58730 United Kingdom © 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 United Kingdom. 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 United Kingdom is ranked 4 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. United Kingdom - Compared to global good practice economy as well as selected economies: United Kingdom's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 4 Starting a Business 17 Dealing with Construction Permits 16 Registering Property 22 Getting Credit 2 Protecting Investors 10 Paying Taxes 16 Trading Across Borders 15 Enforcing Contracts 23 Closing a Business 7 2 Summary of Indicators - United Kingdom Starting a Business Procedures (number) 6 Time (days) 13 Cost (% of income per capita) 0.7 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 11 Time (days) 95 Cost (% of income per capita) 70.9 Registering Property Procedures (number) 2 Time (days) 8 Cost (% of property value) 4.1 Getting Credit Strength of legal rights index (0-10) 9 Depth of credit information index (0-6) 6 Public registry coverage (% of adults) 0.0 Private bureau coverage (% of adults) 100.0 Protecting Investors Extent of disclosure index (0-10) 10 Extent of director liability index (0-10) 7 Ease of shareholder suits index (0-10) 7 Strength of investor protection index (0-10) 8.0 Paying Taxes Payments (number per year) 8 Time (hours per year) 110 Profit tax (%) 23.1 Labor tax and contributions (%) 10.8 Other taxes (%) 3.3 Total tax rate (% profit) 37.3 Trading Across Borders Documents to export (number) 4 Time to export (days) 7 Cost to export (US$ per container) 950 Documents to import (number) 4 Time to import (days) 6 Cost to import (US$ per container) 1045 3 Enforcing Contracts Procedures (number) 28 Time (days) 399 Cost (% of claim) 23.4 Closing a Business Recovery rate (cents on the dollar) 88.6 Time (years) 1.0 Cost (% of estate) 6 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 0.08 become easier (DB 0.06 change score) 0.04 0.02 0.00 Doing business has -0.02 become more difficult or more -0.04 France United Ireland Spain Germany Italy costly Kingdom 6 1. Benchmarking Starting a Business Regulations: United Kingdom is ranked 17 overall for Starting a Business. Ranking of United Kingdom in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for United Kingdom 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 United Kingdom 6 13 0.7 0.0 Comparator Economies France 5 7 0.9 0.0 Germany 9 15 4.8 0.0 Ireland 4 13 0.4 0.0 Italy 6 6 18.5 10.1 Spain 10 47 15.1 13.5 * 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 United Kingdom Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 16 17 Procedures (number) 6 6 6 6 Time (days) 13 13 13 13 Cost (% of income per capita) 0.8 0.8 0.7 0.7 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 United Kingdom over the past 4 years: 9 Starting a Business Summary - United Kingdom This table summarizes the procedures and costs associated with setting up a business in the United Kingdom. STANDARDIZED COMPANY Legal Form: Private Limited Company (Ltd) City: London Registration Requirements: No: Procedure Time to complete Cost to complete 1 Check name for uniqueness at the company names index database on 1 no charge the web 2 Prepare memorandum and articles of association; fill out and sign 1 GBP 135 Form IN01 (application for registration). 3 File incorporation documents with the Registrar of Companies at 1 GBP 30 Companies House 4 Contact HMRC and register for VAT 1 no charge 5 * Contact HMRC and register for PAYE 8 no charge 6 Sign up for employer's liability insurance 1 no charge * Takes place simultaneously with another procedure. 10 Starting a Business Details - United Kingdom Procedure 1 Check name for uniqueness at the company names index database on the web Time to complete: 1 Cost to complete: no charge Comment: This can be done at http://wck2.companieshouse.gov.uk/b2366611298171d46dc7fbf07eee4e08/wcframe? name=accessCompanyInfo Procedure 2 Prepare memorandum and articles of association; fill out and sign Form IN01 (application for registration). Time to complete: 1 Cost to complete: GBP 135 Comment: The required wording for the memorandum is set out in the Companies (Registration) Regulations 2008 (SI No. 2008/3014), and model articles are set out in the Companies (Model Articles) Regulations 2008 (SI No. 3229) which may be purchased from legal stationers, accountants, solicitors, or company formation agents. Forms are also available free of charge from the Companies House website: www.companieshouse.gov,uk. The company limited by shares that has adopted model articles without modification does not need to deliver a copy for registration. Form IN01 must be