59415 Venezuela, R.B. © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher,The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail pubrights@worldbank.org. Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010: Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org. ISBN: 978-0-8213-7960-8 E-ISBN: 978-0-8213-8630-9 DOI: 10.1596/978-0-8213-7960-8 ISSN: 1729-2638 Library of Congress Cataloging-in-Publication data has been applied for. Printed in the United States Current features News on the Doing Business project http://www.doingbusiness.org Rankings How economies rank-from 1 to 183 http://www.doingbusiness.org/rankings/ Contents Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004 Introduction and a ranking simulation tool and Aggregate Rankings http://www.doingbusiness.org/reforms/ 5 - Year Measure of Historical data Cumulative Change Customized data sets since DB2004 http://www.doingbusiness.org/custom-query/ Starting a Business Methodology and research Dealing with The methodologies and research papers underlying Doing Business Construction Permits http://www.doingbusiness.org/Methodology/ Registering Property Download reports Access to Doing Business reports as well as subnational and regional Getting Credit reports, reform case studies and customized country and regional profiles Protecting Investors http://www.doingbusiness.org/reports/ Paying Taxes Subnational and regional projects Differences in business regulations at the subnational and regional Trading Across Borders level http://www.doingbusiness.org/subnational-reports/ Enforcing Contracts Law Library Closing a Business Online collection of business laws and regulations relating to business and gender issues Doing Business 2011 http://www.doingbusiness.org/law-library/ Business Reforms http://wbl.worldbank.org/ Local partners More than 8,200 specialists in 183 economies who participate in Doing Business http://www.doingbusiness.org/Local-Partners/Doing-Business/ Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. A set of regulations affecting 9 stages of a business's life are measured: starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing Business methodology has limitations. Other areas important to business such as an economy 's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in designing reform. The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD high-income economies. The following pages present the summary Doing Business indicators for Venezuela, R.B.. The data used for this economy profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region not only with one another but also with the "good practice" economy for each indicator. The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity to provide good examples of business regulation to other countries. These good -practice economies do not necessarily rank number 1 in the topic or indicator, but they are in the top 10. More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org). * Except for the Paying Taxes indicator that refers to the period January to December of 2009. Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology and the addition of new economies (in the case of the rankings). 1 Economy Rankings - Ease of Doing Business Venezuela, R.B. is ranked 172 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Venezuela, R.B. - Compared to global good practice economy as well as selected economies: Venezuela, R.B.'s ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 172 Starting a Business 144 Dealing with Construction Permits 96 Registering Property 101 Getting Credit 176 Protecting Investors 179 Paying Taxes 178 Trading Across Borders 167 Enforcing Contracts 74 Closing a Business 152 2 Summary of Indicators - Venezuela, R.B. Starting a Business Procedures (number) 17 Time (days) 141 Cost (% of income per capita) 30.2 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 11 Time (days) 395 Cost (% of income per capita) 227.7 Registering Property Procedures (number) 8 Time (days) 47 Cost (% of property value) 2.2 Getting Credit Strength of legal rights index (0-10) 2 Depth of credit information index (0-6) 0 Public registry coverage (% of adults) 0.0 Private bureau coverage (% of adults) 0.0 Protecting Investors Extent of disclosure index (0-10) 3 Extent of director liability index (0-10) 2 Ease of shareholder suits index (0-10) 2 Strength of investor protection index (0-10) 2.3 Paying Taxes Payments (number per year) 70 Time (hours per year) 864 Profit tax (%) 10.0 Labor tax and contributions (%) 18.0 Other taxes (%) 24.6 Total tax rate (% profit) 52.6 Trading Across Borders Documents to export (number) 8 Time to export (days) 49 Cost to export (US$ per container) 2590 Documents to import (number) 9 Time to import (days) 71 Cost to import (US$ per container) 2868 3 Enforcing Contracts Procedures (number) 29 Time (days) 510 Cost (% of claim) 43.7 Closing a Business Recovery rate (cents on the dollar) 5.9 Time (years) 4.0 Cost (% of estate) 38 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy's regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy's business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions. This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.16 0.12 Doing 0.08 business has become easier (DB 0.04 change score) 0.00 -0.04 Doing business has -0.08 become more difficult or more -0.12 Mexico Brazil Ecuador Bolivia Argentina Venezuela, costly R.B. 6 1. Benchmarking Starting a Business Regulations: Venezuela, R.B. is ranked 144 overall for Starting a Business. Ranking of Venezuela, R.B. in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of Min. capital (number) income per (% of income Economies capita) per capita) Denmark* 0.0 New Zealand* 1 1 0.0 Selected Economy Venezuela, R.B. 17 141 30.2 0.0 Comparator Economies Argentina 14 26 14.2 2.7 Bolivia 15 50 100.8 2.5 Brazil 15 120 7.3 0.0 Ecuador 13 56 32.6 4.9 Mexico 6 9 12.3 9.2 * The following economies are also good practice economies for : Procedures (number): Canada Cost (% of income per capita): Slovenia 8 2. Historical data: Starting a Business in Venezuela, R.B. Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 142 144 Procedures (number) 16 16 16 17 Time (days) 141 141 141 141 Cost (% of income per capita) 28.2 26.8 24.0 30.2 Min. capital (% of income per capita) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Venezuela, R.B. over the past 4 years: 9 Starting a Business Summary - Venezuela, R.B. This table summarizes the procedures and costs associated with setting up a business in the República Bolivariana de Venezuela. STANDARDIZED COMPANY Legal Form: Sociedad Anónima (SA) City: Caracas Registration Requirements: No: Procedure Time to complete Cost to complete 1 Reserve company name 1 VEF 163 2 Obtain an approval of the company name. 3 no charge 3 Lawyer must prepare and legalize the company's constitutive 5 VEF 3,000 documents and social statutes. 4 Open bank account 1 no charge 5 Register at the local mercantile registry (Registro Mercantil) 30 VEF 3,149 6 * Publish articles in a local newspaper (Gaceta Forense del Registro 3 VEF 108 Mercantil) 7 * Register company books 1 VEF 42 10 8 Register at the local Servicio Nacional Integrado de Administración 1 no charge Aduanera y Tributaria (SENIAT) with Registro Unico de Información Fiscal (RIF) to obtain fiscal number 9 Obtain tax clearance certificate at municipal level (Instituto Municipal 1 VEF 20 de Aseo Urbano). 10 Register with the Ministry of Labor 1 no charge 11 Go through a labor inspection (by the Labor Inspectorate). 8 VEF 0 12 Register for social security at a local regional fund. 90 no charge 13 * Register at the National Institute of Socialist Cooperation & Education 1 no charge 14 * Obtain fire approval and undergo an inspection. 28 no charge 15 * Obtain conformity of use certificate (zoning permit) 15 VEF 326 16 * Obtain industrial or commercial license from competent municipality 50 VEF 651 17 * Register at National Bank for Housing and Habitat - Banco Nacional 1 no charge de Vivienda y Habitat (BANAVIH) * Takes place simultaneously with another procedure. 11 Starting a Business Details - Venezuela, R.B. Procedure 1 Reserve company name Time to complete: 1 Cost to complete: VEF 163 Comment: To reserve a company name, founders must buy the name search form (busqueda de la denominación) at the Registro Mercantil. Fee schedule to reserve company name: Search for company name: VEB 32.5. Reservation of company name: VEB 130. Procedure 2 Obtain an approval of the company name. Time to complete: 3 Cost to complete: no charge Comment: After reserving the company name, the applicant must pay the cited fee at a bank and return to the Registry 3 days later to show the bank deposit slip and obtain the company name approval. Procedure 3 Lawyer must prepare and legalize the company's constitutive documents and social statutes. Time to complete: 5 Cost to complete: VEF 3,000 Comment: Legal assessment is required in the procurement of the company incorporation documents; the assessment must follow all formalities cited in Articles 211 to 215 of the Code of Commerce. The average cost for this procedure would be around VEB 3,000. Procedure 4 Open bank account Time to complete: 1 Cost to complete: no charge Comment: The Mercantile Registry requires evidence of a bank account. Although founders commonly deposit 20% of declared capital, there is no minimum amount; by law, the Registrar determines the required amount. Procedure 5 Register at the local mercantile registry (Registro Mercantil) Time to complete: 30 Cost to complete: VEF 3,149 Comment: Founders must register with the local mercantile registry. This procedure must be done within 30 days of name reservation. The employer must fill out and submit a registration (derechos registrales) form. 12 The company registration and incorporation fees are linked to a measure called the tax unit (UT), which the government updates at least once a year. The UT was increased from VEB 55 in 2009 to VEF 65 in February 2010 (equivalent to 65 VEB). Fee schedule for company registration and incorporation: - 1% of the total subscribed capital. - 2 UT fixed rate plus 0.1 UT per page. - 5 UT fixed rate for fiscal rights plus 0.1 UT per page. - 0.02 UT fiscal stamps per page of the original document. - 0.02 UT fiscal stamps per page/per copy for the Registry. - 0.02 UT fiscal stamps per page/per certified copy for the company. Procedure 6 Publish articles in a local newspaper (Gaceta Forense del Registro Mercantil) Time to complete: 3 Cost to complete: VEF 108 Comment: Procedure 7 Register company books Time to complete: 1 Cost to complete: VEF 42 Comment: Companies must register corporate books (Shareholders' Book, Shareholders' Meeting Minutes Book and, if applicable, Board of Directors Minutes Book) and accounting books (Inventory Book, Daily Book and Ledger). Procedure 8 Register at the local Servicio Nacional Integrado de Administración Aduanera y Tributaria (SENIAT) with Registro Unico de Información Fiscal (RIF) to obtain fiscal number Time to complete: 1 Cost to complete: no charge