58389 Belize © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400; fax 978-750-4470; Internet www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher,The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax 202-522-2422; e-mail pubrights@worldbank.org. Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010: Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org. ISBN: 978-0-8213-7960-8 E-ISBN: 978-0-8213-8630-9 DOI: 10.1596/978-0-8213-7960-8 ISSN: 1729-2638 Library of Congress Cataloging-in-Publication data has been applied for. Printed in the United States Current features News on the Doing Business project http://www.doingbusiness.org Rankings How economies rank-from 1 to 183 http://www.doingbusiness.org/rankings/ Contents Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004 Introduction and a ranking simulation tool and Aggregate Rankings http://www.doingbusiness.org/reforms/ 5 - Year Measure of Historical data Cumulative Change Customized data sets since DB2004 http://www.doingbusiness.org/custom-query/ Starting a Business Methodology and research Dealing with The methodologies and research papers underlying Doing Business Construction Permits http://www.doingbusiness.org/Methodology/ Registering Property Download reports Access to Doing Business reports as well as subnational and regional Getting Credit reports, reform case studies and customized country and regional profiles Protecting Investors http://www.doingbusiness.org/reports/ Paying Taxes Subnational and regional projects Differences in business regulations at the subnational and regional Trading Across Borders level http://www.doingbusiness.org/subnational-reports/ Enforcing Contracts Law Library Closing a Business Online collection of business laws and regulations relating to business and gender issues Doing Business 2011 http://www.doingbusiness.org/law-library/ Business Reforms http://wbl.worldbank.org/ Local partners More than 8,200 specialists in 183 economies who participate in Doing Business http://www.doingbusiness.org/Local-Partners/Doing-Business/ Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. A set of regulations affecting 9 stages of a business's life are measured: starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing Business methodology has limitations. Other areas important to business such as an economy 's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in designing reform. The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD high-income economies. The following pages present the summary Doing Business indicators for Belize. The data used for this economy profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region not only with one another but also with the "good practice" economy for each indicator. The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity to provide good examples of business regulation to other countries. These good -practice economies do not necessarily rank number 1 in the topic or indicator, but they are in the top 10. More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org). * Except for the Paying Taxes indicator that refers to the period January to December of 2009. Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology and the addition of new economies (in the case of the rankings). 1 Economy Rankings - Ease of Doing Business Belize is ranked 99 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Belize - Compared to global good practice economy as well as selected economies: Belize's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 99 Starting a Business 148 Dealing with Construction Permits 4 Registering Property 134 Getting Credit 89 Protecting Investors 120 Paying Taxes 69 Trading Across Borders 119 Enforcing Contracts 168 Closing a Business 28 2 Summary of Indicators - Belize Starting a Business Procedures (number) 9 Time (days) 44 Cost (% of income per capita) 47.9 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 11 Time (days) 66 Cost (% of income per capita) 16.7 Registering Property Procedures (number) 8 Time (days) 60 Cost (% of property value) 4.8 Getting Credit Strength of legal rights index (0-10) 8 Depth of credit information index (0-6) 0 Public registry coverage (% of adults) 0.0 Private bureau coverage (% of adults) 0.0 Protecting Investors Extent of disclosure index (0-10) 3 Extent of director liability index (0-10) 4 Ease of shareholder suits index (0-10) 6 Strength of investor protection index (0-10) 4.3 Paying Taxes Payments (number per year) 40 Time (hours per year) 147 Profit tax (%) 24.7 Labor tax and contributions (%) 7.0 Other taxes (%) 1.4 Total tax rate (% profit) 33.2 Trading Across Borders Documents to export (number) 7 Time to export (days) 21 Cost to export (US$ per container) 1710 Documents to import (number) 6 Time to import (days) 21 Cost to import (US$ per container) 1870 3 