58882 Mozambique © 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. 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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 Mozambique. 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 Mozambique is ranked 126 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Mozambique - Compared to global good practice economy as well as selected economies: Mozambique's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 126 Starting a Business 65 Dealing with Construction Permits 155 Registering Property 144 Getting Credit 128 Protecting Investors 44 Paying Taxes 101 Trading Across Borders 133 Enforcing Contracts 132 Closing a Business 129 2 Summary of Indicators - Mozambique Starting a Business Procedures (number) 9 Time (days) 13 Cost (% of income per capita) 13.9 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 17 Time (days) 381 Cost (% of income per capita) 530.3 Registering Property Procedures (number) 8 Time (days) 42 Cost (% of property value) 9.9 Getting Credit Strength of legal rights index (0-10) 2 Depth of credit information index (0-6) 4 Public registry coverage (% of adults) 2.2 Private bureau coverage (% of adults) 0.0 Protecting Investors Extent of disclosure index (0-10) 5 Extent of director liability index (0-10) 4 Ease of shareholder suits index (0-10) 9 Strength of investor protection index (0-10) 6.0 Paying Taxes Payments (number per year) 37 Time (hours per year) 230 Profit tax (%) 27.7 Labor tax and contributions (%) 4.5 Other taxes (%) 2.1 Total tax rate (% profit) 34.3 Trading Across Borders Documents to export (number) 7 Time to export (days) 23 Cost to export (US$ per container) 1100 Documents to import (number) 10 Time to import (days) 30 Cost to import (US$ per container) 1475 3 Enforcing Contracts Procedures (number) 30 Time (days) 730 Cost (% of claim) 142.5 Closing a Business Recovery rate (cents on the dollar) 17.7 Time (years) 5.0 Cost (% of estate) 9 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy's regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy's business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions. This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.24 0.20 Doing business has 0.16 become easier (DB change 0.12 score) 0.08 0.04 0.00 Mozambique Mauritius Angola Botswana Tanzania South Africa 6 1. Benchmarking Starting a Business Regulations: Mozambique is ranked 65 overall for Starting a Business. Ranking of Mozambique in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Mozambique 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 Mozambique 9 13 13.9 0.0 Comparator Economies Angola 8 68 163.0 28.7 Botswana 10 61 2.2 0.0 Mauritius 5 6 3.8 0.0 South Africa 6 22 6.0 0.0 Tanzania 12 29 30.9 0.0 * 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 Mozambique Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 96 65 Procedures (number) 10 10 10 9 Time (days) 29 26 26 13 Cost (% of income per capita) 21.6 22.9 19.3 13.9 Min. capital (% of income per capita) 115.8 122.5 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Mozambique over the past 4 years: 9 Starting a Business Summary - Mozambique This table summarizes the procedures and costs associated with setting up a business in Mozambique. STANDARDIZED COMPANY Legal Form: Sociedade por Quotas (LDA) - Closely-Held Limited Liability Company City: Maputo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain certification of unique name (certidão de reserva de nome) at 1 MZN 77 the Conservatória do Registo das Entidades Legais (Legal Entities Registrar) 2 Open a provisional bank account and obtain a verification of deposit 1 no charge with a local bank 3 Register with the Legal Enities Registrar of Maputo (Conservatória do 5 MZN 1,475 Registo das Entidades Legais); request a commercial registry certificate; publish company statutes in the official gazette (Bolhetim da República) 4 Register for taxes and obtain NUIT from Repartição de Finanças 1 no charge 5 Apply for a simplified operational license from the Presidente of 1 no charge Conselho Municipality 6 Declare the beginning of activity at the tax department (Repartição de 1 no charge Finanças) 10 7 * Declare the beginning of activity and register job candidates at the 1 MZN 50 provincial employment center 8 * Register workers with the social security system 1 no charge 9 * Subscribe a workmen's compensation insurance coverage 1 no charge * Takes place simultaneously with another procedure. 