58332 Belgium © 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 Belgium. 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 Belgium is ranked 25 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Belgium - Compared to global good practice economy as well as selected economies: Belgium's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 25 Starting a Business 31 Dealing with Construction Permits 41 Registering Property 177 Getting Credit 46 Protecting Investors 16 Paying Taxes 70 Trading Across Borders 44 Enforcing Contracts 21 Closing a Business 8 2 Summary of Indicators - Belgium Starting a Business Procedures (number) 3 Time (days) 4 Cost (% of income per capita) 5.4 Min. capital (% of income per capita) 19.6 Dealing with Construction Permits Procedures (number) 14 Time (days) 169 Cost (% of income per capita) 64.1 Registering Property Procedures (number) 8 Time (days) 79 Cost (% of property value) 12.7 Getting Credit Strength of legal rights index (0-10) 7 Depth of credit information index (0-6) 4 Public registry coverage (% of adults) 57.2 Private bureau coverage (% of adults) 0.0 Protecting Investors Extent of disclosure index (0-10) 8 Extent of director liability index (0-10) 6 Ease of shareholder suits index (0-10) 7 Strength of investor protection index (0-10) 7.0 Paying Taxes Payments (number per year) 11 Time (hours per year) 156 Profit tax (%) 4.8 Labor tax and contributions (%) 50.4 Other taxes (%) 1.8 Total tax rate (% profit) 57.0 Trading Across Borders Documents to export (number) 4 Time to export (days) 8 Cost to export (US$ per container) 1619 Documents to import (number) 5 Time to import (days) 9 Cost to import (US$ per container) 1600 3 Enforcing Contracts Procedures (number) 26 Time (days) 505 Cost (% of claim) 16.6 Closing a Business Recovery rate (cents on the dollar) 87.6 Time (years) 0.9 Cost (% of estate) 4 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 0.14 0.12 0.10 Doing business has 0.08 become easier (DB 0.06 change score) 0.04 0.02 0.00 Doing business has -0.02 become more difficult or more -0.04 France Belgium Switzerland Netherlands Germany Italy costly 6 1. Benchmarking Starting a Business Regulations: Belgium is ranked 31 overall for Starting a Business. Ranking of Belgium in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Belgium 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 Belgium 3 4 5.4 19.6 Comparator Economies France 5 7 0.9 0.0 Germany 9 15 4.8 0.0 Italy 6 6 18.5 10.1 Netherlands 6 8 5.7 52.4 Switzerland 6 20 2.1 27.2 * 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 Belgium Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 30 31 Procedures (number) 3 3 3 3 Time (days) 4 4 4 4 Cost (% of income per capita) 5.3 5.2 5.3 5.4 Min. capital (% of income per capita) 20.1 19.9 19.4 19.6 3. The following graphs illustrate the Starting a Business sub indicators in Belgium over the past 4 years: 9 Starting a Business Summary - Belgium This table summarizes the procedures and costs associated with setting up a business in Belgium. STANDARDIZED COMPANY Legal Form: Société privée à responsabilité limité/besloten vennootschap met beperkte aansprakelijkheid (SPRL/BVBA) City: Brussels Registration Requirements: No: Procedure Time to complete Cost to complete 1 Deposit at least 20% of the initial capital with a Belgian credit 1 no charge institution and obtain a standard certification confirming that the amount is held in a blocked "capital" account 2 Deposit a financial plan with the notary, sign the deed of incorporation 1 EUR 1,576 and the by-laws in the presence of a notary, who authenticates the documents and registers the deed of incorporation 3 Register with the Register of Legal Entities, VAT, and social security 2 EUR 125 at a centralized company docket (guichet-entreprises / ondernemingsloket) and obtain a company number 10 Starting a Business Details - Belgium Procedure 1 Deposit at least 20% of the initial capital with a Belgian credit institution and obtain a standard certification confirming that the amount is held in a blocked "capital" account Time to complete: 1 Cost to complete: no charge Comment: The full amount of capital must be fully and unconditionally subscribed, but it does not have to be immediately paid in unless the capital contribution is fully in kind. However, by law, a fifth of the total capital (no less than EUR 6,200) must be paid in. For those private limited liability companies incorporated by only one shareholder, the amount of the capital to be paid in was increased to EUR 12,400 (as of August 2, 2004). Procedure 2 Deposit a financial plan with the notary, sign the deed of incorporation and the by-laws in the presence of a notary, who authenticates the documents and registers the deed of incorporation Time to complete: 1 Cost to complete: EUR 1,576 Comment: The authentication act (which includes the initial version of the bylaws) must be drawn up in either French, Dutch or German, and must be signed by the parties involved. (The required content is outlined in Articles 69 and 226 of the Company Code.) The financial plan describes and justifies the amount of initial capital. The plan must show that the initial capital will cover company operations for at least the first 2 years. The founders sign the plan