59411 Uruguay © 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 Uruguay. 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 Uruguay is ranked 124 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Uruguay - Compared to global good practice economy as well as selected economies: Uruguay's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 124 Starting a Business 139 Dealing with Construction Permits 141 Registering Property 159 Getting Credit 46 Protecting Investors 93 Paying Taxes 155 Trading Across Borders 132 Enforcing Contracts 102 Closing a Business 57 2 Summary of Indicators - Uruguay Starting a Business Procedures (number) 11 Time (days) 65 Cost (% of income per capita) 42.1 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 30 Time (days) 234 Cost (% of income per capita) 84.5 Registering Property Procedures (number) 8 Time (days) 66 Cost (% of property value) 7.1 Getting Credit Strength of legal rights index (0-10) 5 Depth of credit information index (0-6) 6 Public registry coverage (% of adults) 19.4 Private bureau coverage (% of adults) 100.0 Protecting Investors Extent of disclosure index (0-10) 3 Extent of director liability index (0-10) 4 Ease of shareholder suits index (0-10) 8 Strength of investor protection index (0-10) 5.0 Paying Taxes Payments (number per year) 53 Time (hours per year) 336 Profit tax (%) 23.6 Labor tax and contributions (%) 15.6 Other taxes (%) 2.9 Total tax rate (% profit) 42.0 Trading Across Borders Documents to export (number) 10 Time to export (days) 19 Cost to export (US$ per container) 1100 Documents to import (number) 10 Time to import (days) 22 Cost to import (US$ per container) 1330 3 Enforcing Contracts Procedures (number) 41 Time (days) 720 Cost (% of claim) 19.0 Closing a Business Recovery rate (cents on the dollar) 39.7 Time (years) 2.1 Cost (% of estate) 7 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 0.08 0.06 Doing business has 0.04 become easier (DB change 0.02 score) 0.00 Doing -0.02 business has become more difficult or more -0.04 Brazil Uruguay Ecuador Bolivia Chile Argentina costly 6 1. Benchmarking Starting a Business Regulations: Uruguay is ranked 139 overall for Starting a Business. Ranking of Uruguay in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Uruguay 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 Uruguay 11 65 42.1 0.0 Comparator Economies Argentina 14 26 14.2 2.7 Bolivia 15 50 100.8 2.5 Brazil 15 120 7.3 0.0 Chile 8 22 6.8 0.0 Ecuador 13 56 32.6 4.9 * 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 Uruguay Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 135 139 Procedures (number) 11 11 11 11 Time (days) 44 44 65 65 Cost (% of income per capita) 46.0 43.5 40.0 42.1 Min. capital (% of income per capita) 180.6 0.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Uruguay over the past 4 years: 9 Starting a Business Summary - Uruguay This table summarizes the procedures and costs associated with setting up a business in Uruguay. STANDARDIZED COMPANY Legal Form: Sociedad Anónima (SA) City: Montevideo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Notarize company's articles of association and signatures 1 UYU 26,663 2 Obtain approval of company's bylaws from the Auditoría Interna de la 45 UYU 9,337 Nación 3 Register with the National Registry of Commerce (Registro Nacional 7 USD 295 de Comercio) 4 Publish summary in the Official Gazette 3 USD 165 5 * Publish summary in one local newspaper 3 USD 70 6 Notary Public picks up application forms at the Tax Administration 1 USD 60 (Direccion General Impositiva) and certifies the form after it is signed by founders 7 Registration with the Tax Administration (Direccion General 2 USD 1,412 Impositiva) and the Social Security Bank (Banco de Previsión Social, BPS) 10 8 Declaration of Board of Directors information with Registry of 1 USD 325 Commerce 9 Purchase the labor book (Registro Unico Laboral ) from the bookstore 1 USD 3 10 * Purchase the working act (planilla de trabajo) and register payroll at 2 no charge the Ministry of Labor (MTSS) 11 File for workplace accident insurance of employees with the State 1 no charge Insurance Bank * Takes place simultaneously with another procedure. 11 Starting a Business Details - Uruguay Procedure 1 Notarize company's articles of association and signatures Time to complete: 1 Cost to complete: UYU 26,663 Comment: The fee to notarize the company's articles of association and its signatures depends on the company capital: the fee is usually calculated as 0.5% of the capital plus notary taxes of 18.5%, plus VAT (22% of the fees), with a minimum fee of 40 readjustable units (unidad reajustable, UR). The UR is published on a monthly basis, and as of March 2009, its value is UYU 412.90. Procedure 2 Obtain approval of company's bylaws from the Auditoría Interna de la Nación Time to complete: 45 Cost to complete: UYU 9,337 Comment: The bylaws for Uruguayan corporations (sociedad anonima, S.A.) require the approval of the Internal Auditing Bureau (Auditoría Interna de la Nación), the state entity that controls corporations in Uruguay. The Bureau offers standard