11 Starting a Business Details - Mozambique Procedure 1 Obtain certification of unique name (certidão de reserva de nome) at the Conservatória do Registo das Entidades Legais (Legal Entities Registrar) Time to complete: 1 Cost to complete: MZN 77 Comment: The Registrar Office of Maputo was computerized and name verification can be done in a day. Procedure 2 Open a provisional bank account and obtain a verification of deposit with a local bank Time to complete: 1 Cost to complete: no charge Comment: Before having the articles of association notarized, limited liability companies (sociedades por quotas) must open a bank account to obatin a bank statement. The bank account must be opened in the company name that was approved by the Legal Entities Registrar, which issued the certification of the unique name. Procedure 3 Register with the Legal Enities Registrar of Maputo (Conservatória do Registo das Entidades Legais); request a commercial registry certificate; publish company statutes in the official gazette (Bolhetim da República) Time to complete: 5 Cost to complete: MZN 1,475 Comment: To register a company with the Commercial Registrar Office of Maputo, the following costs apply: - A nominal fixed fee is charged for company matriculation. - The registration fees vary according to share capital: amounts up to MZN 5 million are taxable at a 2% rate, and amounts over MZN 5 million are taxable at a 1% rate. - A variable fee is payable for administrative costs up to a maximum of MZN 1,000. This registration is final because the Commercial Registrar coordinates the publication of the company statutes in the Official Gazette. The fixed fee for online publication is MZN 475 per year for a 25-line page. Publication can take 3 days to 1 week. Procedure 4 Register for taxes and obtain NUIT from Repartição de Finanças Time to complete: 1 Cost to complete: no charge Comment: Procedure 5 Apply for a simplified operational license from the Presidente of Conselho Municipality Time to complete: 1 Cost to complete: no charge 12 Comment: Decree nº 2/2008 of, 12 March 2008 which approves the Simplified Licensing came into force on 27 March 2008. The activities within the scope of this operational license are exempted from environmental impact study. The licensing procedure is quite simple and easy. The steps to be taken are as follows: i) Filling in a form available at the license One Stop Shop (Balcão Único); ii) Attach notarized copies documents proving incorporation and registration of the company (public deed, if there is any, Official Gazette where the articles of association of the company were published, commercial registration certificate) and notarized copy of the ID documents of the company quotaholders/shereholders; and iii) Copy of the proof of issuance of the company's NUIT by the Ministry of Finance (M/06). The space does not require a prior inspection, by the health department; the fire department, local authority and representative of the licensing entity. With this new system, you simply fill in a form, submit it, it gets reviewed if all is correct, the request the payment and within a few days (approx. 4) the license is issued. There is no cost attached to this licensing. This license has to be renewed every five years. The activities that can benefit from this Simplified Licensing regime includes some fields in agriculture, general commercial activities, service provision, construction, sport, industry, transport and communication, tourism. Procedure 6 Declare the beginning of activity at the tax department (Repartição de Finanças) Time to complete: 1 Cost to complete: no charge Comment: After the tax reform, a unique income tax system has replaced the old. Form "Modelo M/01" must be filed to register, under a different taxpayer number, for income tax withholding (imposto sobre o rendimento do trabalho), secção A, and Form 44 is used to register for complementary tax.Since 2002, there is no Imposto sobre Rendimento do Trabalho Secção A. This tax was replace by Corporate Income Tax ("Imposto sobre o Rendimento das Pessoas Colectivas") and Personal Income Tax ("Imposto sobre o Rendimegto das Pessoas Singulares"). For VAT and corporate income tax, the notification of the beginning of business activity must be submitted 15 days before commencement. This notification must be submitted to the tax department of the appropriate fiscal district the form Modelo 6. In addition, this process requires the filing of Modelo 5 (in triplicate) and an authenticated copy of the operating license. The company is assigned unique taxpayer number (numero unique de identificação tributária) in 15 days, and an individual file for all taxes is opened. Procedure 7 Declare the beginning of activity and register job candidates at the provincial employment center Time to complete: 1 Cost to complete: MZN 50 Comment: To register employees at the provincial employment center, the employer must request work cards within 30 days of the start of employment agreements, submit a schedule of work hours, and declare the employment of national workers in 30 days of the start of their respective employment agreement. An employer with more than 10 employees must open a file (processo individual) and prepare four copies of a specific form for each worker, listing the name, position, skills, sex, date of birth, identity card number, date of entry, date of last promotion, wage or salary, and number of hours worked each month. These four copies are presented to the Employment