and deposit it in the notary public's custody before incorporation. Notaries have access to the online system through Procedure 3 Register with the Register of Legal Entities, VAT, and social security at a centralized company docket (guichet-entreprises / ondernemingsloket) and obtain a company number Time to complete: 2 Cost to complete: EUR 125 Comment: Since July 1, 2003, registration with the trade registries (one or several) and the social security authorities has been centralized. After the filing of the deed of incorporation, the clerk's office will automatically register the company with the Register of Legal Entities, which is part of the Crossroads Bank for Enterprises. The company will be given a single identification number, the enterprise number (numéro d'entreprise, or ondernemingsnummer), which can be activated only by using a recognized one-stop shop (guichets d'entreprises or ondernemingsloketten). Based on the number of employees, the projected annual turnover, and the shareholder class (private individuals), the company will qualify as a small- or medium-size enterprise (SME) according to the meaning of the Promotion of Independent Enterprise (General Provisions) Act of February 10, 1998. For a small or medium-size enterprise, activation of the company's registration with the Crossroads Bank for Enterprises (as referred to above) will be possible only once a certificate of competence has been obtained. The person in charge of daily company management 11 must evidence his knowledge of business management with documentary proof of education (diplomas, etc.) or practical experience. The company may request the VAT registration number either directly from the local VAT administration or through the centralized company docket, which can apply for the VAT registration number electronically (but in both cases, the VAT registration number will be granted by the VAT administration). As of January 1, 2005, the VAT registration number and the social security number were replaced by a single enterprise number that includes the previous trade registration number. The company must register with the social insurance fund for self-employed persons (caisse d'assurances sociales pour travailleurs indépendants," or "sociale verzekeringskas voor zelfstandigen") within 3 months of incorporation. It must pay into this fund an annual contribution of EUR 868 at most. In addition, if the company has employees in Belgium, it must register with the Belgian social security administration for salaried workers (ONSS/RSZ) and comply with all applicable Belgian employment regulations. The fee for registering a company is EUR 75 for the main business entity and EUR 75 for every additional business unit to be registered with the Crossroads Bank for Enterprises. VAT registration is (a) free of charge, if done directly through the competent local VAT office, and (b) EUR 50 (VAT excluded), if done through a one-stop shop (company docket). 12 13 1. Benchmarking Dealing with Construction Permits Regulations: Belgium is ranked 41 overall for Dealing with Construction Permits. Ranking of Belgium in Dealing with Construction Permits - Compared to good practice and selected economies: 14 The following table shows Dealing with Construction Permits data for Belgium 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 Belgium 14 169 64.1 Comparator Economies France 13 137 23.6 Germany 12 100 61.8 Italy 14 257 142.3 Netherlands 18 230 113.8 Switzerland 14 154 51.3 15 2. Historical data: Dealing with Construction Permits in Belgium Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 44 41 Procedures (number) 14 14 14 14 Time (days) 169 169 169 169 Cost (% of income per capita) 63.7 65.2 63.5 64.1 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Belgium over the past 4 years: 16 Dealing with Construction Permits in Belgium The table below summarizes the procedures, time, and costs to build a warehouse in Belgium. BUILDING A WAREHOUSE City: Brussels Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain clearance from the fire department 14 days EUR 50 2 Request building permit from the Municipality Office 75 days EUR 680 3 Municipality Office inspects to check posting of building permit (after 1 day no charge being informed of beginning of construction work) 4 Receive on-site inspection from tax administration 1 day no charge 5 Receive on-site inspection from fire department after construction 1 day no charge 6 Inform the Municipality Office of the end of the construction works 1 day no charge 7 * Receive inspection from sewage company on construction site 1 day EUR 50 8 * Request and obtain sewage connection to the public sewage company 75 days EUR 9,534 17 9 * Receive on-site inspection by the electricity company 1 day EUR 2,725 10 * Obtain electricity connection from the utility provider 29 days no charge 11 * Receive on-site inspection by the water company 1 day no charge 12 * Obtain connection to water supply 42 days EUR 7,068 13 * Receive on-site inspection by the telephone company 1 day no charge 14 * Obtain telecommunications connection 35 days EUR 202 * Takes place simultaneously with another procedure. 