Regional Profile 2017 Europe and Central Asia (ECA) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 2 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 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Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 3 CONTENTS Introduction .................................................................................................................................. 4 The business environment .......................................................................................................... 5 Starting a business ..................................................................................................................... 14 Dealing with construction permits ........................................................................................... 54 Getting electricity ..................................................................................................................... 101 Registering property ................................................................................................................ 142 Getting credit ............................................................................................................................ 194 Protecting minority investors ................................................................................................. 238 Paying taxes .............................................................................................................................. 285 Trading across borders ............................................................................................................ 337 Enforcing contracts .................................................................................................................. 393 Resolving insolvency ................................................................................................................ 436 Distance to frontier and ease of doing business ranking .................................................... 477 Resources on the Doing Business website ............................................................................ 480 Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 4 INTRODUCTION Doing Business sheds light on how easy or difficult it is also provides data for other selected economies for a local entrepreneur to open and run a small to (comparator economies) for each indicator. The data in medium-size business when complying with relevant this report are current as of June 1, 2016 (except for the regulations. It measures and tracks changes in paying taxes indicators, which cover the period January– regulations affecting 11 areas in the life cycle of a December 2015). business: starting a business, dealing with construction The Doing Business methodology has limitations. Other permits, getting electricity, registering property, getting areas important to business—such as an economy’s credit, protecting minority investors, paying taxes, proximity to large markets, the quality of its trading across borders, enforcing contracts, resolving infrastructure services (other than those related to insolvency and labor market regulation. Doing Business trading across borders and getting electricity), the 2017 presents the data for the labor market regulation security of property from theft and looting, the indicators in an annex. The report does not present transparency of government procurement, rankings of economies on labor market regulation macroeconomic conditions or the underlying strength of indicators or include the topic in the aggregate distance institutions—are not directly studied by Doing Business. to frontier score or ranking on the ease of doing The indicators refer to a specific type of business, business. generally a local limited liability company operating in In a series of annual reports Doing Business presents the largest business city. Because standard assumptions quantitative indicators on business regulations and the are used in the data collection, comparisons and protection of property rights that can be compared benchmarks are valid across economies. The data not across 190 economies, from Afghanistan to Zimbabwe, only highlight the extent of obstacles to doing business; over time. The data set covers 48 economies in Sub- they also help identify the source of those obstacles, Saharan Africa, 32 in Latin America and the Caribbean, 25 supporting policy makers in designing regulatory reform. in East Asia and the Pacific, 25 in Eastern Europe and More information is available in the full report. Doing Central Asia, 20 in the Middle East and North Africa and Business 2017 presents the indicators, analyzes their 8 in South Asia, as well as 32 OECD high-income relationship with economic outcomes and presents economies. The indicators are used to analyze economic business regulatory reforms. The data, along with outcomes and identify what reforms have worked, where information on ordering Doing Business 2017, are and why. available on the Doing Business website at This economy profile presents the Doing Business http://www.doingbusiness.org. indicators for Afghanistan. To allow useful comparison, it Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 5 THE BUSINESS ENVIRONMENT CHANGES IN DOING BUSINESS 2017 As part of a three-year update in methodology, Doing Business 2017 expands further by adding postfiling processes to the paying taxes indicator, including a gender component in three of the indicators and developing a new pilot indicator on selling to the government. Also, for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. The paying taxes indicator is expanded this year to include postfiling processes – those processes that occur after a firm complies with its regular tax obligations. These include tax refunds, tax audits and tax appeals. In particular, Doing Business measures the time it takes to get a value added tax (VAT) refund, deal with a simple mistake on a corporate tax return that can potentially trigger an audit and good practices with administrative appeals process. This year’s Doing Business report presents a gender dimension in four of the indicator sets: starting a business, registering property, enforcing contracts and labor market regulation. Three of these areas are included in the distance to frontier score and in the ease of doing business ranking, while the fourth—labor market regulation—is not. Doing Business has traditionally assumed that the entrepreneurs or workers discussed in the case studies were men. This was incomplete by not reflecting correctly the Doing Business processes as applied to women—which in some economies may be different from the processes applied to men. Starting this year, Doing Business measures the starting a business process for two case scenarios: one where all entrepreneurs are men and one where all entrepreneurs are women. In economies where the processes are more onerous if the entrepreneur is a woman, Doing Business now counts the extra procedures applied to roughly half of the population that is female (for example, obtaining a husband’s consent or gender-specific requirements for opening a personal bank account when starting a business). Within the registering property indicators, a gender component has been added to the quality of land administration index. This component measures women’s ability to use, own, and transfer property accordin g to the law. Finally, within the enforcing contracts indicator set, economies will be scored on having equal evidentiary weight of women’s testimony in court. Also for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. For more details on the changes, see the “”Old and new factors covered in Doing Business” section in the Overview chapter starting on page 1 of the Doing Business 2017 report. For more details on the data and methodology, please see the “Data Notes” chapter starting on page 114 of the Doing Business 2017 report. For more details on the distance to frontier metric, please see the “Distance to frontier and ease of doing business ranking” chapter in this profile. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 6 THE BUSINESS ENVIRONMENT For policy makers trying to improve their economy’s permits, getting electricity, registering property, regulatory environment for business, a good place to getting credit, protecting minority investors, paying start is to find out how it compares with the regulatory taxes, trading across borders, enforcing contracts environment in other economies. Doing Business and resolving insolvency. The labor market provides an aggregate ranking on the ease of doing regulation indicators are not included in this year’s business based on indicator sets that measure and aggregate ease of doing business ranking, but the benchmark regulations applying to domestic small to data are presented in the economy profile. medium-size businesses through their life cycle. The ease of doing business ranking compares Economies are ranked from 1 to 190 by the ease of economies with one another; the distance to frontier doing business ranking. Doing Business presents results score benchmarks economies with respect to for 2 aggregate measures: the distance to frontier score regulatory best practice, showing the absolute and the ease of doing business ranking. The ranking of distance to the best performance on each Doing economies is determined by sorting the aggregate Business indicator. When compared across years, the distance to frontier scores, rounded to two decimals. An distance to frontier score shows how much the economy’s distance to frontier score is indicated on a regulatory environment for local entrepreneurs in an scale from 0 to 100, where 0 represents the worst economy has changed over time in absolute terms, performance and 100 the frontier. (See the chapter on while the ease of doing business ranking can show the distance to frontier and ease of doing business). only how much the regulatory environment has The 10 topics included in the ranking in Doing Business changed relative to that in other economies. 2017: starting a business, dealing with construction Figure 1.1 Where economies stand in the global ranking on the ease of doing business Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 7 THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy stands in regional average (figure 1.2). Another perspective is the aggregate ranking on the ease of doing business is provided by the regional average rankings on the topics useful. Also useful is to know how it ranks compared with included in the ease of doing business ranking (figure 1.3) other economies in the region and compared with the and the distance to frontier scores (figures 1.4 and 1.5). Figure 1.2 How economies in Europe and Central Asia (ECA) rank on the ease of doing business Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population- weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 8 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - Europe and Central Asia (ECA) (Scale: Rank 190 center, Rank 1 outer edge) Regional average ranking Source: Doing Business database. Figure 1.4 Distance to frontier scores on Doing Business topics - Europe and Central Asia (ECA) (Scale: Score 0 center, Score 100 outer edge) Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 9 Figure 1.5 How far has Europe and Central Asia (ECA) come in the areas measured by Doing Business? Source: Doing Business database. Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator. Starting a business is comparable to 2010. Getting credit, protecting minority investors, paying taxes and resolving insolvency had methodology changes in 2014 and thus are only comparable to 2013. Dealing with construction permits, registering property, trading across borders, enforcing contracts and getting electricity had methodology changes in 2015 and thus are only comparable to 2014. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the frontier). See the data notes starting on page 114 of the Doing Business 2017 report for more details on the distance to frontier score. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 10 THE BUSINESS ENVIRONMENT Just as the overall ranking on the ease of doing business The absolute values of the indicators tell another part of tells only part of the story, so do changes in that ranking. the story (table 1.1). Policy makers can learn much by Yearly movements in rankings can provide some comparing the indicators for their economy with those indication of changes in an economy’s regulatory for the lowest- and highest-scoring economies in the environment for firms, but they are always relative. An region as well as those for the best performers globally. economy’s ranking might change because of These comparisons may reveal unexpected strengths in developments in other economies. An economy that an area of business regulation—such as a regulatory implemented business regulation reforms may fail to rise process that can be completed with a small number of in the rankings (or may even drop) if it is passed by procedures in a few days and at a low cost. others whose business regulation reforms had a more significant impact as measured by Doing Business. Table 1.1 Summary of Doing Business indicators for Europe and Central Asia (ECA) Lowest regional Best regional Best global Indicator Regional average performance performance performance Starting a Business 174 (Bosnia and 4 (Macedonia, FYR) 47.60 1 (New Zealand) (rank) Herzegovina) Starting a Business 65.09 (Bosnia and 98.14 (Macedonia, FYR) 90.92 99.96 (New Zealand) (DTF Score) Herzegovina) Procedure – Men 12.0 (Bosnia and 2.0 (Macedonia, FYR) 4.9 1.0 (New Zealand) (number) Herzegovina) 65.0 (Bosnia and Time – Men (days) 2.0 (Macedonia, FYR) 10.2 0.5 (New Zealand) Herzegovina) Cost – Men (% of 16.8 (Tajikistan) 0.1 (Macedonia, FYR) 4.7 0.0 (Slovenia) income per capita) Procedure – Women 12.0 (Bosnia and 2.0 (Azerbaijan) 4.9 1.0 (New Zealand) (number) Herzegovina) 65.0 (Bosnia and Time – Women (days) 2.0 (Macedonia, FYR) 10.2 0.5 (New Zealand) Herzegovina) Cost – Women (% of 16.8 (Tajikistan) 0.1 (Macedonia, FYR) 4.7 0.0 (Slovenia) income per capita) Paid-in min. capital (% 29.4 (San Marino) 0.0 (Tajikistan) 4.0 0.0 (127 Economies*) of income per capita) Dealing with 170 (Bosnia and Construction Permits 8 (Georgia) 87.24 1 (New Zealand) Herzegovina) (rank) Dealing with 52.54 (Bosnia and Construction Permits 82.84 (Georgia) 69.07 87.40 (New Zealand) Herzegovina) (DTF Score) Procedures (number) 27.0 (Moldova) 7.0 (Georgia) 15.1 7.0 (4 Economies*) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 11 Lowest regional Best regional Best global Indicator Regional average performance performance performance Time (days) 507.0 (Cyprus) 48.0 (Georgia) 160.7 28.0 (Korea, Rep.) Cost (% of warehouse 18.5 (Bosnia and 0.1 (Trinidad and 0.2 (Georgia) 4.2 value) Herzegovina) Tobago) Building quality control 7.0 (Georgia) 13.0 (Romania) 11.3 15.0 (Luxembourg*) index (0-15) Getting Electricity 173 (Tajikistan) 11 (San Marino) 87.48 1 (Korea, Rep.) (rank) Getting Electricity 35.21 (Tajikistan) 90.63 (San Marino) 69.02 99.88 (Korea, Rep.) (DTF Score) Procedures (number) 9.0 (Tajikistan) 3.0 (Macedonia, FYR) 5.6 3.0 (15 Economies*) Time (days) 281.0 (Ukraine) 36.0 (Kosovo) 112.3 18.0 (Korea, Rep.*) Cost (% of income per 44.1 (Russian 1,232.5 (Uzbekistan) 375.5 0.0 (Japan) capita) Federation) Reliability of supply and transparency of 0.0 (Tajikistan) 8.0 (Uzbekistan) 5.2 8.0 (26 Economies*) tariff index (0-8) Registering Property 106 (Albania) 2 (Lithuania) 47.32 1 (New Zealand) (rank) Registering Property 58.77 (Albania) 92.93 (Lithuania) 75.92 94.46 (New Zealand) (DTF Score) Procedures (number) 9.0 (San Marino) 1.0 (Georgia) 5.3 1.0 (4 Economies*) Time (days) 69.0 (Montenegro) 1.0 (Georgia) 20.6 1.0 (3 Economies*) Cost (% of property 10.4 (Cyprus) 0.0 (Georgia) 2.5 0.0 (Saudi Arabia) value) Quality of the land administration index 7.5 (Tajikistan) 28.5 (Lithuania) 19.8 29.0 (Singapore) (0-30) Getting Credit (rank) 181 (San Marino) 7 (Latvia) 50.56 1 (New Zealand) Getting Credit (DTF 5.00 (San Marino) 85.00 (Latvia) 64.00 100.00 (New Zealand) Score) Strength of legal rights 1.0 (Tajikistan) 12.0 (Montenegro) 6.4 12.0 (3 Economies*) index (0-12) Depth of credit 0.0 (San Marino) 8.0 (Armenia) 6.4 8.0 (30 Economies*) information index (0-8) Credit registry 0.0 (Serbia) 84.9 (Latvia) 23.0 100.0 (3 Economies*) coverage (% of adults) Credit bureau coverage 0.0 (Montenegro) 100.0 (Serbia) 40.3 100.0 (23 Economies*) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 12 Lowest regional Best regional Best global Indicator Regional average performance performance performance (% of adults) Protecting Minority 162 (San Marino) 3 (Kazakhstan) 45.04 1 (New Zealand*) Investors (rank) Protecting Minority 36.67 (San Marino) 80.00 (Kazakhstan) 63.53 83.33 (New Zealand*) Investors (DTF Score) Strength of minority investor protection 3.7 (San Marino) 8.0 (Kazakhstan) 6.4 8.3 (New Zealand*) index (0-10) Extent of conflict of interest regulation 4.3 (San Marino) 8.0 (Kazakhstan) 6.2 9.3 (New Zealand*) index (0-10) Extent of shareholder governance index (0- 3.0 (San Marino) 8.0 (Bulgaria) 6.5 8.3 (Norway) 10) Paying Taxes (rank) 142 (Kyrgyz Republic) 8 (Macedonia, FYR) 68.48 1 (United Arab Emirates) Paying Taxes (DTF 99.44 (United Arab 62.94 (Kyrgyz Republic) 94.17 (Macedonia, FYR) 76.62 Score) Emirates) Payments (number per 3.0 (Hong Kong SAR, 51.0 (Kyrgyz Republic) 5.0 (Georgia) 17.6 year) China*) Time (hours per year) 453.0 (Bulgaria) 52.0 (San Marino) 221.5 55.0 (Luxembourg) Total tax rate (% of 22.6 (Bosnia and 65.2 (Tajikistan) 33.8 26.1 (32 Economies*) profit) Herzegovina) Postfiling index (0-100) 71.9 98.5 (Estonia) Trading across 165 (Uzbekistan) 1 (Croatia) 56.68 1 (10 Economies*) Borders (rank) Trading across 44.31 (Uzbekistan) 100.00 (Croatia) 84.04 100.00 (10 Economies*) Borders (DTF Score) Time to export: Border 133 (Kazakhstan) 0 (Croatia) 28 0 (18 Economies*) compliance (hours) Cost to export: Border 765 (Russian Federation) 0 (Croatia) 195 0 (18 Economies*) compliance (USD) Time to export: Documentary 174 (Uzbekistan) 1 (Croatia) 27 1 (25 Economies*) compliance (hours) Cost to export: Documentary 330 (Tajikistan) 0 (Croatia) 111 0 (19 Economies*) compliance (USD) Time to import: Border 111 (Uzbekistan) 0 (Lithuania) 26 0 (25 Economies*) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 13 Lowest regional Best regional Best global Indicator Regional average performance performance performance compliance (hours) Cost to import: Border 1,125 (Russian 0 (Croatia) 202 0 (28 Economies*) compliance (USD) Federation) Time to import: Documentary 174 (Uzbekistan) 1 (Bulgaria) 26 1 (29 Economies*) compliance (hours) Cost to import: Documentary 292 (Uzbekistan) 0 (Belarus) 91 0 (30 Economies*) compliance (USD) Enforcing Contracts 141 (Kyrgyz Republic) 6 (Lithuania) 49.40 1 (Korea, Rep.) (rank) Enforcing Contracts 48.57 (Kyrgyz Republic) 77.88 (Lithuania) 65.72 84.15 (Korea, Rep.) (DTF Score) Time (days) 1,100.0 (Cyprus) 225.0 (Uzbekistan) 485.9 164.0 (Singapore) Cost (% of claim) 47.0 (Kyrgyz Republic) 13.9 (San Marino) 26.6 9.0 (Iceland) Quality of judicial 4.0 (Kyrgyz Republic) 15.0 (Croatia) 10.3 15.5 (Australia) processes index (0-18) Resolving Insolvency 163 (Kosovo) 16 (Cyprus) 74.68 1 (Finland) (rank) Resolving Insolvency 20.88 (Kosovo) 81.38 (Cyprus) 51.65 93.89 (Finland) (DTF Score) Recovery rate (cents on 7.5 (Ukraine) 72.8 (Cyprus) 38.2 92.9 (Norway) the dollar) Time (years) 4.5 (Turkey) 1.4 (Montenegro) 2.2 0.4 (22 Economies*) Cost (% of estate) 42.0 (Ukraine) 5.0 (San Marino) 13.1 1.0 (22 Economies*) Strength of insolvency 0.0 (Kosovo) 15.0 (Macedonia, FYR) 9.9 15.0 (6 Economies*) framework index (0-16) * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org). Note: The global best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB2017 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and VAT or sales tax. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 14 STARTING A BUSINESS WHAT THE STARTING A BUSINESS Formal registration of companies has many INDICATORS MEASURE immediate benefits for the companies and for business owners and employees. Legal entities can Procedures to legally start and operate a outlive their founders. Resources are pooled as company (number) several shareholders join forces to start a company. Formally registered companies have access to Preregistration (for example, name services and institutions from courts to banks as well verification or reservation, notarization) as to new markets. And their employees can benefit Registration in the economy’s largest from protections provided by the law. An additional business city1 benefit comes with limited liability companies. These Postregistration (for example, social security limit the financial liability of company owners to their registration, company seal) investments, so personal assets of the owners are not put at risk. Where governments make registration Obtaining approval from spouse to start a easy, more entrepreneurs start businesses in the business, to leave the home to register the formal sector, creating more good jobs and company or open a bank account. generating more revenue for the government. Obtaining any gender specific document for company registration and operation, national What do the indicators cover? identification card or opening a bank Doing Business measures the ease of starting a account. business in an economy by recording all procedures Time required to complete each procedure officially required or commonly done in practice by (calendar days) an entrepreneur to start up and formally operate an industrial or commercial business—as well as the Does not include time spent gathering time and cost required to complete these procedures. information It also records the paid-in minimum capital that Each procedure starts on a separate day (2 companies must deposit before registration (or procedures cannot start on the same day). within 3 months). The ranking of economies on the Procedures that can be fully completed ease of starting a business is determined by sorting online are recorded as ½ day. their distance to frontier scores for starting a Procedure completed once final document is business. These scores are the simple average of the received distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure Doing Business uses several assumptions about the (% of income per capita) business and the procedures. It assumes that all Official costs only, no bribes information is readily available to the entrepreneur and that there has been no prior contact with No professional fees unless services required officials. It also assumes that the entrepreneur will by law pay no bribes. And it assumes that the business: Paid-in minimum capital (% of income  Is a limited liability company (or its legal per capita) equivalent). If there is more than one type Deposited in a bank or with a notary before of limited liability company in the registration (or within 3 months) economy, the limited liability form most common among domestic firms is chosen. Has at least 10 and up to 50 employees one Information on the most common form is month after the commencement of operations, all obtained from incorporation lawyers or the of them domestic nationals.. statistical office.  Has a turnover of at least 100 times income per Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 15  Operates in the economy’s largest business capita.Has a company deed 10 pages long. city. For 11 economies the data are also collected for the second largest business The owners: city.  Have reached the legal age of majority and are  The size of the entire office space is capable of making decisions as an adult. If there approximately 929 square meters (10,000 is no legal age of majority, they are assumed to square feet). be 30 years old.  Does not qualify for investment incentives  Are sane, competent, in good health and have no or any special benefits. criminal record. .  Are married, the marriage is monogamous and registered with the authorities.  Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 16 STARTING A BUSINESS Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Europe business suggest an answer (figure 2.1). The average and Central Asia (ECA) to start a business? The global ranking of the region and comparator regions provide a rankings of these economies on the ease of starting a useful benchmark. Figure 2.1 How economies in Europe and Central Asia (ECA) rank on the ease of starting a business Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 17 STARTING A BUSINESS The indicators underlying the rankings may be more and the paid-in minimum capital requirement (figure revealing. Data collected by Doing Business show what 2.2). Comparing these indicators across the region and it takes to start a business in each economy in the with averages both for the region and for comparator region: the number of procedures, the time, the cost regions can provide useful insights. Figure 2.2 What it takes to start a business in economies in Europe and Central Asia (ECA) Procedures (number) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 18 STARTING A BUSINESS Time (days) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 19 STARTING A BUSINESS Cost (% of income per capita) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 20 STARTING A BUSINESS Paid-in minimum capital (% of income per capita) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 21 STARTING A BUSINESS What are the changes over time? Economies around the world have taken steps making it often as part of a larger regulatory reform program. easier to start a business—streamlining procedures by Among the benefits have been greater firm satisfaction setting up a one-stop shop, making procedures simpler and savings and more registered businesses, financial or faster by introducing technology, and reducing or resources and job opportunities. eliminating minimum capital requirements. Many have What business registration reforms has Doing Business undertaken business registration reforms in stages—and recorded in Europe and Central Asia (ECA) (table 2.1)? Table 2.1 How have economies in Europe and Central Asia (ECA) made starting a business easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 22 DB year Economy Reform Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. DB2017 Croatia Croatia made paying taxes more complicated by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 23 DB year Economy Reform a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 24 DB year Economy Reform Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 25 DB year Economy Reform Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 26 DB year Economy Reform Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 27 DB year Economy Reform Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 28 DB year Economy Reform Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. DB2016 Latvia Latvia made dealing with construction permits more time- Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 29 DB year Economy Reform consuming by increasing the time required to obtain a building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 30 DB year Economy Reform Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 31 DB year Economy Reform Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 32 DB year Economy Reform Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 33 DB year Economy Reform Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 34 DB year Economy Reform Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 35 DB year Economy Reform Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 36 DB year Economy Reform Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 37 DB year Economy Reform Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for DB2014 Tajikistan companies by reducing the corporate income tax rate, merging the minimal income tax with the corporate income Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 38 DB year Economy Reform tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 39 DB year Economy Reform Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 40 DB year Economy Reform and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the DB2014 Belarus appointment process for insolvency administrators and encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 41 DB year Economy Reform insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 42 DB year Economy Reform Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 43 DB year Economy Reform Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 44 DB year Economy Reform Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 45 DB year Economy Reform Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 46 DB year Economy Reform Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 47 DB year Economy Reform Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 48 DB year Economy Reform Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 49 DB year Economy Reform Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 50 DB year Economy Reform Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 51 DB year Economy Reform Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 52 DB year Economy Reform Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. DB2011 Montenegro Montenegro’s customs administration simplified trade by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 53 DB year Economy Reform eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 54 DEALING WITH CONSTRUCTION PERMITS Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION public. But it needs to be efficient, to avoid excessive PERMITS INDICATORS MEASURE constraints on a sector that plays an important part in every economy. Where complying with building regulations is excessively costly in time and money, Procedures to legally build a warehouse (number) many builders opt out. They may pay bribes to pass inspections or simply build illegally, leading to Submitting all relevant documents and hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses, Where compliance is simple, straightforward and permits and certificates inexpensive, everyone is better off. Submitting all required notifications and receiving all necessary inspections What do the indicators cover? Obtaining utility connections for water and Doing Business records all procedures required for a sewerage business in the construction industry to build a warehouse along with the time and cost to complete Registering and selling the warehouse after its each procedure. In addition, this year Doing Business completion introduces a new measure, the building quality Time required to complete each procedure control index, evaluating the quality of building (calendar days) regulations, the strength of quality control and safety Does not include time spent gathering mechanisms, liability and insurance regimes, and information professional certification requirements. Each procedure starts on a separate day. The ranking of economies on the ease of dealing with Procedures that can be fully completed online construction permits is determined by sorting their are recorded as ½ day distance to frontier scores for dealing with construction permits. These scores are the simple Procedure considered completed once final document is received average of the distance to frontier scores for each of the component indicators. No prior contact with officials To make the data comparable across economies, Cost required to complete each procedure (% several assumptions about the construction of warehouse value) company, the warehouse project and the utility Official costs only, no bribes connections are used. Assumptions about the construction company Building quality control index (0-15) Sum of the scores of six component indices: The construction company (BuildCo): Quality of building regulations (0-2)  Is a limited liability company (or its legal equivalent). Quality control before construction (0-1)  Operates in the economy’s largest business Quality control during construction (0-3) city. For 11 economies the data are also Quality control after construction (0-3) collected for the second largest business city. Liability and insurance regimes (0-2)  Is 100% domestically and privately owned Professional certifications (0-4)  Has five owners, none of whom is a legal entity..   