Enforcing Contracts Procedures (number) 51 Time (days) 892 Cost (% of claim) 27.5 Closing a Business Recovery rate (cents on the dollar) 63.6 Time (years) 1.0 Cost (% of estate) 23 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy's regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy's business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions. This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.14 0.12 0.10 Doing business has become 0.08 easier (DB change 0.06 score) 0.04 0.02 Doing business has 0.00 become more difficult or more -0.02 Haiti Dominican Guyana Puerto Belize Jamaica Suriname costly Republic Rico 6 1. Benchmarking Starting a Business Regulations: Belize is ranked 148 overall for Starting a Business. Ranking of Belize in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Belize compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of Min. capital (number) income per (% of income Economies capita) per capita) Denmark* 0.0 New Zealand* 1 1 0.0 Selected Economy Belize 9 44 47.9 0.0 Comparator Economies Dominican Republic 8 19 19.2 62.6 Guyana 8 30 18.7 0.0 Haiti 13 105 212.0 20.7 Jamaica 6 8 5.2 0.0 Puerto Rico 7 7 0.7 0.0 Suriname 13 694 119.9 0.6 * The following economies are also good practice economies for : Procedures (number): Canada Cost (% of income per capita): Slovenia 8 2. Historical data: Starting a Business in Belize Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 145 148 Procedures (number) 9 9 9 9 Time (days) 44 44 44 44 Cost (% of income per capita) 53.1 51.1 45.5 47.9 Min. capital (% of income per capita) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Belize over the past 4 years: 9 Starting a Business Summary - Belize This table summarizes the procedures and costs associated with setting up a business in Belize. STANDARDIZED COMPANY Legal Form: Limited Liability Company City: Belize City Registration Requirements: No: Procedure Time to complete Cost to complete 1 Conduct a name search at the Companies' Registry 1 no charge 2 Register company statutes and memorandum and articles of 2 BZD 597 association at the Companies' Registry 3 Submit application to City Council for a trade license 1 no charge 4 Receive inspection from City Council inspector 20 no charge 5 * Pay for the trade license at the City Council 1 BZD 3,000 6 Make a company seal 2 BZD 125 7 Register the company for business tax at the income tax department 10 BZD 150 8 * Register the company for general sales tax (GST) at the GST office 17 no charge 10 9 * Register the employees with the Social Security Board 2 no charge * Takes place simultaneously with another procedure. 11 Starting a Business Details - Belize Procedure 1 Conduct a name search at the Companies' Registry Time to complete: 1 Cost to complete: no charge Comment: The entrepreneur must travel to Belmopan, the capital, to visit the Companies' Registry and request a computerized name search of all existing Belizean company names, which takes a few minutes to complete as is free of charge. A request can also be done by e-mail, telephone or fax at a fee of BZD 50. Procedure 2 Register company statutes and memorandum and articles of association at the Companies' Registry Time to complete: 2 Cost to complete: BZD 597 Comment: The applicable fees are BZD 500 for the certificate of compliance, BZD 10 for filing, BZD 50 for registration, BZD 12 (each) for registering the statutes and the memorandum and articles of association, and BZD 14 for registering the directors to act on the company's behalf. The fees are paid directly at the Companies' Registry. At least two directors are required for this type of company. Each director must initially subscribe to at least one share, and for practical purposes, each share is worth BZD 1. Therefore, in practice, the minimum start-up capital is BZD 2. The documentation must include the following: - Identification for all directors and their representatives, if applicable. - Company statutes. - Memorandum and articles of association. Procedure 3 Submit application to City Council for a trade license Time to complete: 1 Cost to complete: no charge Comment: The application prompts the City Council to send an inspector to visit the site. Although there are only four city council inspectors in Belize City, the inspector will usually arrive the next day. The documentation to submit an application for trade license shall include: - Certificate of compliance from the Companies' Registry (obtained in Procedure 2). - Proof of residency. Procedure 4 Receive inspection from City Council inspector Time to complete: 20 Cost to complete: no charge 12 Comment: The city council inspector arrives, inspects, and submits findings to the council's trade license board. By law, the board must meet every 3 months, but in practice, it meets every 2 weeks to manage the high volume of trade