Center, which after stamping them keeps three copies and returns one to the employer for public posting. This chart must be updated and approved annually by the Ministry of Labor. Together with this form, the employer must submit the company's annual holiday's plan (plano de férias) and each employee's work card (MZN 5,000 each), which includes identity information and the employee's signature. Upon stamping, the Employment Center returns them to the company, which distributes them to 13 each worker as an employee identification card. Procedure 8 Register workers with the social security system Time to complete: 1 Cost to complete: no charge Comment: The employer must register the company within 15 days of the start of business activity and register employees within 30 days of the start of their employment agreements. A special form (boletim de identificação de beneficiaries) must be filled out for each employee and submitted to the Instituto Nacional de Seguranca Social within 15 days of signing the labor contract, accompanied by an authenticated copy of that employee's identity card, an authenticated copy of the operational license, and the company's numero unique de identificação tributária (nuit). A special form (ficha da empresa) must be filed for each company. Procedure 9 Subscribe a workmen's compensation insurance coverage Time to complete: 1 Cost to complete: no charge Comment: 14 15 1. Benchmarking Dealing with Construction Permits Regulations: Mozambique is ranked 155 overall for Dealing with Construction Permits. Ranking of Mozambique in Dealing with Construction Permits - Compared to good practice and selected economies: 16 The following table shows Dealing with Construction Permits data for Mozambique 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 Mozambique 17 381 530.3 Comparator Economies Angola 12 328 694.3 Botswana 24 167 264.5 Mauritius 18 107 32.3 South Africa 17 174 23.1 Tanzania 22 328 2756.3 17 2. Historical data: Dealing with Construction Permits in Mozambique Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 159 155 Procedures (number) 17 17 17 17 Time (days) 361 381 381 381 Cost (% of income per capita) 705.0 747.9 632.0 530.3 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Mozambique over the past 4 years: 18 Dealing with Construction Permits in Mozambique The table below summarizes the procedures, time, and costs to build a warehouse in Mozambique. BUILDING A WAREHOUSE City: Maputo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Request and obtain the right to the use and enjoyment of the land 45 days MZN 300 2 * Request and obtain the topographic plan 120 days MZN 325 3 Request and obtain a building permit from Department of Construction 60 days MZN 6,503 and Urbanization 4 Receive inspection by the municipality - I 1 day no charge 5 Receive inspection by the municipality - II 1 day no charge 6 Request electricity connection approval from the National Directorate of 7 days no charge Energy 7 * Request power connection from Electricity of Mozambique 1 day MZN 6,837 8 * Receive inspection and obtain approval of electrical plan from the 1 day no charge electricity department 19 9 * Connect to electricity services of Electricity of Mozambique 53 days MZN 37,416 10 * Request water and sewage connection 1 day MZN 4,700 11 * Receive inspection and obtain approval of plumbing plan from the water 1 day no charge department 12 * Connect to water and sewage services 43 days no charge 13 * Request and obtain telephone connection 2 days MZN 2,580 14 Request final inspection 1 day no charge 15 Receive final inspection 1 day no charge 16 Request and obtain an occupancy permit 95 days MZN 2,000 17 Register the new building at the property registration agency 45 days MZN 410 * Takes place simultaneously with another procedure. 20 Dealing with Construction Permits Details - Mozambique Procedure 1 Request and obtain the right to the use and enjoyment of the land Time to complete: 45 days Cost to complete: MZN 300 Agency: Municipal Council of Maputo City ­ Department of Construction and Urbanization Comment: The company must obtain the right to the use and enjoyment of the land from the Municipal Council of Maputo City, Department of Construction and Urbanization (DCU), because all land is state owned. The priceto obtain the approval may vary depending on the location of the plot. BuildCo's land plot is obtained properly and does not require preliminary consultation with District's administrator. It also does not need the location sketch assuming that was obtained before. Procedures 1 and 2 are done simultaneously. It takes at least 120 days to obtain a preliminary document that allows the builder to request the building permit. The right to use of the land must be requested before beginning construction. Even if the company had this title in the past, it would still need to make sure that the stated use of the land in the title is compatible with the new use. Procedure 2 Request and obtain the topographic