18 Dealing with Construction Permits Details - Belgium Procedure 1 Obtain clearance from the fire department Time to complete: 14 days Cost to complete: EUR 50 Agency: Fire Department Comment: Some municipalities request a fire department report on the owner's behalf. Procedure 2 Request building permit from the Municipality Office Time to complete: 75 days Cost to complete: EUR 680 Agency: Municipality Comment: The building permit request must be filed with the municipality along with drawings. In Brussels, an environmental impact report is not required for such warehouse construction. Moreover, the building permit expires in 2 years from issuance if construction has not started within that period. However, Buildco may also request an environmental permit from the same municipality if the warehouse is used for storing more than 500 tons (551 short tons) of paper. This additional procedure must be completed in 60 days. This permit is normally valid for 15 years from the date of the start of operations. Procedure 3 Municipality Office inspects to check posting of building permit (after being informed of beginning of construction work) Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: Upon being informed about the start of construction, the municipality checks whether the building permit is posted. A subsequent inspection may take place during construction. If the building permit is not posted, the municipality can request a halt to construction. Procedure 4 Receive on-site inspection from tax administration Time to complete: 1 day Cost to complete: no charge Agency: Tax Administration Comment: Upon completion of construction, the tax administration inspects the site. Procedure 5 Receive on-site inspection from fire department after construction Time to complete: 1 day 19 Cost to complete: no charge Agency: Municipality Comment: Procedure 6 Inform the Municipality Office of the end of the construction works Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: Procedure 7 Receive inspection from sewage company on construction site Time to complete: 1 day Cost to complete: EUR 50 Comment: The site inspection occurs in about a week from the request (EUR 50 per site visit). Procedure 8 Request and obtain sewage connection to the public sewage company Time to complete: 75 days Cost to complete: EUR 9,534 Comment: The EUR 9,534 quoted to request and obtain sewage connection is for a standard connection of high-density polyethylene, 200 millimeter (7.8 inch) by 3 meters deep. The price has been indexed since 2004. Procedure 9 Receive on-site inspection by the electricity company Time to complete: 1 day Cost to complete: EUR 2,725 Agency: Electrabel Comment: The electricity company inspects the construction about a week later, and it connects the electricity about 3 weeks later. Thus, it takes about 4 weeks (30 days) to obtain electrical service. Procedure 10 Obtain electricity connection from the utility provider Time to complete: 29 days Cost to complete: no charge Agency: Electrabel 20 Comment: BuildCo digs a trench, wire the building, and install the housing for the meters. The local electricity distribution company then carries out the connection to the street and supplies and installs the electricity meters. The total cost amounts to about EUR 1,500 to EUR 3,500, according to project specifications. Note that the connection is a maximum of 25 meters from the supply line. The price has been indexed since 2004. Procedure 11 Receive on-site inspection by the water company Time to complete: 1 day Cost to complete: no charge Comment: Procedure 12 Obtain connection to water supply Time to complete: 42 days Cost to complete: EUR 7,068 Comment: The EUR7,068 quoted reflects the following standard fire department requirements, based on project specifications: (a) reels with central overhead water supply inside the building; (b) a water main for mural hydrants; (c) an external overhead fire hydrant near the building; and (d) a sprinkler system connected to the water supply. In addition, the cost depends on the type of gate and the diameter of the main pipe. A 3- to 4-inch pipe is required. The price has been indexed since 2004. Procedure 13 Receive on-site inspection by the telephone company Time to complete: 1 day Cost to complete: no charge Agency: Belgacom Comment: Procedure 14 Obtain telecommunications connection Time to complete: 35 days Cost to complete: EUR 202 Agency: Belgacom Comment: The price for a regular telephone line does not include any calling plan. The delivery of telecommunication service has deteriorated over the past 2 years. Whereas in the past, a telephone connection could be obtained in only a few days, it now takes up to 2 months. 