signed by all the subscribers. n addition to the memorandum and articles of association an application to register a company must contain the following information included on the form IN01 which should be lodged with the relevant Registrar of Companies (i.e. for England and Wales (or Wales), Scotland or Northern Ireland): (i) statement of compliance with all requirements of the Companies Act 2006; (ii) application for registration of the company covering: - proposed name (see section 3.6 for more detailed information on choosing a company name); - country of registration office (e.g. England and Wales (or Wales), Scotland or Northern Ireland); - whether the liability of the members is to be limited and if so whether by shares or guarantee; and - whether public or private; (iii) if the application is delivered by agents acting on behalf of the subscribers, the agent's name and address, as was the case under the Companies Act 1985. In addition, in the event that the application is delivered by an agent for the subscribers, they must also confirm that the requirements of the Companies Act 2006 relating to the registration have been complied with; (iv) in the case of a company with a share capital the application must also include a statement of the capital and initial shareholdings, including the name and address of the subscriber. A service address may be used by the subscriber. This is a new requirement introduced by the Companies Act 2006; (v) a statement of the proposed officers, being the first director and company secretary (unless in the case of a private company there is no company secretary); and (vi) a statement of the intended registered office address. Procedure 3 File incorporation documents with the Registrar of Companies at Companies House Time to complete: 1 11 Cost to complete: GBP 30 Comment: Fees for filing incorporation documents vary. The standard registration fees is GBP 20 and GBP 50 for same day incorporation. The online registration fee is GBP 15 and GBP 30 for same day incorporation. Procedure 4 Contact HMRC and register for VAT Time to complete: 1 Cost to complete: no charge Comment: HMRC will contact the company to register it for corporate tax (tax on company profits). Procedure 5 Contact HMRC and register for PAYE Time to complete: 8 Cost to complete: no charge Comment: The company must separately contact the Inland Revenue to set up a contribution scheme for national insurance and pay-as-you-earn (PAYE) tax, which deducts income tax from employee wages or salary). The company will be issued with an activation PIN within around a week and will need to activate this within 28 days (or else request a new PIN). Procedure 6 Sign up for employer's liability insurance Time to complete: 1 Cost to complete: no charge Comment: The Employers' Liability (Compulsory Insurance) Act 1969 requires that proof of insurance be posted at the workplace. Since 1 October 2008 it is possible to display this information electronically, although a company that wishes to do this will need to ensure that its employees know how and where to find the certificate and have reasonable access to it. 12 13 1. Benchmarking Dealing with Construction Permits Regulations: United Kingdom is ranked 16 overall for Dealing with Construction Permits. Ranking of United Kingdom in Dealing with Construction Permits - Compared to good practice and selected economies: 14 The following table shows Dealing with Construction Permits data for United Kingdom 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 United Kingdom 11 95 70.9 Comparator Economies France 13 137 23.6 Germany 12 100 61.8 Ireland 11 192 57.8 Italy 14 257 142.3 Spain 11 233 47.4 15 2. Historical data: Dealing with Construction Permits in United Kingdom Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 16 16 Procedures (number) 19 19 11 11 Time (days) 144 144 95 95 Cost (% of income per capita) 64.6 64.2 69.1 70.9 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in United Kingdom over the past 4 years: 16 Dealing with Construction Permits in United Kingdom The table below summarizes the procedures, time, and costs to build a warehouse in the United Kingdom. BUILDING A WAREHOUSE City: London Registration Requirements: No: Procedure Time to complete Cost to complete 1 Hire an Approved Inspector 1 day GBP 3,896 2 Obtain planning permission 70 days GBP 4,100 3 Submit application to local Fire Safety Office and obtain approval 21 days no charge 4 Apply for electric power connection 20 days GBP 3,100 5 * Receive inspection from the electric power provider 1 day no charge 6 * Obtaining water and sewerage connection 20 days GBP 5,100 7 * Receive inspection from the water provider 1 day no charge 8 * Obtaining phone connection 7 days GBP 106 17 9 * Receive inspection from the telecom provider 1 day no charge 10 File completion certificate to Building Control Department of Local 1 day no charge Authority 11 * Request and receive Energy Performance Certificate from Accredite 1 day GBP 78 Energy Assessor * Takes place simultaneously with another procedure. 