plan Time to complete: 120 days Cost to complete: MZN 325 Agency: Municipal Council of Maputo City ­ Department of Construction and Urbanization Comment: The company should obtain the topographic plan from the Municipal Council of Maputo City, Department of Construction and Urbanization (DCU). Additional documents to be submitted to the DCU: a) Plan; b) Architectural project of the building and c) Term of Responsibility of the author of the architectural project. Fee is MZN 225:MZN 150 is paid to the DCU and MZN 75 is paid to the Water Sanitation Department. However, in practice companies end up paying MZN 325. Procedure 3 Request and obtain a building permit from Department of Construction and Urbanization Time to complete: 60 days Cost to complete: MZN 6,503 Agency: Municipal Council of Maputo City ­ Department of Construction and Urbanization Comment: The company should submit an application to the municipal council with the full detailed plan attached. The cost is MZN 5 to MZN 10 per square meter. In the present case, the total cost would be MZN 5 x 1,300.6 = MZN 6,503. There is a time limit of a month, and silence is construed to mean consent. In practice, investors do not make use of the "silence-is-consent" rule because they are afraid their investment would be demolished if they start construction without a license. In 2008 the Municipality of Maputo started an internal reorganization process which caused a backlog and increased the time from 45 to 90 days. The Building Permit may be used to apply for water, light, sewage, and telephone connections. The validity of the building permit has been extended to 2 years instead of 1 year. 21 Procedure 4 Receive inspection by the municipality - I Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: Inspections may during construction. According to law, two to three inspections should be carried out by the municipality and by the labor inspectorate. However, in practice, these inspections rarely occur. When they are undertaken, these inspections are announced by the inspector, who informs BuildCo of the inspection date. Normally, an inspection is carried out when the concrete is poured. BuildCo must keep a construction book, where all the important information about the construction is entered. The inspectors use this book to check the actual state of the construction, as well as its conformity with the submitted project. Procedure 5 Receive inspection by the municipality - II Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: Procedure 6 Request electricity connection approval from the National Directorate of Energy Time to complete: 7 days Cost to complete: no charge Agency: National Directorate of Energy Comment: The company must obtain approval from the National Directorate of Energy for medium- and high-voltage connections before contacting Electricity of Mozambique. Procedure 7 Request power connection from Electricity of Mozambique Time to complete: 1 day Cost to complete: MZN 6,837 Agency: Electricidade de Mozambique (EDM) Comment: The connection is completed through Electricity of Mozambique, which first conducts an inspection to check the availability of resources and then makes the actual connection. The company is charged for the cable, which can cost around USD 40 per meter. Procedure 8 Receive inspection and obtain approval of electrical plan from the electricity department Time to complete: 1 day Cost to complete: no charge 22 Agency: Electricity Department Comment: The company must provide the site plan. The typical waiting time for the inspection is about 4 weeks. Procedure 9 Connect to electricity services of Electricity of Mozambique Time to complete: 53 days Cost to complete: MZN 37,416 Agency: Electricidade de Mozambique (EDM) Comment: Procedure 10 Request water and sewage connection Time to complete: 1 day Cost to complete: MZN 4,700 Agency: Water Department Comment: Obtaining the connection is immediate because the utility provider is already informed and has approved the project. Procedure 11 Receive inspection and obtain approval of plumbing plan from the water department Time to complete: 1 day Cost to complete: no charge Agency: Water Department Comment: The company must supply the (layout) drawings. The typical waiting time is about 4 weeks. Procedure 12 Connect to water and sewage services Time to complete: 43 days Cost to complete: no charge Agency: Water Department Comment: Procedure 13 Request and obtain telephone connection Time to complete: 2 days Cost to complete: MZN 2,580 23 Agency: Telecommunications Mozambique (TDM) Comment: Obtaining the connection is immediate because the utility provider is already informed and has approved the project. The cost is 10 per meter of cable. Procedure 14 Request final inspection Time to complete: 1 day Cost to complete: no charge Agency: Municipal Council of Maputo City ­ Department of Construction and Urbanization Comment: The applicant can request a final inspection only when the construction is fully