21 22 1. Benchmarking Registering Property Regulations: Belgium is ranked 177 overall for Registering Property. Ranking of Belgium in Registering Property - Compared to good practice and selected economies: 23 The following table shows Registering Property data for Belgium 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 Belgium 8 79 12.7 Comparator Economies France 8 59 6.1 Germany 5 40 5.1 Italy 8 27 4.5 Netherlands 5 7 6.1 Switzerland 4 16 0.4 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 24 2. Historical data: Registering Property in Belgium Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 169 177 Procedures (number) 7 7 7 8 Time (days) 132 132 79 79 Cost (% of property value) 12.7 12.7 12.7 12.7 3. The following graphs illustrate the Registering Property sub indicators in Belgium over the past 4 years: 25 Registering Property in Belgium This topic examines the steps, time, and cost involved in registering property in Belgium. STANDARDIZED PROPERTY Property Value: 1,583,622.11 City: Brussels Registration Requirements: No: Procedure Time to complete Cost to complete 1 Parties give initial sale agreement to notary 1 day included in procedure 7 2 * Notary obtains excerpt and plan from land register 10 days (simultaneous EUR 20 (EUR 3.50 per ("kadaster / cadastre") indicating the exact land with procedures 3, 4, request + EUR 5.5 excerpt register references and 5) of the cadastral matrix (212 AM) + EUR 11 excerpt of the cadastral plan) (included in proc 7) 3 * Notary obtains excerpt from the mortgage register to 15-30 days EUR 50 (excerpt, included verify whether certain third party rights were granted (simultaneous with in proc 7) + EUR 35 (copies over the property and copies of the transfer deeds procedures 2, 4, and 5) of deeds, included in 7) over a 30-year period 4 * Notary obtains zoning certificates from the 45 days (simultaneous EUR 120 (included in proc municipality with procedures 2, 3, 7) and 5) 5 * Notary obtains tax certificates relating to the seller's 15 days (simultaneous EUR 60 (included in proc tax position from tax administration (Inland with procedures 2, 3, 7) Revenue) and 4) 26 6 * Obtain a clean-soil certificate IBGE/BIM 20 days no cost 7 The notary draws up the deed based on the agreement 1-2 days included in proc 7 between the parties 8 The notary applies for registration with the Mortgage 1 month 12.5% of transaction price office and a certified copy of the deed is sent to the (registration fee) + EUR buyer 3,500 (notary fees and costs) * Takes place simultaneously with another procedure. 27 Registering Property Details - Belgium Procedure 1 Parties give initial sale agreement to notary Time to complete: 1 day Cost to complete: included in procedure 7 Comment: The transfer of ownership can be done by an agreement between seller and buyer. However, in order to validate the transfer of ownership vis-à-vis third parties, the initial agreement needs to be notarized and registered with the mortgage register by a notary. The notary will draw up a deed and obtain all necessary documentation (see following procedures). The notary also checks, for companies, the copy of the publication of the names of the directors in the Belgian Official Gazette. The documentation shall include: - initial sale agreement - proper proof of identification, or, in the case of a company, the memorandum of association/articles of incorporation/by-laws Procedure 2 Notary obtains excerpt and plan from land register ("kadaster / cadastre") indicating the exact land register references Time to complete: 10 days (simultaneous with procedures 3, 4, and 5) Cost to complete: EUR 20 (EUR 3.50 per request + EUR 5.5 excerpt of the cadastral matrix (212 AM) + EUR 11 excerpt of the cadastral plan) (included in proc 7) Agency: Land register ("kadaster / cadastre") Comment: Notary obtains excerpt and plan from land register ("kadaster / cadastre") indicating the exact land register references, or (i) the detailed address/location of the property or, if the address/location is not available, (ii) the identity and address of the (assumed) owner. The request for land register references can be submitted online. However, in order to obtain the plans, a request must be submitted in writing. The notary can obtain the excerpt from the land register ("Matrice cadastrale") directly from the land register's database by electronic means. The official document ("Extrait cadastral") has to be requested by e-mail but is sent to the notary via regular mail. The "matrice cadastrale" provides basically the same information as the "extrait cadastral". Procedure 3 Notary obtains excerpt from the mortgage register to verify whether certain third party rights were granted over the property and copies of the transfer deeds over a 30-year period Time to complete: 15-30 days (simultaneous with procedures 2, 4, and 5) Cost to complete: EUR 50 (excerpt, included in proc 7) + EUR 35 (copies of deeds, included in 7) Agency: Mortgage Office (Mortgage register) Comment: The notary obtains an excerpt from the mortgage register in order to verify whether certain third party rights were granted over the property, e.g. through mortgages, rights to construct ("opstalrecht / droit de superficie"). A 30-year title search (if the acquisition is financed through a mortgage backed facility agreement) will be included in the documents. The notary obtains copies of the transfer deeds over a 30-year period at the same place. The 28 mortgage registry provides (i) "full transcription" of the title or of the judgment attributing the title: the date of acquisition of the full ownership or other right over the property (such as usufruct -right to use the property-, superficies-right to construct), the terms and conditions of the acquisition including the purchase price, the existence of lease contracts exceeding 9 years and information on the rights of third parties such as judgments, servitudes/easements and seizures affecting the