license applications. At the end of the deliberation, the determination and assessment notice (25% of the inspector's assessed annual rental income of the business premises) will be couriered to the entrepreneur. About 2 days after the trade license board's decision and the entrepreneur's payment, the license will be hand delivered to the entrepreneur at no additional charge. Procedure 5 Pay for the trade license at the City Council Time to complete: 1 Cost to complete: BZD 3,000 Comment: Parties take the assessment notice to the City Council and pay 25% of the annual rental value of the premises, according to the inspector's assessment. Procedure 6 Make a company seal Time to complete: 2 Cost to complete: BZD 125 Comment: The company must make a company seal. This can be done at any stationary store and costs between BZD 50 and BZD 200, depending on whether it is rubber or embossed. Procedure 7 Register the company for business tax at the income tax department Time to complete: 10 Cost to complete: BZD 150 Comment: The founders must register the company with the income tax authorities before starting business, by presenting a relevant certificate of compliance. The company receives the tax number in about 1 to 2 weeks. Operations may begin at this time but the company must withhold the taxes payable. Failure to do so results in penalties and interest payable. Procedure 8 Register the company for general sales tax (GST) at the GST office Time to complete: 17 Cost to complete: no charge Comment: The business must register with the general services tax authorities before starting business, presenting a relevant certificate of compliance. However, final registration will not be confirmed until a few weeks later. Operations can begin during this time, but the company must withhold the taxes payable. Failure to do so results in penalties and interest payable. Procedure 9 Register the employees with the Social Security Board Time to complete: 2 Cost to complete: no charge Comment: All employees must be registered with the social security authorities. Confirmation of registration will take a few months. Operations can begin in the meantime, but deductions must be taken during this time. 13 14 1. Benchmarking Dealing with Construction Permits Regulations: Belize is ranked 4 overall for Dealing with Construction Permits. Ranking of Belize in Dealing with Construction Permits - Compared to good practice and selected economies: 15 The following table shows Dealing with Construction Permits data for Belize compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) income per Economies capita) Denmark 6 Qatar 0.8 Singapore 25 Selected Economy Belize 11 66 16.7 Comparator Economies Dominican Republic 17 214 126.7 Guyana 11 133 130.5 Haiti 11 1179 525.3 Jamaica 10 156 258.3 Puerto Rico 22 209 500.4 Suriname 14 431 88.9 16 2. Historical data: Dealing with Construction Permits in Belize Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 4 4 Procedures (number) 11 11 11 11 Time (days) 66 66 66 66 Cost (% of income per capita) 18.5 17.8 17.6 16.7 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Belize over the past 4 years: 17 Dealing with Construction Permits in Belize The table below summarizes the procedures, time, and costs to build a warehouse in Belize. BUILDING A WAREHOUSE City: Belize City Registration Requirements: No: Procedure Time to complete Cost to complete 1 Obtain a lot plan 2 days BZD 30 2 Request building permit from the Central Building Authority 22 days BZD 670 3 Receive foundation inspection 1 day no charge 4 Receive City Council inspection 1 day no charge 5 Obtain occupancy permit 2 days no charge 6 Receive electricity inspection 1 day no charge 7 Obtain electricity connection 7 days BZD 100 8 Install electricity connection 1 day no charge 18 9 Obtain water connection 14 days BZD 50 10 * Install water connection 1 day BZD 450 11 * Obtain fixed telephone line 14 days BZD 50 * Takes place simultaneously with another procedure. 19 Dealing with Construction Permits Details - Belize Procedure 1 Obtain a lot plan Time to complete: 2 days Cost to complete: BZD 30 Agency: Lands Department Comment: The property title should include a lot plan. Otherwise, it can be obtained from the Lands Department. In about 30% of cases, the Lands Department will not have the lot plan in its records. In these cases, the construction company can hire a surveyor to draw up a new plan. This would take 2­3 weeks to complete and cost BZD 500­700. Procedure 2 Request building permit from the Central Building Authority Time to complete: 22 days Cost to complete: BZD 670 Agency: Central Building Plan Authority, City Council Comment: To obtain a building permit, BuildCo must submit to the Central Building Authority an application form with the required fees and documents (see below). Depending on the