Doing Business 2018 Brazil Economy Pro le of Brazil Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Brazil Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Latin America & DB 2018 Rank Region 190 1 Caribbean Brazil Income Category Upper middle income 125 DB 2018 Distance to Frontier (DTF) Population 207,652,865 0 100 GNI Per Capita (US$) 8,840 56.45 City Covered São Paulo DB 2018 Distance to Frontier (DTF) 0 100 72.27: Mexico (Rank: 49) 71.22: Chile (Rank: 55) 65.29: China (Rank: 78) 58.66: Regional Average (Latin America & Caribbean) 56.45: Brazil (Rank: 125) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Brazil Ease of Doing Business in Latin America & DB 2018 Rank Region 190 1 Caribbean Brazil Income Category Upper middle income 125 DB 2018 Distance to Frontier (DTF) Population 207,652,865 0 100 GNI Per Capita (US$) 8,840 56.45 City Covered São Paulo DB 2018 Distance to Frontier (DTF) 0 100 72.27: Mexico (Rank: 49) 71.22: Chile (Rank: 55) 65.29: China (Rank: 78) 58.66: Regional Average (Latin America & Caribbean) 56.45: Brazil (Rank: 125) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Brazil 1 28 45 43 47 55 80 82 Rank 105 109 131 139 136 163 170 176 184 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Brazil 100 82.46 80 65.05 66.00 63.33 59.78 60 DTF 52.60 49.83 47.46 45.00 40 32.97 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+1.23 Change:-0.02 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:-1.69 Change:+0.01 Permits Change:0.00 Change:+4.21 Change:+0.04 Starting a Business Page 4   a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+1.23 Change:-0.02 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:-1.69 Change:+0.01 Permits Change:0.00 Change:+4.21 Doing Business 2018 Brazil Change:+0.04 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Page 5   Starting a Business - São Paulo before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Brazil Starting a Business - São Paulo Standardized Company Legal form Sociedade Limitada Paid-in minimum capital requirement BRL 0 City Covered São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Procedure – Men (number) 11 8.4 4.9 1.00 (New Zealand) Time – Men (days) 101.5 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 4.0 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 11 8.5 4.9 1.00 (New Zealand) Time – Women (days) 101.5 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 4.0 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 89.55: Chile (Rank: 65) 85.84: Mexico (Rank: 90) 85.47: China (Rank: 93) 59.79: São Paulo Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in São Paulo – Procedure, Time and Cost Time Cost 100 1.8 1.6 ome per capita) 80 1.4 1.2 (days) 60 Page 6   1 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Starting a Business in São Paulo – Procedure, Time and Cost Time Cost 100 1.8 1.6 Cost (% of income per capita) 80 1.4 1.2 Time (days) 60 1 0.8 40 0.6 0.4 20 0.2 0 0 1 2 3 4 5 6 *7 *8 *9 * 10 * 11 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the availability of the company name with the Commercial Less than one day no charge Registry (JUCESP) (online procedure) Agency : Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) Business founders must verify if the company's name is available. The name can be searched online at: www.jucesponline.sp.gov.br 2 Pay registration fees 1 day fees included in Agency : Commercial Bank procedure 3 Entrepreneurs choose whether to pay at any commercial bank or at the bank window/agency located inside the commercial registry. A receipt of payment must be obtained to register the company at JUCESP (Commercial Registry). 3 Register the company at the Commercial Registry (JUCESP) to obtain 7 days R$158.70 registration registration with the Tax Authorities (CNPJ), ICMS tax, Social Security + R$117.95 (INSS) and the Registry (NIRE) (expediting fee) Agency : Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) The company must register with the Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) to obtain an identi cation number from the Registry (Número de Identi cação do Registro de Empresas – NIRE). In addition, the following registrations are carried out: with National Corporate Taxpayer Registry with the Federal Tax Authorities (Cadastro Nacional de Pessoas Jurídicas - CNPJ), with the National Institute of Social Security Page 7   (Instituto Nacional do Seguro Social - INSS) and with the State sales tax (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Brazil Details – Starting a Business in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the availability of the company name with the Commercial Less than one day no charge Registry (JUCESP) (online procedure) Agency : Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) Business founders must verify if the company's name is available. The name can be searched online at: www.jucesponline.sp.gov.br 2 Pay registration fees 1 day fees included in Agency : Commercial Bank procedure 3 Entrepreneurs choose whether to pay at any commercial bank or at the bank window/agency located inside the commercial registry. A receipt of payment must be obtained to register the company at JUCESP (Commercial Registry). 3 Register the company at the Commercial Registry (JUCESP) to obtain 7 days R$158.70 registration registration with the Tax Authorities (CNPJ), ICMS tax, Social Security + R$117.95 (INSS) and the Registry (NIRE) (expediting fee) Agency : Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) The company must register with the Commercial Registry (Junta Comercial do Estado de São Paulo - JUCESP) to obtain an identi cation number from the Registry (Número de Identi cação do Registro de Empresas – NIRE). In addition, the following registrations are carried out: with National Corporate Taxpayer Registry with the Federal Tax Authorities (Cadastro Nacional de Pessoas Jurídicas - CNPJ), with the National Institute of Social Security (Instituto Nacional do Seguro Social - INSS) and with the State sales tax (Imposto sobre Circulação de Mercadorias e Serviços - ICMS). Registration for the ICMS tax purposes was integrated with the company registration at JUCESP in 2013, and it is made through the Data Generator Program (PGD - Programa Gerador de Dados). The company registration process can be initiated online through: https://www.jucesponline.sp.gov.br/ 4 Register with the Municipal Taxpayers’ Registry (Secretaria Municipal de 1 day no charge Finanças) Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) Enrollment with the Municipal Taxpayers' Registry (Cadastro de Contribuintes Mobiliários - CCM) is made through an electronic form that is lled online on the website of the City Hall (www.prefeitura.sp.gov.br). After lling and sending the electronic form, the registration protocol ("Protocolo de Inscrição") shall be printed, signed by the legal representative and delivered in a 30 days period to the Municipality (at "Praça de Atendimento da Secretaria de Finanças") with other requested documents. 5 Obtain a digital certi cation (token) for the use of e-invoices 2 days The cost may vary Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) from R$ 450.00 to R$ 600.00 The costs involved in the obtainment of the digital certi cation may vary according to the accredited certifying chosen by the applicant. The information on how to obtain a token is available at http://www.receita.fazenda.gov.br/dvssl/atbhe/falecon/comum/asp/formular Page 8   io.asp?topico=172 delivered in a 30 days period to the Municipality (at "Praça de Atendimento Doing da Secretaria Business Brazilwith other requested documents. de Finanças") 2018 5 Obtain a digital certi cation (token) for the use of e-invoices 2 days The cost may vary Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) from R$ 450.00 to R$ 600.00 The costs involved in the obtainment of the digital certi cation may vary according to the accredited certifying chosen by the applicant. The information on how to obtain a token is available at http://www.receita.fazenda.gov.br/dvssl/atbhe/falecon/comum/asp/formular io.asp?topico=172 6 Obtain an operations license (Auto de Licença de Funcionamento) from 90 days no charge the Municipality Agency : Municipality (Prefeitura de São Paulo) Business founders must obtain an operations permit from the Municipality. This document authorizes the operation of commercial, industrial, institutional, service, and similar activities. It is necessary to present the following documents: (i) The standardized requirement, duly lled and containing its objective identi cation; (ii) Operation enquiry term; (iii) A copy of the property title; (iv) A copy of the legal entity’s constitutive act; (v) Speci c documents according to the nature of the intended use (Article 10 of the decree 41.532/01); A copy of the Municipal Taxpayer's Registry (Cadastro de Contribuintes Mobiliários - CCM); and the required form (a free online version is available). 7 Register and pay the Municipal Establishments Inspection Fee (Taxa de 1 day R$ 457.38 (for Fiscalização de Estabelecimentos - TFE) (simultaneous with retailing business), Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Finanças) previous may vary in procedure) accordance with the According to the Municipality of São Paulo's rules, the annual cost of the TFE company’s activities fee is based both on the company's activities as well as on the company's number of employees (www.prefeitura.sp.gov.br). Once the company has been registered with the Municipal Tax Authorities (Secretaria Municipal de Finanças), it shall pay an annual fee for the control and compliance with municipal laws. This payment is due on the tenth day of the second month following commencement of company operations. 8 Register the employees in the social integration program (Programa de 1 day, no charge Integração Social - PIS) (simultaneous with Agency : Federal Savings Bank (Caixa Econômica Federal) procedure 7) Employees must be registered at the company’s employee registry book (livro de registro de empregados) and also with the social integration program (Programa de Integração Social - PIS/PASEP). The PIS/PASEP registry is intended to identify workers with the social security system, so that they may request unemployment insurance, and if needed, bene t from the unemployment guarantee fund (Fundo de Garantia do Tempo de Serviço - FGTS). To register the employee, the employer must complete a PIS/PASEP registry form (documento de cadastramento do trabalhador - DCT), to be delivered to the Federal Savings Bank (Caixa Econômica Federal) responsible for the FGTS account. The enrollment is completed in about 5 to 10 business days from application if all enrollment requirements are met. The employee is enrolled with the Social Integration Program (Programa de Integração Social - PIS) upon entry, and if the employee has already a PIS/PASEP registry, the employer must only inform the Federal Savings Bank of the new employment relationship. The employer will obtain the receipt of the application to PIS within 15 days. 9 Open an account with the special fund for unemployment (FGTS) 1 day, no charge Page 9   and compliance with municipal laws. This payment is due on the tenth day of Doing the 2018 following second month Business Brazil commencement of company operations. 8 Register the employees in the social integration program (Programa de 1 day, no charge Integração Social - PIS) (simultaneous with Agency : Federal Savings Bank (Caixa Econômica Federal) procedure 7) Employees must be registered at the company’s employee registry book (livro de registro de empregados) and also with the social integration program (Programa de Integração Social - PIS/PASEP). The PIS/PASEP registry is intended to identify workers with the social security system, so that they may request unemployment insurance, and if needed, bene t from the unemployment guarantee fund (Fundo de Garantia do Tempo de Serviço - FGTS). To register the employee, the employer must complete a PIS/PASEP registry form (documento de cadastramento do trabalhador - DCT), to be delivered to the Federal Savings Bank (Caixa Econômica Federal) responsible for the FGTS account. The enrollment is completed in about 5 to 10 business days from application if all enrollment requirements are met. The employee is enrolled with the Social Integration Program (Programa de Integração Social - PIS) upon entry, and if the employee has already a PIS/PASEP registry, the employer must only inform the Federal Savings Bank of the new employment relationship. The employer will obtain the receipt of the application to PIS within 15 days. 9 Open an account with the special fund for unemployment (FGTS) 1 day, no charge Agency : Federal Savings Bank (Caixa Econômica Federal) (simultaneous with procedure 7) After duly registering the new employees in the social integration program (Programa de Integração Social, PIS/PASEP), the employer must open a FGTS account for each employee (Fundo de Garantia por Tempo de Serviço). To open this account, the company's representative or attorney-in-fact must go to any local branch of the Federal Savings Bank (Caixa Econômica Federal) with a copy of: the company's taxpayer registry number (CNPJ/MF), the adhesion form issued by the Federal Saving Bank (Caixa Econômica Federal), the list of employees, and the company's articles of association or bylaws. Upon opening the employee FGTS accounts, the company will make monthly deposits equal to 8% of the total payroll. Employees are entitled to withdraw those deposits for speci c events provided by law (termination without cause and serious disease or disability, among others). A new online procedure (Sistema Empresa de Recolhimento do FGTS e informações à Previdência Social, SEFIP) was developed to speed up FGTS payment and information exchange between the employer and the federal savings bank. SEFIP can be accessed through the Federal Savings Bank’s Web site. This procedure permits the online transfer of data, creating a company le with all information required by the FGTS and Social Security. After the referred data transmission, the program issues a tax payment form (guia de recolhimento do FGTS) necessary for employer contribution payment. Notify the Ministry of Labor (Cadastro Geral de empregados e 1 day, no charge 10 desempregados, CAGED) (simultaneous with Agency : Ministry of Labor (Cadastro Geral de empregados e procedure 7) desempregados, CAGED) Pursuant to Law No. 4.923 of December 23, 1965, the employer must inform the Ministry of Labor's General Cadaster of Employed and Unemployed Workers (Cadastro Geral de Empregados e Desempregados - CAGED) of any new hires or employees dismissals. A form shall be transmitted by electronic means to the Ministry of Labor and solely by exception it can be delivered in magnetic means at the Regional Agency of the Ministry of Labor (Superintendência Regional do Trabalho e Emprego).   Page 10   In order to deliver the CAGED form to the Ministry of Labor, the employer referred data transmission, the program issues a tax payment form (guia de Doing recolhimento do FGTS) Business 2018 necessary for employer contribution payment. Brazil Notify the Ministry of Labor (Cadastro Geral de empregados e 1 day, no charge 10 desempregados, CAGED) (simultaneous with Agency : Ministry of Labor (Cadastro Geral de empregados e procedure 7) desempregados, CAGED) Pursuant to Law No. 4.923 of December 23, 1965, the employer must inform the Ministry of Labor's General Cadaster of Employed and Unemployed Workers (Cadastro Geral de Empregados e Desempregados - CAGED) of any new hires or employees dismissals. A form shall be transmitted by electronic means to the Ministry of Labor and solely by exception it can be delivered in magnetic means at the Regional Agency of the Ministry of Labor (Superintendência Regional do Trabalho e Emprego).   In order to deliver the CAGED form to the Ministry of Labor, the employer must download the required software at the website http://www.caged.gov.br. The company must inform the Ministry of Labor of any new hires and/or employees' dismissals carried out on a monthly basis, until the seventh day of the subsequent month of work. Registration with the Employers' Union and with the Employees' Union 5 days, no charge 11 Agency : Employers' Union and with the Employees' Union (simultaneous with procedure 7) The requirements for company registration with the Employers' Union and Employees' Union (Sindicato Patronal and Sindicato dos Empregados) vary according to the representative Unions. Generally, in order to be registered with the unions, the company must present the following documents: company registration form, Federal Registry of Corporate Taxpayers, articles of association, employee's list etc. These documents can generally be submitted to the unions through their websites. Applies to women only. Takes place simultaneously with previous procedure. Starting a Business - Rio de Janeiro Standardized Company Legal form Sociedade Limitada Paid-in minimum capital requirement BRL 0 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedure – Men (number) 11 8.4 4.9 1.00 (New Zealand) Time – Men (days) 45 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 6.6 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 11 8.5 4.9 1.00 (New Zealand) Time – Women (days) 45 31.8 8.5 Page 11   0.50 (New Zealand) Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Starting a Business - Rio de Janeiro Standardized Company Legal form Sociedade Limitada Paid-in minimum capital requirement BRL 0 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedure – Men (number) 11 8.4 4.9 1.00 (New Zealand) Time – Men (days) 45 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 6.6 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 11 8.5 4.9 1.00 (New Zealand) Time – Women (days) 45 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 6.6 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 89.55: Chile (Rank: 65) 85.84: Mexico (Rank: 90) 85.47: China (Rank: 93) 73.28: Rio de Janeiro Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Rio de Janeiro – Procedure, Time and Cost Time Cost 45 3 40 2.5 ome per capita) 35 30 2 (days) 25 Page 12   1.5 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Starting a Business in Rio de Janeiro – Procedure, Time and Cost Time Cost 45 3 40 2.5 Cost (% of income per capita) 35 30 2 Time (days) 25 1.5 20 15 1 10 0.5 5 0 0 1 2 3 4 5 6 7 *8 *9 * 10 * 11 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the availability of the company name with the Commercial Less than one day no charge Registry (JUCERJA) (online procedure) Agency : Commercial Registry of Rio de Janeiro (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) Business founders can check the availability of the company name online through the REGIN system (Registro Fácil) at www.jucerja.rj.gov.br 2 Pay registration fees Less than one day fees included in Agency : Bank (Banco Bradesco) (online procedure) procedure 3 The payment must be made at a bank (Banco Bradesco). A receipt of payment must be obtained to register the company at the Commercial Registry (JUCERJA). 