$ 1,446,663) “SUAP” Data as of: June 2012 d. The project and the related documents, Time: 1 day including clearance by the fire department and the Cost: EUR 344 [EUR 328.89 for administration Procedure 1. Obtain clearance by the fire public health agency. fees + EUR 14.62 for 1 stamp] department To obtain the building permit BuildCo has to Time: 60 days present the structural project to the “Sezione Comments: The deposit of occupancy certificate Cost: EUR 150 Comuni Sismici,” a regional office. must be filed at the one-stop shop for business activities “SUAP” within 15 days from completion Comments: BuildCo must present a request for For the obtainment of building permits, the of construction. clearance (“Parere di conformità”) to the provincial national law sets shorter terms for cities with less fire department. The fire department verifies the than 100,000 inhabitants, like Campobasso. If the required documents are in order and complete, clearance for occupancy is granted conformity of the project to the fire legislation and Within 60 days from the date in which the immediately. issues its response within 60 days. Clearance is application is filed, the municipal agency needed to obtain the building permit. Registered evaluates the consistency of the project with the Filed requests are randomly selected for further professionals can apply through the fire depart- regulations. The 60-day term can be interrupted control. ment website. to request modifications to the project and, within The application must include, as attachments: the the first 30 days, only once, to request additional land registry documentation, installation certifi- The procedure is regulated by a recent reform (Presidential Decree 151/11 of August 1st, documents. cates, the structure certificate, the declaration of 2011—“D.P.R. 151/11”). The reform has introduced After the 60-day term, within the following conformity to the approved project, to the drain- a simplified procedure. Building occupancies 30 days the municipal agency issues the final ing of the walls, and to healthy environments, the have been divided into 3 categories with different approval (“Provvedimento finale”). compliance certification for sewer connections and the related disposal authorizations. approval procedures. Category A (low risk, Since July 2011, a Decree for development standard) no longer requires clearance by the fire (“Decreto Sviluppo”) introduced a “silence-is- Procedure 7. Receive on-site inspection department. For Category B (medium risk) and C consent” principle on national scale, meaning by the fire department (high risk) clearance is still required. The present that no response by the municipality equals final Time: 1 day case is under Category B. approval, once the time limit has expired. Cost: No cost The reform was introduced to conform with the Project documents of electrical and mechanical “Small Business Act” adopted by the European installations must be filed at the municipality Comments: Once the SCIA is filed, a random Community. (office for building procedures “Sportello Unico on-site inspection by the fire department can Edilizia”) prior to construction. occur within the following 60 days. Procedure 2*. Obtain clearance by the public health agency The building permit is released once the related Procedure 8*. Apply for water and fees have been paid. sewerage connection at Abbanoa S.p.a. Time: 30 days Cost: EUR 325 [EUR 0.25 per square meters Procedure 4. File the structural project Time: 1 day (0.25*1,300)] at the municipal office “Sportello Unico Cost: No cost Edilizia” Comments: As per the requirements of article 20, Comments: BuildCo should contact the water Time: 7 days paragraph 1, of Presidential Decree 380/2001— authority to obtain the water and sewerage on Construction (“Testo Unico Edilizia”), in order to Cost: EUR 15 connection. obtain a building permit it is necessary to obtain Comments: BuildCo must present the structural Procedure 9*. Receive an on-site clearance from the public health agency. project at the municipal office “Sportello Unico inspection and an estimate of Edilizia.” Procedure 3*. Obtain a building permit installation costs by Abbanoa S.p.a. from the municipal office “Sportello Procedure 5. File the structural project Time: 1 day Unico Edilizia” at the regional office “Sezione Comuni Cost: No cost Time: 90 days Sismici” Comments: The inspection is necessary to Cost: EUR 34,776 [EUR 780.00 for the admin- Time: 8 days estimate the cost of the connection works. istration fees + EUR 13.40*929 for fees related Cost: EUR 29.24 for 2 stamps (EUR 14.62 each). Procedure 10*. Obtain water and to the first type of urbanization costs sustained Comments: This procedure is regulated by sewerage installation from Abbanoa by the municipality (“oneri di urbanizzazione national (Presidential Decree 380/2001—On S.p.a. primaria”) + EUR 7.03*929 for fees related to Construction) and regional laws. Regional Law the second type of urbanization costs sustained Time: 60 days 20/1996 states that, in cities with the level of by the municipality (“oneri di urbanizzazione Cost: EUR 1,400 seismic risk seen in Campobasso, BuildCo, after secondaria”) + EUR 11.54*1,300 for fees related to the obtainment of the building permit, must Comments: Once the estimates are accepted by the cost of construction (“Costo di costruzione”) + file the structural project at the regional office the client, connection works are carried. EUR 14.62 for 1 stamp.] The fees are calculated on “Sezione Comuni Sismici.” After the deposit the the basis of the extension of the plot of land and Procedure 11*. Obtain a telephone regional office issue a certificate that states that of size of the construction. connection by Telecom Italia S.p.a. the filing has been done correctly (“certificato di Comments: Applications to the city of avvenuto deposito”). At that point construction can Time: 30 days Campobasso for building permits must carry a start. Together with the filing of the struc- Cost: EUR 200 EUR 14.62 stamp. tural project, BuildCo appoints the engineering Comments: The company should contact the As per article 20, paragraph 1, of Presidential inspector. telecommunication provider to obtain a telephone Decree 380/2001 on Construction, the following connection. documents must be attached to the application form: a. A copy of the title of ownership of the property for which the building permit is requested; * This procedure can be completed simultaneously with previous procedures. 76 DOING BUSINESS IN ITALY 2013 Procedure 6. Hire an independent to register the building in the building registry compliance certification for sewer connections professional to test the structure (“Catasto Fabbricati”)] and the related disposal authorizations. Comments: Art. 25 of Presidential Decree Time: 1 day Procedure 10. Receive on-site inspection 380/2001—on Construction (“Testo Unico Cost: EUR 5,000 by the fire department Edilizia”) requires BuildCo to register the building Comments: As established by Art. 67 of at the land and building registry at the agency Time: 1 day Presidential Decree 380/2001—on Construction called “Agenzia del Territorio.” Cost: No cost (“Testo Unico Edilizia”), BuildCo must hire an This is preliminary to the obtainment of the Comments: Once the SCIA is filed, a random independent structural engineering inspector, who occupancy certificate. on-site inspection by the fire department can is a registered civil engineer (or architect) not occur within the following 60 days. The application is carried out by a registered directly involved in the project, to make the final professional. Procedure 11*. Apply for water and tests on completed structures (“collaudo statico”). This professional, called “collaudatore statico,” is The registration of a new building entails a 2-step sewerage connection at the municipality appointed at the same time of the deposit of the procedure: Time: 1 day structural project. a. Updating the Land Registry: Cost: No cost Chapter 9 of the Technical Regulations Updating the Land Registry is an online procedure Comments: The water system is controlled for Construction (“Norme Tecniche per le (or, one can also go personally to the local office directly by the City of Campobasso. The user Costruzioni”—2008) regulates this procedure. of the “Agenzia del Territorio”) that consists in must present an application together with a draw- Structural engineering inspection entails the producing an updated map of the built lot by ing showing the distance between the building assessment of the behavior and performance means of “Pregeo” software. The cost of this and the connection point. of all load-bearing parts of the building. During procedure is EUR 65.00. construction the inspector will control any b. Updating the Buildings Registry: Procedure 12*. Receive an on-site structural components bound to debar testing Once the Land Registry is updated, the Buildings inspection and an estimate of after completion. The director of structural works Registry must be updated as well. The new installation costs by the municipality communicates to the “collaudatore statico” that building must be notified by a registered Time: 1 day the structure has been completed. The “col- professional by means of a standard procedure Cost: No cost laudatore” has 60 days to make the test. He has called “DOCFA,” that can be filed on line or at Comments: The inspection is necessary to to issue a test certificate (“Certificato di collaudo”) the local Land Registry Office, within 30 days estimate the cost of the connection works. and send it to the regional office “Sezione Comuni after completion of the building’s windows. This Sismici.” To issue the certificate, the inspector has procedure costs EUR 50.00 for each real estate Procedure 13*. Obtain water and to examine: unit. The filing procedure also determines the sewerage installation from the a. The test results for the materials used to build taxable revenue value of the property, which is a municipality the structure, previously sent to the laboratories necessary reference for tax returns and ownership Time: 60 days by the director of structural works (chapter 11 changes. Cost: EUR 600 of the Technical Regulations for Construction). The Buildings Registry Office releases a copy of In case of reinforced concrete structures, the Comments: Once the estimates are accepted by the documents and a filing certificate at the end tests are done on a minimum of 3 specimens of the client, connection works are carried. of the same update session. concrete and 3 of steel. After registering, the land registry office has 1 Procedure 14*. Obtain a telephone b. The report on completed structures (“Relazione year to verify the classification attributed by the connection by Telecom Italia S.p.a. a strutture ultimate”) that is written by the director professional to the building. Time: 15 days of structural works and filed at the regional office The “Agenzia del Territorio” (the government “Sezione Comuni Sismici.” Cost: EUR 250 revenue agency for taxing real estate property) Comments: The company should contact the Procedure 7. File the Certified provides complete procedure information to telecommunication provider to obtain a telephone Notification of Starting Activity registered professionals at its website (“Sister” connection. (“SCIA”) at the fire department platform). Time: 1 day Procedure 9. Apply for the occupancy DEALING WITH CONSTRUCTION PERMITS Cost: EUR 216 certificate (“Certificato di agibilità”) at Catanzaro Comments: The Presidential Decree No. 11 of the municipal office “Sportello Unico Edilizia” Warehouse value: EUR 1,040,000 (US$ 1,446,663) August, 2011 (“D.P.R. 151/11”) divides building Data as of: June 2012 occupancies into 3 groups with different approval Time: 30 days procedures. Cost: EUR 54 Procedure 1. Obtain clearance by the fire For activities of Category B (medium risk), Comments: The request for an occupancy department BuildCo files a Certified Notification of Starting certificate must be filed at the municipal office Time: 60 days Activity (“SCIA”) at the fire department. This “Sportello Unico dell’Edilizia” within 15 days from Cost: EUR 150 document is a declaration produced by the completion of construction. The municipal office Comments: BuildCo must present a request for company that states the compliance of the has 30 days from the date of filing to issue the clearance (“Parere di conformità”) to the provincial building with the fire safety rules. The cost of the occupancy certificate, after which the silence-is- fire department. The fire department verifies the procedure depends on the type of construction consent formula is applied. The 30-day term can conformity of the project to the fire legislation and and activity. A random on-site inspection by the be interrupted to request modifications to the issues its response within 60 days. Clearance is fire department can occur within the following project and, within the first 15 days, only once, to needed to obtain the building permit. Registered 60 days. request additional documents. professionals can apply through the fire depart- Procedure 8*. Register the building at Filed requests are randomly selected for further ment website. the cadastre (“Agenzia del Territorio”) control. The procedure is regulated by a recent reform Time: 5 days The application must include, as attachments: the (Presidential Decree 151/11 of August 1st, land registry documentation, installation certifi- 2011—“D.P.R. 151/11”). The reform has introduced Cost: EUR 159 [EUR 44.00 to obtain the extract cates, the structure certificate, the declaration of a simplified procedure. Building occupancies digital map + EUR 65.00 to register the building in conformity to the approved project, to the drain- have been divided into 3 categories with different the land registry (“Catasto Terreni”) + EUR 50.00 ing of the walls, and to healthy environments, the approval procedures. Category A (low risk, * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 77 standard) no longer requires clearance by the fire Procedure 4*. Obtain seismic b. The report on completed structures (“Relazione department. For Category B (medium risk) and C authorization from the Regional a strutture ultimate”) that is written by the director (high risk) clearance is still required. The present of structural works and filed at the Regional Technical Office case is under Category B. Technical Office. Time: 30 days The reform was introduced to conform with the Cost: EUR 15 Procedure 6. File the Certified “Small Business Act” adopted by the European Comments: As per article 94, paragraph 1, of Notification of Starting Activity Community. Presidential Decree 380/2001—on Construction (“SCIA”) at the fire department Procedure 2*. Obtain clearance by the (“Testo Unico Edilizia”), in places subject to Time: 1 day public health agency seismic risk the structural project must be filed Cost: EUR 216 Time: 15 days with the Regional Technical Office before starting Comments: The Presidential Decree No. 11 of Cost: EUR 600 construction. August, 2011 (“D.P.R. 151/11”) divides building Comments: As per the requirements of article 20, This procedure is regulated by national and occupancies into 3 groups with different approval paragraph 1, of Presidential Decree 380/2001— regional laws. In Catanzaro it has to be filed prior procedures. on Construction (“Testo Unico Edilizia”), in order to to obtaining the building permit, while in many For activities of Category B (medium risk), obtain a building permit it is necessary to obtain other cities of the country it has to be obtained BuildCo files a Certified Notification of Starting clearance from the public health agency. subsequently to the building permit. Activity (“SCIA”) at the fire department. This In Catanzaro, BuildCo, after requesting the document is a declaration produced by the Procedure 3*. Obtain a building permit building permit, transmits the static project company that states the compliance of the from the Municipal Technical Office electronically through the telematics regional building with the fire safety rules. The cost of the Time: 200 days system “SI-ERC.” Usually this procedure takes procedure depends on the type of construction Cost: EUR 4,505 [2,112.00 for fees related to place once that BuildCo has been formally or and activity. A random on-site inspection by the the urbanization costs (“Oneri di urbanizzazione”) informally assured that the building permit will fire department can occur within the following sustained by the municipality + 2,112.00 for fees be released. 60 days. related to waste disposal—“Smaltimento rifiuti” + BuildCo prints out from the “SI-ERC” 3 copies 266 for administration fees + 14.62 for 1 stamp] of the documents that contain all the data that Procedure 7*. Deposit the documents has been transmitted. The copies are brought 1 for the cadastral registration at the Comments: Applications to the city of Catanzaro Municipal Technical Office for building permits must carry a EUR 14.62 to the municipality, 1 to the Regional Technical stamp. Office (with a EUR 14,62 stamp), and 1 to the Time: 7 days As per article 20, paragraph 1, of Presidential construction site. Cost: EUR 33 Decree 380/2001 on Construction, the following The Regional Technical Service has 60 days to Comments: In order to check illegal construction, documents must be attached to the application approve the practice. within the first 30 days after completion of the form: building, updating documents must be filed at the Procedure 5. Hire an independent Municipal Technical Office for clearance before a. A copy of the title of ownership of the property professional to test the structure for which the building permit is requested; registering them at the “Agenzia del Territorio” Time: 1 day (cadastral agency). The municipal office will ap- b. A declaration of consistency with the city Cost: EUR 6,000 prove and return the documents that can then be planning instruments and the building regulations; Comments: As established by Art. 67 of forwarded to the cadastral agency. This procedure c. The calculation of the building tax; is also preparatory for the occupancy certificate. Presidential Decree 380/2001—on Construction d. The project and the related documents, (“Testo Unico Edilizia”), BuildCo must hire an including clearance by the fire department and the Procedure 8. Register the building at the independent structural engineering inspector, who cadastre (“Agenzia del Territorio”) public health agency. is a registered civil engineer (or architect) not To obtain the building permit BuildCo has to directly involved in the project, to make the final Time: 5 days present the structural project to the Regional tests on completed structures (“collaudo statico”). Cost: EUR 159 [EUR 44.00 to obtain the extract Technical Office for seismic authorization. This professional, called “collaudatore statico,” is digital map + EUR 65.00 to register the building in For the obtainment of building permits, the appointed at the same time of the deposit of the the land registry (“Catasto Terreni”) + EUR 50.00 national law sets shorter terms for cities with less structural project. to register the building in the building registry than 100,000 inhabitants, like Catanzaro. Chapter 9 of the Technical Regulations (“Catasto Fabbricati”)] Within 60 days from the date in which the for Construction (“Norme Tecniche per le Comments: Art. 25 of Presidential Decree application is filed, the municipal office Costruzioni”—2008) regulates this procedure. 380/2001—on Construction (“Testo Unico evaluates the consistency of the project with the Structural engineering inspection entails the Edilizia”) requires BuildCo to register the building regulations. The 60-day term can be interrupted assessment of the behavior and performance at the land and building registry at the agency to request modifications to the project and, within of all load-bearing parts of the building. During called “Agenzia del Territorio.” the first 30 days, only once, to request additional construction the inspector will control any This is preliminary to the obtainment of the documents. structural components bound to debar testing occupancy certificate. After the 60-day term, within the following 30 after completion. The director of structural works The application is carried out by a registered days the municipal office issues the final approval communicates to the “collaudatore statico” that the professional. (“Provvedimento finale”). structure has been completed. The “collaudatore” The registration of a new building entails a 2-step Since July 2011, a Decree for development has 60 days to make the test. He has to issue a procedure: (“Decreto Sviluppo”) introduced a “silence-is- test certificate (“Certificato di collaudo”) and send a. Updating the Land Registry: consent” principle on national scale, meaning it to the Regional Technical Office. To issue the certificate, the inspector has to examine: Updating the Land Registry is an online procedure that no response by the municipality equals final (or, one can also go personally to the local office approval, once the time limit has expired. a. The test results for the materials used to build of the “Agenzia del Territorio”) that consists in Project documents of electrical and mechanical the structure, previously sent to the laboratories producing an updated map of the built lot by installations must be filed at the municipality prior by the director of structural works (chapter 11 means of “Pregeo” software. The cost of this to construction. of the Technical Regulations for Construction). procedure is EUR 65.00. In case of reinforced concrete structures, the The building permit is released once the related b. Updating the Buildings Registry: tests are done on a minimum of 3 specimens of fees have been paid. concrete and 3 of steel. * This procedure can be completed simultaneously with previous procedures. 