Comment: SENIAT is the National integrated service of customs and tax administration and RIF is the Fiscal Registry. The Company must file an electronic form which is downloaded from SENIAT's Web page (www.seniat.gov.ve). Such form must be filed along with the required documentation. SENIAT now also requires that Company's shareholders, directors and legal representative must be registered with the RIF prior to obtaining the Company's RIF. Procedure 9 Obtain tax clearance certificate at municipal level (Instituto Municipal de Aseo Urbano). Time to complete: 1 Cost to complete: VEF 20 Comment: Procedure 10 Register with the Ministry of Labor Time to complete: 1 Cost to complete: no charge Comment: The company and the company employees have to register with the Ministry of Labor. The Registration also includes the Statistics Register and the Deparment of Hygiene and Safety. The applicants can register online at www.mintra.gob.ve 13 Procedure 11 Go through a labor inspection (by the Labor Inspectorate). Time to complete: 8 Cost to complete: VEF 0 Comment: Procedure 12 Register for social security at a local regional fund. Time to complete: 90 Cost to complete: no charge Comment: Registering for social security can take up to 6 months. Incorporators often must contact the Regional Fund two or three times a week to ensure that a social security number is being issued. Procedure 13 Register at the National Institute of Socialist Cooperation & Education Time to complete: 1 Cost to complete: no charge Comment: Employers with a minimum of five employees must register at the National Educational Co-operation Institute; the employees' social security numbers are required. Procedure 14 Obtain fire approval and undergo an inspection. Time to complete: 28 Cost to complete: no charge Comment: It takes 8 days for assignment of an operating inspector and 15­20 days for a response. Procedure 15 Obtain conformity of use certificate (zoning permit) Time to complete: 15 Cost to complete: VEF 326 Comment: Documents required are the mercantile registration, external building maps, and a photo of the premises. Procedure 16 Obtain industrial or commercial license from competent municipality Time to complete: 50 Cost to complete: VEF 651 Comment: To obtain an industrial or commercial license from a competent municipality, the founders must file copies of registration, a sanitation certificate, the lease of the premises, the latest balance sheet, and a declaration of the number of employees. Procedure 17 Register at National Bank for Housing and Habitat - Banco Nacional de Vivienda y Habitat (BANAVIH) Time to complete: 1 Cost to complete: no charge 14 Comment: The employers must register with BANAVIH through its website: www.banavih.gov.ve. Employers must verify their list of employees monthly and pay the contribution. 15 16 1. Benchmarking Dealing with Construction Permits Regulations: Venezuela, R.B. is ranked 96 overall for Dealing with Construction Permits. Ranking of Venezuela, R.B. in Dealing with Construction Permits - Compared to good practice and selected economies: 17 The following table shows Dealing with Construction Permits data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) income per Economies capita) Denmark 6 Qatar 0.8 Singapore 25 Selected Economy Venezuela, R.B. 11 395 227.7 Comparator Economies Argentina 28 338 133.9 Bolivia 17 249 109.1 Brazil 18 411 46.6 Ecuador 19 155 213.2 Mexico 11 105 117.0 18 2. Historical data: Dealing with Construction Permits in Venezuela, R.B. Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 97 96 Procedures (number) 11 11 11 11 Time (days) 395 395 395 395 Cost (% of income per capita) 326.0 344.7 233.0 227.7 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Venezuela, R.B. over the past 4 years: 19 Dealing with Construction Permits in Venezuela, R.B. The table below summarizes the procedures, time, and costs to build a warehouse in the República Bolivariana de Venezuela. BUILDING A WAREHOUSE City: Caracas Registration Requirements: No: Procedure Time to complete Cost to complete 1 Request and obtain the assignment of the basic urban variables for land 150 days VEF 2 development 2 * Pay the corresponding fees at the bank 1 day VEF 24,386 3 * Request and obtain a certificate of compliance with basic urban variables 42 days no charge for buildings 4 * Request and obtain a certificate from the Zoning and Road Construction 126 days VEF 22,956 Division 5 Request and obtain a certificate of compliance with urban variables and a 42 days no charge certificate of construction startup 6 Request and receive a fire inspection 1 day VEF 385 7 Receive final inspection and obtain construction completion certificate 14 days no charge 20 8 * Request and connect to water supply and sewage service 187 days no charge 9 * Request and connect to electric power service 187 days VEF 22 10 * Request and connect to a regular telephone line 30 days VEF 250 11 * Register the building at the Subordinate Registry (Registro Subalterno) 14 days VEF 8,300 * Takes place simultaneously with another procedure. 