3 Register the company at the Commercial Registry (JUCERJA) to obtain 3 weeks R$ 376 registration with the Tax Authorities (CNPJ), Social Security (INSS) and the Registry (NIRE) Agency : Commercial Registry of Rio de Janeiro (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) The company must register with the Commercial Registry (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) to obtain an identi cation number from the Registry (Número de Identi cação do Registro de Empresas – NIRE). In addition, the following registrations are carried out: National Corporate Taxpayer Registry with the Federal Tax Authorities (Cadastro Nacional de Pessoas Jurídicas - CNPJ) and registration with the National Institute of Social Security (Instituto Nacional do Seguro Social - INSS). Registration can be Page 13   initiated online through: www.jucerja.rj.gov.br (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Brazil Details – Starting a Business in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Check the availability of the company name with the Commercial Less than one day no charge Registry (JUCERJA) (online procedure) Agency : Commercial Registry of Rio de Janeiro (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) Business founders can check the availability of the company name online through the REGIN system (Registro Fácil) at www.jucerja.rj.gov.br 2 Pay registration fees Less than one day fees included in Agency : Bank (Banco Bradesco) (online procedure) procedure 3 The payment must be made at a bank (Banco Bradesco). A receipt of payment must be obtained to register the company at the Commercial Registry (JUCERJA). 3 Register the company at the Commercial Registry (JUCERJA) to obtain 3 weeks R$ 376 registration with the Tax Authorities (CNPJ), Social Security (INSS) and the Registry (NIRE) Agency : Commercial Registry of Rio de Janeiro (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) The company must register with the Commercial Registry (Junta Comercial do Estado do Rio de Janeiro - JUCERJA) to obtain an identi cation number from the Registry (Número de Identi cação do Registro de Empresas – NIRE). In addition, the following registrations are carried out: National Corporate Taxpayer Registry with the Federal Tax Authorities (Cadastro Nacional de Pessoas Jurídicas - CNPJ) and registration with the National Institute of Social Security (Instituto Nacional do Seguro Social - INSS). Registration can be initiated online through: www.jucerja.rj.gov.br 4 Register with the State Tax Authorities for the ICMS tax 7 days R$ 180.43 Agency : State Tax Authorities (Secretaria da Fazenda do Estado do Rio de Janeiro) The company must be registered with the State sales tax (Imposto sobre Circulação de Mercadorias e Serviços - ICMS). The following documents must be submitted to the State Tax Authorities in Rio de Janeiro (Secretaria da Fazenda do Estado do Rio de Janeiro), along with an electronic form (DOCAD - Documento de Cadastro do ICMS): (i) The company’s articles of incorporation registered before JUCERJA. (ii) The CNPJ certi cate. (iii) Certi ed copies of the Property Tax Billing (IPTU) of the Real Estate. (iv) Lease agreement. (v) Identi cation documents of the company’s manager. 5 Register with the Rio de Janeiro Taxpayers’ Registry (Secretaria 7 days no charge Municipal de Fazenda) Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Fazenda) Two days after the payment of the Taxpayers' Registry tax, the company must register with the Municipal Taxpayers' Registry (Cadastro Tributário Municipal) from Rio de Janeiro's Municipal Tax Authorities (Secretaria Municipal de Fazenda), to obtain a company identi cation number for tax Page 14   purposes (inscrição municipal). (v) Identi cation documents of the company’s manager. Doing Business 2018 Brazil 5 Register with the Rio de Janeiro Taxpayers’ Registry (Secretaria 7 days no charge Municipal de Fazenda) Agency : Municipal Taxpayers’ Registry (Secretaria Municipal de Fazenda) Two days after the payment of the Taxpayers' Registry tax, the company must register with the Municipal Taxpayers' Registry (Cadastro Tributário Municipal) from Rio de Janeiro's Municipal Tax Authorities (Secretaria Municipal de Fazenda), to obtain a company identi cation number for tax purposes (inscrição municipal). 6 Apply and obtain digital a certi cation (token) for the use of e-invoices 2 days The cost may vary Agency : Serasa Experian from R$ 282 to R$ 1,890 A token must be obtained for the use of e-invoices. The company has a period of 2 days to schedule the withdrawal of the token, which will be activated within 24 hours. 7 Obtain an operations license (Alvará de Licença para Estabelecimento) 7 days R$ 802.63 from the Municipality Agency : Municipality of Rio de Janeiro The company must obtain an operations license (Alvará de Licença) from the Municipality. After registration with the Municipal Tax Authorities (Secretaria Municipal de Fazenda – SMF), the company has 30 days to apply for the license by lling out the proper forms and submitting the required documents. The operations license is a prerequisite for the company to begin operations. However, because of long processing time to obtain the license, Municipalities may allow companies to operate as soon as they pay the required fee (Taxa de Licença para Estabelecimento – TFE). The Municipality may conduct ex-post inspections to certain companies, based on a risk based assessment. Since December, 2015, companies can request and obtain the business license online via the Municipality’s website: Carioca digital (https://carioca.rio/). 8 Register the employees with the social integration program (Programa 1 day, no charge de Integração Social - PIS) (simultaneous with Agency : Federal Savings Bank (Caixa Econômica Federal) previous procedure) Employees must be registered at the company’s employee registry book (livro de registro de empregados) and also with the social integration program (Programa de Integração Social - PIS/PASEP). The PIS/PASEP registry is intended to identify workers with the social security system, so that they may request unemployment insurance, and if needed, bene t from the unemployment guarantee fund (Fundo de Garantia do Tempo de Serviço - FGTS). To register the employee, the employer must complete a PIS/PASEP registry form (documento de cadastramento do trabalhador - DCT), to be delivered to the Federal Savings Bank (Caixa Econômica Federal) responsible for the FGTS account. The enrollment is completed in about 5 to 10 business days from application if all enrollment requirements are met. The employee is enrolled with the Social Integration Program (Programa de Integração Social - PIS) upon entry, and if the employee has already a PIS/PASEP registry, the employer must only inform the Federal Savings Bank of the new employment relationship. The employer will obtain the receipt of the application to PIS within 15 days. 9 Open an account with the special fund for unemployment (FGTS) 1 day, no charge Agency : Federal Savings Bank (Caixa Econômica Federal) (simultaneous with previous After duly registering the new employees in the social integration program procedure) (Programa de Integração Social, PIS/PASEP), the employer must open a FGTS Page 15   account for each employee (Fundo de Garantia por Tempo de Serviço). To employment relationship. The employer will obtain the receipt of the Businessto Doing application PIS within 2018 15 days. Brazil 9 Open an account with the special fund for unemployment (FGTS) 1 day, no charge Agency : Federal Savings Bank (Caixa Econômica Federal) (simultaneous with previous After duly registering the new employees in the social integration program procedure) (Programa de Integração Social, PIS/PASEP), the employer must open a FGTS account for each employee (Fundo de Garantia por Tempo de Serviço). To open this account, the company's representative or attorney-in-fact must go to any local branch of the Federal Savings Bank (Caixa Econômica Federal) with a copy of: the company's taxpayer registry number (CNPJ/MF), the adhesion form issued by the Federal Saving Bank (Caixa Econômica Federal), the list of employees, and the company's articles of association or bylaws. Upon opening the employee FGTS accounts, the company will make monthly deposits equal to 8% of the total payroll. The employees are entitled to withdraw those deposits for speci c events provided by law (termination without cause and serious disease or disability, among others). A new online procedure (Sistema Empresa de Recolhimento do FGTS e informações à Previdência Social, SEFIP) was developed to speed up FGTS payment and information exchange between the employer and the federal savings bank. SEFIP can be accessed through the Federal Savings Bank’s Web site. This procedure permits the online transfer of data, creating a company le with all information required by the FGTS and Social Security. After the referred data transmission, the program issues a tax payment form (guia de recolhimento do FGTS) necessary for employer contribution payment. Notify the Ministry of Labor (Cadastro Geral de empregados e 1 day, no charge 10 desempregados, CAGED) (simultaneous with Agency : Ministry of Labor (Cadastro Geral de empregados e desempregados previous - CAGED) procedure) Pursuant to Law No. 4.923 of December 23, 1965, the employer must inform the Ministry of Labor's General Cadaster of Employed and Unemployed Workers (Cadastro Geral de Empregados e Desempregados - CAGED) of any new hires or employees dismissals. A form shall be transmitted by electronic means to the Ministry of Labor and solely by exception it can be delivered in magnetic means at the Regional Agency of the Ministry of Labor (Superintendência Regional do Trabalho e Emprego).   In order to deliver the CAGED form to the Ministry of Labor, the employer must download the required software at the website http://www.caged.gov.br. The company must inform the Ministry of Labor of any new hires and/or employees' dismissals carried out on a monthly basis, until the seventh day of the subsequent month of work. Registration with the Employers' Union and with the Employees' Union 5 days, no charge 11 Agency : Employers' Union and Employees' Union (simultaneous with previous The requirements for company registration with the Employers' Union and procedure) Employees' Union (Sindicato Patronal and Sindicato dos Empregados) vary according to the representative Unions. Generally, in order to be registered with the unions, the company must present the following documents: company registration form, Federal Registry of Corporate Taxpayers, articles of association, employee's list etc. These documents can generally be submitted to the unions through their websites. Applies to women only. Takes place simultaneously with previous procedure. Page 16   submitted to the unions through their websites. Doing to women2018 Business Applies only. Brazil Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. Building quality control index (0-15) - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 17   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. Building quality control index (0-15) - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Dealing with Construction Permits - São Paulo Page 18   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Brazil Dealing with Construction Permits - São Paulo Standardized Warehouse Estimated value of warehouse BRL 1,477,070.40 City Covered São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Procedures (number) 20 15.7 12.5 7.00 (Denmark) Time (days) 404 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.9 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 9.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.28: Chile (Rank: 15) 68.28: Mexico (Rank: 87) 48.90: São Paulo 47.28: China (Rank: 172) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in São Paulo – Procedure, Time and Cost Time Cost 400 0.5 350 0.4 Cost (% of warehouse value) 300 250 Time (days) 0.3 200 0.2 150 100 0.1 50 0 0 1 2 *3 *4 5 6 *7 *8 9 10 11 12 13 14 15 16 17 18 * 19 Page 19   * 20 component indicators. Doing Business 2018 Brazil Figure – Dealing with Construction Permits in São Paulo – Procedure, Time and Cost Time Cost 400 0.5 350 0.4 Cost (% of warehouse value) 300 250 Time (days) 0.3 200 0.2 150 100 0.1 50 0 0 1 2 *3 *4 5 6 *7 *8 9 10 11 12 13 14 15 16 17 18 * 19 * 20 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in São Paulo and comparator economies – Measure of Quality 14 13.0 11.7 12 9.6 10 9.0 8.8 Index score 8 6 4 2 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Dealing with Construction Permits in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain proof of land ownership from the Real Estate 1 day BRL 41 Registry Agency : Real Estate Registry Attesting to proof of land ownership, this certi cate is valid for only 30 days. 2 Obtain results of topographical study 5 days BRL 6,500 Agency : Private licensed company A topographical study is conducted prior to construction to measure the levels on the speci c terrain. It is a general technical requirement when building a structure of this class. Cannot be simultaneous with the previous procedure, as a proof of land ownership is required before any eld work Page 20   São Paulo Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Dealing with Construction Permits in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain proof of land ownership from the Real Estate 1 day BRL 41 Registry Agency : Real Estate Registry Attesting to proof of land ownership, this certi cate is valid for only 30 days. 2 Obtain results of topographical study 5 days BRL 6,500 Agency : Private licensed company A topographical study is conducted prior to construction to measure the levels on the speci c terrain. It is a general technical requirement when building a structure of this class. Cannot be simultaneous with the previous procedure, as a proof of land ownership is required before any eld work can be conducted on the plot. 3 Obtain Technical Term of Responsibility -ART 0.5 days BRL 215 Agency : Engineers Syndicate (Crea) Before the application process, the engineer and architect responsible for the project need to obtain an ART. An ART is a document required by the Engineers Syndicate (Crea) that de nes, for legal purposes, who is responsible for the execution of works or services and provides an opportunity for professionals to register their works or services with Crea. The ART is required for each project according to the Federal Law N° 6.496 of 7 December 1977. This procedure can be activated without the proof of ownership. It is possible to obtain it online within a couple of hours and it costs BRL 167.68. 4 Request and obtain proof of land tax payment from the Treasury 0.5 days no charge Department of the Municipality Agency : Treasury (Municipality) Attesting to payment of land taxes, this certi cate may be issued online and is valid for only 30 days. This request can be done in parallel with procedure 2. 5 Register employees with the Social Security O ce 0.5 days no charge Agency : Social Security O ce For each construction site, BuildCo must register employees separately with the Social Security O ce (Instituto Nacional de la Seguridad Social, INSS). This procedure can only be done whenever there is a proof of land tax payment,so it cannot be simultaneous with the previous one 6 Request and obtain construction approval permit and construction 274 days BRL 4,200 execution permit Agency : Municipality BuildCo must apply for construction approval permit and the construction execution permit with the Municipality. If the project conforms to municipal legislation, zoning laws, and the municipal building code, the Municipality will issue a document approving construction. To apply for these permits, BuildCo must submit the architectural drawings and real estate Page 21   This procedure can only be done whenever there is a proof of land tax Doing payment,so be simultaneous with the previous one it cannotBrazil Business 2018 6 Request and obtain construction approval permit and construction 274 days BRL 4,200 execution permit Agency : Municipality BuildCo must apply for construction approval permit and the construction execution permit with the Municipality. If the project conforms to municipal legislation, zoning laws, and the municipal building code, the Municipality will issue a document approving construction. To apply for these permits, BuildCo must submit the architectural drawings and real estate documentation (real estate title or real estate tax). After examining the project’s architecture and engineering and issuing the permit, the Municipality examines the practical and installation aspects and begins the process of issuing an execution permit. BuildCo can request both permits simultaneously, but the Municipality grants the permits in a speci c order. Valid for a year, the construction approval permit is a prerequisite for subsequent procedures. The construction execution permit is valid for 3 years. Due to backlog of projects, the time required for this procedure is at least 9 to 10 months. 7 Request and obtain equipment operating permit 60 days BRL 75 Agency : Municipality The permit allows the use of construction equipment. This can be done in parallel with the approval permit request, so it can be a simultaneous procedure. 8 Submit project for analysis by Fire Department and obtain report 30 days BRL 98 Agency : Fire Department Build Co must present the building project to the Fire department for approval and obtain a report which includes all the re security measures that need to be implemented. This can be done in parallel with the approval permit request, so it can be a simultaneous procedure. 9 Receive random inspection from Municipality 1 day no charge Agency : Municipality According to Law No. 11.228, annex 1, No. 6, Municipality is legally entitled to perform inspection required during the construction. The inspections can be carried out anytime, or upon complaint of a citizen. This can only happen when the construction has been started. As a result, it cannot be a simultaneous procedure. 10 Receive labor inspection from Labor Public Attorneys’ O ce 1 day no charge Agency : Labor Public Attorneys' O ce This submission happens whenever BuildCo. was granted authorization to start construction. As a result, it cannot be done simultaneously. 11 Submit proof of payment to the Social Security O ce 0.5 days no charge Agency : Social Security O ce At the end of construction, BuildCo must submit proof of payment to its construction workers. 12 Request inspection from Fire Department 1 day no charge Page 22   Agency : Fire Department At the end of construction, BuildCo must submit proof of payment to its Doing construction Business 2018workers. Brazil 12 Request inspection from Fire Department 1 day no charge Agency : Fire Department The re department can receive a request from BuildCo whenever the construction of the warehouse has been nalized. This means that this procedure cannot be a simultaneous one with the previous one. 13 Receive inspection from the Fire Department 1 day no charge Agency : Fire Department The Fire Department must approve the warehouse safety equipment. This inspection is valid for 3 years. This request is made by BuildCo. upon nalizing the construction. As a result, it cannot be a simultaneous procedure. 14 Obtain Fire Department Certi cate (Certi cado de Aprovação - AVCB) 29 days BRL 130 Agency : Fire Department This certi cate is only given when the Fire Department has already conducted its inspection. So this cannot be a simultaneous procedure. 15 Request nal inspection from Municipality 1 day no charge Agency : Municipality After construction is completed, BuildCo must request the certi cate of occupancy ("Habite-se") from the Municipality to attest that the construction is nished and that the work was performed according to the construction approval permit and the construction execution permit. as a result, this cannot be a simultaneous procedure. The approval is valid until the rst amendment of the construction project. To request and obtain the conclusion approval, BuildCo must submit the following documents: • Application form, addressed to the São Paulo Municipal Secretariat of Housing and Urban Development (SEHAB) • First page of construction and territorial booklet • Construction permit • Engineering and CREA card • Receipt evidencing payment of construction work tax • Sets of approved plans (two) • Administrative tax • ART of chief engineer 16 Receive nal inspection from Municipality 1 day no charge Agency : Municipality The inspection is conducted once it has been requested by BuildCo. So this cannot be a simultaneous procedure. 