Is fully licensed and insured to carry out  construction projects, such as building  Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 55 warehouses.   The construction company (BuildCo) (continued):  Will be a new construction (there was no previous construction on the land), with no trees, natural  Has 60 builders and other employees, all of them water sources, natural reserves or historical nationals with the technical expertise and monuments of any kind on the plot. professional experience necessary to obtain construction permits and approvals.  Will have complete architectural and technical plans prepared by a licensed architect. If preparation of  Has a licensed architect and a licensed engineer, the plans requires such steps as obtaining further bothregistered with the local association of documentation or getting prior approvals from architects or engineers. BuildCo is not assumed external agencies, these are counted as procedures. to have any other employees who are technical or licensed experts, such as geological or  Will include all technical equipment required to be topographical experts. fully operational.  Has paid all taxes and taken out all necessary  Will take 30 weeks to construct (excluding all delays insurance applicable to its general business due to administrative and regulatory requirements). activity (for example, accidental insurance for  Assumptions about the utility connections construction workers and third-person liability).  The water and sewerage connections:  Owns the land on which the warehouse will be • Will be 150 meters (492 feet) from the existing built and will sell the warehouse upon its water source and sewer tap. If there is no water completion. delivery infrastructure in the economy, a borehole  Is valued at 50 times income per capita. will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be  Assumptions about the warehouse installed or built.  The warehouse:  Will not require water for fire protection reasons; a  Will be used for general storage activities, such fire extinguishing system (dry system) will be used as storage of books or stationery. The warehouse instead. If a wet fire protection system is required will not be used for any goods requiring special by law, it is assumed that the water demand conditions, such as food, chemicals or specified below also covers the water needed for pharmaceuticals. fire protection.  Will have two stories, both above ground, with a  Will have an average water use of 662 liters (175 total constructed area of approximately 1,300.6 gallons) a day and an average wastewater flow of square meters (14,000 square feet). Each floor will 568 liters (150 gallons) a day. Will have a peak be 3 meters (9 feet, 10 inches) high. water use of 1,325 liters (350 gallons) a day and a  Will have road access and be located in the peak wastewater flow of 1,136 liters (300 gallons) a day. periurban area of the economy’s largest business city (that is, on the fringes of the city but still  Will have a constant level of water demand and within its official limits). For 11 economies the wastewater flow throughout the year. data are also collected for the second largest  Will be 1 inch in diameter for the water connection business city. and 4 inches in diameter for the sewerage  • Will not be located in a special economic or connection. industrial zone. Will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo and is accurately registered in the cadastre and land registry. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 56 DEALING WITH CONSTRUCTION PERMITS Where do the region’s economies stand today? How easy it is for entrepreneurs in economies in Europe dealing with construction permits suggest an answer and Central Asia (ECA) to legally build a warehouse? The (figure 3.1). The average ranking of the region and global rankings of these economies on the ease of comparator regions provide a useful benchmark. Figure 3.1 How economies in Europe and Central Asia (ECA) rank on the ease of dealing with construction permits Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 57 DEALING WITH CONSTRUCTION PERMITS The indicators underlying the rankings may be more the time and the cost (figure 3.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to comply with formalities to build a warehouse in the region and for comparator regions can provide each economy in the region: the number of procedures, useful insights. Figure 3.2 What it takes to comply with formalities to build a warehouse in economies in Europe and Central Asia (ECA) Procedures (number) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 58 DEALING WITH CONSTRUCTION PERMITS Time (days) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 59 DEALING WITH CONSTRUCTION PERMITS Cost (% of warehouse value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 60 DEALING WITH CONSTRUCTION PERMITS Building Quality Control Index (0-15) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the econom y at the bottom of the ranking on the relevant indicator. Note: The index ranges from 0 to 15, with higher values indicating better quality control and safety mechanisms in the construction permitting system. The indicator is based on the same case study assumptions as the measures of efficiency. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 61 DEALING WITH CONSTRUCTION PERMITS What are the changes over time? Smart regulation ensures that standards are met while compliance costs reasonable, governments around the making compliance easy and accessible to all. Coherent world have worked on consolidating permitting and transparent rules, efficient processes and adequate requirements. What construction permitting reforms has allocation of resources are especially important in sectors Doing Business recorded in Europe and Central Asia where safety is at stake. Construction is one of them. In (ECA) (table 3.1)? an effort to ensure building safety while keeping Table 3.1 How have economies in Europe and Central Asia (ECA) made dealing with construction permits easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 62 DB year Economy Reform Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle DB2017 Azerbaijan tax for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving DB2017 Belarus the transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for DB2017 Bosnia and Herzegovina limited liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus DB2017 Croatia Croatia strengthened minority investor protections by requiring detailed internal disclosure of conflicts of interest Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 63 DB year Economy Reform by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 64 DB year Economy Reform Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign DB2017 Kazakhstan supply contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 65 DB year Economy Reform FYR Macedonia made resolving insolvency easier by changing voting procedures for the reorganization plans and DB2017 Macedonia, FYR allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting DB2017 Kyrgyz Republic by becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 66 DB year Economy Reform Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the DB2017 Russian Federation initial phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by DB2017 Tajikistan requiring that companies with annual revenue of more than SM 500,000 register as a VAT payer Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 67 DB year Economy Reform Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic DB2017 Turkey invoicing and electronic bookkeeping. At the same time, however, Turkey also increased the rate of transaction tax Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 68 DB year Economy Reform applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On DB2016 Serbia the other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of DB2016 Romania bankruptcy made) and for the implementation of the reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 69 DB year Economy Reform payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different DB2016 Uzbekistan nonencumbrance certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the DB2016 Russian Federation time required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. DB2016 San Marino San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 70 DB year Economy Reform and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to DB2016 Lithuania perform the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. DB2016 Kazakhstan Kazakhstan made enforcing contracts easier by introducing a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 71 DB year Economy Reform simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt DB2016 Latvia provisions. On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections DB2016 Macedonia, FYR by providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 72 DB year Economy Reform The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a DB2016 Latvia new application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 73 DB year Economy Reform Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a DB2016 Cyprus fast-track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate DB2016 Cyprus the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social DB2016 Cyprus insurance paid by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, DB2016 Croatia published in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime DB2016 Belarus pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 74 DB year Economy Reform - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more DB2016 Albania difficult by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the DB2016 Albania time for border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for DB2016 Armenia approval of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. DB2015 Azerbaijan Azerbaijan made paying taxes easier for companies by introducing an electronic system for filing and paying social Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 75 DB year Economy Reform insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow intangible assets to be secured with a nonpossessory DB2015 Albania pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 76 DB year Economy Reform Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. DB2015 Macedonia, FYR The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 77 DB year Economy Reform auctions of debtors’ assets, streamlining and tightening the time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding DB2015 Kazakhstan the rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 78 DB year Economy Reform Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in DB2015 Uzbekistan their annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering DB2015 San Marino the property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 79 DB year Economy Reform The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by DB2015 Tajikistan beginning to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. DB2014 Moldova Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 80 DB year Economy Reform appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by DB2014 Russian Federation eliminating several requirements for project approvals from government agencies and by reducing the time required to Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 81 DB year Economy Reform register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing DB2014 Uzbekistan an electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new DB2014 Ukraine rehabilitation procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 82 DB year Economy Reform Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing DB2014 Uzbekistan the notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by DB2014 Tajikistan requiring preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with DB2014 Uzbekistan customs, tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. DB2014 Ukraine Ukraine made trading across borders easier by releasing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 83 DB year Economy Reform customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. DB2014 Macedonia, FYR FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 84 DB year Economy Reform related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by DB2014 Kazakhstan introducing a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. DB2014 Croatia Croatia made starting a business easier by introducing a new Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 85 DB year Economy Reform form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined procedures relating to the issuance of building DB2014 Azerbaijan permits and established official time limits for some procedures. DB2014 Armenia Armenia made paying taxes easier by merging the employee and employer social contributions and individual income tax Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 86 DB year Economy Reform into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 87 DB year Economy Reform Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by DB2013 Macedonia, FYR simplifying the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating DB2013 Kazakhstan the requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 88 DB year Economy Reform Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency- related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency administrators, changing requirements for DB2013 Kazakhstan bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 89 DB year Economy Reform Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a DB2013 Uzbekistan single window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 90 DB year Economy Reform Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing DB2013 Ukraine electronic filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 91 DB year Economy Reform Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 92 DB year Economy Reform Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing DB2012 Russian Federation an electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 93 DB year Economy Reform Lithuania made getting electricity more difficult by DB2012 Lithuania abolishing the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying DB2012 Georgia the reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by DB2012 Macedonia, FYR reducing notary fees and enforcing time limits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 94 DB year Economy Reform Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the DB2012 Latvia tax status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. DB2012 Cyprus Cyprus strengthened investor protections by requiring Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 95 DB year Economy Reform greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, DB2012 Belarus value added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the DB2012 Armenia processing time for bankruptcy proceedings and regulate asset sales by auction. DB2012 Armenia Armenia made tax compliance easier for firms by reducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 96 DB year Economy Reform the number of payments for social security contributions and corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 97 DB year Economy Reform Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. DB2011 Montenegro Montenegro eliminated several procedures for business start-up by introducing a single registration form for Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 98 DB year Economy Reform submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing DB2011 Ukraine the minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and DB2011 Kazakhstan eliminating the need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 99 DB year Economy Reform FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining DB2011 Georgia the regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement DB2011 Latvia of insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. DB2011 Moldova Moldova reduced employer contribution rates for social Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 100 DB year Economy Reform security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 101 GETTING ELECTRICITY Access to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITY for businesses. To counter weak electricity supply, many firms in developing economies have to rely on INDICATORS MEASURE self-supply, often at a prohibitively high cost. Whether electricity is reliably available or not, the Procedures to obtain an electricity connection first step for a customer is always to gain access by (number) obtaining a connection. Submitting all relevant documents and What do the indicators cover? obtaining all necessary clearances and permits Doing Business records all procedures required for a Completing all required notifications and local business to obtain a permanent electricity receiving all necessary inspections connection and supply for a standardized Obtaining external installation works and warehouse, as well as the time and cost to complete possibly purchasing material for these works them. These procedures include applications and Concluding any necessary supply contract and contracts with electricity utilities, clearances from obtaining final supply other agencies and the external and final connection works. In addition, this year Doing Business adds Time required to complete each procedure two new measures: the reliability of supply and (calendar days) transparency of tariffs index (included in the Is at least 1 calendar day aggregate distance to frontier score and ranking on Each procedure starts on a separate day the ease of doing business) and the price of electricity (omitted from these aggregate measures). Does not include time spent gathering The ranking of economies on the ease of getting information electricity is determined by sorting their distance to Reflects the time spent in practice, with little frontier scores for getting electricity. These scores follow-up and no prior contact with officials are the simple average of the distance to frontier Cost required to complete each procedure (% scores for each of the component indicators. To of income per capita) make the data comparable across economies, several assumptions are used. Official costs only, no bribes Assumptions about the warehouse Excludes value added tax The reliability of supply and transparency of The warehouse: tariffs index  Is owned by a local entrepreneur. Sum of the scores of six component indices:  Is located in the economy’s largest business city. Duration and frequency of outages For 11 economies the data are also collected for the second largest business city. Tools to monitor power outages  Is located in an area where similar warehouses Tools to restore power supply are typically located. In this area a new Regulatory monitoring of utilities’ performance electricity connection is not eligible for a special Financial deterrents aimed at limiting outages investment promotion regime (offering special subsidization or faster service, for example). Transparency and accessibility of tariffs  It is located in an area with no physical Price of electricity (cents per kilowatt-hour)* constraints. For example, the property is not Price based on monthly bill for commercial near a railway. warehouse in case study  Is a new construction and is being connected to *Price of electricity is not included in the calculation of electricity for the first time. distance to frontier nor ease of doing business ranking Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 102 The warehouse (continued):   Has two stories, both above ground, with a Assumptions about the monthly consumption total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot  It is assumed that the warehouse operates 30 of land on which it is built is 929 square days a month from 9:00 a.m. to 5:00 p.m. (8 meters (10,000 square feet). hours a day), with equipment utilized at 80% of capacity on average and that there are no  Is used for storage of goods. electricity cuts (assumed for simplicity reasons).  The monthly energy consumption is 26,880 kilowatt- Assumptions about the electricity connection hours (kWh); hourly consumption is 112 kWh. The electricity connection:  If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.  Is a permanent one.  Tariffs effective in March of the current year are  Is a three-phase, four-wire Y connection used for calculation of the price of electricity for with a subscribed capacity of 140-kilo-volt- the warehouse. Although March has 31 days, for ampere (kVA) with a power factor of 1, calculation purposes only 30 days are used. when 1 kVA = 1 kilowatt (kW   Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located.Requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.  Includes only a negligible length in the customer’s private domain.  Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 103 GETTING ELECTRICITY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Europe 4.1). The average ranking of the region and comparator and Central Asia (ECA) to connect a warehouse to regions provide a useful benchmark. electricity? The global rankings of these economies on the ease of getting electricity suggest an answer (figure Figure 4.1 How economies in Europe and Central Asia (ECA) rank on the ease of getting electricity Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 104 GETTING ELECTRICITY The indicators underlying the rankings may be more time and the cost (figure 4.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to get a new electricity connection in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 4.2 What it takes to get an electricity connection in economies in Europe and Central Asia (ECA) Procedures (number) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 105 GETTING ELECTRICITY Time (days) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 106 GETTING ELECTRICITY Cost (% of income per capita) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 107 GETTING ELECTRICITY Reliability of supply and transparency of tariff index (0-8) Source: Doing Business database. Note: The index ranges from 0 to 8, with higher values indicating greater reliability of electricity supply and greater transparency of tariffs. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 108 GETTING ELECTRICITY What are the changes over time? Obtaining an electricity connection is essential to enable ensure safety in the connection process while keeping a business to conduct its most basic operations. In many connection costs reasonable, governments around the economies the connection process is complicated by the world have worked to consolidate requirements for multiple laws and regulations involved—covering service obtaining an electricity connection. What reforms in quality, general safety, technical standards, procurement getting electricity has Doing Business recorded in Europe practices and internal wiring installations. In an effort to and Central Asia (ECA) (table 4.1)? Table 4.1 How have economies in Europe and Central Asia (ECA) made getting electricity easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 109 DB year Economy Reform In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 110 DB year Economy Reform the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to DB2017 Kazakhstan fulfill utility technical requirements and to sign supply contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 111 DB year Economy Reform average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance DB2017 Georgia faster by improving its electronic document processing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 112 DB year Economy Reform system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 113 DB year Economy Reform Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a DB2017 Moldova requirement to submit social security documents in hard copy. However, Moldova also made paying taxes more costly Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 114 DB year Economy Reform by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 115 DB year Economy Reform Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 116 DB year Economy Reform The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections DB2016 Kazakhstan through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 117 DB year Economy Reform financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 118 DB year Economy Reform Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 119 DB year Economy Reform per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. DB2015 Armenia Armenia made starting a business easier by streamlining Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 120 DB year Economy Reform postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 121 DB year Economy Reform Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 122 DB year Economy Reform Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 123 DB year Economy Reform San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing DB2014 Moldova new restructuring mechanisms, reducing opportunities for Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 124 DB year Economy Reform appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. DB2014 Montenegro Montenegro made dealing with construction permits easier Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 125 DB year Economy Reform by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the DB2014 Uzbekistan paid-in minimum capital requirement and by eliminating the requirement to have signature samples notarized before Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 126 DB year Economy Reform opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits DB2014 Macedonia, FYR easier by reducing the time required to register a new Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 127 DB year Economy Reform building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 128 DB year Economy Reform Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 129 DB year Economy Reform Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 130 DB year Economy Reform Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 131 DB year Economy Reform Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 132 DB year Economy Reform network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 133 DB year Economy Reform Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. DB2012 Russian Federation Russia made registering property transfers easier by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 134 DB year Economy Reform eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and DB2012 Lithuania shorten reorganization proceedings, grant priority to secured Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 135 DB year Economy Reform creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 136 DB year Economy Reform Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 137 DB year Economy Reform Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 138 DB year Economy Reform A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 139 DB year Economy Reform Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 140 DB year Economy Reform Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 141 DB year Economy Reform Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 142 REGISTERING PROPERTY Ensuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTY Effective administration of land is part of that. If INDICATORS MEASURE formal property transfer is too costly or complicated, formal titles might go informal again. And where property is informal or poorly Procedures to legally transfer title on administered, it has little chance of being accepted immovable property (number) as collateral for loans—limiting access to finance. Preregistration (for example, checking for liens, notarizing sales agreement, paying property What do the indicators cover? transfer taxes) Doing Business records the full sequence of Registration in the economy’s largest business procedures necessary for a business to purchase city2 property from another business and transfer the property title to the buyer’s name. The transaction is Postregistration (for example, filing title with the municipality) considered complete when it is opposable to third parties and when the buyer can use the property, Time required to complete each procedure use it as collateral for a bank loan or resell it. In (calendar days) addition, this year Doing Business adds a new Does not include time spent gathering measure to the set of registering property information indicators, an index of the quality of the land administration system in each economy. The Each procedure starts on a separate day. ranking of economies on the ease of registering Procedures that can be fully completed online are recorded as ½ day. property is determined by sorting their distance to frontier scores for registering property. These scores Procedure considered completed once final are the simple average of the distance to frontier document is received scores for each of the component indicators. To No prior contact with officials make the data comparable across economies, several assumptions about the parties to the Cost required to complete each procedure transaction, the property and the procedures are (% of property value) used. Official costs only, no bribes The parties (buyer and seller): No value added or capital gains taxes included  Are limited liability companies (or the legal Quality of land administration index (0-30) equivalent).1.  