58484 Egypt, Arab Rep. © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher,The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail pubrights@worldbank.org. Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010: Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org. ISBN: 978-0-8213-7960-8 E-ISBN: 978-0-8213-8630-9 DOI: 10.1596/978-0-8213-7960-8 ISSN: 1729-2638 Library of Congress Cataloging-in-Publication data has been applied for. Printed in the United States Current features News on the Doing Business project http://www.doingbusiness.org Rankings How economies rank-from 1 to 183 http://www.doingbusiness.org/rankings/ Contents Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004 Introduction and a ranking simulation tool and Aggregate Rankings http://www.doingbusiness.org/reforms/ 5 - Year Measure of Historical data Cumulative Change Customized data sets since DB2004 http://www.doingbusiness.org/custom-query/ Starting a Business Methodology and research Dealing with The methodologies and research papers underlying Doing Business Construction Permits http://www.doingbusiness.org/Methodology/ Registering Property Download reports Access to Doing Business reports as well as subnational and regional Getting Credit reports, reform case studies and customized country and regional profiles Protecting Investors http://www.doingbusiness.org/reports/ Paying Taxes Subnational and regional projects Differences in business regulations at the subnational and regional Trading Across Borders level http://www.doingbusiness.org/subnational-reports/ Enforcing Contracts Law Library Closing a Business Online collection of business laws and regulations relating to business and gender issues Doing Business 2011 http://www.doingbusiness.org/law-library/ Business Reforms http://wbl.worldbank.org/ Local partners More than 8,200 specialists in 183 economies who participate in Doing Business http://www.doingbusiness.org/Local-Partners/Doing-Business/ Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. A set of regulations affecting 9 stages of a business's life are measured: starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing Business methodology has limitations. Other areas important to business such as an economy 's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in designing reform. The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD high-income economies. The following pages present the summary Doing Business indicators for Egypt, Arab Rep.. The data used for this economy profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region not only with one another but also with the "good practice" economy for each indicator. The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity to provide good examples of business regulation to other countries. These good -practice economies do not necessarily rank number 1 in the topic or indicator, but they are in the top 10. More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org). * Except for the Paying Taxes indicator that refers to the period January to December of 2009. Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology and the addition of new economies (in the case of the rankings). 1 Economy Rankings - Ease of Doing Business Egypt, Arab Rep. is ranked 94 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Egypt, Arab Rep. - Compared to global good practice economy as well as selected economies: Egypt, Arab Rep.'s ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 94 Starting a Business 18 Dealing with Construction Permits 154 Registering Property 93 Getting Credit 72 Protecting Investors 74 Paying Taxes 136 Trading Across Borders 21 Enforcing Contracts 143 Closing a Business 131 2 Summary of Indicators - Egypt, Arab Rep. Starting a Business Procedures (number) 6 Time (days) 7 Cost (% of income per capita) 6.3 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 25 Time (days) 218 Cost (% of income per capita) 293.7 Registering Property Procedures (number) 7 Time (days) 72 Cost (% of property value) 0.8 Getting Credit Strength of legal rights index (0-10) 3 Depth of credit information index (0-6) 6 Public registry coverage (% of adults) 2.9 Private bureau coverage (% of adults) 10.3 Protecting Investors Extent of disclosure index (0-10) 8 Extent of director liability index (0-10) 3 Ease of shareholder suits index (0-10) 5 Strength of investor protection index (0-10) 5.3 Paying Taxes Payments (number per year) 29 Time (hours per year) 433 Profit tax (%) 13.2 Labor tax and contributions (%) 25.8 Other taxes (%) 3.6 Total tax rate (% profit) 42.6 Trading Across Borders Documents to export (number) 6 Time to export (days) 12 Cost to export (US$ per container) 613 Documents to import (number) 6 Time to import (days) 12 Cost to import (US$ per container) 698 3 Enforcing Contracts Procedures (number) 41 Time (days) 1010 Cost (% of claim) 26.2 Closing a Business Recovery rate (cents on the dollar) 17.4 Time (years) 4.2 Cost (% of estate) 22 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy's regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy's business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions. This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.28 0.24 Doing 0.20 business has become easier (DB 0.16 change score) 0.12 0.08 0.04 0.00 Saudi Egypt, Syrian United Turkey Jordan Lebanon Arabia Arab Rep. Arab Arab Republic Emirates 6 1. Benchmarking Starting a Business Regulations: Egypt, Arab Rep. is ranked 18 overall for Starting a Business. Ranking of Egypt, Arab Rep. in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of Min. capital (number) income per (% of income Economies capita) per capita) Denmark* 0.0 New Zealand* 1 1 0.0 Selected Economy Egypt, Arab Rep. 6 7 6.3 0.0 Comparator Economies Jordan 8 13 44.6 17.9 Lebanon 5 9 75.0 39.8 Saudi Arabia 4 5 7.0 0.0 Syrian Arab Republic 7 13 38.1 355.1 Turkey 6 6 17.2 9.9 United Arab Emirates 8 15 6.4 0.0 * The following economies are also good practice economies for : Procedures (number): Canada Cost (% of income per capita): Slovenia 8 2. Historical data: Starting a Business in Egypt, Arab Rep. Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 23 18 Procedures (number) 7 6 6 6 Time (days) 9 7 7 7 Cost (% of income per capita) 28.6 18.3 16.1 6.3 Min. capital (% of income per capita) 12.9 2.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Egypt, Arab Rep. over the past 4 years: 9 Starting a Business Summary - Egypt, Arab Rep. This table summarizes the procedures and costs associated with setting up a business in the Arab Republic of Egypt. STANDARDIZED COMPANY Legal Form: Sharikat that Massouliyyah Mahdoodah City: Cairo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain a certificate from an authorized bank 1 EGP 300 2 Submit documents to the Department of Companies and obtain 1 EGP 489 invoice 3 Notarize company's contract 1 no charge 4 Obtain the notification of incorporation 1 no charge 5 Register for taxes 1 no charge 6 Register employees with the National Authority of Social Insurance 2 no charge 10 Starting a Business Details - Egypt, Arab Rep. Procedure 1 Obtain a certificate from an authorized bank Time to complete: 1 Cost to complete: EGP 300 Comment: The Bank of Alexandria branch at the General Authority for Free Zones and Investment (GAFI) issues and delivers the certificate in 1­2 days. The bank certificate cost between EGP 200 to EGP 500, depending on the bank. Procedure 2 Submit documents to the Department of Companies and obtain invoice Time to complete: 1 Cost to complete: EGP 489 Comment: The founder deposits the company documents at the reception desk, where they are reviewed immediately by a lawyer. A registry employee reviews the documents, and issues a detailed invoice for all fees associated with the company's establishment. Fees for company establishment: - Notary public fee: 0.25% of capital ( minimum of EGP 10 and a maximum of EGP 1,000 ). - Establishment fees: 0.1% of capital (minimum of EGP 100 and maximum of EGP 1,000 according to Article 17 (d) of the Companies Law). - Commercial Syndicate fee: EGP 125 (for capital less than or equal to EGP 500,000) or EGP 250 (for capital more than EGP 500,000). - Publication fee: EGP 150 (for a limited liability company in Arabic) or EGP 300 (for a limited liability company in Arabic and English). - Chamber of Commerce fees: 0.2% of capital (minimum of EGP 24 and maximum of EGP 2,000) in addition to EGP 29 for the issuance of operation certificate. - Commercial registration: EGP 51. - Issuance of operation certificate: EGP 29. Procedure 3 Notarize company's contract Time to complete: 1 Cost to complete: no charge Comment: The articles of association must be registered and cerain documents depoisited at with the Investment Notarization Office at GAFI in the one-stop shop, these documents are: 1. Original certificate of non confusion. 2. Original certificate of an authorized bank. 3. A copy of the powers of attorney from the founders to their represantative. 4. A copy of the founders' I.D. cards or passports. 5. Security clearances for foreign partners. 6. A preliminary consent from the General Authority of Manufacture. 7. Original certificate indicating that the company's auidtor is listed at the Registry of accountants and auditors. 8. The application provided by GAFI. 9. Stamped articles of association. 11 No stamp duty is levied, according to the amendments (published on July 1, 2006) to the Stamp Duty Law (No. 111 of 1980). Required are the original copies of the articles of association and the powers of attorney. Procedure 4 Obtain the notification of incorporation Time to complete: 1 Cost to complete: no charge Comment: When the articles of association are submitted, the competent authority must ratify them and issue a decree approving the establishment of the company. This decree is issued within 24 hours. Further, the applicant obtains the approval of the Chamber of Commerce and fills an application in order to obtain an exract of the commercial registry. After the lapse of 15 days the company assumes legal responsibility and judicial personality. Within the 15 days if the comptent authority has no objection, the Department of Companies is thereafter responsible for publishing the notice of incorporation in the Investment Gazette at the company's expense. Procedure 5 Register for taxes Time to complete: 1 Cost to complete: no charge Comment: Upon incorporation, the company can complete tax registration and obtain the tax card at the one-stop shop's tax counter. Upon obtaining the card, the company may choose to register for sales tax, provided that they have started production. Companies are obliged to register for sales tax only once they reach at least EGP 54,000 in sales for industrial activities and EGP 150,000 in sales for commercial activities. The required documents include the articles of association