bylaws, which cost UYU 20. These bylaws must be signed by the founders of the company, and the signatures must be notarized. Procedure 3 Register with the National Registry of Commerce (Registro Nacional de Comercio) Time to complete: 7 Cost to complete: USD 295 Comment: The procedure takes 20­30 days. Procedure 4 Publish summary in the Official Gazette Time to complete: 3 Cost to complete: USD 165 Comment: Once approved by the Internal Auditing Bureau (Auditoría Interna de la Nación), the company must register the bylaws before the National Registry of Commerce, and a summary must be published in the Official Gazette. The following seven books are mandatory and must be sealed by the National Registry: (1) journal, (2) inventory book, (3) letter copybook, (4) minutes of board meetings, (5) minutes of shareholders' meetings, (6) stock ledger, and (7) shareholders' meeting attendance book. Procedure 5 Publish summary in one local newspaper Time to complete: 3 Cost to complete: USD 70 12 Comment: The company must apply to publish the summary. Procedure 6 Notary Public picks up application forms at the Tax Administration (Direccion General Impositiva) and certifies the form after it is signed by founders Time to complete: 1 Cost to complete: USD 60 Comment: Procedure 7 Registration with the Tax Administration (Direccion General Impositiva) and the Social Security Bank (Banco de Previsión Social, BPS) Time to complete: 2 Cost to complete: USD 1,412 Comment: A notary must draw up a declaration of the founders' names and national identifications and submit it to the Commercial Registry. This document is required for opening a bank account and for company transactions such as transferring, merging, and selling. Procedure 8 Declaration of Board of Directors information with Registry of Commerce Time to complete: 1 Cost to complete: USD 325 Comment: The declaration is made through a document called "declaratoria" (Act 17.904). Procedure 9 Purchase the labor book (Registro Unico Laboral ) from the bookstore Time to complete: 1 Cost to complete: USD 3 Comment: Procedure 10 Purchase the working act (planilla de trabajo) and register payroll at the Ministry of Labor (MTSS) Time to complete: 2 Cost to complete: no charge Comment: Procedure 11 File for workplace accident insurance of employees with the State Insurance Bank Time to complete: 1 Cost to complete: no charge Comment: All social insurance in Uruguay is compulsory. 13 14 1. Benchmarking Dealing with Construction Permits Regulations: Uruguay is ranked 141 overall for Dealing with Construction Permits. Ranking of Uruguay in Dealing with Construction Permits - Compared to good practice and selected economies: 15 The following table shows Dealing with Construction Permits data for Uruguay 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 Uruguay 30 234 84.5 Comparator Economies Argentina 28 338 133.9 Bolivia 17 249 109.1 Brazil 18 411 46.6 Chile 18 155 93.8 Ecuador 19 155 213.2 16 2. Historical data: Dealing with Construction Permits in Uruguay Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 141 141 Procedures (number) 30 30 30 30 Time (days) 234 234 234 234 Cost (% of income per capita) 135.5 108.0 87.1 84.5 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Uruguay over the past 4 years: 17 Dealing with Construction Permits in Uruguay The table below summarizes the procedures, time, and costs to build a warehouse in Uruguay. BUILDING A WAREHOUSE City: Montevideo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Request and obtain a notary's testimony (testimonio notarial) 1 day UYU 3,500 2 Register the construction work (on a provisional basis) at the General 1 day UYU 263 Cadastre Office (Dirección General de Catastro Nacional) 3 Request temporary water connection from Obras Sanitarias del Estado 1 day UYU 8,485 (OSE) 4 Receive inspection and connect to water services from OSE 14 days no charge 5 Request and obtain building permit 30 days UYU 101,764 6 * Register the new construction work for indemnity insurance 1 day no charge 7 * Request and obtain a safety plan and study 5 days UYU 3,860 8 * Request and obtain a report on fire risk from the National Fire Department 90 days UYU 3,235 18 9 * Request sewage services from the Urban Sanitation Department 1 day UYU 231 10 Receive inspection from the water authority - I 1 day no charge 11 Receive inspection from the water authority - II 1 day no charge 12 Receive inspection from the water authority - III 1 day no charge 13 Receive inspection from the water authority - IV 1 day no charge 14 Receive inspection from the water authority - V 1 day no charge 15 Receive inspection from the water authority - VI 1 day no charge 16 Request a final inspection from the municipality 1 day no charge 17 Receive inspection from the municipality 1 day no charge 18 Obtain final approval of the construction work from the municipality 60 days no charge 19 * Receive final inspection by the Social Security Bank and obtain approval 4 days no charge 20 * Request and receive inspection from the National Fire Department 87 days UYU 3,235 21 Register the building at the Cadastre