58857 St. Lucia © 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 St. Lucia. 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 St. Lucia is ranked 53 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. St. Lucia - Compared to global good practice economy as well as selected economies: St. Lucia's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 53 Starting a Business 41 Dealing with Construction Permits 13 Registering Property 77 Getting Credit 89 Protecting Investors 28 Paying Taxes 45 Trading Across Borders 105 Enforcing Contracts 165 Closing a Business 52 2 Summary of Indicators - St. Lucia Starting a Business Procedures (number) 5 Time (days) 14 Cost (% of income per capita) 23.8 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 9 Time (days) 139 Cost (% of income per capita) 32.2 Registering Property Procedures (number) 6 Time (days) 16 Cost (% of property value) 7.4 Getting Credit Strength of legal rights index (0-10) 8 Depth of credit information index (0-6) 0 Public registry coverage (% of adults) 0.0 Private bureau coverage (% of adults) 0.0 Protecting Investors Extent of disclosure index (0-10) 4 Extent of director liability index (0-10) 8 Ease of shareholder suits index (0-10) 7 Strength of investor protection index (0-10) 6.3 Paying Taxes Payments (number per year) 32 Time (hours per year) 92 Profit tax (%) 25.4 Labor tax and contributions (%) 5.6 Other taxes (%) 2.9 Total tax rate (% profit) 34.0 Trading Across Borders Documents to export (number) 5 Time to export (days) 14 Cost to export (US$ per container) 1700 Documents to import (number) 8 Time to import (days) 18 Cost to import (US$ per container) 2745 3 Enforcing Contracts Procedures (number) 47 Time (days) 635 Cost (% of claim) 37.3 Closing a Business Recovery rate (cents on the dollar) 41.5 Time (years) 2.0 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 0.020 0.018 0.016 Doing 0.014 business has become easier (DB 0.012 change score) 0.010 0.008 0.006 0.004 0.002 St. Antigua Grenada Jamaica Dominica St. Kitts St. Lucia Vincent and and Nevis and the Barbuda Grenadines 6 1. Benchmarking Starting a Business Regulations: St. Lucia is ranked 41 overall for Starting a Business. Ranking of St. Lucia in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for St. Lucia 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 St. Lucia 5 14 23.8 0.0 Comparator Economies Antigua and Barbuda 8 21 11.0 0.0 Dominica 5 14 22.0 0.0 Grenada 6 15 25.2 0.0 Jamaica 6 8 5.2 0.0 St. Kitts and Nevis 7 19 11.3 0.0 St. Vincent and the 7 10 21.2 0.0 Grenadines * 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 St. Lucia Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 38 41 Procedures (number) 6 6 5 5 Time (days) 20 20 14 14 Cost (% of income per capita) 23.7 22.6 21.8 23.8 Min. capital (% of income per capita) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in St. Lucia over the past 4 years: 9 Starting a Business Summary - St. Lucia This table summarizes the procedures and costs associated with setting up a business in St. Lucia. STANDARDIZED COMPANY Legal Form: Private Limited Liability Company City: Castries Registration Requirements: No: Procedure Time to complete Cost to complete 1 Lawyer prepares incorporation documents 1 XCD 2,325 2 Registration with the Commercial Registry 6 XCD 850 3 Make company seal 7 XCD 75 4 * Obtain tax payer identification number 1 no charge 5 * Register as employer with social security institute 1 no charge * Takes place simultaneously with another procedure. 10 Starting a Business Details - St. Lucia Procedure 1 Lawyer prepares incorporation documents Time to complete: 1 Cost to complete: XCD 2,325 Comment: An attorney prepares the incorporation documents, which include (a) the articles of incorporation; (b) the notice of directors; (c) the notice of the company's registered office; (d) and the sworn declaration swearing that the company owner is mentally sound and over 18 years of age. Bylaws are not essential for forming the company but are highly recommended. They are usually filed together with the other documents in this procedure and are included in the company formation fee. Procedure 2 Registration with the Commercial Registry Time to complete: 6 Cost to