78 DOING BUSINESS IN ITALY 2013 Once the Land Registry is updated, the Buildings present an application together with a drawing obtain a building permit it is necessary to obtain Registry must be updated as well. The new showing the distance between the building and clearance from the public health agency. building must be notified by a registered the connection point. professional by means of a standard procedure Procedure 3*. Obtain a building permit called “DOCFA,” that can be filed on line or at Procedure 12*. Receive an on-site from the municipal office “Sportello the local Land Registry Office, within 30 days inspection and an estimate of Unico Edilizia” after completion of the building’s windows. This installation costs by a private company Time: 150 days procedure costs EUR 50.00 for each real estate Time: 1 day Cost: EUR 19,998 [EUR 19,823.70 for the fees unit. The filing procedure also determines the Cost: No cost related to the building permit + EUR 160 for the taxable revenue value of the property, which is a Comments: The inspection is necessary to administration fees + 14.62 for 1 stamp] necessary reference for tax returns and ownership estimate the cost of the connection works. Comments: Applications to the city of L’Aquila changes. for building permits must carry a EUR 14.62 The Buildings Registry Office releases a copy of Procedure 13*. Obtain water and stamp. the documents and a filing certificate at the end sewerage installation from a private As per article 20, paragraph 1, of Presidential of the same update session. company Decree 380/2001 on Construction, the following After registering, the land registry office has 1 Time: 60 days documents must be attached to the application year to verify the classification attributed by the Cost: EUR 350 form: professional to the building. Comments: Once the estimates are accepted by a. A copy of the title of ownership of the property The “Agenzia del Territorio” (the government the client, connection works are carried. for which the building permit is requested; revenue agency for taxing real estate property) b. A declaration of consistency with the city plan- provides complete procedure information to Procedure 14*. Obtain a telephone ning instruments and the building regulations; registered professionals at its website (“Sister” connection by Telecom Italia S.p.a. c. The calculation of the building tax; platform). Time: 30 days d. The project and the related documents, Cost: EUR 200 Procedure 9. Apply for the occupancy including clearance by the fire department and certificate (“Certificato di agibilità”) at Comments: The company should contact the public health agency. the Municipal Technical Office the telecommunication provider to obtain a To obtain the building permit BuildCo has to telephone connection. Time: 30 days present the structural project to the “Genio Civile,” Cost: EUR 210 [EUR 195.00 for administration a provincial office. DEALING WITH CONSTRUCTION PERMITS fees (“Diritti disegreteria”) for the deposit + EUR For the obtainment of building permits, the 14.62 for 1 stamp] L’Aquila national law sets shorter terms for cities with less Comments: The request for an occupancy Warehouse value: EUR 1,040,000 (US$ 1,446,663) than 100,000 inhabitants, like L’Aquila. certificate must be filed at the municipal office Data as of: June 2012 Within 60 days from the date in which the “Ufficio Tecnico del Comune” within 15 days from application is filed, the municipal agency completion of construction. The municipal office Procedure 1. Obtain clearance by the fire evaluates the consistency of the project with the has 30 days from the date of filing to issue the department regulations. The 60-day term can be interrupted occupancy certificate, after which the silence-is- Time: 60 days to request modifications to the project and, within consent formula is applied. The 30-day term can Cost: EUR 150 the first 30 days, only once, to request additional be interrupted to request modifications to the Comments: BuildCo must present a request documents. project and, within the first 15 days, only once, to for clearance (“Parere di conformità”) to the After the 60-day term, within the following request additional documents. provincial fire department. The fire department 30 days the municipal agency issues the final Filed requests are randomly selected for further verifies the conformity of the project to the fire approval (“Provvedimento finale”). control. legislation and issues its response within 60 days. Since July 2011, a Decree for development The application must include, as attachments: Clearance is needed to obtain the building permit. (“Decreto Sviluppo”) introduced a “silence-is- the land registry documentation; installation Registered professionals can apply through the consent” principle on national scale, meaning certificates; the structure certificate; the fire department website. that no response by the municipality equals final declaration of conformity to the approved project, The procedure is regulated by a recent reform approval, once the time limit has expired. to the draining of the walls, and to healthy (Presidential Decree 151/11 of August 1st, Project documents of electrical and mechanical environments; the declaration of conformity 2011—“D.P.R. 151/11”). The reform has introduced installations must be filed at the municipality of works to existing legislation on accessibility a simplified procedure. Building occupancies (office for building procedures “Sportello Unico and on elimination of architectural barriers; the have been divided into 3 categories with different Edilizia”) prior to construction. energy performance certification finalized to the approval procedures. Category A (low risk, The building permit is released after the related containment of fuel consumption. standard) no longer requires clearance by the fire fees have been paid. department. For Category B (medium risk) and C Procedure 10. Receive on-site inspection Procedure 4. File the structural project (high risk) clearance is still required. The present by the fire department at the provincial office “Genio Civile” case is under Category B. Time: 1 day Time: 15 days The reform was introduced to conform with the Cost: No cost “Small Business Act” adopted by the European Cost: EUR 15 Comments: Once the SCIA is filed, a random Community. Comments: This procedure is regulated by on-site inspection by the fire department can national (Presidential Decree 380/2001—on occur within the following 60 days. Procedure 2*. Obtain clearance by the public health agency Construction) and regional laws. BuildCo, after Procedure 11*. Apply for water and the obtainment of the building permit, must Time: 20 days sewerage connection at the municipality file the structural project at the provincial office Cost: EUR 60 “Genio Civile.” The provincial office issues a Time: 1 day Comments: As per the requirements of article 20, certificate that states that the filing has been Cost: No cost paragraph 1, of Presidential Decree 380/2001— done correctly (“certificato di avvenuto deposito”). Comments: The water system is controlled on Construction (“Testo Unico Edilizia”), in order to At that point construction can start. The regional directly by the City of Catanzaro. The user must Law sets a time limit of 15 days from the filing * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 79 by which the provincial office has to issue the fire department can occur within the following completion of construction. The municipal office certificate stating the filing has been done. 60 days. has 30 days from the date of filing to issue the Together with the filing of the structural project, occupancy certificate, after which the silence-is- BuildCo appoints the engineering inspector Procedure 7*. Register the building at consent formula is applied. The 30-day term can the cadastre (“Agenzia del Territorio”) be interrupted to request modifications to the Procedure 5. Hire an independent Time: 5 days project and, within the first 15 days, only once, to professional to test the structure Cost: EUR 159 [EUR 44.00 to obtain the extract request additional documents. Time: 1 day digital map + EUR 65.00 to register the building The application must include, as attachments: Cost: EUR 6,000 in the land registry (“Catasto Terreni”) + EUR the land registry documentation; installation Comments: As established by Art. 67 of 50.00 to register the building in the building certificates; the structure certificate; the Presidential Decree 380/2001—on Construction registry (“Catasto Fabbricati”)] declaration of conformity to the approved project, (“Testo Unico Edilizia”), BuildCo must hire an Comments: Art. 25 of Presidential Decree to the draining of the walls, and to healthy independent structural engineering inspector, 380/2001—on Construction (“Testo Unico environments; the declaration of conformity who is a registered civil engineer (or architect) Edilizia”) requires BuildCo to register the building of works to existing legislation on accessibility not directly involved in the project, to make the at the land and building registry at the agency and on elimination of architectural barriers; the final tests on completed structures (“collaudo called “Agenzia del Territorio.” energy performance certification finalized to the statico”). This professional, called “collaudatore This is preliminary to the obtainment of the containment of fuel consumption. statico,” is appointed at the same time of the occupancy certificate. deposit of the structural project. Procedure 9. Receive on-site inspection The application is carried out by a registered by the fire department Chapter 9 of the Technical Regulations professional. for Construction (“Norme Tecniche per le Time: 1 day The registration of a new building entails a 2-step Cost: No cost Costruzioni”—2008) regulates this procedure. procedure: Structural engineering inspection entails the Comments: Once the SCIA is filed, a random a. Updating the Land Registry: on-site inspection by the fire department can assessment of the behavior and performance of all load-bearing parts of the building. During Updating the Land Registry is an online procedure occur within the following 60 days. construction the inspector will control any (or, one can also go personally to the local office of the “Agenzia del Territorio”) that consists in Procedure 10*. Apply for water and structural components bound to debar testing producing an updated map of the built lot by sewerage connection at Gran Sasso after completion. The director of structural works means of “Pregeo” software. The cost of this Acqua S.p.a communicates to the “collaudatore statico” that the structure has been completed. The “col- procedure is EUR 65.00. Time: 1 day laudatore” has 60 days to make the test. He has b. Updating the Buildings Registry: Cost: No cost to issue a test certificate (“Certificato di collaudo”) Once the Land Registry is updated, the Buildings Comments: BuildCo should contact the water and send it to the provincial office “Genio Civile.” Registry must be updated as well. The new authority to obtain the water and sewerage To issue the certificate, the inspector has to building must be notified by a registered connection. examine: professional by means of a standard procedure a. The test results for the materials used to build called “DOCFA,” that can be filed on line or at Procedure 11*. Receive an on-site the structure, previously sent to the laboratories the local Land Registry Office, within 30 days inspection and an estimate of by the director of structural works (chapter 11 after completion of the building’s windows. This installation costs by Gran Sasso Acqua of the Technical Regulations for Construction). procedure costs EUR 50.00 for each real estate S.p.a In case of reinforced concrete structures, the unit. The filing procedure also determines the Time: 1 day tests are done on a minimum of 3 specimens of taxable revenue value of the property, which is a Cost: No cost concrete and 3 of steel. necessary reference for tax returns and ownership Comments: The inspection is necessary to b. The report on completed structures (“Relazione changes. estimate the cost of the connection works. a strutture ultimate”) that is written by the director The Buildings Registry Office releases a copy of of structural works and filed at the provincial the documents and a filing certificate at the end Procedure 12*. Obtain water and office “Genio Civile.” of the same update session. sewerage installation from Gran Sasso After registering, the land registry office has 1 Acqua S.p.a Procedure 6. File the Certified year to verify the classification attributed by the Time: 20 days Notification of Starting Activity professional to the building. Cost: EUR 600 (“SCIA”) at the fire department The “Agenzia del Territorio” (the government Comments: Once the estimates are accepted by Time: 1 day revenue agency for taxing real estate property) the client, connection works are carried. Cost: EUR 216 provides complete procedure information to Comments: The Presidential Decree No. 11 of registered professionals at its website (“Sister” Procedure 13*. Obtain a telephone August, 2011 (“D.P.R. 151/11”) divides building platform). connection by Telecom Italia S.p.a. occupancies into 3 groups with different approval Time: 30 days Procedure 8. Apply for the occupancy procedures. Cost: EUR 450 certificate (“Certificato di agibilità”) at For activities of Category B (medium risk), the municipal office “Sportello Unico Comments: The company should contact BuildCo files a Certified Notification of Starting Edilizia” the telecommunication provider to obtain a Activity (“SCIA”) at the fire department. This telephone connection. document is a declaration produced by the Time: 30 days company that states the compliance of the Cost: EUR 40 [EUR 25.00 for administration fees building with the fire safety rules. The cost of the + EUR 14.62 for 1 stamp] procedure depends on the type of construction Comments: The request for an occupancy and activity. A random on-site inspection by the certificate must be filed at the municipal office “Sportello Unico Edilizia” within 15 days from * This procedure can be completed simultaneously with previous procedures. 80 DOING BUSINESS IN ITALY 2013 DEALING WITH CONSTRUCTION PERMITS Within 30 days from the filing of a “super-D.I.A.,” b. The report on completed structures (“Relazione Milan the municipality will verify all documents for a strutture ultimate”) that is written by the director formal compliance and completeness, and of structural works and filed at the municipal Warehouse value: EUR 1,040,000 (US$ 1,446,663) check the urbanization and construction fees office “Sportello Unico per l’Edilizia.” Data as of: June 2012 calculations. Procedure 5. File the Certified Procedure 1. Obtain clearance by the fire In 2007 the City Council approved updated Notification of Starting Activity department urbanization fees and refuse disposal taxes for (“SCIA”) at the fire department industrial constructions, together with a reduction Time: 60 days Time: 1 day on the same taxes when implementing energy Cost: EUR 150 saving or social housing projects. Cost: EUR 216 Comments: BuildCo must present a request Comments: The Presidential Decree No. 11 of for clearance (“Parere di conformità”) to the Procedure 3. File the structural projects August, 2011 (“D.P.R. 151/11”) divides building provincial fire department. The fire department at the municipal office “Sportello Unico occupancies into 3 groups with different approval verifies the conformity of the project to the fire per l’Edilizia” procedures. legislation and issues its response within 60 days. Time: 1 day For activities of Category B (medium risk), Clearance is needed to obtain the building permit. Cost: EUR 15 BuildCo files a Certified Notification of Starting Registered professionals can apply through the Comments: BuildCo must file all structural Activity (“SCIA”) at the fire department. This fire department website. projects at the “Sportello Unico per l’Edilizia” document is a declaration produced by the The procedure is regulated by a recent reform before structural construction starts. Required company that states the compliance of the (Presidential Decree 151/11 of August 1st, documents include the engineer’s certification building with the fire safety rules. The cost of the 2011—“D.P.R. 151/11”). The reform has introduced that his project implements all government procedure depends on the type of construction a simplified procedure. Building occupancies enforced Technical Regulations for Construction and activity. A random on-site inspection by the have been divided into 3 categories with different (Ministry Decree, January 14, 2008) and fire department can occur within the following approval procedures. Category A (low risk, whatever antiseismic requirements are prescribed 60 days. standard) no longer requires clearance by the fire by the territorial and town planning instruments. department. For Category B (medium risk) and C Also included are the geological and geotechnical Procedure 6*. Register the building at (high risk) clearance is still required. The present reports. the cadastre (“Agenzia del Territorio”) case is under Category B. Since the territory of Milan is rated as “mildly Time: 5 days The reform was introduced to conform with the seismic,” preventive authorization for antiseismic Cost: EUR 159 [EUR 44.00 to obtain the extract “Small Business Act” adopted by the European structures is not required. digital map + EUR 65.00 to register the building Community. in the land registry (“Catasto Terreni”) + EUR Procedure 4. Hire an independent 50.00 to register the building in the building Procedure 2*. Present a Starting professional to test the structure registry (“Catasto Fabbricati”)] Activity Declaration (“Super-D.I.A.”) to Time: 1 day the municipal office “Sportello Unico per Comments: Art. 25 of Presidential Decree l’Edilizia” Cost: EUR 6,000 380/2001—on Construction (“Testo Unico Comments: As established by Art. 67 of Edilizia”) requires BuildCo to register the building Time: 30 days at the land and building registry at the agency Presidential Decree 380/2001—on Construction Cost: EUR 242,254 [1st type of urbanization (“Testo Unico Edilizia”), BuildCo must hire an called “Agenzia del Territorio.” This is preliminary cost (“Oneri di urbanizzazione primaria”): EUR independent structural engineering inspector, to the obtainment of the occupancy certificate. 115,570 + 2nd type of urbanization cost (“Oneri who is a registered civil engineer (or architect) The application is carried out by a registered di urbanizzazione secondaria”): EUR 66,742 + Fees not directly involved in the project, to make the professional. related to waste disposal (“Smaltimento rifiuti”): final tests on completed structures (“collaudo The registration of a new building entails a 2-step EUR 59,592 + Administrative fees: EUR 335.70 + statico”). This professional, called “collaudatore procedure: Stamp: EUR 14.62]. statico,” is appointed at the same time of the a. Updating the Land Registry: Comments: BuildCo carries out preliminary deposit of the structural project. . Updating the Land Registry is an online procedure surveys that involve excavating and drilling to Chapter 9 of the Technical Regulations (or, one can also go personally to the local office check the presence of contaminant agents in the for Construction (“Norme Tecniche per le of the “Agenzia del Territorio”) that consists in soil (e.g., percolated chemicals, buried materials). Costruzioni”—2008) regulates this procedure. producing an updated map of the built lot by Thirty days before starting construction, BuildCo Structural engineering inspection entails the means of “Pregeo” software. The cost of this must file a “Starting Activity Declaration” assessment of the behavior and performance procedure is EUR 65.00. (“super-D.I.A.,” Denuncia di Inizio Attività), of all load-bearing parts of the building. During b. Updating the Buildings Registry: which substitutes the building permit, to the construction the inspector will control any Once the Land Registry is updated, the Buildings City Building Office. Attached documents must structural components bound to debar testing Registry must be updated as well. The new include official proof of ownership, construction after completion. The director of structural building must be notified by a registered drawings, a report signed by a registered architect works communicates to the “collaudatore statico” professional by means of a standard procedure or engineer asseverating compliance of the that the structure has been completed. The called “DOCFA,” that can be filed on line or at planned building with the town planning rules, “collaudatore” has 60 days to make the test. the local Land Registry Office, within 30 days construction regulations, safety norms, public He has to issue a test certificate (“Certificato after completion of the building’s windows. This health requirements, plus sufficient technical di collaudo”) and send it to the municipal procedure costs EUR 50.00 for each real estate documentation to allow proper evaluation of the office “Sportello Unico per l’Edilizia.” To issue the unit. The filing procedure also determines the impact on the landscape. BuildCo must also sub- certificate, the inspector has to examine: taxable revenue value of the property, which is a mit to the municipality the structural engineering project (together with the related geological and a. The test results for the materials used to build necessary reference for tax returns and ownership geotechnical reports), the heating systems and the structure, previously sent to the laboratories changes. energy saving projects, and urbanization and by the director of structural works (chapter 11 The Buildings Registry Office releases a copy of construction fees calculations. Urbanization fees of the Technical Regulations for Construction). the documents and a filing certificate at the end are payable to the municipality within 30 days In case of reinforced concrete structures, the of the same update session. after filing the “super-D.I.A..” Payment can also be tests are done on a minimum of 3 specimens of concrete and 3 of steel. After registering, the land registry office has 1 made in installments. year to verify the classification attributed by the professional to the building. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 81 The “Agenzia del Territorio” (the government Procedure 12*. Obtain a telephone Comments: Applications to the city of Napoli for revenue agency for taxing real estate property) connection by Telecom Italia S.p.a. building permits must carry a EUR 14.62 stamp provides complete procedure information to and be filed on forms that can be downloaded registered professionals at its website (“Sister” Time: 15 days from the township’s website. platform). Cost: EUR 200 As per article 20, paragraph 1, of Presidential Comments: The company should contact Decree 380/2001 on Construction, the following Procedure 7. Apply for the occupancy the telecommunication provider to obtain a documents must be attached to the application certificate (“Certificato di agibilità”) at telephone connection. form: the municipal office “Sportello Unico per l’Edilizia” a. A copy of the title of ownership of the property DEALING WITH CONSTRUCTION PERMITS for which the building permit is requested; Time: 60 days Naples b. A declaration of consistency with the city plan- Cost: EUR 15 Warehouse value: EUR 1,040,000 (US$ 1,446,663) ning instruments and the building regulations; Comments: The request for an occupancy Data as of: June 2012 c. The calculation of the building tax, that can be certificate must be filed at the municipal office done online; “Sportello Unico per l’Edilizia” within 15 days from Procedure 1. Obtain clearance by the fire completion of construction. The municipal office d. The project and the related documents, department including clearance by the fire department and has 60 days from the date of filing to issue the Time: 60 days the public health agency. occupancy certificate, after which the silence-is- consent formula is applied. The 60-day term can Cost: EUR 150 The procedure to obtain a building permit is be interrupted to request modifications to the Comments: BuildCo must present a request regulated by the Presidential Decree 380/2011 on project and, within the first 15 days, only once, to for clearance (“Parere di conformità”) to the Construction (national law) and by the Regional request additional documents. provincial fire department. The fire department Law 19/2001 (Article 1 in particular), modified Filed requests are randomly selected for further verifies the conformity of the project to the fire by Regional Law 16/2004. The regional law control. legislation and issues its response within 60 days. establishes shorter terms for the release of the Clearance is needed to obtain the building permit. building permit compare to the national law: The application must include, as attachments: Registered professionals can apply through the a. Within 60 days (national law sets a 120-day the land registry documentation; installation fire department website. term for cities with more than 100,000 inhabit- certificates; the structure certificate: the declaration of conformity to the approved project, The procedure is regulated by a recent reform ants) from the date in which the application to the draining of the walls, and to healthy (Presidential Decree 151/11 of August 1st, is filed, the municipal agency evaluates the environments; the declaration of conformity 2011—“D.P.R. 151/11”). The reform has introduced consistency of the project with the regulations. of works to existing legislation on accessibility a simplified procedure. Building occupancies The 60-day term can be interrupted to request and on elimination of architectural barriers; the have been divided into 3 categories with different modifications to the project and, within the energy performance certification finalized to the approval procedures. Category A (low risk, first 30 days, only once, to request additional containment of fuel consumption. standard) no longer requires clearance by the fire documents. department. For Category B (medium risk) and C b. After the 60-day term, within the following Procedure 8. Receive on-site inspection (high risk) clearance is still required. The present 30 days the municipal agency issues the final by the fire department case is under Category B. approval (“Provvedimento finale”). Time: 1 day The reform was introduced to conform with the Project documents of electrical and mechanical Cost: No cost “Small Business Act” adopted by the European installations must be filed at the municipality Comments: Once the SCIA is filed, a random Community. (office for building procedures “Servizio edilizia on-site inspection by the fire department can privata e Sportello Unico dell’edilizia”) prior to Procedure 2*. Obtain clearance by the construction. occur within the following 60 days. public health agency BuildCo must file all structural projects at the Procedure 9*. Apply for water Time: 30 days regional office “Genio Civile” once the building and sewerage connection at MM- Cost: EUR 103 permit is obtained and before structural construc- Metropolitana Milanese S.p.a. Comments: As per the requirements of article 20, tion starts. Time: 1 day paragraph 1, of Presidential Decree 380/2001— The building permit is released after the related Cost: No cost on Construction (“Testo Unico Edilizia”), in order fees have been paid. Comments: BuildCo should contact the water to obtain a building permit it is necessary to obtain clearance from the public health agency. Procedure 4. Obtain seismic authority to obtain the water and sewerage BuildCo apply to the local public health agency authorization from the regional office connection. (“ASL”) to obtain clearance. The cost of the “Genio Civile” Procedure 10*. Receive an on-site procedure depends on the size of the warehouse: Time: 66 days inspection and an estimate of EUR 32.80 if less than 100 square meters, EUR Cost: EUR 100 installation costs by MM-Metropolitana 102.50 if bigger than 100 square meters. Once Comments: As per article 94, paragraph 1, of Milanese S.p.a. obtained clearance, BuildCo can apply for the Presidential Decree 380/2001—on Construction Time: 1 day building permit. (“Testo Unico Edilizia”), in places subject to seis- Cost: No cost Procedure 3*. Obtain a building permit mic risk the structural project must be filed with Comments: The inspection is necessary to from the municipal office “Servizio the regional office before starting construction. estimate the cost of the connection works. edilizia privata e Sportello Unico National and regional laws regulate this dell’Edilizia” procedure. In Napoli it has to be filed once the Procedure 11*. Obtain water and building permit is obtained. Together with the sewerage installation from MM- Time: 85 days filing of the structural project, BuildCo appoints Metropolitana Milanese S.p.a. Cost: EUR 1,974 [EUR 759.68 for fees related to the engineering inspector. Time: 20 days the urbanization costs sustained by the munici- The regional office “Genio Civile” has 60 days to pality (“Oneri di urbanizzazione”) + EUR 1,200.00 Cost: EUR 600 approve the practice. If the public authority “Genio for administration fees (“Diritti di segreteria”) + Comments: Once the estimates are accepted by Civile” doesn’t meet the 60-day term deadline, EUR 14,62 for 1 stamp] the client, connection works are carried. BuildCo, within 15 days, can submit a technical report written by the engineering inspector, * This procedure can be completed simultaneously with previous procedures. 82 DOING BUSINESS IN ITALY 2013 who assumes the responsibility for checking the Procedure 7*. Register the building at formula is applied. The 30-day term can be consistency of the project. Potentially, this can the cadastre (“Agenzia del Territorio”) interrupted to request modifications to the be done in 1 day. On the basis of this report, the project and, within the first 15 days, only once, to regional office “Genio Civile” releases the seismic Time: 5 days request additional documents. authorization in 15 days. Cost: EUR 159 [EUR 44.00 to obtain the extract Filed requests are randomly selected for further digital map +EUR 65.00 to register the building in control. Procedure 5. Hire an independent the land registry (“Catasto Terreni”) + EUR 50.00 professional to test the structure The application must include, as attachments: to register the building in the building registry the land registry documentation; installation Time: 1 day (“Catasto Fabbricati”)] certificates; the structure certificate; the Cost: EUR 7,000 Comments: Art. 25 of Presidential Decree declaration of conformity to the approved project, Comments: As established by Art. 67 of 380/2001—on Construction (“Testo Unico to the draining of the walls, and to healthy Presidential Decree 380/2001—on Construction Edilizia”) requires BuildCo to register the building environments; the declaration of conformity (“Testo Unico Edilizia”), BuildCo must hire an at the land and building registry at the agency of works to existing legislation on accessibility independent structural engineering inspector, called “Agenzia del Territorio.” and on elimination of architectural barriers; the who is a registered civil engineer (or architect) This is preliminary to the obtainment of the energy performance certification finalized to the not directly involved in the project, to make the occupancy certificate. containment of fuel consumption. final tests on completed structures (“collaudo The application is carried out by a registered statico”). This professional, called “collaudatore professional. Procedure 9. Receive on-site inspection statico,” is appointed at the same time of the by the fire department The registration of a new building entails a 2-step deposit of the structural project. procedure: Time: 1 day Chapter 9 of the Technical Regulations a. Updating the Land Registry: Cost: No cost for Construction (“Norme Tecniche per le Comments: Once the SCIA is filed, a random Updating the Land Registry is an online procedure Costruzioni”—2008) regulates this procedure. on-site inspection by the fire department can (or, one can also go personally to the local office Structural engineering inspection entails the of the “Agenzia del Territorio”) that consists in occur within the following 60 days. assessment of the behavior and performance producing an updated map of the built lot by of all load-bearing parts of the building. During Procedure 10*. Apply for water means of “Pregeo” software. The cost of this connection at Arin S.p.a. construction the inspector will control any procedure is EUR 65.00. structural components bound to debar testing Time: 1 day b. Updating the Buildings Registry: after completion. The director of structural Cost: No cost works communicates to the “collaudatore statico” Once the Land Registry is updated, the Buildings Registry must be updated as well. The new Comments: BuildCo can mail, e-mail or phone that the structure has been completed. The ARIN to apply for a connection to the public “collaudatore” has 60 days to make the test. building must be notified by a registered professional by means of a standard procedure water mains. Land/Building Registry data and a He has to issue a test certificate (“Certificato di copy of the building permit are required. collaudo”) and send it to the regional office “Genio called “DOCFA,” that can be filed on line or at Civile.” To issue the certificate, the inspector has the local Land Registry Office, within 30 days Procedure 11*. Apply for sewerage to examine: after completion of the building’s windows. This connection at the “Servizio Fognature e procedure costs EUR 50.00 for each real estate impianti idrici” of the municipality a. The test results for the materials used to build unit. The filing procedure also determines the the structure, previously sent to the laboratories Time: 1 day taxable revenue value of the property, which is a by the director of structural works (chapter 11 Cost: No cost necessary reference for tax returns and ownership of the Technical Regulations for Construction). changes. Comments: BuildCo must apply for authorization In case of reinforced concrete structures, the The Buildings Registry Office releases a copy of to the Water and Disposal Services Office of the tests are done on a minimum of 3 specimens of the documents and a filing certificate at the end municipality of Naples before actually building concrete and 3 of steel. of the same update session. the connection. This office will authorize the work b. The report on completed structures (“Relazione only after inspecting the area. This office will also a strutture ultimate”) that is written by the director After registering, the land registry office has 1 obtain clearance by ATO2 Campania. of structural works and filed at the regional office year to verify the classification attributed by the professional to the building. Application documents include registered techni- “Genio Civile.” cian’s project in the form of a written description The “Agenzia del Territorio” (the government Procedure 6. File the Certified and a drawing of the area showing the conduits’ revenue agency for taxing real estate property) Notification of Starting Activity route from the building to the public sewer. provides complete procedure information to (“SCIA”) at the fire department registered professionals at its website (“Sister” Procedure 12*. Receive an on-site Time: 1 day platform). inspection and an estimate of Cost: EUR 216 Procedure 8. Apply for the occupancy installation costs from Arin S.p.a. and Comments: The Presidential Decree No. 11 of certificate (“Certificato di agibilità”) at from the “Servizio Fognature e impianti August, 2011 (“D.P.R. 151/11”) divides building the municipal office “Sportello edilizia idrici” of the municipality. occupancies into 3 groups with different approval privata e Sportello Unico dell’Edilizia” Time: 1 day procedures. Cost: EUR 207 [EUR 103.29 for each on-site Time: 30 days For activities of Category B (medium risk), visits by the municipality—usually the minimum Cost: EUR 550 [EUR 14.62 for 1 stamp + BuildCo files a Certified Notification of Starting is 2 visits.] EUR 535.00 for administration fees (“Diritti Activity (“SCIA”) at the fire department. This Comments: The inspection is necessary to disegreteria”)] document is a declaration produced by the estimate the cost of the connection works. company that states the compliance of the Comments: The request for an occupancy building with the fire safety rules. The cost of the certificate must be filed at the municipal office Procedure 13*. Obtain water and procedure depends on the type of construction “Sportello edilizia privata e Sportello Unico sewerage installation and activity. A random on-site inspection by the dell’Edilizia” within 15 days from completion of Time: 37 days fire department can occur within the following construction. The municipal office has 30 days from the date of filing to issue the occupancy Cost: EUR 700 60 days. certificate, after which the silence-is-consent * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 83 Comments: Water connections must follow primaria”) + EUR 13,526.24 for fees related to the Since Padova is rated as “low seismic,” preventive all recommendations issued during the site 2nd type of urbanization costs sustained by the authorization for antiseismic structures is not inspection. municipality (“Oneri di urbanizzazione second- required. Sewer connections must strictly comply with the aria”) + EUR 4,682.16 for fees related to waste disposal (“Smaltimento rifiuti”) + EUR 210.00 for Procedure 4. Hire an independent municipal authorized project. administration fees + EUR 14.62 for 1 stamp] professional to test the structure Procedure 14. Obtain a drain Comments: Applications to the city of Padova for Time: 1 day authorization from “A.T.O.” building permits must carry a EUR 14.62 stamp Cost: EUR 6,875 Time: 15 days and be filed on forms that can be downloaded Comments: As established by Art. 67 of Cost: EUR 250 from the township’s website. Presidential Decree 380/2001—on Construction Comments: BuildCo requires the drain As per article 20, paragraph 1, of Presidential (“Testo Unico Edilizia”), BuildCo must hire an authorization to “A.T.O. 2 Campania.” To obtain Decree 380/2001 on Construction, the following independent structural engineering inspector, the authorization BuildCo carries out analysis on documents must be attached to the application who is a registered civil engineer (or architect) samples taken from a separate well. The cost of form: not directly involved in the project, to make the analysis varies from EUR 250 to EUR 500. a. A copy of the title of ownership of the property final tests on completed structures (“collaudo Once the authorization has been obtained, for which the building permit is requested; statico”). This professional, called “collaudatore BuildCo informs ARPAC—the Regional Agency statico,” is appointed at the same time of the b. A declaration of consistency with the city plan- for Environment Protection, that can perform its deposit of the structural project. ning instruments and the building regulations; own analysis of waste water in order to verify the Chapter 9 of the Technical Regulations c. The calculation of the building tax, that can be reports presented by BuildCo. for Construction (“Norme Tecniche per le done online; Costruzioni”—2008) regulates this procedure. Procedure 15*. Obtain a telephone d. The project and the related documents. These Structural engineering inspection entails the connection by Telecom Italia S.p.a. include clearance by the fire department and assessment of the behavior and performance self-certification on the conformity of the project Time: 20 days of all load-bearing parts of the building. During to health and hygiene rules. Cost: EUR 250 construction the inspector will control any Project documents of electrical and mechanical structural components bound to debar testing Comments: The company should contact installations must be filed at the municipality the telecommunication provider to obtain a after completion. The director of structural prior to construction. works communicates to the “collaudatore statico” telephone connection. BuildCo must file all structural projects at the that the structure has been completed. The “Settore Edilizia Privata” at the same time as the “collaudatore” has 60 days to make the test. DEALING WITH CONSTRUCTION PERMITS application for the building permit, or, in any case, He has to issue a test certificate (“Certificato di Padua before structural construction starts. Required collaudo”) and send it to the municipal office Warehouse value: EUR 1,040,000 documents include the engineer’s certification “Sportello Edilizia Privata.” To issue the certificate, (US$ 1,446,663) that his project implements all government the inspector has to examine: Data as of: June 2012 enforced Technical Regulations for Construction a. The test results for the materials used to build (Ministry Decree, January 14, 2008) and the structure, previously sent to the laboratories Procedure 1. Obtain clearance by the fire whatever antiseismic requirements are prescribed by the director of structural works (chapter 11 department by the territorial and town planning instruments. of the Technical Regulations for Construction). Time: 60 days Also included are the geological and geotechnical In case of reinforced concrete structures, the reports. tests are done on a minimum of 3 specimens of Cost: EUR 150 Within 120 days from the date in which the concrete and 3 of steel. Comments: BuildCo must present a request application is filed, the municipal agency b. The report on completed structures (“Relazione for clearance (“Parere di conformità”) to the evaluates the consistency of the project with the a strutture ultimate”) that is written by the director provincial fire department. The fire department regulations. The 120-day term can be interrupted of structural works and filed at the municipal verifies the conformity of the project to the fire to request modifications to the project, and, office “Sportello Edilizia Privata.” legislation and issues its response within 60 days. within the first 60 days, only once, to request Clearance is needed to obtain the building permit. additional documents. Procedure 5. File the Certified Registered professionals can apply through the After the 120-day term, within the following Notification of Starting Activity fire department website. 30 days the municipal agency issues the final (“SCIA”) at the fire department The procedure is regulated by a recent reform approval (“Provvedimento finale”). Time: 1 day (Presidential Decree 151/11 of August 1st, 2011— “D.P.R. 151/11”). The reform has introduced a Since July 2011, a Decree for development Cost: EUR 216 simplified procedure. Building occupancies have (“Decreto Sviluppo”) introduced a “silence-is- Comments: The Presidential Decree No. 11 of been divided into 3 categories with different consent” principle on national scale, meaning August, 2011 (“D.P.R. 151/11”) divides building approval procedures. Category A (low risk, that no response by the municipality equals final occupancies into 3 groups with different approval standard) no longer requires clearance by the fire approval, once the time limit has expired. procedures. department. For Category B (medium risk) and C The building permit is released after the related For activities of Category B (medium risk), (high risk) clearance is still required. The present fees have been paid. BuildCo files a Certified Notification of Starting case is under Category B. Activity (“SCIA”) at the fire department. This Procedure 3. File the structural projects The reform was introduced to conform with the at the municipal office “Settore Edilizia document is a declaration produced by the “Small Business Act” adopted by the European company that states the compliance of the Privata” Community. building with the fire safety rules. The cost of the Time: 1 day procedure depends on the type of construction Procedure 2*. Obtain a building permit Cost: EUR 15 and activity. A random on-site inspection by the from the municipal office “Settore Comments: Before structural construction starts, fire department can occur within the following Edilizia Privata” BuildCo must file all structural projects at the 60 days. Time: 135 days “Settore Edilizia Privata.” Together with the filing Cost: EUR 35,341 [EUR 16,907.80 for fees related of the structural project, BuildCo appoints the to the 1st type of urbanization costs sustained engineering inspector. by the municipality (“Oneri di urbanizzazione * This procedure can be completed simultaneously with previous procedures. 