Office 1 day UYU 345 22 Register the building at the National Property (Real Estate) Registry and 5 days UYU 700 obtain certificate 23 Request final water connection from OSE 1 day UYU 45,630 24 * Receive inspection from the OSE 1 day no charge 25 * Connect to final water services from OSE 19 days no charge 26 * Request and obtain connection of sewage services 15 days no charge 27 * Request and obtain a report from the Installing Electrician 3 days no charge 28 * Request electricity connection from Usinas y Transmisiones Eléctricas 1 day no charge (UTE) 29 * Receive inspection and connect to electricity services 3 days UYU 1,500 19 30 * Request and connect to telephone services from the Telecommunications 5 days UYU 2,805 Network Administration (ANTEL) * Takes place simultaneously with another procedure. 20 Dealing with Construction Permits Details - Uruguay Procedure 1 Request and obtain a notary's testimony (testimonio notarial) Time to complete: 1 day Cost to complete: UYU 3,500 Agency: Notary Public (Escribano Público/Notario) Comment: Notarized documents are required for obtaining a building permit, registering the new construction work, and obtaining water and electrical power services. Notarization costs UYU 1,500 to UYU 2,000, and three notarized copies cost UYU 600 per copy. Procedure 2 Register the construction work (on a provisional basis) at the General Cadastre Office (Dirección General de Catastro Nacional) Time to complete: 1 day Cost to complete: UYU 263 Agency: General Cadastre Office (Dirección General de Catastro Nacional) Comment: Once the Municipal Superintendent's Office of Montevideo has granted the building permit, the interested party must submit an affidavit together with the planned construction layout and the building permit to the General Cadastre Office (Dirección General de Catastro Nacional). Unless objections are raised to the documentation, this procedure takes a day. The construction work is registered on a provisional basis until final approval is obtained. Procedure 3 Request temporary water connection from Obras Sanitarias del Estado (OSE) Time to complete: 1 day Cost to complete: UYU 8,485 Agency: Obras Sanitarias del Estado (OSE) Comment: The company must request temporary connection from the water company. Procedure 4 Receive inspection and connect to water services from OSE Time to complete: 14 days Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspection and connection take place at the same time. Procedure 5 Request and obtain building permit 21 Time to complete: 30 days Cost to complete: UYU 101,764 Agency: Municipal Superintendent's Office of Montevideo (Intendencia Municipal de Montevideo) Comment: The fee for the building permit is UYU 78 per square meter. Once approved, the construction work must commence within 270 days or the permit expires. Procedure 6 Register the new construction work for indemnity insurance Time to complete: 1 day Cost to complete: no charge Agency: Social Security Bank (Banco de Previsión Social) Comment: Payment is effected on a monthly basis after the new construction work has been registered at the Social Security Bank (Banco de Previsión Social). The approximate total amount of all payments required would be UYU 1,170,000. Also, for construction work on the scale of the one in this case, a common practice is to contract third-party insurance (extra-contractual liability insurance). Such insurance is not compulsory, but risk coverage of up to USD 250,000 is usually contracted at a cost of 0.2 % of the amount covered by the policy. BuildCo cannot begin construction without obtaining a registration code from the Social Security Bank. Procedure 7 Request and obtain a safety plan and study Time to complete: 5 days Cost to complete: UYU 3,860 Agency: Risk Preventionist Comment: The safety plan and study must be prepared and signed by a risk preventionist authorized by the Ministry of Labor and Social Security (Ministerio de Trabajo y Seguridad Social). There are only about 100 authorized preventionists. Procedure 8 Request and obtain a report on fire risk from the National Fire Department Time to complete: 90 days Cost to complete: UYU 3,235 Agency: National Fire Department (Dirección Nacional de Bomberos) / Ministry of the Interior (Ministerio del Interior) Comment: This assessment (asesoramiento primario) is done to appraise the feasibility of the project in terms of fire requirements and norms. The time for the assessment has increased substantially because of a staff shortage in the Fire Department (Dirección Nacional de Bomberos) and lack of coordination between supervising authorities. Personnel are not well qualified to handle the procedure. On average the procedure takes 90 days if all documents are submitted properly. However, that can be extended up to a year. If 20 people work in the building, 50% of them will have to be trained in fire safety. 