complete: XCD 850 Comment: When registering the company with the Commercial Registry, the promoters pay an administrative fee when presenting the documents for registration. The Registry issues a certification of incorporation once the registration process is finalized. Procedure 3 Make company seal Time to complete: 7 Cost to complete: XCD 75 Comment: A company can obtain a rubber-stamp seal locally in 7 days; the cost is XCD 75. If a more formal embossed seal is required, it can be obtained from overseas in 14 days; the cost is about XCD 260. Procedure 4 Obtain tax payer identification number Time to complete: 1 Cost to complete: no charge Comment: The competent authority is the Inland Revenue Department. Procedure 5 Register as employer with social security institute Time to complete: 1 Cost to complete: no charge Comment: The competent authority is the National Insurance Corporation. 11 12 1. Benchmarking Dealing with Construction Permits Regulations: St. Lucia is ranked 13 overall for Dealing with Construction Permits. Ranking of St. Lucia in Dealing with Construction Permits - Compared to good practice and selected economies: 13 The following table shows Dealing with Construction Permits data for St. Lucia 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 St. Lucia 9 139 32.2 Comparator Economies Antigua and Barbuda 13 156 24.2 Dominica 13 182 11.0 Grenada 10 149 25.9 Jamaica 10 156 258.3 St. Kitts and Nevis 14 67 4.8 St. Vincent and the 11 74 7.0 Grenadines 14 2. Historical data: Dealing with Construction Permits in St. Lucia Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 12 13 Procedures (number) 9 9 9 9 Time (days) 139 139 139 139 Cost (% of income per capita) 31.9 30.3 29.5 32.2 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in St. Lucia over the past 4 years: 15 Dealing with Construction Permits in St. Lucia The table below summarizes the procedures, time, and costs to build a warehouse in St. Lucia. BUILDING A WAREHOUSE City: Castries Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain Health Department approval 21 days XCD 250 2 * Obtain electricity approval from Ministry of Communications and Works 14 days XCD 1,000 3 * Obtain approval from Fire Department 14 days XCD 600 4 Obtain approval from DCA commercial committee 42 days XCD 2,200 5 Receive inspection from WASCO (water department) 17 days no charge 6 Obtain certificate from electricity inspectors from Ministry of 8 days XCD 200 Communications and Works 7 Connect to electric grid 21 days no charge 8 Obtain water connection 30 days XCD 150 16 9 * Obtain fixed telephone line 10 days no charge * Takes place simultaneously with another procedure. 17 Dealing with Construction Permits Details - St. Lucia Procedure 1 Obtain Health Department approval Time to complete: 21 days Cost to complete: XCD 250 Agency: Health Department Comment: Site and floor plans are submitted that show adequate drainage and septic tanks. Procedure 2 Obtain electricity approval from Ministry of Communications and Works Time to complete: 14 days Cost to complete: XCD 1,000 Agency: Ministry of Communications and Works Comment: Procedure 3 Obtain approval from Fire Department Time to complete: 14 days Cost to complete: XCD 600 Agency: Fire Department Comment: Procedure 4 Obtain approval from DCA commercial committee Time to complete: 42 days Cost to complete: XCD 2,200 Agency: DCA's Commercial Committee Comment: The committee meets every 3 weeks. BuildCo must provide copies of all previous approvals. Procedure 5 Receive inspection from WASCO (water department) Time to complete: 17 days Cost to complete: no charge Agency: WASCO (water department) 18 Comment: Procedure 6 Obtain certificate from electricity inspectors from Ministry of Communications and Works Time to complete: 8 days Cost to complete: XCD 200 Agency: Ministry of Communications and Works Comment: This procedure is undertaken once construction is completed. Procedure 7 Connect to electric grid Time to complete: 21 days Cost to complete: no charge Agency: LUCELEC (St. Lucia Electricity Services Ltd.) Comment: Procedure 8 Obtain water connection Time to complete: 30 days Cost to complete: XCD 150 Agency: WASCO (water department) Comment: Procedure 9 Obtain fixed telephone