and the powers of attorney, the bank signature authentication (to be issued to the appropriate person by the manager having the power to sign on behalf of the company), the tax card, an original extract from the company's commercial register, and the original copy of the company's lease agreement for its premises.A new reform took place recently that will further reduce the time for this procedure a result of automation of the tax office at the OSS and the tax authority. Procedure 6 Register employees with the National Authority of Social Insurance Time to complete: 2 Cost to complete: no charge Comment: Social insurance provides compensation for disability, retirement (pension), unemployment, and work-related injuries. By law, employers are required to subscribe to the social insurance system. Otherwise, they may be subject to sanctions. The employer must submit a fully completed, authority-issued application (Nos. 1 and 2) and the following documents to the competent authority's office: - Employer's lease agreement for company premises. - Employer's tax card. - Employee's identification card and birth certificate (copy). - Employee's and employer's graduation certificate. 12 13 1. Benchmarking Dealing with Construction Permits Regulations: Egypt, Arab Rep. is ranked 154 overall for Dealing with Construction Permits. Ranking of Egypt, Arab Rep. in Dealing with Construction Permits - Compared to good practice and selected economies: 14 The following table shows Dealing with Construction Permits data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) income per Economies capita) Denmark 6 Qatar 0.8 Singapore 25 Selected Economy Egypt, Arab Rep. 25 218 293.7 Comparator Economies Jordan 19 87 634.1 Lebanon 21 218 284.7 Saudi Arabia 12 89 43.8 Syrian Arab Republic 26 128 568.4 Turkey 25 188 231.4 United Arab Emirates 17 64 35.8 15 2. Historical data: Dealing with Construction Permits in Egypt, Arab Rep. Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 155 154 Procedures (number) 28 28 25 25 Time (days) 249 249 218 218 Cost (% of income per capita) 474.9 376.7 331.6 293.7 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Egypt, Arab Rep. over the past 4 years: 16 Dealing with Construction Permits in Egypt, Arab Rep. The table below summarizes the procedures, time, and costs to build a warehouse in the Arab Republic of Egypt. BUILDING A WAREHOUSE City: Cairo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain technical approvals from independent syndicate engineer 9 days EGP 1,750 2 Submit building permit application to municipal authority 1 day EGP 7 3 * Obtain project clearance from electricity authority 30 days no charge 4 * Receive inspection prior to permit issuance from the municipality 1 day no charge 5 * Pay real estate tax at the tax authority 1 day EGP 30 6 Obtain building permit 30 days EGP 2,000 7 Receive on-site inspection from the municipality - I 1 day no charge 8 Receive on-site inspection from the municipality - II 1 day no charge 17 9 Receive on-site inspection from the municipality - III 1 day no charge 10 Receive on-site inspection from the municipality - IV 1 day no charge 11 Receive on-site inspection from the municipality - V 1 day no charge 12 Receive on-site inspection from the municipality - VI 1 day no charge 13 Receive on-site inspection from the municipality - VII 1 day no charge 14 Receive on-site inspection from the municipality - VIII 1 day no charge 15 Receive on-site inspection from the municipality - IX\ 1 day no charge 16 Receive on-site inspection from the municipality - X 1 day no charge 17 Receive final inspection from by a committee from the municipality 1 day no charge 18 Obtain letters from municipality about water and sewage connection and 1 day no charge about electricity cables installation 19 Obtain certificate of natural disaster 1 day EGP 102 20 Obtain water and sewerage connection 60 days EGP 15,000 21 * Apply for electricity connection 1 day no charge 22 * Receive electricity inspection 1 day no charge 23 * Obtain electricity connection 19 days EGP 15,000 24 * Obtain phone connection 18 days EGP 850 25 Register the building with the real estate registry 75 days EGP 2,000 * Takes place simultaneously with another procedure. 18 Dealing with Construction Permits Details - Egypt, Arab Rep. Procedure 1 Obtain technical approvals from independent syndicate engineer Time to complete: 9 days Cost to complete: EGP 1,750 Agency: Independent syndicate engineer Comment: To obtain technical approvals, BuildCo must submit documents, including the approval of the colored cadastral map; the approval of probe estimation; the execution supervision certificate (fee EGP 250­350); approval of architectural drawings (fee EGP 150­200); accounting book; report confirming the construction quality of the building foundations (fee EGP 250­300); and a soil investigation report (fee EGP 1,000). Procedure 2 Submit building permit application to municipal authority Time to complete: 1 day Cost to complete: EGP 7 Agency: Municipality Comment: To obtain a building permit, BuildCo must file with the District Department the following documents, along with the ones described in the previous procedures: - Original ownership contract of the plot of land (notarized). - Measurement specification statement from the Survey Department. - Survey plan (aerial photography) specifying the location. That survey plan must be approved by an accredited