terminated. The final inspection must take place within 30 days. Under the new initiative of streamlining the process of building control and fighting corruption the Municipality of Maputo requires the request for final inspection be made at the its main office of Department of Construction and Urbanization. Rationale behind this step is that before companies would request from their respective district office of Department of Construction and Urbanization and could possible have established personal ties. That might have been used to wield their favorable decision. The new rule of visiting the Municipality led to increase of time for the inspection by 5 days. Procedure 15 Receive final inspection Time to complete: 1 day Cost to complete: no charge Agency: Municipality and other departments (fire, health, and water, etc.) Comment: The final inspection is carried out by the fire department, the health department, the water department, and other appropriate agencies. This inspection is coordinated by the municipal authority. Procedure 16 Request and obtain an occupancy permit Time to complete: 95 days Cost to complete: MZN 2,000 Agency: Municipal Council of Maputo City ­ Department of Construction and Urbanization Comment: In order to obtain the occupancy permit, it is necessary to request a certificate of improvements, pay all relevant taxes, and attach the building permit. Procedure 17 Register the new building at the property registration agency Time to complete: 45 days Cost to complete: MZN 410 Agency: Property Registry (Conservatoria do Registro) Comment: It is necessary to register the building for real property tax purposes. For this the certificate of occupancy must be obtained and presented for registration at Conservatoria do Registro. 24 25 26 1. Benchmarking Registering Property Regulations: Mozambique is ranked 144 overall for Registering Property. Ranking of Mozambique in Registering Property - Compared to good practice and selected economies: 27 The following table shows Registering Property data for Mozambique 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 Mozambique 8 42 9.9 Comparator Economies Angola 7 184 11.5 Botswana 5 16 5.0 Mauritius 4 26 10.6 South Africa 6 24 8.8 Tanzania 9 73 4.4 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 28 2. Historical data: Registering Property in Mozambique Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 153 144 Procedures (number) 8 8 8 8 Time (days) 42 42 42 42 Cost (% of property value) 12.3 12.9 11.3 9.9 3. The following graphs illustrate the Registering Property sub indicators in Mozambique over the past 4 years: 29 Registering Property in Mozambique This topic examines the steps, time, and cost involved in registering property in Mozambique. STANDARDIZED PROPERTY Property Value: 575,769.68 City: Maputo Registration Requirements: No: Procedure Time to complete Cost to complete 1 * Obtain a Real Estate Registry certificate of the 3-14 days MZN 75 property from the Real Estate Registry Office (simultaneous with procedure 2) 2 * Obtain a certificate from the Tax Authority regarding 3-14 days MZN 100 the value of the property (simultaneous with procedure 1) 3 Lawyer prepares the draft sale and purchase 1-14 days MZN 12,000 ­ MZN agreement 30,800 4 Payment of transfer tax (SISA) at the Municipal Tax 3 days 2% of property value Office (SISA-transfer tax) + 20% of the transfer tax (municipal charge-`adicional autarquico') 30 5 Submit the draft sale and purchase agreement to the 1-8 days 0.2% of property value public notary to verify and issue the notarial deed of (stamp duty) + Notarial fees purchase according to the following schedule: 0.4% of property value up to the first MZN 5 million + 0.01% of property value for the excess of MZN 5 million. 6 Apply for registration of the building at the Real 2-7 days Registration fees according Estate Registry Office to the following schedule: 0.4% of property value up to the first MZN 5 million + 0.01% of property value for the excess of MZN 5 million. 7 * Submit the notarial deed at the Municipal Tax Office 3-14 days MZN 150 (simultaneous with procedure 8) 8 * Submit the notary deed to the Cadastre Services 7-14 days MZN 150 Registry (simultaneous with procedure 7) * Takes place simultaneously with another procedure. 