property in question for the past 30 years and (ii) by "inscription" whether the right over the property is encumbered by a mortgage or a legal lien (beneficiary, amount, costs, term). Procedure 4 Notary obtains zoning certificates from the municipality Time to complete: 45 days (simultaneous with procedures 2, 3, and 5) Cost to complete: EUR 120 (included in proc 7) Agency: Municipality Comment: The notary obtains zoning certificates Procedure 5 Notary obtains tax certificates relating to the seller's tax position from tax administration (Inland Revenue) Time to complete: 15 days (simultaneous with procedures 2, 3, and 4) Cost to complete: EUR 60 (included in proc 7) Agency: Inland Revenue Comment: The notary obtains tax certificates relating to the seller's tax position from the Inland Revenue, the VAT authorities and the municipal tax collector relating to the seller's tax position. A request for this information can be submitted online, but the response will arrive 15 days later. If there is no answer within 12 working days, the notary can process the deed anyway, therefore assuming there are no tax issues. The request to obtain a tax certificate from the Flemish Region concerning the annual real estate tax ("Précompte Immobilier") can be done online too, as from October 2009. The only tax information which still needs to be asked by registered letter is the municipal or provincial tax information. Since April 2007, the request could be submitted online but the response would still arrive within 15 days. For individuals, since November 2009, there is an automatic response from administrations VAT and DT if the concerned citizen fulfills certain conditions (unknown in the VAT), unknown to the CBE (Crossroads Bank for Enterprises), he's a natural person, he's a resident and he has no open-debt the day of the information. Since April 2007 notaries have to verify at the same time the seller's social security position. The notary has to verify with every social security fund (there are +/- 15 of them). However, this process is done electronically, simultaneously with the verification of the tax position. The procedure is integrated in the existing procedure related to the tax position of the seller. The time needed for this verification is 15 days as well. It takes place fully electronically, just as the obtention of the tax certificates. Procedure 6 Obtain a clean-soil certificate IBGE/BIM Time to complete: 20 days 29 Cost to complete: no cost Agency: Brussels Institute for Environmental Management (IBGE/BIM) Comment: Brussels legislation on soil clean-up has entered into force on 1 January 2010 (Ordonnance du 5 mars 2009 relative à la gestion et l'assainissement des sols pollués) states that a soil certificate is now required for every transfer of land. A soil survey also needs to be done for land where a risk activity has been performed. The time limit is 20 days from reception of the (valid) request to obtain a soil certificate. As of May 2010, the soil certificate has been delivered free of charge but the cost will be settled in the implementing measures ("uitvoeringsbesluit/arrêté d'exécution") of the new Act on polluted soils which still has to be adopted and published. With this new Act, the seller of an immoveable good has to ask the Brussels environmental authorities (BIM) for a soil certificate (attestation du sol/bodemattest) which he has to transmit to the buyer before the conclusion of the private sale agreement (compromis de vente). For some type of lands, an expert must examine the land to check whether the soil is polluted ("reconnnaissance du sol /verkennend bodemonderzoek"). On basis of the results of this survey, BIM decides whether the transfer can take place without any further measure or whether the condition of the soil requires additional measures to be taken (clean-up,...). If additional measures have to be taken, the transfer can nevertheless take place before the clean-up if some conditions are fulfilled. This new Act is a transpostion of European legislation (article 17§2 of the Ordinance of 5 March 2009). Procedure 7 The notary draws up the deed based on the agreement between the parties Time to complete: 1-2 days Cost to complete: included in proc 7 Comment: On the basis of the agreement between the parties, the notary will draw up a deed after obtaining the required documents. Normally, the seller and buying company enter into a private agreement ("de compromisovereenkomst / le compromis") in which the main contractual provisions (price, subject matter, obligations of both parties, etc) are listed. Subject to fulfillment of certain conditions precedent, if any, such agreement will transfer title to the buyer. Vis-à-vis third parties, title will pass upon registration of the deed with the mortgage register ("hypotheekkantoor / registre des hypothèques" ) referred to in the following procedure. Common conditions precedent are: waiver of pre-emption rights over the property and obtaining of consents from local authorities. Transfer of title between parties can be made subject to the registration of the deed with the mortgage registry. The documentation shall include*: Before execution of the deed, the notary will normally have obtained the following documents: Excerpt and plan from