18 Dealing with Construction Permits Details - United Kingdom Procedure 1 Hire an Approved Inspector Time to complete: 1 day Cost to complete: GBP 3,896 Agency: Approved Inspector Comment: BuildCo enters into contract with an Approved Inspector. Approved Inspectors (AI) are companies or individuals authorized under the Building Act 1984 to carry out building control work in England and Wales. AI will take on responsibility for plan checking and inspection of the building work. Once the contract is signed and terms of reference are outlined, the builder and the approved inspector jointly notify the local authority of their intention to build, what is also called an initial notice. Once this notice has been accepted by the local authority the responsibility for plan checking and site inspection will be formally placed on the AI. An Approved Inspector will: - advise BuildCo on how the Building Regulations apply to its work (to a degree) - check plans for compliance with building regulations - issue a plans certificate (if requested) - inspect the work as it progresses - issue a final completion certificate (if requested). A list of approved inspectors can be viewed at the Association of Corporate Approved Inspectors. The AIs are licensed by this independent board for every 5 years. They are also backed by insurance while the public building control authorities do not have that. AIs have become an important player in the market in the past few years. According to the study conducted by the Department for Communities and Local Government in February 2008, AIs have 64% of commercial market. By hiring AIs companies eliminate need of dealing with different external companies. It also eliminates need for companies deal with Building Control Department of Local Authority. However, the Local Authority is still responsible for the enforcement of the Regulations. If the AI discovers contraventions of the Building Regulations, the project must revert to the Local Authority for the purposes of prosecuting any offence. Unsurprisingly, the number of contraventions notified to LABC by AI's is extremely low. Additionally, Local Authorities still have the power to cancel Initial Notices under certain circumstances e.g. the works have not commenced with the prescribed period (currently 3 years from the date of deposit). The building control process was deregulated under the Building Act 1984, and became an alternative to formal process of building control. Currently, there are 60 AIs that are recognized in England and Wales, accounting for about 20% of all building control work. The other decisive factor for a company is time. AIs would provide for more expeditious time-limits as a whole. Plan approval could be done by them in 2-3 weeks, whereas the Local Authority would take 6 to 8 weeks, according to statutory time-limits. BuildCo would most likely choose the AI given that it is not a one time project and would be commercially viable. In addition to that AI ensures timely advice upon the request of client. Approved Inspectors usually operate nationally and bring consistency of interpretation of the Building Regulations. AI can provide input on the design aspects of Building Regulations to BuildCo when it applies for the planning permission. Once the planning permission (consent) is obtained from Planning Department in Local 19 Authority, the AI sends a notice to the Building Control Department of Local Authority that it would take the responsibility over the building control process. In return within 5 days it will receive a notice of acknowledgement that is not conditional to beginning the works. Construction works may begin as soon as the notice has been filed to the Local Authority. AI, for BuildCo's case, would conduct at least 8-9 inspections at various stages of construction and risk based factors. The cost for the services of AI is comprised of the several elements and is mostly charge on hourly basis. The below estimate is a sample of what an average cost breakdown by an AI looks like: Plan checking GBP 1280; Inspections (9 sessions x 2h x GBP 80) GBP 1440; Structural checking GBP 160; Consultations GBP 40; Electronic/Internet drawings GBP 75; Meetings GBP 300; Administrative GBP 40; Inspections petrol fee (40 miles x GBP 3.6) GBP 144; Contingency GBP 