31 Registering Property Details - Mozambique Procedure 1 Obtain a Real Estate Registry certificate of the property from the Real Estate Registry Office Time to complete: 3-14 days (simultaneous with procedure 2) Cost to complete: MZN 75 Agency: Real Estate Registry (Conservatória do Registo Predial) Comment: A Real Estate Registry certificate is obtained at the Conservatória do Registo Predial. The certificate shows all the owners of the property/ beneficiaries of the use and benefit right, and is valid for 90 days. If the owner does not have a copy of the current real property registration, then the DCU reference number must be obtained in order for the Registrar to locate the book and page on which the property is registered. Procedure 2 Obtain a certificate from the Tax Authority regarding the value of the property Time to complete: 3-14 days (simultaneous with procedure 1) Cost to complete: MZN 100 Agency: Tax Authority (Repartição das Finanças) Comment: A certificate (registro matricial) with the value of the property is obtained from the tax authority or Repartição das Finanças. Procedure 3 Lawyer prepares the draft sale and purchase agreement Time to complete: 1-14 days Cost to complete: MZN 12,000 ­ MZN 30,800 Comment: A lawyer prepares the sale and purchase agreement. It is necessary to have the underlying land and property title deed and real property registration in order to have all the necessary property description and land plot demarcation details. The form of the description varies from rural areas to municipalities. The actual sales instrument is relatively simple but the additional administrative/registry detail complicates the preparation. Procedure 4 Payment of transfer tax (SISA) at the Municipal Tax Office Time to complete: 3 days Cost to complete: 2% of property value (SISA-transfer tax) + 20% of the transfer tax (municipal charge-`adicional autarquico') Agency: Municipal Tax Office Comment: The property must have been registered for real property taxes (municipal or national), all of the real property tax must have been paid (for which a tax clearance must be obtained), and the owner and the purchaser must be registered for tax purposes (NUIT). A SISA tax receipt is obtained to be submitted with the sale and purchase agreement to the notary and the name of the buyer is registered with the Tax Office. 32 The SISA tax has been reformed by Decree 46/2004 of October 27, cutting it from previous levels around 10%. In the past, the 10% tax that applied to Maputo was not fully paid since the market value of the property was never quoted. This change unifies the level of the transfer tax with the rest of the country that already had taxes around 2%. Procedure 5 Submit the draft sale and purchase agreement to the public notary to verify and issue the notarial deed of purchase Time to complete: 1-8 days Cost to complete: 0.2% of property value (stamp duty) + Notarial fees according to the following schedule: 0.4% of property value up to the first MZN 5 million + 0.01% of property value for the excess of MZN 5 million. Comment: The lawyer/parties submit the draft sale and purchase agreement to the public notary, who verifies the documentation and prepares the notarial deed of sale and purchase for signature. The Real Estate Registry certificate and the SISA payment certificate must be submitted, together with Companies' Registry certificates of the parties and copies of the ID's of their representatives who will execute the notarial deed on their behalf. Copies of quota-holders/directors resolutions and/or powers of attorney may also be required pursuant to the relevant companies' articles of association. In some cases it may be possible to notarize the deed faster if the parties, instead of the notary, prepare the deed themselves and give it to the notary on a disk to notarize. Procedure 6 Apply for registration of the building at the Real Estate Registry Office Time to complete: 2-7 days Cost to complete: Registration fees according to the following schedule: 0.4% of property value up to the first MZN 5 million + 0.01% of property value for the excess of MZN 5 million. Agency: Real Estate Registry Comment: The notary deed of sale and purchase is submitted to the Real Estate Registry Office, together with an application requesting the registration of ownership over the property, on the buildings and of the right of use and fruition over the land, in the name of the buyer. Simultaneously with the request for registration (or sequentially depending on the practice), a certificate of the registration is requested, usually an integral certificate which provides the owner with copies of the pages on which the title is recorded. This is a cautionary measure in the event that the registry books are damaged or destroyed (as happened in the 2000 floods) or disappear somehow. Procedure 7 Submit the notarial deed at the Municipal Tax Office Time to complete: 3-14 days (simultaneous with procedure 8) Cost to complete: MZN 150 Agency: Municipal Tax Office Comment: The notary deed is submitted to the Municipal Tax Office by the parties, together with an application requesting the registration of the buyer as the owner of the property for purposes of Municipal Property Tax Registration. Procedure 8 Submit the notary deed to the Cadastre Services Registry Time to complete: 7-14 days (simultaneous with procedure 7) 33 Cost to complete: MZN 150 Agency: Cadastre Services Registry Comment: This procedure is to register the land (use) in the name of the buyer. The notarial deed is submitted to the Cadastre Services Registry by the parties, together with an application for registration of the property in favor of the buyer, to update the Cadastre. If there is a land use and benefit title, the amendment of the title is requested. The new owner's name is registered inside the title document as is the cross-reference to the Real Property Registry recordings. 