line Time to complete: 10 days Cost to complete: no charge Agency: Cable and Wireless Comment: 19 20 1. Benchmarking Registering Property Regulations: St. Lucia is ranked 77 overall for Registering Property. Ranking of St. Lucia in Registering Property - Compared to good practice and selected economies: 21 The following table shows Registering Property data for St. Lucia 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 St. Lucia 6 16 7.4 Comparator Economies Antigua and Barbuda 7 26 10.9 Dominica 5 42 13.7 Grenada 8 47 7.4 Jamaica 6 37 7.5 St. Kitts and Nevis 6 81 13.3 St. Vincent and the 7 38 11.9 Grenadines * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 22 2. Historical data: Registering Property in St. Lucia Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 76 77 Procedures (number) 6 6 6 6 Time (days) 16 16 16 16 Cost (% of property value) 7.4 7.4 7.4 7.4 3. The following graphs illustrate the Registering Property sub indicators in St. Lucia over the past 4 years: 23 Registering Property in St. Lucia This topic examines the steps, time, and cost involved in registering property in St. Lucia. STANDARDIZED PROPERTY Property Value: 684,189.28 City: Castries Registration Requirements: No: Procedure Time to complete Cost to complete 1 * The purchaser's lawyer conducts search of title at 1-2 days (simultaneous EC$ 5 per parcel (property) Land Registry and retrieves survey plan at the with procedures 2 and + EC$1 for survey plan Ministry of Planning 3) 2 * Search for encumbrances at the Registry of the High 1 day (simultaneous EC$ 5 + EC$ 1 for each Court with procedures 1 and page copied 3) 3 * Obtain tax clearance certificate from the Inland 1-3 days (simultaneous no cost Revenue Authority with procedures 1 and 2 4 * Obtain tax clearance certificate from the National 1-3 days (simulaneous no cost Institute of Security with procedure 3) 24 5 Lawyer prepares and executes deed of sale 1-2 days Lawyer's fees + Vendor's tax + Stamp Duty (2% of property value) + EC$ 20Lawyer's fees: flat fee of EC$ 100 + % of property value, according to the following scale: Property value:Fee: Up to 50,0002.5% Between 51,000 and 150,0001.5% Between 151,000 and 1 million1.0% Over 1 million0.5% Vendor's tax: Seller pays vendor's tax according to the following sliding scale (for a St. Lucian national): Property value:Vendor's tax: Up to 50,000no charge Between 50,000 and 75,0002.5% Between 75,000 and 150,0003.5% Balance5.0% 6 Register title deed with Land Registry 7-10 days EC$ 20 registration fee * Takes place simultaneously with another procedure. 25 Registering Property Details - St. Lucia Procedure 1 The purchaser's lawyer conducts search of title at Land Registry and retrieves survey plan at the Ministry of Planning Time to complete: 1-2 days (simultaneous with procedures 2 and 3) Cost to complete: EC$ 5 per parcel (property) + EC$1 for survey plan Agency: Land Registry and Ministry of Planning Comment: The Land Registry and Ministry of Planning are located in the same building, so the title search and retrieval of survey plan can sometimes occur within one day. However, if the file/plan is unavailable (i.e. in front of the Registrar for other reasons), it would take longer. The plan number is needed to retrieve the Survey Plan and this is usually found on the vendor's title. It is common practice for a lawyer to conduct these searches. Procedure 2 Search for encumbrances at the Registry of the High Court Time to complete: 1 day (simultaneous with procedures 1 and 3) Cost to complete: EC$ 5 + EC$ 1 for each page copied Agency: Registry of the High Court Comment: This search is necessary to ascertain whether or not there are any judgments against the purchaser. Unless all judgments are settled, the transaction cannot proceed. Procedure 3 Obtain tax clearance certificate from the Inland Revenue Authority Time to complete: 1-3 days (simultaneous with procedures 1 and 2 Cost to complete: no cost Agency: Inland Revenue Authority Comment: In order for the execution of the deed to proceed, both the seller and purchaser must have paid all outstanding income taxes and property taxes. Therefore, clearance from the Inland Revenue Authority must be granted. This usually takes a few days because the