the land register ("kadaster / cadastre") indicating the exact land register references (obtained in Procedure 2) Copies of all transfer deed over a 30-year period (obtained in Procedure 3) Zoning certificates; (obtained in Procedure 4) Tax certificates from the Inland Revenue, the VAT authorities and the municipal tax collector relating to the seller's tax position (the same certificates will be requested with regard to the buyer company if it finances the acquisition through a mortgage backed facility agreement); (obtained in Procedure 5) Obtaining waivers of pre-emption rights and consents from local authorities, if any; Excerpt from the mortgage register in order to verify whether certain third party rights were granted over the property, e.g. mortgages, rights to construct ("opstalrecht / droit de superficie"), etc; (obtained in Procedure 3) and 30 A 30-year title search (if the acquisition is financed through a mortgage backed facility agreement) (obtained in Procedure 3). The notary's fees are determined by law (Arrete Royal) and the payment of the registration duties and notary fees takes place after the signature of the deed. *Note (prior to the sales agreement): In the Flemish region: Under the Flemish Soil Cleanup Statute, a transfer of land may only be completed if the transfer deed is accompanied by a soil certificate. A soil certificate is an administrative document that summarizes all the information that OVAM (the Flemish waste agency) has about the condition of the soil on a certain parcel of land. In principle, the transferor has the duty to apply to OVAM for this document. OVAM issues the document within one month from receipt of the application. For this purpose, 'transfer' includes the transfer of rights in real estate and some corporate restructuring transactions (eg mergers and de-mergers). Moreover, land on which potentially soil-polluting activities currently take place or have taken place in the past may only be transferred if a preliminary soil survey was carried out in advance of the transfer. On the basis of the results of this survey, OVAM decides whether the transfer can take place without any further measures or whether the condition of the soil requires additional measures to be taken. In the latter case, the first additional measure is to undertake a descriptive soil survey, which serves to determine the nature and extent of the pollution. If the descriptive soil survey establishes pollution that requires cleanup, the transfer of the land cannot take place until parties submit a clean-up proposal, undertake to conduct the required cleanup and deposit financial security to cover the clean-up costs. A soil survey has to be undertaken before any transfer of land in case soil-polluting activities have taken place or if this land is listed in the database of polluted soils. If necessary, measures must be taken to clean up the soil. The new Brussels legislation on soil clean-up will oblige a seller of real estate on which a risk activity has been performed to draft a soil survey and, if clean-up is deemed necessary by the Brussels environmental authorities (BIM), to perform clean-up measures prior to transferring the polluted site. Contrary to the Flemish Region (where property rights may be transferred as soon as suffcient financial guarantees are in place), the Brussels statute on soil clean-up does not allow to proceed with the transfer before the actual clean-up works have been completed. The pre-emption rights exist in some predetermined areas of the Flemish and Brussels Region. The seller or the notary notifies the competent administration (GRONDREGIE / REGIE FONCIERE ) as soon as he receives the "compromis". These administrations then have 2 months to decide whether to exercise their pre-emption right. Some pre-emption rights also exist in the Walloon Region. The areas in Brussels where needed to obtain a waiver for preemption are specified in the website: http://www.bruxelles.irisnet.be/fr/citoyens/home/logement/acheter_vendre/perimetre_de_pree mption.shtml Procedure 8 The notary applies for registration with the Mortgage office and a certified copy of the deed is sent to the buyer Time to complete: 1 month Cost to complete: 12.5% of transaction price (registration fee) + EUR 3,500 (notary fees and costs) Agency: Mortgage Office (Mortgage register) Comment: The notary is required to present the original deed itself to his local Registration Office (Tax office) within 15 days after the date of execution for payment of the stamp duties. The notary is also required to present an authentic copy of the deed to the Mortgage office for transcription within 1 month from the date of execution (this guarantees publicity vis-à-vis third parties). The mortgage register will verify all documentation and complete the transfer in its records 31 and send a certified copy of the deed. In the Flemish Region (does not include Brussels), the registration fee (tax) is 10.0%. For so-called Brownfields (severely contaminated fields) exemptions of the registration fee (0.0 %) have been introduced in Flanders. For new buildings (not older than ca. 2 years) the value of the buildings is taxed under VAT regime (21% but deductible), rather than under a registration fee (12.5% or 10%). 