84 DOING BUSINESS IN ITALY 2013 Procedure 6*. Register the building at project and, within the first 15 days, only once, to Comments: BuildCo must present a request the cadastre (“Agenzia del Territorio”) request additional documents. for clearance (“Parere di conformità”) to the Filed requests are randomly selected for further provincial fire department. The fire department Time: 5 days verifies the conformity of the project to the fire control. Cost: EUR 159 [EUR 44.00 to obtain the extract legislation and issues its response within 60 days. The application must include, as attachments: digital map + EUR 65.00 to register the building Clearance is needed to obtain the building permit. the land registry documentation; installation in the land registry (“Catasto Terreni” + EUR 50.00 Registered professionals can apply through the certificates; the structure certificate; the to register the building in the building registry fire department website. declaration of conformity to the approved project, (“Catasto Fabbricati”)] The procedure is regulated by a recent reform to the draining of the walls, and to healthy Comments: Art. 25 of Presidential Decree environments; the declaration of conformity (Presidential Decree 151/11 of August 1st, 2011— 380/2001—on Construction (“Testo Unico of works to existing legislation on accessibility “D.P.R. 151/11”). The reform has introduced a Edilizia”) requires BuildCo to register the building and on elimination of architectural barriers; the simplified procedure. Building occupancies have at the land and building registry at the agency energy performance certification finalized to the been divided into 3 categories with different called “Agenzia del Territorio.” containment of fuel consumption. approval procedures. Category A (low risk, This is preliminary to the obtainment of the standard) no longer requires clearance by the fire occupancy certificate. Procedure 8. Receive on-site inspection department. For Category B (medium risk) and C The application is carried out by a registered by the fire department (high risk) clearance is still required. The present professional. Time: 1 day case is under Category B. The registration of a new building entails a 2-step Cost: No cost The reform was introduced to conform with the procedure: Comments: Once the SCIA is filed, a random “Small Business Act” adopted by the European on-site inspection by the fire department can Community. a. Updating the Land Registry: Updating the Land Registry is an online procedure occur within the following 60 days. Procedure 2*. Obtain clearance by the (or, one can also go personally to the local office Procedure 9*. Apply for water and public health agency of the “Agenzia del Territorio”) that consists in sewerage connection at Gruppo Time: 45 days producing an updated map of the built lot by AcegasAps Cost: EUR 160 means of “Pregeo” software. The cost of this procedure is EUR 65.00. Time: 1 day Comments: As per the requirements of article 20, Cost: No cost paragraph 1, of Presidential Decree 380/2001— b. Updating the Buildings Registry: Comments: BuildCo should contact the water on Construction (“Testo Unico Edilizia”), in order Once the Land Registry is updated, the Buildings to obtain a building permit it is necessary to Registry must be updated as well. The new authority to obtain the water and sewerage connection. obtain clearance from the public health agency. building must be notified by a registered professional by means of a standard procedure Procedure 10*. Receive an on-site Procedure 3*. Obtain a building permit called “DOCFA,” that can be filed on line or at inspection and an estimate of from the municipal office “Sportello the local Land Registry Office, within 30 days installation costs by Gruppo AcegasAps Unico Edilizia Privata” after completion of the building’s windows. This Time: 200 days Time: 1 day procedure costs EUR 50.00 for each real estate Cost: No cost Cost: EUR 13,827 [EUR 14.76 for each square unit. The filing procedure also determines the meter (14.76*929= EUR 13,712.04) for the fees taxable revenue value of the property, which is a Comments: The inspection is necessary to related to the building permit + EUR 100.00 for necessary reference for tax returns and ownership estimate the cost of the connection works. administrative fees + EUR 14.62 for stamp]. changes. Procedure 11*. Obtain water and Comments: Applications to the city of Palermo The Buildings Registry Office releases a copy of sewerage installation from Gruppo for building permits must carry a EUR 14.62 the documents and a filing certificate at the end AcegasAps stamp and be filed on forms that can be of the same update session. Time: 53 days downloaded from the township’s website. After registering, the land registry office has 1 Cost: EUR 3,720 As per article 20, paragraph 1, of Presidential year to verify the classification attributed by the Decree 380/2001 on Construction, the following professional to the building. Comments: Once the estimates are accepted by documents must be attached to the application The “Agenzia del Territorio” (the government the client, connection works are carried. form: revenue agency for taxing real estate property) Procedure 12*. Obtain a telephone a. A copy of the title of ownership of the property provides complete procedure information to connection by Telecom Italia S.p.a. for which the building permit is requested; registered professionals at its website (“Sister” platform). Time: 15 days b. A declaration of consistency with the city plan- Cost: EUR 480 ning instruments and the building regulations; Procedure 7. Apply for the occupancy Comments: The company should contact c. The calculation of the building tax; certificate (“Certificato di agibilità”) the telecommunication provider to obtain a d. The project and the related documents, at the municipal office “Settore edilizia telephone connection. including clearance by the fire department and privata” the public health agency. Time: 30 days DEALING WITH CONSTRUCTION PERMITS Project documents of electrical and mechanical Cost: EUR 75 [EUR 14.62 for 1 stamp + 60.00 for Palermo installations must be filed at the municipality administration fees] (office for building procedures “Sportello Unico Comments: The request for an occupancy Warehouse value: EUR 1,040,000 Edilizia Privata” prior to construction). certificate must be filed at the municipal office (US$ 1,446,663) Within 120 days from the date in which the “Settore Edilizia Privata” within 15 days from Data as of: June 2012 application is filed, the municipal Agency completion of construction. The municipal office Procedure 1. Obtain clearance by the evaluates the consistency of the project with the has 30 days from the date of filing to issue the Fire Departmentfire department regulations. The 120-day term can be interrupted occupancy certificate, after which the silence-is- to request modifications to the project, and, Time: 60 days consent formula is applied. The 30-day term can within the first 60 days, only once, to request be interrupted to request modifications to the Cost: EUR 150 additional documents. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 85 After the 120-day term, within the following tests are done on a minimum of 3 specimens of After registering, the land registry office has 1 30 days the municipal Agency issues the final concrete and 3 of steel. year to verify the classification attributed by the approval (“Provvedimento finale”). b. The report on completed structures (“Relazione professional to the building. Since July 2011, a Decree for development a strutture ultimate”) that is written by the director The “Agenzia del Territorio” (the government (“Decreto Sviluppo”) introduced a “silence-is- of structural works and filed at the regional office revenue agency for taxing real estate property) consent” principle on national scale, meaning “Genio Civile.” provides complete procedure information to that no response by the municipality equals final registered professionals at its website (“Sister” approval, once the time limit has expired. Procedure 6. File the Certified platform). Notification of Starting Activity The building permit is released after the related (“SCIA”) at the fire department Procedure 8. Apply for the occupancy fees have been paid. Time: 1 day certificate (“Certificato di agibilità”) at Procedure 4. File the structural project Cost: EUR 216 the municipal office “Sportello Unico at the regional office “Genio Civile” Edilizia Privata” Comments: The Presidential Decree No. 11 of Time: 1 day August, 2011 (“D.P.R. 151/11”) divides building Time: 30 days Cost: EUR 329 [EUR 300.00 for administration occupancies into 3 groups with different approval Cost: EUR 45 [EUR 30.00 for administration fees fees + EUR 29.29 for 2 stamps] procedures. + EUR 14.62 for 1 stamp] Comments: As per article 94, paragraph 1, of For activities of Category B (medium risk), Comments: The request for an occupancy Presidential Decree 380/2001—on Construction BuildCo files a Certified Notification of Starting certificate must be filed at the municipal office (“Testo Unico Edilizia”), in places subject to seis- Activity (“SCIA”) at the fire department. This “Sportello Unico Edilizia Privata” within 15 days mic risk the structural project must be filed with document is a declaration produced by the from completion of construction. The municipal the regional office before starting construction. company that states the compliance of the office has 30 days from the date of filing to This procedure is regulated by national and building with the fire safety rules. The cost of the issue the occupancy certificate, after which regional laws. The Sicilian Regional Law 7/2003 procedure depends on the type of construction the “silence-is-consent” formula is applied. states that after the filing of the structural project, and activity. A random on-site inspection by the The 30-day term can be interrupted to request construction can start, with no need of waiting for fire department can occur within the following modifications to the project and, within the a formal authorization. The authorization is issued 60 days. first 15 days, only once, to request additional within 60 days from the filing. In the meantime, documents. Procedure 7*. Register the building at The application must include, as attachments: all the responsibility for the structural works are the cadastre (“Agenzia del Territorio”) the land registry documentation; installation on the professional who signed the project. Time: 5 days certificates; the structure certificate; the The structural project has to be filed once the building permit is obtained. Together with the Cost: EUR 159 [EUR 44.00 to obtain the extract declaration of conformity to the approved project, filing of the structural project, BuildCo appoints digital map + EUR 65.00 to register the building to the draining of the walls, and to healthy the engineering inspector. in the land registry (“Catasto Terreni”) + EUR environments; the declaration of conformity 50.00 to register the building in the building of works to existing legislation on accessibility Procedure 5. Hire an independent registry (“Catasto Fabbricati”)] and on elimination of architectural barriers; the professional to test the structure Comments: Art. 25 of Presidential Decree energy performance certification finalized to the Time: 1 day 380/2001—on Construction (“Testo Unico containment of fuel consumption. Cost: EUR 6,000 Edilizia”) requires BuildCo to register the building Procedure 9. Receive on-site inspection Comments: As established by Art. 67 of at the land and building registry at the agency by the fire department Presidential Decree 380/2001—on Construction called “Agenzia del Territorio.” This is preliminary to the obtainment of the occupancy certificate. Time: 1 day (“Testo Unico Edilizia”), BuildCo must hire an The application is carried out by a registered Cost: No cost independent structural engineering inspector, who is a registered civil engineer (or architect) professional. Comments: Once the SCIA is filed, a random not directly involved in the project, to make the The registration of a new building entails a 2-step on-site inspection by the fire department can final tests on completed structures (“collaudo procedure: occur within the following 60 days. statico”). This professional, called “collaudatore a. Updating the Land Registry: Procedure 10*. Apply for water statico,” is appointed at the same time of the Updating the Land Registry is an online procedure connection at AMAP deposit of the structural project. (or, one can also go personally to the local office Time: 1 day Chapter 9 of the Technical Regulations of the “Agenzia del Territorio”) that consists in Cost: No cost for Construction (“Norme Tecniche per le producing an updated map of the built lot by Costruzioni”—2008) regulates this procedure. means of “Pregeo” software. The cost of this Comments: BuildCo should contact the water procedure is EUR 65.00. authority to obtain the water and sewerage Structural engineering inspection entails the connection. assessment of the behavior and performance b. Updating the Buildings Registry: of all load-bearing parts of the building. During Once the Land Registry is updated, the Buildings Procedure 11*. Apply for sewerage construction the inspector will control any Registry must be updated as well. The new connection at the municipal office structural components bound to debar testing building must be notified by a registered “Sportello Unico Edilizia Privata” after completion. The director of structural professional by means of a standard procedure Time: 1 day works communicates to the “collaudatore statico” called “DOCFA,” that can be filed on line or at that the structure has been completed. The Cost: EUR 90 [EUR 75.00 for administration cost the local Land Registry Office, within 30 days “collaudatore” has 60 days to make the test. + EUR 14.62 for 1 stamp] after completion of the building’s windows. This He has to issue a test certificate (“Certificato di procedure costs EUR 50.00 for each real estate Comments: BuildCo must file an application form collaudo”) and send it to the regional office “Genio unit. The filing procedure also determines the with a duty-stamp together with a project for a Civile.” To issue the certificate, the inspector has taxable revenue value of the property, which is a connection authorization at the city of Palermo. to examine: necessary reference for tax returns and ownership The city of Palermo contacts AMAP, which a. The test results for the materials used to build changes. provides a cost assessment. the structure, previously sent to the laboratories The Buildings Registry Office releases a copy of by the director of structural works (chapter 11 the documents and a filing certificate at the end of the Technical Regulations for Construction). of the same update session. In case of reinforced concrete structures, the * This procedure can be completed simultaneously with previous procedures. 86 DOING BUSINESS IN ITALY 2013 Procedure 12*. Receive an on-site Procedure 3*. Obtain a building permit with the regional office “Dipartimento Infrastrutture inspection and an estimate of from the municipal office “Sportello e Opere Pubbliche” before starting construction. installation costs by AMAP Unico per l’Edilizia” This procedure is regulated by national and regional laws. In Potenza it has to be filed prior to Time: 1 day Time: 75 days obtaining the building permit. Cost: No cost Cost: EUR 179,977 [EUR 1,000.00 for admin- Together with the filing of the structural project, Comments: The inspection is necessary to istration fees + EUR 14.62 for 1 stamp + EUR BuildCo appoints the engineering inspector. estimate the cost of the connection works. 178,962.56 for fees related to the urbanization costs sustained by the municipality (“Oneri di Procedure 5. Hire an independent Procedure 13*. Obtain water and urbanizzazione primaria e secondaria”) and fees professional to test the structure sewerage installation from AMAP related to waste disposal (“Smaltimento rifiuti”). Time: 1 day Time: 72 days These fees are calculated on the basis of the square meters of the construction. The cost is Cost: EUR 4,000 Cost: EUR 2,000 EUR 137.60 for each square meter. Therefore: Comments: As established by Art. 67 of Comments: Once the estimates are accepted by Presidential Decree 380/2001—on Construction 1,300.60*137.60= EUR 178,962.56)] the client, connection works are carried out at the (“Testo Unico Edilizia”), BuildCo must hire an pace of 1 connection per day. Comments: Applications to the city of Potenza for building permits must carry a EUR 14.62 independent structural engineering inspector, Procedure 14*. Obtain a telephone stamp. who is a registered civil engineer (or architect) connection by Telecom Italia S.p.a. not directly involved in the project, to make the As per article 20, paragraph 1, of Presidential final tests on completed structures (“collaudo Time: 15 days Decree 380/2001 on Construction, the following statico”). This professional, called “collaudatore Cost: EUR 150 documents must be attached to the application statico,” is appointed at the same time of the form: Comments: The company should contact deposit of the structural project. the telecommunication provider to obtain a a. A copy of the title of ownership of the property Chapter 9 of the Technical Regulations telephone connection. for which the building permit is requested; for Construction (“Norme Tecniche per le b. A declaration of consistency with the city plan- Costruzioni”—2008) regulates this procedure. DEALING WITH CONSTRUCTION PERMITS ning instruments and the building regulations; Structural engineering inspection entails the Potenza c. The calculation of the building tax; assessment of the behavior and performance d. The project and the related documents, of all load-bearing parts of the building. During Warehouse value: EUR 1,040,000 (US$ 1,446,663) including clearance by the fire department and construction the inspector will control any Data as of: June 2012 the public health agency. structural components bound to debar testing Procedure 1. Obtain clearance by the fire To obtain the building permit BuildCo has to after completion. The director of structural works department present the structural project to the regional communicates to the “collaudatore statico” office for seismic authorization. that the structure has been completed. The Time: 60 days For the obtainment of building permits, the “collaudatore” has 60 days to make the test. Cost: EUR 150 He has to issue a test certificate (“Certificato national law sets shorter terms for cities with less Comments: BuildCo must present a request di collaudo”) and send it to the regional office than 100,000 inhabitants, like Potenza. for clearance (“Parere di conformità”) to the “Dipartimento Infrastrutture e Opere Pubbliche” and provincial fire department. The fire department Within 60 days from the date in which the to the municipality. To issue the certificate, the verifies the conformity of the project to the fire application is filed, the municipal office inspector has to examine: legislation and issues its response within 60 days. evaluates the consistency of the project with the regulations. The 60-day term can be interrupted a. The test results for the materials used to build Clearance is needed to obtain the building permit. the structure, previously sent to the laboratories Registered professionals can apply through the to request modifications to the project and, within the first 30 days, only once, to request additional by the director of structural works (chapter 11 fire department website. of the Technical Regulations for Construction). documents. The procedure is regulated by a recent reform In case of reinforced concrete structures, the (Presidential Decree 151/11 of August 1st, 2011— After the 60-day term, within the following 30 tests are done on a minimum of 3 specimens of “D.P.R. 151/11”). The reform has introduced a days the municipal office issues the final approval concrete and 3 of steel. simplified procedure. Building occupancies have (“Provvedimento finale”). b. The report on completed structures (“Relazione been divided into 3 categories with different Since July 2011, a Decree for development a strutture ultimate”) that is written by the director approval procedures. Category A (low risk, (“Decreto Sviluppo”) introduced a “silence-is- of structural works and filed both at the regional standard) no longer requires clearance by the fire consent” principle on national scale, meaning office and the municipality. department. For Category B (medium risk) and C that no response by the municipality equals final (high risk) clearance is still required. The present approval, once the time limit has expired. Procedure 6. File the Certified case is under Category B. Project documents of electrical and mechanical Notification of Starting Activity The reform was introduced to conform with the installations must be filed at the municipality (“SCIA”) at the fire department “Small Business Act” adopted by the European (office for building procedures “Sportello Unico per Time: 1 day Community. l’Edilizia”) prior to construction. Cost: EUR 216 The building permit is released after the related Comments: The Presidential Decree No. 11 of Procedure 2*. Obtain clearance by the fees have been paid. public health agency August, 2011 (“D.P.R. 151/11”) divides building Procedure 4*. File the structural project occupancies into 3 groups with different approval Time: 30 days at the regional office “Dipartimento procedures. Cost: EUR 200 Infrastrutture e Opere Pubbliche” For activities of Category B (medium risk), Comments: As per the requirements of article 20, BuildCo files a Certified Notification of Starting paragraph 1, of Presidential Decree 380/2001— Time: 30 days Activity (“SCIA”) at the fire department. This on Construction (“Testo Unico Edilizia”), in order Cost: EUR 15 document is a declaration produced by the to obtain a building permit it is necessary to Comments: As per article 94, paragraph 1, of