17 Obtain certi cate of occupancy ("Habite-se") 28 days BRL 460 Agency : Municipality In order to obtain the certi cate of occupancy, the Municipality should have conducted its nal inspection. So this cannot be a simultaneous procedure. 18 Request and obtain operation license 60 days BRL 25 Agency : Municipality Upon completing the construction and receiving the Fire Department inspection, BuildCo must apply for the relevant operation license at the Page 23   Municipality and show evidence that the company can develop the speci c In order to obtain the certi cate of occupancy, the Municipality should have Businessits Doing conducted Brazil So this cannot be a simultaneous procedure. nal inspection. 2018 18 Request and obtain operation license 60 days BRL 25 Agency : Municipality Upon completing the construction and receiving the Fire Department inspection, BuildCo must apply for the relevant operation license at the Municipality and show evidence that the company can develop the speci c business at the site. To obtain this license, the company must present all warehouse project documentation. If the warehouse is to be sold after completion, this procedure might be done by the buyer and not BuildCo. However, in order to so the occupancy permit must be issued, so this cannot be a simultaneous procedure. Request and connect to water and sewage 30 days no charge 19 Agency : Water and Sewerage Agencies (SABESP) The connection request is led with the Waste Management Company (SABESP), a di erent organization regarding the operation license. So, this can be a simultaneous procedure. Register building with the Real Estate Registry 15 days BRL 1,273 20 Agency : Real Estate Registry At the end of construction, BuildCo must register the warehouse at the Real Estate Registry. BuildCo must present the title of the land and the certi cate from the Social Security O ce. So, this can be a simultaneous procedure. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in São Paulo – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during Unscheduled 0.0 construction? (0-2) inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 Page 24   inspections are Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Dealing with Construction Permits in São Paulo – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during Unscheduled 0.0 construction? (0-2) inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the Page 25   supervision; Liability Doing 2018 regimes and insurance Business index (0-2) Brazil 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. Dealing with Construction Permits - Rio de Janeiro Standardized Warehouse Estimated value of warehouse BRL 1,477,070.40 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedures (number) 18 15.7 12.5 7.00 (Denmark) Time (days) 481 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.6 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 9.0 8.8 11.4 15.00 (3 Economies) Page 26   architect or engineer. Doing Business 2018 Brazil Dealing with Construction Permits - Rio de Janeiro Standardized Warehouse Estimated value of warehouse BRL 1,477,070.40 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedures (number) 18 15.7 12.5 7.00 (Denmark) Time (days) 481 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.6 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 9.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.28: Chile (Rank: 15) 68.28: Mexico (Rank: 87) 51.28: Rio de Janeiro 47.28: China (Rank: 172) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Rio de Janeiro – Procedure, Time and Cost Time Cost 0.3 400 0.25 Cost (% of warehouse value) 0.2 300 Time (days) 0.15 200 0.1 100 0.05 Page 27   0 0 component indicators. Doing Business 2018 Brazil Figure – Dealing with Construction Permits in Rio de Janeiro – Procedure, Time and Cost Time Cost 0.3 400 0.25 Cost (% of warehouse value) 0.2 300 Time (days) 0.15 200 0.1 100 0.05 0 0 1 2 *3 *4 5 6 *7 8 9 10 11 12 13 14 15 16 * 17 * 18 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Rio de Janeiro and comparator economies – Measure of Quality 14 13.0 11.7 12 9.6 10 9.0 8.8 Index score 8 6 4 2 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Dealing with Construction Permits in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain proof of land ownership from the Real Estate 7 days BRL 73 Registry Agency : Real Estate Registry Attesting to proof of land ownership, this certi cate is valid for only 30 days. This Certi cate is one of the documents to be included in the application for the construction permit. It takes 5 business days and it costs BRL 72,72 (according to PORTARIA CGJ for 2017) 2 Obtain a topographic map 15 days BRL 3,500 Agency : Private licensed company A topographic map is obtained prior to development of the building plans to Page 28   Rio de Janeiro Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Dealing with Construction Permits in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain proof of land ownership from the Real Estate 7 days BRL 73 Registry Agency : Real Estate Registry Attesting to proof of land ownership, this certi cate is valid for only 30 days. This Certi cate is one of the documents to be included in the application for the construction permit. It takes 5 business days and it costs BRL 72,72 (according to PORTARIA CGJ for 2017) 2 Obtain a topographic map 15 days BRL 3,500 Agency : Private licensed company A topographic map is obtained prior to development of the building plans to assess the levels on the speci c terrain. It is a general technical requirement when building a structure of this class.Although the law does not speci cally ask for a topographic map to be submitted to obtain a building permit, it is consistently conducted in practice by professionals. 3 Obtain Technical Term of Responsibility -ART 0.5 days BRL 215 Agency : Engineers Syndicate (Crea) Before the application process, the engineer and architect responsible for the project need to obtain an ART. An ART is a document required by the Engineers Syndicate (Crea) that de nes, for legal purposes, who is responsible for the execution of works or services and provides an opportunity for professionals to register their works or services with Crea. The ART is required for each project according to the Federal Law N° 6.496 of 7 December 1977. It is possible to obtain it online within a couple of hours. The value of the fee varies according to the value of the contract or the cost of the work. For this project, the cost for 2017 is BRL 214.82. 4 Request and obtain proof of land tax payment from the Treasury 0.5 days no charge Department of the Municipality Agency : Treasury (Municipality) Attesting to payment of land taxes, this certi cate may be issued online and is valid for only 30 days. This document needs to be included in the application sent to the municipality. The website where it can be obtained is: www.rio.rj.gov.br/smf/siam2/situacao scal.asp 5 Register employees with the Social Security O ce 0.5 days no charge Agency : Social Security O ce For each construction site, BuildCo must register employees separately with the Social Security O ce (Instituto Nacional de la Seguridad Social, INSS). The website to register employees is: http://www.servicos.gov.br/. If the employer does not register all workers, it can get ned during the inspection. This can only be done when the previous documents have been issued. 6 Request and obtain construction approval permit and construction 365 days BRL 805 execution permit Agency : Municipality Page 29   inspection. This can only be done when the previous documents have been Doing issued. Business 2018 Brazil 6 Request and obtain construction approval permit and construction 365 days BRL 805 execution permit Agency : Municipality BuildCo must apply for construction approval permit and the construction execution permit with the Municipality. If the project conforms to municipal legislation, zoning laws, and the municipal building code, the Municipality will issue a document approving construction. To apply for these permits, BuildCo must submit the architectural drawings and real estate documentation (real estate title or real estate tax). After examining the project’s architecture and engineering and issuing the permit, the Municipality examines the practical and installation aspects and begins the process of issuing an execution permit. BuildCo can request both permits simultaneously, but the Municipality grants the permits in a speci c order. Valid for a year, the construction approval permit is a prerequisite for subsequent procedures. The construction execution permit is valid for 3 years. Due to backlog of projects, the time required for this procedure is at least 9 to 10 months. This procedure cannot be simultaneous with the previous one since BuildCo. needs to register its employees. 7 Submit project for analysis by Fire Department and obtain report 30 days BRL 375 Agency : Fire Department Build Co must present the building project to the re department for approval and obtain a report which includes all the re security measures that need to be implemented. The applicant needs to send the design, the ART of the engineer, ownership ownership certi cate and copy of ID to the re department. It takes 1 to 2 months. The cost of this procedure is determined by a fee set by SEDEC, the annual scal unit of reference (UFIR) and the number of sq. m of the building. 8 Receive labor inspection from Labor Public Attorneys’ O ce 1 day no charge Agency : Labor Public Attorneys' O ce The Labor Public Attorneys' O ce does random inspections in order to check whether all employees were registered and if the security measures are being undertaken. It will happen once, but may happen more than once in case the Labor Secretary receives any complaints. This can only happen once the construction is ongoing. Therefore, it cannot be a simultaneous one. 9 Submit proof of payment to the Social Security O ce 0.5 days no charge Agency : Social Security O ce At the end of construction, BuildCo must submit proof of payment to its construction workers. the company should have passed the inspections by the Labor Agency. So, it cannot be a simultaneous procedure together with the last one. 10 Request inspection from Fire Department 1 day no charge Agency : Fire Department Once the works have been implemented according to the report, BuildCo must request an inspection so that the re department veri es that the works were done according to their report. The inspection usually happens after 1 month of being requested. The re department will then issue a certi cate that approves the construction called “ Certi cado de Aprovação”. Page 30   This procedure happens once the proof of payment to the builders has been the Labor Agency. So, it cannot be a simultaneous procedure together with Doing the last one.2018 Business Brazil 10 Request inspection from Fire Department 1 day no charge Agency : Fire Department Once the works have been implemented according to the report, BuildCo must request an inspection so that the re department veri es that the works were done according to their report. The inspection usually happens after 1 month of being requested. The re department will then issue a certi cate that approves the construction called “ Certi cado de Aprovação”. This procedure happens once the proof of payment to the builders has been handed. Legal basis: Decree 897 of 21 of September,1976. 11 Receive inspection from Fire Department 1 day no charge Agency : Fire Department The Fire Department must approve the warehouse safety equipment. This inspection is valid for 3 years.It can only be conducted after it was requested, so there is no simultaneity. 12 Obtain Fire Department Certi cate (Certi cado de Aprovação - AVCB) 29 days BRL 71 Agency : Fire Department The “Certi cado de Aprovação” needs to be included in the application to obtain the operation License. This is issued after BuildCo. passes the inspection, so it cannot be simultaneous. The cost is determined by a fee set by SEDEC and the annual scal unit of reference (UFIR) 13 Request nal inspection from Municipality 1 day no charge Agency : Municipality After construction is completed, BuildCo must request the certi cate of occupancy ("Habite-se") from the Municipality to attest that the construction is nished and that the work was performed according to the construction approval permit and the construction execution permit. The approval is valid until the rst amendment of the construction project. To request and obtain the conclusion approval, BuildCo must submit the following documents: • Application form • First page of construction and territorial booklet • Construction permit • Engineering and CREA card • Receipt evidencing payment of construction work tax • Sets of approved plans (two) • Administrative tax • ART of chief engineer Since this inspection can only be requested after the certi cate is handed, it cannot be a simultaneous one. 14 Receive nal inspection from Municipality 1 day no charge Agency : Municipality This inspection is only possible once it has been requested, so it cannot be simultaneous. 15 Obtain certi cate of occupancy ("Habite-se") 28 days BRL 1,610 Agency : Municipality Page 31   This inspection is only possible once it has been requested, so it cannot be Doing simultaneous. Business 2018 Brazil 15 Obtain certi cate of occupancy ("Habite-se") 28 days BRL 1,610 Agency : Municipality This certi cate can only be done once the occupancy certi cate was granted, so no simultaneity can be done with this procedure. 16 Request and connect to water and sewage 30 days no charge Agency : Water and Sewerage Agencies (CEDAE) The connection request is led with the Waste Management Company (CEDAE). This line can be requested once the certi cate of occupancy is being issued, so this cannot be a simultaneous procedure. Register building with the Real Estate Registry 30 days BRL 1,094 17 Agency : Real Estate Registry At the end of construction, BuildCo must register the warehouse at the Real Estate Registry. BuildCo must present the habite-se (occupation permit), the ownership certi cate, and the ID of the parties in order to update the title. This procedure can be done ins simultaneity with the previous one, as they respond to di erent institutions. Request and obtain operation license 7 days BRL 803 18 Agency : Municipality Upon completing the construction and receiving the Fire Department inspection, BuildCo must apply for the relevant operation license at the Municipality and show evidence that the company can develop the speci c business at the site. To obtain this license, the company must present all warehouse project documentation. If the warehouse is to be sold after completion, this procedure might be done by the buyer and not BuildCo. This procedure can be done in parallel with the Real Estate registration. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Rio de Janeiro – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed Page 32   engineer. Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Dealing with Construction Permits in Rio de Janeiro – Measure of Quality Answer Score Building quality control index (0-15) 9.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during No inspections 0.0 construction? (0-2) are legally required during construction.. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company; Owner Page 33   or investor. Liability Doing 2018 regimes and insurance Business index (0-2) Brazil 1.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company; Owner or investor. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer; Passing a certi cation exam. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Page 34   Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the certi cation exam. Doing Business 2018 Brazil Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - 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 Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 35   Getting Electricity - São Paulo frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Brazil Getting Electricity - São Paulo Standardized Connection Price of electricity (US cents per kWh) 14.2 Name of utility AES Eletropaulo City Covered São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Procedures (number) 4 5.5 4.7 2 (United Arab Emirates) Time (days) 66 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 56.9 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 5 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.49: Chile (Rank: 44) 81.07: São Paulo 70.99: Mexico (Rank: 92) 68.83: China (Rank: 98) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in São Paulo – Procedure, Time and Cost Time Cost 60 60 50 (% of income per capita) 50 40 40 Time (days) 30 30 Page 36   20 20 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Getting Electricity in São Paulo – Procedure, Time and Cost Time Cost 60 60 50 Cost (% of income per capita) 50 40 40 Time (days) 30 30 20 20 10 10 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in São Paulo and comparator economies – Measure of Quality 8 7 7 6 6 6 5 Index score 5 4.2 4 3 2 1 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Getting Electricity in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to AES Electropaulo and receive service layout 30 calendar days BRL 0 Agency : AES Electropaulo The customer needs to submit, online or in person, a set of documents, including the electrical project, to AES Eletropaulo. After receiving the documents, AES Eletropaulo technicians will conduct an external site inspection and develop a work project to make the necessary adjustments in the network with estimated costs and time and send it back to the costumer. The site visit is done on the outside of the property and the customer need not be present during the site visit. 2 Sign energy supply agreement with utility 1 calendar day BRL 16,736.54 Page 37   Agency : AES Electropaulo São Paulo Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Getting Electricity in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to AES Electropaulo and receive service layout 30 calendar days BRL 0 Agency : AES Electropaulo The customer needs to submit, online or in person, a set of documents, including the electrical project, to AES Eletropaulo. After receiving the documents, AES Eletropaulo technicians will conduct an external site inspection and develop a work project to make the necessary adjustments in the network with estimated costs and time and send it back to the costumer. The site visit is done on the outside of the property and the customer need not be present during the site visit. 2 Sign energy supply agreement with utility 1 calendar day BRL 16,736.54 Agency : AES Electropaulo The costumer receives an invoice with the estimated value of the work, a contract and a service order. Once the contract and the service order are signed and the invoice is paid, AES Eletropaulo will make the necessary adjustments in its network. 