syndicate engineer. - Alignment license, issued by the Urban Planning Department of Cairo Governorate. - Probe estimation, approved by a syndicated engineer - Execution supervision certificate, issued by a syndicate engineer or consultant engineer, if the building value is more than EGP 1 million. - A receipt attesting the payment of fees for the duty for examination of the drawings and details - A general drawing of the site (scale minimum 1:1,000) that indicates (a) the boundaries and dimensions of the land for which the permit is required, together with the total land area; and (b) the part on which construction is requested, as well as the facing roads and their widths. BuildCo must submit a file containing (a) a copy of the architectural drawings for the horizontal projections of floors and facades; (b) a vertical section, indicating the building height and the road's zero level and the structural drawings of the foundations, columns, and the enforced ceilings, together with copies of the structural calculation notes. All drawings must be signed by an accredited engineer. Also to be filed is a report from a structural engineer that confirms the structural skeleton and the foundations of the building (a) will tolerate the required licensed construction work and (b) are in compliance with safety provisions and will resist natural disasters according to Egyptian construction standards. The report must illustrate the soil composition at the site. If the building is elevated or modified, BuildCo must submit a report from a construction consultant (accredited for not less than 25 years), attesting that upon inspection and study of the existing buildings, the consultant has obtained proof of tolerance to the applicable loads subject to the license. Procedure 3 Obtain project clearance from electricity authority Time to complete: 30 days Cost to complete: no charge Agency: Greater Cairo Electricity Authority 19 Comment: Procedure 4 Receive inspection prior to permit issuance from the municipality Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: Procedure 5 Pay real estate tax at the tax authority Time to complete: 1 day Cost to complete: EGP 30 Agency: Tax Authority Comment: Procedure 6 Obtain building permit Time to complete: 30 days Cost to complete: EGP 2,000 Agency: Municipality Comment: The Construction Law establishes a 30-day statutory time limit for issuing building permits. These 30 days are counted only after all preliminary approvals are obtained. Law 4 of 2006 reduced the fee to obtain a building permit from 1% of construction cost to 0.2%. Procedure 7 Receive on-site inspection from the municipality - I Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 8 Receive on-site inspection from the municipality - II Time to complete: 1 day Cost to complete: no charge 20 Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 9 Receive on-site inspection from the municipality - III Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 10 Receive on-site inspection from the municipality - IV Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 11 Receive on-site inspection from the municipality - V Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 12 Receive on-site inspection from the municipality - VI Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 13 Receive on-site inspection from the municipality - VII Time to complete: 1 day 21 Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 14 Receive on-site inspection from the municipality - VIII Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 15 Receive on-site inspection from the municipality - IX\ Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 16 Receive on-site inspection from the municipality - X Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average. Procedure 17 Receive final inspection from by a committee from the municipality Time to complete: 1 day Cost to complete: no charge Agency: Municipality Comment: After construction is done, the municipality makes a final inspection to certify that the warehouse conforms to the specifications outlined in the building permit. Procedure 18 Obtain letters from municipality about water and sewage connection and about electricity cables installation 22 Time to complete: 1 day Cost to complete: no charge Agency: Greater Cairo Water Authority Comment: As described above, the company must obtain a form from the municipality to obtain water and sewage connections. Procedure 19 Obtain certificate of natural disaster Time to complete: 1 day Cost to complete: EGP 102 Agency: Independent Syndicate Engineer Comment: A supervising engineer issues the certificate of natural disaster. The cost cited here reflects the fees for issuing the certificate. Procedure 20 Obtain water and sewerage connection Time to complete: 60 days Cost to complete: EGP 15,000 Agency: Greater Cairo Water Authority Comment: BuildCo submits an application to the municipal department to obtain a letter to be provided to the water utility. Then the company submits an application to the competent water authority, along with the original license and a copy of the building permit. Fees include about EPG 10,000 for the water connection and EPG 5,000 for the sewerage connection. Procedure 21 Apply for electricity connection Time to complete: 1 day Cost to complete: no charge Agency: Greater Cairo Electricity Authority Comment: For the electricity authority to extend the electric cables network, the company must submit the electrical design drawings to be endorsed by the authority and electricity company. Procedure 22 Receive electricity inspection Time to complete: 1 day Cost to complete: no charge Agency: Greater Cairo Electricity Authority Comment: The electricity authority inspects the construction site to provide a cost estimate. 