company that states the compliance of the obtain clearance from the public health agency. Presidential Decree 380/2001—on Construction building with the fire safety rules. The cost of the (“Testo Unico Edilizia”), in places subject to seismic risk the structural project must be filed * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 87 procedure depends on the type of construction occupancy certificate, after which the silence-is- DEALING WITH CONSTRUCTION PERMITS and activity. A random on-site inspection by the consent formula is applied. The 30-day term can fire department can occur within the following be interrupted to request modifications to the Rome 60 days. project and, within the first 15 days, only once, to Warehouse value: EUR 1,040,000 (US$ 1,446,663) request additional documents. Data as of: June 2012 Procedure 7*. Register the building at Filed requests are randomly selected for further Procedure 1. Obtain nulla osta from the cadastre (“Agenzia del Territorio”) control. Time: 5 days the Regional Technical Office (“Genio The application must include, as attachments: Civile”) Cost: EUR 159 [EUR 44.00 to obtain the extract the land registry documentation; installation digital map + 65.00 to register the building in Time: 30 days certificates; the structure certificate; the the land registry (“Catasto Terreni”) + EUR 50.00 declaration of conformity to the approved project, Cost: EUR 1,275 [EUR 90 for application fees to register the building in the building registry to the draining of the walls, and to healthy (“diritti di segreteria”) + EUR 14.62 for 1 stamp (“Catasto Fabbricati”)] environments; the declaration of conformity + EUR 1,170 for the examination and filing of a Comments: Art. 25 of Presidential Decree of works to existing legislation on accessibility project for a 3,900 cubic meters warehouse] 380/2001—on Construction (“Testo Unico and on elimination of architectural barriers; the Comments: The request for a building permit Edilizia”) requires BuildCo to register the building energy performance certification finalized to the along with the technical details of the construc- at the land and building registry at the agency containment of fuel consumption. tion project must be preliminary filed with the called “Agenzia del Territorio.” one-stop shop (i.e. Sportello Unico dell’Edilizia). This is preliminary to the obtainment of the Procedure 9. Receive on-site inspection Then the Sportello Unico dell’Edilizia transmits occupancy certificate. by the fire department the request and all the technical documentation Time: 1 day to the Genio Civile where the internal control The application is carried out by a registered Cost: No cost commitee provides for checking the compliance professional. of the project with the technical provisions set The registration of a new building entails a 2-step Comments: Once the SCIA is filed, a random forth by the competent administration. procedure: on-site inspection by the fire department can occur within the following 60 days. On March 6, 2008 the specific technical a. Updating the Land Registry: provisions were amended by the Ministry Decree Updating the Land Registry is an online procedure Procedure 10*. Apply for water and no. 29581 of January 14, 2008. (or, one can also go personally to the local office sewerage connection at Acquedotto The Regional Office “Genio Civile” gives the of the “Agenzia del Territorio”) that consists in Lucano S.p.a. seismic authorization. This authorization is producing an updated map of the built lot by Time: 1 day mandatory for the Building Permit to be valid. means of “Pregeo” software. The cost of this Cost: EUR 30 Structural projects are randomly selected for procedure is EUR 65.00. Comments: BuildCo should contact the water control in the first ten days of the month following b. Updating the Buildings Registry: application. Projects that are not selected are authority to obtain the water and sewerage Once the Land Registry is updated, the Buildings connection. automatically authorized. However, the applicant Registry must be updated as well. The new must wait until a formal letter of seismic approval building must be notified by a registered Procedure 11*. Apply for authorization is received. The letter arrives approximately professional by means of a standard procedure to the excavation works at the within two weeks. called “DOCFA,” that can be filed on line or at municipality (“Ufficio Viabilità”) the local Land Registry Office, within 30 days Time: 1 day Procedure 2. Obtain building permit after completion of the building’s windows. This Time: 135 days Cost: EUR 61 procedure costs EUR 50.00 for each real estate Cost: EUR 38,661 [EUR 1,000 for the application unit. The filing procedure also determines the Comments: BuildCo must also apply to the + EUR 150 for the project clearance from the fire taxable revenue value of the property, which is a municipality to have the authorization for the department + EUR 600 for the project clearance necessary reference for tax returns and ownership excavation work. from the public health agency. Building permit changes. Procedure 12*. Receive an on-site fee (primary + secondary urbanization) = EUR The Buildings Registry Office releases a copy of inspection and an estimate of 36,911.35] the documents and a filing certificate at the end installation costs by Acquedotto Lucano Comments: The application for a building permit of the same update session. S.p.a. is filed with the Sportello Unico dell’Edilizia (SUAP). After registering, the land registry office has 1 Time: 1 day The company must file proof of title of ownership year to verify the classification attributed by the to the property for which the building permit is Cost: No cost professional to the building. requested, as well as the project design drawings Comments: The inspection is necessary to signed by an engineer or an architect, including The “Agenzia del Territorio” (the government estimate the cost of the connection works. the drawings relating to electric utilities, air revenue agency for taxing real estate property) provides complete procedure information to Procedure 13*. Obtain water and conditioning systems, and fire protection devices. registered professionals at its website (“Sister” sewerage installation from Acquedotto The SUAP will also request project clearance platform). Lucano S.p.a. from the Fire Department and from the Public Health Agency. Within 120 days from the date Procedure 8. Apply for the occupancy Time: 90 days in which the application is filed, the municipal certificate (“Certificato di agibilità”) at Cost: EUR 2,000 agency evaluates the consistency of the project the municipal office “Sportello Unico per Comments: Once the estimates are accepted by with the regulations. The 120-day term can l’Edilizia” the client, connection works are carried. be interrupted to request modifications to the Time: 30 days project, and, within the first 60 days, only once, to Procedure 14*. Obtain a telephone request additional documents.After the 120-day Cost: EUR 45 [EUR 30.00 for administration fees connection by Telecom Italia S.p.a. + EUR 14.62 for 1 stamp] term, within the following 30 days the municipal Time: 30 days agency issues the final approval (“Provvedimento Comments: The request for an occupancy Cost: EUR 450 finale”). certificate must be filed at the municipal office “Sportello Unico per l’Edilizia” within 15 days from Comments: The company should contact The fees for the issuance of the building permit completion of construction. The municipal office the telecommunication provider to obtain a are calculated based on the building value and has 30 days from the date of filing to issue the telephone connection. on the urbanization costs sustained by the * This procedure can be completed simultaneously with previous procedures. 88 DOING BUSINESS IN ITALY 2013 municipality. The fee based on building value building must be notified by a registered Procedure 10*. Obtain water and must be paid no later than 60 days after the professional by means of a standard procedure sewerage installation completion of the building; the fee based on called “DOCFA,” that can be filed on line or at urbanization costs must be paid upon issuance of the local Land Registry Office, within 30 days Time: 29 days the building permit. after completion of the building’s windows. This Cost: EUR 600 Since July 2011, a Decree for Development procedure costs EUR 50 for each real estate Comments: Once the estimates are accepted by (“Decreto Sviluppo”) introduced a “silence-is- unit. The filing procedure also determines the the client, connection works are carried out. consent” principle on national scale, meaning taxable revenue value of the property, which is a necessary reference for tax returns and ownership Procedure 11*. Obtain telephone that no response by the municipality equals final approval, once the time limit has expired. changes. connection The Buildings Registry Office releases a copy of Time: 15 days Procedure 3. Hire an independent the documents and a filing certificate at the end Cost: EUR 200 professional to test the structure of the same update session. Comments: The company should contact the Time: 1 day After registering, the land registry office has 1 telecommunication provider to obtain a telephone Cost: EUR 6,000 year to verify the classification attributed by the connection. Comments: The structure tests must be professional to the building. performed by an engineer or an architect who was The “Agenzia del Territorio” (the government DEALING WITH CONSTRUCTION PERMITS not directly involved in the project. In addition to revenue agency for taxing real estate property) Turin the final test on completed structures, the work provides complete procedure information to site director must provide test results for the registered professionals at its website (“Sister” Warehouse value: EUR 1,040,000 (US$ 1,446,663) structural material used to build the structure. In platform). Data as of: June 2012 the case of reinforced concrete, the testing must Procedure 6. Obtain occupancy Procedure 1. Obtain clearance by the fire be done on three samples taken on each day that certificate department concrete is poured and on one sample for each steel per file used in the structure. The testing Time: 30 days Time: 60 days is based on per files traction and compression Cost: EUR 468 [Municipal decision n. 68 of 28 Cost: EUR 150 resistance and must be done by an authorized July 2010, the fee will be equal to: Comments: BuildCo must present a request for testing lab. —EUR 0.20/cubic meter for building with a clearance (“Parere di conformità”) to the provincial cubature up to 1,000 cubic meters; fire department. The fire department verifies the Procedure 4. File Certified Notification conformity of the project to the fire legislation and of Starting Activity (“SCIA”) —EUR 0.15/cubic meter for building with a issues its response within 60 days. Clearance is Time: 1 day cubature higher than 1,000 cubic meters and up needed to obtain the building permit. Registered to 2,000 cubic meters; Cost: EUR 216 professionals can apply through the fire depart- —EUR 0.12/cubic meter for building with a ment website. Comments: A Certified Notification of Starting cubature higher than 2,000 cubic meters and up Activity (“SCIA”) is a declaration produced by The procedure is regulated by a recent reform to 5,000 cubic meters; the company that the building is in compliance (Presidential Decree 151/11 of August 1st, with all fire safety regulations. For a warehouse —EUR 0.10/cubic meter for building with a 2011—“D.P.R. 151/11”). The reform has introduced containing books, the cost will be EUR 216.00 as cubature higher than 5,000 cubic meters and up a simplified procedure. Building occupancies per the D.P.R. 151/11 (Presidential Decree 151/11 to 20,000 cubic meters; and have been divided into 3 categories with different of August 1, 2011. See activity No. 34.1.B for —EUR 0.08/cubic meter for building with a approval procedures. Category A (low risk, warehouses containing books). cubature higher than 20,000 cubic meters.] standard) no longer requires clearance by the fire Comments: Within 15 days of the building’s department. For Category B (medium risk) and C Procedure 5*. Register the building completion, the builder should file with the (high risk) clearance is still required. The present Time: 5 days Municipal Agency an application for an case is under Category B. Cost: EUR 159 [EUR 44 to obtain the extract occupancy certificate. The reform was introduced to conform with the digital map + EUR 65 to register the building in “Small Business Act” adopted by the European the land registry (“Catasto Terreni”) + EUR 50 Procedure 7. Receive on-site inspection Community. to register the building in the building registry by the fire department (“Catasto Fabbricati”)] Time: 1 day Procedure 2*. Obtain clearance by the Comments: Art. 25 of Presidential Decree Cost: No cost public health agency 380/2001—on Construction (“Testo Unico Comments: Once the SCIA is filed, a random Time: 30 days Edilizia”) requires BuildCo to register the building on-site inspection by the fire department can Cost: EUR 300 at the land and building registry at the agency occur within the following 60 days. Comments: As per the requirements of article 20, called “Agenzia del Territorio.” This is preliminary paragraph 1, of Presidential Decree 380/2001— to the obtainment of the occupancy certificate. Procedure 8*. Apply for water and on Construction (“Testo Unico Edilizia”), in order to The application is carried out by a registered sewerage connection obtain a building permit it is necessary to obtain professional. Time: 1 day clearance from the public health agency. The registration of a new building entails a 2-step Cost: No cost procedure: Procedure 3*. Obtain a building permit Comments: The company should contact the a. Updating the Land Registry: from the municipal office “Sportello per water authority to obtain the water and sewerage connection. l’Edilizia” Updating the Land Registry is an online procedure (or, one can also go personally to the local office Time: 120 days Procedure 9. Receive on-site inspection Cost: EUR 74,029 [EUR 72,465 for fees related of the “Agenzia del Territorio”) that consists in and estimation of water and sewerage to waste disposal (“Smaltimento rifiuti”) and fees producing an updated map of the built lot by means of “Pregeo” software. The cost of this installation costs related to the urbanization costs sustained by the procedure is EUR 65. Time: 1 day municipality (“Oneri di urbanizzazione primaria e b. Updating the Buildings Registry: Cost: No cost secondaria”) + EUR 1,549.60 for administration Comments: The inspection is necessary to fees + EUR 14.62 for 1 stamp] Once the Land Registry is updated, the Buildings Registry must be updated as well. The new estimate the cost of the connection works. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - DEALING WITH CONSTRUCTION PERMITS 89 Comments: Applications to the city of Torino for appointed at the same time of the deposit of the Updating the Land Registry is an online procedure building permits must carry a EUR 14.62 stamp structural project. (or, one can also go personally to the local office and be filed on forms that can be downloaded Chapter 9 of the Technical Regulations of the “Agenzia del Territorio”) that consists in from the township’s website. for Construction (“Norme Tecniche per le producing an updated map of the built lot by As per article 20, paragraph 1, of Presidential Costruzioni”—2008) regulates this procedure. means of “Pregeo” software. The cost of this Decree 380/2001 on Construction, the following Structural engineering inspection entails the procedure is EUR 65.00. documents must be attached to the application assessment of the behavior and performance b. Updating the Buildings Registry: form: of all load-bearing parts of the building. During Once the Land Registry is updated, the Buildings a. A copy of the title of ownership of the property construction the inspector will control any Registry must be updated as well. The new for which the building permit is requested; structural components bound to debar testing building must be notified by a registered b. A declaration of consistency with the city after completion. The director of structural works professional by means of a standard procedure planning instruments and the building regulations; communicates to the “collaudatore statico” that called “DOCFA,” that can be filed on line or at c. The calculation of the building tax, that can be the structure has been completed. The “col- the local Land Registry Office, within 30 days done online; laudatore” has 60 days to make the test. He has after completion of the building’s windows. This to issue a test certificate (“Certificato di collaudo”) procedure costs EUR 50.00 for each real estate d. The project and the related documents, and send it to the municipal office “Sportello per unit. The filing procedure also determines the including clearance by the fire department and the l’Edilizia.” To issue the certificate, the inspector taxable revenue value of the property, which is a public health agency. has to examine: necessary reference for tax returns and ownership A form with a statement on the project of electri- a. The test results for the materials used to build changes. cal and mechanical installations (“Dichiarazione the structure, previously sent to the laboratories The Buildings Registry Office releases a copy of di progetto impianti”) must also be filed at the by the director of structural works (chapter 11 the documents and a filing certificate at the end municipality. of the Technical Regulations for Construction). of the same update session. Within 120 days from the date in which the In case of reinforced concrete structures, the After registering, the land registry office has 1 application is filed, the municipal Agency tests are done on a minimum of 3 specimens of year to verify the classification attributed by the evaluates the consistency of the project with the concrete and 3 of steel. professional to the building. regulations. The 120-day term can be interrupted b. The report on completed structures (“Relazione to request modifications to the project, and, The “Agenzia del Territorio” (the government a strutture ultimate”) that is written by the director revenue agency for taxing real estate property) within the first 60 days, only once, to request of structural works and filed at the municipal additional documents. provides complete procedure information to office “Sportello per l’Edilizia.” registered professionals at its website (“Sister” After the 120-day term, within the following platform). 30 days the municipal agency issues the final Procedure 6. File the Certified approval (“Provvedimento finale”). Notification of Starting Activity Procedure 8. Apply for the occupancy Since July 2011, a Decree for development (“SCIA”) at the fire department certificate (“Certificato di agibilità”) (“Decreto Sviluppo”) introduced a “silence-is- Time: 1 day at the municipal office “Sportello per consent” principle on national scale, meaning Cost: EUR 216 l’Edilizia” that no response by the municipality equals final Comments: The Presidential Decree No. 11 of Time: 30 days approval, once the time limit has expired. August, 2011 (“D.P.R. 151/11”) divides building Cost: EUR 170 [EUR 154.95 for administration The building permit is released after the related occupancies into 3 groups with different approval fees + EUR 14.62 for 1 stamp] fees have been paid. procedures. Comments: The request for an occupancy Procedure 4. File the structural projects For activities of Category B (medium risk), certificate must be filed at the municipal office at the municipal office “Sportello per BuildCo files a Certified Notification of Starting “Sportello per l’Edilizia” within 15 days from l’Edilizia” Activity (“SCIA”) at the fire department. This completion of construction. The municipal office document is a declaration produced by the has 30 days from the date of filing to issue the Time: 1 day company that states the compliance of the occupancy certificate, after which the “silence- Cost: EUR 39 [EUR 10.00 for administration fees building with the fire safety rules. The cost of the is-consent” formula is applied. The 30-day term + 29.24 for 2 stamps] procedure depends on the type of construction can be interrupted to request modifications to the Comments: Before structural construction starts, and activity. A random on-site inspection by the project and, within the first 15 days, only once, to BuildCo must file all structural projects at the fire department can occur within the following request additional documents. “Sportello per l’Edilizia.” Together with the filing 60 days. Filed requests are randomly selected for further of the structural project, BuildCo appoints the control. engineering inspector. Procedure 7*. Register the building at the cadastre (“Agenzia del Territorio”) The application must include, as attachments: Since Torino is rated as “low seismic,” preventive the land registry documentation; installation authorization for antiseismic structures is not Time: 5 days certificates; the structure certificate: the required. Cost: EUR 159 [EUR 44.00 to obtain the extract declaration of conformity to the approved project, The filed projects are subjected to random digital map + EUR 65.00 to register the building in to the draining of the walls, and to healthy inspections. the land registry (“Catasto Terreni”) + EUR 50.00 environments; the declaration of conformity to register the building in the building registry of works to existing legislation on accessibility Procedure 5. Hire an independent (“Catasto Fabbricati”)] and on elimination of architectural barriers; the professional to test the structure Comments: Art. 25 of Presidential Decree energy performance certification finalized to the Time: 1 day 380/2001—on Construction (“Testo Unico containment of fuel consumption. Cost: EUR 5,000 Edilizia”) requires BuildCo to register the building at the land and building registry at the agency Procedure 9. Receive on-site inspection Comments: As established by Art. 67 of by the fire department Presidential Decree 380/2001—on Construction called “Agenzia del Territorio.” This is preliminary (“Testo Unico Edilizia”), BuildCo must hire an to the obtainment of the occupancy certificate. Time: 1 day independent structural engineering inspector, who The application is carried out by a registered Cost: No cost is a registered civil engineer (or architect) not professional. Comments: Once the SCIA is filed, a random directly involved in the project, to make the final The registration of a new building entails a 2-step on-site inspection by the fire department can tests on completed structures (“collaudo statico”). procedure: occur within the following 60 days. This professional, called “collaudatore statico,” is a. Updating the Land Registry: * This procedure can be completed simultaneously with previous procedures. 