3 Receive external works from utility 33 calendar days BRL 0 Agency : AES Electropaulo AES Eletropaulo executes the necessary adjustments to the electricity network and informs the costumer that the work is done and that a request for the external connection must be made to AES Eletropaulo 4 Receive meter installation and electricity ow from utility 2 calendar days BRL 83.19 Agency : AES Electropaulo The customer requests the external connection to AES Eletropaulo and, after no more than two days, the electricity is available at the switchboard/meter. Takes place simultaneously with previous procedure. Details – Getting Electricity in São Paulo – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 5 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 15.9 System average interruption frequency index (SAIFI) 6.9 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Page 38   Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Getting Electricity in São Paulo – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 5 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 15.9 System average interruption frequency index (SAIFI) 6.9 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online https://www.aeseletr opaulo.com.br/para- seu-negocio/prazos- e- tarifas/conteudo/tar ifa-de-energia- eletrica Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Getting Electricity - Rio de Janeiro Standardized Connection Price of electricity (US cents per kWh) 17.2 Page 39   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Brazil Getting Electricity - Rio de Janeiro Standardized Connection Price of electricity (US cents per kWh) 17.2 Name of utility Light City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedures (number) 4 5.5 4.7 2 (United Arab Emirates) Time (days) 62 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 50.8 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.64: Rio de Janeiro 82.49: Chile (Rank: 44) 70.99: Mexico (Rank: 92) 68.83: China (Rank: 98) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Rio de Janeiro – Procedure, Time and Cost Time Cost 60 60 50 50 (% of income per capita) 40 40 Time (days) 30 30 Page 40   20 20 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Getting Electricity in Rio de Janeiro – Procedure, Time and Cost Time Cost 60 60 50 50 Cost (% of income per capita) 40 40 Time (days) 30 30 20 20 10 10 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Rio de Janeiro and comparator economies – Measure of Quality 8 7 7 6 6 6 6 Index score 5 4.2 4 3 2 1 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Getting Electricity in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Light and await estimate 30 calendar days BRL 0 Agency : Light The customer submits an application along with the following documentation: Sign Up Form Technical Information - Substations Simpli ed - duly completed and with ALL data and assessed the installed load demand; Descriptive loads (2 copies); Plant Situation / Location (4 copies) listed; Technical Responsibility - ART duly repaid (1 copies); Power of Attorney, on letterhead and notarization as attached model (1 copy) ; Page 41   Charter Service Request (2 copies); Rio de Janeiro Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Getting Electricity in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Light and await estimate 30 calendar days BRL 0 Agency : Light The customer submits an application along with the following documentation: Sign Up Form Technical Information - Substations Simpli ed - duly completed and with ALL data and assessed the installed load demand; Descriptive loads (2 copies); Plant Situation / Location (4 copies) listed; Technical Responsibility - ART duly repaid (1 copies); Power of Attorney, on letterhead and notarization as attached model (1 copy) ; Charter Service Request (2 copies); Letter of no parallelism with the network of LIGHT (2 copies). Copy of the contract or bylaws in force, or the like, according to the type of legal entity, and subsequent changes, together with the election of its current directors, duly registered with the competent agency documents; Copy of card from the National Register of Legal Entities - CNPJ; Copies of Identity and Registration of Individuals (CPF) of the Legal Representatives; Power of Attorney with notarized, if applicable ; Copy of Lease Agreement or similar, if the customer is not the owner of the property; Copy of proof of ownership of the property (certi cate of encumbrances); All documents have to be notarized. Each notarization costs BRL 10. All documents should be already in possession of the applicant except for the ART and the proof of ownership. The utility has a deadline of 30 days to respond, according to Art. 31 of Resolution 414 of ANEEL. 2 Receive internal wiring inspection by utility 3 calendar days BRL 0 Agency : Light This inspection happens within 3 business days after the request is made and is free of charge. It is advisable that the electric engineer responsible for the works to be present, in case the technician conducting the inspection has questions about the process. This avoids further delays. 3 Receive external works from utility 27 calendar days BRL 15,000 Agency : Light Once the internal inspection is completed, Light undertakes the necessary works to connect the warehouse to the network. 4 Receive meter installation and electricity ow from utility 2 calendar days BRL 0 Agency : Light The client or a representative has to be present for the meter to be installed. The client starts to receive energy within 1 day. Takes place simultaneously with previous procedure. Details – Getting Electricity in Rio de Janeiro – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Page 42   Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Getting Electricity in Rio de Janeiro – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 1 System average interruption duration index (SAIDI) 11.7 System average interruption frequency index (SAIFI) 6.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.light.com .br/para- residencias/Sua- Conta/composicao- da-tarifa.aspx Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 43   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Brazil Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Registering Property - São Paulo Standard Property Transfer Property value BRL 1,477,070.40 Page 44   Doing Business 2018 Brazil Registering Property - São Paulo Standard Property Transfer Property value BRL 1,477,070.40 City Covered São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Procedures (number) 14 7.2 4.6 1.00 (4 Economies) Time (days) 25 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 3.6 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 14.0 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.15: China (Rank: 41) 70.90: Chile (Rank: 61) 60.81: Mexico (Rank: 99) 52.84: São Paulo Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in São Paulo – Procedure, Time and Cost Time Cost 25 3.5 3 20 Cost (% of property value) 2.5 Time (days) 15 2 1.5 10 1 5 0.5 0 0 1 *2 3 *4 *5 *6 *7 *8 *9 * 10 11 12 13 * 14 Procedures (number) Page 45   registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Registering Property in São Paulo – Procedure, Time and Cost Time Cost 25 3.5 3 20 Cost (% of property value) 2.5 Time (days) 15 2 1.5 10 1 5 0.5 0 0 1 *2 3 *4 *5 *6 *7 *8 *9 * 10 11 12 13 * 14 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in São Paulo and comparator economies – Measure of Quality 20 18.3 18 16.3 16 14.0 14.0 14 12.0 Index score 12 10 8 6 4 2 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Registering Property in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Acquire 10 Certi cates of Registries and Disputes (Certidão dos Cartórios Two days BRL 12.24 each (the de Protestos) from the Distributor of Disputes Registry (simultaneous with total is BRL 122.40) Agency : Disputes Registry (Cartórios de protesto) procedures 1, 3, 4, 5, 6, 7, 8, 9 and 10) The buyer can request the certi cates on the existence of debts on the website: https://www.protesto.net.br/index.php?act=certidao. Although this certi cate is not required by law, it is common practice to request it particularly in transactions between companies that tend to be more conservative and are usually assisted by lawyers. The seller will usually request 5-year certi cates. 10-year certi cates are also available for higher fees. There are 10 Protest Notaries in São Paulo, and it is necessary to research them all. Page 46   São Paulo Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Registering Property in São Paulo – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Acquire 10 Certi cates of Registries and Disputes (Certidão dos Cartórios Two days BRL 12.24 each (the de Protestos) from the Distributor of Disputes Registry (simultaneous with total is BRL 122.40) Agency : Disputes Registry (Cartórios de protesto) procedures 1, 3, 4, 5, 6, 7, 8, 9 and 10) The buyer can request the certi cates on the existence of debts on the website: https://www.protesto.net.br/index.php?act=certidao. Although this certi cate is not required by law, it is common practice to request it particularly in transactions between companies that tend to be more conservative and are usually assisted by lawyers. The seller will usually request 5-year certi cates. 10-year certi cates are also available for higher fees. There are 10 Protest Notaries in São Paulo, and it is necessary to research them all. 2 Acquire a Civil Distributor's Certi cate (Certidão dos Distribuidores 1 day BRL 19.4 (x 3 Cívies), a Fiscal Executive Certi cate (Certidão de Executivos Fiscais) and (simultaneous with certificates) + BRL 5.6 a Bankruptcy Certi cate (Certidão de Falencias e Concordatas) from the procedures 1, 2, 4, for every additional City Court O ce 5, 6, 7, 8, 9 and 10) sheet Agency : Distributor of the State Courts ( Tribunal de Justiça de São Paulo) These three certi cates guarantee that the seller does not owe any payment as a result of a civil, scal, and commercial legal dispute. Additionally, it states that no pending sentences or legal proceedings are linked to the seller. These certi cates can be retrieve online since August 2015 at https://esaj.tjsp.jus.br/sco/abrirCadastro.do. It takes around 1 day for the certi cate to be issued if it is negative (that is, that the seller does not have any pending payment nor legal proceedings) Certi cates are issued immediately when requested in person at the Fórum do Tribunal de Justiça. 3 Obtain a Labor Justice Certi cate (Certidão da Justiça do Trabalho) from Less than a day No cost the Regional Labor Court (online procedure Agency : Regional Labor Court (Tribunal Regional de Trabalho No. 2) simultaneous with procedures 2, 3, 4, This document is not required by law. Technically, the buyer and seller can 5, 6, 7, 8, 9 and 10) agree to trust that all these checks are represented and warranted by the seller without needing to submit the certi cate to the public notary. In practice, however, for transactions between companies, the seller will provide these documents. Since January 2016, the Labor Justice certi cate can be retrieved online immediately according to Act GP/CR No. 1/2016. This certi cate identi es all the ongoing procedures at the Regional Labor Court in which the company (buyer) is a defendant. The certi cate is valid for 90 days, and its authenticity can be veri ed online as well. 4 Obtain a Certi cate of Good Standing on Labor Debts (Certidão Negativa Less than a day no cost de Débitos Trabalhistas) (online procedure Agency : High Labor Court (Tribunal Superior do Trabalho) and simultaneous Page 47   with procedures 1, (buyer) is a defendant. The certi cate is valid for 90 days, and its authenticity Doing can be veri ed Business as well. onlineBrazil 2018 4 Obtain a Certi cate of Good Standing on Labor Debts (Certidão Negativa Less than a day no cost de Débitos Trabalhistas) (online procedure Agency : High Labor Court (Tribunal Superior do Trabalho) and simultaneous with procedures 1, The Certi cate of Good Standing on Labor Debts is not required by law and 2, 3, 5, 6, 7, 8, 9 and therefore does not prevent the registration of real estate transactions. It is, 10) however, common practice and highly recommended to check the standing on labor debts of the seller. 5 Obtain a 20-year certi cate (Certidão Vintenária) Less than a day BRL 49.94 Agency : Real Estate Property Registry (Cartório de Registro de Imóveis) (online procedure and simultaneous The 20-year certi cate (Certidão Vintenária) needs to be obtained in order to with procedure 1, 2, (i) certify the successive chain of owners (and ownership titles) of the plot in 3, 4, 6, 7, 8, 9 and the past 20 years; (ii) check if the seller is really the owner of the property; 10) and (iii) check about any encumbrances over the land. The certi cate might be requested online at https://www.registradores.org.br/Servicos/frmTabelaCustas.aspx. The digital certi cate has the same legal validity as the one issued on paper format. 6 Request a Land-Tax Certi cate and a Cadastral Certi cate (Certidão de Less than a day no cost if obtained Dados Cadastrais do Imovel) from City Hall (online procedure online Agency : Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São and simultaneous Paulo) with procedure 1, 2, 3, 4, 5, 7, 8, 9 and These certi cates can be obtained in the website: www.prefeitura.sp.gov.br 10) They will establish if there is any pending tax debt a ecting the property. The certi cate is free if obtained online. The buyer can waive this certi cate if he assumes the obligation to pay all pending land tax debt related to the real state according to § 2 of Art. 1 of Decree 93.240/86. 7 Acquire a Clearance Certi cate from Tax Agency and a Federal Tax Less than a day no cost Clearance Certi cate (Certidão de Débitos Relativos a Créditos (online procedure Tributários Federais e à Dívida Ativa da União) and simultaneous Agency : Federal Tax agency (Ministério da Fazenda, Procuradoria Geral da with procedure 1, 2, Fazenda Nacional, Secretaria da Receita Federal do Brasil - RFB) 3, 4, 5, 6, 8, 9 and 10) The joint certi cate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) can be obtained online at www.receita.fazenda.gov.br since November 2014. The joint certi cate includes: (i) Clearance Certi cate (Certidão Conjunta Negativa de Débitos relativos aos Tributos Federais e à Dívida Ativa da União emitida pelo Ministério da Fazenda – Procuradoria Geral da Fazenda Nacional – Secretaria da Receita Federal do Brasil) from the Tax Agency: this certi cate includes the debts related to taxes administered by the Internal Revenue Service of Brazil (RFB) and the inscriptions on Union Debts with the General Attorney of National Treasury (PGFN). This certi cate, which is issued in the name of the headquarters and applies to all its subsidiaries, refers only to the information of the taxpayer within the RFB and PGFN, and does not include social security contributions and the contributions due, by law, to third parties, including those debts enrolled in the National Social Security Page 48   Institute (INSS), that are object of the second certi cate. pending land tax debt related to the real state according to § 2 of Art. 1 of Doing Decree 93.240/86. Business 2018 Brazil 7 Acquire a Clearance Certi cate from Tax Agency and a Federal Tax Less than a day no cost Clearance Certi cate (Certidão de Débitos Relativos a Créditos (online procedure Tributários Federais e à Dívida Ativa da União) and simultaneous Agency : Federal Tax agency (Ministério da Fazenda, Procuradoria Geral da with procedure 1, 2, Fazenda Nacional, Secretaria da Receita Federal do Brasil - RFB) 3, 4, 5, 6, 8, 9 and 10) The joint certi cate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) can be obtained online at www.receita.fazenda.gov.br since November 2014. The joint certi cate includes: (i) Clearance Certi cate (Certidão Conjunta Negativa de Débitos relativos aos Tributos Federais e à Dívida Ativa da União emitida pelo Ministério da Fazenda – Procuradoria Geral da Fazenda Nacional – Secretaria da Receita Federal do Brasil) from the Tax Agency: this certi cate includes the debts related to taxes administered by the Internal Revenue Service of Brazil (RFB) and the inscriptions on Union Debts with the General Attorney of National Treasury (PGFN). This certi cate, which is issued in the name of the headquarters and applies to all its subsidiaries, refers only to the information of the taxpayer within the RFB and PGFN, and does not include social security contributions and the contributions due, by law, to third parties, including those debts enrolled in the National Social Security Institute (INSS), that are object of the second certi cate. (ii) The Federal Tax Clearance Certi cate (Certidão Negativa de Débitos relativos às Contribuições Previdenciárias e às de Terceiros emitida pelo Ministério da Fazenda, Secretaria da Receita Federal do Brasil) refers exclusively to social security contributions and the contributions owed by law, to third parties, including those enrolled in Union Debts (Dívida Ativa da União - DAU) and does not include other taxes administered by RFB and the remaining debts in the DAU, administered by the General Attorney of National Treasury (PGFN) object PGFN Joint Certi cate / RFB. If one is a certi ed representative of the company with a passcode, one can obtain this certi cate online at www.receita.fazenda.gov.br/previdencia/CND free of charge. The certi cate was formerly provided by the National Social Security Institute (INSS), but is now provided by the Internal Revenue Service, after both agencies were partially uni ed according to Law N° 11.457/07. 8 Acquire a Worker’s Fund Certi cate (Certidão de Regularidade de Less than a day no cost Situação do FGTS) at the federal bank- Caixa Economica Federal (online procedure Agency : Federal bank (Caixa Economica Federal) and simultaneous with procedure 1, 2, The Worker's Fund Certi cate assures that the company has kept its pension 3, 4, 5, 6, 7, 9 and fund plan up to date with payments. This certi cate is obtained online at the 10) site Caixa Economica (https://webp.caixa.gov.br/cidadao/Crf/FgeCfSCriteriosPesquisa.asp) free of charge. It is not required by law, but in practice it is usually requested by the buyer in transactions between companies. 9 Acquire a Federal Justice Certi cate (Certidão da Justiça Federal) from Less than a day no cost the Receita Federal - (Certidão de Distribuição de Ações e Execuções (online procedure Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais and simultaneous Adjuntos junto ao Poder Judiciário – Justiça Federal de Primeiro Grau em with procedures 1, São Paulo) 2, 3, 4, 5, 6, 7, 8 and Agency : Justiça Federal 10) This certi cate is obtained online at (http://www.jfsp.jus.br/certidoes- Page 49   emissaoonline/). The certi cate will show if there are any pending cases at charge. It is not required by law, but in practice it is usually requested by the Doing buyer in transactions Business between companies. 2018 Brazil 9 Acquire a Federal Justice Certi cate (Certidão da Justiça Federal) from Less than a day no cost the Receita Federal - (Certidão de Distribuição de Ações e Execuções (online procedure Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais and simultaneous Adjuntos junto ao Poder Judiciário – Justiça Federal de Primeiro Grau em with procedures 1, São Paulo) 2, 3, 4, 5, 6, 7, 8 and Agency : Justiça Federal 10) This certi cate is obtained online at (http://www.jfsp.jus.br/certidoes- emissaoonline/). The certi cate will show if there are any pending cases at civil, tax, criminal and special federal criminal courts. If the company has any pending claims, the certi cate will have to be picked up in person by a representative at the Justiça Federal. Notary obtains company information Less than a day no cost 10 Agency : Company Registry (Junta Comercial de Estado de São Paulo) (online procedure and simultaneous The notary will check the website of the Company Registry (Junta Comercial) with procedures 1, to make sure that (i) the articles of association presented by the parties and 2, 3, 4, 5, 6, 7, 8 and (ii) the legal representatives mentioned in the articles of association 9) correspond with the most recent ones registered. 