22 However, this requirement does not apply to the case considered here. Procedure 9 Request sewage services from the Urban Sanitation Department Time to complete: 1 day Cost to complete: UYU 231 Agency: Urban Sanitation Department Comment: The services are requested while waiting for the building permit to be issued by the municipality. The documents are approved as part of the building permit application process. Hence, it takes only a day to get the clearance and pay the fee. Procedure 10 Receive inspection from the water authority - I Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspections take place at least once a month. The water authority (Obras Sanitarias del Estado, OSE) conducts the inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 11 Receive inspection from the water authority - II Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspections take place at least once a month. The OSE conducts these inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 12 Receive inspection from the water authority - III Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspections take place at least once a month. The OSE conducts these inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 13 Receive inspection from the water authority - IV Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) 23 Comment: The inspections take place at least once a month. The OSE conducts these inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 14 Receive inspection from the water authority - V Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspections take place at least once a month. The OSE conducts these inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 15 Receive inspection from the water authority - VI Time to complete: 1 day Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: The inspections take place at least once a month. The OSE conducts these inspections to determine the consumption of water, which then defines the load. There is no need to request these inspections. They do not interrupt the construction works. Procedure 16 Request a final inspection from the municipality Time to complete: 1 day Cost to complete: no charge Agency: Municipality (Intendencia Municipal de Montevideo) Comment: Procedure 17 Receive inspection from the municipality Time to complete: 1 day Cost to complete: no charge Agency: Municipality (Intendencia Municipal de Montevideo) Comment: BuildCo must wait about 2 months before the inspection takes place. Procedure 18 Obtain final approval of the construction work from the municipality Time to complete: 60 days Cost to complete: no charge 24 Agency: Municipality (Intendencia Municipal de Montevideo) Comment: Final approval is obtained a minimum of 60 days after the final inspection is requested (unless objections are raised). The actual approval is issued approximately 7 days after the inspection. Procedure 19 Receive final inspection by the Social Security Bank and obtain approval Time to complete: 4 days Cost to complete: no charge Agency: Social Security Bank (Banco de Previsión Social) Comment: This inspection is not required by law, but is almost certain to be carried out when a warehouse is built. Procedure 20 Request and receive inspection from the National Fire Department Time to complete: 87 days Cost to complete: UYU 3,235 Agency: Cadastre Office (Dirección Nacional de Catastro) Comment: Procedure 21 Register the building at the Cadastre Office Time to complete: 1 day Cost to complete: UYU 345 Agency: Cadastre Office (Dirección Nacional de Catastro) Comment: Once the final approval of the construction work has been granted, BuildCo submits the final construction layout to the Cadastre Office and pays a further fee of UYU 110. The building is officially registered within 24 hours (provided there have been no objections). Procedure 22 Register the building at the National Property (Real Estate) Registry and obtain certificate Time to complete: 5 days Cost to complete: UYU 700 Agency: Registry (Dirección Nacional de Registro (Inmueble)) Comment: Procedure 23 Request final water connection from OSE Time to complete: 1 day 25 Cost to complete: UYU 45,630 Agency: Obras Sanitarias del Estado (OSE) Comment: The company pays a security deposit of UYU 45,630. The deposit is returned when the company terminates the service. Procedure 24 Receive inspection from the OSE Time to complete: 1 day Cost to complete: no charge Agency: National Sanitary Agency (Administración Nacional de Obras Sanitarias del Estado ­ OSE) Comment: An amount of UYU 4,500 must be paid for the inspection. Typically, a temporary (3-week) water supply connection would have been previously requested. This temporary connection entails a security deposit equivalent to UYU 4,500 + the cost of one month's water consumption for every 1,000 square meters. In such cases, the final connection is obtained within a day. It is assumed that there will be no pipeline installation or similar costs because the construction work is located within the supply system network. The cost is about 5% higher. Procedure 25 Connect to final water services from OSE Time to complete: 19 days Cost to complete: no charge Agency: Obras Sanitarias del Estado (OSE) Comment: Procedure 26 Request and obtain connection of sewage services Time to complete: 15 days Cost to complete: no