location, an environmental compliance plan may be required. Other approving agencies would be the health and fire departments. Because they are a part of the committee, this is a one-stop approval process. During construction, an inspector visits the site at least four times to ensure that the structure corresponds to the agreed plans. With the application, BuildCo must submit the processing fee and three sets of plans, four site plans, and four location plans. The plans should include a drawing to scale, showing the plot boundaries in relation to adjoining roads, alleys, footpaths, and the position of any proposed building(s) on the same lot. Other information that should be included includes the layout of sewerage and drainage and detailed foundation plans, showing each floor and roof with typical cross-sections through the building indicating foundations, each floor, and the roof, with relative heights and levels of the lowest floor of the building and of the adjacent ground. Also to be submitted with the application are complete plans of all water-retaining structures with reinforced concrete detail, where used. These and other plans are required by the regulations under the Belize City Building Act, Chapter 131 and 40 of the Public Health Act (revised edition 2000). The city engineer must be informed of the start date of the above work. Once the City Council receives the plans, it sends them to the engineering department. The engineering department then sends the plans to the Ministry of Housing, which returns them to the City Council. However, the Ministry of Housing Committee meets only once a month, and it responds to the City Council only once every 2 weeks. The council is responsible for local regulations, while the ministry administers regional regulations. Throughout the approval process, the Building Plan Committee checks that the proposed project is in compliance with zoning, environmental, and fire safety requirements. Construction must begin within 6 months of the date the building permit is issued. The permit fee covers four site visits to inspect during four different phases. Application fees and permit fees are as follows. 20 Residential: - Less than or equal to 1,000 sq. ft.: BZD 50 plus BZD 0.10 per sq. ft. - Over 1,000 sq. ft. BZD 100 plus BZD 0.15 per sq. ft. Commercial: - Less than or equal to 800 sq. ft.: BZD 150 plus BZD 0.20 per sq. ft. (banks, stores, restaurants, for example). - Over 800 sq. ft.: BZD 175 plus BZD 0.25 per sq. ft. (hotels, bars, supermarkets, repair shops, beauty salons, for example). Institutional: - Less than or equal to 800 sq. ft.: BZD 150 + BZD 0.25 per sq. ft. (private schools or hospitals, for example). - Over 800 sq. ft.: BZD 175 plus BZD 0.30 per sq. ft. (clinics or churches, for example). There is no charge for government buildings (public schools, for example). Industrial: Less than or equal to 1,000 sq. ft.: BZD 125 plus BDZ 0.35 per sq. ft. (warehouses, garages, for example). Over 1,000 sq. ft.: BZD 150 plus BZD 0.40 per sq. ft. (factories, for example). Amenities: Swimming pool: BZD 150 plus BZD 1.00 per sq. ft. Pier: BZD 2.00 per (running) ft. Fence: BZD 0.25 per ft. Procedure 3 Receive foundation inspection Time to complete: 1 day Cost to complete: no charge Agency: City Council Comment: The building permit fee covers four site visits to inspect four different phases. To issue a building permit, the City Council schedules two inspections, based on the building plans. Belize City is comprised of five districts, and each district has one inspector assigned to it. It usually takes a week for the inspector to come to the site after the request has been placed Procedure 4 Receive City Council inspection Time to complete: 1 day Cost to complete: no charge Agency: City Council Comment: Procedure 5 Obtain occupancy permit Time to complete: 2 days Cost to complete: no charge 21 Agency: City Council Comment: BuildCo must submit a form to the City Council so it can inspect and evaluate the building. This is done at no charge. This procedure is done primarily for tax purposes. Procedure 6 Receive electricity inspection Time to complete: 1 day Cost to complete: no charge Agency: Belize Electric Company Ltd. (BECOL) Comment: Procedure 7 Obtain electricity connection Time to complete: 7 days Cost to complete: BZD 100 Agency: Belize Electric Company Ltd. (BECOL) Comment: Procedure 8 Install electricity connection Time to complete: 1 day Cost to complete: no charge Agency: Belize Electric Company Ltd. (BECOL) Comment: Procedure 9 Obtain water connection Time to complete: 14 days Cost to complete: BZD 50 Agency: Belize Water Services Ltd. (BWS) Comment: Some areas outside the city limits do not have sewage lines, so septic tanks are often required. Procedure 10 Install water connection Time to complete: 1 day Cost to complete: BZD 450 22 