90 DOING BUSINESS IN ITALY 2013 Procedure 10*. Apply for water and sewerage connection at SMAT Time: 1 day Cost: No cost Comments: BuildCo should contact the water authority to obtain the water and sewerage connection. Procedure 11*. Receive an on-site inspection and an estimate of installation costs by SMAT Time: 1 day Cost: No cost Comments: The inspection is necessary to estimate the cost of the connection works. Procedure 12*. Obtain water and sewerage installation from SMAT Time: 35 days Cost: EUR 800 Comments: Once the estimates are accepted by the client, connection works are carried. Procedure 13*. Obtain a telephone connection by Telecom Italia S.p.a. Time: 15 days Cost: EUR 150 Comments: The company should contact the telecommunication provider to obtain a telephone connection. * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - REGISTERING PROPERTY 91 to authorize the transaction, an extract of such Procedure 2. A notary public obtains LIST OF PROCEDURES resolution has to be provided to the notary and the necessary certificates for the mentioned in the deed of sale). REGISTERING PROPERTY transaction through Notartel; receives Once the above-mentioned tasks have been payment of all taxes and fees from the performed (usually it takes only a few minutes), parties; and drafts and executes the Bari the notary drafts the deed of sale and executes it deed of sale Property value: EUR 1,291,541 (US$ 1,766,500) with the parties. Time: 6 days Data as of: June 2012 Procedure 3. Register the deed of sale at Cost: EUR 56,134 (EUR 230 for Imposta di Bollo + Procedure 1. Obtain energy certificate the tax agency (Agenzia delle Entrate) EUR 168 for Imposta di Registro + 3% of property (Attestato di Certificazione Energetica, Time: 1 day value for Imposta Ipotecaria + 1% of property value ACE) Cost: No cost for Imposta Catastale + EUR 35 for Tassa Ipotecaria Time: 5 days + EUR 55 for Diritti Catastali per Voltura + Notary Comments: Within 30 days from the execution costs without VAT) Cost: EUR 250 of the deed, the notary must file the deed of sale and the transcription note with the tax Comments: Through the online platform Notartel, Comments: The Attestato di Certificazione agency. The procedure is carried out online. the notary carries out the following tasks: Energetica (ACE) is a certification containing data regarding efficiency in energy use and it is valid Once the registration has taken place, the notary a. Checks the ownership status of the for 10 years. According to art. 13 of Legislative immediately receives a receipt with the date and property over the past 20 years and whether Decree 28/2011, when the property is transferred, the number of registration. the property is free of encumbrances (property the buyers are required to explicitly declare, in a registry database). Procedure 4*. Register the deed of sale b. Obtains the following documents from the clause of the deed of sale, that they have received information and supporting documentation at the cadastre and property registry cadastral database: about energy use; there is no need to attach (Agenzia del Territorio) 1. Cadastral situation certificate; the documentation itself, a self-certification is Time: 7 days 2. Planimetry (or, alternatively, cadastral map of enough. The following Regions have enacted Cost: No cost the building); Regional Laws requiring a copy of the ACE to be Comments: The notary deposits the deed of 3. Cadastral map for the plot of land. attached, and not just mentioned, in the deed sale at the property registry. The Italian property of sale: Emilia-Romagna, Liguria, Lombardy, (Since the Decreto Legge 78/2010 has been registry system is based on the principle of Piedmont, Friuli Venezia Giulia, Trentino Alto implemented, the parties are required to declare continuity of registrations (continuità delle Adige, Valle d’Aosta, and Apulia. to the notary the conformity of cadastral data registrazioni). This means that an individual or an and planimetries. The declaration is then entity may sell a property only if the relative deed Procedure 2. A notary public obtains mentioned in the deed of sale). of purchase has been registered beforehand in the the necessary certificates for the c. Connects to the database of the company property registry. The registration at the cadastre transaction through Notartel; receives registry at the local Chamber of Commerce and (voltura catastale) happens automatically after the payment of all taxes and fees from the verifies the existence of the 2 companies and the deed of sale has been registered at the property parties; and drafts and executes the registry. powers of the signatories. deed of sale (Should the by-laws of either company require Time: 4 days REGISTERING PROPERTY that a resolution must be adopted by the Board of Cost: EUR 55,744 (EUR 230 for Imposta di Bollo + Bologna Directors or by the partners’ General Assembly EUR 168 for Imposta di Registro + 3% of property to authorize the transaction, an extract of such Property value: EUR 1,291,541 (US$ 1,766,500) value for Imposta Ipotecaria + 1% of property value resolution has to be provided to the notary and Data as of: June 2012 for Imposta Catastale + EUR 35 for Tassa Ipotecaria mentioned in the deed of sale). + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 1. Obtain energy certificate Once the above-mentioned tasks have been costs without VAT) (Attestato di Certificazione Energetica, performed (usually it takes only a few minutes), Comments: Through the online platform Notartel, ACE) the notary drafts the deed of sale and executes it the notary carries out the following tasks: Time: 6 days with the parties. a. Checks the ownership status of the Cost: EUR 450 Procedure 3. Register the deed of sale at property over the past 20 years and whether Comments: The Attestato di Certificazione the tax agency (Agenzia delle Entrate), the property is free of encumbrances (property Energetica (ACE) is a certification containing data at the cadastre and at the property registry database). regarding efficiency in energy use and it is valid registry (Agenzia del Territorio) through b. Obtains the following documents from the for 10 years. According to art. 13 of Legislative the “Adempimento Unico Telematico” cadastral database: Decree 28/2011, when the property is transferred, Time: 1 day 1. Cadastral situation certificate; the buyers are required to explicitly declare, in a Cost: No cost 2. Planimetry (or, alternatively, cadastral map of clause of the deed of sale, that they have received information and supporting documentation Comments: Since December 29, 2010, Bologna the building); about energy use; there is no need to attach allows full-electronic registration of the deed 3. Cadastral map for the plot of land. of sale. Through the “Adempimento Unico the documentation itself, a self-certification is (Since the Decreto Legge 78/2010 has been enough. The following Regions have enacted Telematico”, the notary can carry out all the steps implemented, the parties are required to declare Regional Laws requiring a copy of the ACE to be to register the transfer of property with the tax to the notary the conformity of cadastral data attached, and not just mentioned, in the deed agency, the property registry and the cadastre at and planimetries. The declaration is then of sale: Emilia-Romagna, Liguria, Lombardy, once on-line. The following operations take place mentioned in the deed of sale). Piedmont, Friuli Venezia Giulia, Trentino Alto through 1 single electronic transmission: c. Connects to the database of the company Adige, Valle d’Aosta, and Apulia. a. Taxes are paid to the tax agency through the registry at the local Chamber of Commerce and reverse charge mechanism; verifies the existence of the 2 companies and the b. The deed of sale is registered at the property powers of the signatories. registry and digitally signed by the Conservatore (Should the by-laws of either company require within 24 hours; that a resolution must be adopted by the Board of Directors or by the partners’ General Assembly * This procedure can be completed simultaneously with previous procedures. 92 DOING BUSINESS IN ITALY 2013 c. Once the deed of sale has been registered at to authorize the transaction, an extract of such Procedure 2. A notary public obtains the property registry, it is automatically registered resolution has to be provided to the notary and the necessary certificates for the in the cadastre (voltura catastale). mentioned in the deed of sale). transaction through Notartel; receives REGISTERING PROPERTY Once the above-mentioned tasks have been payment of all taxes and fees from the performed (usually it takes only a few minutes), parties; and drafts and executes the Cagliari the notary drafts the deed of sale and executes it deed of sale Property value: EUR 1,291,541 (US$ 1,766,500) with the parties. Time: 6 days Data as of: June 2012 Procedure 3. Register the deed of sale at Cost: EUR 55,292 (EUR 230 for Imposta di Bollo + Procedure 1. Obtain energy certificate the tax office (Agenzia delle Entrate) EUR 168 for Imposta di Registro + 3% of property (Attestato di Certificazione Energetica, Time: 1 day value for Imposta Ipotecaria + 1% of property value ACE) Cost: No cost for Imposta Catastale + EUR 35 for Tassa Ipotecaria + EUR 55 for Diritti Catastali per Voltura + Notary Time: 7 days Comments: Within 30 days from the execution costs without VAT) Cost: EUR 600 of the deed, the notary must file the deed of sale and the transcription note with the tax Comments: Through the online platform Notartel, Comments: The Attestato di Certificazione the notary carries out the following tasks: Energetica (ACE) is a certification containing data agency. The procedure is carried out online. Once the registration has taken place, the notary a. Checks the ownership status of the regarding efficiency in energy use and it is valid immediately receives a receipt with the date and property over the past 20 years and whether for 10 years. According to art. 13 of Legislative the number of registration. the property is free of encumbrances (property Decree 28/2011, when the property is transferred, registry database). the buyers are required to explicitly declare, in a Procedure 4*. Register the deed of sale clause of the deed of sale, that they have received b. Obtains the following documents from the at the cadastre and property registry cadastral database: information and supporting documentation (Agenzia del Territorio) about energy use; there is no need to attach 1. Cadastral situation certificate; the documentation itself, a self-certification is Time: 2 days 2. Planimetry (or, alternatively, cadastral map of enough. The following Regions have enacted Cost: No cost the building); Regional Laws requiring a copy of the ACE to be Comments: The notary deposits the deed of 3. Cadastral map for the plot of land. attached, and not just mentioned, in the deed sale at the property registry. The Italian property (Since the Decreto Legge 78/2010 has been of sale: Emilia-Romagna, Liguria, Lombardy, registry system is based on the principle of implemented, the parties are required to declare Piedmont, Friuli Venezia Giulia, Trentino Alto continuity of registrations (continuità delle to the notary the conformity of cadastral data Adige, Valle d’Aosta, and Apulia. registrazioni). This means that an individual or an and planimetries. The declaration is then entity may sell a property only if the relative deed Procedure 2. A notary public obtains mentioned in the deed of sale). of purchase has been registered beforehand in the the necessary certificates for the property registry. The registration at the cadastre c. Connects to the database of the company transaction through Notartel; receives (voltura catastale) happens automatically after the registry at the local Chamber of Commerce and payment of all taxes and fees from the deed of sale has been registered at the property verifies the existence of the 2 companies and the parties; and drafts and executes the registry. powers of the signatories. deed of sale (Should the by-laws of either company require REGISTERING PROPERTY Time: 6 days that a resolution must be adopted by the Board of Cost: EUR 55,846 (EUR 230 for Imposta di Bollo + Campobasso Directors or by the partners’ General Assembly EUR 168 for Imposta di Registro + 3% of property to authorize the transaction, an extract of such Property value: EUR 1,291,541 (US$ 1,766,500) value for Imposta Ipotecaria + 1% of property value resolution has to be provided to the notary and Data as of: June 2012 for Imposta Catastale + EUR 35 for Tassa Ipotecaria mentioned in the deed of sale). + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 1. Obtain energy certificate Once the above-mentioned tasks have been costs without VAT) (Attestato di Certificazione Energetica, performed (usually it takes only a few minutes), Comments: Through the online platform Notartel, ACE) the notary drafts the deed of sale and executes it the notary carries out the following tasks: Time: 7 days with the parties. a. Checks the ownership status of the Cost: EUR 600 Procedure 3. Register the deed of sale at property over the past 20 years and whether Comments: The Attestato di Certificazione the tax agency (Agenzia delle Entrate) the property is free of encumbrances (property Energetica (ACE) is a certification containing data Time: 1 day registry database). regarding efficiency in energy use and it is valid Cost: No cost b. Obtains the following documents from the for 10 years. According to art. 13 of Legislative cadastral database: Decree 28/2011, when the property is transferred, Comments: Within 30 days from the execution the buyers are required to explicitly declare, in a of the deed, the notary must file the deed of 1. Cadastral situation certificate; clause of the deed of sale, that they have received sale and the transcription note with the tax 2. Planimetry (or, alternatively, cadastral map of agency. The procedure is carried out online. the building); information and supporting documentation about energy use; there is no need to attach Once the registration has taken place, the notary 3. Cadastral map for the plot of land. immediately receives a receipt with the date and the documentation itself, a self-certification is (Since the Decreto Legge 78/2010 has been enough. The following Regions have enacted the number of registration. implemented, the parties are required to declare Regional Laws requiring a copy of the ACE to be Procedure 4*. Register the deed of sale to the notary the conformity of cadastral data attached, and not just mentioned, in the deed and planimetries. The declaration is then at the cadastre and property registry of sale: Emilia-Romagna, Liguria, Lombardy, (Agenzia del Territorio) mentioned in the deed of sale). Piedmont, Friuli Venezia Giulia, Trentino Alto c. Connects to the database of the company Time: 2 days Adige, Valle d’Aosta, and Apulia registry at the local Chamber of Commerce and Cost: No cost verifies the existence of the 2 companies and the Comments: The notary deposits the deed of powers of the signatories. sale at the property registry. The Italian property (Should the by-laws of either company require registry system is based on the principle of that a resolution must be adopted by the Board of continuity of registrations (continuità delle Directors or by the partners’ General Assembly registrazioni). This means that an individual or an * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - REGISTERING PROPERTY 93 entity may sell a property only if the relative deed (Should the by-laws of either company require Procedure 2. A notary public obtains of purchase has been registered beforehand in the that a resolution must be adopted by the Board of the necessary certificates for the property registry. The registration at the cadastre Directors or by the partners’ General Assembly transaction through Notartel; receives (voltura catastale) happens automatically after the to authorize the transaction, an extract of such payment of all taxes and fees from the deed of sale has been registered at the property resolution has to be provided to the notary and parties; and drafts and executes the registry. mentioned in the deed of sale). deed of sale REGISTERING PROPERTY Once the above-mentioned tasks have been Time: 10 days performed (usually it takes only a few minutes), Catanzaro the notary drafts the deed of sale and executes it Cost: EUR 55,434 (EUR 230 for Imposta di Bollo + with the parties. EUR 168 for Imposta di Registro + 3% of property Property value: EUR 1,291,541 (US$ 1,766,500) value for Imposta Ipotecaria + 1% of property value Data as of: June 2012 Procedure 3. Register the deed of sale at for Imposta Catastale + EUR 35 for Tassa Ipotecaria Procedure 1. Obtain energy certificate the tax agency (Agenzia delle Entrate) + EUR 55 for Diritti Catastali per Voltura + Notary (Attestato di Certificazione Energetica, Time: 1 day costs without VAT) ACE) Cost: No cost Comments: Through the online platform Notartel, Time: 10 days Comments: Within 30 days from the execution of the notary carries out the following tasks: Cost: EUR 600 the deed, the notary must file the deed of sale and a. Checks the ownership status of the the transcription note with the tax agency. The property over the past 20 years and whether Comments: The Attestato di Certificazione procedure is carried out online. Once the registra- the property is free of encumbrances (property Energetica (ACE) is a certification containing data tion has taken place, the notary immediately registry database). regarding efficiency in energy use and it is valid for 10 years. According to art. 13 of Legislative receives a receipt with the date and the number b. Obtains the following documents from the Decree 28/2011, when the property is transferred, of registration. cadastral database: the buyers are required to explicitly declare, in a 1. Cadastral situation certificate; Procedure 4*. Register the deed of sale clause of the deed of sale, that they have received 2. Planimetry (or, alternatively, cadastral map of at the cadastre and property registry information and supporting documentation the building); (Agenzia del Territorio) about energy use; there is no need to attach 3. Cadastral map for the plot of land. the documentation itself, a self-certification is Time: 2 days Cost: No cost (Since the Decreto Legge 78/2010 has been enough. The following Regions have enacted implemented, the parties are required to declare Regional Laws requiring a copy of the ACE to be Comments: The notary deposits the deed to the notary the conformity of cadastral data attached, and not just mentioned, in the deed of sale at the property registry. The Italian and planimetries. The declaration is then of sale: Emilia-Romagna, Liguria, Lombardy, property registry system is based on the principle mentioned in the deed of sale). Piedmont, Friuli Venezia Giulia, Trentino Alto of continuity of registrations (continuità delle Adige, Valle d’Aosta, and Apulia. registrazioni). This means that an individual or an c. Connects to the database of the company entity may sell a property only if the relative deed registry at the local Chamber of Commerce and Procedure 2. A notary public obtains of purchase has been registered beforehand in the verifies the existence of the 2 companies and the the necessary certificates for the property registry. The registration at the cadastre powers of the signatories. transaction through Notartel; receives (voltura catastale) happens automatically after the (Should the by-laws of either company require payment of all taxes and fees from the deed of sale has been registered at the property that a resolution must be adopted by the Board of parties; and drafts and executes the registry. Directors or by the partners’ General Assembly deed of sale to authorize the transaction, an extract of such REGISTERING PROPERTY Time: 6 days resolution has to be provided to the notary and Cost: EUR 55,279 (EUR 230 for Imposta di Bollo + L’Aquila mentioned in the deed of sale). EUR 168 for Imposta di Registro + 3% of property Property value: EUR 1,291,541 (US$ 1,766,500) Once the above-mentioned tasks have been value for Imposta Ipotecaria + 1% of property value Data as of: June 2012 performed (usually it takes only a few minutes), for Imposta Catastale + EUR 35 for Tassa Ipotecaria the notary drafts the deed of sale and executes it + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 1. Obtain energy certificate with the parties. costs without VAT) (Attestato di Certificazione Energetica, ACE) Procedure 3. Register the deed of sale at Comments: Through the online platform Notartel, the tax agency (Agenzia delle Entrate) the notary carries out the following tasks: Time: 7 days Time: 1 day a. Checks the ownership status of the Cost: EUR 500 property over the past 20 years and whether Cost: No cost Comments: The Attestato di Certificazione the property is free of encumbrances (property Energetica (ACE) is a certification containing data Comments: Within 30 days from the execution of registry database). regarding efficiency in energy use and it is valid the deed, the notary must file the deed of sale and b. Obtains the following documents from the for 10 years. According to art. 13 of Legislative the transcription note with the tax agency. The cadastral database: Decree 28/2011, when the property is transferred, procedure is carried out online. Once the registra- the buyers are required to explicitly declare, in a tion has taken place, the notary immediately 1. Cadastral situation certificate; clause of the deed of sale, that they have received receives a receipt with the date and the number 2. Planimetry (or, alternatively, cadastral map of of registration. the building); information and supporting documentation about energy use; there is no need to attach Procedure 4*. Register the deed of sale 3. Cadastral map for the plot of land. the documentation itself, a self-certification is at the cadastre and property registry (Since the Decreto Legge 78/2010 has been enough. The following Regions have enacted implemented, the parties are required to declare (Agenzia del Territorio) Regional Laws requiring a copy of the ACE to be to the notary the conformity of cadastral data Time: 2 days attached, and not just mentioned, in the deed and planimetries. The declaration is then of sale: Emilia-Romagna, Liguria, Lombardy, Cost: No cost mentioned in the deed of sale). Piedmont, Friuli Venezia Giulia, Trentino Alto Comments: The notary deposits the deed c. Connects to the database of the company Adige, Valle d’Aosta, and Apulia. of sale at the property registry. The Italian registry at the local Chamber of Commerce and property registry system is based on the principle verifies the existence of the 2 companies and the of continuity of registrations (continuità delle powers of the signatories. registrazioni). This means that an individual or an * This procedure can be completed simultaneously with previous procedures. 