Revenue Authority scans all documents and then must send the clearance certificate to the land registry. For non-nationals, the Vendor's Tax is 10%. Procedure 4 Obtain tax clearance certificate from the National Institute of Security Time to complete: 1-3 days (simulaneous with procedure 3) Cost to complete: no cost Agency: National Institute of Security Comment: A clearance document from the National Institute of Security is required to prove that the company has paid its outstanding dues at the National Security Institute. The document can be 26 obtained in 1-3 days, and has no charge. Procedure 5 Lawyer prepares and executes deed of sale Time to complete: 1-2 days Cost to complete: Lawyer's fees + Vendor's tax + Stamp Duty (2% of property value) + EC$ 20Lawyer's fees: flat fee of EC$ 100 + % of property value, according to the following scale: Property value:Fee: Up to 50,0002.5% Between 51,000 and 150,0001.5% Between 151,000 and 1 million1.0% Over 1 million0.5% Vendor's tax: Seller pays vendor's tax according to the following sliding scale (for a St. Lucian national): Property value:Vendor's tax: Up to 50,000no charge Between 50,000 and 75,0002.5% Between 75,000 and 150,0003.5% Balance5.0% Comment: Ideally, the lawyer can prepare and execute the deed in one day. However, this is dependent upon receiving the "Radiation" document of discharge of the seller's mortgage from the bank. If there are no mortgages attached to the property, execution of the deed can be done in one or two days at the most. The purchaser pays stamp duty to the Inland Revenue Authority, in addition to EC$ 20, which represents stamp duty on two additional copies at EC$ 10 per copy. The scale of lawyers' fees is set by the Bar Association of St. Lucia, and are used as a basis for the fees. A minimum flat fee of EC$ 100 is charged in addition to a percentage of property value. The seller will also pay Vendor's tax at this stage. Procedure 6 Register title deed with Land Registry Time to complete: 7-10 days Cost to complete: EC$ 20 registration fee Agency: Land Registry Comment: The registration fee is EC$20 for copies of the deed (one to the purchaser and one for the Registry to keep). Registration time depends on whether or not all documentation is complete and all fees and taxes have been paid. Stamp duty is paid to the Inland Revenue Authority. Documentation required: - Deed of sale 27 28 1. Benchmarking Getting Credit Regulations: St. Lucia is ranked 89 overall for Getting Credit. Ranking of St. Lucia in Getting Credit - Compared to good practice and selected economies: 29 The following table shows Getting Credit data for St. Lucia 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 St. Lucia 8 0 0.0 0.0 Comparator Economies Antigua and Barbuda 7 0 0.0 0.0 Dominica 9 0 0.0 0.0 Grenada 8 0 0.0 0.0 Jamaica 8 0 0.0 0.0 St. Kitts and Nevis 7 0 0.0 0.0 St. Vincent and the 7 0 0.0 0.0 Grenadines * 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. 30 2. Historical data: Getting Credit in St. Lucia Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 87 89 Strength of legal rights index (0-10) 8 8 8 8 Depth of credit information index (0-6) 0 0 0 0 Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0 Public registry coverage (% of adults) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Getting Credit sub indicators in St. Lucia over the past 4 years: 31 Getting Credit in St. Lucia The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in St. Lucia. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 0 bureau registry Are data on both firms and individuals distributed? No No 0 Are both positive and negative data distributed? No No 0 Does the registry distribute credit information from retailers, trade No No 0 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? No No 0 Is data on all loans below 1% of income per capita distributed? No No 0 Is it guaranteed by law that borrowers can inspect their data in the No No 0 largest credit registry? Coverage 0.0 0.0 Number of individuals 0 0 Number of firms 0 0 32 Strength of legal rights index (0-10) 8 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, Yes 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 Yes 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? Yes 