417. Total: GBP 3,896. Procedure 2 Obtain planning permission Time to complete: 70 days Cost to complete: GBP 4,100 Agency: Planning Department of Local Authority Comment: First step would be obtaining planning permission from the local planning department. The application must be accompanied by a plan of the site, details of any proposed works (architectural drawings) and the fee. If BuildCo is submitting a paper application form, at least three copies of the form and plans are required, although some councils may ask for more. BuildCo must also complete a certificate to confirm that it owns the land. It can be handed in person, or posted. Alternatively, BuildCo may wish to obtain an application form from the internet, and submit the completed application electronically. Beginning April 6, 2006 a new standard application form was introduced that significantly facilitated the process of submission. It provided for unity of all requirements for planning permission nationwide. In many cases a decision will be made within eight weeks. Large or complex proposals may take longer. There is an electronic tracking system of the progress of application through the Planning Portal. In the past few years the Local Authorities made somewhat improvements in expediting the planning permission. More staff was recruited in the past few years. Presumption of consent for small scale residential projects was introduced, which relieved much pressure from local authorities and made them concentrate on larger and more important projects. Simplified some requirements for planning process. Both the LA and the applicant are interested in getting a successful result, therefore the LA will tell the applicant that is extending the timeline, but that planning consent is underway. Otherwise, they can simply sent it for rejection. In practice it takes on average 70 days (10 weeks). Procedure 3 Submit application to local Fire Safety Office and obtain approval Time to complete: 21 days Cost to complete: no charge Agency: Fire Safety Office Comment: Approved Inspector submits respective elements of the drawing and plans pertinent to fire safety to a local Fire Safety Office, as part of the formal plan vetting process in order that they can assure themselves that the building is compliant with the latest fire safety 20 Legislation and that the appropriate fire and life safety systems are in place. That can be sent in an envelope. The Fire Office responds by law within 15 business days (21 calendar days) and sends its comments and approval. This is done in the process of building regulation plan approval, and recorded as independent procedure since AI interacts with Fire Officer. Upon the completion of the building BuildCo before used to obtain a Fire Certificate from Fire Safety Office. The Fire Certificate is is no longer required following the reforms in the Regulatory Reform (Fire Safety) Order 2005 (FSO 2005) which came into effect in October 2006, and replaced over 70 pieces of fire safety laws. The FSO applies to all non-domestic premises in England and Wales, including the common parts of blocks of flats and houses in multiple occupation (HMOs). The FSO 2005 is a tool for self ­regulation of businesses for the fire risk of the premises. Under the FSO, the responsible person must carry out a fire safety risk assessment and implement and maintain a fire management plan. The companies have to carry out a risk assessment by completing a 5-step fire risk assessment survey online: (http://www.fire.gov.uk/Workplace+safety/WhatTheLawRequires/) According to this survey- FSO 2005 the warehouse of BuildCo would be classified as medium risk object. Since there will be more than 5 people occupying/working in the building, BuildCo would need to file the copy of completed FSO 2005 to the local Fire Safety Office. BuildCo does not need to wait for the approval or any other consent before using the premises. This risk is with the building operators they are deemed liable for any problems. Fire Safety Office may conduct an inspection under risk based scheme: whether there was a similar track record of companies with fire, or neighbours complain, etc. Small scale and standard objects would be seldom inspected. Also, given that this would be a new building it would be assumed by the Fire Safety Office that the latest techniques of fire safety prevention would have been considered during the planning process. Procedure 4 Apply for electric power connection Time to complete: 20 days Cost to complete: GBP 3,100 Comment: BuildCo must file a letter of intent and must buy all materials for the connection itself. Procedure 5 Receive inspection from the electric power provider Time to complete: 1 day Cost to complete: no charge Comment: Procedure 6 Obtaining water and sewerage connection Time to complete: 20 days Cost to complete: GBP 5,100 Comment: BuildCo must file a letter of intent and must buy all materials for the connection itself. 