Agency: Belize Water Services Ltd. (BWS) Comment: Procedure 11 Obtain fixed telephone line Time to complete: 14 days Cost to complete: BZD 50 Agency: Belize Telemedia Limited (BTL) Comment: 23 24 1. Benchmarking Registering Property Regulations: Belize is ranked 134 overall for Registering Property. Ranking of Belize in Registering Property - Compared to good practice and selected economies: 25 The following table shows Registering Property data for Belize compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) property Economies value) New Zealand* 2 Norway* 1 Saudi Arabia 0.0 Selected Economy Belize 8 60 4.8 Comparator Economies Dominican Republic 7 60 3.7 Guyana 6 34 4.5 Haiti 5 405 6.3 Jamaica 6 37 7.5 Puerto Rico 8 194 0.9 Suriname 6 197 13.8 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 26 2. Historical data: Registering Property in Belize Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 132 134 Procedures (number) 8 8 8 8 Time (days) 60 60 60 60 Cost (% of property value) 4.7 4.7 4.8 4.8 3. The following graphs illustrate the Registering Property sub indicators in Belize over the past 4 years: 27 Registering Property in Belize This topic examines the steps, time, and cost involved in registering property in Belize. STANDARDIZED PROPERTY Property Value: 404,526.40 City: Belize City Registration Requirements: No: Procedure Time to complete Cost to complete 1 Conduct a search of the property records at the Lands 1 day no cost Department 2 * Obtain tax clearance from the Lands Tax Department 1 day (simultaneous no cost with procedure 3) 3 * Tax clearance stamped on the transfer instrument 5 - 10 days no cost (simultaneous with procedure 2) 4 Property is valued by the Valuation Department 10-30 days no cost 5 Justice of the Peace attests the transfer instrument 1 day no cost 6 Pay registration fees and stamp duty 1 - 2 days 15 BZD x 2 (for land certificate and registration) + 5% (property value after the first BD 20000) (stamp duty) 28 7 Register the transfer at the Lands Registry 21 - 30 days (paid in procedure 6) 8 Notify City Council of change in ownership 1 - 2 days no cost * Takes place simultaneously with another procedure. 29 Registering Property Details - Belize Procedure 1 Conduct a search of the property records at the Lands Department Time to complete: 1 day Cost to complete: no cost Agency: Lands Department Comment: A search of the property records should be done at the Lands Department where the property is located, to check for encumbrances or liens. Procedure 2 Obtain tax clearance from the Lands Tax Department Time to complete: 1 day (simultaneous with procedure 3) Cost to complete: no cost Agency: Lands Tax Department Comment: Tax receipts up to the current fiscal year are obtained at the Lands Tax Department. If the property is to be transferred before the fiscal year ends, the seller may pay the property taxes up through that date, and then the buyer agrees to reimburse the seller--either through the sale price or aside. Procedure 3 Tax clearance stamped on the transfer instrument Time to complete: 5 - 10 days (simultaneous with procedure 2) Cost to complete: no cost Comment: Tax clearance is proven twice: first with receipts, and second with a stamp from the Lands Tax Department on the actual transfer instrument. Procedure 4 Property is valued by the Valuation Department Time to complete: 10-30 days Cost to complete: no cost Agency: Valuation Department Comment: The Valuation Department determines if the sale price in the transfer instrument is at least the true value of the property, according to their assessment. They assess based on actual rental value, and any factor having influence on this, such as: location, condition of the building, type and size, architectural design, parking area, garage or other buildings on the property. The valuation process may consist of checking the value listed in the valuation `Roll', and/or physically inspecting the property. The Valuation Department will issue a receipt stating how much they have assessed, which is presented at the time of payment of stamp duty. 30 Procedure 5 Justice of the Peace attests the transfer instrument Time to complete: 1 day Cost to complete: no cost Agency: Justice of the Peace Comment: It is not required to have a lawyer draft the transfer instrument, but it should be either notarized (for a fee) or attested by a Justice of the Peace. Most people choose the latter option as it is free of charge. Procedure 6 Pay registration fees and stamp duty Time to complete: 1 - 2 days Cost to complete: 15 BZD x 2 (for land certificate and registration) + 5% (property value after the first BD 20000) (stamp duty) Agency: Lands Registry Comment: Registration fees and stamp duty are paid to the cashier at the Lands Registry. To pay stamp duty, the receipt from the valuation in procedure 4 is