23 Procedure 23 Obtain electricity connection Time to complete: 19 days Cost to complete: EGP 15,000 Agency: Greater Cairo Electricity Authority Comment: Connection fees include laying down the cables. Procedure 24 Obtain phone connection Time to complete: 18 days Cost to complete: EGP 850 Agency: Telecom Egypt Comment: To obtain a phone connection, the company must submit the following documents: - Title deed for the unit, or lease contract, if not owned by the applicant. - Copy of applicant's identification. - Operators license for factories, stores, commercial stores, and workshops. Procedure 25 Register the building with the real estate registry Time to complete: 75 days Cost to complete: EGP 2,000 Agency: Real Estate Registry Comment: The company must submit a building registration form, the building permit for the warehouse, and the primary purchase contract of the land on which the warehouse had been built. Law 83 of 2006 amended Decree No. 70 (1964) to decrease registration fees, which are now a flat fee of EGP 2,000 rather than a percentage of building value. 24 25 1. Benchmarking Registering Property Regulations: Egypt, Arab Rep. is ranked 93 overall for Registering Property. Ranking of Egypt, Arab Rep. in Registering Property - Compared to good practice and selected economies: 26 The following table shows Registering Property data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) property Economies value) New Zealand* 2 Norway* 1 Saudi Arabia 0.0 Selected Economy Egypt, Arab Rep. 7 72 0.8 Comparator Economies Jordan 7 21 7.5 Lebanon 8 25 5.8 Saudi Arabia 2 2 0.0 Syrian Arab Republic 4 19 27.9 Turkey 6 6 3.0 United Arab Emirates 1 2 2.0 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 27 2. Historical data: Registering Property in Egypt, Arab Rep. Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 89 93 Procedures (number) 7 7 7 7 Time (days) 193 72 72 72 Cost (% of property value) 1.0 0.9 0.9 0.8 3. The following graphs illustrate the Registering Property sub indicators in Egypt, Arab Rep. over the past 4 years: 28 Registering Property in Egypt, Arab Rep. This topic examines the steps, time, and cost involved in registering property in the Arab Republic of Egypt. STANDARDIZED PROPERTY Property Value: 625,433.42 City: Cairo Registration Requirements: No: Procedure Time to complete Cost to complete 1 Request for registration presented by the buyer 5 days no cost 2 Site inspection by the measurement department 15 days no cost 3 Payment and issuance of the inspection's report 21 days no cost (maqbul) 4 Final contract is drafted and approved at the Lawyers 26 days 0.5% property value Syndicate 5 The buyer obtains the contract from the real estate 2 days EGP 2000 (registration fee) registry 6 Seller and buyer sign the contract before the real 2 days no cost estate registrar 7 The buyer picks-up the new contract/title at the 1 day no cost Registry 29 Registering Property Details - Egypt, Arab Rep. Procedure 1 Request for registration presented by the buyer Time to complete: 5 days Cost to complete: no cost Agency: Real Estate Registry Comment: After an initial written agreement between the parties has concluded and the buyer pays the established the price with the seller, the purchaser presents to the real estate registry a request for registration (1 day). This request is then internally transferred in the real estate registry to the to the Egyptian Surveying Authority (ESA) offices of the ministry of water resources & irrigation. Procedure 2 Site inspection by the measurement department Time to complete: 15 days Cost to complete: no cost Agency: Egyptian Surveying Authority Comment: After payment for the inspection, the Egyptian Surveying Authority (ESA) office of the ministry of water resources & irrigation inspects the site, takes the necessary measurements and specifications and prepares a report. Setting a date for inspection and delivery of required items takes 7 days. Visiting the field & developing the surveying report takes 7 days. Returning the results & submitting the documents to the Real Estate Registry takes 1 day. Procedure 3 Payment and issuance of the inspection's report (maqbul) Time to complete: 21 days Cost to complete: no cost Agency: Real Estate Registry Comment: Then, the report will be approved or refused by the measurement department. The approval is called kashf tahdeed. The approved request is then transferred back to the Real Estate Registry. The Registry will examine the report and issue a final approval called maqbul. The Real Estate Registry offices receives the surveying & delimitation report (KASHF TAHDEED) from the relevant ESA offices & develops the acceptance report (MAQBUL) within 21 days Procedure 4 Final contract is drafted and approved at the Lawyers Syndicate Time to complete: 26 days Cost to complete: 0.5% property value 30 Agency: Lawyers' Syndicate Comment: A (final) sale agreement is drafted by the parties on a special form at the Lawyers' Syndicate. A lawyer must ratify the form. The Lawyers' Syndicate reviews the final contract and will approve the contract (mashrua). The