32 33 1. Benchmarking Getting Credit Regulations: Belgium is ranked 46 overall for Getting Credit. Ranking of Belgium in Getting Credit - Compared to good practice and selected economies: 34 The following table shows Getting Credit data for Belgium 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 Belgium 7 4 57.2 0.0 Comparator Economies France 7 4 33.3 0.0 Germany 7 6 1.0 98.4 Italy 3 5 16.6 80.5 Netherlands 6 5 0.0 100.0 Switzerland 8 5 0.0 22.3 * 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. 35 2. Historical data: Getting Credit in Belgium Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 44 46 Strength of legal rights index (0-10) 7 7 7 7 Depth of credit information index (0-6) 4 4 4 4 Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0 Public registry coverage (% of adults) 57.2 57.7 56.5 57.2 3. The following graphs illustrate the Getting Credit sub indicators in Belgium over the past 4 years: 36 Getting Credit in Belgium The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Belgium. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 4 bureau registry Are data on both firms and individuals distributed? No Yes 1 Are both positive and negative data distributed? No No 0 Does the registry distribute credit information from retailers, trade No Yes 1 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 Yes 1 Is it guaranteed by law that borrowers can inspect their data in the No Yes 1 largest credit registry? Coverage 0.0 57.2 Number of individuals 0 4,899,920 Number of firms 0 227,945 37 Strength of legal rights index (0-10) 7 Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes 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 Yes 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 Yes 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? Yes During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No Does the law authorize parties to agree on out of court enforcement? Yes 38 39 1. Benchmarking Protecting Investors Regulations: Belgium is ranked 16 overall for Protecting Investors. Ranking of Belgium in Protecting Investors - Compared to good practice and selected economies: 40 The following table shows Protecting Investors data for Belgium compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Belgium 7.0 Comparator Economies France 5.3 Germany 5.0 Italy 5.7 Netherlands 4.7 Switzerland 3.0 41 2. Historical data: Protecting Investors in Belgium Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 16 16 Strength of investor protection index (0-10) 7.0 7.0 7.0 7.0 3. The following graph illustrates the Protecting Investors index in Belgium compared to best practice and selected Economies: 9.7 7.0 5.7 5.3 5.0 4.7 3.0 y ce al m y nd d ds an It an iu n an a la lg Fr m al er rl Be Ze er he itz G et ew Sw N N Note: The higher the score, the greater the investor protection. 42 Protecting Investors in Belgium The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Belgium. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 8 2 What corporate body provides legally sufficient approval for the transaction? 1 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 2 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 2 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 1 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 6 1 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? 1 Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 1 Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 43 1 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) 7 4 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 0 Whether the plaintiff can directly question the defendant and witnesses during trial? 1 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 1 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 1 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) 7.0 44 45 1. Benchmarking Paying Taxes Regulations: Belgium is ranked 70 overall for Paying Taxes. Ranking of Belgium in Paying Taxes - Compared to good practice and selected economies: 46 The following table shows Paying Taxes data for Belgium 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 Belgium 11 156 57.0 Comparator Economies France 7 132 65.8 Germany 16 215 48.2 Italy 15 285 68.6 Netherlands 9 134 40.5 Switzerland 19 63 30.1 * The following economies are also good practice economies for : Payments (number per year): Qatar 47 2. Historical data: Paying Taxes in Belgium Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 69 70 Total tax rate (% profit) 58.0 58.1 57.3 57.0 Payments (number per year) 11 11 11 11 Time (hours per year) 156 156 156 156 3. The following graphs illustrate the Paying Taxes sub indicators in Belgium over the past 4 years: 48 Paying Taxes in Belgium The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Belgium, 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 Value added tax (VAT) 1 online 96 21.0% value added filing Employer holiday social 1 online varies 108% of security contributions filing gross salaries Stamp duty 1 EUR 7.5 per fixed fee page Provincial tax 1 EUR 750 fixed fee 0.00 Municipal tax 1 EUR 750 fixed fee 0.00 Regional tax 1 EUR 600 fixed fee 0.00 Transport tax 1 EUR 1,500 fixed fee 0.10 Tax on interest 0 15.0% interest 0.40 income Property tax 1 EUR 9,000 fixed fee 0.50 Fuel tax 