presented and 5% of the assessed value after the first BD 20000 charged. Procedure 7 Register the transfer at the Lands Registry Time to complete: 21 - 30 days Cost to complete: (paid in procedure 6) Agency: Lands Registry Comment: There are three systems of land registration operating in Belize. The property in question is located around Belize City and is most likely under the Registered Land Act, whereby transfers occur by Land Certificate. Other properties may be under `deed of conveyance' or `certificate of title', in which case the transfer process would be slightly different. In this case, the land certificate would need to be transferred at the Lands Registry in Belmopan, and would take about 3 ­ 4 weeks to process and receive a new certificate. Documentation required: -receipts of payment of registration fees and stamp duty -transfer instrument -proof of identification of the parties Procedure 8 Notify City Council of change in ownership Time to complete: 1 - 2 days Cost to complete: no cost Agency: City Council 31 Comment: The City Council updates the property tax records to reflect the new ownership. 32 33 1. Benchmarking Getting Credit Regulations: Belize is ranked 89 overall for Getting Credit. Ranking of Belize in Getting Credit - Compared to good practice and selected economies: 34 The following table shows Getting Credit data for Belize compared to good practice and comparator economies: Good Practice Strength of Depth of Public Private legal rights credit registry bureau Economies index (0-10) information coverage (% coverage (% index (0-6) of adults) of adults) New Zealand* 100.0 Portugal 67.1 Singapore* 10 United Kingdom 6 Selected Economy Belize 8 0 0.0 0.0 Comparator Economies Dominican Republic 3 6 28.5 47.3 Guyana 4 0 0.0 0.0 Haiti 3 2 0.7 0.0 Jamaica 8 0 0.0 0.0 Puerto Rico 7 5 0.0 71.5 Suriname 5 0 0.0 0.0 * The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index. 35 2. Historical data: Getting Credit in Belize Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 87 89 Strength of legal rights index (0-10) 8 8 8 8 Depth of credit information index (0-6) 0 0 0 0 Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0 Public registry coverage (% of adults) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Getting Credit sub indicators in Belize over the past 4 years: 36 Getting Credit in Belize The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Belize. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 0 bureau registry Are data on both firms and individuals distributed? No No 0 Are both positive and negative data distributed? No No 0 Does the registry distribute credit information from retailers, trade No No 0 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? No No 0 Is data on all loans below 1% of income per capita distributed? No No 0 Is it guaranteed by law that borrowers can inspect their data in the No No 0 largest credit registry? Coverage 0.0 0.0 Number of individuals 0 0 Number of firms 0 0 37 Strength of legal rights index (0-10) 8 Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes institution accept such assets as collateral ? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, Yes without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without Yes requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend automatically to the products, Yes proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations Yes and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the Yes grantor's name of a security right ? Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? No Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? Yes Does the law authorize parties to agree on out of court enforcement? Yes 38 39 1. Benchmarking Protecting Investors Regulations: Belize is ranked 120 overall for Protecting Investors. Ranking of Belize in Protecting Investors - Compared to good practice and selected economies: 40 The following table shows Protecting Investors data for Belize compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Belize 4.3 Comparator Economies Dominican Republic 5.7 Guyana 5.3 Haiti 3.0 Jamaica 5.3 Puerto Rico 7.0 Suriname 2.0 41 2. Historical data: Protecting Investors in Belize Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 119 120 Strength of investor protection index (0-10) 4.3 4.3 4.3 4.3 3. The following graph illustrates the Protecting Investors index in Belize compared to best practice and selected Economies: 9.7 7.0 5.7 5.3 5.3 4.3 3.0 2.0 ub an a o an nd ti e e a ic ep inic liz m c ai R lic ai uy a na H Be al om m to G ri Ze Ja er Su D Pu ew R N Note: The higher the score, the greater the investor protection. 42 Protecting Investors in Belize The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Belize. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 3 1 What corporate body provides legally sufficient approval for the transaction? 