11 Pay transfer tax (ITB I) and other fees at a commercial Bank 1 day 3% of the property Agency : Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São value registered with Paulo) the cadastre of the Prefecture for ITBI The buyer has to pay the transfer tax before the parties can sign the transfer deed. The majority of notaries prefer to receive the tax payment themselves and then take care of transferring it to the Municipality because they are responsible for checking that the tax payment is correct. Notaries also have to le to the tax authorities a declaration of all the transactions that they were part of, given that they are jointly liable. For the ITBI, it is common practice for the notary to provide the payment form obtained online (http://www.prefeitura.sp.gov.br/cidade/secretarias/ nancas/servicos/itbi/) to the buyer. 12 Drafting of Public Deed of Purchase and Sale (Escritura Pública de Venda 3 days BRL 4,757 (according e Compra) by a Public Notary (Tabelião de Notas) to scale on Agency : Public Notary (Tabelião de Notas do Estado de São Paulo) http://www.cnbsp.or g.br/? The notary will review all the documents obtained in the previous pG=X190YWJlbGFzX2 Procedures and proceed to notarize the sale deed. Notary fees are incurred Vtb2x1bWVudG9z) for the notarization of the sale and purchase agreement. 13 Register the escritura (transfer deed) at the appropriate Real Estate 15 days BRL 3,508 (according Registry with jurisdiction over the property to nalize registration and to the schedule in name change https://www.registra Agency : Real Estate Registry (Cartório de Registro de Imóveis) dores.org.br/Servico s/frmTabelaCustas.a There are 18 Real Estate Registries in São Paulo. The registration of the deed spx) at the corresponding Real Estate Registry is required for the transfer of ownership of the property. It can be arranged directly by the parties or by the notary if the notary o ers this supplementary service. By law, the Real Estate Registry has 30 days to analyze the documents and register the transfer deed. Usually, the registry will come back with some issues that need to be xed prior to registration. Update the land taxation records (IPTU – Imposto Predial e Territorial 5 days ( no cost 14 Urbano) to the new owner's name at City Hall simultaneous with Agency : Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São procedure 13) Paulo) Page 50   transfer deed. Usually, the registry will come back with some issues that Doing need xed prior to be 2018 Business to registration. Brazil Update the land taxation records (IPTU – Imposto Predial e Territorial 5 days ( no cost 14 Urbano) to the new owner's name at City Hall simultaneous with Agency : Municipal Prefecture of Sao Paulo (Prefeitura Municipal de São procedure 13) Paulo) Theoretically, the Real Estate Registry should inform the Municipality about the transfer of the real estate and the Municipality should automatically update its land taxation records. In practice, however, this automatic system does not really work. The Municipality updates the records a few times a year, sometimes even only once a year. Therefore, in practice, the parties need to go to the Municipality and request the update. Takes place simultaneously with previous procedure. Details – Registering Property in São Paulo – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.0 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Cartórios de Registro de Imóveis de São Paulo In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Prefeitura Municipal de São Paulo In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 3.5 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Page 51   Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Registering Property in São Paulo – Measure of Quality Answer Score Quality of the land administration index (0-30) 14.0 Reliability of infrastructure index (0-8) 5.0 What is the institution in charge of immovable property registration? Cartórios de Registro de Imóveis de São Paulo In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Prefeitura Municipal de São Paulo In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 3.5 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://www.cnbs p.org.br/index.p hp? pG=X19wYWdpb mFz&idPagina=6 009 Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: For Notaries fees: http://www.cnbs Page 52   p.org.br/index.p immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Brazil Link for online access: For Notaries fees: http://www.cnbs p.org.br/index.p hp? pG=X190YWJlbGF zX2Vtb2x1bWVu dG9z For Land Registry fees: https://www.regi stradores.org.br/ Servicos/frmTab elaCustas.aspx Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://www.plana lto.gov.br/CCIVIL_ 03/leis/L6015co mpilada.htm (capitulo III law 6015) Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: Free of charge (http://www.pref eitura.sp.gov.br/ cidade/secretari as/ nancas/servi cos/certidoes/in dex.php?p=2404) Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://www.prefe itura.sp.gov.br/ci dade/secretarias / nancas/servico s/certidoes/inde x.php?p=2404 Page 53   Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 c time frame—and speciBusiness Doing if so, how does it communicate the service standard? 2018 Brazil Link for online access: http://www.prefe itura.sp.gov.br/ci dade/secretarias / nancas/servico s/certidoes/inde x.php?p=2404 Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 2.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private No 0.0 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Tribunal de property worth 50 times gross national income (GNI) per capita and located in the justica do estado largest business city, what court would be in charge of the case in the rst instance? de Sao Paulo How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Page 54   Number of land disputes in the largest business city in 2015: How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 a case (without suchBusiness Doing 2018appeal)? Brazil years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Registering Property - Rio de Janeiro Standard Property Transfer Property value BRL 1,477,070.40 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedures (number) 13 7.2 4.6 1.00 (4 Economies) Time (days) 41.5 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 2.5 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 13.5 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.15: China (Rank: 41) 70.90: Chile (Rank: 61) 60.81: Mexico (Rank: 99) 52.23: Rio de Janeiro Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Rio de Janeiro – Procedure, Time and Cost Time Cost 2.5 40 35 Page 55   2 e) Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Brazil Registering Property - Rio de Janeiro Standard Property Transfer Property value BRL 1,477,070.40 City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Procedures (number) 13 7.2 4.6 1.00 (4 Economies) Time (days) 41.5 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 2.5 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 13.5 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.15: China (Rank: 41) 70.90: Chile (Rank: 61) 60.81: Mexico (Rank: 99) 52.23: Rio de Janeiro Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Rio de Janeiro – Procedure, Time and Cost Time Cost 2.5 40 35 2 Cost (% of property value) 30 25 Time (days) 1.5 20 1 15 10 0.5 5 0 0 Page 56   1 *2 *3 *4 *5 *6 *7 *8 *9 10 11 12 13 registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Brazil Figure – Registering Property in Rio de Janeiro – Procedure, Time and Cost Time Cost 2.5 40 35 2 Cost (% of property value) 30 25 Time (days) 1.5 20 1 15 10 0.5 5 0 0 1 *2 *3 *4 *5 *6 *7 *8 *9 10 11 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Rio de Janeiro and comparator economies – Measure of Quality 20 18.3 18 16.3 16 13.5 14.0 14 12.0 Index score 12 10 8 6 4 2 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Registering Property in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a 20-year certi cate (Certidão Vintenária) 7 calendar days BRL 96.96 Agency : Real Estate Registry (Cartório de Registro de Imóveis) (simultaneous with procedures 2, 3, 4, The 20-year certi cate (Certidão Vintenária) needs to be obtained in order to 5, 6, 7, 8, and 9) (i) certify the successive chain of owners (and ownership titles) of the plot in the past 20 years; (ii) check if the seller is really the owner of the property; and (iii) check about any encumbrances over the land. It is only possible to complete this procedure online in the 1st, 8th and 9th Real Estate Registry (http://www.1sri-rj.com.br/; https://www.certidaori.com.br/; http://www.9rgirj.com.br/, respectively). Page 57   2 Obtain the certi cates of Certi cates of Registries and Disputes 3 to 5 days BRL 105.98 for each Rio de Janeiro Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Registering Property in Rio de Janeiro – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a 20-year certi cate (Certidão Vintenária) 7 calendar days BRL 96.96 Agency : Real Estate Registry (Cartório de Registro de Imóveis) (simultaneous with procedures 2, 3, 4, The 20-year certi cate (Certidão Vintenária) needs to be obtained in order to 5, 6, 7, 8, and 9) (i) certify the successive chain of owners (and ownership titles) of the plot in the past 20 years; (ii) check if the seller is really the owner of the property; and (iii) check about any encumbrances over the land. It is only possible to complete this procedure online in the 1st, 8th and 9th Real Estate Registry (http://www.1sri-rj.com.br/; https://www.certidaori.com.br/; http://www.9rgirj.com.br/, respectively). 2 Obtain the certi cates of Certi cates of Registries and Disputes 3 to 5 days BRL 105.98 for each (Certidão dos Cartórios de Protestos), Acquire a Civil Distributor's (simultaneous with Civil Distributor's Certi cate (Certidão dos Distribuidores Cívies), a Fiscal Executive procedures 1, 3, 4, Certificate issued by Certi cate (Certidão de Executivos Fiscais) and a Bankruptcy Certi cate 5, 6, 7, 8, 9) the 1st, 2nd and 4th (Certidão de Falencias e Concordatas) from the City Court O ce Distributor's and BRL Agency : Rio Rapido 101.96 for each certificate issued by These certi cates guarantee that all civil, scal, and commercial legal settlements have been nalized and no pending sentences or legal the 3rd Distributor; proceedings are linked to the seller. In Rio de Janeiro, it is possible to request BRL 110.98 for the these certi cates online via a centralized certi cation o ce named "Rio Fiscal Executive Rapido". Although they can be requested online, they need to be picked up Certificate; BRL personally. 105.98 for each Bankruptcy Distributor's Certificate issued by the 1st, 2nd and 4th Distributor's and BRL 101.96 for each certificate issued by the 3rd Distributor; BRL 79.44 for the Certificate of Registries and Disputes amounting BRL 1,030.22. 3 Obtain a Labor Justice Certi cate (Certidão da Justiça do Trabalho) from 3 days Obtain a Labor the Regional Labor Court (simultaneous with Justice Certificate Agency : Regional Labor Court (Tribunal Regional do Trabalho No. 1) procedures 1, 2, 4, (Certidão da Justiça 5, 6, 7, 8, 9) do Trabalho) from This document is not required by law. Technically, the buyer and seller can the Regional Labor agree to trust that all these checks are represented and warranted by the Court seller without needing to submit the certi cate to the public notary. In practice, however, for transactions between companies, the seller will provide these documents. The Labor Justice Certi cate (Certidão de Feitos Trabalhistas) may have one or several sheets. It will depend on the quantity of suits against the company under analysis. The cost for a one page certi cate is BRL 5.53 and for each additional page BRL 5.53. Page 58   Disputes amounting Doing Business 2018 Brazil BRL 1,030.22. 3 Obtain a Labor Justice Certi cate (Certidão da Justiça do Trabalho) from 3 days Obtain a Labor the Regional Labor Court (simultaneous with Justice Certificate Agency : Regional Labor Court (Tribunal Regional do Trabalho No. 1) procedures 1, 2, 4, (Certidão da Justiça 5, 6, 7, 8, 9) do Trabalho) from This document is not required by law. Technically, the buyer and seller can the Regional Labor agree to trust that all these checks are represented and warranted by the Court seller without needing to submit the certi cate to the public notary. In practice, however, for transactions between companies, the seller will provide these documents. The Labor Justice Certi cate (Certidão de Feitos Trabalhistas) may have one or several sheets. It will depend on the quantity of suits against the company under analysis. The cost for a one page certi cate is BRL 5.53 and for each additional page BRL 5.53. 4 Obtain a Certi cate of Good Standing on Labor Debts (Certidão Negativa Less than a day no cost de Débitos Trabalhistas) (online procedure Agency : High Labor Court (Tribunal Superior do Trabalho) and simultaneous with procedures 1, The Certi cate of Good Standing on Labor Debts is not required by law and 2, 3, 5, 6, 7, 8 and 9) therefore does not prevent the registration of real estate transactions. It is, however, common practice and highly recommended to check the standing on labor debts of the seller. 5 Request a Land-Tax Certi cate and a Cadastral Certi cate (Certidão de Less than a day no cost Dados Cadastrais do Imovel)from City Hall (online procedure Agency : Municipality of Rio de Janeiro (Prefeitura do Rio de Janeiro) and simultaneous with procedures 1, These certi cates will establish if there is any pending tax debt a ecting the 2, 3, 4, 6, 7, 8 and 9) property. The certi cate is free if obtained online, or BRL 11.85 if obtained in person. The buyer can waive this certi cate if he assumes the obligation to pay all pending land tax debt related to the real state according to § 2 of Art. 1 of Decree 93.240/86. 6 Acquire a Clearance Certi cate from Tax Agency and a Federal Tax Less than a day no cost Clearance Certi cate (online procedure Agency : Federal Tax agency (Ministério da Fazenda, Procuradoria Geral da and simultaneous Fazenda Nacional, Secretaria da Receita Federal do Brasil - RFB) with procedures 1, 2, 3, 4, 5, 7, 8 and 9) The joint certi cate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) can be obtained online at www.receita.fazenda.gov.br since November 2014. The joint certi cate includes: (i) Clearance Certi cate (Certidão Conjunta Negativa de Débitos relativos aos Tributos Federais e à Dívida Ativa da União emitida pelo Ministério da Fazenda – Procuradoria Geral da Fazenda Nacional – Secretaria da Receita Federal do Brasil) from the Tax Agency: this certi cate includes the debts related to taxes administered by the Internal Revenue Service of Brazil (RFB) and the inscriptions on Union Debts with the General Attorney of National Treasury (PGFN). This certi cate, which is issued in the name of the headquarters and applies to all its subsidiaries, refers only to the information of the taxpayer within the RFB and PGFN, and does not include social security contributions and the contributions due, by law, to third parties, including those debts enrolled in the National Social Security Page 59   Institute (INSS), that are object of the second certi cate. pending land tax debt related to the real state according to § 2 of Art. 1 of Doing Decree 93.240/86. Business 2018 Brazil 6 Acquire a Clearance Certi cate from Tax Agency and a Federal Tax Less than a day no cost Clearance Certi cate (online procedure Agency : Federal Tax agency (Ministério da Fazenda, Procuradoria Geral da and simultaneous Fazenda Nacional, Secretaria da Receita Federal do Brasil - RFB) with procedures 1, 2, 3, 4, 5, 7, 8 and 9) The joint certi cate (Certidão de Débitos Relativos a Créditos Tributários Federais e à Dívida Ativa da União) can be obtained online at www.receita.fazenda.gov.br since November 2014. The joint certi cate includes: (i) Clearance Certi cate (Certidão Conjunta Negativa de Débitos relativos aos Tributos Federais e à Dívida Ativa da União emitida pelo Ministério da Fazenda – Procuradoria Geral da Fazenda Nacional – Secretaria da Receita Federal do Brasil) from the Tax Agency: this certi cate includes the debts related to taxes administered by the Internal Revenue Service of Brazil (RFB) and the inscriptions on Union Debts with the General Attorney of National Treasury (PGFN). This certi cate, which is issued in the name of the headquarters and applies to all its subsidiaries, refers only to the information of the taxpayer within the RFB and PGFN, and does not include social security contributions and the contributions due, by law, to third parties, including those debts enrolled in the National Social Security Institute (INSS), that are object of the second certi cate. (ii) The Federal Tax Clearance Certi cate (Certidão Negativa de Débitos relativos às Contribuições Previdenciárias e às de Terceiros emitida pelo Ministério da Fazenda, Secretaria da Receita Federal do Brasil) refers exclusively to social security contributions and the contributions owed by law, to third parties, including those enrolled in Union Debts (Dívida Ativa da União - DAU) and does not include other taxes administered by RFB and the remaining debts in the DAU, administered by the General Attorney of National Treasury (PGFN) object PGFN Joint Certi cate / RFB. If one is a certi ed representative of the company with a passcode, one can obtain this certi cate online at www.receita.fazenda.gov.br/previdencia/CND free of charge. The certi cate was formerly provided by the National Social Security Institute (INSS), but is now provided by the Internal Revenue Service, after both agencies were partially uni ed according to Law N° 11.457/07. 7 Acquire a Worker’s Fund Certi cate (Certidão de Regularidade de Less than a day no cost Situação do FGTS) at the federal bank- Caixa Economica Federal (online procedure Agency : Federal bank (Caixa Economica Federal) and simultaneous with procedure 1, 2, The Worker's Fund Certi cate assures that the company has kept its pension 3, 4, 5, 6, 8 and 9) fund plan up to date with payments. This certi cate is obtained online at the site Caixa Economica (https://webp.caixa.gov.br/cidadao/Crf/FgeCfSCriteriosPesquisa.asp) free of charge. It is not required by law, but in practice it is usually requested by the buyer in transactions between companies. 8 Acquire a Federal Justice Certi cate (Certidão da Justiça Federal) from Less than a day no cost the Receita Federal - (Certidão de Distribuição de Ações e Execuções (online procedure Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais and simultaneous Adjuntos junto ao Poder Judiciário – Justiça Federal de Primeiro Grau no with procedures 1, Rio de Janeiro 2, 3, 4, 5, 6, 7 and 9) Agency : Justiça Federal This certi cate is obtained online at (http://www.jfsp.jus.br/certidoes- emissaoonline/). The certi cate will show if there are any pending cases at Page 60   civil, tax, criminal and special federal criminal courts. If the company has any charge. It is not required by law, but in practice it is usually requested by the Doing buyer in transactions Business between companies. 