33 34 1. Benchmarking Protecting Investors Regulations: St. Lucia is ranked 28 overall for Protecting Investors. Ranking of St. Lucia in Protecting Investors - Compared to good practice and selected economies: 35 The following table shows Protecting Investors data for St. Lucia compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy St. Lucia 6.3 Comparator Economies Antigua and Barbuda 6.3 Dominica 6.3 Grenada 6.3 Jamaica 5.3 St. Kitts and Nevis 6.3 St. Vincent and the 6.3 Grenadines 36 2. Historical data: Protecting Investors in St. Lucia Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 27 28 Strength of investor protection index (0-10) 6.3 6.3 6.3 6.3 3. The following graph illustrates the Protecting Investors index in St. Lucia compared to best practice and selected Economies: 9.7 6.3 6.3 6.3 6.3 6.3 6.3 5.3 a da ic ud nd nd d di nd a in na c ev an rb a a ai a na a om Lu t . s re al m ne a N tts re ent S Ba igu a Ze G D Ja ci i is .K e G nc nt ew th . Vi A St N St Note: The higher the score, the greater the investor protection. 37 Protecting Investors in St. Lucia The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in St. Lucia. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 4 1 What corporate body provides legally sufficient approval for the transaction? 0 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 1 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? 0 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 8 2 Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 2 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? 38 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 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? 0 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) 6.3 39 40 1. Benchmarking Paying Taxes Regulations: St. Lucia is ranked 45 overall for Paying Taxes. Ranking of St. Lucia in Paying Taxes - Compared to good practice and selected economies: 41 The following table shows Paying Taxes data for St. Lucia 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 St. Lucia 32 92 34.0 Comparator Economies Antigua and Barbuda 56 207 41.5 Dominica 38 120 37.0 Grenada 30 140 45.3 Jamaica 72 414 50.1 St. Kitts and Nevis 24 155 52.7 St. Vincent and the 32 111 38.7 Grenadines * The following economies are also good practice economies for : Payments (number per year): Qatar 42 2. Historical data: Paying Taxes in St. Lucia Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 42 45 Total tax rate (% profit) 34.0 34.0 34.4 34.0 Payments (number per year) 32 32 32 32 Time (hours per year) 71 61 92 92 3. The following graphs illustrate the Paying Taxes sub indicators in St. Lucia over the past 4 years: 43 Paying Taxes in St. Lucia The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in St. Lucia, as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR stamp duty on contracts 1 varies type of contract consumption tax 12 30 0-35% cost of goods sold Tax on insurance 1 3.0% insurance 0.00 contracts premium Tax on check 1 30 cents per check 0.00 transactions fuel tax 1 included in 0.00 fuel price Vehicle tax 1 fixed fee size or 0.10 capacity of vehicle Property tax 1 0.3% property 0.30 value Property transfer tax 1 4.0% sale price 2.50 (stamp duty) Social security 12 51 5.0% gross salaries 5.60 contributions 44 Corporate income tax 1 11 30.0% taxable profit 25.40 Totals 32 92 34.0 45 46 1. Benchmarking Trading Across Borders Regulations: St. Lucia is ranked 105 overall for Trading Across Borders. Ranking of St. Lucia in Trading Across Borders - Compared to good practice and selected economies: 47 The following table shows Trading Across Borders data for St. Lucia 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 St. Lucia 5 14 1700 8 18 2745 Comparator Economies Antigua and Barbuda 5 15 1133 5 15 1633 Dominica 7 13 1297 8 15 1310 Grenada 6 10 876 5 15 2129 Jamaica 6 21 1750 6 22 1420 St. Kitts and Nevis 4 12 850 5 13 2138 St. Vincent and the 5 12 1075 4 12 1605 Grenadines * The following economies are also good practice economies for : Time to export (days): Estonia 48 2. Historical data: Trading Across Borders in St. Lucia Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 104 105 Cost to export (US$ per container) 1550 1600 1600 1700 Cost to import (US$ per container) 2595 2645 2645 2745 Documents to export (number) 5 5 5 5 Documents to import (number) 8 8 8 8 Time to export (days) 18 15 14 14 Time to import (days) 21 18 18 18 3. The following graphs illustrate the Trading Across Borders sub indicators in St. Lucia over the past 4 years: 49 50 Trading Across Borders in St. Lucia These tables list the procedures necessary to import and export a standardized cargo of goods in St. Lucia. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 5 250 Customs clearance and technical control 1 100 Ports and terminal handling 6 600 Inland transportation and handling 2 750 Totals 14 1700 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 9 250 Customs clearance and technical control 1 1145 Ports and terminal handling 6 600 Inland transportation and handling 2 750 Totals 18 2745 51 Documents for Export and Import Export Bill of lading Certificate of origin Commercial invoice Shipping bill Single Administration Document (SAD) Import Bill of lading Cargo release order Certificate of origin Commercial invoice Import license Inspection report Single Administration Document (SAD) Technical standard/health certificate 52 53 1. Benchmarking Enforcing Contracts Regulations: St. Lucia is ranked 165 overall for Enforcing Contracts. Ranking of St. Lucia in Enforcing Contracts - Compared to good practice and selected economies: 54 The following table shows Enforcing Contracts data for St. Lucia 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 St. Lucia 47 635 37.3 Comparator Economies Antigua and Barbuda 45 351 22.7 Dominica 47 681 36.0 Grenada 47 688 32.6 Jamaica 35 655 45.6 St. Kitts and Nevis 47 578 20.5 St. Vincent and the 45 394 30.3 Grenadines 55 2. Historical data: Enforcing Contracts in St. Lucia Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 165 165 Procedures (number) 47 47 47 47 Time (days) 635 635 635 635 Cost (% of claim) 37.3 37.3 37.3 37.3 3. The following graphs illustrate the Enforcing Contracts sub indicators in St. Lucia over the past 4 years: 56 Enforcing Contracts in St. Lucia This topic looks at the efficiency of contract enforcement in St. Lucia. Nature of Procedure (2010) Indicator Procedures (number) 47 Time (days) 635 Filing and service 11.0 Trial and judgment 444.0 Enforcement of judgment 180.0 Cost (% of claim)* 37.30 Attorney cost (% of claim) 29.3 Court cost (% of claim) 2.0 Enforcement Cost (% of claim) 6.0 57 Court information: Eastern Caribbean Supreme Court, Castries High Court of Justice * Claim assumed to be equivalent to 200% of income per capita. 58 59 1. Benchmarking Closing Business Regulations: St. Lucia is ranked 52 overall for Closing a Business. Ranking of St. Lucia in Closing Business - Compared to good practice and selected economies: 60 The following table shows Closing Business data for St. Lucia 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 St. Lucia 41.5 2.0 9 Comparator Economies Antigua and Barbuda 36.7 3.0 7 Dominica 0.0 no practice no practice Grenada 0.0 no practice no practice Jamaica 65.1 1.1 18 St. Kitts and Nevis 0.0 no practice no practice St. Vincent and the 0.0 no practice no practice Grenadines * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 61 2. Historical data: Closing Business in St. Lucia Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 47 52 Time (years) 2.0 2.0 2.0 2.0 Cost (% of estate) 9 9 9 9 Recovery rate (cents on the dollar) 41.8 42.9 42.9 41.5 3. The following graphs illustrate the Closing Business sub indicators in St. Lucia over the past 4 years: 62 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. 63 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Antigua and Barbuda In Antigua and Barbuda, to transfer property now requires clearance by the chief surveyor to avoid mischievous declarations. 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. Jamaica Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures and making information from the company registrar available online. 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. 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. 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. 64 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. 65 66