94 DOING BUSINESS IN ITALY 2013 entity may sell a property only if the relative deed (Should the by-laws of either company require Cost: EUR 56,900 (EUR 230 for Imposta di Bollo + of purchase has been registered beforehand in the that a resolution must be adopted by the Board of EUR 168 for Imposta di Registro + 3% of property property registry. The registration at the cadastre Directors or by the partners’ General Assembly value for Imposta Ipotecaria + 1% of property value (voltura catastale) happens automatically after the to authorize the transaction, an extract of such for Imposta Catastale + EUR 35 for Tassa Ipotecaria deed of sale has been registered at the property resolution has to be provided to the notary and + EUR 55 for Diritti Catastali per Voltura + Notary registry. mentioned in the deed of sale). costs without VAT) REGISTERING PROPERTY Once the above-mentioned tasks have been Comments: Through the online platform Notartel, performed (usually it takes only a few minutes), the notary carries out the following tasks: Milan the notary drafts the deed of sale and executes it a. Checks the ownership status of the Property value: EUR 1,291,541 (US$ 1,766,500) with the parties. property over the past 20 years and whether Data as of: June 2012 the property is free of encumbrances (property Procedure 3. Register the deed of sale at registry database). Procedure 1. Obtain energy certificate the tax agency (Agenzia delle Entrate), at the cadastre and at the property registry b. Obtains the following documents from the (Attestato di Certificazione Energetica, cadastral database: ACE) (Agenzia del Territorio) through the “Adempimento Unico Telematico” 1. Cadastral situation certificate; Time: 7 days 2. Planimetry (or, alternatively, cadastral map of Time: 1 day Cost: EUR 330 the building); Cost: No cost Comments: The Attestato di Certificazione 3. Cadastral map for the plot of land. Comments: Since September 29, 2011, Milan Energetica (ACE) is a certification containing data (Since the Decreto Legge 78/2010 has been allows full-electronic registration of the deed of regarding efficiency in energy use and it is valid implemented, the parties are required to declare sale. Through the “Adempimento Unico Telematico,” for 10 years. According to art. 13 of Legislative to the notary the conformity of cadastral data the notary can carry out all the steps to register Decree 28/2011, when the property is transferred, and planimetries. The declaration is then the transfer of property with the tax agency, the the buyers are required to explicitly declare, in a mentioned in the deed of sale). property registry and the cadastre at once on-line. clause of the deed of sale, that they have received The following operations take place through 1 c. Connects to the database of the company information and supporting documentation single electronic trasmission: registry at the local Chamber of Commerce and about energy use; there is no need to attach a. Taxes are paid to the tax agency through the verifies the existence of the 2 companies and the the documentation itself, a self-certification is reverse charge mechanism; powers of the signatories. enough. The following Regions have enacted Regional Laws requiring a copy of the ACE to be b. The deed of sale is registered at the property (Should the by-laws of either company require attached, and not just mentioned, in the deed registry and digitally signed by the Conservatore that a resolution must be adopted by the Board of of sale: Emilia-Romagna, Liguria, Lombardy, within 24 hours; Directors or by the partners’ General Assembly Piedmont, Friuli Venezia Giulia, Trentino Alto c. Once the deed of sale has been registered at to authorize the transaction, an extract of such Adige, Valle d’Aosta, and Apulia. the property registry, it is automatically registered resolution has to be provided to the notary and in the cadastre (voltura catastale). mentioned in the deed of sale). Procedure 2. A notary public obtains Once the above-mentioned tasks have been the necessary certificates for the REGISTERING PROPERTY performed (usually it takes only a few minutes), transaction through Notartel; receives Naples the notary drafts the deed of sale and executes it payment of all taxes and fees from the with the parties. parties; and drafts and executes the Property value: EUR 1,291,541 (US$ 1,766,500) deed of sale Data as of: June 2012 Procedure 3. Register the deed of sale at Time: 11 days the tax agency (Agenzia delle Entrate), at Procedure 1. Obtain energy certificate the cadastre and at the property registry Cost: EUR 56,345 (EUR 230 for Imposta di Bollo + (Attestato di Certificazione Energetica, (Agenzia del Territorio) through the EUR 168 for Imposta di Registro + 3% of property ACE) “Adempimento Unico Telematico” value for Imposta Ipotecaria + 1% of property Time: 5 days value for Imposta Catastale + EUR 35 for Tassa Time: 1 day Cost: EUR 400 Cost: No cost Ipotecaria + EUR 55 for Diritti Catastali per Voltura + Notary costs without VAT) Comments: The Attestato di Certificazione Comments: Since September 29, 2011, Naples Energetica (ACE) is a certification containing data allows full-electronic registration of the deed of Comments: Through the online platform Notartel, regarding efficiency in energy use and it is valid sale. Through the “Adempimento Unico Telematico”, the notary carries out the following tasks: for 10 years. According to art. 13 of Legislative the notary can carry out all the steps to register a. Checks the ownership status of the Decree 28/2011, when the property is transferred, property over the past 20 years and whether the transfer of property with the tax agency, the the buyers are required to explicitly declare, in a property registry and the cadastre at once on-line. the property is free of encumbrances (property clause of the deed of sale, that they have received registry database). The following operations take place through 1 information and supporting documentation single electronic trasmission: b. Obtains the following documents from the about energy use; there is no need to attach cadastral database: the documentation itself, a self-certification is a. Taxes are paid to the tax agency through the enough. The following Regions have enacted reverse charge mechanism; 1. Cadastral situation certificate; Regional Laws requiring a copy of the ACE to be b. The deed of sale is registered at the property 2. Planimetry (or, alternatively, cadastral map of attached, and not just mentioned, in the deed registry and digitally signed by the Conservatore the building); of sale: Emilia-Romagna, Liguria, Lombardy, within 24 hours; 3. Cadastral map for the plot of land. Piedmont, Friuli Venezia Giulia, Trentino Alto c. Once the deed of sale has been registered at (Since the Decreto Legge 78/2010 has been Adige, Valle d’Aosta, and Apulia. the property registry, it is automatically registered implemented, the parties are required to declare in the cadastre (voltura catastale). to the notary the conformity of cadastral data and Procedure 2. A notary public obtains planimetries. The declaration is then mentioned in the necessary certificates for the the deed of sale). transaction through Notartel; receives c. Connects to the database of the company payment of all taxes and fees from the registry at the local Chamber of Commerce and parties; and drafts and executes the verifies the existence of the 2 companies and the deed of sale powers of the signatories. Time: 7 days * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - REGISTERING PROPERTY 95 REGISTERING PROPERTY Once the above-mentioned tasks have been Cost: EUR 56,000 (EUR 230 for Imposta di Bollo + Padua performed (usually it takes only a few minutes), EUR 168 for Imposta di Registro + 3% of property the notary drafts the deed of sale and executes it value for Imposta Ipotecaria + 1% of property value Property value: EUR 1,291,541 (US$ 1,766,500) with the parties. for Imposta Catastale + EUR 35 for Tassa Ipotecaria Data as of: June 2012 + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 3. Register the deed of sale at costs without VAT) Procedure 1. Obtain energy certificate the tax agency (Agenzia delle Entrate) (Attestato di Certificazione Energetica, Comments: Through the online platform Notartel, Time: 1 day the notary carries out the following tasks: ACE) Cost: No cost a. Checks the ownership status of the Time: 10 days Comments: Within 30 days from the execution of property over the past 20 years and whether Cost: EUR 290 the deed, the notary must file the deed of sale and the property is free of encumbrances (property Comments: The Attestato di Certificazione the transcription note with the tax agency. The registry database). Energetica (ACE) is a certification containing data procedure is carried out online. Once the registra- b. Obtains the following documents from the regarding efficiency in energy use and it is valid tion has taken place, the notary immediately cadastral database: for 10 years. According to art. 13 of Legislative receives a receipt with the date and the number Decree 28/2011, when the property is transferred, 1. Cadastral situation certificate; of registration. the buyers are required to explicitly declare, in a 2. Planimetry (or, alternatively, cadastral map of clause of the deed of sale, that they have received Procedure 4*. Register the deed of sale the building); information and supporting documentation at the cadastre and property registry 3. Cadastral map for the plot of land. about energy use; there is no need to attach (Agenzia del Territorio) (Since the Decreto Legge 78/2010 has been the documentation itself, a self-certification is Time: 4 days implemented, the parties are required to declare enough. The following Regions have enacted Cost: No cost to the notary the conformity of cadastral data Regional Laws requiring a copy of the ACE to be and planimetries. The declaration is then Comments: The notary deposits the deed attached, and not just mentioned, in the deed mentioned in the deed of sale). of sale at the property registry. The Italian of sale: Emilia-Romagna, Liguria, Lombardy, property registry system is based on the principle c. Connects to the database of the company Piedmont, Friuli Venezia Giulia, Trentino Alto of continuity of registrations (continuità delle registry at the local Chamber of Commerce and Adige, Valle d’Aosta, and Apulia. registrazioni). This means that an individual or an verifies the existence of the 2 companies and the Procedure 2. A notary public obtains entity may sell a property only if the relative deed powers of the signatories. the necessary certificates for the of purchase has been registered beforehand in the (Should the by-laws of either company require transaction through Notartel; receives property registry. The registration at the cadastre that a resolution must be adopted by the Board of payment of all taxes and fees from the (voltura catastale) happens automatically after the Directors or by the partners’ General Assembly parties; and drafts and executes the deed of sale has been registered at the property to authorize the transaction, an extract of such deed of sale registry. resolution has to be provided to the notary and Time: 8 days REGISTERING PROPERTY mentioned in the deed of sale). Cost: EUR 56,360 (EUR 230 for Imposta di Bollo + Once the above-mentioned tasks have been Palermo performed (usually it takes only a few minutes), EUR 168 for Imposta di Registro + 3% of property value for Imposta Ipotecaria + 1% of property value Property value: EUR 1,291,541 (US$ 1,766,500) the notary drafts the deed of sale and executes it for Imposta Catastale + EUR 35 for Tassa Ipotecaria Data as of: June 2012 with the parties. + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 1. Obtain energy certificate Procedure 3. Register the deed of sale at costs without VAT) the tax agency (Agenzia delle Entrate), (Attestato di Certificazione Energetica, Comments: Through the online platform Notartel, ACE) at the cadastre and at the property the notary carries out the following tasks: registry (Agenzia del Territorio) through Time: 3 days a. Checks the ownership status of the the “Adempimento Unico Telematico” Cost: EUR 800 property over the past 20 years and whether Time: 1 day the property is free of encumbrances (property Comments: The Attestato di Certificazione Energetica (ACE) is a certification containing data Cost: No cost registry database). regarding efficiency in energy use and it is valid Comments: Since December 29, 2010, Palermo b. Obtains the following documents from the for 10 years. According to art. 13 of Legislative allows full-electronic registration of the deed of cadastral database: Decree 28/2011, when the property is transferred, sale. Through the “Adempimento Unico Telematico”, 1. Cadastral situation certificate; the buyers are required to explicitly declare, in a the notary can carry out all the steps to register 2. Planimetry (or, alternatively, cadastral map of clause of the deed of sale, that they have received the transfer of property with the tax agency, the the building); information and supporting documentation property registry and the cadastre at once on-line. 3. Cadastral map for the plot of land. about energy use; there is no need to attach The following operations take place through 1 (Since the Decreto Legge 78/2010 has been the documentation itself, a self-certification is single electronic trasmission: implemented, the parties are required to declare enough. The following Regions have enacted a. Taxes are paid to the tax agency through the to the notary the conformity of cadastral data Regional Laws requiring a copy of the ACE to be reverse charge mechanism; and planimetries. The declaration is then attached, and not just mentioned, in the deed b. The deed of sale is registered at the property mentioned in the deed of sale). of sale: Emilia-Romagna, Liguria, Lombardy, registry and digitally signed by the Conservatore Piedmont, Friuli Venezia Giulia, Trentino Alto within 24 hours; c. Connects to the database of the company Adige, Valle d’Aosta, and Apulia. registry at the local Chamber of Commerce and c. Once the deed of sale has been registered at verifies the existence of the 2 companies and the Procedure 2. A notary public obtains the property registry, it is automatically registered powers of the signatories. the necessary certificates for the in the cadastre (voltura catastale). (Should the by-laws of either company require transaction through Notartel; receives that a resolution must be adopted by the Board of payment of all taxes and fees from the Directors or by the partners’ General Assembly parties; and drafts and executes the to authorize the transaction, an extract of such deed of sale resolution has to be provided to the notary and Time: 9 days mentioned in the deed of sale). * This procedure can be completed simultaneously with previous procedures. 96 DOING BUSINESS IN ITALY 2013 REGISTERING PROPERTY Once the above-mentioned tasks have been Cost: EUR 57,169 (EUR 230 for Imposta di Bollo + Potenza performed (usually it takes only a few minutes), EUR 168 for Imposta di Registro + 3% of property the notary drafts the deed of sale and executes it value for Imposta Ipotecaria + 1% of property value Property value: EUR 1,291,541 (US$ 1,766,500) with the parties. for Imposta Catastale + EUR 35 for Tassa Ipotecaria Data as of: June 2012 + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 3. Register the deed of sale at costs without VAT) Procedure 1. Obtain energy certificate the tax agency (Agenzia delle Entrate) (Attestato di Certificazione Energetica, Comments: Through the online platform Notartel, Time: 1 day the notary carries out the following tasks: ACE) Cost: No cost a. Checks the ownership status of the Time: 10 days Comments: Within 30 days from the execution of property over the past 20 years and whether Cost: EUR 800 the deed, the notary must file the deed of sale and the property is free of encumbrances (property Comments: The Attestato di Certificazione the transcription note with the tax agency. The registry database). Energetica (ACE) is a certification containing data procedure is carried out online. Once the registra- b. Obtains the following documents from the regarding efficiency in energy use and it is valid tion has taken place, the notary immediately cadastral database: for 10 years. According to art. 13 of Legislative receives a receipt with the date and the number Decree 28/2011, when the property is transferred, 1. Cadastral situation certificate; of registration. the buyers are required to explicitly declare, in a 2. Planimetry (or, alternatively, cadastral map of clause of the deed of sale, that they have received Procedure 4*. Register the deed of sale the building); information and supporting documentation at the cadastre and property registry 3. Cadastral map for the plot of land. about energy use; there is no need to attach (Agenzia del Territorio) (Since the Decreto Legge 78/2010 has been the documentation itself, a self-certification is Time: 3 days implemented, the parties are required to declare enough. The following Regions have enacted Cost: No cost to the notary the conformity of cadastral data Regional Laws requiring a copy of the ACE to be and planimetries. The declaration is then Comments: The notary deposits the deed attached, and not just mentioned, in the deed mentioned in the deed of sale). of sale at the property registry. The Italian of sale: Emilia-Romagna, Liguria, Lombardy, property registry system is based on the principle c. Connects to the database of the company Piedmont, Friuli Venezia Giulia, Trentino Alto of continuity of registrations (continuità delle registry at the local Chamber of Commerce and Adige, Valle d’Aosta, and Apulia. registrazioni). This means that an individual or an verifies the existence of the 2 companies and the Procedure 2. A notary public obtains entity may sell a property only if the relative deed powers of the signatories. the necessary certificates for the of purchase has been registered beforehand in the (Should the by-laws of either company require transaction through Notartel; receives property registry. The registration at the cadastre that a resolution must be adopted by the Board of payment of all taxes and fees from the (voltura catastale) happens automatically after the Directors or by the partners’ General Assembly parties; and drafts and executes the deed of sale has been registered at the property to authorize the transaction, an extract of such deed of sale registry. resolution has to be provided to the notary and Time: 8 days REGISTERING PROPERTY mentioned in the deed of sale). Cost: EUR 55,650 (EUR 230 for Imposta di Bollo + Once the above-mentioned tasks have been Rome performed (usually it takes only a few minutes), EUR 168 for Imposta di Registro + 3% of property value for Imposta Ipotecaria + 1% of property value Property value: EUR 1,291,541 (US$ 1,766,500) the notary drafts the deed of sale and executes it for Imposta Catastale + EUR 35 for Tassa Ipotecaria Data as of: June 2012 with the parties. + EUR 55 for Diritti Catastali per Voltura + Notary Procedure 1. Obtain energy certificate Procedure 3. Register the deed of sale at costs without VAT) the tax agency (Agenzia delle Entrate), (Attestato di Certificazione Energetica, Comments: Through the online platform Notartel, ACE) at the cadastre and at the property the notary carries out the following tasks: registry (Agenzia del Territorio) through Time: 9 days a. Checks the ownership status of the the “Adempimento Unico Telematico” Cost: EUR 850 property over the past 20 years and whether Time: 4 days the property is free of encumbrances (property Comments: The Attestato di Certificazione Energetica (ACE) is a certification containing data Cost: No cost registry database). regarding efficiency in energy use and it is valid Comments: Since September 29th, 2011, Rome b. Obtains the following documents from the for 10 years. According to art. 13 of Legislative allows full-electronic registration of the deed of cadastral database: Decree 28/2011, when the property is transferred, sale. Through the “Adempimento Unico Telematico”, 1. Cadastral situation certificate; the buyers are required to explicitly declare, in a the notary can carry out all the steps to register 2. Planimetry (or, alternatively, cadastral map of clause of the deed of sale, that they have received the transfer of property with the tax agency, the the building); information and supporting documentation property registry and the cadastre at once on-line. 3. Cadastral map for the plot of land. about energy use; there is no need to attach The