2018 Brazil 8 Acquire a Federal Justice Certi cate (Certidão da Justiça Federal) from Less than a day no cost the Receita Federal - (Certidão de Distribuição de Ações e Execuções (online procedure Cíveis, Fiscais, Criminais e dos Juizados Especiais Federais Criminais and simultaneous Adjuntos junto ao Poder Judiciário – Justiça Federal de Primeiro Grau no with procedures 1, Rio de Janeiro 2, 3, 4, 5, 6, 7 and 9) Agency : Justiça Federal This certi cate is obtained online at (http://www.jfsp.jus.br/certidoes- emissaoonline/). The certi cate will show if there are any pending cases at civil, tax, criminal and special federal criminal courts. If the company has any pending claims, the certi cate will have to be picked up in person by a representative at the Justiça Federal. 9 Obtain company name certi cate Less than a day BRL 108 Agency : Company Registry (Junta Comercial do Estado do Rio de Janeiro) (online procedure and simultaneous The notary will check the website of the Company Registry (Junta Comercial) with procedures 1, to make sure that (i) the articles of association presented by the parties and 2, 3, 4, 5, 6, 7, 8 and (ii) the legal representatives mentioned in the articles of association 9) correspond with the most recent ones registered. 10 Pay transfer tax (ITB I) at the Bank 1 day 2% of the property Agency : Commercial bank value The buyer has to pay the transfer tax before the parties can sign the transfer deed. The majority of notaries prefer to receive the tax payment themselves and then take care of transferring it to the Municipality because they are responsible for checking that the tax payment is correct. Notaries also have to le to the tax authorities a declaration of all the transactions that they were part of, given that they are jointly liable. Therefore, the notary provides the payment on behalf of the buyer and the parties pay at the notary. The payment needs to be done in person at any of the Banco Santander agencies in Rio de Janeiro. 11 Drafting of Public Deed of Purchase and Sale (Escritura Pública de Venda 3 days BRL 3,110.93, based e Compra) by a Public Notary (Tabelião de Notas) on the following fee Agency : Notary's o ce (Tabelião de Notas) schedule: Public deed with a The notary will review all the documents obtained in the previous declared amount up Procedures and proceed to notarize the sale deed. Notary fees are incurred to R$ 15,000.00 costs for the notarization of the sale and purchase agreement. BRL 185.92. From R$ 15,000.01 to R$ 30,000.00 - BRL 307.20/ From R$ 30,000.01 to R$ 45,000.00- BRL 428.51/ From 45,000.01 to R$ 60,000.00 - BRL 525.52/ From 60,000.001 to R$ 80,000.00 - BRL 931.44/ From 80,000.01 to R$ 100,000.00 - BRL 1.099.63/ From 100,000.01 to R$ 200,000.00 - BRL Page 61   1,487.72 / From payment needs to be done in person at any of the Banco Santander agencies Doing in Rio de Janeiro. Business 2018 Brazil 11 Drafting of Public Deed of Purchase and Sale (Escritura Pública de Venda 3 days BRL 3,110.93, based e Compra) by a Public Notary (Tabelião de Notas) on the following fee Agency : Notary's o ce (Tabelião de Notas) schedule: Public deed with a The notary will review all the documents obtained in the previous declared amount up Procedures and proceed to notarize the sale deed. Notary fees are incurred to R$ 15,000.00 costs for the notarization of the sale and purchase agreement. BRL 185.92. From R$ 15,000.01 to R$ 30,000.00 - BRL 307.20/ From R$ 30,000.01 to R$ 45,000.00- BRL 428.51/ From 45,000.01 to R$ 60,000.00 - BRL 525.52/ From 60,000.001 to R$ 80,000.00 - BRL 931.44/ From 80,000.01 to R$ 100,000.00 - BRL 1.099.63/ From 100,000.01 to R$ 200,000.00 - BRL 1,487.72 / From 200,000.01 to R$ 400,000.00 - BRL 1,596.35. For properties valued at R$ 400,000.01 and higher - BRL 140.62 for each additional R$ 100,000.00. 12 Update the land taxation records (IPTU – Imposto Predial e Territorial Less than a day no cost Urbano) to the new owner's name at City Hall (online procedure) Agency : Tax Deparment of the Municipality of Rio de Janeiro (Secretaria municipal da fazenda) Before presenting the title to the Real Estate Registry O ce, the new owner needs to update his name on the municipality's records. The information is submitted online to the Municipality. Once the information is submitted, a protocol number for the name change request is issued, which needs to be informed to the registrar. The registrar will verify the information submitted and attach the number of registration of the property (numero de matricula) and then sends the information to the municipality via the internet portal (https://dief.rio.rj.gov.br/dief/asp/mcriweb/login_usuri.asp) 13 Register the escritura (transfer deed) at the appropriate Real Estate 30 days As of Jan, 2017 the Registry with jurisdiction over the property to nalize registration and fee for registration is name change BRL 3,115.53 based Agency : Real Estate Registry (Cartório de Registro de Imóveis) on the following fee schedule: There are 12 Real Estate Registries in Rio de Janeiro. The registration of the Registration of deed at the competent Real Estate Registry is required for the transfer of economic content to ownership of the property. It can be arranged directly by the parties or by R$ 15,000.00 costs the notary if the notary o ers this supplementary service. By law, the Real Page 62   Estate Registry has 30 days to analyze the documents and register the BRL 185.92. From R$ and then sends the information to the municipality via the internet portal Doing (https://dief.rio.rj.gov.br/dief/asp/mcriweb/login_usuri.asp) Business 2018 Brazil 13 Register the escritura (transfer deed) at the appropriate Real Estate 30 days As of Jan, 2017 the Registry with jurisdiction over the property to nalize registration and fee for registration is name change BRL 3,115.53 based Agency : Real Estate Registry (Cartório de Registro de Imóveis) on the following fee schedule: There are 12 Real Estate Registries in Rio de Janeiro. The registration of the Registration of deed at the competent Real Estate Registry is required for the transfer of economic content to ownership of the property. It can be arranged directly by the parties or by the notary if the notary o ers this supplementary service. By law, the Real R$ 15,000.00 costs Estate Registry has 30 days to analyze the documents and register the BRL 185.92. From R$ transfer deed. Usually, the registry will come back with some issues that 15,000.01 to R$ need to be xed prior to registration. 30,000.00 - BRL 307.20/ From R$ 30,000.01 to R$ 45,000.00- BRL 428.51/ From 45,000.01 to R$ 60,000.00 - BRL 525.52/ From 60,000.001 to R$ 80,000.00 - BRL 931.44/ From 80,000.01 to R$ 100,000.00 - BRL 1.099.63/ From 100,000.01 to R$ 200,000.00 - BRL 1,487.72 / From 200,000.01 to R$ 400,000.00 - BRL 1,600,95. For properties valued at R$ 400,000.01 and higher - BRL 140.62 for each additional R$ 100,000.00. Takes place simultaneously with previous procedure. Details – Registering Property in Rio de Janeiro – Measure of Quality Answer Score Quality of the land administration index (0-30) 13.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Cartórios de Registro de Imóveis do Rio de Janeiro (Real Estate Registry O ce) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Page 63   Takes place simultaneously with previous procedure. Doing Business 2018 Brazil Details – Registering Property in Rio de Janeiro – Measure of Quality Answer Score Quality of the land administration index (0-30) 13.5 Reliability of infrastructure index (0-8) 4.0 What is the institution in charge of immovable property registration? Cartórios de Registro de Imóveis do Rio de Janeiro (Real Estate Registry O ce) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Prefeitura do Rio de Janeiro - Secretaria Municipal de Urbanismo (Rio de Janeiro City Hall) In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://www.1sri- rj.com.br/Compr aevendadoacao. pdf Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Page 64   aevendadoacao. Doing Business 2018 Brazil pdf Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://cgj.tjrj.jus. br/documents/1 017893/1614047/ custas-extraj- 2015.pdf Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://www.plana lto.gov.br/CCIVIL_ 03/leis/L6015co mpilada.htm Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available No cost 0.5 —and if so, how? Link for online access: http://www2.rio.r j.gov.br/smu/ace rvoimagens/ principal.asp http://www.rio.rj. gov.br/web/ipp/s iurb Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://www.rio.rj. gov.br/web/smf/ exibeconteudo? id=142219 http://www2.rio.r j.gov.br/smu/ace rvoimagens/ principal.asp Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Page 65   Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred Doing at the cadastral Business or mapping agency? 2018 Brazil Contact information: Geographic coverage index (0–8) 2.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 3.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private No 0.0 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Tribunal de property worth 50 times gross national income (GNI) per capita and located in the Justiça do Estado largest business city, what court would be in charge of the case in the rst instance? do Rio de Janeiro How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit Page 66   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Brazil Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Getting Credit - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies) Page 67   possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Brazil Getting Credit - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 75.6 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 79.3 43.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Mexico (Rank: 6) 60.00: China (Rank: 68) 50.00: Chile (Rank: 90) 45.00: São Paulo Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in São Paulo and comparator economies 12 10 10 8 Index score 6 5.3 4 4 4 2 2 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Legal Rights in São Paulo Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Page 68   São Paulo Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Legal Rights in São Paulo Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring No a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in São Paulo and comparator economies 10 8 8 8 7 Index score 6 6 4.8 4 2 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Credit Information in São Paulo Page 69   0 São Doing Business Paulo 2018 Brazil Chile China Mexico Latin America & Caribbean Details – Credit Information in São Paulo Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative credit data distributed? No Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. 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. Coverage Credit bureau Credit registry Number of individuals 104,541,698 103,105,949 Number of firms 9,419,306 5,650,787 Total 113,961,004 108,756,736 Percentage of adult population 79.3 75.6 Getting Credit - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 75.6 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 79.3 43.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) Page 70   Percentage of adult population 79.3 75.6 Doing Business 2018 Brazil Getting Credit - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Strength of legal rights index (0-12) 2 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 75.6 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 79.3 43.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Mexico (Rank: 6) 60.00: China (Rank: 68) 50.00: Chile (Rank: 90) 45.00: Rio de Janeiro Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Rio de Janeiro and comparator economies 12 10 10 8 Index score 6 5.3 4 4 4 2 2 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Legal Rights in Rio de Janeiro Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No Page 71   enforcement of functional equivalents to security interests in movable assets exist in the economy? Rio de Janeiro Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Legal Rights in Rio de Janeiro Strength of legal rights index (0-12) 2 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring No a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Rio de Janeiro and comparator economies 10 8 8 8 7 Index score 6 6 4.8 4 2 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Credit Information in Rio de Janeiro Page 72   0 Rio de Doing Business Janeiro Brazil 2018 Chile China Mexico Latin America & Caribbean Details – Credit Information in Rio de Janeiro Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes Yes 1 Are both positive and negative credit data distributed? No Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. 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. Coverage Credit bureau Credit registry Number of individuals 104,541,698 103,105,949 Number of firms 9,419,306 5,650,787 Total 113,961,004 108,756,736 Percentage of adult population 79.3 75.6 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 73   transactions; Available legal remedies (damages, Percentage of adult population 79.3 75.6 Doing Business 2018 Brazil Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Protecting Minority Investors - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) Page 74   10) and the other parties that approved the transaction. Doing Business 2018 Brazil Protecting Minority Investors - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 4.1 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: São Paulo 60.00: Chile (Rank: 57) 58.33: Mexico (Rank: 62) 48.33: China (Rank: 119) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in São Paulo and comparator economies – Measure of Quality São Paulo 8 8 5 6 7 4 Chile 2 6 8 4 9 7 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Latin America & Caribbean 4.1 5.4 4.4 3.4 5.6 6.5 0 5 10 15 20 25 30 35 40 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in São Paulo – Measure of Quality Page 75   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Brazil Details – Protecting Minority Investors in São Paulo – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 8 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 4 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Page 76   Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Doing Business 2018 Brazil document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7 Extent of shareholder rights index (0-10) 7 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? No 0.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 Page 77   Buyer pay declared MustBusiness Doing dividends within a maximum period set by law? 2018 Brazil Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Protecting Minority Investors - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 4.1 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: Rio de Janeiro 60.00: Chile (Rank: 57) 58.33: Mexico (Rank: 62) Page 78   Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Brazil Protecting Minority Investors - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 5.7 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 7 4.1 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 63.33: Rio de Janeiro 60.00: Chile (Rank: 57) 58.33: Mexico (Rank: 62) 48.33: China (Rank: 119) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Rio de Janeiro and comparator economies – Measure of Quality Rio de Janeiro 8 8 5 6 7 4 Chile 2 6 8 4 9 7 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Latin America & Caribbean 4.1 5.4 4.4 3.4 5.6 6.5 0 5 10 15 20 25 30 35 40 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Page 79   con ict of interest regulation index and the extent of shareholder governance index. Doing Business 2018 Brazil Figure – Protecting Minority Investors in Rio de Janeiro and comparator economies – Measure of Quality Rio de Janeiro 8 8 5 6 7 4 Chile 2 6 8 4 9 7 China 9 1 10 2 3 4 Mexico 4 5 8 6 7 5 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Latin America & Caribbean 4.1 5.4 4.4 3.4 5.6 6.5 0 5 10 15 20 25 30 35 40 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Rio de Janeiro – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 8 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 Page 80   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Brazil Details – Protecting Minority Investors in Rio de Janeiro – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.7 Extent of disclosure index (0-10) 5 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) CEO alone 0.0 Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- Disclosure on 1.0 2) the transaction only Extent of director liability index (0-10) 8 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 4 Before suing can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Page 81   Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Doing Business 2018 Brazil document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 7 Extent of shareholder rights index (0-10) 7 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? No 0.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 Page 82   Buyer pay declared MustBusiness Doing dividends within a maximum period set by law? 2018 Brazil Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 8 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, Page 83   and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Brazil Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) Post ling Index leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Paying Taxes - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Page 84   return, but within the tax assessment period. Doing Business 2018 Brazil Paying Taxes - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Payments (number per year) 10 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 1958 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 68.0 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 7.80 47.50 83.45 99.38 (Estonia) Figure – Paying Taxes in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.17: Chile (Rank: 72) 67.01: Mexico (Rank: 115) 62.90: China (Rank: 130) 32.99: São Paulo Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. 