0 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 1 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 1 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 0 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 4 1 Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 1 Whether shareholders can hold the approving body (the CEO or board of directors) liable for the damage that the Buyer-Seller transaction causes to the company? 0 Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 1 Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 43 0 Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 Whether fines and imprisonment can be applied against Mr. James? 1 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? Ease of shareholder suits index (0-10) 6 1 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 2 Whether the plaintiff can directly question the defendant and witnesses during trial? 1 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 0 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 1 Whether the level of proof required for civil suits is lower than that of criminal cases? 1 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 4.3 44 45 1. Benchmarking Paying Taxes Regulations: Belize is ranked 69 overall for Paying Taxes. Ranking of Belize in Paying Taxes - Compared to good practice and selected economies: 46 The following table shows Paying Taxes data for Belize compared to good practice and comparator economies: Good Practice Payments Time (hours Total tax rate (number per per year) (% profit) Economies year) Maldives* 3 0 Timor-Leste 0.2 Selected Economy Belize 40 147 33.2 Comparator Economies Dominican Republic 9 324 40.7 Guyana 34 288 38.9 Haiti 42 160 40.1 Jamaica 72 414 50.1 Puerto Rico 16 218 67.7 Suriname 17 199 27.9 * The following economies are also good practice economies for : Payments (number per year): Qatar 47 2. Historical data: Paying Taxes in Belize Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 65 69 Total tax rate (% profit) 34.8 33.2 33.2 33.2 Payments (number per year) 41 40 40 40 Time (hours per year) 147 147 147 147 3. The following graphs illustrate the Paying Taxes sub indicators in Belize over the past 4 years: 48 Paying Taxes in Belize The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Belize, as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR VAT/GST 12 60 10.0% value added Fuel tax 1 0.00 vehicle tax 1 various rates ranges 0.10 between 250-300 BZD property tax 1 10.0% rental value 0.50 of property Business license 1 25.0% rental value 0.80 of business premises social security 12 60 various rates gross salaries 7.00 Business tax or CIT 12 27 1.75% or turnover or 24.70 25% profit Totals 40 147 33.2 49 50 1. Benchmarking Trading Across Borders Regulations: Belize is ranked 119 overall for Trading Across Borders. Ranking of Belize in Trading Across Borders - Compared to good practice and selected economies: 51 The following table shows Trading Across Borders data for Belize compared to good practice and comparator economies: Good Practice Documents to Time to Cost to Documents to Time to Cost to export export (days) export (US$ import import (days) import (US$ Economies (number) per (number) per container) container) Denmark* 5 France 2 2 Malaysia 450 Singapore 4 439 Selected Economy Belize 7 21 1710 6 21 1870 Comparator Economies Dominican Republic 6 9 916 7 10 1150 Guyana 7 19 730 8 22 745 Haiti 8 35 1005 10 33 1545 Jamaica 6 21 1750 6 22 1420 Puerto Rico 7 15 1250 10 16 1250 Suriname 8 25 995 7 25 945 * The following economies are also good practice economies for : Time to export (days): Estonia 52 2. Historical data: Trading Across Borders in Belize Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 118 119 Cost to export (US$ per container) 1700 1710 1710 1710 Cost to import (US$ per container) 1855 1870 1870 1870 Documents to export (number) 7 7 7 7 Documents to import (number) 6 6 6 6 Time to export (days) 21 21 21 21 Time to import (days) 21 21 21 21 3. The following graphs illustrate the Trading Across Borders sub indicators in Belize over the past 4 years: 53 54 Trading Across Borders in Belize These tables list the procedures necessary to import and export a standardized cargo of goods in Belize. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 9 510 Customs clearance and technical control 4 350 Ports and terminal handling 5 450 Inland transportation and handling 3 400 Totals 21 1710 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 10 570 Customs clearance and technical control 4 350 Ports and terminal handling 4 550 Inland transportation and handling 3 400 Totals 21 1870 55 Documents for Export and Import Export Bill of lading Certificate of origin Commercial invoice Customs export declaration Health certificate Packing list Terminal handling receipts Import Bill of lading Certificate of origin Commercial invoice Customs import declaration Packing list Terminal handling receipts 56 57 1. Benchmarking Enforcing Contracts Regulations: Belize is ranked 168 overall for Enforcing Contracts. Ranking of Belize in Enforcing Contracts - Compared to good practice and selected economies: 58 The following table shows Enforcing Contracts data for Belize compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) claim) Economies Bhutan 0.1 Ireland 20 Singapore 150 Selected Economy Belize 51 892 27.5 Comparator Economies Dominican Republic 34 460 40.9 Guyana 36 581 25.2 Haiti 35 508 42.6 Jamaica 35 655 45.6 Puerto Rico 39 620 25.6 Suriname 44 1715 37.1 59 2. Historical data: Enforcing Contracts in Belize Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 168 168 Procedures (number) 51 51 51 51 Time (days) 892 892 892 892 Cost (% of claim) 27.5 27.5 27.5 27.5 3. The following graphs illustrate the Enforcing Contracts sub indicators in Belize over the past 4 years: 60 Enforcing Contracts in Belize This topic looks at the efficiency of contract enforcement in Belize. Nature of Procedure (2010) Indicator Procedures (number) 51 Time (days) 892 Filing and service 30.0 Trial and judgment 562.0 Enforcement of judgment 300.0 Cost (% of claim)* 27.50 Attorney cost (% of claim) 17.5 Court cost (% of claim) 2.0 Enforcement Cost (% of claim) 8.0 61 Court information: Belize Supreme Court * Claim assumed to be equivalent to 200% of income per capita. 62 63 1. Benchmarking Closing Business Regulations: Belize is ranked 28 overall for Closing a Business. Ranking of Belize in Closing Business - Compared to good practice and selected economies: 64 The following table shows Closing Business data for Belize compared to good practice and comparator economies: Good Practice Recovery rate Time (years) Cost (% of (cents on the estate) Economies dollar) Ireland 0.4 Japan 92.7 Singapore* 1 Selected Economy Belize 63.6 1.0 23 Comparator Economies Dominican Republic 9.1 3.5 38 Guyana 17.6 3.0 29 Haiti 6.7 5.7 30 Jamaica 65.1 1.1 18 Puerto Rico 64.7 3.8 8 Suriname 8.7 5.0 30 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 65 2. Historical data: Closing Business in Belize Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 25 28 Time (years) 1.0 1.0 1.0 1.0 Cost (% of estate) 23 23 23 23 Recovery rate (cents on the dollar) 63.5 63.4 63.4 63.6 3. The following graphs illustrate the Closing Business sub indicators in Belize over the past 4 years: 66 Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems. The top 10 most-improved in Doing Business 2011 Dealing with Construction Trading Across Borders Positive Change Registering Property Enforcing Contracts Protecting Investors Starting a Business Closing a Business Negative Change Getting Credit Paying Taxes Permits Economy Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam * For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking. 67 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam made trading easier. Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks. Dominican Republic The Dominican Republic made it more difficult to start a business by setting a minimum capital requirement of 100,000 Dominican pesos ($2,855) for its new type of company, sociedad de responsabilidad limitada (limited liability company). Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Guyana Guyana eased business start-up by digitizing company records, which speeded up the process of company name search and reservation. Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private credit bureaus and gives borrowers the right to inspect their data. Guyana improved its risk profiling system for customs inspection, reducing physical inspections of shipments and the time to trade. Haiti Haiti eased business start-up by eliminating the review by the president's or the prime minister's office of the incorporation act submitted for publication. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Jamaica Jamaica eased the transfer of property by lowering transfer taxes and fees, offering expedited registration procedures and making information from the company registrar available online. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals. Puerto Rico Puerto Rico made paying taxes more costly for business by introducing a special surtax of 5% on the tax liability in addition to the normal corporate income tax. Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank's public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. 68 Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate. Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors. Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations and introducing scanning machines at border posts. Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records. 69 70