21 Procedure 7 Receive inspection from the water provider Time to complete: 1 day Cost to complete: no charge Comment: Procedure 8 Obtaining phone connection Time to complete: 7 days Cost to complete: GBP 106 Agency: British Telecom Comment: BuildCo must file a letter of intent and must buy all materials for the connection itself. According to British Telecom the largest service provider in the UK, a new line is normally installed within four working days if the object is in a digital exchange area. If it is in one of the few exchange areas which have not yet been fully upgraded, this may extend to six working days. In practice, however the connection may take up to 2 months even for areas with existing telecom communications. The updated fee schedule for obtaining a new fixed telephone line for businesses from British Telecom costs GBP 106.37. Procedure 9 Receive inspection from the telecom provider Time to complete: 1 day Cost to complete: no charge Comment: Procedure 10 File completion certificate to Building Control Department of Local Authority Time to complete: 1 day Cost to complete: no charge Agency: Local Building Control Department Comment: Once the building is completed BuildCo would notify AI about the completion. AI completes the final inspection within 24 hours and prepares the certificate of completion. AI will file copy of completion certificate to Building Control Department of Local Authority within 5 days after completion of final inspection. LABC then files the documents and sends an acknowledgement of receipt to BuildCo/AI. Although, legally not required, Building Control Department, in practice may conduct an inspection. LABC is not required to issue an approval of a Completion Certificate issued by an AI, however, failure by BuildCo to obtain one may prove to be problematic. Procedure 11 Request and receive Energy Performance Certificate from Accredite Energy Assessor Time to complete: 1 day 22 Cost to complete: GBP 78 Agency: Accredited Energy Assessor Comment: Following the nationwide implementation of the "Energy Performance of Buildings Directive" adopted, on 16th December 2002, as of 4 January 2009 all commercial buildings whenever built, rented or sold require an Energy Performance Certificate. The certificate records how energy efficient a property is as a building and provides A_G ratings. It is the responsibility of the builder/constructor to give the Energy Performance Certificate and Recommendations Report to the Purchaser on physical completion of the building and notify the local authority Building Control officers or approved inspectors, who will not issue a Certificate of Completion until the EPC is provided. They are produced using standard methods and assumptions about energy usage so that the energy efficiency of one building can easily be compared with another building of the same type. This allows prospective buyers, tenants, owners, occupiers and purchasers to see information on the energy efficiency and carbon emissions from their building so they can consider energy efficiency and fuel costs as part of their investment. An EPC is always accompanied by a recommendation report that lists cost effective and other measures (such as low and zero carbon generating systems) to improve the energy rating. A rating is also given showing what could be achieved if all the recommendations were implemented. The fee for the EPC may vary between GBP 55 to GBP 100. 23 24 1. Benchmarking Registering Property Regulations: United Kingdom is ranked 22 overall for Registering Property. Ranking of United Kingdom in Registering Property - Compared to good practice and selected economies: 25 The following table shows Registering Property data for United Kingdom 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 United Kingdom 2 8 4.1 Comparator Economies France 8 59 6.1 Germany 5 40 5.1 Ireland 5 38 6.3 Italy 8 27 4.5 Spain 4 18 7.1 * 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 United Kingdom Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 23 22 Procedures (number) 2 2 2 2 Time (days) 21 21 8 8 Cost (% of property value) 4.1 4.1 4.1 4.1 3. The following graphs illustrate the Registering Property sub indicators in United Kingdom over the past 4 years: 27 Registering Property in United Kingdom This topic examines the steps, time, and cost involved in registering property in the United Kingdom. STANDARDIZED PROPERTY Property