21 Dealing with Construction Permits Details - Venezuela, R.B. Procedure 1 Request and obtain the assignment of the basic urban variables for land development Time to complete: 150 days Cost to complete: VEF 2 Agency: Municipal Urban Development and Cadastre Department (Dirección de Desarrollo Urbano y Catastro del Municipio) Comment: BuildCo must request assignment of the Basic Urban Variables stipulated by the Organic Law for Urban Development. Alternatively, a preliminary consultation or an architectural draft is prepared in order to assess compliance with the Basic Urban Variables for Buildings. The taxable unit was increased from VEF 46 to VEF 55. This increase has become effective since publication in the Official Gazette of January of 2009. Procedure 2 Pay the corresponding fees at the bank Time to complete: 1 day Cost to complete: VEF 24,386 Agency: Commercial banks Comment: Municipal taxes and fees are paid at any commercial bank at which the municipality has an account. Procedure 3 Request and obtain a certificate of compliance with basic urban variables for buildings Time to complete: 42 days Cost to complete: no charge Agency: Dirección de Desarrollo Urbano y Catastro del Municipio Comment: The certificate of compliance with Basic Urban Variables is required to begin the construction. Procedure 4 Request and obtain a certificate from the Zoning and Road Construction Division Time to complete: 126 days Cost to complete: VEF 22,956 Agency: Dirección de Desarrollo Urbano y Catastro del Municipio Comment: BuildCo must obtain from the Zoning and Road Construction Division (Dirección de Desarrollo Urbano y Catastro del Municipio) a certificate stating that the new project is compatible with the existing or planned roads. Procedure 5 Request and obtain a certificate of compliance with urban variables and a certificate of construction startup Time to complete: 42 days 22 Cost to complete: no charge Agency: Dirección de Desarrollo Urbano y Catastro del Municipio Comment: The general building project must be submitted to the Zoning and Road Construction Division (Dirección de Desarrollo Urbano y Catastro del Municipio) to obtain the certificate of compliance with urban variables and the certificate of construction startup. Procedure 6 Request and receive a fire inspection Time to complete: 1 day Cost to complete: VEF 385 Agency: Fire Department of the corresponding Municipality Comment: This inspection is requested at the municipal fire station. The fire inspection approval certificate is delivered by the Fire Department the day after the inspection is performed, provided that the building complies with the Fire Department regulations and the Commission for Industrial Standards (COVENIN) standards. If the building does not comply with these regulations, the Fire Department draws up a report stating that the inspection has not been approved and detailing those aspects that must be corrected in the building in order to pass the fire inspection. The approximate waiting time is 2 weeks. Procedure 7 Receive final inspection and obtain construction completion certificate Time to complete: 14 days Cost to complete: no charge Agency: Dirección de Desarrollo Urbano y Catastro del Municipio Comment: Once the construction has been completed, a construction completion certificate must be obtained. To obtain the permit, the Fire Department certificate is mandatory, as is compliance with all applicable regulations. Procedure 8 Request and connect to water supply and sewage service Time to complete: 187 days Cost to complete: no charge Agency: Hidrocapital Comment: For a consumption of 3,600 liters per month, the cost is VEF 2,366.8. For a consumption of 2,000 liters per month, the cost is VEF 1,322.68. Water supply is obtained through connection to the sector's main pipeline, following a request to the corresponding company, which, in this case, is Hidrocapital. In some cases, buildings have their own groundwater well, making it unnecessary to request water supply services from Hidrocapital. Connection to the sewage system depends on whether this service exists in the sector where the building is located. If there is no sewage system, the Zoning and Road Construction Division (Dirección de Desarrollo Urbano y Catastro) requires the installation of septic tanks or waste treatment plants for wastes to be treated before being discharged into the environment. Depending on the size of the building and its intended use, the appropriate permits must be requested at the Ministry of People's Power for 23 Environment (changed in 2007 from the Ministry of the Environment and Natural Resources), because such wastes might have a negative impact on the environment. Due to a backlog and a massive number of applications, this takes on average 6 months. Procedure 9 Request and connect to electric power service Time to complete: 187 days Cost to complete: VEF 22 Agency: La Electricidad de Caracas Comment: The connection cost is calculated as follows: - One phase (110 volts): VEF 5. - Two or three phases (220­330 volts): VEF 22. - Three phases: VEF 22. Due to a backlog and a massive number of applications, this procedure takes on average 6 months. Procedure 10 Request and connect to a regular telephone line Time to complete: 30 days Cost to complete: VEF 250 Agency: Compañía Anónima Nacional de Teléfonos (C.A.N.T.V.) Comment: The application for a regular telephone line is made by calling the client call centers of the telephone companies, and the process depends on telephone line availability in the sector where the building is located. The company in charge of regular telephone lines in commercial residences and establishments is called the Compañía Anónima Nacional de Teléfonos (CANTV). At present, competition from cellular phone companies is reducing the demand for regular telephone lines. Procedure 11 Register the building at the Subordinate Registry (Registro Subalterno) Time to complete: 14 days Cost to complete: VEF 8,300 Agency: Subordinate Registry (Registro