charge Agency: Urban Sanitation Department Comment: The connection is made at the time of the inspection. Procedure 27 Request and obtain a report from the Installing Electrician Time to complete: 3 days Cost to complete: no charge Agency: Electrician authorized by the National Thermoelectric Plant Administration (Administración Nacional de las Usinas y Transmisiones Eléctricas ­ UTE) 26 Comment: The report must be prepared by an Installing Electrician authorized by the National Thermoelectric Plant Administration (Administración Nacional de las Usinas Termoeléctricos del Estado, UTE). The cost depends on many variables and is thus difficult to calculate. Procedure 28 Request electricity connection from Usinas y Transmisiones Eléctricas (UTE) Time to complete: 1 day Cost to complete: no charge Agency: Usinas y Transmisiones Eléctricas (UTE) Comment: A security deposit must be paid in advance. For the case considered here, the deposit is calculated as follows: UYU 1,530 x 140 kW = UYU 214,200. Once any connection work has been completed, the electricity provider (Usinas y Transmisiones Eléctricas, UTE) returns the security deposit and installs a service meter to determine monthly consumption. Procedure 29 Receive inspection and connect to electricity services Time to complete: 3 days Cost to complete: UYU 1,500 Agency: Usinas y Transmisiones Eléctricas (UTE) Comment: A connection fee of UYU 1,500 must be paid at the time of actual connection for anything higher than 10 kW. Procedure 30 Request and connect to telephone services from the Telecommunications Network Administration (ANTEL) Time to complete: 5 days Cost to complete: UYU 2,805 Agency: National Telecommunications Network Administration (Administración Nacional de Telecomunicaciones del Estado ­ ANTEL) Comment: The National Telecommunications Network Administration (Administración Nacional de Telecomunicaciones del Estado, ANTEL) provides telephone service. The cost of installing telephone service is UYU 2,805 which includes UYU 1,705 as a deposit that is returned when service is terminated.) The cost does not include the phone device. The connection takes place in 48­54 hours. 27 28 1. Benchmarking Registering Property Regulations: Uruguay is ranked 159 overall for Registering Property. Ranking of Uruguay in Registering Property - Compared to good practice and selected economies: 29 The following table shows Registering Property data for Uruguay 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 Uruguay 8 66 7.1 Comparator Economies Argentina 6 52 7.0 Bolivia 7 92 4.8 Brazil 14 42 2.7 Chile 6 31 1.3 Ecuador 9 16 2.2 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 30 2. Historical data: Registering Property in Uruguay Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 165 159 Procedures (number) 8 8 9 8 Time (days) 66 66 66 66 Cost (% of property value) 7.1 7.1 7.1 7.1 3. The following graphs illustrate the Registering Property sub indicators in Uruguay over the past 4 years: 31 Registering Property in Uruguay This topic examines the steps, time, and cost involved in registering property in Uruguay. STANDARDIZED PROPERTY Property Value: 10,389,435.47 City: Montevideo Registration Requirements: No: Procedure Time to complete Cost to complete 1 * Obtain a non-encumbrance certificate from the 15 days (simultaneous UYU 3,500 "Banco de Previsión Social" with procedures 2, 3, 4, and 5) 2 * Obtain a non-encumbrance certificate at the Real 2-4 days (simultaneous UYU 627 Estate Office (Registro de la Propiedad Inmueble) with procedures 1, 3, 4, and 5) 3 * Obtain a non-encumbrance certificate at the "Registro 1 day (simultaneous UYU 627 de Actos Personales" with procedures 1, 2, 4, and 5) 4 * Obtain a non-encumbrance certificate at the 1 day (simultaneous UYU 549 Municipality with procedures 1, 2, 3, and 5) 5 * Obtain a "Cédula Catastral" at the Cadastre 1 day (simultaneous no cost with procedures 1, 2, 3, and 4) 6 The sale agreement is prepared by a notary 20 days 3% of property price (notary fees) 32 7 The notary pays the transfer tax 1 day 4% of cadastral value 8 The public deed is delivered to the Real Estate Office 30 days UYU 1258 (Stamp Duty) for its recording under the name of the buyer * Takes place simultaneously with another procedure. 33 Registering Property Details - Uruguay Procedure 1 Obtain a non-encumbrance certificate from the "Banco de Previsión Social" Time to complete: 15 days (simultaneous with procedures 2, 3, 4, and 5) Cost to complete: UYU 3,500 Agency: Social Security Institute (Banco de Previsión Social) Comment: The seller must obtain a non-encumbrance certificate at the "Banco de Previsión Social", showing that he is free of debt of any social security contributions. It is now possible to see online the status of the request. The documentation shall include: Public deed of the purchase by the previous owners for prior 30 years. Proof of payments of taxes and other services (electricity, telephone, gas, water). Procedure 2 Obtain a non-encumbrance certificate at the Real Estate Office (Registro de la Propiedad Inmueble) Time to complete: 2-4 days (simultaneous with