34 35 1. Benchmarking Getting Credit Regulations: Mozambique is ranked 128 overall for Getting Credit. Ranking of Mozambique in Getting Credit - Compared to good practice and selected economies: 36 The following table shows Getting Credit data for Mozambique 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 Mozambique 2 4 2.2 0.0 Comparator Economies Angola 4 3 2.4 0.0 Botswana 7 4 0.0 57.6 Mauritius 5 3 49.8 0.0 South Africa 9 6 0.0 54.9 Tanzania 8 0 0.0 0.0 * 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. 37 2. Historical data: Getting Credit in Mozambique Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 125 128 Strength of legal rights index (0-10) 2 2 2 2 Depth of credit information index (0-6) 3 4 4 4 Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0 Public registry coverage (% of adults) 0.9 1.9 2.3 2.2 3. The following graphs illustrate the Getting Credit sub indicators in Mozambique over the past 4 years: 38 Getting Credit in Mozambique The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Mozambique. 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 Yes 1 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 Yes 1 Is it guaranteed by law that borrowers can inspect their data in the No Yes 1 largest credit registry? Coverage 0.0 2.2 Number of individuals 0 351,324 Number of firms 0 9,660 39 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 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 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, No 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? No Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? Yes Does the law authorize parties to agree on out of court enforcement? No 40 41 1. Benchmarking Protecting Investors Regulations: Mozambique is ranked 44 overall for Protecting Investors. Ranking of Mozambique in Protecting Investors - Compared to good practice and selected economies: 42 The following table shows Protecting Investors data for Mozambique compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Mozambique 6.0 Comparator Economies Angola 5.7 Botswana 6.0 Mauritius 7.7 South Africa 8.0 Tanzania 5.0 43 2. Historical data: Protecting Investors in Mozambique Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 41 44 Strength of investor protection index (0-10) 6.0 6.0 6.0 6.0 3. The following graph illustrates the Protecting Investors index in Mozambique compared to best practice and selected Economies: 9.7 8.0 7.7 6.0 6.0 5.7 5.0 us a a an nd a a e iti ic qu i ol an fr r w a ng au bi al A ts nz A Ze am M Bo h Ta ut ew oz So M N Note: The higher the score, the greater the investor protection. 44 Protecting Investors in Mozambique The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Mozambique. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 5 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? 1 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) 4 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? 0 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? 45 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) 9 3 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? 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? 1 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 6.0 46 47 1. Benchmarking Paying Taxes Regulations: Mozambique is ranked 101 overall for Paying Taxes. Ranking of Mozambique in Paying Taxes - Compared to good practice and selected economies: 48 The following table shows Paying Taxes data for Mozambique 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 Mozambique 37 230 34.3 Comparator Economies Angola 31 282 53.2 Botswana 19 152 19.5 Mauritius 7 161 24.1 South Africa 9 200 30.5 Tanzania 48 172 45.2 * The following economies are also good practice economies for : Payments (number per year): Qatar 49 2. Historical data: Paying Taxes in Mozambique Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 98 101 Total tax rate (% profit) 34.3 34.3 34.3 34.3 Payments (number per year) 37 37 37 37 Time (hours per year) 230 230 230 230 3. The following graphs illustrate the Paying Taxes sub indicators in Mozambique over the past 4 years: 50 Paying Taxes in Mozambique The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Mozambique, 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 Fuel tax 1 stamp duty 1 Value added tax (VAT) 12 120 17.0% value added Municipal property tax 2 01.