Subalterno) Comment: The building may be registered at the Subordinate Registry (Registro Subalterno) during or after construction. The title to the land on which the building is constructed and building plans must be submitted so Registry officials can calculate the building registration fee. 24 25 1. Benchmarking Registering Property Regulations: Venezuela, R.B. is ranked 101 overall for Registering Property. Ranking of Venezuela, R.B. in Registering Property - Compared to good practice and selected economies: 26 The following table shows Registering Property data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) property Economies value) New Zealand* 2 Norway* 1 Saudi Arabia 0.0 Selected Economy Venezuela, R.B. 8 47 2.2 Comparator Economies Argentina 6 52 7.0 Bolivia 7 92 4.8 Brazil 14 42 2.7 Ecuador 9 16 2.2 Mexico 5 74 5.2 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 27 2. Historical data: Registering Property in Venezuela, R.B. Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 96 101 Procedures (number) 8 8 8 8 Time (days) 47 47 47 47 Cost (% of property value) 2.2 2.2 2.2 2.2 3. The following graphs illustrate the Registering Property sub indicators in Venezuela, R.B. over the past 4 years: 28 Registering Property in Venezuela, R.B. This topic examines the steps, time, and cost involved in registering property in the República Bolivariana de Venezuela. STANDARDIZED PROPERTY Property Value: 1,236,528.42 City: Caracas Registration Requirements: No: Procedure Time to complete Cost to complete 1 * Obtain the Municipal Solvency Certificate at the 14 days (simultaneous VEF 71.5 (VEF 65 or 1 Tax Municipality with procedures 2 and Unit for administrative fees 3) + VEF 5.5 or 0,1 Tax Unit) 2 * Obtain a certificate of solvency from the water 10 days (simultaneous VEF 10 company with procedures 1 and 3) 3 * Obtain a non-encumbrance certificate for the last 10 2 days (simultaneous VEF 500-700 for years from Registry with procedures 1 and administrative fee 2) 29 4 Sales agreement is drafted by lawyer 2 days Lawyer's fees according to the following cumulative schedule: Property value (in VEF)Lawyer fees Under 100VEF 30 From 101 to 2,0002.5% of contract value From 2,000 to 5,0002.0% of contract value Over 5,0001.5% of contract value 5 The sale agreement is presented to the Registry 1 day no cost Office for its revision and taxes and fees are liquidated 6 Payment of taxes at a private commercial bank 1 day 0.1% of purchase price (Servicios Autónomos) + 0.5% of purchase price (Income Tax) + VEF 325 (5 Tax Unit) 7 Present all the documents to the Registry 14 ­ 28 days VEF 48.9 8 The sale document is signed by the registrar 1 day no cost * Takes place simultaneously with another procedure. 30 Registering Property Details - Venezuela, R.B. Procedure 1 Obtain the Municipal Solvency Certificate at the Municipality Time to complete: 14 days (simultaneous with procedures 2 and 3) Cost to complete: VEF 71.5 (VEF 65 or 1 Tax Unit for administrative fees + VEF 5.5 or 0,1 Tax Unit) Agency: Municipality Comment: The Municipal Solvency Certificate ("Certificado de Solvencia Municipal"), showing the tax solvency on urban immovables, must be obtained at the pertinent cadastre of the municipality where the immovable is located. For this, the seller must request the statement of account of the immovable that he wishes to dispose of, and proceed to the pertinent payment. The tax unit was increased on February 5th 2010 from VEF 55 to VEF 65 (Official Gazette number 39.361). Procedure 2 Obtain a certificate of solvency from the water company Time to complete: 10 days (simultaneous with procedures 1 and 3) Cost to complete: VEF 10 Agency: Water Company Comment: The seller presents his latest water bill that he has paid in order to obtain a certificate of solvency (solvencia de servicio) from the water company, Hidrocapital. Procedure 3 Obtain a non-encumbrance certificate for the last 10 years from Registry Time to complete: 2 days (simultaneous with procedures 1 and 2) Cost to complete: VEF 500-700 for administrative fee Agency: Registry Comment: The certificate of encumbrances is not legally required, but it is usually obtained in practice (and requested by the purchaser). This example is a case of a title ten years old. Procedure 4 Sales agreement is drafted by lawyer Time to complete: 2 days Cost to complete: Lawyer's fees according to the following cumulative schedule: Property value (in VEF)Lawyer fees Under 100VEF 30 From 101 to 2,0002.5% of contract value From 2,000 to 5,0002.0% of contract value Over 5,0001.5% of contract value Comment: According to the "Ley de Abogados", all documents that are presented to the Registry have to be approved by a lawyer. In practice, the lawyer also drafts the sales agreement. The lawyer's fees were estimated based on the "Reglamento de Honorario Mínimo", but are not binding on 31 lawyers in Caracas. Procedure 5 The sale agreement is presented to the Registry Office for its revision and taxes and fees are liquidated Time to complete: 1 day Cost to complete: no cost Agency: Registry Comment: The sale agreement is presented to the local Registry Office for its revision and the calculation of taxes and fees. After a careful revision, the registrar calculates the taxes due to the Servicio Nacional Integrado de Administración Tributaria (SENIAT), or National Tax Authority that will equal 1% of the purchase price. The payments due for Servicios Autonomos amount to 10% of the payments made to SENIAT (0.1% of purchased price). It must be noted that the