procedures 1, 3, 4, and 5) Cost to complete: UYU 627 Agency: Real Estate Office (Registro de la Propiedad Inmueble) Comment: Obtain a non-encumbrance certificate for the past 30 years at the "Registro de la Propiedad Inmueble" (Real Estate Office), so as to check if there is any mortgage, lien or other encumbrance on the property. It is now possible to request and pay online the certifcate, but it needs to be picked up afterwards. Procedure 3 Obtain a non-encumbrance certificate at the "Registro de Actos Personales" Time to complete: 1 day (simultaneous with procedures 1, 2, 4, and 5) Cost to complete: UYU 627 Agency: Registro de Actos Personales Comment: Obtain a non-encumbrance certificate for the past 30 years at the "Registro de Actos Personales", so as to know if the prior owner or other prior owners had any encumbrance or lien. The base cost is UYU 509, plus other minor costs for forms. Procedure 4 Obtain a non-encumbrance certificate at the Municipality Time to complete: 1 day (simultaneous with procedures 1, 2, 3, and 5) Cost to complete: UYU 549 Agency: Municipality 34 Comment: Obtain a non-encumbrance certificate for the past 10 years at the Municipality. The cost is UYU 461 at the Municipality, plus another stamp of UYU 88 attached. The "Ley de Ordenamiento Territorial N° 18.308" from June 30 2008, in its article 66 states that municipalities have the priority to buy properties when transferred. Though the Resolution N° 4144/2009 dated on 28th,September 2009 of the Municipality of Montevideo, the Municipality rejects its right of pre-emption regarding to property adquisitions. Procedure 5 Obtain a "Cédula Catastral" at the Cadastre Time to complete: 1 day (simultaneous with procedures 1, 2, 3, and 4) Cost to complete: no cost Agency: Cadastre (Direccion del catastro nacional) Comment: Obtain a "cédula catastral" from the Cadastre so as to know the value of the property. Procedure 6 The sale agreement is prepared by a notary Time to complete: 20 days Cost to complete: 3% of property price (notary fees) Comment: A public notary prepares the sale agreement. The participation of a notary is mandatory. Without it, the deed will not be valid. The notary fees are regulated by the Asociación de Escribanos del Uruguay, or Uruguayan Notary Association, setting the official fees (sometimes notaries might charge less than the official rate). The seller is responsible for gathering all the documentation to be presented to the public notary. Once the sale agreement is ready it must be signed by the seller and the buyer, and the notary collects the money to pay the transfer tax (4% of the cadastral value, paid half by buyer and half by seller). The documentation shall include: Public deeds of the purchase by the previous owners for prior 30 years. Non-encumbrance certificate of the "Banco de Previsión Social" (obtained in Procedure 1),non-encumbrance certificate from Registro de la propiedad inmueble (obtained in Procedure 2), from "Registro de actos personales" ((obtained in Procedure 3), from Municipality (obtained in Procedure 4) Photocopy of the ID of seller. All tax receipts concerning the use of the property for prior one year. The plan of the survey of property and the plan of the constructions. Procedure 7 The notary pays the transfer tax Time to complete: 1 day Cost to complete: 4% of cadastral value Comment: The public notary pays the transfer tax or "Impuesto a las Trasmisiones Patrimoniales". Both the buyer and the seller will pay 2% each. The cadastral value is given by the "Cédula Catastral". As of law no. 18.064 of November 27, 2006, when transferring rural property (not in this case), the ITP has risen to 7% total. Procedure 8 The public deed is delivered to the Real Estate Office for its recording under the name of the buyer 35 Time to complete: 30 days Cost to complete: UYU 1258 (Stamp Duty) Agency: Real Estate Office (Registro de la Propiedad Inmueble) Comment: The public deed is delivered to The Real Estate Office (Registro de la Propiedad Inmueble) for its recording under the name of the buyer. After the process is over, the buyer must communicate to the Public Offices Services the change of owner (water, light, gas, telephone, etc). 36 37 1. Benchmarking Getting Credit Regulations: Uruguay is ranked 46 overall for Getting Credit. Ranking of Uruguay in Getting Credit - Compared to good practice and selected economies: 38 The following table shows Getting Credit data for Uruguay 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 Uruguay 5 6 19.4 100.0 Comparator Economies Argentina 4 6 30.8 100.0 Bolivia 1 6 11.3 31.4 Brazil 3 5 26.9 53.5 Chile 4 5 30.9 22.9 Ecuador 3 5 36.5 45.0 * 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. 39 2. Historical data: Getting Credit in Uruguay Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 44 46 Strength of legal rights index (0-10) 5 5 5 5 Depth of credit information index (0-6) 6 6 6 6 Private bureau coverage (% of adults) 93.8 98.0 97.2 100.0 Public registry coverage (% of adults) 14.1 15.4 17.8 19.4 3. The following graphs illustrate the Getting Credit sub indicators in Uruguay over the past 4 years: 40 Getting Credit in Uruguay The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Uruguay. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 6 bureau registry Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative data distributed? No Yes 1 Does the registry distribute credit information from retailers, trade Yes No 1 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? Yes Yes 1 Is data on all loans below 1% of income per capita distributed? Yes No 1 Is it guaranteed by law that borrowers can inspect their data in the Yes Yes 1 largest credit registry? Coverage 100.0 19.4 Number of individuals 2,429,420 454,458 Number of firms 173,408 45,932 41 Strength of legal rights index (0-10) 5 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 Yes and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No grantor's name of a security right ? Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? Yes Do secured creditors have absolute priority to their collateral in bankruptcy procedures? Yes During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? Yes Does the law authorize parties to agree on out of court enforcement? No 42 43 1. Benchmarking Protecting Investors Regulations: Uruguay is ranked 93 overall for Protecting Investors. Ranking of Uruguay in Protecting Investors - Compared to good practice and selected economies: 44 The following table shows Protecting Investors data for Uruguay compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Uruguay 5.0 Comparator Economies Argentina 4.7 Bolivia 4.0 Brazil 5.3 Chile 6.3 Ecuador 4.0 45 2. Historical data: Protecting Investors in Uruguay Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 92 93 Strength of investor protection index (0-10) 5.0 5.0 5.0 5.0 3. The following graph illustrates the Protecting Investors index in Uruguay compared to best practice and selected Economies: 9.7 6.3 5.3 5.0 4.7 4.0 4.0 il ay le az nd a r ia hi do gu tin Br liv a C ua ru al en Bo Ze U Ec rg A ew N Note: The higher the score, the greater the investor protection. 46 Protecting Investors in Uruguay The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Uruguay. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 3 2 What corporate body provides legally sufficient approval for the transaction? 0 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 0 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 1 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 0 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 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? 47 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) 8 4 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 2 Whether the plaintiff can directly question the defendant and witnesses during trial? 0 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 1 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 1 Whether the level of proof required for civil suits is lower than that of criminal cases? 0 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 5.0 48 49 1. Benchmarking Paying Taxes Regulations: Uruguay is ranked 155 overall for Paying Taxes. Ranking of Uruguay in Paying Taxes - Compared to good practice and selected economies: 50 The following table shows Paying Taxes data for Uruguay 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 Uruguay 53 336 42.0 Comparator Economies Argentina 9 453 108.2 Bolivia 42 1080 80.0 Brazil 10 2600 69.0 Chile 9 316 25.0 Ecuador 8 654 35.3 * The following economies are also good practice economies for : Payments (number per year): Qatar 51 2. Historical data: Paying Taxes in Uruguay Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 150 155 Total tax rate (% profit) 71.4 43.2 42.0 42.0 Payments (number per year) 53 53 53 53 Time (hours per year) 304 336 336 336 3. The following graphs illustrate the Paying Taxes sub indicators in Uruguay over the past 4 years: 52 Paying Taxes in Uruguay The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Uruguay, as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR Value added tax (VAT) 12 108 22.0% value added Property tax 1 various rates assessed value of property Advertising tax 1 various rates depending on the type of advertising Labor reconversion fund 0 paid jointly 0.1% gross salaries 0.10 contribution with another tax Vehicle tax 1 fixed fee 0.20 (UYU 12,000) Tax on real estate 1 2.0% tax value of 1.20 transfer property Workers accidents 12 0.98 - 1.24% gross salaries 1.30 insurance Capital tax 12 1.5% assessed 1.50 equity 53 Health insurance 0 paid jointly 5.0% gross salaries 5.60 contributions with another tax Social security 12 128 7.5% gross salaries 8.50 contributions Corporate income tax 1 online 100 25.0% taxable 23.60 filing income Totals 53 336 42.0 54 55 1. Benchmarking Trading Across Borders Regulations: Uruguay is ranked 132 overall for Trading Across Borders. Ranking of Uruguay in Trading Across Borders - Compared to good practice and selected economies: 56 The following table shows Trading Across Borders data for Uruguay 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 Uruguay 10 19 1100 10 22 1330 