% to 1% building 0.50 value Tax on interest 0 withheld 20.0% interest 0.50 income vehicle tax 1 annual fee 0.50 based on production year and capacity of vehicle. Municipal tax on 1 4500 (fixed 1.10 economical activity fee) Social security 12 60 4.0% gross salaries 4.50 contributions 51 Corporate income tax 7 50 32.0% taxable profit 27.70 Totals 37 230 34.3 52 53 1. Benchmarking Trading Across Borders Regulations: Mozambique is ranked 133 overall for Trading Across Borders. Ranking of Mozambique in Trading Across Borders - Compared to good practice and selected economies: 54 The following table shows Trading Across Borders data for Mozambique 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 Mozambique 7 23 1100 10 30 1475 Comparator Economies Angola 11 52 1850 8 49 2840 Botswana 6 28 3010 9 41 3390 Mauritius 5 13 737 6 13 689 South Africa 8 30 1531 9 35 1807 Tanzania 5 24 1262 7 31 1475 * The following economies are also good practice economies for : Time to export (days): Estonia 55 2. Historical data: Trading Across Borders in Mozambique Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 136 133 Cost to export (US$ per container) 1055 1100 1100 1100 Cost to import (US$ per container) 1185 1475 1475 1475 Documents to export (number) 7 7 7 7 Documents to import (number) 10 10 10 10 Time to export (days) 27 26 23 23 Time to import (days) 38 32 30 30 3. The following graphs illustrate the Trading Across Borders sub indicators in Mozambique over the past 4 years: 56 57 Trading Across Borders in Mozambique These tables list the procedures necessary to import and export a standardized cargo of goods in Mozambique. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 13 185 Customs clearance and technical control 2 250 Ports and terminal handling 4 365 Inland transportation and handling 4 300 Totals 23 1100 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 20 495 Customs clearance and technical control 3 280 Ports and terminal handling 5 400 Inland transportation and handling 2 300 Totals 30 1475 58 Documents for Export and Import Export Bill of lading Cargo release order Commercial invoice Customs export declaration Inspection report from scanner Packing list Terminal handling receipts Import Bill of lading Cargo release order Certificate of origin Commercial invoice Customs import declaration Delivery order Inspection report from scanner Packing list Pre-shipment inspection clean report of findings Terminal handling receipts 59 60 1. Benchmarking Enforcing Contracts Regulations: Mozambique is ranked 132 overall for Enforcing Contracts. Ranking of Mozambique in Enforcing Contracts - Compared to good practice and selected economies: 61 The following table shows Enforcing Contracts data for Mozambique 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 Mozambique 30 730 142.5 Comparator Economies Angola 46 1011 44.4 Botswana 29 625 28.1 Mauritius 36 645 17.4 South Africa 30 600 33.2 Tanzania 38 462 14.3 62 2. Historical data: Enforcing Contracts in Mozambique Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 129 132 Procedures (number) 31 30 30 30 Time (days) 1010 730 730 730 Cost (% of claim) 142.5 142.5 142.5 142.5 3. The following graphs illustrate the Enforcing Contracts sub indicators in Mozambique over the past 4 years: 63 Enforcing Contracts in Mozambique This topic looks at the efficiency of contract enforcement in Mozambique. Nature of Procedure (2010) Indicator Procedures (number) 30 Time (days) 730 Filing and service 90.0 Trial and judgment 460.0 Enforcement of judgment 180.0 Cost (% of claim)* 142.50 Attorney cost (% of claim) 98.5 Court cost (% of claim) 24.0 Enforcement Cost (% of claim) 20.0 64 Court information: Maputo District Court ("Tribunal Judicial do Distrito") * Claim assumed to be equivalent to 200% of income per capita. 65 66 1. Benchmarking Closing Business Regulations: Mozambique is ranked 129 overall for Closing a Business. Ranking of Mozambique in Closing Business - Compared to good practice and selected economies: 67 The following table shows Closing Business data for Mozambique 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 Mozambique 17.7 5.0 9 Comparator Economies Angola 8.4 6.2 22 Botswana 63.7 1.7 15 Mauritius 35.1 1.7 15 South Africa 34.4 2.0 18 Tanzania 21.9 3.0 22 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 68 2. Historical data: Closing Business in Mozambique Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 135 129 Time (years) 5.0 5.0 5.0 5.0 Cost (% of estate) 9 9 9 9 Recovery rate (cents on the dollar) 13.9 15.2 15.2 17.7 3. The following graphs illustrate the Closing Business sub indicators in Mozambique over the past 4 years: 69 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. 70 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Angola Angola reduced the time for trading across borders by making investments in port infrastructure and administration. 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. 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. Mauritius Mauritius introduced a new corporate social responsibility tax. Mauritius speeded up the resolution of commercial disputes by recruiting more judges and adding more courtrooms. Mozambique Mozambique eased business start-up by introducing a simplified licensing process. 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. 71 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. 72 73