tax to SENIAT is not actually paid. The law on public registries (Ley de Registro Público) has been derogated by 1999, but the payment of this tax went on until the Supreme Court declared it unconstitutional in 2001. The new law, trying to change the system of registration in Venezuela, did not address these taxes, so that there is a legal vacuum on these matters. The same happens with the payments to Servicios Autonomos. However, Servicios Autonomos is still being paid, despite its lack of legality, because the public registries are financed with these funds. Otherwise, public registries should be closed. The SENIAT payment is calculated just to compute the payment to Servicios Autónomos. Procedure 6 Payment of taxes at a private commercial bank Time to complete: 1 day Cost to complete: 0.1% of purchase price (Servicios Autónomos) + 0.5% of purchase price (Income Tax) + VEF 325 (5 Tax Unit) Agency: Commercial Bank Comment: After the presentation of the sale agreement to the Registry Office, the taxes due to Servicios Autónomos are paid in a private bank. The Income Tax must also be paid at the same private bank (0.5% of purchase price), and as a tax of VEF 230 (dquivalent to VEB 230,000.00 or 5 Tax Unit) is due to the Hacienda Publica Municipal and paid to its account at the bank. Procedure 7 Present all the documents to the Registry Time to complete: 14 ­ 28 days Cost to complete: VEF 48.9 Agency: Registry Comment: The user must go to the "Departamento de Presentaciones" in the Registry's office and present the sale document, the payments receipts and the Municipal Solvency Certificate obtained at the Municipality. The document is reviewed carefully by the Revision Department, verifying the identity of the owners, boundaries, the fulfillment of judicial decisions related to the property, and other information. The date for the signature by the registrar is set and parties must come back on that day for the final step. Since 2005, staff at the Registry is inclined to use discretion (jurisprudencia) in dealing with cases and may ask the clients two times for extra documents, thus delaying this procedure. The documentation shall include: Certificado de Solvencia Municipal (obtained in Procedure 1) 32 Tax payment receipts (obtained in Procedure 5) Copy of RIF (Registro de Información Fiscal or Fiscal Information Register) of both buyer and seller If there is any authorization by the meetings of the pertinent companies, copies of those authorizing the sale of the immovable. If acting through an attorney-in-fact, a copy of his/her identity card and a copy of the power-of-attorney. Procedure 8 The sale document is signed by the registrar Time to complete: 1 day Cost to complete: no cost Agency: Registry Comment: The sale document is signed by the Registrar under the presence of the parties and two witnesses. 33 34 1. Benchmarking Getting Credit Regulations: Venezuela, R.B. is ranked 176 overall for Getting Credit. Ranking of Venezuela, R.B. in Getting Credit - Compared to good practice and selected economies: 35 The following table shows Getting Credit data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Strength of Depth of Public Private legal rights credit registry bureau Economies index (0-10) information coverage (% coverage (% index (0-6) of adults) of adults) New Zealand* 100.0 Portugal 67.1 Singapore* 10 United Kingdom 6 Selected Economy Venezuela, R.B. 2 0 0.0 0.0 Comparator Economies Argentina 4 6 30.8 100.0 Bolivia 1 6 11.3 31.4 Brazil 3 5 26.9 53.5 Ecuador 3 5 36.5 45.0 Mexico 5 6 0.0 71.6 * The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index. 36 2. Historical data: Getting Credit in Venezuela, R.B. Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 176 176 Strength of legal rights index (0-10) 2 2 2 2 Depth of credit information index (0-6) 0 0 0 0 Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0 Public registry coverage (% of adults) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Getting Credit sub indicators in Venezuela, R.B. over the past 4 years: 37 Getting Credit in Venezuela, R.B. The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in the República Bolivariana de Venezuela. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 0 bureau registry Are data on both firms and individuals distributed? No No 0 Are both positive and negative data distributed? No No 0 Does the registry distribute credit information from retailers, trade No No 0 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? No No 0 Is data on all loans below 1% of income per capita distributed? No No 0 Is it guaranteed by law that borrowers can inspect their data in the No No 0 largest credit registry? Coverage 0.0 0.0 Number of individuals 0 0 Number of firms 0 0 38 Strength of legal rights index (0-10) 2 Can any business use movable assets as collateral while keeping possession of the assets; and any financial No institution accept such assets as collateral ? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, No without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without No requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend automatically to the products, Yes proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations No and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No grantor's name of a security right ? Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? Yes Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No Does the law authorize parties to agree on out of court enforcement? No 39 40 1. Benchmarking Protecting Investors Regulations: Venezuela, R.B. is ranked 179 overall for Protecting Investors. Ranking of Venezuela, R.B. in Protecting Investors - Compared to good practice and selected economies: 41 The following table shows Protecting Investors data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Venezuela, R.B. 2.3 Comparator Economies Argentina 4.7 Bolivia 4.0 Brazil 5.3 Ecuador 4.0 Mexico 6.0 42 2. Historical data: Protecting Investors in Venezuela, R.B. Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 178 179 Strength of investor protection index (0-10) 2.3 2.3 2.3 2.3 3. The following graph illustrates the Protecting Investors index in Venezuela, R.B. compared to best practice and selected Economies: 9.7 6.0 5.3 4.7 4.0 4.0 2.3 il a o az tin nd , r ia ic .B la do Br liv ex R zue a en ua al M Bo rg Ze e Ec . en A ew V N Note: The higher the score, the greater the investor protection. 43 Protecting Investors in Venezuela, R.B. The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in the República Bolivariana de Venezuela. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 3 2 What corporate body provides legally sufficient approval for the transaction? 0 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 0 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 1 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 0 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 2 0 Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 1 Whether shareholders can hold the approving body (the CEO or board of directors) liable for the damage that the Buyer-Seller transaction causes to the company? 0 Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 0 Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 44 0 Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 Whether fines and imprisonment can be applied against Mr. James? 1 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? Ease of shareholder suits index (0-10) 2 0 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 2 Whether the plaintiff can directly question the defendant and witnesses during trial? 0 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 0 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 0 Whether the level of proof required for civil suits is lower than that of criminal cases? 0 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 2.3 45 46 1. Benchmarking Paying Taxes Regulations: Venezuela, R.B. is ranked 178 overall for Paying Taxes. Ranking of Venezuela, R.B. in Paying Taxes - Compared to good practice and selected economies: 47 The following table shows Paying Taxes data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Payments Time (hours Total tax rate (number per per year) (% profit) Economies year) Maldives* 3 0 Timor-Leste 0.2 Selected Economy Venezuela, R.B. 70 864 52.6 Comparator Economies Argentina 9 453 108.2 Bolivia 42 1080 80.0 Brazil 10 2600 69.0 Ecuador 8 654 35.3 Mexico 6 404 50.5 * The following economies are also good practice economies for : Payments (number per year): Qatar 48 2. Historical data: Paying Taxes in Venezuela, R.B. Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 182 178 Total tax rate (% profit) 54.6 56.6 61.1 52.6 Payments (number per year) 70 70 71 70 Time (hours per year) 864 864 864 864 3. The following graphs illustrate the Paying Taxes sub indicators in Venezuela, R.B. over the past 4 years: 49 Paying Taxes in Venezuela, R.B. The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Venezuela, R.B., as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR Stamp duty 1 various rates Value added tax (VAT) 12 384 12.0% value added Property tax 12 0.1% building 0.10 value Anti-drug tax 1 1.0% net income 0.30 Fuel tax 1 30%-50% fuel 1.30 consumption Training tax 4 2.0% gross salaries 2.30 Housing subsystem tax 12 2.0% gross salaries 2.30 Unemployment relief 0 paid jointly 2.0% gross salaries 2.30 benefit contribution Science Technology and 1 0.5% territorial 8.80 Innovation tax annual gross income 50 Corporate income tax 13 120 6%-34% taxable profit 9.70 (progressive scale) Social security 12 360 10.0% gross salaries 11.30 contributions Municipal Tax 1 0.8% gross income 14.30 Totals 70 864 52.6 51 52 1. Benchmarking Trading Across Borders Regulations: Venezuela, R.B. is ranked 167 overall for Trading Across Borders. Ranking of Venezuela, R.B. in Trading Across Borders - Compared to good practice and selected economies: 53 The following table shows Trading Across Borders data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Documents to Time to Cost to Documents to Time to Cost to export export (days) export (US$ import import (days) import (US$ Economies (number) per (number) per container) container) Denmark* 5 France 2 2 Malaysia 450 Singapore 4 439 Selected Economy Venezuela, R.B. 8 49 2590 9 71 2868 Comparator Economies Argentina 9 13 1480 7 16 1810 Bolivia 8 19 1425 7 23 1747 Brazil 8 13 1790 7 17 1730 Ecuador 9 20 1345 7 29 1332 Mexico 5 12 1420 4 12 1880 * The following economies are also good practice economies for : Time to export (days): Estonia 54 2. Historical data: Trading Across Borders in Venezuela, R.B. Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 166 167 Cost to export (US$ per container) 2400 2590 2590 2590 Cost to import (US$ per container) 2400 2868 2868 2868 Documents to export (number) 8 8 8 8 Documents to import (number) 9 9 9 9 Time to export (days) 45 49 49 49 Time to import (days) 65 71 71 71 3. The following graphs illustrate the Trading Across Borders sub indicators in Venezuela, R.B. over the past 4 years: 55 56 Trading Across Borders in Venezuela, R.B. These tables list the procedures necessary to import and export a standardized cargo of goods in Venezuela, R.B.. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 34 640 Customs clearance and technical control 5 300 Ports and terminal handling 7 450 Inland transportation and handling 3 1200 Totals 49 2590 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 54 645 Customs clearance and technical control 7 523 Ports and terminal handling 7 500 Inland transportation and handling 3 1200 Totals 71 2868 57 Documents for Export and Import Export Bill of lading Certificate of origin Commercial invoice Customs export declaration Equipment interchange receipt Export license (from CADIVI) Foreign exchange registration Packing list Import Bill of lading Cargo release order Certificate of fumigation Certificate of origin Commercial invoice Customs import declaration Import license (from CADIVI) Technical standard/health certificate Terminal handling receipts 58 59 1. Benchmarking Enforcing Contracts Regulations: Venezuela, R.B. is ranked 74 overall for Enforcing Contracts. Ranking of Venezuela, R.B. in Enforcing Contracts - Compared to good practice and selected economies: 60 The following table shows Enforcing Contracts data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) claim) Economies Bhutan 0.1 Ireland 20 Singapore 150 Selected Economy Venezuela, R.B. 29 510 43.7 Comparator Economies Argentina 36 590 16.5 Bolivia 40 591 33.2 Brazil 45 616 16.5 Ecuador 39 588 27.2 Mexico 38 415 32.0 61 2. Historical data: Enforcing Contracts in Venezuela, R.B. Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 73 74 Procedures (number) 29 29 29 29 Time (days) 510 510 510 510 Cost (% of claim) 43.7 43.7 43.7 43.7 3. The following graphs illustrate the Enforcing Contracts sub indicators in Venezuela, R.B. over the past 4 years: 62 Enforcing Contracts in Venezuela, R.B. This topic looks at the efficiency of contract enforcement in Venezuela, R.B.. Nature of Procedure (2010) Indicator Procedures (number) 29 Time (days) 510 Filing and service 95.0 Trial and judgment 320.0 Enforcement of judgment 95.0 Cost (% of claim)* 43.70 Attorney cost (% of claim) 21.5 Court cost (% of claim) 7.2 Enforcement Cost (% of claim) 15.0 63 Court information: Caracas Municipal Court ("Tribunal de Municipio de la Circunscripcion Judicial del Area Metropolitana de Caracas") * Claim assumed to be equivalent to 200% of income per capita. 64 65 1. Benchmarking Closing Business Regulations: Venezuela, R.B. is ranked 152 overall for Closing a Business. Ranking of Venezuela, R.B. in Closing Business - Compared to good practice and selected economies: 66 The following table shows Closing Business data for Venezuela, R.B. compared to good practice and comparator economies: Good Practice Recovery rate Time (years) Cost (% of (cents on the estate) Economies dollar) Ireland 0.4 Japan 92.7 Singapore* 1 Selected Economy Venezuela, R.B. 5.9 4.0 38 Comparator Economies Argentina 32.8 2.8 12 Bolivia 39.3 1.8 15 Brazil 17.1 4.0 12 Ecuador 17.0 5.3 18 Mexico 66.7 1.8 18 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 67 2. Historical data: Closing Business in Venezuela, R.B. Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 151 152 Time (years) 4.0 4.0 4.0 4.0 Cost (% of estate) 38 38 38 38 Recovery rate (cents on the dollar) 6.6 6.0 6.0 5.9 3. The following graphs illustrate the Closing Business sub indicators in Venezuela, R.B. over the past 4 years: 68 Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems. The top 10 most-improved in Doing Business 2011 Dealing with Construction Trading Across Borders Positive Change Registering Property Enforcing Contracts Protecting Investors Starting a Business Closing a Business Negative Change Getting Credit Paying Taxes Permits Economy Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam * For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking. 69 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brazil Brazil eased business start-up by further enhancing the electronic synchronization between federal and state tax authorities. Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam made trading easier. Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks. Ecuador Ecuador made starting a business easier by introducing an online registration system for social security. Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. Mexico Mexico launched an online one-stop shop for initiating business registration. Mexico improved construction permitting by merging and streamlining procedures related to zoning and utilities. Mexico increased taxes on companies by raising several tax rates, including the corporate income tax and the rate on cash deposits. At the same time, the administrative burden was reduced slightly with more options for online payment and increased use of accounting software. Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals. Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank's public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate. 70 Venezuela, R.B. República Bolivariana de Venezuela made starting a business more difficult by introducing a new procedure for registering a company. República Bolivariana de Venezuela abolished the tax on financial transactions. Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors. Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations and introducing scanning machines at border posts. Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records. 71 72