contract takes 1 day to be drafted, 1 day to be submitted to the Real Estate Registry office, 4 days to complete the work cycle at Real Estate Registry office & submit the contract to the lawyer syndicate, and finally 20 days to authenticate process at the lawyer syndicate. Procedure 5 The buyer obtains the contract from the real estate registry Time to complete: 2 days Cost to complete: EGP 2000 (registration fee) Agency: Real Estate Registry Comment: The buyer obtains the contract from the real estate registry against payment of fees amounting to 2000 EGP. This registration fee was changed from 3% and capped at EGP 2000 during 2006. Estimating fees at the Registry office takes 1 day and payment of the fees takes 1 day Procedure 6 Seller and buyer sign the contract before the real estate registrar Time to complete: 2 days Cost to complete: no cost Agency: Real Estate Registry Comment: Seller and purchaser must sign the contract before the real estate registrar. The real estate registry reviews the contract again, making sure that payments have been made and that details are correct and will add a registration number to the contract. Visiting the notary office takes 1 day at the Registry office. Visiting the main REPD office for publicity purposes takes 1 day. Procedure 7 The buyer picks-up the new contract/title at the Registry Time to complete: 1 day Cost to complete: no cost Agency: Real Estate Registry Comment: After the registry adds the new registration number to the contract, it is ready to be picked-up by the buyer. 31 32 1. Benchmarking Getting Credit Regulations: Egypt, Arab Rep. is ranked 72 overall for Getting Credit. Ranking of Egypt, Arab Rep. in Getting Credit - Compared to good practice and selected economies: 33 The following table shows Getting Credit data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Strength of Depth of Public Private legal rights credit registry bureau Economies index (0-10) information coverage (% coverage (% index (0-6) of adults) of adults) New Zealand* 100.0 Portugal 67.1 Singapore* 10 United Kingdom 6 Selected Economy Egypt, Arab Rep. 3 6 2.9 10.3 Comparator Economies Jordan 4 2 1.5 0.0 Lebanon 3 5 8.7 0.0 Saudi Arabia 5 6 0.0 18.0 Syrian Arab Republic 1 2 2.2 0.0 Turkey 4 5 18.3 42.2 United Arab Emirates 4 5 8.4 17.7 * The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index. 34 2. Historical data: Getting Credit in Egypt, Arab Rep. Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 69 72 Strength of legal rights index (0-10) 3 3 3 3 Depth of credit information index (0-6) 4 5 6 6 Private bureau coverage (% of adults) .. 4.7 8.2 10.3 Public registry coverage (% of adults) 1.7 2.2 2.5 2.9 3. The following graphs illustrate the Getting Credit sub indicators in Egypt, Arab Rep. over the past 4 years: 35 Getting Credit in Egypt, Arab Rep. The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in the Arab Republic of Egypt. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 6 bureau registry Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative data distributed? Yes No 1 Does the registry distribute credit information from retailers, trade Yes No 1 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? Yes No 1 Is data on all loans below 1% of income per capita distributed? Yes No 1 Is it guaranteed by law that borrowers can inspect their data in the Yes No 1 largest credit registry? Coverage 10.3 2.9 Number of individuals 5,735,770 1,537,660 Number of firms 57,294 66,241 36 Strength of legal rights index (0-10) 3 Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes institution accept such assets as collateral ? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, No without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without Yes requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend automatically to the products, No proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations Yes and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No grantor's name of a security right ? Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? No Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No Does the law authorize parties to agree on out of court enforcement? No 37 38 1. Benchmarking Protecting Investors Regulations: Egypt, Arab Rep. is ranked 74 overall for Protecting Investors. Ranking of Egypt, Arab Rep. in Protecting Investors - Compared to good practice and selected economies: 39 The following table shows Protecting Investors data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Egypt, Arab Rep. 5.3 Comparator Economies Jordan 4.3 Lebanon 5.0 Saudi Arabia 7.0 Syrian Arab Republic 4.7 Turkey 5.7 United Arab Emirates 4.3 40 2. Historical data: Protecting Investors in Egypt, Arab Rep. Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 73 74 Strength of investor protection index (0-10) 5.0 5.3 5.3 5.3 3. The following graph illustrates the Protecting Investors index in Egypt, Arab Rep. compared to best practice and selected Economies: 9.7 7.0 5.7 5.3 5.0 4.7 4.3 4.3 ey . ab a nd n es b an lic b rk bi ir Ara R , Ar no ub ra ra rd Tu a ep n A al ba iA Jo t Ze Em ted yp Le ep at a ud ri Eg ew ni Sy Sa U N R Note: The higher the score, the greater the investor protection. 41 Protecting Investors in Egypt, Arab Rep. The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in the Arab Republic of Egypt. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 8 2 What corporate body provides legally sufficient approval for the transaction? 