1 1.10 49 Corporate income tax 1 online 20 34.0% taxable 4.80 filing profits Social security 1 online 40 varies gross salaries 50.40 contributions filing or 108% of gross salaries Totals 11 156 57.0 50 51 1. Benchmarking Trading Across Borders Regulations: Belgium is ranked 44 overall for Trading Across Borders. Ranking of Belgium in Trading Across Borders - Compared to good practice and selected economies: 52 The following table shows Trading Across Borders data for Belgium 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 Belgium 4 8 1619 5 9 1600 Comparator Economies France 2 9 1078 2 11 1248 Germany 4 7 872 5 7 937 Italy 4 20 1245 4 18 1245 Netherlands 4 6 895 5 6 942 Switzerland 4 8 1537 5 9 1540 * The following economies are also good practice economies for : Time to export (days): Estonia 53 2. Historical data: Trading Across Borders in Belgium Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 45 44 Cost to export (US$ per container) 1600 1619 1619 1619 Cost to import (US$ per container) 1600 1600 1600 1600 Documents to export (number) 4 4 4 4 Documents to import (number) 5 5 5 5 Time to export (days) 8 8 8 8 Time to import (days) 9 9 9 9 3. The following graphs illustrate the Trading Across Borders sub indicators in Belgium over the past 4 years: 54 55 Trading Across Borders in Belgium These tables list the procedures necessary to import and export a standardized cargo of goods in Belgium. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 3 369 Customs clearance and technical control 1 250 Ports and terminal handling 1 350 Inland transportation and handling 3 650 Totals 8 1619 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 5 350 Customs clearance and technical control 2 250 Ports and terminal handling 1 350 Inland transportation and handling 1 650 Totals 9 1600 56 Documents for Export and Import Export Bill of lading Commercial invoice Customs export declaration Packing list Import Bill of lading Certificate of origin Commercial invoice Customs import declaration Packing list 57 58 1. Benchmarking Enforcing Contracts Regulations: Belgium is ranked 21 overall for Enforcing Contracts. Ranking of Belgium in Enforcing Contracts - Compared to good practice and selected economies: 59 The following table shows Enforcing Contracts data for Belgium 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 Belgium 26 505 16.6 Comparator Economies France 29 331 17.4 Germany 30 394 14.4 Italy 41 1210 29.9 Netherlands 26 514 24.4 Switzerland 31 417 24.0 60 2. Historical data: Enforcing Contracts in Belgium Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 21 21 Procedures (number) 28 26 26 26 Time (days) 505 505 505 505 Cost (% of claim) 16.6 16.6 16.6 16.6 3. The following graphs illustrate the Enforcing Contracts sub indicators in Belgium over the past 4 years: 61 Enforcing Contracts in Belgium This topic looks at the efficiency of contract enforcement in Belgium. Nature of Procedure (2010) Indicator Procedures (number) 26 Time (days) 505 Filing and service 15.0 Trial and judgment 400.0 Enforcement of judgment 90.0 Cost (% of claim)* 16.60 Attorney cost (% of claim) 9.7 Court cost (% of claim) 5.5 Enforcement Cost (% of claim) 1.4 62 Court information: Brussels Commercial Court ("Rechtbank van Koophandel/Tribunal de Commerce") * Claim assumed to be equivalent to 200% of income per capita. 63 64 1. Benchmarking Closing Business Regulations: Belgium is ranked 8 overall for Closing a Business. Ranking of Belgium in Closing Business - Compared to good practice and selected economies: 65 The following table shows Closing Business data for Belgium 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 Belgium 87.6 0.9 4 Comparator Economies France 45.2 1.9 9 Germany 53.1 1.2 8 Italy 58.0 1.8 22 Netherlands 81.9 1.1 4 Switzerland 47.5 3.0 4 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 66 2. Historical data: Closing Business in Belgium Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 8 8 Time (years) 0.9 0.9 0.9 0.9 Cost (% of estate) 4 4 4 4 Recovery rate (cents on the dollar) 85.5 86.3 86.3 87.6 3. The following graphs illustrate the Closing Business sub indicators in Belgium over the past 4 years: 67 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. 68 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Belgium Belgium's capital city, Brussels, made it more difficult to transfer property by requiring a clean-soil certificate. Belgium introduced a new law that will promote and facilitate the survival of viable businesses experiencing financial difficulties. 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. Germany Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial registry and eliminating the need to publish an announcement in a newspaper. 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. Italy Italy made starting a business easier by enhancing an online registration system. 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. Netherlands The Netherlands reduced the frequency of filing and paying value added taxes from monthly to quarterly and allowed small entities to use their annual accounts as the basis for computing their corporate income tax. 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. 69 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. 70 71