Is located in a periurban commercial zone, and no  Are located in the periurban area of the rezoning is required. economy’s largest business city. For 11 economies the data are also collected for the  Has no mortgages attached, has been under the second largest business city same ownership for the past 10 years.  Are 100% domestically and privately owned  Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-story  Have 50 employees each, all of whom are warehouse of 929 square meters (10,000 square feet) nationals is located on the land. The warehouse is 10 years old,  Perform general commercial activities. is in good condition and complies with all safety standards, building codes and other legal requirements. It has no heating system. The property of land and building will be transferred in its entirety 1 For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 143 The property (fully owned by the seller):  Will not be subject to renovations or additional building following the purchase.  Has a value of 50 times income per capita. The sale price equals the value and entire property  Has no trees, natural water sources, natural reserves will be transferred. or historical monuments of any kind.  Is fully owned by the seller  Will not be used for special purposes, and no special permits, such as for residential use, industrial plants,  Is registered in the land registry or cada-stre, or waste storage or certain types of agricultural both, and is free of title disputes. activities, are required.  Has no occupants, and no other party holds a legal interest in it.  . Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 144 REGISTERING PROPERTY Where do the region’s economies stand today? How easy is it for entrepreneurs in economies in Europe property suggest an answer (figure 5.1). The average and Central Asia (ECA) to transfer property? The global ranking of the region and comparator regions provide a rankings of these economies on the ease of registering useful benchmark. Figure 5.1 How economies in Europe and Central Asia (ECA) rank on the ease of registering property Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 145 REGISTERING PROPERTY The indicators underlying the rankings may be more time and the cost (figure 5.2). Comparing these revealing. Data collected by Doing Business show what indicators across the region and with averages both for it takes to complete a property transfer in each the region and for comparator regions can provide economy in the region: the number of procedures, the useful insights. Figure 5.2 What it takes to register property in economies in Europe and Central Asia (ECA) Procedures (number) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 146 REGISTERING PROPERTY Time (days) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 147 REGISTERING PROPERTY Cost (% of property value) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 148 REGISTERING PROPERTY Quality of Land Administration Index (0-30) * Indicates a “no practice” mark. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: The index ranges from 0 to 30, with higher values indicating better quality of the land administration system. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 149 REGISTERING PROPERTY What are the changes over time? Economies worldwide have been making it easier for buyers to use or mortgage their property earlier. What entrepreneurs to register and transfer property—such as property registration reforms has Doing Business by computerizing land registries, introducing time limits recorded in Europe and Central Asia (ECA) (table 5.1)? for procedures and setting low fixed fees. Many have cut the time required substantially—enabling Table 5.1 How have economies in Europe and Central Asia (ECA) made registering property easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new DB2017 Azerbaijan electricity connection by introducing an electronic capacity/availability of connection map, which reduced the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 150 DB year Economy Reform time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week DB2017 Cyprus Cyprus made access to credit information more difficult by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 151 DB year Economy Reform stopping the distribution of historical credit data. Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the DB2017 Kazakhstan wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 152 DB year Economy Reform redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by DB2017 Kazakhstan introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing shareholder rights and role in major corporate decisions, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 153 DB year Economy Reform clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 154 DB year Economy Reform The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial DB2017 Russian Federation resolution before filing a claim, thereby lengthening the initial phase of judicial proceedings. This reform applies to both Moscow and St. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 155 DB year Economy Reform Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. DB2017 Montenegro Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 156 DB year Economy Reform easier by providing an electronic system for filing and paying VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 157 DB year Economy Reform Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by DB2016 Russian Federation excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 158 DB year Economy Reform calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging DB2016 San Marino the use of the online system for obtaining the operator code and business license as well eliminating the requirement for Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 159 DB year Economy Reform the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 160 DB year Economy Reform Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual DB2016 Kazakhstan financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 161 DB year Economy Reform from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- DB2016 Latvia term contract from 36 months to 60. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 162 DB year Economy Reform 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. DB2016 Croatia 2) In accordance with the Minimal Wage Act, Art. 1, published in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 163 DB year Economy Reform Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by DB2016 Armenia exempting lower-risk projects from requirements for approval of the architectural drawings by an independent expert and Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 164 DB year Economy Reform for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by DB2015 Albania resuming the issuance of construction permits and by consolidating the land permit and construction permit into a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 165 DB year Economy Reform single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies DB2015 Croatia by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing more detailed filing requirements for VAT. On the other hand, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 166 DB year Economy Reform it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. DB2015 Kazakhstan Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 167 DB year Economy Reform introducing the concept of creditors’ meetings, expanding the rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. DB2015 Kazakhstan Kazakhstan made trading across borders easier by opening a new border station and railway link that helped reduce Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 168 DB year Economy Reform congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. DB2015 Russian Federation The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 169 DB year Economy Reform tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. DB2014 Turkey Turkey made getting electricity easier by eliminating external Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 170 DB year Economy Reform inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. DB2014 Tajikistan Tajikistan improved access to credit information by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 171 DB year Economy Reform establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. DB2014 Romania Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 172 DB year Economy Reform tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. DB2014 Tajikistan Tajikistan made starting a business more difficult by requiring Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 173 DB year Economy Reform preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 174 DB year Economy Reform Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. DB2014 Macedonia, FYR FYR Macedonia made property registration faster and less costly by digitizing the real estate cadastre and eliminating Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 175 DB year Economy Reform the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 176 DB year Economy Reform Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 177 DB year Economy Reform Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 178 DB year Economy Reform Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 179 DB year Economy Reform DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers DB2013 Kazakhstan of and improving qualification requirements for insolvency administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 180 DB year Economy Reform requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 181 DB year Economy Reform Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 182 DB year Economy Reform Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. DB2012 Russian Federation Russia made trading across borders easier by reducing the number of documents needed for each export or import Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 183 DB year Economy Reform transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. DB2012 Ukraine Ukraine amended legislation to streamline commercial dispute resolution and increase the efficiency of enforcement Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 184 DB year Economy Reform procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. DB2012 Lithuania Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 185 DB year Economy Reform creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 186 DB year Economy Reform Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. DB2012 Cyprus Cyprus strengthened investor protections by requiring Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 187 DB year Economy Reform greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. DB2012 Armenia Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 188 DB year Economy Reform time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. DB2011 Azerbaijan Azerbaijan improved access to credit by establishing an online platform allowing financial institutions to provide Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 189 DB year Economy Reform information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 190 DB year Economy Reform Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 191 DB year Economy Reform Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. DB2011 Latvia Latvia introduced a mechanism for out-of-court settlement of insolvencies to alleviate pressure on courts and tightened Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 192 DB year Economy Reform some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 193 DB year Economy Reform Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 194 GETTING CREDIT Two types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORS credit and improve its allocation: credit information MEASURE systems and borrowers and lenders in collateral and bankruptcy laws. Credit information systems enable lenders’ rights to view a potential borrower’s financial Strength of legal rights index (0–12) history (positive or negative)—valuable information to Rights of borrowers and lenders through consider when assessing risk. And they permit collateral laws borrowers to establish a good credit history that will Protection of secured creditors’ rights through allow easier access to credit. Sound collateral laws bankruptcy laws enable businesses to use their assets, especially movable property, as security to generate capital— Depth of credit information index (0–8) while strong creditors’ rights have been associated Scope and accessibility of credit information with higher ratios of private sector credit to GDP. distributed by credit bureaus and credit registries What do the indicators cover? Credit bureau coverage (% of adults) Doing Business assesses the sharing of credit information and the legal rights of borrowers and Number of individuals and firms listed in largest lenders with respect to secured transactions through credit bureau as percentage of adult population 2 sets of indicators. The depth of credit information Credit registry coverage (% of adults) index measures rules and practices affecting the coverage, scope and accessibility of credit Number of individuals and firms listed in credit registry as percentage of adult population information available through a credit registry or a credit bureau. The strength of legal rights index measures whether certain features that facilitate lending exist within the applicable collateral and bankruptcy laws. Doing Business uses two case scenarios, Case A and Case B, to determine the scope of the secured transactions system, involving a  Has up to 50 employees. secured borrower and a secured lender and  Is 100% domestically owned, as is the lender. examining legal restrictions on the use of movable  The ranking of economies on the ease of getting collateral (for more details on each case, see the Data credit is determined by sorting their distance to Notes section of the Doing Business 2017 report). frontier scores for getting credit. These scores are These scenarios assume that the borrower: the distance to frontier score for the strength of  Is a private limited liability company. legal rights index and the depth of credit  Has its headquarters and only base of operations information index. in the largest business city. For the 11 economies with a population of more than 100 million, data for a second city have been added. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 195 GETTING CREDIT Where do the region’s economies stand today? How well do the credit information systems and getting credit suggest an answer (figure 6.1). The collateral and bankruptcy laws in economies in Europe average ranking of the region and comparator regions and Central Asia (ECA) facilitate access to credit? The provide a useful benchmark. global rankings of these economies on the ease of Figure 6.1 How economies in Europe and Central Asia (ECA) rank on the ease of getting credit Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 196 GETTING CREDIT Another way to assess how well regulations and the strength of legal rights index for Europe and Central institutions support lending and borrowing in the region Asia (ECA) and comparators on the strength of legal is to see where the region stands in the distribution of rights index. Figure 6.3 shows the same thing for the scores across regions. Figure 6.2 highlights the score on depth of credit information index. Figure 6.2 How strong are legal rights for borrowers and lenders? Region scores on strength of legal rights index Note: Higher scores indicate that collateral and bankruptcy laws are better designed to facilitate access to credit. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 197 Figure 6.3 How much credit information is shared—and how widely? Region scores on depth of credit information index Note: Higher scores indicate the availability of more credit information, from either a credit registry or a credit bureau, to facilitate lending decisions. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 198 GETTING CREDIT What are the changes over time? When economies strengthen the legal rights of lenders information, they can increase entrepreneurs’ access to and borrowers under collateral and bankruptcy laws, and credit. What credit reforms has Doing Business recorded increase the scope, coverage and accessibility of credit in Europe and Central Asia (ECA) (table 6.1)? Table 6.1 How have economies in Europe and Central Asia (ECA) made getting credit easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 199 DB year Economy Reform Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 200 DB year Economy Reform Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. DB2017 Lithuania Lithuania made getting electricity faster by introducing time limits on the utility to conduct necessary connection Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 201 DB year Economy Reform procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. DB2017 Kazakhstan Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 202 DB year Economy Reform protections to creditors who vote against such plans. Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 203 DB year Economy Reform Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 204 DB year Economy Reform Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 205 DB year Economy Reform Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax DB2016 Russian Federation base—though it also raised the wage ceiling used in calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 206 DB year Economy Reform land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 207 DB year Economy Reform Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 208 DB year Economy Reform Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 209 DB year Economy Reform The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 210 DB year Economy Reform Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 211 DB year Economy Reform Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 212 DB year Economy Reform Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 213 DB year Economy Reform Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and DB2015 Kazakhstan simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 214 DB year Economy Reform rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 215 DB year Economy Reform Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 216 DB year Economy Reform Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. DB2014 Moldova Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 217 DB year Economy Reform value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by DB2014 Ukraine introducing a risk-based approval system, eliminating requirements for certain approvals and technical conditions and simplifying the process for registering real estate Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 218 DB year Economy Reform ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 219 DB year Economy Reform Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 220 DB year Economy Reform FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. DB2014 Kazakhstan Kazakhstan made it easier to transfer property by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 221 DB year Economy Reform a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. DB2014 Croatia Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 222 DB year Economy Reform Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 223 DB year Economy Reform Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 224 DB year Economy Reform Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 225 DB year Economy Reform Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. DB2013 Uzbekistan Uzbekistan reduced the time to export by introducing a single window for customs clearance and reduced the number of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 226 DB year Economy Reform documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 227 DB year Economy Reform Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 228 DB year Economy Reform Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. DB2012 Russian Federation Russia made registering property transfers easier by eliminating the requirement to obtain cadastral passports on Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 229 DB year Economy Reform land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 230 DB year Economy Reform Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 231 DB year Economy Reform Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 232 DB year Economy Reform Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 233 DB year Economy Reform Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration DB2011 Armenia desks at customs houses and warehouses, investing in new equipment to improve border operations and introducing a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 234 DB year Economy Reform risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 235 DB year Economy Reform Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 236 DB year Economy Reform DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 237 DB year Economy Reform Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 238 PROTECTING MINORITY INVESTORS Protecting minority investors matters for the ability of WHAT THE PROTECTING MINORITY INVESTORS companies to raise the capital they need to grow, INDICATORS MEASURE innovate, diversify and compete. Effective regulations define related-party transactions precisely, promote clear and efficient disclosure requirements, require Extent of disclosure index (0–10) shareholder participation in major decisions of the Review and approval requirements for related-party company and set detailed standards of accountability transactions ; Disclosure requirements for related-party for company insiders. transactions What do the indicators cover? Extent of director liability index (0–10) Doing Business measures the protection of minority Ability of minority shareholders to sue and hold interested investors from conflicts of interest through one set of directors liable for prejudicial related-party transactions; indicators and shareholders’ rights in corporate Available legal remedies (damages, disgorgement of profits, governance through another. The ranking of economies fines, imprisonment, rescission of the transaction) on the strength of minority investor protections is determined by sorting their distance to frontier scores Ease of shareholder suits index (0–10) for protecting minority investors. These scores are the Access to internal corporate documents; Evidence simple average of the distance to frontier scores for the obtainable during trial and allocation of legal expenses extent of conflict of interest regulation index and the Extent of conflict of interest regulation index extent of shareholder governance index. To make the (0–10) data comparable across economies, a case study uses Simple average of the extent of disclosure, extent of director several assumptions about the business and the liability and ease of shareholder indices transaction. Extent of shareholder rights index (0-10) The business (Buyer): Shareholders’ rights and role in major corporate decisions  Is a publicly traded corporation listed on the economy’s most important stock exchange. If Extent of ownership and control index (0-10) the number of publicly traded companies listed Governance safeguards protecting shareholders from undue on that exchange is less than 10, or if there is board control and entrenchment no stock exchange in the economy, it is Extent of corporate transparency index (0-10) assumed that Buyer is a large private company with multiple shareholders. Corporate transparency on ownership stakes, compensation,  Has a board of directors and a chief executive audits and financial prospects officer (CEO) who may legally act on behalf of Extent of shareholder governance index (0– Buyer where permitted, even if this is not 10) specifically required by law. Simple average of the extent of shareholders rights, extent  Has a supervisory board (applicable to of ownership and control and extent of corporate economies with a two-tier board system) on transparency indices which 60% of the shareholder-elected Strength of investor protection index (0–10) members have been appointed by Mr. James, who is Buyer’s controlling shareholder and a Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices member of Buyer’s board of directors.  Has not adopted any bylaws or articles of association that differ from default minimum  standards and does not follow any nonmandatory codes, principles, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 239 recommendations or guidelines relating to corporate governance.  Is a manufacturing company with its own distribution network The transaction involves the following details:  Mr. James owns 60% of Buyer and elected two directors to Buyer’s five-member board.  Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.  Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.  The proposed transaction is part of the company’s ordinary course of business and is not outside the authority of the company.  Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made (that is, the transaction is not fraudulent).  The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. . Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 240 PROTECTING MINORITY INVESTORS Where do the region’s economies stand today? How strong are investor protections against self-dealing to the protection of minority investors, a higher ranking in economies in Europe and Central Asia (ECA)? The does indicate that an economy’s regulations offer global rankings of these economies on the strength of stronger investor protections against self-dealing in the investor protection index suggest an answer (figure 7.1). areas measured. While the indicator does not measure all aspects related Figure 7.1 How economies in Europe and Central Asia (ECA) rank on the strength of investor protection index Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 241 PROTECTING MINORITY INVESTORS The strength of minority investor protection index is the highlight the scores on the various minority investor average of the extent of conflict of interest regulation protection indices for Europe and Central Asia (ECA). index and the extent of shareholder governance index. Comparing the scores across the region and with The index ranges from 0 to 10, rounded to the nearest averages both for the region and for comparator regions decimal place, with higher values indicating stronger can provide useful insights. minority investor protections. Figures 7.2 and 7.3 Figure 7.2 How extensive are conflict of interest regulations? Extent of conflict of interest regulation index (0-10) Note: Higher values indicate stronger regulation of conflicts of interest. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 242 Figure 7.3 How extensive is shareholder governance? Extent of shareholder governance index (0-10) Note: Higher scores indicate stronger rights of shareholders in corporate governance. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 243 PROTECTING MINORITY INVESTORS What are the changes over time? Economies with the strongest protections of minority reforms to strengthen minority investor protections may investors from self-dealing require detailed disclosure move ahead on different fronts—such as through new or and define clear duties for directors. They also have well- amended company laws, securities regulations or functioning courts and up-to-date procedural rules that revisions to court procedures. What minority investor give minority shareholders the means to prove their case protection reforms has Doing Business recorded in and obtain a judgment within a reasonable time. So Europe and Central Asia (ECA) (table 7.1)? Table 7.1 How have economies in Europe and Central Asia (ECA) strengthened minority investor protections—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. DB2017 Azerbaijan Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 244 DB year Economy Reform capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by DB2017 Cyprus stopping the distribution of historical credit data. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 245 DB year Economy Reform Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 246 DB year Economy Reform The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by DB2017 Georgia increasing shareholder rights and role in major corporate decisions and by clarifying ownership and control structures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 247 DB year Economy Reform FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 248 DB year Economy Reform Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 249 DB year Economy Reform Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. DB2017 Moldova Moldova made enforcing contracts easier by adopting a new mediation law establishing financial incentives for the parties Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 250 DB year Economy Reform to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 251 DB year Economy Reform Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 252 DB year Economy Reform Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 253 DB year Economy Reform The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 254 DB year Economy Reform Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 255 DB year Economy Reform 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating DB2016 Cyprus online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 256 DB year Economy Reform by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 257 DB year Economy Reform Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 258 DB year Economy Reform Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 259 DB year Economy Reform Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 260 DB year Economy Reform Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. DB2015 Kazakhstan Kazakhstan made trading across borders easier by opening a new border station and railway link that helped reduce Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 261 DB year Economy Reform congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by DB2015 Russian Federation eliminating the requirement for notarization and introducing tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 262 DB year Economy Reform The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with DB2014 Turkey construction permits by setting strict time limits for granting a lot plan and by reducing the documentation requirements Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 263 DB year Economy Reform for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 264 DB year Economy Reform Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. DB2014 Ukraine Ukraine made paying taxes easier for companies by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 265 DB year Economy Reform simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 266 DB year Economy Reform Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. DB2014 Kosovo Kosovo made dealing with construction permits easier by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 267 DB year Economy Reform eliminating the requirement for validation of the main construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. DB2014 Kazakhstan Kazakhstan made starting a business easier by reducing the time it takes to register a company at the Public Registration Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 268 DB year Economy Reform Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. DB2014 Bosnia and Herzegovina Bosnia and Herzegovina introduced a penalty for failure to Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 269 DB year Economy Reform employ the required minimum number of people with disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 270 DB year Economy Reform Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest DB2013 Cyprus income and introducing a private sector special contribution and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 271 DB year Economy Reform electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 272 DB year Economy Reform Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 273 DB year Economy Reform Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 274 DB year Economy Reform Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 275 DB year Economy Reform Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. DB2012 Moldova Moldova improved its credit information system by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 276 DB year Economy Reform establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. DB2012 Latvia Latvia adopted a new insolvency law that streamlines and expedites the insolvency process and introduces a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 277 DB year Economy Reform reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing DB2012 Latvia electronic access to municipal tax databases that show the tax status of property, eliminating the requirement to obtain this Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 278 DB year Economy Reform information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. DB2012 Cyprus Cyprus strengthened investor protections by requiring greater corporate disclosure to the board of directors, to the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 279 DB year Economy Reform public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 280 DB year Economy Reform Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 281 DB year Economy Reform Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 282 DB year Economy Reform Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 283 DB year Economy Reform Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. DB2011 Kazakhstan Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 284 DB year Economy Reform system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 285 DB year Economy Reform Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. WHAT THE PAYING TAXES INDICATORS PAYING TAXES Taxes are essential. The level of tax rates needs to MEASURE be carefully chosen—and needless complexity in tax rules avoided. Firms in economies that rank Tax payments for a manufacturing company better on the ease of paying taxes in the Doing in 2014 (number per year adjusted for Business study tend to perceive both tax rates and electronic and joint filing and payment) tax administration as less of an obstacle to Total number of taxes and contributions paid, business according to the World Bank Enterprise including consumption taxes (value added tax, Survey research. sales tax or goods and service tax) Method and frequency of filing and payment What do the indicators cover? Time required to comply with 3 major taxes Using a case scenario, Doing Business records the (hours per year) taxes and mandatory contributions that a medium- size company must pay in a given year as well as Collecting information and computing the tax measures of the administrative burden of paying payable taxes and contributions and dealing with postfiling Completing tax return forms, filing with processes. This case scenario uses a set of financial proper agencies statements and assumptions about transactions Arranging payment or withholding made over the year. Information is also compiled on the frequency of filing and payments, time taken to Preparing separate tax accounting books, if comply with tax laws, time taken to comply with the required requirements of postfiling processes and time Total tax rate (% of profit before all taxes) waiting for these processes to be completed. The ranking of economies on the ease of paying taxes is Profit or corporate income tax determined by sorting their distance to frontier Social contributions and labor taxes paid by scores on the ease of paying taxes. These scores are the employer the simple average of the distance to frontier scores Property and property transfer taxes for each of the four component indicators – number of tax payments. time, total tax rate and postfiling Dividend, capital gains and financial index – with a threshold and a nonlinear transactions taxes transformation applied to one of the component Waste collection, vehicle, road and other taxes indicators, the total tax rate2. If both VAT (or GST) Postfiling Index and corporate income tax apply, the postfiling index is the simple average of the distance to frontier sores The time to comply with a VAT or GST refund for each of the four components: the time to comply The time to receive a VAT or GST refund with a VAT or GST refund, the time to obtain a VAT The time to comply with a corporate income 2 The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 286 or GST refund, the time to comply with a corporate income tax audit and the time to complete a tax audit corporate income tax audit. If only VAT (or GST) or The time to complete a corporate income corporate income applies, the postfiling index is the tax audit simple average of the scores for only the two components pertaining to the applicable tax. If neither VAT (or GST) nor corporate income tax applies, the postfiling index is not included in the ranking of the ease of paying taxes.  Taxes and mandatory contributions include corporate income tax, turnover tax and all labor taxes and contributions paid by the company. A range of standard deductions and exemptions are also recorded. All financial statement variables are proportional to 2012 income per capita. To make the data comparable across economies, several assumptions are used.  TaxpayerCo is a medium-size business that started operations on January 1, 2014.  The business starts from the same financial position in each economy. All the taxes and mandatory contributions paid during the second year of operation are recorded.  Taxes and mandatory contributions are measured at all levels of government. Assumptions about the VAT refund process:   In June 2015, TaxpayerCo. makes a large capital  purchase: one additional machine for  manufacturing pots.  The value of the machine is 65 times income per Assumptions about the corporate income tax capita of the economy. audit process:  Sales are equally spread per month (that is,  An error in the calculation of the income tax liability 1,050 times income per capita divided by 12). (for example, use of incorrect tax depreciation rates,  Cost of goods sold are equally expensed per or incorrectly treating an expense as tax deductible) month (that is, 875 times income per capita leads to an incorrect income tax return and divided by 12). consequently an underpayment of corporate  The seller of the machinery is registered for VAT income tax. or general sales tax (GST).  TaxpayerCo. discovered the error and voluntarily  Excess input VAT incurred in June will be fully notified the tax authority of the error in the recovered after four consecutive months if the corporate income tax return. VAT or GST rate is the same for inputs, sales and the machine and the tax reporting period is  every month.    Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 287  Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 288 PAYING TAXES Where do the region’s economies stand today? What is the administrative burden of complying with offer useful information for assessing the tax compliance taxes in economies in Europe and Central Asia (ECA)— burden for businesses (figure 8.1). The average ranking and how much do firms pay in taxes? The global of the region provides a useful benchmark. rankings of these economies on the ease of paying taxes Figure 8.1 How economies in Europe and Central Asia (ECA) rank on the ease of paying taxes Note: All economies with a total tax rate below the threshold of 26.1% applied in DB2015, receive the same distance to frontier score for the total tax rate (a distance to frontier score of 100 for the total tax rate) for the purpose of calculating the ranking on the ease of paying taxes. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 289 PAYING TAXES The indicators underlying the rankings may be more major taxes (corporate income tax, VAT or sales tax and revealing. Data collected by Doing Business show what it labor taxes and mandatory contributions)—as well as the takes to comply with tax regulations in each economy in total tax rate (figure 8.2). Comparing these indicators the region—the number of payments per year and the across the region and with averages both for the region time required to prepare, and file and pay taxes the 3 and for comparator regions can provide useful insights. Figure 8.2 How easy is it to pay taxes in economies in Europe and Central Asia (ECA)—and what are the total tax rates? Payments (number per year) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 290 PAYING TAXES Time (hours per year) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 291 PAYING TAXES Total tax rate (% of profit) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 292 PAYING TAXES Postfiling Index (DTF) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 293 PAYING TAXES What are the changes over time? Economies around the world have made paying taxes concrete results. Some economies simplifying faster and easier for businesses—such as by compliance with tax obligations and reducing rates have consolidating filings, reducing the frequency of seen tax revenue rise. What tax reforms has Doing payments or offering electronic filing and payment. Business recorded in Europe and Central Asia (ECA) (table Many have lowered tax rates. Changes have brought 8.1)? Table 8.1 How have economies in Europe and Central Asia (ECA) made paying taxes easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new DB2017 Azerbaijan electricity connection by introducing an electronic capacity/availability of connection map, which reduced the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 294 DB year Economy Reform time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by DB2017 Cyprus stopping the distribution of historical credit data. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 295 DB year Economy Reform Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 296 DB year Economy Reform The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by DB2017 Georgia increasing shareholder rights and role in major corporate decisions and by clarifying ownership and control structures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 297 DB year Economy Reform FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. DB2017 Georgia Georgia made export and import documentary compliance faster by improving its electronic document processing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 298 DB year Economy Reform system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial resolution before filing a claim, thereby lengthening the initial DB2017 Russian Federation phase of judicial proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by DB2017 Ukraine requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party transactions undergo external review, by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 299 DB year Economy Reform remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. DB2017 Uzbekistan Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 300 DB year Economy Reform corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. DB2016 Russian Federation Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 301 DB year Economy Reform meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by DB2016 Serbia introducing an electronic system for filing and paying VAT and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 302 DB year Economy Reform property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. DB2016 Russian Federation Russia improved access to credit by adopting a new law on Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 303 DB year Economy Reform secured transactions that established a centralized collateral registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing DB2016 Kazakhstan creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 304 DB year Economy Reform also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 305 DB year Economy Reform The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 306 DB year Economy Reform Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime DB2016 Belarus pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 307 DB year Economy Reform - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 308 DB year Economy Reform Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying DB2015 Belarus contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 309 DB year Economy Reform provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. DB2015 Kazakhstan Kazakhstan made enforcing contracts easier by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 310 DB year Economy Reform an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 311 DB year Economy Reform Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by DB2015 Uzbekistan introducing a requirement for public joint stock companies to disclose information about related-party transactions in their Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 312 DB year Economy Reform annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by DB2015 Moldova introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the minimum salary used for calculating the environmental tax Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 313 DB year Economy Reform liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. DB2014 Turkey Turkey made starting a business more difficult by increasing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 314 DB year Economy Reform the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 315 DB year Economy Reform Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 316 DB year Economy Reform Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system DB2014 Macedonia, FYR by providing more flexibility on the description of assets in a collateral agreement and on the types of debts and Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 317 DB year Economy Reform obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. DB2014 Kazakhstan Kazakhstan made it easier to transfer property by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 318 DB year Economy Reform a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. DB2014 Croatia Croatia made starting a business easier by introducing a new form of limited liability company with a lower minimum Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 319 DB year Economy Reform capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 320 DB year Economy Reform Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. DB2013 Bosnia and Herzegovina Bosnia and Herzegovina made it easier to transfer property between companies by computerizing the commercial Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 321 DB year Economy Reform registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 322 DB year Economy Reform Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, DB2013 Kazakhstan extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency administrators, changing requirements for bankruptcy filings, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 323 DB year Economy Reform extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. DB2013 Georgia Georgia made getting electricity easier by simplifying the process of connecting new customers to the distribution Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 324 DB year Economy Reform network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured DB2013 Romania transactions by allowing the automatic extension of security interests to the products, proceeds and replacement of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 325 DB year Economy Reform collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. DB2012 Russian Federation Russia made trading across borders easier by reducing the number of documents needed for each export or import Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 326 DB year Economy Reform transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 327 DB year Economy Reform Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 328 DB year Economy Reform FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. DB2012 Latvia Latvia made starting a business easier by reducing the minimum capital requirement and introducing a common Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 329 DB year Economy Reform application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 330 DB year Economy Reform Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 331 DB year Economy Reform Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 332 DB year Economy Reform Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 333 DB year Economy Reform DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 334 DB year Economy Reform Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 335 DB year Economy Reform Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 336 DB year Economy Reform Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 337 TRADING ACROSS BORDERS In today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERS economies easier is increasingly important for INDICATORS MEASURE FOR IMPORT & EXPORT business. Excessive document requirements, burdensome customs procedures, inefficient port Documentary compliance – cost (US$) & time operations and inadequate infrastructure all lead to (hours) extra costs and delays for exporters and importers, stifling trade potential. Obtain, prepare and submit documents: What do the indicators cover? -During transport, clearance, inspections and port or border handling in origin economy Doing Business records the time and cost associated with the logistical process of exporting and -Required by origin, transit and destination economies importing goods. Under the new methodology introduced this year, Doing Business measures the Covers all documents by law and in practice time and cost (excluding tariffs) associated with three Border compliance – cost (US$) & time sets of procedures—documentary compliance, (hours) border compliance and domestic transport—within the overall process of exporting or importing a Customs clearance and inspections shipment of goods. The ranking of economies on the Inspections by other agencies ease of trading across borders is determined by Port or border handling sorting their distance to frontier scores for trading across borders. These scores are the simple average Obtaining, preparing and submitting of the distance to frontier scores for the time and documents during clearance, inspections and port or border handling cost for documentary compliance and border compliance to export and import. Domestic transport* Loading and unloading of shipment To make the data comparable across economies, a few assumptions are made about the traded goods Transport between warehouse and terminal/port and the transactions: Transport between terminal/port and border Time Obtaining, preparing and submitting  Time is measured in hours, and 1 day is 24 hours documents during domestic transport (for example, 22 days are recorded as 22 × 24 = Traffic delays and road police checks while 528 hours). If customs clearance takes 7.5 hours, shipment is en route the data are recorded as is. Alternatively, suppose that documents are submitted to a * Although Doing Business collects and publishes data on customs agency at 8:00 a.m., are processed the time and cost for domestic transport, it does not use overnight and can be picked up at 8:00 a.m. the these data in calculating the distance to frontier score for next day. In this case the time for customs trading across borders or the ranking on the ease of trading clearance would be recorded as 24 hours across borders. because the actual procedure took 24 hours. Cost   Insurance cost and informal payments for which no  receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars.  Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 338 Assumptions of the case study  For each of the 190 economies covered by Doing  Shipping cost based on weight is assumed to be Business, it is assumed that a shipment travels greater than shipping cost based on volume. from a warehouse in the largest business city of  If government fees are determined by the value of the exporting economy to a warehouse in the the shipment, the value is assumed to be $50,000. largest business city of the importing economy. For 11 economies the data are also collected,  The product is new, not secondhand or used under the same case study assumptions, for the merchandise. second largest business city.  The exporting firm is responsible for hiring and  The import and export case studies assume paying for a freight forwarder or customs broker (or different traded products. It is assumed that each both) and pays for all costs related to international economy imports a standardized shipment of 15 shipping, domestic transport, clearance and metric tons of containerized auto parts (HS 8708) mandatory inspections by customs and other from its natural import partner—the economy government agencies, port or border handling, from which it imports the largest value (price documentary compliance fees and the like for times quantity) of auto parts. It is assumed that exports. The importing firm is responsible for the each economy exports the product of its above costs for imports. comparative advantage (defined by the largest  The mode of transport is the one most widely used export value) to its natural export partner—the for the chosen export or import product and the economy that is the largest purchaser of this trading partner, as is the seaport, airport or land product. Precious metal and gems, live animals border crossing. and pharmaceuticals are excluded from the list of possible export products, however, and the  All electronic submissions of information requested second largest product category is considered as by any government agency in connection with the needed. shipment are considered to be documents obtained, prepared and submitted during the  A shipment is a unit of trade. Export shipments do export or import process. not necessarily need to be containerized, while import shipments of auto parts are assumed to be  A port or border is defined as a place (seaport, containerized. airport or land border crossing) where merchandise can enter or leave an economy.  Government agencies considered relevant are agencies such as customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 339 TRADING ACROSS BORDERS Where do the region’s economies stand today? How easy it is for businesses in economies in Europe and trading across borders suggest an answer (figure 9.1). Central Asia (ECA) to export and import goods? The The average ranking of the region and comparator global rankings of these economies on the ease of regions provide a useful benchmark. Figure 9.1 How economies in Europe and Central Asia (ECA) rank on the ease of trading across borders Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 340 TRADING ACROSS BORDERS The indicators reported here are for trading a shipment and import is collected from local freight forwarders, of goods by the most widely used mode of transport customs brokers and traders. Comparing these indicators (whether sea, land, air or some combination of these). across the region and with averages both for the region The information on the time and cost to complete export and for comparator regions can provide useful insights. Figure 9.2 What it takes to trade across borders in economies in Europe and Central Asia (ECA) Time to export: Border compliance (hours) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 341 TRADING ACROSS BORDERS Cost to export: Border compliance (USD) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 342 TRADING ACROSS BORDERS Time to export: Documentary compliance (hours) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 343 TRADING ACROSS BORDERS Cost to export: Documentary compliance (USD) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 344 TRADING ACROSS BORDERS Time to import: Border compliance (hours) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 345 TRADING ACROSS BORDERS Cost to import: Border compliance (USD) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 346 TRADING ACROSS BORDERS Time to import: Documentary compliance (hours) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 347 TRADING ACROSS BORDERS Cost to import: Documentary compliance (USD) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 348 TRADING ACROSS BORDERS What are the changes over time? In economies around the world, trading across borders systems. These changes help improve their trading as measured by Doing Business has become faster and environment and boost firms’ international easier over the years. Governments have introduced competitiveness. What trade reforms has Doing Business tools to facilitate trade—including single windows, risk- recorded in Europe and Central Asia (ECA) (table 9.1)? based inspections and electronic data interchange Table 9.1 How have economies in Europe and Central Asia (ECA) made trading across borders easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new DB2017 Azerbaijan electricity connection by introducing an electronic capacity/availability of connection map, which reduced the Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 349 DB year Economy Reform time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week DB2017 Cyprus Cyprus made access to credit information more difficult by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 350 DB year Economy Reform stopping the distribution of historical credit data. Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. Cyprus made paying taxes easier by introducing improvements to its internal processes and to the electronic DB2017 Cyprus tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the DB2017 Kazakhstan wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 351 DB year Economy Reform redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by DB2017 Kazakhstan introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing shareholder rights and role in major corporate decisions, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 352 DB year Economy Reform clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 353 DB year Economy Reform The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial DB2017 Russian Federation resolution before filing a claim, thereby lengthening the initial phase of judicial proceedings. This reform applies to both Moscow and St. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 354 DB year Economy Reform Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. DB2017 Montenegro Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 355 DB year Economy Reform easier by providing an electronic system for filing and paying VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 356 DB year Economy Reform Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by DB2016 Russian Federation excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 357 DB year Economy Reform calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating the requirement to provide several different nonencumbrance DB2016 Uzbekistan certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging DB2016 San Marino the use of the online system for obtaining the operator code and business license as well eliminating the requirement for Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 358 DB year Economy Reform the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. Kazakhstan made dealing with construction permits easier by DB2016 Kazakhstan eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 359 DB year Economy Reform Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual DB2016 Kazakhstan financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 360 DB year Economy Reform from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- DB2016 Latvia term contract from 36 months to 60. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 361 DB year Economy Reform 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. DB2016 Croatia 2) In accordance with the Minimal Wage Act, Art. 1, published in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 362 DB year Economy Reform Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted prohibitions on concurrent employment. DB2016 Belarus - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by DB2016 Armenia exempting lower-risk projects from requirements for approval of the architectural drawings by an independent expert and Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 363 DB year Economy Reform for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing an online procedure for obtaining the nonencumbrance DB2015 Azerbaijan certificate. Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by DB2015 Albania resuming the issuance of construction permits and by consolidating the land permit and construction permit into a Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 364 DB year Economy Reform single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Croatia made paying taxes more complicated for companies DB2015 Croatia by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing more detailed filing requirements for VAT. On the other hand, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 365 DB year Economy Reform it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. DB2015 Kazakhstan Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 366 DB year Economy Reform introducing the concept of creditors’ meetings, expanding the rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. DB2015 Kazakhstan Kazakhstan made trading across borders easier by opening a new border station and railway link that helped reduce Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 367 DB year Economy Reform congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. DB2015 Russian Federation The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 368 DB year Economy Reform tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. Moldova made paying taxes easier for companies by introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the DB2015 Moldova minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. DB2014 Turkey Turkey made getting electricity easier by eliminating external Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 369 DB year Economy Reform inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. DB2014 Tajikistan Tajikistan improved access to credit information by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 370 DB year Economy Reform establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. DB2014 Romania Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 371 DB year Economy Reform tax from quarterly to twice a year and by reducing the vehicle tax rate. Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. DB2014 Tajikistan Tajikistan made starting a business more difficult by requiring Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 372 DB year Economy Reform preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. Uzbekistan made trading across borders easier by eliminating the need to register import contracts with customs, DB2014 Uzbekistan tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 373 DB year Economy Reform Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. DB2014 Macedonia, FYR FYR Macedonia made property registration faster and less costly by digitizing the real estate cadastre and eliminating Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 374 DB year Economy Reform the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 375 DB year Economy Reform Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 376 DB year Economy Reform Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 377 DB year Economy Reform Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 378 DB year Economy Reform DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers DB2013 Kazakhstan of and improving qualification requirements for insolvency administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 379 DB year Economy Reform requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of assets, prohibiting appeals, expediting service of process and DB2013 Serbia adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 380 DB year Economy Reform Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 381 DB year Economy Reform Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. DB2012 Russian Federation Russia made trading across borders easier by reducing the number of documents needed for each export or import Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 382 DB year Economy Reform transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for firms by abolishing a tax, reducing the social security DB2012 Montenegro contribution rate and merging several returns into a single unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. DB2012 Ukraine Ukraine amended legislation to streamline commercial dispute resolution and increase the efficiency of enforcement Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 383 DB year Economy Reform procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces reorganization and liquidation proceedings, introduces time DB2012 Montenegro limits for these proceedings and provides for the possibility of recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. DB2012 Lithuania Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 384 DB year Economy Reform creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 385 DB year Economy Reform Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. DB2012 Cyprus Cyprus strengthened investor protections by requiring Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 386 DB year Economy Reform greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. DB2012 Armenia Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 387 DB year Economy Reform time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing the number of payments for social security contributions and DB2012 Armenia corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. DB2011 Azerbaijan Azerbaijan improved access to credit by establishing an online platform allowing financial institutions to provide Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 388 DB year Economy Reform information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 389 DB year Economy Reform Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 390 DB year Economy Reform Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. DB2011 Latvia Latvia introduced a mechanism for out-of-court settlement of insolvencies to alleviate pressure on courts and tightened Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 391 DB year Economy Reform some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 392 DB year Economy Reform Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 393 ENFORCING CONTRACTS Effective commercial dispute resolution has many WHAT THE ENFORCING CONTRACTS benefits. Courts are essential for entrepreneurs INDICATORS MEASURE because they interpret the rules of the market and protect economic rights. Efficient and transparent Time required to enforce a contract through courts encourage new business relationships because the courts (calendar days) businesses know they can rely on the courts if a new customer fails to pay. Speedy trials are essential for Time to file and serve the case small enterprises, which may lack the resources to Time for trial and to obtain the judgment stay in business while awaiting the outcome of a long court dispute. Time to enforce the judgment What do the indicators cover? Cost required to enforce a contract through the courts (% of claim) Doing Business measures the time and cost for resolving a standardized commercial dispute through Attorney fees a local first-instance court. In addition, this year it Court fees introduces a new measure, the quality of judicial Enforcement fees processes index, evaluating whether each economy has adopted a series of good practices that promote Quality of judicial processes index (0-18) quality and efficiency in the court system. This new Court structure and proceedings (0-5) index replaces the indicator on procedures, which was eliminated this year. The ranking of economies Case management (0-6) on the ease of enforcing contracts is determined by Court automation (0-4) sorting their distance to frontier scores. These scores Alternative dispute resolution (0-3) are the simple average of the distance to frontier scores for each of the component indicators The dispute in the case study involves the breach of a sales contract between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. To make the data comparable across economies, Doing Business uses several assumptions about the case:  The value of the claim is equal to 200% of the economy’s income per capita or $5,000, whichever is greater.  The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.  Seller (the plaintiff) sues Buyer (the defendant) to recover the amount under the sales agreement. The dispute is brought before the court located in the economy’s largest business city with jurisdiction over commercial cases worth 200% Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 394 of income per capita or $5,000, whichever is greater. As noted, for 11 economies the data are also collected for the second largest business city.  At the outset of the dispute, Seller decides to attach Buyer’s movable assets (for example, office equipment and vehicles) because Seller fears that Buyer may hide its assets or otherwise become insolvent.  The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate. Because the court cannot decide the case on the basis of documentary evidence or legal title alone, an expert opinion is given on the quality of the goods. If it is standard practice in the economy for each party to call its own expert witness, the parties each call one expert witness. If it is standard practice for the judge to appoint an independent expert, the judge does so. In this case the judge does not allow opposing expert testimony  Following the expert opinion, the judge decides that the goods delivered by Seller were of adequate quality and that Buyer must pay the contract price. The judge thus renders a final judgment that is 100% in favor of Seller.  Buyer does not appeal the judgment. Seller decides to start enforcing the judgment as soon as the time allocated by law for appeal lapses.  Seller takes all required steps for prompt enforcement of the judgment. The money is successfully collected through a public sale of Buyer’s movable assets (for example, office equipment and vehicles). Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 395 ENFORCING CONTRACTS Where do the region’s economies stand today? How efficient is the process of resolving a commercial economies on the ease of enforcing contracts suggest an dispute through the courts in economies in Europe and answer (figure 10.1). The average ranking of the region Central Asia (ECA)? The global rankings of these and comparator regions provide a useful benchmark. Figure 10.1 How economies in Europe and Central Asia (ECA) rank on the ease of enforcing contracts Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 396 ENFORCING CONTRACTS The indicators underlying the rankings may also be judicial processes index (figure 10.2). Comparing these revealing. Data collected by Doing Business show what it indicators across the region and with averages both for takes to enforce a contract through the courts in each the region and for comparator regions can provide economy in the region: the time, the cost and quality of useful insights. Figure 10.2 What it takes to enforce a contract through the courts in economies in Europe and Central Asia (ECA) Time (days) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 397 ENFORCING CONTRACTS Cost (% of claim) Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 398 ENFORCING CONTRACTS Quality of Judicial Processes Index (0-18) Source: Doing Business database. Note: Higher values indicate more efficient judicial processes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 399 ENFORCING CONTRACTS What are the changes over time? Economies in all regions have improved contract reducing backlogs by introducing periodic reviews to enforcement in recent years. A judiciary can be improved clear inactive cases from the docket and by making in different ways. Higher-income economies tend to look procedures faster. What reforms making it easier (or for ways to enhance efficiency by introducing new more difficult) to enforce contracts has Doing Business technology. Lower-income economies often work on recorded in Europe and Central Asia (ECA) (table 10.1)? Table 10.1 How have economies in Europe and Central Asia (ECA) made enforcing contracts easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 400 DB year Economy Reform Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. DB2017 Cyprus Cyprus made paying taxes easier by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 401 DB year Economy Reform improvements to its internal processes and to the electronic tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 402 DB year Economy Reform outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 403 DB year Economy Reform Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial DB2017 Russian Federation resolution before filing a claim, thereby lengthening the initial phase of judicial Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 404 DB year Economy Reform proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 405 DB year Economy Reform Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 406 DB year Economy Reform Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating DB2016 Uzbekistan the requirement to provide several different nonencumbrance Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 407 DB year Economy Reform certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. DB2016 Kazakhstan Kazakhstan made dealing with construction permits easier by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 408 DB year Economy Reform eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 409 DB year Economy Reform Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 410 DB year Economy Reform The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted DB2016 Belarus prohibitions on concurrent employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 411 DB year Economy Reform - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing DB2015 Azerbaijan an online procedure for obtaining the nonencumbrance certificate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 412 DB year Economy Reform Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 413 DB year Economy Reform Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 414 DB year Economy Reform Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 415 DB year Economy Reform Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. DB2015 Moldova Moldova made paying taxes easier for companies by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 416 DB year Economy Reform introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 417 DB year Economy Reform Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 418 DB year Economy Reform Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. DB2014 Uzbekistan Uzbekistan made trading across borders easier by eliminating Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 419 DB year Economy Reform the need to register import contracts with customs, tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 420 DB year Economy Reform FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 421 DB year Economy Reform Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 422 DB year Economy Reform Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 423 DB year Economy Reform there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 424 DB year Economy Reform Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of DB2013 Serbia assets, prohibiting appeals, expediting service of process and adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 425 DB year Economy Reform immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 426 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for DB2012 Montenegro firms by abolishing a tax, reducing the social security contribution rate and merging several returns into a single Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 427 DB year Economy Reform unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces DB2012 Montenegro reorganization and liquidation proceedings, introduces time limits for these proceedings and provides for the possibility of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 428 DB year Economy Reform recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 429 DB year Economy Reform Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 430 DB year Economy Reform In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing DB2012 Armenia the number of payments for social security contributions and Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 431 DB year Economy Reform corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 432 DB year Economy Reform Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 433 DB year Economy Reform for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 434 DB year Economy Reform The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 435 DB year Economy Reform Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 436 RESOLVING INSOLVENCY A robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCY ensuring the survival of economically efficient companies and reallocating the resources of INDICATORS MEASURE inefficient ones. Fast and cheap insolvency proceedings result in the speedy return of businesses to normal operation and increase returns to Time required to recover debt (years) creditors. By clarifying the expectations of creditors Measured in calendar years and debtors about the outcome of insolvency Appeals and requests for extension are proceedings, well-functioning insolvency systems can included facilitate access to finance, save more viable businesses and sustainably grow the economy. Cost required to recover debt (% of debtor’s estate) What do the indicators cover? Doing Business studies the time, cost and outcome of Measured as percentage of estate value insolvency proceedings involving domestic legal Court fees entities. These variables are used to calculate the Fees of insolvency administrators recovery rate, which is recorded as cents on the dollar recovered by secured creditors through Lawyers’ fees reorganization, liquidation or debt enforcement Assessors’ and auctioneers’ fees (foreclosure or receivership) proceedings. To Other related fees determine the present value of the amount recovered by creditors, Doing Business uses the Outcome lending rates from the International Monetary Fund, Whether business continues operating as a supplemented with data from central banks and the going concern or business assets are sold Economist Intelligence Unit. piecemeal In addition, Doing Business evaluates the adequacy Recovery rate for creditors and integrity of the existing legal framework applicable to liquidation and reorganization Measures the cents on the dollar recovered by proceedings through the strength of insolvency secured creditors framework index. The index tests whether economies Outcome for the business (survival or not) adopted internationally accepted good practices in determines the maximum value that can be four areas: commencement of proceedings, recovered management of debtor’s assets, reorganization Official costs of the insolvency proceedings are proceedings and creditor participation. deducted The ranking of economies on the ease of resolving Depreciation of furniture is taken into account insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores Present value of debt recovered are the simple average of the distance to frontier Strength of insolvency framework index (0- scores for the recovery rate and the strength of 16) insolvency framework index. The Resolving Sum of the scores of four component indices: Insolvency indicator does not measure insolvency proceedings of individuals and financial institutions. Commencement of proceedings index (0-3) The data are derived from questionnaire responses Management of debtor’s assets index (0-6) by local insolvency practitioners and verified through a study of laws and regulations as well as public Reorganization proceedings index (0-3) information on bankruptcy systems Creditor participation index (0-4) Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 437 . A robust bankruptcy system functions as a filter, In addition, Doing Business evaluates the adequacy ensuring the survival of economically efficient and integrity of the existing legal framework companies and reallocating the resources of applicable to liquidation and reorganization inefficient ones. Fast and cheap insolvency proceedings through the strength of insolvency proceedings result in the speedy return of businesses framework index. The index tests whether to normal operation and increase returns to economies adopted internationally accepted good creditors. By clarifying the expectations of creditors practices in four areas: commencement of and debtors about the outcome of insolvency proceedings, management of debtor’s assets, proceedings, well-functioning insolvency systems can reorganization proceedings and creditor facilitate access to finance, save more viable participation. businesses and sustainably grow the economy. What do the indicators cover? Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:  A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.  The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.  The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 438 RESOLVING INSOLVENCY Where do the region’s economies stand today? How efficient are insolvency proceedings in economies in the region and comparator regions provide a useful Europe and Central Asia (ECA)? The global rankings of benchmark for assessing the efficiency of insolvency these economies on the ease of resolving insolvency proceedings. Speed, low costs and continuation of viable suggest an answer (figure 11.1). The average ranking of businesses characterize the top-performing economies. Figure 11.1 How economies in Europe and Central Asia (ECA) rank on the ease of resolving insolvency Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 439 RESOLVING INSOLVENCY The indicators underlying the rankings may be more these indicators across the region and with averages revealing. Data collected by Doing Business show the both for the region and for comparator regions can average recovery rate and the average strength of provide useful insights. insolvency framework index (figure 11.2). Comparing Figure 11.2 How efficient is the insolvency process in economies in Europe and Central Asia (ECA) Recovery Rate (0–100) Source: Doing Business database. Total Strength of Insolvency Framework index (0-16) Source: Doing Business database. * Indicates a “no practice” mark. See the data notes for details. If an economy has no laws or regulations covering a specific area—for example, insolvency—it receives a “no practice” mark. Similarly, an economy receives a “no practice” or “not possible” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “ no practice” mark puts the economy at the bottom of the ranking on the relevant indicator. Source: Doing Business database. Note: Higher values indicate insolvency legislation that is better designed for rehabilitating viable firms and liquidating nonviable ones. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 440 RESOLVING INSOLVENCY What are the changes over time? A well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws have companies that are financially distressed but been aimed at helping more of the viable businesses economically viable from inefficient companies that survive. What insolvency reforms has Doing Business should be liquidated. But in some insolvency systems recorded in Europe and Central Asia (ECA) (table 11.1)? even viable businesses are liquidated. This is starting to Table 11.1 How have economies in Europe and Central Asia (ECA) made resolving insolvency easier—or not? By Doing Business report year DB2011 to DB2017 DB year Economy Reform Albania made dealing with construction permits easier by reintroducing the issuance of building permits and DB2017 Albania streamlining the process of receiving the final inspection and compliance certificate. Albania made getting electricity easier by speeding up the DB2017 Albania process for obtaining a new connection. Albania made trading across borders more difficult by introducing mandatory scanning inspections for exports and DB2017 Albania imports, which increased the time and cost for border compliance. Albania made paying taxes easier by introducing an online DB2017 Albania system for filing and paying taxes. Armenia made enforcing contracts easier by introducing a consolidated chapter regulating voluntary mediation and by DB2017 Armenia establishing financial incentives for the parties to attempt mediation. Armenia strengthened access to credit by adopting a new law on secured transactions that establishes a modern and DB2017 Armenia centralized collateral registry. Armenia improved its credit information system by adopting a new law on personal data protection. Azerbaijan streamlined the process of obtaining a new electricity connection by introducing an electronic DB2017 Azerbaijan capacity/availability of connection map, which reduced the time needed to determine new customer connection points. Azerbaijan facilitated international trade processes by DB2017 Azerbaijan introducing an electronic system for submitting export and import declarations. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 441 DB year Economy Reform Azerbaijan made paying taxes easier by abolishing vehicle tax DB2017 Azerbaijan for residents. In Belarus the credit bureau started to provide credit scores, DB2017 Belarus strengthening the credit reporting system. Bulgaria increased the reliability of power supply by implementing an automatic energy management system, the DB2017 Bulgaria Supervisory Control and Data Acquisition (SCADA), to monitor outages and service restoration. Belarus streamlined the process of obtaining an electricity connection by establishing a one-stop shop at the utility that DB2017 Belarus fulfills all connection-related services, including the design and construction of the distribution line. Belarus strengthened minority investor protections by introducing remedies in cases where related-party DB2017 Belarus transactions are harmful to the company and requiring greater corporate transparency. Belarus made it easier to transfer a property by improving the DB2017 Belarus transparency and reliability of the land administration system. Bosnia and Herzegovina made starting a business easier by reducing the paid-in minimum capital requirement for limited DB2017 Bosnia and Herzegovina liability companies and increasing the efficiency of the notary system. Bosnia and Herzegovina made paying taxes easier by DB2017 Bosnia and Herzegovina abolishing the tourist community fee. Cyprus amended its legislation to allow shops and DB2017 Cyprus supermarkets to operate seven days a week Cyprus made access to credit information more difficult by stopping the distribution of historical credit data. DB2017 Cyprus Croatia strengthened minority investor protections by DB2017 Croatia requiring detailed internal disclosure of conflicts of interest by directors. Croatia made starting a business more difficult by increasing DB2017 Croatia notary fees. Cyprus made starting a business easier by merging the DB2017 Cyprus procedures to register for taxes and for VAT while making name search and reservation faster. DB2017 Cyprus Cyprus made paying taxes easier by introducing Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 442 DB year Economy Reform improvements to its internal processes and to the electronic tax filing system. Cyprus also made paying taxes less costly by increasing the discount rate applied on immovable property tax. Croatia made paying taxes more complicated by introducing DB2017 Croatia a radio and television fee, and eliminating the reduction of the Chamber of Economy fee for new companies. Kazakhstan made dealing with construction permits easier by DB2017 Kazakhstan introducing a single window and streamlining procedures. Kazakhstan made enforcing contracts easier by adopting a new code of civil procedure and by regulating the maximum DB2017 Kazakhstan number of adjournments that can be granted by a judge in a given case. The Former Yugoslav Republic of Macedonia made enforcing contracts more difficult by adopting amendments to the Law DB2017 Macedonia, FYR on Civil Procedure that mandate mediation before filing a claim, thus lengthening the initial phase of judicial proceedings. Kazakhstan adopted a new labor code that decreased the wage premium for work on weekly holidays, eliminated the requirement to reassign employees before making them DB2017 Kazakhstan redundant, extended the maximum duration of probationary periods and introduced mandatory out-of-court mediation procedures before parties can file claims in court. The Former Yugoslav Republic of Macedonia strengthened access to credit by amending its laws to implement a functional secured transactions system, provide modern DB2017 Macedonia, FYR features for the collateral registry and allow parties to grant non posessory security rights in a single category of assets with general descriptions. Latvia improved access to credit information by launching a DB2017 Latvia private credit bureau. Lithuania made getting electricity faster by introducing time DB2017 Lithuania limits on the utility to conduct necessary connection procedures and lowering the connection tariff. Georgia improved the reliability of electricity supply by introducing penalties for the utility for having worse scores on the annual system average interruption duration index DB2017 Georgia (SAIDI) and system average interruption frequency index (SAIFI) than the previous year. Georgia also mandated the notification of customers by the utility of planned electricity Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 443 DB year Economy Reform outages. Kazakhstan streamlined the process of obtaining an electricity connection by eliminating the need for an official excavation permit and an inspection by the State Energy Supervision Committee. Kazakhstan also reduced the time needed to fulfill utility technical requirements and to sign supply DB2017 Kazakhstan contracts. The reliability of the power supply in Kazakhstan was also improved following the establishment of normative levels for the annual system average interruption duration index (SAIDI) and system average interruption frequency index (SAIFI). Kazakhstan strengthened minority investor protections by introducing greater requirements for immediate disclosure of related-party transactions to the public, increasing DB2017 Kazakhstan shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency. Georgia strengthened minority investor protections by increasing shareholder rights and role in major corporate DB2017 Georgia decisions and by clarifying ownership and control structures. FYR Macedonia, strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions, introducing greater requirements for immediate DB2017 Macedonia, FYR disclosure of related-party transactions to the public, allowing greater access to corporate information during trial and clarifying ownership and control structures. FYR Macedonia made resolving insolvency easier by changing DB2017 Macedonia, FYR voting procedures for the reorganization plans and allowing creditors greater participation in insolvency proceedings. Kazakhstan made resolving insolvency easier by changing voting procedures for reorganization plans and providing protections to creditors who vote against such plans. DB2017 Kazakhstan Additionally, creditors were granted greater access to information about the debtor during insolvency proceedings and allowed to challenge decisions affecting their rights. Georgia improved the quality of land administration by DB2017 Georgia increasing coverage of all maps for privately held land plots in the main business city. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 444 DB year Economy Reform Kazakhstan simplified the process of starting a business by DB2017 Kazakhstan abolishing the requirement to notarize company documents and founders’ signatures. Kosovo reduced the time and cost of documentary compliance and the time of border compliance for exporting DB2017 Kosovo by improving its automated customs data management system, streamlining customs clearance processes and implementing an Albania-Kosovo Transit Corridor. The Kyrgyz Republic decreased time and cost for exporting by DB2017 Kyrgyz Republic becoming a member of the Euroasian Economic Union. Kazakhstan made exporting less costly by removing two DB2017 Kazakhstan export documents required for customs clearance. Georgia made export and import documentary compliance faster by improving its electronic document processing DB2017 Georgia system, as well as, introduced an advanced electronic document submission option. Georgia made paying taxes easier by abolishing additional DB2017 Georgia annex to corporate income tax returns and by improving the efficiency of the online system used for filing VAT returns. Kosovo made paying taxes easier by introducing an online system for filing and paying VAT and social security DB2017 Kosovo contributions, and it made paying taxes less costly by allowing more types of expenses to be deducted for the calculation of corporate income tax. Latvia made paying taxes less complicated by improving its DB2017 Latvia online systems for filing corporate income tax return and mandatory labor contributions. Serbia made dealing with construction permits faster by DB2017 Serbia implementing an online system and streamlining the process of obtaining technical conditions for the building permit. Russian Federation Saint Petersburg made dealing with DB2017 Russian Federation construction permits easier by removing the requirement to obtain permission to fence the construction site. San Marino made dealing with construction permits easier DB2017 San Marino and cheaper by reducing the cost and streamling the process of obtaining a structural authorization The Russian Federation made enforcing contracts more difficult by mandating pre-trial DB2017 Russian Federation resolution before filing a claim, thereby lengthening the initial phase of judicial Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 445 DB year Economy Reform proceedings. This reform applies to both Moscow and St. Petersburg. Ukraine made enforcing contracts easier by introducing a DB2017 Ukraine system that allows users to pay court fees electronically. Ukraine strengthened minority investor protections by requiring interested director or shareholder to be excluded from the vote, by requiring that proposed related-party DB2017 Ukraine transactions undergo external review, by introducing remedies in cases where related-party transactions are harmful to the company and also clarifying ownership and control structures. Uzbekistan strengthened minority investor protections by DB2017 Uzbekistan clarifying ownership and control structures. Uzbekistan made transferring a property easier by increasing DB2017 Uzbekistan transparency of information. Serbia simplified property transfer process by introducing DB2017 Serbia effective time limits. Tajikistan made starting a business more difficult by requiring DB2017 Tajikistan that companies with annual revenue of more than SM 500,000 register as a VAT payer Serbia simplified the process of starting a business by DB2017 Serbia reducing the time to register a company. Romania made starting a business more difficult by increasing the time to register for Value Added Tax. DB2017 Romania Tajikistan made paying taxes easier by introducing electronic invoices and expanding the electronic system for filing and DB2017 Tajikistan paying taxes to include road tax. It also made paying taxes less costly by reducing road tax rates. On the other hand, land tax rates were increased. Montenegro made paying taxes less costly by reducing the personal income tax rate. Montenegro made paying taxes easier by providing an electronic system for filing and paying DB2017 Montenegro VAT. At the same time, Montenegro made paying taxes more costly by increasing the health contribution rate paid by employers. San Marino made paying taxes less costly by introducing a DB2017 San Marino 50% reduction of corporate income tax for new companies. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 446 DB year Economy Reform Uzbekistan made paying taxes less costly by reducing the unified social payment rate paid by employers and the DB2017 Uzbekistan corporate income tax rate. However, the land tax rates in city of Tashkent increased. Moldova made enforcing contracts easier by adopting a new DB2017 Moldova mediation law establishing financial incentives for the parties to attempt mediation. Moldova streamlined the process of obtaining a new electricity connection by eliminating the need for new DB2017 Moldova customers with a capacity of less than 200 kilowatts to obtain an inspection from the State Energy Inspectorate. Turkey simplified the process of starting a business by DB2017 Turkey reducing the time needed to register a company. Moldova made starting a business more costly by increasing DB2017 Moldova the cost for company registration. Turkey made paying taxes easier by introducing electronic invoicing and electronic bookkeeping. At the same time, DB2017 Turkey however, Turkey also increased the rate of transaction tax applicable on checks. Moldova made paying taxes easier by eliminating a requirement to submit social security documents in hard DB2017 Moldova copy. However, Moldova also made paying taxes more costly by raising rates for road tax, environmental levy and health insurance contributions paid by employers. Turkey made dealing with construction permits easier by DB2016 Turkey streamlining the process to obtain the fire clearance. Moldova improved its insolvency system by introducing a licensing system for insolvency administrators, by increasing DB2016 Moldova qualification requirements to include a professional exam as well as training and by establishing supervisory bodies to regulate the profession of insolvency administrators. Moldova made starting a business easier by eliminating an DB2016 Moldova inspection by the Territorial State Fiscal Inspectorate. Russia made the process of obtaining an electricity connection simpler, faster and less costly by eliminating a DB2016 Russian Federation meter inspection by electricity providers and revising connection tariffs. This reform applies to both Moscow and St. Petersburg. Montenegro made dealing with construction permits easier DB2016 Montenegro by reducing the time needed to issue building permits. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 447 DB year Economy Reform Serbia made dealing with construction permits less costly by eliminating the land development tax for warehouses. On the DB2016 Serbia other hand, it also introduced a mandatory inspection of foundation works. Romania made enforcing contracts easier by transferring some enforcement responsibilities from the court to the DB2016 Romania bailiff, by making it easier for the bailiff to obtain information from third parties and by making use of the electronic auction registry mandatory. Romania improved its insolvency system by introducing time limits for the observation period (during which a reorganization plan must be confirmed or a declaration of bankruptcy made) and for the implementation of the DB2016 Romania reorganization plan; by introducing additional minimum voting requirements for the approval of the reorganization plan; and by clarifying rules on voidable transactions and on payment priority for claims of post-commencement creditors. Russia made paying taxes less costly for companies by excluding movable property from the corporate property tax base—though it also raised the wage ceiling used in DB2016 Russian Federation calculating social contributions. These changes apply to both Moscow and St. Petersburg. In addition, the cadastral value of land in Moscow was updated. Tajikistan made paying taxes easier for companies by introducing an electronic filing and payment system for DB2016 Tajikistan corporate income tax, VAT and labor taxes. On the other hand, it increased real estate tax fees. Serbia made paying taxes easier for companies by introducing an electronic system for filing and paying VAT DB2016 Serbia and social security contributions as well as by abolishing the urban land usage fee. On the other hand, Serbia increased the property tax and environmental tax rates. Montenegro made paying taxes easier for companies by introducing an electronic system for filing and paying labor DB2016 Montenegro taxes—though it also extended the application of the “crisis tax” for an indefinite period on income exceeding €720 a month. Romania made paying taxes less costly for companies by DB2016 Romania reducing the rate for social security contributions and the rate for accident risk fund contributions paid by employers. Uzbekistan made transferring property easier by eliminating DB2016 Uzbekistan the requirement to provide several different nonencumbrance Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 448 DB year Economy Reform certificates, though it also increased the costs associated with property transfers. Russia made transferring property easier by reducing the time DB2016 Russian Federation required for property registration. This reform applies to both Moscow and St. Petersburg. Ukraine made starting a business easier by reducing the time required for VAT registration and by eliminating business DB2016 Ukraine registration fees. San Marino made starting a business easier by encouraging the use of the online system for obtaining the operator code DB2016 San Marino and business license as well eliminating the requirement for the police inspection before formally operating. The Russian Federation made starting a business in Moscow DB2016 Russian Federation easier by reducing the number of days required to open a corporate bank account. Uzbekistan made starting a business easier by introducing an DB2016 Uzbekistan online one-stop shop and streamlining registration procedures. Tajikistan made trading across borders easier by making it DB2016 Tajikistan possible to submit customs declarations electronically. Russia improved access to credit by adopting a new law on secured transactions that established a centralized collateral DB2016 Russian Federation registry and allows a general description of a combined category of assets granted as collateral. This reform applies to both Moscow and St. Petersburg. Uzbekistan improved access to credit by adopting new laws on secured transactions that allow a general description of DB2016 Uzbekistan assets granted as collateral and establish a modern, unified, notice-based collateral registry. The utility in Lithuania has reduced the time of the connection works by enforcing the legal time limit to perform DB2016 Lithuania the external connection works. Latvia made dealing with construction permits more time- consuming by increasing the time required to obtain a DB2016 Latvia building permit—despite having streamlined the process by having the building permit issued together with the architectural planning conditions. DB2016 Kazakhstan Kazakhstan made dealing with construction permits easier by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 449 DB year Economy Reform eliminating the requirement to obtain a topographic survey of the land plot. Georgia made dealing with construction permits easier by DB2016 Georgia reducing the time needed for issuing building permits. Georgia made enforcing contracts easier by introducing an DB2016 Georgia electronic filing system for court users. Kazakhstan made enforcing contracts easier by introducing a DB2016 Kazakhstan simplified fast-track procedure for small claims and by streamlining the rules for enforcement proceedings. Latvia made enforcing contracts easier by restructuring its courts and by introducing comprehensive specialized laws DB2016 Latvia regulating domestic arbitration and voluntary mediation. Kazakhstan made resolving insolvency easier by allowing creditors to initiate reorganization proceedings and encouraging sales of assets as a going concern. Kazakhstan DB2016 Kazakhstan also improved its bankruptcy regime, by explicitly authorizing post-commencement finance and granting it priority over existing unsecured claims. Latvia made paying taxes more complicated for companies by eliminating the possibility of deducting bad debt provisions. DB2016 Latvia On the other hand, Latvia reduced the rate for social security contributions paid by employers. Kosovo made paying taxes easier for companies by DB2016 Kosovo abolishing the annual business license fee. Lithuania strengthened minority investor protections by DB2016 Lithuania prohibiting subsidiaries from acquiring shares issued by their parent company. FYR Macedonia strengthened minority investor protections by DB2016 Macedonia, FYR providing for both fines and imprisonment of interested directors in prejudicial related-party transactions. Kazakhstan strengthened minority investor protections through new provisions requiring both immediate disclosure of related-party transactions and detailed disclosure in annual financial statements; expanding the way evidence can be obtained at trial; requiring that a change in the rights DB2016 Kazakhstan associated with shares be subject to approval by a vote of two-thirds of the affected shares; prohibiting subsidiaries from acquiring shares issued by their parent company; and requiring disclosure of information about board members’ other directorships as well as their primary employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 450 DB year Economy Reform Kazakhstan made transferring property easier by eliminating the requirement to obtain a technical passport for the DB2016 Kazakhstan transfer and to have the seller’s and buyer’s incorporation documents notarized. The Kyrgyz Republic made transferring property easier by DB2016 Kyrgyz Republic introducing an online procedure for obtaining the nonencumbrance certificates. Latvia made transferring property easier by introducing a new DB2016 Latvia application form for transfers. The former Yugoslav Republic of Macedonia made starting a DB2016 Macedonia, FYR business simpler by introducing compulsory online registration carried out by certified agents. Lithuania made starting a business easier by introducing DB2016 Lithuania online VAT registration. Kazakhstan made starting a business simpler by eliminating registration fees for small and medium-size firms, shortening DB2016 Kazakhstan registration times and eliminating the legal requirement to use a company seal. 1) FYR Macedonia introduced amendments to its Labor Relations Act relating to social contributions, employment contracts, independent contractors, annual leave, overtime work, health inspections and labor disputes. DB2016 Macedonia, FYR 2) The Former Yugoslav Republic of Macedonia increased the minimum wage. 1) Latvia increased the maximum duration of a single fixed- term contract from 36 months to 60. DB2016 Latvia 2) Latvia increased its minimum wage Kazakhstan improved access to credit by adopting a new law DB2016 Kazakhstan on secured transactions allowing a general description of a combined category of assets granted as collateral. In the Kyrgyz Republic the credit bureau improved access to DB2016 Kyrgyz Republic credit information by beginning to distribute both positive and negative credit information. Latvia improved its credit information system through a new DB2016 Latvia law governing the licensing and functioning of credit bureaus. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 451 DB year Economy Reform The utility in Cyprus made getting electricity easier by DB2016 Cyprus reducing the time required for obtaining a new connection. Croatia made enforcing contracts easier by introducing an DB2016 Croatia electronic system to handle public sales of movable assets and by streamlining the enforcement process as a whole. Cyprus made enforcing contracts easier by introducing a fast- DB2016 Cyprus track simplified procedure for claims worth less than €3,000. Cyprus made resolving insolvency easier by introducing a reorganization procedure as well as provisions to facilitate the DB2016 Cyprus continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings. Cyprus made paying taxes easier for companies by facilitating online payment of corporate income tax. At the same time, Cyprus raised the contribution rate for social insurance paid DB2016 Cyprus by employers, lowered the tax brackets for the social contribution fund, raised the rate on interest income and increased the vehicle tax. 1) Croatia eliminated the requirement to retrain or reassign employees before they can be made redundant. 2) In accordance with the Minimal Wage Act, Art. 1, published DB2016 Croatia in Official Gazette No.151/2014, the minimum wage has been increased from 3.017,61 Kuna/month to 3.029,55 Croatian Kuna/month gross salary, in force for the period of January 1, 2015 to December 31, 2015. Cyprus improved access to credit information by allowing credit bureaus to collect and report positive credit DB2016 Cyprus information and to report credit histories for both borrowers and guarantors. Belarus made transferring property easier by introducing a DB2016 Belarus new expedited procedure. Belarus made starting a business simpler by expanding the DB2016 Belarus geographic coverage of online registration and improving online services. - Belarus amended the provisions of its Labor Code relating to wage regulation, labor arbitration, calculation of overtime pay and grounds for termination of employment. It also lifted DB2016 Belarus prohibitions on concurrent employment. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 452 DB year Economy Reform - Belarus increased the minimum wage from 1,600,000 Belarussian Rubles per month to 2,100 000 Belarussian Rubles per month, in accordance with the ‘Determination of minimum wage’ Resolution of the Council of Ministers of the Republic of Belarus, dated 12/9/2014 No. 1151 Albania made dealing with construction permits more difficult DB2016 Albania by suspending the issuance of building permits. Albania strengthened minority investor protections by DB2016 Albania introducing legal requirements for immediate disclosure of related-party transactions to the public. Albania made exporting easier by implementing an electronic risk-based inspection system, which reduced the time for DB2016 Albania border compliance. Armenia made dealing with construction permits easier by exempting lower-risk projects from requirements for approval DB2016 Armenia of the architectural drawings by an independent expert and for technical supervision of the construction. Azerbaijan made dealing with construction permits easier by DB2016 Azerbaijan establishing a one-stop shop for issuing preapprovals for project documentation. Armenia made enforcing contracts easier through a new law requiring that cases be assigned to judges randomly—and DB2016 Armenia through a fully automated system—in courts throughout the country. Azerbaijan strengthened minority investor protections by introducing requirements that related-party transactions DB2016 Azerbaijan undergo external review and be voted on by disinterested shareholders. Azerbaijan made starting a business easier by abolishing the DB2016 Azerbaijan requirement to use a corporate seal. Armenia reduced the time and cost for documentary and DB2016 Armenia border compliance for trade with the Russian Federation by joining the Eurasian Economic Union. Azerbaijan made paying taxes easier for companies by DB2015 Azerbaijan introducing an electronic system for filing and paying social insurance contributions. Azerbaijan made transferring property easier by introducing DB2015 Azerbaijan an online procedure for obtaining the nonencumbrance certificate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 453 DB year Economy Reform Azerbaijan made starting a business easier by reducing the DB2015 Azerbaijan time to obtain an electronic signature for online tax registration. Armenia made starting a business easier by streamlining DB2015 Armenia postregistration procedures. Albania made dealing with construction permits easier by resuming the issuance of construction permits and by DB2015 Albania consolidating the land permit and construction permit into a single construction development permit. Albania weakened its secured transactions system through an amendment to the Securing Charges Law that does not allow DB2015 Albania intangible assets to be secured with a nonpossessory pledge. Albania made paying taxes more costly for companies by DB2015 Albania increasing the corporate income tax rate. Albania made transferring property easier by establishing DB2015 Albania effective time limits and computerizing the records on immovable property. Albania made starting a business easier by lowering DB2015 Albania registration fees. Belarus made paying taxes easier for companies by introducing an electronic system for filing and paying contributions for the obligatory insurance for work accidents—and by simplifying the filing requirements for DB2015 Belarus corporate income tax and VAT. On the other hand, it increased the ecological tax rate and made bad debt provisions nondeductible for purposes of the corporate income tax. Bulgaria made starting a business easier by lowering DB2015 Bulgaria registration fees. Cyprus improved its credit information system by adopting a DB2015 Cyprus central bank directive eliminating the minimum threshold for loans to be included in credit bureaus’ databases. Croatia made dealing with construction permits easier by DB2015 Croatia reducing the requirements and fees for building permits and carrying out the final building inspection more promptly. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 454 DB year Economy Reform Croatia made paying taxes more complicated for companies by raising the health insurance contribution rate, increasing the Croatian Chamber of Commerce fees and introducing DB2015 Croatia more detailed filing requirements for VAT. On the other hand, it abolished the contribution to the Croatian Chamber of Commerce. Cyprus made paying taxes easier for companies by reducing DB2015 Cyprus the number of provisional tax installments for corporate income tax. Croatia made starting a business easier by reducing notary DB2015 Croatia fees. Croatia lifted the 3-year limit on the duration of first-time DB2015 Croatia fixed-term contracts. Croatia made trading across borders easier by implementing DB2015 Croatia a new electronic customs system. Lithuania made dealing with construction permits easier by DB2015 Lithuania reducing the time required for processing building permit applications. Kosovo made dealing with construction permits easier by DB2015 Kosovo establishing a new phased inspection scheme and substantially reducing the building permit fee. Kazakhstan made enforcing contracts easier by introducing DB2015 Kazakhstan an electronic filing system for court users. Kosovo made enforcing contracts easier by introducing a DB2015 Kosovo private bailiff system. Lithuania made enforcing contracts easier by introducing an DB2015 Lithuania electronic filing system for court users. The former Yugoslav Republic of Macedonia made resolving insolvency easier by establishing a framework for electronic auctions of debtors’ assets, streamlining and tightening the DB2015 Macedonia, FYR time frames for insolvency proceedings and the appeals process and establishing a framework for out-of-court restructurings. Kazakhstan made resolving insolvency easier by clarifying and simplifying provisions on liquidation and reorganization, introducing the concept of creditors’ meetings, expanding the DB2015 Kazakhstan rights of creditors during insolvency proceedings, authorizing payment in kind to secured creditors and clarifying the process for submitting creditors’ claims. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 455 DB year Economy Reform Kazakhstan made paying taxes more complicated for companies by introducing a mandatory contribution to the DB2015 Kazakhstan National Chamber of Entrepreneurs and by increasing the vehicle and environmental taxes. Latvia made paying taxes easier for companies by simplifying the VAT return, enhancing the electronic system for filing DB2015 Latvia corporate income tax returns and reducing employers’ social security contribution rate. The former Yugoslav Republic of Macedonia strengthened DB2015 Macedonia, FYR minority investor protections by requiring prior review of related-party transactions by an external auditor. Kazakhstan made registering property easier by introducing DB2015 Kazakhstan effective time limits and an expedited procedure. Kosovo made transferring property more difficult by DB2015 Kosovo increasing the fee for the registration of property transactions. Latvia made starting a business more difficult by increasing DB2015 Latvia registration fees, bank fees and notary fees. Lithuania made starting a business easier by eliminating the DB2015 Lithuania need to have a company seal and speeding up the value added tax (VAT) registration at the State Tax Inspectorate. The former Yugoslav Republic of Macedonia made starting a DB2015 Macedonia, FYR business easier by making online registration free of charge. Georgia reduced the maximum duration of fixed-term DB2015 Georgia contracts and introduced a notice period for redundancy dismissals. Kazakhstan made trading across borders easier by opening a DB2015 Kazakhstan new border station and railway link that helped reduce congestion at the border with China. Tajikistan made dealing with construction permits less costly DB2015 Tajikistan by reducing the fee to obtain the architectural planning assignment. Montenegro made dealing with construction permits substantially less costly by reducing the fee for the provision DB2015 Montenegro of utilities on construction land and eliminating the fee for obtaining urban development and technical requirements from the municipality. Romania made paying taxes easier for companies, with the DB2015 Romania majority now using the electronic system for filing and paying taxes. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 456 DB year Economy Reform Tajikistan made paying taxes easier for companies by DB2015 Tajikistan introducing an electronic system for filing and paying corporate income tax, VAT and labor taxes. Ukraine made paying taxes easier for companies by DB2015 Ukraine introducing an electronic system for filing and paying labor taxes. On the other hand, it increased the environmental tax. Uzbekistan strengthened minority investor protections by introducing a requirement for public joint stock companies to disclose information about related-party transactions in their DB2015 Uzbekistan annual report; setting higher standards for disclosure of such transactions to the board of directors; and establishing the right of shareholders to receive all documents related to such transactions. Serbia made transferring property more difficult by eliminating the expedited procedure for registering a DB2015 Serbia property transfer. San Marino made transferring property easier by lowering the DB2015 San Marino property registration tax rate. The Russian Federation made transferring property easier by eliminating the requirement for notarization and introducing DB2015 Russian Federation tighter time limits for completing the property registration. This reform applies to both Moscow and St. Petersburg. The Russian Federation made starting a business easier by eliminating the requirement to deposit the charter capital DB2015 Russian Federation before company registration as well as the requirement to notify tax authorities of the opening of a bank account. This reform applies to both Moscow and St. Petersburg. Tajikistan made starting a business easier by enabling the DB2015 Tajikistan Statistics Agency to issue the statistics code for the new business at the time of registration. Uzbekistan made trading across borders easier by reducing DB2015 Uzbekistan the number of documents to export and import and by making it possible to submit documents electronically. Tajikistan improved access to credit information by beginning DB2015 Tajikistan to provide credit scores. Turkey made enforcing contracts easier by introducing an DB2015 Turkey electronic filing system for court users. DB2015 Moldova Moldova made paying taxes easier for companies by Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 457 DB year Economy Reform introducing an electronic system for filing and paying social security contributions. On the other hand, it increased the minimum salary used for calculating the environmental tax liability. Furthermore, Moldova increased the employers’ health insurance contribution rate and introduced new filing requirements for VAT. Turkey made paying taxes more costly for companies by DB2015 Turkey increasing employers’ social security contribution rate. Turkey made starting a business more difficult by increasing DB2015 Turkey the notary and company registration fees. Moldova made starting a business easier by abolishing the DB2015 Moldova minimum capital requirement. Turkey made getting electricity easier by eliminating external DB2014 Turkey inspections and reducing some administrative costs. Turkey reduced the time required for dealing with construction permits by setting strict time limits for granting DB2014 Turkey a lot plan and by reducing the documentation requirements for an occupancy permit. Moldova made resolving insolvency easier by introducing new restructuring mechanisms, reducing opportunities for DB2014 Moldova appeals, adding moratorium provisions and establishing strict statutory periods for several stages of the insolvency proceeding. Moldova made paying taxes easier for companies by introducing an electronic filing and payment system for the DB2014 Moldova value added tax, corporate income tax, land improvement tax and tax on immovable property. Turkey strengthened investor protections through a new commercial code that requires directors found liable in abusive related-party transactions to disgorge their profits DB2014 Turkey and that allows shareholders to request the appointment of an auditor to investigate alleged prejudicial conflicts of interest. Turkey made transferring property more costly by increasing DB2014 Turkey the registration and several other fees. Turkey made starting a business more difficult by increasing DB2014 Turkey the minimum capital requirement. Moldova strengthened its secured transactions system by DB2014 Moldova introducing new grounds for relief from an automatic stay during insolvency and restructuring proceedings. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 458 DB year Economy Reform Uzbekistan improved access to credit information by expanding the scope of credit information and requiring that DB2014 Uzbekistan more than 2 years of historical data be collected and distributed. Tajikistan improved access to credit information by DB2014 Tajikistan establishing a private credit bureau. Ukraine improved access to credit information by collecting DB2014 Ukraine data on firms from financial institutions. Ukraine made getting electricity easier by streamlining the DB2014 Ukraine process for obtaining a new connection. Russia made getting electricity simpler and less costly by DB2014 Russian Federation setting standard connection tariffs and eliminating many procedures previously required. Russia made dealing with construction permits easier by eliminating several requirements for project approvals from DB2014 Russian Federation government agencies and by reducing the time required to register a new building. Ukraine made dealing with construction permits easier by introducing a risk-based approval system, eliminating DB2014 Ukraine requirements for certain approvals and technical conditions and simplifying the process for registering real estate ownership rights. Montenegro made dealing with construction permits easier DB2014 Montenegro by introducing a one-stop shop and imposing strict time limits for the issuance of approvals. Romania made enforcing contracts easier by adopting a new DB2014 Romania civil procedure code that streamlines and speeds up all court proceedings. Uzbekistan made enforcing contracts easier by introducing an DB2014 Uzbekistan electronic filing system for court users. Ukraine made resolving insolvency easier by strengthening the rights of secured creditors, introducing new rehabilitation DB2014 Ukraine procedures and mechanisms, making it easier to invalidate suspect transactions and shortening the statutory periods for several steps of the insolvency process. Romania made paying taxes easier and less costly for companies by reducing the payment frequency for the firm DB2014 Romania tax from quarterly to twice a year and by reducing the vehicle tax rate. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 459 DB year Economy Reform Tajikistan made paying taxes easier and less costly for companies by reducing the corporate income tax rate, DB2014 Tajikistan merging the minimal income tax with the corporate income tax and abolishing the retail sales tax. At the same time, Tajikistan increased the land and vehicle tax rates. Ukraine made paying taxes easier for companies by DB2014 Ukraine simplifying tax returns and further improving its electronic filing system. Serbia made paying taxes more costly for companies by DB2014 Serbia increasing the corporate income tax. Uzbekistan made paying taxes easier for companies by DB2014 Uzbekistan eliminating some small taxes. Montenegro made registering property easier by introducing DB2014 Montenegro a notary system. Ukraine made transferring property easier by streamlining DB2014 Ukraine procedures and revamping the property registration system. Uzbekistan made transferring property easier by reducing the DB2014 Uzbekistan notary fees. Russia made transferring property easier by streamlining DB2014 Russian Federation procedures and implementing effective time limits for processing transfer applications. Russia made starting a business easier by abolishing the DB2014 Russian Federation requirement to have the bank signature card notarized before opening a company bank account. Uzbekistan made starting a business easier by abolishing the paid-in minimum capital requirement and by eliminating the DB2014 Uzbekistan requirement to have signature samples notarized before opening a bank account. Tajikistan made starting a business more difficult by requiring DB2014 Tajikistan preliminary approval from the tax authority and the submission of additional documents at registration. Ukraine made starting a business easier by eliminating the DB2014 Ukraine requirement for registration with the statistics authority and by eliminating the cost for value added tax registration. Romania made starting a business easier by transferring responsibility for issuing the headquarters clearance DB2014 Romania certificate from the Fiscal Administration Office to the Trade Registry. DB2014 Uzbekistan Uzbekistan made trading across borders easier by eliminating Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 460 DB year Economy Reform the need to register import contracts with customs, tightening the time limits for banks to register export or import contracts and reducing the number of export documents required. Russia made trading across borders easier by implementing an electronic system for submitting export and import DB2014 Russian Federation documents and by reducing the number of physical inspections. Ukraine made trading across borders easier by releasing DB2014 Ukraine customs declarations more quickly and reducing the number of physical inspections. Georgia improved its credit information system by DB2014 Georgia implementing a new law on personal data protection. FYR Macedonia strengthened its secured transactions system by providing more flexibility on the description of assets in a DB2014 Macedonia, FYR collateral agreement and on the types of debts and obligations that can be secured. Lithuania strengthened its secured transactions system by broadening the range of movable assets that can be used as collateral, DB2014 Lithuania allowing a general description in the security agreement of the assets pledged as collateral and permitting out-of-court enforcement. Latvia improved its credit information system by adopting a DB2014 Latvia new law regulating the public credit registry. FYR Macedonia made getting electricity easier by reducing the time required to obtain a new connection and by setting DB2014 Macedonia, FYR fixed connection fees per kilowatt (kW) for connections requiring a capacity below 400 kW. FYR Macedonia made dealing with construction permits easier by reducing the time required to register a new DB2014 Macedonia, FYR building and by authorizing the municipality to register the building on behalf of the owner. Kosovo made dealing with construction permits easier by eliminating the requirement for validation of the main DB2014 Kosovo construction project, eliminating fees for technical approvals from the municipality and reducing the building permit fee. Latvia made dealing with construction permits easier by introducing new time limits for issuing a building permit and DB2014 Latvia by eliminating the Public Health Agency’s role in approving building permits and conducting inspections. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 461 DB year Economy Reform FYR Macedonia made paying taxes easier for companies by DB2014 Macedonia, FYR encouraging the use of electronic filing and payment systems for corporate income and value added taxes. FYR Macedonia strengthened investor protections by allowing shareholders to request the rescission of unfair DB2014 Macedonia, FYR related-party transactions and the appointment of an auditor to investigate alleged irregularities in the company’s activities. Kazakhstan made it easier to transfer property by introducing DB2014 Kazakhstan a fast-track procedure for property registration. Kosovo made transferring property easier by introducing a DB2014 Kosovo new notary system and by combining procedures for drafting and legalizing sale and purchase agreements. FYR Macedonia made property registration faster and less DB2014 Macedonia, FYR costly by digitizing the real estate cadastre and eliminating the requirement for an encumbrance certificate. Lithuania made starting a business easier by creating a new DB2014 Lithuania form of limited liability company with no minimum capital requirement. Latvia made starting a business easier by making it possible to file the applications for company registration and value DB2014 Latvia added tax registration simultaneously at the commercial registry. Kosovo made starting a business easier by creating a one- DB2014 Kosovo stop shop for incorporation. Kazakhstan made starting a business easier by reducing the DB2014 Kazakhstan time it takes to register a company at the Public Registration Center. Latvia made trading across borders easier by reducing the DB2014 Latvia number of documents required for importing. Croatia made enforcing contracts easier by streamlining DB2014 Croatia litigation proceedings and transferring certain enforcement procedures from the courts to state agencies. Croatia made resolving insolvency easier by introducing an DB2014 Croatia expedited out-of-court restructuring procedure. Croatia made paying taxes easier for companies by introducing an electronic system for social security DB2014 Croatia contributions and by reducing the rates for the forest and Chamber of Commerce contributions. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 462 DB year Economy Reform Croatia made starting a business easier by introducing a new DB2014 Croatia form of limited liability company with a lower minimum capital requirement and simplified incorporation procedures. Croatia made trading across borders easier by improving the physical and information system infrastructure at the port of DB2014 Croatia Rijeka and by streamlining export customs procedures in preparation for accession to the Common Transit Convention of the European Union. Belarus made getting electricity easier by speeding up the process of issuing technical specifications and excavation DB2014 Belarus permits and by reducing the time needed to connect to the electricity network. Belarus improved its insolvency process through a new insolvency law that, among other things, changes the appointment process for insolvency administrators and DB2014 Belarus encourages the sale of assets in insolvency. The law also regulates the liability of shareholders and directors of the insolvent company. Bulgaria made resolving insolvency easier by expanding the DB2014 Bulgaria basis for commencement of insolvency proceedings and making it easier to void suspect transactions. Bosnia and Herzegovina introduced a penalty for failure to employ the required minimum number of people with DB2014 Bosnia and Herzegovina disabilities—though it also temporarily abolished the forestry tax. Belarus made transferring property easier by introducing a DB2014 Belarus fast-track procedure for property registration. Belarus made starting a business easier by reducing the DB2014 Belarus registration fees and eliminating the requirement for an initial capital deposit at a bank before registration. Albania made paying taxes easier by allowing corporate DB2014 Albania income tax to be paid quarterly. Azerbaijan adopted a new construction code that streamlined DB2014 Azerbaijan procedures relating to the issuance of building permits and established official time limits for some procedures. Armenia made paying taxes easier by merging the employee DB2014 Armenia and employer social contributions and individual income tax into one unified income tax. Armenia made starting a business easier by eliminating the DB2014 Armenia company registration fees. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 463 DB year Economy Reform Azerbaijan made starting a business easier by introducing DB2014 Azerbaijan free online registration services and eliminating preregistration formalities. Azerbaijan made trading across borders easier by DB2014 Azerbaijan streamlining internal customs procedures. Albania made starting a business easier by making the DB2013 Albania notarization of incorporation documents optional. Albania made paying taxes easier for companies by DB2013 Albania abolishing the vehicle tax and encouraging electronic filing for taxes. Armenia strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Armenia transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Armenia made getting electricity easier by streamlining DB2013 Armenia procedures and reducing connection fees. Belarus made starting a business more difficult by increasing DB2013 Belarus the cost of business registration and the cost to obtain a company seal. Bulgaria made starting a business easier by reducing the cost DB2013 Bulgaria of registration. Bosnia and Herzegovina made access to credit information DB2013 Bosnia and Herzegovina more difficult by stopping the private credit bureau’s collection of credit information on individuals. Bosnia and Herzegovina made it easier to transfer property DB2013 Bosnia and Herzegovina between companies by computerizing the commercial registry. Belarus made paying taxes easier and less costly for DB2013 Belarus companies by reducing the profit tax rate and encouraging the use of electronic filing and payment systems. Bosnia and Herzegovina eased the administrative burden of DB2013 Bosnia and Herzegovina filing and paying social security contributions by implementing electronic filing and payment systems. Belarus enhanced its insolvency process by exempting the previously state-owned property of a privatized company from the bankruptcy proceeding, requiring that immovable DB2013 Belarus property not sold in the auction be offered to creditors for purchase and allowing immovable property to be sold without proof of state registration in a bankruptcy auction if Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 464 DB year Economy Reform there are no funds to pay for the registration. Cyprus made property transfers faster by computerizing its DB2013 Cyprus land registry. Croatia made paying taxes less costly for companies by DB2013 Croatia reducing the health insurance contribution rate. Cyprus made paying taxes more costly for companies by increasing the special defense contribution rate on interest income and introducing a private sector special contribution DB2013 Cyprus and a fixed annual fee for companies registered in Cyprus. At the same time, it simplified tax compliance by introducing electronic filing for corporate income tax. Kosovo made starting a business easier by eliminating the DB2013 Kosovo minimum capital requirement and business registration fee and streamlining the business registration process. FYR Macedonia made starting a business easier by simplifying DB2013 Macedonia, FYR the process for obtaining a company seal. Lithuania made starting a business easier by introducing online registration for limited liability companies and DB2013 Lithuania eliminating the notarization requirement for incorporation documents. Kazakhstan made starting a business easier by eliminating the DB2013 Kazakhstan requirement to pay in minimum capital within 3 months after incorporation. DB2013 Kosovo Kosovo introduced a minimum wage. Latvia eliminated notification requirements to third parties in DB2013 Latvia cases of redundancy dismissal. Georgia strengthened its secured transactions system through an amendment to the civil code allowing a security DB2013 Georgia interest to extend to the products, proceeds and replacement of collateral. Kazakhstan strengthened secured creditor rights by DB2013 Kazakhstan introducing new grounds for relief from an automatic stay during rehabilitation proceedings. Kosovo strengthened investor protections by introducing a requirement for shareholder approval of related-party DB2013 Kosovo transactions, requiring greater disclosure of such transactions in the annual report and making it easier to sue directors when such transactions are prejudicial. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 465 DB year Economy Reform Georgia made paying taxes easier for companies by DB2013 Georgia enhancing the use of electronic systems and providing more services to taxpayers. Georgia made enforcing contracts easier by simplifying and DB2013 Georgia speeding up the proceedings for commercial disputes. Georgia reduced the time to export and import by creating DB2013 Georgia customs clearance zones. Georgia expedited the process of resolving insolvency by DB2013 Georgia establishing or tightening time limits for all insolvency-related procedures, including auctions. Kazakhstan strengthened its insolvency process by introducing an accelerated rehabilitation proceeding, extending the period for rehabilitation, expanding the powers of and improving qualification requirements for insolvency DB2013 Kazakhstan administrators, changing requirements for bankruptcy filings, extending the rights of creditors, changing regulations related to the continuation of operations, introducing a time limit for adopting a rehabilitation plan and adding court supervision requirements. Lithuania made resolving insolvency easier by establishing which cases against the company’s property shall be taken to the bankruptcy court, tightening the time frame for decisions DB2013 Lithuania on appeals, abolishing the court’s obligation to individually notify creditors and other stakeholders about restructuring proceedings and setting new time limits for creditors to file claims. Serbia made enforcing contracts easier by introducing a DB2013 Serbia private bailiff system. Uzbekistan reduced the time to export by introducing a single DB2013 Uzbekistan window for customs clearance and reduced the number of documents needed for each import transaction. Uzbekistan strengthened its insolvency process by introducing new time limits for insolvency proceedings and DB2013 Uzbekistan new time limits and procedures for the second auction and by making it possible for businesses to continue operating throughout the liquidation proceeding. Serbia strengthened its insolvency process by introducing private bailiffs, reducing the starting prices for the sale of DB2013 Serbia assets, prohibiting appeals, expediting service of process and adopting an electronic registry for injunctions to make public all prohibitions on the disposal or pledge of movable or Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 466 DB year Economy Reform immovable property. Turkey made dealing with construction permits easier by eliminating the requirement to build a shelter in DB2013 Turkey nonresidential buildings with a total area of less than 1,500 square meters. Moldova strengthened investor protections by allowing the DB2013 Moldova rescission of prejudicial related-party transactions. Georgia made getting electricity easier by simplifying the DB2013 Georgia process of connecting new customers to the distribution network and reducing connection fees. Montenegro made construction permitting less costly by DB2013 Montenegro reducing the cost of pre-construction and post-construction procedures Russia made obtaining a construction permit simpler by DB2013 Russian Federation eliminating requirements for several preconstruction approvals. Montenegro lowered redundancy costs—though it also DB2013 Montenegro reduced the maximum duration of fixed-term contracts and increased paid annual leave. Ukraine made property transfers faster by introducing an DB2013 Ukraine effective time limit for processing transfer applications at the land cadastre in Kiev. Romania made starting a business easier by reducing the DB2013 Romania time required to obtain a clearance certificate from the fiscal administration agency. Serbia made starting a business easier by eliminating the DB2013 Serbia paid-in minimum capital requirement. Uzbekistan made starting a business easier by introducing an DB2013 Uzbekistan online facility for name reservation and eliminating the fee to open a bank account for small businesses. Ukraine made starting a business easier by eliminating the minimum capital requirement for company incorporation as DB2013 Ukraine well as the requirement to have incorporation documents notarized. Uzbekistan improved access to credit information by DB2013 Uzbekistan guaranteeing borrowers’ right to inspect their personal data. Montenegro improved access to credit information by DB2013 Montenegro guaranteeing borrowers’ right to inspect their personal data. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 467 DB year Economy Reform Romania strengthened its legal framework for secured transactions by allowing the automatic extension of security DB2013 Romania interests to the products, proceeds and replacement of collateral. Tajikistan strengthened investor protections by making it DB2013 Tajikistan easier to sue directors in cases of prejudicial related-party transactions. Russia eased the administrative burden of taxes for firms by simplifying compliance procedures for value added tax and DB2013 Russian Federation by promoting the use of tax accounting software and electronic services. Ukraine made paying taxes easier by implementing electronic DB2013 Ukraine filing and payment for medium-size and large enterprises. Moldova made paying taxes more costly for companies by reintroducing the corporate income tax—but also made tax DB2013 Moldova compliance easier by encouraging electronic filing and payment. Turkey made enforcing contracts easier by introducing a new DB2013 Turkey civil procedure law. Moldova made the process of enforcing a contract more DB2013 Moldova difficult by abolishing the specialized economic court. Moldova strengthened its insolvency process by extending DB2013 Moldova the duration of the reorganization proceeding and refining the qualification requirements for insolvency administrators. Turkey lowered the social security contribution rate for DB2012 Turkey companies by offering them a 5% rebate Moldova amended its insolvency law to grant priority to DB2012 Moldova secured creditors. Moldova made enforcement of judgments more efficient by DB2012 Moldova introducing private bailiffs. Ukraine made trading across borders more difficult by DB2012 Ukraine introducing additional inspections for customs clearance of imports. Russia made trading across borders easier by reducing the DB2012 Russian Federation number of documents needed for each export or import transaction and lowering the associated cost. Montenegro made paying taxes easier and less costly for DB2012 Montenegro firms by abolishing a tax, reducing the social security contribution rate and merging several returns into a single Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 468 DB year Economy Reform unified one. Romania made paying taxes easier for companies by introducing an electronic payment system and a unified DB2012 Romania return for social security contributions. It also abolished the annual minimum tax. Ukraine made paying taxes easier and less costly for firms by DB2012 Ukraine revising and unifying tax legislation, reducing corporate income tax rates and unifying social security contributions. Russia increased the social security contribution rate for DB2012 Russian Federation employers. Access to credit using movable property in Tajikistan became DB2012 Tajikistan more complicated because the movable collateral registry stopped its operations in January, 2011. Serbia made transferring property quicker by offering an DB2012 Serbia expedited option. Russia made registering property transfers easier by DB2012 Russian Federation eliminating the requirement to obtain cadastral passports on land plots. Romania increased the maximum duration of fixed-term DB2012 Romania contracts and also decreased the severance pay applicable in case of redundancy dismissal of employees. Moldova improved its credit information system by DB2012 Moldova establishing its first private credit bureau. Russian Federation made getting electricity less costly by DB2012 Russian Federation revising the tariffs for connection. Ukraine amended legislation to streamline commercial DB2012 Ukraine dispute resolution and increase the efficiency of enforcement procedures. Russia made filing a commercial case easier by introducing an DB2012 Russian Federation electronic case filing system. Serbia adopted legislation introducing professional DB2012 Serbia requirements for insolvency administrators and regulating their compensation. Romania amended its insolvency law to shorten the duration DB2012 Romania of insolvency proceedings. Montenegro passed a new bankruptcy law that introduces DB2012 Montenegro reorganization and liquidation proceedings, introduces time limits for these proceedings and provides for the possibility of Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 469 DB year Economy Reform recovery of secured creditors’ claims and settlement before completion of the entire bankruptcy procedure. Ukraine amended its legislation on enforcement, introducing DB2012 Ukraine more guarantees for secured creditors. Turkey made starting a business less costly by eliminating DB2012 Turkey notarization fees for the articles of association and other documents. Moldova made starting a business easier by implementing a DB2012 Moldova one-stop shop. Latvia made getting electricity faster by introducing a DB2012 Latvia simplified process for approval of external connection designs. Lithuania made getting electricity more difficult by abolishing DB2012 Lithuania the one-stop shop for obtaining technical conditions for utility services. Latvia adopted a new insolvency law that streamlines and DB2012 Latvia expedites the insolvency process and introduces a reorganization option for companies. Lithuania amended its reorganization law to simplify and shorten reorganization proceedings, grant priority to secured DB2012 Lithuania creditors and introduce professional requirements for insolvency administrators. FYR Macedonia increased the transparency of bankruptcy DB2012 Macedonia, FYR proceedings through amendments to its company and bankruptcy laws. Georgia made paying taxes easier for firms by simplifying the DB2012 Georgia reporting for value added tax and introducing electronic filing and payment of taxes. The Kyrgyz Republic made paying taxes costlier for firms by DB2012 Kyrgyz Republic introducing a real estate tax, though it also reduced the sales tax rate. Georgia expanded access to credit by amending its civil code DB2012 Georgia to broaden the range of assets that can be used as collateral. FYR Macedonia improved its credit information system by DB2012 Macedonia, FYR establishing a private credit bureau. Kazakhstan strengthened investor protections by regulating the approval of transactions between interested parties and DB2012 Kazakhstan making it easier to sue directors in cases of prejudicial transactions between interested parties. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 470 DB year Economy Reform Georgia strengthened investor protections by introducing DB2012 Georgia requirements relating to the approval of transactions between interested parties. Lithuania strengthened investor protections by introducing DB2012 Lithuania greater requirements for corporate disclosure to the public and in the annual report. FYR Macedonia made registering property easier by reducing DB2012 Macedonia, FYR notary fees and enforcing time limits. Latvia made transferring property easier by allowing electronic access to municipal tax databases that show the tax DB2012 Latvia status of property, eliminating the requirement to obtain this information in paper format. Georgia simplified business start-up by eliminating the DB2012 Georgia requirement to visit a bank to pay the registration fees. Latvia made starting a business easier by reducing the DB2012 Latvia minimum capital requirement and introducing a common application for value added tax and company registration. FYR Macedonia made dealing with construction permits DB2012 Macedonia, FYR easier by transferring oversight processes to the private sector and streamlining procedures. Kosovo increased the premium for night work as well as the DB2012 Kosovo days of annual leave. In addition, Kosovo decreased the notice period applicable in cases of redundancy dismissals. Lithuania allowed fixed-term contracts to be concluded for DB2012 Lithuania permanent tasks (until 31 July 2012). Ukraine made starting a business easier by eliminating the DB2012 Ukraine requirement to obtain approval for a new corporate seal. Uzbekistan made starting a business easier by reducing the DB2012 Uzbekistan minimum capital requirement, eliminating 1 procedure and reducing the cost of registration. Tajikistan made starting a business easier by allowing entrepreneurs to pay in their capital up to 1 year after the DB2012 Tajikistan start of operations, thereby eliminating the requirements related to opening a bank account. Romania made starting a business more difficult by requiring DB2012 Romania a tax clearance certificate for a new company’s headquarters before company registration. Montenegro made starting a business easier by DB2012 Montenegro implementing a one-stop shop. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 471 DB year Economy Reform In Croatia the private credit bureau started to collect and DB2012 Croatia distribute information on firms, improving the credit information system. Cyprus strengthened investor protections by requiring DB2012 Cyprus greater corporate disclosure to the board of directors, to the public and in the annual report. Bulgaria amended its commerce act to extend further rights DB2012 Bulgaria to secured creditors and increase the transparency of insolvency proceedings. Bulgaria made trading across borders faster by introducing DB2012 Bulgaria online submission of customs declaration forms. Belarus modified its code of economic procedure, altering DB2012 Belarus the time frames for commercial dispute resolution. Bulgaria made access to credit information more difficult by DB2012 Bulgaria stopping the distribution of credit reports to financial institutions by the private credit bureau (Experian). Belarus abolished several taxes, including turnover and sales taxes, and simplified compliance with corporate income, value DB2012 Belarus added and other taxes by reducing the frequency of filings and payments and facilitating electronic filing and payment. Belarus strengthened investor protections by introducing DB2012 Belarus requirements for greater corporate disclosure to the board of directors and to the public. Bosnia and Herzegovina made dealing with construction DB2012 Bosnia and Herzegovina permits easier by fully digitizing and revamping its land registry and cadastre. Bosnia and Herzegovina made starting a business easier by replacing the required utilization permit with a simple DB2012 Bosnia and Herzegovina notification of commencement of activities and by streamlining the process for obtaining a tax identification number. Belarus simplified property transfer by doing away with the DB2012 Belarus requirement to obtain the municipality’s approval for transfers of most commercial buildings in Minsk. Armenia amended its bankruptcy law to clarify procedures for appointing insolvency administrators, reduce the processing DB2012 Armenia time for bankruptcy proceedings and regulate asset sales by auction. Armenia made tax compliance easier for firms by reducing DB2012 Armenia the number of payments for social security contributions and Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 472 DB year Economy Reform corporate income, property and land taxes and by introducing mandatory electronic filing and payment for major taxes. Armenia improved its credit information system by DB2012 Armenia introducing a requirement to collect and distribute information from utility companies. Armenia made starting a business easier by establishing a one-stop shop that merged the procedures for name DB2012 Armenia reservation, business registration and obtaining a tax identification number and by allowing for online company registration. Armenia made dealing with construction permits easier by DB2012 Armenia eliminating the requirement to obtain an environmental impact assessment for small projects. Armenia increased the maximum duration of fixed-term contracts, reduced the premium applicable in case of night DB2012 Armenia work as well as decreased the notice period and the severance pay applicable in case of redundancy dismissals. In Albania dealing with construction permits became more DB2012 Albania difficult because the main authority in charge of issuing building permits has not met since April 2009. Albania made property registration easier by setting time DB2012 Albania limits for the land registry to register a title. Albania made it easier and less costly for companies to pay DB2011 Albania taxes by amending several laws, reducing social security contributions and introducing electronic filing and payment. Azerbaijan improved access to credit by establishing an DB2011 Azerbaijan online platform allowing financial institutions to provide information to, and retrieve it from, the public credit registry. A revision of Azerbaijan’s tax code lowered several tax rates, DB2011 Azerbaijan including the profit tax rate, and simplified the process of paying corporate income tax and value added tax. Armenia made trading easier by introducing self-declaration desks at customs houses and warehouses, investing in new DB2011 Armenia equipment to improve border operations and introducing a risk management system. Bulgaria eased business start-up by reducing the minimum DB2011 Bulgaria capital requirement from 5,000 leva ($3,250) to 2 leva ($1.30). Bosnia and Herzegovina reduced delays in property DB2011 Bosnia and Herzegovina registration at the land registry in Sarajevo. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 473 DB year Economy Reform Bulgaria reduced employer contribution rates for social DB2011 Bulgaria security. Reductions in the turnover tax, social security contributions and the base for property taxes along with continued efforts DB2011 Belarus to encourage electronic filing made it easier and less costly for companies in Belarus to pay taxes. Bosnia and Herzegovina simplified its labor tax processes, DB2011 Bosnia and Herzegovina reduced employer contribution rates for social security and abolished its payroll tax. Belarus enhanced access to credit by facilitating the use of DB2011 Belarus the pledge as a security arrangement and providing for out- of-court enforcement of the pledge on default. Belarus amended regulations governing the activities of DB2011 Belarus insolvency administrators and strengthened the protection of creditor rights in bankruptcy. Belarus reduced the time to trade by introducing electronic DB2011 Belarus declaration of exports and imports. Cyprus improved access to credit information by establishing DB2011 Cyprus its first private credit bureau. Croatia made paying taxes more difficult and costly for DB2011 Croatia companies by introducting a tourist fee. Croatia eased business start-up by allowing limited liability DB2011 Croatia companies to file their registration application with the court registries electronically through the notary public. Croatia replaced the location permit and project design DB2011 Croatia confirmation with a single certificate, simplifying and speeding up the construction permitting process. DB2011 Croatia Croatia increased the mandatory paid annual leave. Montenegro eliminated several procedures for business start- DB2011 Montenegro up by introducing a single registration form for submission to the tax administration. Tajikistan made starting a business easier by creating a one- DB2011 Tajikistan stop shop that consolidates registration with the state and the tax authority. Ukraine eased business start-up by substantially reducing the DB2011 Ukraine minimum capital requirement. Kazakhstan made dealing with construction permits easier by DB2011 Kazakhstan implementing a one-stop shop related to technical conditions Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 474 DB year Economy Reform for utilities. The Kyrgyz Republic eased business start-up by eliminating DB2011 Kyrgyz Republic the requirement to have the signatures of company founders notarized. Kosovo made business start-up more difficult by replacing the tax number previously required with a “fiscal number,” DB2011 Kosovo which takes longer to issue and requires the tax administration to first inspect the business premises. Lithuania tightened the time limit for completing the DB2011 Lithuania registration of a company. FYR Macedonia made it easier to start a business by further DB2011 Macedonia, FYR improving its one-stop shop. Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the DB2011 Kazakhstan need to have the memorandum of association and company charter notarized. Lithuania’s private credit bureau now collects and distributes DB2011 Lithuania positive information on borrowers. Georgia improved access to credit by implementing a central DB2011 Georgia collateral registry with an electronic database accessible online. Georgia strengthened investor protections by allowing DB2011 Georgia greater access to corporate information during the trial. Kazakhstan strengthened investor protections by requiring DB2011 Kazakhstan greater corporate disclosure in company annual reports. DB2011 Lithuania Lithuania reduced corporate tax rates. FYR Macedonia lowered tax costs for businesses by requiring DB2011 Macedonia, FYR that corporate income tax be paid only on distributed profits. Georgia made the enforcement of contracts easier by streamlining the procedures for public auctions, introducing DB2011 Georgia private enforcement officers and modernizing its dispute resolution system. Georgia improved insolvency proceedings by streamlining the DB2011 Georgia regulation of auction sales. Lithuania introduced regulations relating to insolvency DB2011 Lithuania administrators that set out clear rules of liability for violations of law. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 475 DB year Economy Reform The Kyrgyz Republic streamlined insolvency proceedings and updated requirements for administrators, but new formalities DB2011 Kyrgyz Republic added to prevent abuse of proceedings made closing a business more difficult. Latvia introduced a mechanism for out-of-court settlement of DB2011 Latvia insolvencies to alleviate pressure on courts and tightened some procedural deadlines. Latvia reduced the time to export and import by introducing DB2011 Latvia electronic submission of customs declarations. Lithuania reduced the time to import by introducing, in DB2011 Lithuania compliance with EU law, an electronic system for submitting customs declarations. Kazakhstan speeded up trade through efforts to modernize DB2011 Kazakhstan customs, including implementation of a risk management system and improvements in customs automation. Russia introduced a series of legislative measures in 2009 to DB2011 Russian Federation improve creditor rights and the insolvency system. Substantial amendments to Romania’s bankruptcy laws— DB2011 Romania introducing, among other things, a procedure for out-of- court workouts—made dealing with insolvency easier. Serbia passed a new bankruptcy law that introduced out-of- DB2011 Serbia court workouts and a unified reorganization procedure. Moldova reduced employer contribution rates for social DB2011 Moldova security. Romania amended regulations related to construction DB2011 Romania permitting to reduce fees and expedite the process. Uzbekistan increased all fees for procedures relating to DB2011 Uzbekistan construction permits. Ukraine made dealing with construction permits easier by DB2011 Ukraine implementing national and local regulations that streamlined procedures. Russia eased construction permitting by implementing a DB2011 Russian Federation single window for all procedures related to land use. Montenegro’s customs administration simplified trade by DB2011 Montenegro eliminating the requirement to present a terminal handling receipt for exporting and importing. Ukraine eased tax compliance by introducing and continually DB2011 Ukraine enhancing an electronic filing system for value added tax. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 476 DB year Economy Reform Romania introduced tax changes, including a new minimum DB2011 Romania tax on profit, that made paying taxes more costly for companies. An amendment to Montenegro’s corporate income tax law DB2011 Montenegro removed the obligation for advance payments and abolished the construction land charge. DB2011 Tajikistan Tajikistan lowered its corporate income tax rate. Tajikistan strengthened investor protections by requiring DB2011 Tajikistan greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. Source: Doing Business database. Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 477 DISTANCE TO FRONTIER AND EASE OF DOING BUSINESS RANKING Doing Business presents results for two aggregate even though it is no longer at the frontier in a measures: the distance to frontier score and the ease of subsequent year. doing business ranking, which is based on the distance For scores such as those on the strength of legal rights to frontier score. The ease of doing business ranking index or the quality of land administration index, the compares economies with one another; the distance to frontier is set at the highest possible value. For the total frontier score benchmarks economies with respect to tax rate, consistent with the use of a threshold in regulatory best practice, showing the absolute distance calculating the rankings on this indicator, the frontier is to the best performance on each Doing Business defined as the total tax rate at the 15th percentile of the indicator. When compared across years, the distance to overall distribution for all years included in the analysis frontier score shows how much the regulatory up to and including Doing Business 2015. For the time to environment for local entrepreneurs in an economy has pay taxes the frontier is defined as the lowest time changed over time in absolute terms, while the ease of recorded among all economies that levy the three major doing business ranking can show only how much the taxes: profit tax, labor taxes and mandatory regulatory environment has changed relative to that in contributions, and value added tax (VAT) or sales tax. For other economies. the different times to trade across borders, the frontier is defined as 1 hour even though in many economies the Distance to Frontier time is less than that. The distance to frontier score captures the gap between In the same formulation, to mitigate the effects of an economy’s performance and a measure of best extreme outliers in the distributions of the rescaled data practice across the entire sample of 36 indicators for 10 for most component indicators (very few economies Doing Business topics (the labor market regulation need 700 days to complete the procedures to start a indicators are excluded). For starting a business, for business, but many need 9 days), the worst performance example, the former Yugoslav Republic of Macedonia is calculated after the removal of outliers. The definition and New Zealand have the smallest number of of outliers is based on the distribution for each procedures required (1), and New Zealand the shortest component indicator. To simplify the process two rules time to fulfill them (0.5 days). Slovenia has the lowest were defined: the 95th percentile is used for the cost (0.0), and Australia, Colombia and 103 other indicators with the most dispersed distributions economies have no paid-in minimum capital (including minimum capital, number of payments to pay requirement (table 14.1 in the Doing Business 2017 taxes, and the time and cost indicators), and the 99th report). percentile is used for number of procedures. No outlier is Calculation of the distance to frontier score removed for component indicators bound by definition Calculating the distance to frontier score for each or construction, including legal index scores (such as the depth of credit information index, extent of conflict of economy involves two main steps. In the first step interest regulation index and strength of insolvency individual component indicators are normalized to a common unit where each of the 36 component framework index) and the recovery rate (figure 14.1). indicators y (except for the total tax rate) is rescaled In the second step for calculating the distance to frontier using the linear transformation (worst − y)/(worst − score, the scores obtained for individual indicators for frontier). In this formulation the frontier represents the each economy are aggregated through simple averaging best performance on the indicator across all economies into one distance to frontier score, first for each topic since 2005 or the third year in which data for the and then across all 10 topics: starting a business, dealing indicator were collected. Both the best performance and with construction permits, getting electricity, registering the worst performance are established every five years property, getting credit, protecting minority investors, based on the Doing Business data for the year in which paying taxes, trading across borders, enforcing contracts they are established, and remain at that level for the five and resolving insolvency. More complex aggregation years regardless of any changes in data in interim years. methods—such as principal components and Thus an economy may set the frontier for an indicator unobserved components—yield a ranking nearly Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 478 identical to the simple average used by Doing Business3. than it would have had before (line D is bigger than line Thus Doing Business uses the simplest method: C in figure 14.2 of the Doing Business 2017 report). weighting all topics equally and, within each topic, giving The nonlinear transformation is not based on any equal weight to each of the topic components 4. economic theory of an “optimal tax rate” that minimizes An economy’s distance to frontier score is indicated on a distortions or maximizes efficiency in an economy’s scale from 0 to 100, where 0 represents the worst overall tax system. Instead, it is mainly empirical in performance and 100 the frontier. All distance to frontier nature. The nonlinear transformation along with the calculations are based on a maximum of five decimals. threshold reduces the bias in the indicator toward However, indicator ranking calculations and the ease of economies that do not need to levy significant taxes on doing business ranking calculations are based on two companies like the Doing Business standardized case decimals. study company because they raise public revenue in other ways—for example, through taxes on foreign The difference between an economy’s distance to companies, through taxes on sectors other than frontier score in any previous year and its score in 2015 manufacturing or from natural resources (all of which are illustrates the extent to which the economy has closed outside the scope of the methodology). In addition, it the gap to the regulatory frontier over time. And in any acknowledges the need of economies to collect taxes given year the score measures how far an economy is from firms. from the best performance at that time. Calculation of scores for economies with 2 cities Treatment of the total tax rate covered The total tax rate component of the paying taxes For each of the 11 economies in which Doing Business indicator set enters the distance to frontier calculation in collects data for the second largest business city as well a different way than any other indicator. The distance to as the largest one, the distance to frontier score is frontier score obtained for the total tax rate is calculated as the population-weighted average of the transformed in a nonlinear fashion before it enters the distance to frontier scores for these two cities (table distance to frontier score for paying taxes. As a result of 13.1). This is done for the aggregate score, the scores for the nonlinear transformation, an increase in the total tax each topic and the scores for all the component rate has a smaller impact on the distance to frontier indicators for each topic. score for the total tax rate—and therefore on the distance to frontier score for paying taxes—for economies with a below-average total tax rate than it would have had before this approach was adopted in Doing Business 2015 (line B is smaller than line A in figure 14.2 of the Doing Business 2017 report). And for economies with an extreme total tax rate (a rate that is very high relative to the average), an increase has a greater impact on both these distance to frontier scores 3 See Djankov, Manraj and others (2005). Principal components and unobserved components methods yield a ranking nearly identical to that from the simple average method because both these methods assign roughly equal weights to the topics, since the pairwise correlations among indicators do not differ much. An alternative to the simple average method is to give different weights to the topics, depending on which are considered of more or less importance in the context of a specific economy. 4 For getting credit, indicators are weighted proportionally, according to their contribution to the total score, with a weight of 60% assigned to the strength of legal rights index and 40% to the depth of credit information index. Indicators for all other topics are assigned equal weights Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 479 Table 13.1 Weights used in calculating the distance to implemented regulatory reforms making it easier to do frontier scores for economies with 2 cities covered business in 3 or more of the 10 topics included in this year’s aggregate distance to frontier score. Changes Economy City Weight (%) making it more difficult to do business are subtracted Dhaka 78 Bangladesh from the total number of those making it easier to do Chittagong 22 São Paulo 61 business. Twenty-four economies meet this criterion: Brazil Armenia; Azerbaijan; Benin; Costa Rica; Côte d’Ivoire; Rio de Janeiro 39 Shanghai 55 Cyprus; Hong Kong SAR, China; Indonesia; Jamaica; China Beijing 45 Kazakhstan; Kenya; Lithuania; Madagascar; Mauritania; Mumbai 47 Morocco; Romania; the Russian Federation; Rwanda; India Delhi 53 Senegal; Togo; Uganda; the United Arab Emirates; Jakarta 78 Uzbekistan; and Vietnam. Second, Doing Business sorts Indonesia Surabaya 22 these economies on the increase in their distance to Tokyo 65 Japan frontier score from the previous year using comparable Osaka 35 data. Mexico City 83 Mexico Monterrey 17 Selecting the economies that implemented regulatory Lagos 77 reforms in at least three topics and had the biggest Nigeria Kano 23 improvements in their distance to frontier scores is Karachi 65 intended to highlight economies with ongoing, broad- Pakistan Lahore 35 based reform programs. The improvement in the Moscow 70 Russian Federation distance to frontier score is used to identify the top St. Petersburg 30 New York 60 improvers because this allows a focus on the absolute United States improvement—in contrast with the relative improvement Los Angeles 40 Source: United Nations, Department of Economic and Social shown by a change in rankings—that economies have Affairs, Population Division, World Urbanization Prospects, made in their regulatory environment for business. 2014 Revision. http://esa.un.org/unpd/wup/CD- ROM/Default.aspx. Ease of Doing Business ranking Economies that improved the most across 3 or more The ease of doing business ranking ranges from 1 to 190. Doing Business topics in 2014/15 The ranking of economies is determined by sorting the Doing Business 2017 uses a simple method to calculate aggregate distance to frontier scores, rounded to 2 decimals. which economies improved the ease of doing business the most. First, it selects the economies that in 2014/15 Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 480 RESOURCES ON THE DOING BUSINESS WEBSITE Current features Law library News on the Doing Business project Online collection of business laws and regulations http://www.doingbusiness.org relating to business http://www.doingbusiness.org/law-library Rankings How economies rank—from 1 to 190 Contributors http://www.doingbusiness.org/rankings More than 12,500 specialists in 190 economies who participate in Doing Business Data http://www.doingbusiness.org/contributors/doing- All the data for 190 economies—topic rankings, business indicator values, lists of regulatory procedures and details underlying indicators Entrepreneurship data http://www.doingbusiness.org/data Data on business density (number of newly registered companies per 1,000 working-age Reports people) for 136 economies Access to Doing Business reports as well as http://www.doingbusiness.org/data/exploretopics/ent subnational and regional reports, case studies and repreneurship customized economy and regional profiles http://www.doingbusiness.org/reports Distance to frontier Data benchmarking 190 economies to the frontier Methodology in regulatory practice and a distance to frontier The methodologies and research papers underlying calculator Doing Business http://www.doingbusiness.org/data/distance-to- http://www.doingbusiness.org/methodology frontier Research Information on good practices Abstracts of papers on Doing Business topics and Showing where the many good practices identified related policy issues by Doing Business have been adopted http://www.doingbusiness.org/research http://www.doingbusiness.org/data/good-practice Doing Business reforms Short summaries of DB2017 business regulation reforms and lists of reforms since DB2008 http://www.doingbusiness.org/reforms Historical data Customized data sets since DB2004 http://www.doingbusiness.org/custom-query Doing Business 2017 EUROPE AND CENTRAL ASIA (ECA) 481