2 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 1 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 2 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 1 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 3 0 Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 0 Whether shareholders can hold the approving body (the CEO or board of directors) liable for the damage that the Buyer-Seller transaction causes to the company? 2 Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 0 Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 42 0 Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 Whether fines and imprisonment can be applied against Mr. James? 1 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? Ease of shareholder suits index (0-10) 5 3 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 0 Whether the plaintiff can directly question the defendant and witnesses during trial? 0 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 1 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 0 Whether the level of proof required for civil suits is lower than that of criminal cases? 1 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 5.3 43 44 1. Benchmarking Paying Taxes Regulations: Egypt, Arab Rep. is ranked 136 overall for Paying Taxes. Ranking of Egypt, Arab Rep. in Paying Taxes - Compared to good practice and selected economies: 45 The following table shows Paying Taxes data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Payments Time (hours Total tax rate (number per per year) (% profit) Economies year) Maldives* 3 0 Timor-Leste 0.2 Selected Economy Egypt, Arab Rep. 29 433 42.6 Comparator Economies Jordan 26 101 31.2 Lebanon 19 180 30.2 Saudi Arabia 14 79 14.5 Syrian Arab Republic 20 336 42.9 Turkey 15 223 44.5 United Arab Emirates 14 12 14.1 * The following economies are also good practice economies for : Payments (number per year): Qatar 46 2. Historical data: Paying Taxes in Egypt, Arab Rep. Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 136 136 Total tax rate (% profit) 45.1 44.0 43.0 42.6 Payments (number per year) 36 29 29 29 Time (hours per year) 711 711 480 433 3. The following graphs illustrate the Paying Taxes sub indicators in Egypt, Arab Rep. over the past 4 years: 47 Paying Taxes in Egypt, Arab Rep. The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Egypt, Arab Rep., as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR Value added tax (VAT) 12 175 10.0% value added Fuel tax 1 consumption Tax on insurance 1 1% and 10% insurance 0.10 contracts premium Property tax 1 monthly 0.80 rental value Stamp duty on 1 15.0% advertising 2.70 advertisements expenses Corporate income tax 1 69 20.0% taxable profit 13.20 Social insurance 12 189 Social gross salaries 25.80 contributions Insurance for maximum salary of EGP1550=7 50*24% +800*26% Totals 29 433 42.6 48 49 1. Benchmarking Trading Across Borders Regulations: Egypt, Arab Rep. is ranked 21 overall for Trading Across Borders. Ranking of Egypt, Arab Rep. in Trading Across Borders - Compared to good practice and selected economies: 50 The following table shows Trading Across Borders data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Documents to Time to Cost to Documents to Time to Cost to export export (days) export (US$ import import (days) import (US$ Economies (number) per (number) per container) container) Denmark* 5 France 2 2 Malaysia 450 Singapore 4 439 Selected Economy Egypt, Arab Rep. 6 12 613 6 12 698 Comparator Economies Jordan 7 14 825 7 18 1335 Lebanon 5 26 1000 7 35 1200 Saudi Arabia 5 13 580 5 17 686 Syrian Arab Republic 8 15 1190 9 21 1625 Turkey 7 14 990 8 15 1063 United Arab Emirates 4 7 521 5 7 542 * The following economies are also good practice economies for : Time to export (days): Estonia 51 2. Historical data: Trading Across Borders in Egypt, Arab Rep. Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 30 21 Cost to export (US$ per container) 714 737 737 613 Cost to import (US$ per container) 729 823 823 698 Documents to export (number) 6 6 6 6 Documents to import (number) 6 6 6 6 Time to export (days) 15 14 14 12 Time to import (days) 18 15 15 12 3. The following graphs illustrate the Trading Across Borders sub indicators in Egypt, Arab Rep. over the past 4 years: 52 53 Trading Across Borders in Egypt, Arab Rep. These tables list the procedures necessary to import and export a standardized cargo of goods in Egypt, Arab Rep.. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 7 81 Customs clearance and technical control 1 182 Ports and terminal handling 2 170 Inland transportation and handling 2 180 Totals 12 613 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 8 158 Customs clearance and technical control 1 90 Ports and terminal handling 1 220 Inland transportation and handling 2 230 Totals 12 698 54 Documents for Export and Import Export Bill of lading Certificate of origin Commercial invoice Customs export declaration Packing list Technical standard/health certificate Import Bill of lading Certificate of origin Commercial Invoice Customs import declaration Inspection report Packing list 55 56 1. Benchmarking Enforcing Contracts Regulations: Egypt, Arab Rep. is ranked 143 overall for Enforcing Contracts. Ranking of Egypt, Arab Rep. in Enforcing Contracts - Compared to good practice and selected economies: 57 The following table shows Enforcing Contracts data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) claim) Economies Bhutan 0.1 Ireland 20 Singapore 150 Selected Economy Egypt, Arab Rep. 41 1010 26.2 Comparator Economies Jordan 38 689 31.2 Lebanon 37 721 30.8 Saudi Arabia 43 635 27.5 Syrian Arab Republic 55 872 29.3 Turkey 35 420 18.8 United Arab Emirates 49 537 26.2 58 2. Historical data: Enforcing Contracts in Egypt, Arab Rep. Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 143 143 Procedures (number) 42 42 41 41 Time (days) 1010 1010 1010 1010 Cost (% of claim) 26.2 26.2 26.2 26.2 3. The following graphs illustrate the Enforcing Contracts sub indicators in Egypt, Arab Rep. over the past 4 years: 59 Enforcing Contracts in Egypt, Arab Rep. This topic looks at the efficiency of contract enforcement in Egypt, Arab Rep.. Nature of Procedure (2010) Indicator Procedures (number) 41 Time (days) 1010 Filing and service 20.0 Trial and judgment 720.0 Enforcement of judgment 270.0 Cost (% of claim)* 26.20 Attorney cost (% of claim) 18.0 Court cost (% of claim) 1.3 Enforcement Cost (% of claim) 6.9 60 Court information: Cairo Lower Court of First Instance * Claim assumed to be equivalent to 200% of income per capita. 61 62 1. Benchmarking Closing Business Regulations: Egypt, Arab Rep. is ranked 131 overall for Closing a Business. Ranking of Egypt, Arab Rep. in Closing Business - Compared to good practice and selected economies: 63 The following table shows Closing Business data for Egypt, Arab Rep. compared to good practice and comparator economies: Good Practice Recovery rate Time (years) Cost (% of (cents on the estate) Economies dollar) Ireland 0.4 Japan 92.7 Singapore* 1 Selected Economy Egypt, Arab Rep. 17.4 4.2 22 Comparator Economies Jordan 26.9 4.3 9 Lebanon 19.8 4.0 22 Saudi Arabia 36.8 1.5 22 Syrian Arab Republic 27.4 4.1 9 Turkey 21.1 3.3 15 United Arab Emirates 11.2 5.1 30 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 64 2. Historical data: Closing Business in Egypt, Arab Rep. Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 131 131 Time (years) 4.2 4.2 4.2 4.2 Cost (% of estate) 22 22 22 22 Recovery rate (cents on the dollar) 16.6 16.8 16.8 17.4 3. The following graphs illustrate the Closing Business sub indicators in Egypt, Arab Rep. over the past 4 years: 65 Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems. The top 10 most-improved in Doing Business 2011 Dealing with Construction Trading Across Borders Positive Change Registering Property Enforcing Contracts Protecting Investors Starting a Business Closing a Business Negative Change Getting Credit Paying Taxes Permits Economy Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam * For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking. 66 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam made trading easier. Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks. Egypt, Arab Rep. Egypt reduced the cost to start a business. Egypt made trading easier by introducing an electronic system for submitting export and import documents. Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Jordan Jordan improved its credit information system by setting up a regulatory framework for establishing a private credit bureau as well as lowering the threshold for loans to be reported to the public credit registry. Jordan abolished certain taxes and made it possible to file income and sales tax returns electronically. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. Lebanon Lebanon increased the cost of starting a business. Lebanon improved its credit information system by allowing banks online access to the public credit registry's reports. Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals. Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank's public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. Saudi Arabia Saudi Arabia made dealing with construction permits easier for the second year in a row by introducing a new, streamlined process. An amendment to Saudi Arabia's commercial lien law enhanced access to credit by making secured lending more flexible and allowing out-of-court enforcement in case of default. Saudi Arabia reduced the time to import by launching a new container terminal at the Jeddah Islamic Port. Saudi Arabia speeded up the insolvency process by providing earlier access to amicable settlements and putting time limits on the settlements to encourage creditors to participate. 67 Syrian Arab Republic Syria eased business start-up by reducing the minimum capital requirement for limited liability companies by two-thirds. It also decentralized approval of the company memorandum. Syria enhanced access to credit by eliminating the minimum threshold for loans included in the database, which expanded the coverage of individuals and firms to 2.8% of the adult population. Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate. United Arab Emirates The United Arab Emirates enhanced access to credit by setting up a legal framework for the operation of the private credit bureau and requiring that financial institutions share credit information. The United Arab Emirates streamlined document preparation and reduced the time to trade with the launch of Dubai Customs' comprehensive new customs system, Mirsal 2. Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors. Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations and introducing scanning machines at border posts. Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records. 68 69