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 de ned 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. Figure – Paying Taxes in São Paulo and comparator economies – Measure of Quality 70 58.36 60 49.08 47.50 50 Index score 40.51 40 30 20 7.80 10 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Paying Taxes in São Paulo Total tax Page 85   and Doing Business 2018 Brazil Figure – Paying Taxes in São Paulo and comparator economies – Measure of Quality 70 58.36 60 49.08 47.50 50 Index score 40.51 40 30 20 7.80 10 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Paying Taxes in São Paulo Total tax and Tax or contribution mandatory Payments Notes on Time rate (% of Notes contribution (number) Payments (hours) Statutory tax rate Tax base profit) on TTR Employer paid - 1 online 335 20% gross salaries 22.56 Social security contributions (INSS) Corporate 1 online 462 15%+10% taxable profit 18.49 income tax (IRPJ) (surcharge applies on annual taxable income exceeding R$ 240,000) Employer paid - 1 online 8.8% net salaries 9.22 Payroll tax Employer paid - 0 online 8% net salaries 8.38 Severance and contribution jointly (FGTS) Social 1 online 9% taxable profit 6.66 contribution (CSLL) Property tax 1 1,9%- R$ 4500,00 Market value of property, 2.47 with additions and discounts defined by bands of market value (for São Paulo). Tax on interest 0 withheld 20% interest income 0.51 not included Vehicle tax 1 1.5% market value of vehicle 0.13 Establishment 1 fee schedule type of activity 0.06 inspection fee Page 86   tax Vehicle Business Doing 1 2018 Brazil 1.5% market value of vehicle 0.13 Establishment 1 fee schedule type of activity 0.06 inspection fee (TFE) ICMS (similar to 1 online 1161 18% value added (including 0.00 not VAT) taxes) included IPI (similar to 1 online 20% value added (including 0.00 not VAT) taxes) included PIS/COFINS 1 online 9.25% value added 0.00 not (similar to VAT) included Employee paid - 0 online 11% gross salaries 0.00 withheld Social security and contributions jointly (INSS) Totals 10 1958 68.0 Details – Paying Taxes in São Paulo – Tax by Type Taxes by type Answer Profit tax (% of profit) 25.1 Labor tax and contributions (% of profit) 40.2 Other taxes (% of profit) 2.7 Details – Paying Taxes in São Paulo – Measure of Quality Answer Score Post ling index (0-100) 7.80 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process ICIMS: in case of overpayment due to a mistake in the calculation of taxes due IPI: no IPI VAT credit on capital purchase is allowed PIS and COFINS: restricted international traders and Page 87   others a VAT refund DoesBusiness Doing process 2018 exist per the case study? Brazil No Restrictions on VAT refund process ICIMS: in case of overpayment due to a mistake in the calculation of taxes due IPI: no IPI VAT credit on capital purchase is allowed PIS and COFINS: restricted international traders and others Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 25% - 49% Time to comply with a corporate income tax audit (hours) 39.0 31.19 Time to complete a corporate income tax audit (weeks) 86.6 0 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Paying Taxes - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Payments (number per year) 9 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 1958 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 69.0 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 7.80 47.50 83.45 99.38 (Estonia) Page 88   a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Brazil Paying Taxes - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Payments (number per year) 9 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 1958 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 69.0 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 7.80 47.50 83.45 99.38 (Estonia) Figure – Paying Taxes in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.17: Chile (Rank: 72) 67.01: Mexico (Rank: 115) 62.90: China (Rank: 130) 32.94: Rio de Janeiro Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. 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 de ned 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. Figure – Paying Taxes in Rio de Janeiro and comparator economies – Measure of Quality 70 58.36 60 49.08 47.50 50 Index score 40.51 40 30 20 7.80 10 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Paying Taxes in Rio de Janeiro Page 89   Doing Business 2018 Brazil Figure – Paying Taxes in Rio de Janeiro and comparator economies – Measure of Quality 70 58.36 60 49.08 47.50 50 Index score 40.51 40 30 20 7.80 10 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Paying Taxes in Rio de Janeiro Total tax and contribution Tax or mandatory Payments Notes on Time rate (% of Notes contribution (number) Payments (hours) Statutory tax rate Tax base profit) on TTR Employer paid - 1 online 335 20% gross 22.56 Social security salaries contributions (INSS) Corporate income 1 online 462 15%+10% (surcharge taxable 18.09 tax (IRPJ) applies on annual taxable profit income exceeding R$ 240,000) Employer paid - 1 online 8.8% net 9.22 Payroll tax salaries Employer paid - 0 online 8% net 8.38 Severance and salaries contribution (FGTS) jointly Social contribution 1 online 9% taxable 6.51 (CSLL) profit Property tax 1 2.8% market 4.15 value of property Tax on interest 0 withheld 20% interest 0.51 not income included Vehicle tax 1 1% market 0.08 value of vehicle Employee paid - 0 online 11% gross 0.00 withheld Social security and salaries contributions (INSS) jointly ICMS (similar to VAT) 1 online 1161 20% value 0.00 not added included (including Page 90   Social security and salaries contributions Doing (INSS) Business 2018 Brazil jointly ICMS (similar to VAT) 1 online 1161 20% value 0.00 not added included (including taxes) IPI (similar to VAT) 1 online 20% value 0.00 not added included (including taxes) PIS/COFINS (similar 1 online 9.25% value 0.00 not to VAT) added included Totals 9 1958 69.0 Details – Paying Taxes in Rio de Janeiro – Tax by Type Taxes by type Answer Profit tax (% of profit) 24.6 Labor tax and contributions (% of profit) 40.2 Other taxes (% of profit) 4.2 Details – Paying Taxes in Rio de Janeiro – Measure of Quality Answer Score Post ling index (0-100) 7.80 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process ICIMS: in case of overpayment due to a mistake in the calculation of taxes due IPI: no IPI VAT credit on capital purchase is allowed PIS and COFINS: restricted international traders and others Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Page 91   Percentage Doing of cases Business 2018exposed to a VAT audit (%) Brazil Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 25% - 49% Time to comply with a corporate income tax audit (hours) 39.0 31.19 Time to complete a corporate income tax audit (weeks) 86.6 0 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance 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. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Page 92   Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Brazil Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance 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. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each shipment is en route economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 93   of agriculture or industry, national security agencies and any other Doing Business 2018 Brazil government authorities. Trading across Borders - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Time to export: Border compliance (hours) 49 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 959 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 12 53.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 226 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 63 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 970 684.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 48 79.9 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 107 119.5 25.6 0.00 (30 Economies) Figure – Trading across Borders in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.09: Mexico (Rank: 63) 80.56: Chile (Rank: 68) 69.91: China (Rank: 97) 59.78: São Paulo Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in São Paulo – Time and Cost Time Cost 70 1200 63 60 959 970 1000 49 48 50 800 Time (hours) Cost (USD) 40 600 30 400 20 12 226 10 107 Page 94   200 Doing Business 2018 Brazil Figure – Trading across Borders in São Paulo – Time and Cost Time Cost 70 1200 63 60 959 970 1000 49 48 50 800 Time (hours) Cost (USD) 40 600 30 400 20 12 226 10 107 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in São Paulo Characteristics Export Import Product HS 12 : Oil seeds and oleaginous fruits; miscellaneous grains, seeds and HS 8708: Parts and fruit; industrial or medicinal plants; straw and fodder accessories of motor vehicles Trade partner China Argentina Border Santos port Santos port Distance (km) 84 84 Domestic 9 11 transport time (hours) Domestic 763 763 transport cost (USD) Details – Trading across Borders in São Paulo – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.0 232.6 Export: Clearance and inspections required by agencies other than customs 24.0 221.7 Export: Port or border handling 47.0 504.3 Import: Clearance and inspections required by customs authorities 22.0 317.4 Import: Clearance and inspections required by agencies other than customs 12.0 147.8 Import: Port or border handling 51.1 504.3 Details – Trading across Borders in São Paulo – Trade Documents Page 95   (USD) Doing Business 2018 Brazil Details – Trading across Borders in São Paulo – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.0 232.6 Export: Clearance and inspections required by agencies other than customs 24.0 221.7 Export: Port or border handling 47.0 504.3 Import: Clearance and inspections required by customs authorities 22.0 317.4 Import: Clearance and inspections required by agencies other than customs 12.0 147.8 Import: Port or border handling 51.1 504.3 Details – Trading across Borders in São Paulo – Trade Documents Export Import Bill of lading Bank document Commercial invoice Bill of lading Customs export declaration Cargo release order Export Invoice (Nota Fiscal) Commercial Invoice Packing list Customs import declaration Health certificate Nota fiscal SOLAS certificate Packing list Technical standard certificate SOLAS certificate Trading across Borders - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Time to export: Border compliance (hours) 49 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 959 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 12 53.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 226 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 63 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 970 684.0 111.6 0.00 (27 Economies) Page 96   SOLAS certificate Doing Business 2018 Brazil Trading across Borders - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Time to export: Border compliance (hours) 49 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 959 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 12 53.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 226 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 63 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 970 684.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 48 79.9 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 107 119.5 25.6 0.00 (30 Economies) Figure – Trading across Borders in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.09: Mexico (Rank: 63) 80.56: Chile (Rank: 68) 69.91: China (Rank: 97) 59.78: Rio de Janeiro Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Rio de Janeiro – Time and Cost Time Cost 70 1200 63 60 959 970 1000 49 48 50 800 Time (hours) Cost (USD) 40 600 30 400 20 12 226 107 200 10 Page 97   Doing Business 2018 Brazil Figure – Trading across Borders in Rio de Janeiro – Time and Cost Time Cost 70 1200 63 60 959 970 1000 49 48 50 800 Time (hours) Cost (USD) 40 600 30 400 20 12 226 10 107 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Rio de Janeiro Characteristics Export Import Product HS 12 : Oil seeds and oleaginous fruits; miscellaneous grains, seeds and HS 8708: Parts and fruit; industrial or medicinal plants; straw and fodder accessories of motor vehicles Trade partner China Argentina Border Santos port Santos port Distance (km) 513 513 Domestic 16 18 transport time (hours) Domestic 1779 1779 transport cost (USD) Details – Trading across Borders in Rio de Janeiro – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.0 232.6 Export: Clearance and inspections required by agencies other than customs 24.0 221.7 Export: Port or border handling 47.0 504.3 Import: Clearance and inspections required by customs authorities 22.0 317.4 Import: Clearance and inspections required by agencies other than customs 12.0 147.8 Import: Port or border handling 51.1 504.3 Details – Trading across Borders in Rio de Janeiro – Trade Documents Page 98   (USD) Doing Business 2018 Brazil Details – Trading across Borders in Rio de Janeiro – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 7.0 232.6 Export: Clearance and inspections required by agencies other than customs 24.0 221.7 Export: Port or border handling 47.0 504.3 Import: Clearance and inspections required by customs authorities 22.0 317.4 Import: Clearance and inspections required by agencies other than customs 12.0 147.8 Import: Port or border handling 51.1 504.3 Details – Trading across Borders in Rio de Janeiro – Trade Documents Export Import Bill of lading Cargo Release Order Commercial invoice Commercial invoice Customs export declaration Customs import declaration Export Invoice (Nota Fiscal) Nota fiscal Packing list Packing list Health certificate Technical standard certificate SOLAS certificate Bank document Bill of lading SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the (Seller - The dispute concerns a lawful transaction between two businessesPage 99   courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 SOLAS certificate Doing Business 2018 Brazil Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Enforcing Contracts - São Paulo Standardized Case Claim value BRL 55,579.00 Court name São Paulo Civil District Court City Covered São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Time (days) 731 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 20.7 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 12.5 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 Page 100   78.23: China (Rank: 5) of judicial processes Quality Business Doing index (0-18) 2018 Brazil 12.5 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.23: China (Rank: 5) 67.01: Mexico (Rank: 41) 65.40: São Paulo 62.81: Chile (Rank: 56) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in São Paulo – Time and Cost Time Cost 900 33.0 35 31.4 800 767.1 28.6 731 30 Cost (% of claim value) 700 577.8 21.5 25 600 20.7 Time (days) 480 496.3 500 20 16.2 400 341 15 300 10 200 100 5 0 0 Chile China Latin America & Mexico OECD high income São Paulo Caribbean Figure – Enforcing Contracts in São Paulo and comparator economies – Measure of Quality São Paulo 3 3 3 3.5 Chile 1.5 3.5 1 3 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 14 Page 101   16 Chile China Latin America & Mexico OECD high income São Paulo Caribbean Doing Business 2018 Brazil Figure – Enforcing Contracts in São Paulo and comparator economies – Measure of Quality São Paulo 3 3 3 3.5 Chile 1.5 3.5 1 3 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in São Paulo Indicator Time (days) 731 Filing and service 41 Trial and judgment 480 Enforcement of judgment 210 Cost (% of claim value) 20.7 Attorney fees 12.6 Court fees 7 Enforcement fees 1.1 Quality of judicial processes index (0-18) 12.5 Court structure and proceedings (-1-5) 3.5 Case management (0-6) 3.0 Court automation (0-4) 3.0 Alternative dispute resolution (0-3) 3.0 Details – Enforcing Contracts in São Paulo – Measure of Quality Page 102   Alternative dispute resolution (0-3) 3.0 Doing Business 2018 Brazil Details – Enforcing Contracts in São Paulo – Measure of Quality Answer Score Quality of judicial processes index (0-18) 12.5 Court structure and proceedings (-1-5) 3.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 3.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 3.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 103   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Brazil 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 3.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Enforcing Contracts - Rio de Janeiro Standardized Case Claim value BRL 55,579.00 Court name Rio de Janeiro Civil Court (Vara Cível) City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Time (days) 731 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 24.0 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 14.0 8.4 11.0 15.50 (Australia) Page 104   if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Brazil Enforcing Contracts - Rio de Janeiro Standardized Case Claim value BRL 55,579.00 Court name Rio de Janeiro Civil Court (Vara Cível) City Covered Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Time (days) 731 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 24.0 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 14.0 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 78.23: China (Rank: 5) 67.01: Mexico (Rank: 41) 66.94: Rio de Janeiro 62.81: Chile (Rank: 56) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Rio de Janeiro – Time and Cost Time Cost 900 33.0 35 31.4 800 767.1 28.6 731 30 Cost (% of claim value) 700 24.0 577.8 21.5 25 600 Time (days) 480 496.3 500 20 16.2 400 341 15 300 10 200 100 5 0 0 Chile China Latin America & Mexico OECD high income Rio de Janeiro Caribbean Page 105   Figure – Enforcing Contracts in Rio de Janeiro and comparator economies – Measure of Quality Chile China Latin America & Mexico OECD high income Rio de Janeiro Caribbean Doing Business 2018 Brazil Figure – Enforcing Contracts in Rio de Janeiro and comparator economies – Measure of Quality Rio de Janeiro 3 3 3 5 Chile 1.5 3.5 1 3 China 3 4.5 3 4.5 Mexico 2.5 3.3 0.5 3.8 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Rio de Janeiro Indicator Time (days) 731 Filing and service 41 Trial and judgment 480 Enforcement of judgment 210 Cost (% of claim value) 24.0 Attorney fees 15.9 Court fees 7 Enforcement fees 1.1 Quality of judicial processes index (0-18) 14.0 Court structure and proceedings (-1-5) 5.0 Case management (0-6) 3.0 Court automation (0-4) 3.0 Alternative dispute resolution (0-3) 3.0 Details – Enforcing Contracts in Rio de Janeiro – Measure of Quality Page 106   Alternative dispute resolution (0-3) 3.0 Doing Business 2018 Brazil Details – Enforcing Contracts in Rio de Janeiro – Measure of Quality Answer Score Quality of judicial processes index (0-18) 14.0 Court structure and proceedings (-1-5) 5.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 3.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 3.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 107   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Brazil 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 3.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency 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. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 108   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Brazil Resolving Insolvency 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. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Resolving Insolvency - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 12.7 30.8 71.2 93.1 (Norway) Page 109   Creditor participation index (0-4) Doing Business 2018 Brazil Resolving Insolvency - São Paulo Latin America & OECD high Indicator São Paulo Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 12.7 30.8 71.2 93.1 (Norway) Time (years) 4.0 2.9 1.7 0.4 (Ireland) Cost (% of estate) 12.0 16.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 13.0 7.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 59.47: Chile (Rank: 52) 55.82: China (Rank: 56) 47.46: São Paulo Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in São Paulo – Time and Cost Time Cost 4.5 25 22.0 4.0 4 3.5 18.0 20 Cost (% of estate) 2.9 16.8 Time (years) 3 14.5 15 2.5 12.0 2.0 2 1.7 1.8 1.7 9.1 10 1.5 1 5 0.5 0 0 Chile China Latin America & Mexico OECD high income São Paulo Caribbean Figure – Resolving Insolvency in São Paulo and comparator economies – Measure of Quality Page 110   São Paulo 5.5 2.5 3 2 Chile China Latin America & Mexico OECD high income São Paulo Caribbean Doing Business 2018 Brazil Figure – Resolving Insolvency in São Paulo and comparator economies – Measure of Quality São Paulo 5.5 2.5 3 2 Chile 4.5 2.5 3 2 China 5 3 1 2.5 Mexico 5.5 2.5 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Latin America & Caribbean 3.7 2.4 1.9 0.