following operations take place through 1 (Since the Decreto Legge 78/2010 has been the documentation itself, a self-certification is single electronic trasmission: implemented, the parties are required to declare enough. The following Regions have enacted a. Taxes are paid to the tax agency through the to the notary the conformity of cadastral data Regional Laws requiring a copy of the ACE to be reverse charge mechanism; and planimetries. The declaration is then attached, and not just mentioned, in the deed b. The deed of sale is registered at the property mentioned in the deed of sale). of sale: Emilia-Romagna, Liguria, Lombardy, registry and digitally signed by the Conservatore; Piedmont, Friuli Venezia Giulia, Trentino Alto c. Connects to the database of the company c. Once the deed of sale has been registered at Adige, Valle d’Aosta, and Apulia. registry at the local Chamber of Commerce and the property registry, it is automatically registered verifies the existence of the 2 companies and the Procedure 2. A notary public obtains in the cadastre (voltura catastale). powers of the signatories. the necessary certificates for the (Should the by-laws of either company require transaction through Notartel; receives that a resolution must be adopted by the Board of payment of all taxes and fees from the Directors or by the partners’ General Assembly parties; and drafts and executes the to authorize the transaction, an extract of such deed of sale resolution has to be provided to the notary and Time: 11 days mentioned in the deed of sale). * This procedure can be completed simultaneously with previous procedures. LIST OF PROCEDURES - REGISTERING PROPERTY 97 REGISTERING PROPERTY c. Connects to the database of the company Turin registry at the local Chamber of Commerce and verifies the existence of the 2 companies and the Property value: EUR 1,291,541 (US$ 1,766,500) powers of the signatories. Data as of: June 2012 (Should the by-laws of either company require Procedure 1. Obtain energy certificate that a resolution must be adopted by the Board of (Attestato di Certificazione Energetica, Directors or by the partners’ General Assembly ACE) to authorize the transaction, an extract of such resolution has to be provided to the notary and Time: 7 days mentioned in the deed of sale). Cost: EUR 600 Once the above-mentioned tasks have been Comments: The Attestato di Certificazione performed (usually it takes only a few minutes), Energetica (ACE) is a certification containing data the notary drafts the deed of sale and executes it regarding efficiency in energy use and it is valid with the parties. for 10 years. According to art. 13 of Legislative Decree 28/2011, when the property is transferred, Procedure 3. Register the deed of sale at the buyers are required to explicitly declare, in a the tax agency (Agenzia delle Entrate), clause of the deed of sale, that they have received at the cadastre and at the property information and supporting documentation registry (Agenzia del Territorio) through about energy use; there is no need to attach the “Adempimento Unico Telematico” the documentation itself, a self-certification is Time: 2 days enough. The following Regions have enacted Cost: No cost Regional Laws requiring a copy of the ACE to be attached, and not just mentioned, in the deed Comments: Since September 29, 2011, Turin of sale: Emilia-Romagna, Liguria, Lombardy, allows full-electronic registration of the deed of Piedmont, Friuli Venezia Giulia, Trentino Alto sale. Through the “Adempimento Unico Telematico”, Adige, Valle d’Aosta, and Apulia. the notary can carry out all the steps to register the transfer of property with the tax agency, the Procedure 2. A notary public obtains property registry and the cadastre at once on-line. the necessary certificates for the The following operations take place through 1 transaction through Notartel; receives single electronic trasmission: payment of all taxes and fees from the a. Taxes are paid to the tax agency through the parties; and drafts and executes the reverse charge mechanism; deed of sale b. The deed of sale is registered at the property Time: 10 days registry and digitally signed by the Conservatore Cost: EUR 57,234 (EUR 230 for Imposta di Bollo + within 48 hours; EUR 168 for Imposta di Registro + 3% of property c. Once the deed of sale has been registered at value for Imposta Ipotecaria + 1% of property value the property registry, it is automatically registered for Imposta Catastale + EUR 35 for Tassa Ipotecaria in the cadastre (voltura catastale). + EUR 55 for Diritti Catastali per Voltura + Notary costs without VAT) Comments: Through the online platform Notartel, the notary carries out the following tasks: a. Checks the ownership status of the property over the past 20 years and whether the property is free of encumbrances (property registry database). b. Obtains the following documents from the cadastral database: 1. Cadastral situation certificate; 2. Planimetry (or, alternatively, cadastral map of the building); 3. Cadastral map for the plot of land. (Since the Decreto Legge 78/2010 has been implemented, the parties are required to declare to the notary the conformity of cadastral data and planimetries. The declaration is then mentioned in the deed of sale). * This procedure can be completed simultaneously with previous procedures. 9898 DOING BUSINESS IN ITALY 2013 Indicator details ENFORCING CONTRACTS Time (days) Cost (% of claim) Procedures Attorney Enforcement City (number) Filing Judgment Enforcement Total cost Court cost cost Total Bari 41 25 1,427 570 2,022 24.2 6.1 3.8 34.1 Bologna 41 29 1,097 221 1,347 25.0 4.4 3.4 32.8 Cagliari 41 23 1,144 340 1,507 12.7 5.4 3.4 21.5 Campobasso 41 28 1,019 291 1,338 16.8 5.2 3.5 25.5 Catanzaro 41 26 1,055 346 1,427 14.6 4.5 5.0 24.1 L’Aquila 41 14 1,119 302 1,435 13.6 4.5 4.8 22.9 Milan 41 25 835 431 1,291 22.0 6.1 3.4 31.5 Naples 41 27 900 353 1,280 14.0 4.3 3.4 21.7 Padua 41 28 1,309 328 1,665 17.7 7.0 3.4 28.1 Palermo 41 40 798 527 1,366 16.2 4.5 4.5 25.2 Potenza 41 22 1,221 218 1,461 10.2 4.5 5.8 20.5 Rome 41 40 900 270 1,210 21.8 2.9 5.2 29.9 Turin 41 26 622 207 855 14.4 4.5 3.4 22.3 INDICATOR DETAILS 99 TRADING ACROSS BORDERS Catania Taranto Gioia Tauro Cagliari Genoa Trieste Naples Time Cost Time Cost Time Cost Time Cost Time Cost Time Cost Time Cost (days) (US$) (days) (US$) (days) (US$) (days)) (US$) (days) (US$) (days) (US$) (days) (US$) EXPORT 19 1,020 18 1,025 20 1,035 19 1,040 18 940 18 980 20 1,000 Document 10 220 10 220 10 220 10 220 10 220 10 220 10 220 preparation Inland trans- portation and 2 400 2 350 2 350 2 350 3 320 2 370 2 400 handling Customs 2 180 2 160 2 170 2 150 2 55 2 100 2 130 Port and terminal 5 220 4 295 6 295 5 320 3 345 4 290 6 250 handling IMPORT 16 1,040 18 1,030 17 1,035 16 1,470 17 935 17 1,120 17 1,290 Document 10 220 10 220 10 220 10 220 10 220 10 220 10 220 preparation Inland trans- portation and 2 220 4 295 3 295 2 350 3 345 3 290 3 230 handling Customs 2 200 2 165 2 170 2 150 2 55 2 160 2 170 Port and terminal 2 400 2 350 2 350 2 750 2 315 2 450 2 670 handling Export documents Import documents Bill of lading Bill of lading Commercial invoice Certificate of origin Customs export declaration Commercial invoice Technical standard certificate Customs import declaration 100 Acknowledgments Doing Business in Italy 2013 was produced Bossone, head of the evaluation unit of by a team led by Iva Hamel and Alessio the Department for the Planning and Zanelli. The team comprised Raian Coordination of Economic Policy (DIPE) of Divanbeigi, Tommaso Rooms, Pilar the Presidency of the Council of Ministers Sanchez-Bella, Laura Speranza, and Anna of the Italian Republic. The DIPE team in Chiara Tortorella. The report was prepared charge of project implementation was led under the general direction of Mierta by Biagio Bossone (until February 2012) Capaul. Invaluable guidance was provided and by Luca Einaudi (starting in March by Augusto Lopez-Claros, Massimiliano 2012), under the general supervision of Paolucci, and Marialisa Motta. Paolo Emilio Signorini. The team was comprised of Patrizia Cappellaro, Roberta The team is grateful for valuable comments Guerrieri, Giulia Schiavoni, and Marianna provided by colleagues across the World Turriciano. Bank Group. Peer review comments were received from Julia Barrera, Carlos Alberto The project was funded by DIPE. Braga, Frederic Bustelo, Giuliana Cane, Dobromir Christow, Alejandro Espinoza- Special thanks go to the Italian Wang, Marta Mueller Gucciardini, Ankur Association of the Chambers of Huria, Trimor Mici, Andrei Minkhnev, Commerce (Unioncamere) and to the Thomas Mullier, Julia Nielson, Nuria Association of the Veneto Chambers De Oca, Mikiko Imai Ollison, Madalina of Commerce (Unioncamere Veneto) for Papahagi, Donato De Rosa, Pilar Salgado- the technical and logistical assistance Otonel, Massimiliano Santini, Julien provided throughout the course of the Vilquin, and Barry Raymond Walsh. Karim project. The Unioncamere teams were Belayachi, Claudia Contreras, Marie-Lily led by Ugo Girardi and Gian Angelo Delion, Julio Fuster, Hussam Hussein, Bellati and composed of Giovanna Guzzo, Antone Ibrahim Joyce, Aikaterini Leris, Andrea Mosconi, Serafino Pitingaro and Beatriz Meija Asserias, Frederic Meunier, Pierluigi Sodini. Robert Murillo, Maria Camila Roberts and The team is also grateful to Magda Bianco Patricia Soto provided valuable assistance and Francesco Bripi from the Bank of Italy at various stages of the project. The com- for their assistance in the preparation of munications campaign was designed and the project. led by Nadine Shamounki Ghannam and included Sushmitha Narsiah and Hyun The project team extends special thanks Kyong Lee. The website (http:/ /www. to the city and regional representatives doingbusiness.org/Italy) was developed designated as project counterparts, by Preeti Endlaw, Graeme Littler, Hashim the “Marisa Bellisario” Foundation, Zia and Kunal Patel. The report was edited the National Association of Notaries by Cintra Scott and designed by Corporate (Consiglio Nazionale del Notariato), Visions. the Italian Council of Custom Brokers (Consiglio Nazionale degli Spedizionieri The project, the first of its kind in a Doganali), the chambers of commerce G7 country, was initiated by Biagio of each city, the port authorities, the ACKNOWLEDGMENTS 101 Association of Italian Ports (Assoporti), the Association Spediporto (Associazione Spedizionieri Corrieri e Trasportatori di Genova), the Ministry of Justice (Ministero di Grazia e Giustizia), the Ministry of Economic Development (Ministero dello Sviuluppo Economico), the Customs Agency (Agenzia delle Dogane), the Land Agency (Agenzia del Territorio), the Tax Agency (Agenzia delle Entrate), and to the many local associations of engineers, builders, chartered accountants, lawyers, and architects that supported the project. More than 370 business consultants, lawyers, property experts, engineers, architects, utility providers, public officials and magistrates contributed to the Doing Business in Italy 2013 report. The team wants to extend its special gratitude to the national and local government of- ficials and members of the judiciary who participated in the project and who made valuable comments during the consulta- tion and data-review period. The names of those wishing to be acknowledged are listed on the following pages. 102 DOING BUSINESS IN ITALY 2013 PUBLIC SECTOR Vincenzo Amato GIOIA TAURO Enrico Consolandi Vincenzo Fazio TRIBUNALE DI CAGLIARI Saverio Marrani TRIBUNALE DI MILANO REGIONE SICILIA CONTRIBUTORS Agostino Delinna AGENZIA DELLE DOGANE DI GIOIA Rosalia Imeneo Roberto Conti TRIBUNALE DI CAGLIARI TAURO TRIBUNALE DI MILANO TRIBUNALE DI PALERMO BARI Antonio Giordo Giovanni Grimaldi Livia Pomodoro Giuseppe De Gregorio Angela Patrizia Partipilo AUTORITÀ PORTUALE DI GIOIA TAURO CAMERA DI COMMERCIO DI BARI UNIONCAMERE SARDEGNA TRIBUNALE DI MILANO TRIBUNALE DI PALERMO Concetta Schiariti Emanuela Santangelo Raffaele Vastano CAMPOBASSO AUTORITÀ PORTUALE DI GIOIA TAURO POTENZA CAMERA DI COMMERCIO DI BARI TRIBUNALE DI MILANO Anna Rita Cucci Patrick Suglia Guido Vannicelli Anna Maria Curcuruto CAMERA DI COMMERCIO DI Saverio Spatafora CAMERA DI COMMERCIO DI POTENZA COMUNE DI BARI AUTORITÀ PORTUALE DI GIOIA TAURO TRIBUNALE DI MILANO CAMPOBASSO Antonio Capozza Michele Emiliano Marianna Tartaglia Anna Crea NAPLES COMUNE DI POTENZA COMUNE DI BARI CAMERA DI COMMERCIO DI CAMERA DI COMMERCIO DI CATANZARO Luciano Dassatti Rocco Robilotta CAMPOBASSO Nicola Marzulli Irene Lupis AUTORITÀ PORTUALE DI NAPOLI COMUNE DI POTENZA COMUNE DI BARI Luigi di Bartolomeo UNIONCAMERE CALABRIA Stefano Porciani Vito Santarsiero COMUNE DI CAMPOBASSO Vicenzo Lella Antonio Panzarella AUTORITÀ PORTUALE DI NAPOLI COMUNE DI POTENZA REGIONE PUGLIA Anna Maria Coppola UNIONCAMERE CALABRIA Cristina Tranchino Patrizia Minardi COMUNE DI CAMPOBASSO Pasquale Farinola AUTORITÀ PORTUALE DI NAPOLI REGIONE BASILICATA TRIBUNALE DI BARI Paola Lozzi L’AQUILA Ugo Vestri Lucia Lamonea COMUNE DI CAMPOBASSO Antonella Di Stefano Franco Lucafò CAMERA DI COMMERCIO DELL’AQUILA AUTORITÀ PORTUALE DI NAPOLI TRIBUNALE DI POTENZA TRIBUNALE DI BARI Donata Ialonardi Mario Esti REGIONE MOLISE Paolo Giovani ROME CAMERA DI COMMERCIO DELL’AQUILA CAMERA DI COMMERCIO DI NAPOLI BOLOGNA Angelo Michele Iorio Gabriella Alemanno Teodora Ferrara Cinzia Romagnoli REGIONE MOLISE Ubaldo Alfonso AGENZIA DEL TERRITORIO CAMERA DI COMMERCIO DI BOLOGNA COMUNE DELL’AQUILA CAMERA DI COMMERCIO DI NAPOLI Armando Darterio Andrea Galardini Giuseppe Passaro Sara De Martini TRIBUNALE DI CAMPOBASSO Massimo Cialente AGENZIA DEL TERRITORIO COMUNE DI BOLOGNA COMUNE DELL’AQUILA CAMERA DI COMMERCIO DI NAPOLI Vincenzo Di Giacomo Mario Occhi Aldo Aimone Virginio Merola TRIBUNALE DI CAMPOBASSO Marco Fanfani AGENZIA DEL TERRITORIO COMUNE DI BOLOGNA COMUNE DELL’AQUILA COMUNE DI NAPOLI Susi Ribon CATANIA Maria Aprea Marika Milani Lucio Nardis AGENZIA DELLE ENTRATE COMUNE DI BOLOGNA COMUNE DELL’AQUILA COMUNE DI NAPOLI Santo Castiglione Paolo Savini AUTORITÀ PORTUALE DI CATANIA Vincenzo Di Martino Marco Piccaglia Giovanni Canzio AGENZIA DELLE ENTRATE COMUNE DI BOLOGNA CORTE D’APPELLO DELL’AQUILA COMUNE DI NAPOLI Riccardo Lentini Claudio Padua AUTORITÀ PORTUALE DI CATANIA Luigi De Magistris Enrico Cocchi Luigi Catelli MINISTERO DELLO SVILUPPO ECONOMICO REGIONE EMILIA ROMAGNA CORTE D’APPELLO DELL’AQUILA COMUNE DI NAPOLI Domenico Massimo Sapienza Daniela Ricci AUTORITÀ PORTUALE DI CATANIA Riccardo Roccasalva Lucia Ledda Augusto Pace MINISTERO DELLO SVILUPPO ECONOMICO TRIBUNALE DI BOLOGNA CORTE D’APPELLO DELL’AQUILA COMUNE DI NAPOLI CATANZARO Stefano Aprile Fabio Vittoria Pasquale Liccardo Michela Cambise MINISTERO DI GRAZIA E GIUSTIZIA TRIBUNALE DI BOLOGNA Rita Bevacqua REGIONE ABRUZZO COMUNE DI NAPOLI CAMERA DI COMMERCIO DI CATANZARO Fabio Bartolomeo Stefano Caldoro Marco D’Orazi Loretta Zuffada MINISTERO DI GRAZIA E GIUSTIZIA TRIBUNALE DI BOLOGNA Stefania Celestino REGIONE ABRUZZO REGIONE CAMPANIA CAMERA DI COMMERCIO DI CATANZARO Francesca Bigi Fausta Como Andrea Mosconi Roberto Ferrari MINISTERO DI GRAZIA E GIUSTIZIA UNIONCAMERE EMILIA ROMAGNA Alessandro Vartolo TRIBUNALE DELL’AQUILA TRIBUNALE DI NAPOLI CAMERA DI COMMERCIO DI CATANZARO Luigi Birritteri Raffaele Sdino Monia Rotilio MINISTERO DI GRAZIA E GIUSTIZIA CAGLIARI Laura Ciambrone TRIBUNALE DELL’AQUILA TRIBUNALE DI NAPOLI Ivan Doglio COMUNE DI CATANZARO Mauro Di Giacomo Luca Lanza AUTORITÀ PORTUALE DI CAGLIARI MINISTERO DI GRAZIA E GIUSTIZIA Paola Giacinti MILAN UNIONCAMERE CAMPANIA Piergiorgio Massidda COMUNE DI CATANZARO Marinella Rocca Daniela Intravaia AUTORITÀ PORTUALE DI CAGLIARI CAMERA DI COMMERCIO DI MILANO PADUA MINISTERO DI GRAZIA E GIUSTIZIA Gianluca Palaia Rossella Pinna COMUNE DI CATANZARO Eliana Romano Liana Benedetti Laura Malgeri CAMERA DI COMMERCIO DI CAGLIARI CAMERA DI COMMERCIO DI MILANO CAMERA DI COMMERCIO DI PADOVA MINISTERO DI GRAZIA E GIUSTIZIA Michele Traversa Vincenzo Barrili COMUNE DI CATANZARO Paolo Simonetti Roberta Tonellato Marzia Cardinali COMUNE DI CAGLIARI COMUNE DI MILANO CAMERA DI COMMERCIO DI PADOVA UNIONCAMERE NAZIONALE Anna Tavano Simonetta Bistrussu REGIONE CALABRIA Paola Viganò Fernando Schiavon Domenico Mauriello COMUNE DI CAGLIARI COMUNE DI MILANO COMUNE DI PADOVA UNIONCAMERE NAZIONALE Giovanna Gioia Riccardo Castrignano TRIBUNALE DI CATANZARO Salvatore Barbara Milena Schiavon COMUNE DI PADOVA TARANTO COMUNE DI CAGLIARI Domenico Ielasi COMUNE DI MILANO Francesco Benincasa TRIBUNALE DI CATANZARO Armando Stoppa Salvatore Farci Annamaria Bracciale AUTORITÀ PORTUALE DI TARANTO COMUNE DI CAGLIARI COMUNE DI MILANO COMUNE DI PADOVA Irene Lupis Silvia Coppolino UNIONCAMERE CALABRIA Flavio Zanonato Maria Cristina Mancini Maria Grazia Fantinelli AUTORITÀ PORTUALE DI TARANTO COMUNE DI CAGLIARI COMUNE DI MILANO COMUNE DI PADOVA Antonio Panzarella Sergio Prete UNIONCAMERE CALABRIA Manuela Romei Pasetti Sergio Paretta Roberto Munarin AUTORITÀ PORTUALE DI TARANTO COMUNE DI CAGLIARI COMUNE DI MILANO CORTE D’APPELLO DI VENEZIA GENOA Francesco Maraglino Marco Zanetti Graziella Pintus Maurizio Pezzotti CAMERA DI COMMERCIO DI TARANTO COMUNE DI CAGLIARI Roberta Caravella COMUNE DI MILANO REGIONE VENETO AUTORITÀ PORTUALE DI GENOVA Francesca Sanesi Ezio Bellavitis Silvia Tidu Giuliano Pisapia CAMERA DI COMMERCIO DI TARANTO COMUNE DI CAGLIARI Luigi Merlo COMUNE DI MILANO TRIBUNALE DI PADOVA AUTORITÀ PORTUALE DI GENOVA Ersilia Tuveri Paola Coletti TRIESTE Marco Sanguineri PALERMO COMUNE DI CAGLIARI REGIONE LOMBARDIA Andrea Ghersinich AUTORITÀ PORTUALE DI GENOVA Vincenzo Genco AUTORITÀ PORTUALE DI TRIESTE Massimo Zedda Antonio Dal Bianco CAMERA DI COMMERCIO DI PALERMO Andrea Susto REGIONE LOMBARDIA COMUNE DI CAGLIARI Paolo Guglia CAMERA DI COMMERCIO DI GENOVA Diego Cammarata AUTORITÀ PORTUALE DI TRIESTE Vincenzo Certo Roberto Nepomuceno COMUNE DI PALERMO Raffaella Bruzzone REGIONE LOMBARDIA REGIONE SARDEGNA Marina Monassi UNIONCAMERE LIGURIA Caterina Guercio AUTORITÀ PORTUALE DI TRIESTE Mariano Mariani Roberto Bichi COMUNE DI PALERMO REGIONE SARDEGNA TRIBUNALE DI MILANO ALESSANDRO DELFRATECAMERA Andrea Schirò DI COMMERCIO DI TRIESTE COMUNE DI PALERMO ACKNOWLEDGMENTS 103 TURIN Natalia d’Errico CATANIA Antonella Del Grosso Giuseppe Grasso Maria Loreta Raso STUDIO D’ERRICO AVVOCATI E DOTTORI Michele Diolosà STUDIO NOTARILE DEL GROSSO STUDIO NOTARILE GRASSO DOTT. CAMERA DI COMMERCIO DI TORINO COMMERCIALISTI ASSOCIATI SPEDIZIONIERI DOGANALI DI MICHELE DOTT.SSA ANTONELLA GIUSEPPE Romano Conti DIOLOSÀ & CO. SAS Patrizia Petricola Lodovico Mustilli Marco Assoro COMUNE DI TORINO STUDIO GNUDI Cosimo Indaco STUDIO PETRICOLA - CERTIFICATORE STUDIO NOTARILE MUSTILLI Spedizioniere Doganale ENERGETICO Claudio Demetri Giovanni Battistia Martelli Michele Nastri COMUNE DI TORINO STUDIO LEGALE MARTELLI & ASSOCIATI Franco Petrone Fabrizia Aquilio STUDIO NOTARILE NASTRI DOTT. Spedizioniere Doganale Libero Professionista MICHELE Piero Fassino Patrizia Contini COMUNE DI TORINO STUDIO LENZI E ASSOCIATI Giustino Iovannitti Teresa Iannace CATANZARO Ingegnere libero professionista Studio Legale Beatrice Greco Amelia Luca COMUNE DI TORINO STUDIO LUCA Antonio Bevacqua Antonio Patamia Eduardo Pace STUDIO COMMERCIALISTA BEVACQUA Ingegnere libero professionista Ingegnere libero professionista Livio Mandrile Valerio Auriemma COMUNE DI TORINO STUDIO NOTARILE AURIEMMA DOTT. Vittorio Iiritano Marco Senese VALERIO STUDIO COMMERCIALISTA IRITANO MILAN Ingegnere libero professionista Ernesto Pizzichetta Gianfranco Occhiuto ALDAR SRL - ENGINEERING EFFICIENCY COMUNE DI TORINO Marco Saladino Saladini Pilastri Luca Tirone STUDIO NOTARILE SALADINI PILASTRI STUDIO COMMERCIALISTA OCCHIUTO Luigi Rainero Studio Legale Gianfranco Presutti DOTT. MARCO SALADINO Valerio Donato BSW ENGINEERING SRL COMUNE DI TORINO Luigi Vinci Federico Sertori STUDIO DONATO Stefania Sammartano Ingegnere libero professionista Mauro Barbuto STUDIO NOTARILE SERTORI DOTT. Giuseppe Merante GIANNI, ORIGONI, GRIPPO & PARTNERS CORTE D’APPELLO DI TORINO FEDERICO STUDIO MERANTE Rosario Zacca PADUA Fulvio Ostengo Francesco Serantoni Maria Grazia Silvana Gemini GIANNI, ORIGONI, GRIPPO & PARTNERS AMBIENTE CONSULENZA S.A.S. 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MANUELA GENOA DOTTORI COMMERCIALISTI E AVVOCATI E CERTIFICAZIONE Daniela Farina Domenico Cambareri ENERGETICO-AMBIENTALE Luca Spallarossa Stefano Beghi STUDIO LEGALE AVV. DANIELA APRILE SPA STUDIO NOTARILE CAMBARERI DOTT. GIANNI, ORIGONI, GRIPPO & PARTNERS Enrico Amoruso FARINA - AVV.FILIPPO VIOLA DOMENICO STUDIO NOTARILE AMORUSO DOTT. Diego Tarì Stefania Sammartano Silvana Congiu APRILE SPA Giovannella Condò ENRICO GIANNI, ORIGONI, GRIPPO & PARTNERS STUDIO LEGALE CONGIU STUDIO NOTARILE CONDÒ DOTT.SSA Paolo Di Marcantonio Giovanni Rossi GIOVANNELLA Giacomo Sartor Cristina Muntoni CASASCO & NARDI SPA STUDIO NOTARILE DI MARCANTONIO GIANNI, ORIGONI, GRIPPO & PARTNERS STUDIO LEGALE MUNTONI Massimo Cremona DOTT. PAOLO Fabrizio Parodi STUDIO PIROLA PENNUTO ZEI & Patrizio Rigoni Maurizio Corona INTERGLOBO SRL Biagio Franco Spano ASSOCIATI NET ENGINEERING INTERNATIONAL STUDIO NOTARILE CORONA DOTT. STUDIO NOTARILE SPANO DOTT. BIAGIO MAURIZIO Luciana Carminati Giampiero Guarnerio Lavinia Francesca Fanan FRANCO SAIMARE SPA STUDIO ROEDL & PARTNER PIROLA PENNUTO ZEI & ASSOCIATI Carlo Mario De Magistris Filippo Fedele STUDIO NOTARILE DE MAGISTRIS Giovanni Contini Giorgio Spanio Ingegnere libero professionista GIOIA TAURO TECHNEA SRL PIROLA PENNUTO ZEI & ASSOCIATI Roberto Onano Domenico Parisi Giuseppe Lorusso STUDIO NOTARILE ONANO DOTT. Alessandro Vasta Marco Silva Ingegnere libero professionista CALSHIP - CALABRIA SHIPPING AGENCY ROBERTO TONUCCI & PARTNERS STUDIO ASSOCIATO DEI NOTAI Lucio Sanvito Maurizio Ingrosso GABRIELE CORCIULO E MARCO SILVA Vincenzo Anatella CONTSHIP ITALIA Paolo Giuggioli Studio Commercialista Spedizioniere Doganale Studio Legale Giovanna Giacomelli Michele Suriano Vito Foderano STUDIO GIACOMELLI Tommaso Pilo SERPORT GIOIA TAURO SRL Claudio Trevisan Studio Commercialista Spedizioniere Doganale Studio Legale Fabio Incastrini STUDIO INCASTRINI BOLOGNA Riccardo Corrias L’AQUILA Spedizioniere Doganale NAPLES Paolo Belloni UBERTI ENGINEERING WORKGROUP SRL Sandro Perfetto MPM INGEGENRIA S.R.L. 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