Comparator Economies Argentina 9 13 1480 7 16 1810 Bolivia 8 19 1425 7 23 1747 Brazil 8 13 1790 7 17 1730 Chile 6 21 745 7 21 795 Ecuador 9 20 1345 7 29 1332 * The following economies are also good practice economies for : Time to export (days): Estonia 57 2. Historical data: Trading Across Borders in Uruguay Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 132 132 Cost to export (US$ per container) 925 1100 1100 1100 Cost to import (US$ per container) 1180 1330 1330 1330 Documents to export (number) 10 10 10 10 Documents to import (number) 10 10 10 10 Time to export (days) 24 19 19 19 Time to import (days) 23 22 22 22 3. The following graphs illustrate the Trading Across Borders sub indicators in Uruguay over the past 4 years: 58 59 Trading Across Borders in Uruguay These tables list the procedures necessary to import and export a standardized cargo of goods in Uruguay. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 9 375 Customs clearance and technical control 2 250 Ports and terminal handling 4 300 Inland transportation and handling 4 175 Totals 19 1100 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 10 440 Customs clearance and technical control 5 250 Ports and terminal handling 4 390 Inland transportation and handling 3 250 Totals 22 1330 60 Documents for Export and Import Export Bill of lading Cargo release order Technical standard/health certificate Terminal handling receipts Certificate of origin Commercial invoice Customs export declaration Packing list Single customs document (Documento Unico Aduanero) Tax certificate Import Bill of lading Cargo release order Technical standard/health certificate Terminal handling receipts Certificate of origin Commercial invoice Customs import declaration Packing list Single customs document (Documento Unico Aduanero) Tax certificate 61 62 1. Benchmarking Enforcing Contracts Regulations: Uruguay is ranked 102 overall for Enforcing Contracts. Ranking of Uruguay in Enforcing Contracts - Compared to good practice and selected economies: 63 The following table shows Enforcing Contracts data for Uruguay 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 Uruguay 41 720 19.0 Comparator Economies Argentina 36 590 16.5 Bolivia 40 591 33.2 Brazil 45 616 16.5 Chile 36 480 28.6 Ecuador 39 588 27.2 64 2. Historical data: Enforcing Contracts in Uruguay Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 101 102 Procedures (number) 41 41 41 41 Time (days) 720 720 720 720 Cost (% of claim) 19.0 19.0 19.0 19.0 3. The following graphs illustrate the Enforcing Contracts sub indicators in Uruguay over the past 4 years: 65 Enforcing Contracts in Uruguay This topic looks at the efficiency of contract enforcement in Uruguay. Nature of Procedure (2010) Indicator Procedures (number) 41 Time (days) 720 Filing and service 75.0 Trial and judgment 420.0 Enforcement of judgment 225.0 Cost (% of claim)* 19.00 Attorney cost (% of claim) 14.0 Court cost (% of claim) 1.8 Enforcement Cost (% of claim) 3.2 66 Court information: Montevideo Justice of the Peace("Juzgado de Paz Departemental de Montevideo") (Lower Court) * Claim assumed to be equivalent to 200% of income per capita. 67 68 1. Benchmarking Closing Business Regulations: Uruguay is ranked 57 overall for Closing a Business. Ranking of Uruguay in Closing Business - Compared to good practice and selected economies: 69 The following table shows Closing Business data for Uruguay 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 Uruguay 39.7 2.1 7 Comparator Economies Argentina 32.8 2.8 12 Bolivia 39.3 1.8 15 Brazil 17.1 4.0 12 Chile 28.2 4.5 15 Ecuador 17.0 5.3 18 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 70 2. Historical data: Closing Business in Uruguay Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 46 57 Time (years) 2.1 2.1 2.1 2.1 Cost (% of estate) 7 7 7 7 Recovery rate (cents on the dollar) 44.8 43.0 43.0 39.7 3. The following graphs illustrate the Closing Business sub indicators in Uruguay over the past 4 years: 71 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. 72 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brazil Brazil eased business start-up by further enhancing the electronic synchronization between federal and state tax authorities. Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam made trading easier. Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks. Chile Chile made business start-up easier by introducing an online system for registration and for filing the request for publication. An amendment to Chile's securities law strengthened investor protections by requiring greater corporate disclosure and regulating the approval of transactions between interested parties. Ecuador Ecuador made starting a business easier by introducing an online registration system for social security. Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. 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. 73 Uruguay In Uruguay the Municipality of Montevideo made registering property easier by eliminating the need to obtain a mandatory waiver for preemption rights. 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. 74 75