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in São Paulo and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 67.6 70 60 50 40.8 40 36.9 30.8 30 20 12.7 10 0 São Paulo Chile China Mexico Latin America & Caribbean Details – Resolving Insolvency in São Paulo Indicator Answer Explanation Proceeding liquidation The most likely procedure applicable to our case study would be a reorganization, which will (after an then be converted into a liquidation. Mirage may use the reorganization proceeding to gain attempt at time, find a new investor, or renegotiate its debt. Insolvency proceedings will therefore start reorganization) with Mirage (debtor) filing for court-supervised reorganization (recuperação judicial) with the Bankruptcy Court of the District of São Paulo. Mirage will benefit from the automatic stay / moratorium (article 6 of the Bankruptcy Law) and Mirage’s managers will draft a plan that foresees the continuation of Mirage’s operations as a going concern, where Mirage’s management will stay in control. However, it is very likely that this plan is not approved, and that the case will be converted into liquidation, for the following reasons: (i) BizBank will most likely vote against the plan, since for BizBank the most efficient outcome is the sale of the business as a going concern, free and clear of labor and tax claims (which cannot be achieved through a reorganization), and (ii) no plan can be approved without Mirage’s consent, as it is the only creditor holding secured debt (class II claims), and holds 70% of Page 111   São Paulo Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Resolving Insolvency in São Paulo Indicator Answer Explanation Proceeding liquidation The most likely procedure applicable to our case study would be a reorganization, which will (after an then be converted into a liquidation. Mirage may use the reorganization proceeding to gain attempt at time, find a new investor, or renegotiate its debt. Insolvency proceedings will therefore start reorganization) with Mirage (debtor) filing for court-supervised reorganization (recuperação judicial) with the Bankruptcy Court of the District of São Paulo. Mirage will benefit from the automatic stay / moratorium (article 6 of the Bankruptcy Law) and Mirage’s managers will draft a plan that foresees the continuation of Mirage’s operations as a going concern, where Mirage’s management will stay in control. However, it is very likely that this plan is not approved, and that the case will be converted into liquidation, for the following reasons: (i) BizBank will most likely vote against the plan, since for BizBank the most efficient outcome is the sale of the business as a going concern, free and clear of labor and tax claims (which cannot be achieved through a reorganization), and (ii) no plan can be approved without Mirage’s consent, as it is the only creditor holding secured debt (class II claims), and holds 70% of Mirage’s total debt. Outcome going concern Yes, the hotel will continue operating as a going concern, since as a result of liquidation proceedings, Mirage is likely to be sold as a going concern, free and clear of labor and tax claims, according to article 141.II. Time (in years) 4.0 A reorganization procedure that is then converted into liquidation will approximately take 4 years in total. According to the Bankruptcy Law, the reorganization plan must be approved by the creditors within 180 days from commencement of reorganization proceedings (this is the maximum period for which the individual actions are stayed). However, this time will probably be extended several times, because the creditors are not likely to approve the reorganization plan during the first meeting. In practice, it will take almost 2 years to prepare the creditors list, draft and vote the plan, which would be rejected under our case study assumptions. The case will then be converted into liquidation (where the assets would be sold as a going concern), taking the formal conversion and the organization and execution of the sale 2 additional years (until the proceeds of the sale are finally distributed among creditors). Cost (% of 12.0 The costs associated with the case would amount to approximately 12% of the value of the estate) debtor's estate. The main components of this total cost would be the attorney's fees, which would amount to 6% of the value of the estate, and the insolvency administrator fees, which would amount to 4%, plus 2% related to court fees. Recovery rate (cents on the 12.7 dollar) Details – Resolving Insolvency in São Paulo – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 13.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Page 112   dollar) Doing Business 2018 Brazil Details – Resolving Insolvency in São Paulo – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 13.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.5 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 2.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated Page 113   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Brazil Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request Yes 1.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Resolving Insolvency - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 12.7 30.8 71.2 93.1 (Norway) Time (years) 4.0 2.9 1.7 0.4 (Ireland) Cost (% of estate) 12.0 16.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 13.0 7.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 59.47: Chile (Rank: 52) 55.82: China (Rank: 56) 47.46: Rio de Janeiro Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Page 114   the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Brazil Resolving Insolvency - Rio de Janeiro Latin America & OECD high Indicator Rio de Janeiro Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 12.7 30.8 71.2 93.1 (Norway) Time (years) 4.0 2.9 1.7 0.4 (Ireland) Cost (% of estate) 12.0 16.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 13.0 7.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Brazil and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.31: Mexico (Rank: 31) 59.47: Chile (Rank: 52) 55.82: China (Rank: 56) 47.46: Rio de Janeiro Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Rio de Janeiro – Time and Cost Time Cost 4.5 25 22.0 4.0 4 3.5 18.0 20 Cost (% of estate) 2.9 16.8 Time (years) 3 14.5 15 2.5 12.0 2.0 2 1.7 1.8 1.7 9.1 10 1.5 1 5 0.5 0 0 Chile China Latin America & Mexico OECD high income Rio de Janeiro Caribbean Figure – Resolving Insolvency in Rio de Janeiro and comparator economies – Measure of Quality Page 115   Chile China Latin America & Mexico OECD high income Rio de Janeiro Caribbean Doing Business 2018 Brazil Figure – Resolving Insolvency in Rio de Janeiro and comparator economies – Measure of Quality Rio de Janeiro 5.5 2.5 3 2 Chile 4.5 2.5 3 2 China 5 3 1 2.5 Mexico 5.5 2.5 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Latin America & Caribbean 3.7 2.4 1.9 0.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Rio de Janeiro and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 80 67.6 70 60 50 40.8 40 36.9 30.8 30 20 12.7 10 0 Rio de Janeiro Chile China Mexico Latin America & Caribbean Details – Resolving Insolvency in Rio de Janeiro Indicator Answer Explanation Proceeding liquidation The most likely procedure applicable to our case study would be a reorganization, which will (after an then be converted into a liquidation. Mirage may use the reorganization proceeding to gain attempt at time, find a new investor, or renegotiate its debt. Insolvency proceedings will therefore start reorganization) with Mirage (debtor) filing for court-supervised reorganization (recuperação judicial) with the Bankruptcy Court of the District of Rio de Janeiro. Mirage will benefit from the automatic stay / moratorium (article 6 of the Bankruptcy Law) and Mirage’s managers will draft a plan that foresees the continuation of Mirage’s operations as a going concern, where Mirage’s management will stay in control. However, it is very likely that this plan is not approved, and that the case will be converted into liquidation, for the following reasons: (i) BizBank will most likely vote against the plan, since for BizBank the most efficient outcome is the sale of the business as a going concern, free and clear of labor and tax claims (which cannot be achieved through a reorganization), and (ii) no plan can be approved without Mirage’s consent, as it is the only creditor holding secured debt (class II claims), and holds 70% of Page 116   Rio de Janeiro Chile China Mexico Latin America & Caribbean Doing Business 2018 Brazil Details – Resolving Insolvency in Rio de Janeiro Indicator Answer Explanation Proceeding liquidation The most likely procedure applicable to our case study would be a reorganization, which will (after an then be converted into a liquidation. Mirage may use the reorganization proceeding to gain attempt at time, find a new investor, or renegotiate its debt. Insolvency proceedings will therefore start reorganization) with Mirage (debtor) filing for court-supervised reorganization (recuperação judicial) with the Bankruptcy Court of the District of Rio de Janeiro. Mirage will benefit from the automatic stay / moratorium (article 6 of the Bankruptcy Law) and Mirage’s managers will draft a plan that foresees the continuation of Mirage’s operations as a going concern, where Mirage’s management will stay in control. However, it is very likely that this plan is not approved, and that the case will be converted into liquidation, for the following reasons: (i) BizBank will most likely vote against the plan, since for BizBank the most efficient outcome is the sale of the business as a going concern, free and clear of labor and tax claims (which cannot be achieved through a reorganization), and (ii) no plan can be approved without Mirage’s consent, as it is the only creditor holding secured debt (class II claims), and holds 70% of Mirage’s total debt. Outcome going concern The hotel will continue operating as a going concern, since as a result of liquidation proceedings, Mirage is likely to be sold as a going concern, free and clear of labor and tax claims, according to article 141.II. Time (in years) 4.0 A reorganization procedure that is then converted into liquidation will approximately take 4 years in total. According to the Bankruptcy Law, the reorganization plan must be approved by the creditors within 180 days from commencement of reorganization proceedings (this is the maximum period for which the individual actions are stayed). However, this time will probably be extended several times, because the creditors are not likely to approve the reorganization plan during the first meeting. In practice, it will take almost 2 years to prepare the creditors list, draft and vote the plan, which would be rejected under our case study assumptions. The case will then be converted into liquidation (where the assets would be sold as a going concern), taking the formal conversion and the organization and execution of the sale 2 additional years (until the proceeds of the sale are finally distributed among creditors). Cost (% of 12.0 The costs associated with the case would amount to approximately 12% of the value of the estate) debtor's estate. The main components of this total cost would be the attorney's fees, which would amount to 6% of the value of the estate, and the insolvency administrator fees, which would amount to 4%, plus 2% related to court fees. Recovery rate (cents on the 12.7 dollar) Details – Resolving Insolvency in Rio de Janeiro – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 13.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Page 117   dollar) Doing Business 2018 Brazil Details – Resolving Insolvency in Rio de Janeiro – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 13.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 5.5 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 2.0 Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are a ected by the proposed plan Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated Page 118   equally? Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive Doing at least as Business much as 2018 what they would obtain in a liquidation? Brazil Are the creditors devided into classes for the purposes of voting on the reorganization Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request Yes 1.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost Page 119   (i) notice period for redundancy dismissal; (ii) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Brazil Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Labor Market Regulation - São Paulo Details – Labor Market Regulation in São Paulo Answer Page 120   days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Brazil Labor Market Regulation - São Paulo Details – Labor Market Regulation in São Paulo Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 348.9 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 60.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 26.0 Paid annual leave for a worker with 5 years of tenure (working days) 26.0 Paid annual leave for a worker with 10 years of tenure (working days) 26.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 26.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Page 121   Third-party Doing cation if Brazil noti 2018 Business nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 6.4 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.6 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 6.6 Severance pay for redundancy dismissal for a worker with 1 year of tenure 1.7 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 16.6 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.9 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 120.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 12.0 Labor Market Regulation - Rio de Janeiro Details – Labor Market Regulation in Rio de Janeiro Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Page 122   Minimum wage applicable to the worker assumed in the case study (US$/month) 382.0 Minimum contribution period for unemployment protection (months)? 12.0 Doing Business 2018 Brazil Labor Market Regulation - Rio de Janeiro Details – Labor Market Regulation in Rio de Janeiro Answer Hiring Fixed-term contracts prohibited for permanent tasks? Yes Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 382.0 Ratio of minimum wage to value added per worker 0.4 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 20.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 26.0 Paid annual leave for a worker with 5 years of tenure (working days) 26.0 Paid annual leave for a worker with 10 years of tenure (working days) 26.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 26.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Page 123   Third-party Doing cation if Brazil noti 2018 Business nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.7 Notice period for redundancy dismissal for a worker with 5 years of tenure 6.4 Notice period for redundancy dismissal for a worker with 10 years of tenure 8.6 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 6.6 Severance pay for redundancy dismissal for a worker with 1 year of tenure 1.6 Severance pay for redundancy dismissal for a worker with 5 years of tenure 8.3 Severance pay for redundancy dismissal for a worker with 10 years of tenure 16.6 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.9 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 120.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 12.0 Business Reforms in Brazil In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Brazil implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Trading across Borders: Brazil reduced the time for documentary compliance for both exporting and importing by enhancing its electronic data interchange system. This reform applies to both Rio de Janeiro and São Paulo. DB2017 Starting a Business: Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Page 124   Rio de Janeiro. However, Brazil also made starting a business more di cult by shortening the opening hours of the business registry Minimum contribution period for unemployment protection (months)? 12.0 Doing Business 2018 Brazil Business Reforms in Brazil In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Brazil implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Trading across Borders: Brazil reduced the time for documentary compliance for both exporting and importing by enhancing its electronic data interchange system. This reform applies to both Rio de Janeiro and São Paulo. DB2017 Starting a Business: Brazil reduced the time needed to start a business by implementing an online portal for business licenses in Rio de Janeiro. However, Brazil also made starting a business more di cult by shortening the opening hours of the business registry in Rio de Janeiro. Trading across Borders: Brazil made trading across borders easier by implementing an electronic system for importing, which reduced the time required for documentary compliance. This reform applies to both Rio de Janeiro and São Paulo. Enforcing Contracts: Brazil made enforcing contracts easier through a new mediation law—that includes nancial incentives for parties to attempt mediation—and a new code of civil procedure. These reforms apply to both Rio de Janeiro and São Paulo. Labor Market Regulation: Brazil expanded eligibility for unemployment bene ts to employees with one year of continuous work experience. This reform applies to both Rio de Janeiro and São Paulo. DB2016 Registering Property: Brazil made transferring property in São Paulo more expensive by increasing the property transfer tax. Trading across Borders: Brazil reduced the time for documentary and border compliance for exporting by implementing the electronic SISCOMEX Portal system. This reform applies to both Rio de Janeiro and São Paulo. DB2013 Registering Property: Brazil made transferring property more di cult by introducing a new certi cate on good standing on labor debts, adding to the number of due diligence procedures. Enforcing Contracts: Brazil made enforcing contracts easier by implementing an electronic system for ling initial complaints at the São Paulo civil district court. Labor Market Regulation: Brazil increased the notice period applicable in cases of redundancy dismissal of employees. DB2012 Getting Credit: Brazil improved its credit information system by allowing private credit bureaus to collect and share positive information. DB2011 Starting a Business: Brazil eased business start-up by further enhancing the electronic synchronization between federal and state tax authorities. DB2010 Starting a Business: Brazil made starting a business easier by eliminating the requirement to obtain a re brigade license and inspection before obtaining an operating permit from the municipality. Paying Taxes: Brazil made paying taxes less costly for companies by abolishing the tax on check transactions. DB2009 Page 125   Trading across Borders: Brazil reduced the time for exporting and importing by implementing the electronic data interchange Paying Taxes: Brazil made paying taxes less costly for companies by abolishing the tax on check transactions. Doing Business 2018 Brazil DB2009 Trading across Borders: Brazil reduced the time for exporting and importing by implementing the electronic data interchange systems SISCARGA and SISCOMEX CARGA as well as a risk-based inspection system for cargo. An increase in the number of banks o ering letters of credit also contributed to the reduction in time. DB2008 Trading across Borders: Brazil made trading across borders easier by updating its electronic data interchange system for customs. Enforcing Contracts: Brazil made enforcing contracts easier by updating and streamlining its civil procedure rules. Page 126   customs. Enforcing Doing Contracts: Business 2018 Brazil made enforcing contracts easier by updating and streamlining its civil procedure rules. Brazil Page 127