Value: 1,155,502.83 City: London Registration Requirements: No: Procedure Time to complete Cost to complete 1 Lodge a Land Transaction Return and pay the Stamp 1 day £13 + Legal fees + 4% Duty Land Tax (SDLT) (available on-line) SDLT according to the following schedule: Property valueSDLT Under £ 150,0000% Between £ 150,000 and £ 250,0001% Between £ 250,000 and £ 500,0003% Above £ 500,0004% 28 2 The transfer and any legal charges are registered at 7 days The new Fee Order (the the Land Registry Land Registration Fee Order 2009) came into effect on 6 July 2009 and the fee thresholds are as follows:Property value: GBP0- GBP50,000 - fee: GBP50Property value: GBP50,001- GBP80,000 - fee: GBP80Property value: GBP80,001- GBP100,000 - fee: GBP130Property value: GBP100,001- GBP200,000 - fee: GBP200Property value: GBP200,001- GBP500,000 - fee: GBP280Property value: GBP500,001- GBP1,000,000 - fee: GBP550Property value: GBP1,000,000 + - fee: GBP920 29 Registering Property Details - United Kingdom Procedure 1 Lodge a Land Transaction Return and pay the Stamp Duty Land Tax (SDLT) (available on-line) Time to complete: 1 day Cost to complete: £13 + Legal fees + 4% SDLT according to the following schedule: Property valueSDLT Under £ 150,0000% Between £ 150,000 and £ 250,0001% Between £ 250,000 and £ 500,0003% Above £ 500,0004% Agency: HM Revenue & Customs Comment: The buyer must complete, sign and lodge at the Revenue within 30 days of completion of the transaction a Land Transaction Return and pay any Stamp Duty Land Tax (SDLT) due. The completed Land Transaction Return must be sent by post to the Revenue's Rapid Data Capture center in Netherton (near Liverpool) or submitted electronically (functionality available since 2006). When the Return is submitted, the correct amount of SDLT must also be paid either by cheque, through the CHAPS automated payment system or via direct bank transfer. Once the Return has been processed by the Revenue the Revenue will issue a Land Transaction Return Certificate. If the Return has been submitted electronically, the Certificate is typically received within two hours (since 2009). If the Return has been submitted in the post, the Certificate is typically received within one month. The issue of a Land Transaction Return Certificate merely evidences that a Return has been filed at the Revenue; issuance of a Certificate does not necessarily mean that the information contained within the Return and/or amount of SDLT paid is correct. The Certificate must be sent to the Land Registry when an application for registration of the transfer is made. If the buyer acquires the property with financing, any legal charge created by it (if it is a company) must be registered at Companies House within 21 days of its creation, failing which the charge is void against a liquidator or another creditor of the company. Procedure 2 The transfer and any legal charges are registered at the Land Registry Time to complete: 7 days Cost to complete: The new Fee Order (the Land Registration Fee Order 2009) came into effect on 6 July 2009 and the fee thresholds are as follows:Property value: GBP0- GBP50,000 - fee: GBP50Property value: GBP50,001- GBP80,000 - fee: GBP80Property value: GBP80,001- GBP100,000 - fee: GBP130Property value: GBP100,001- GBP200,000 - fee: GBP200Property value: GBP200,001- GBP500,000 - fee: GBP280Property value: GBP500,001- GBP1,000,000 - fee: GBP550Property value: GBP1,000,000 + - fee: GBP920 Agency: Land Registry Comment: Parties register the transfer (and any legal charge) at the Land Registry by submitting the appropriate documents and paying the Land Registry fees. A cheque made payable to "Land Registry" must accompany the application for registration to the correct office of the Land Registry (unless there was a prior authorized agreement with the Registry to pay by direct debit) On completion of the registration the Land Registry will send to the buyer's solicitor a title information document. 30 The documentation shall include: Completed Land Registry form AP1 Original and certified copy transfer Land transaction certificate Original and certified copy mortgage if the buyer acquires the property with financing The law requires conveyancers, from 10 November 2008, when they submit an application to register the interest of their client in a property, to provide details of the conveyancers who acted for all other parties involved in the transaction. If any involved person (including a company) is not represented by a conveyancer, the person lodging the application must either confirm that they are satisfied that sufficient steps have been taken to verify the identity of the unrepresented person or otherwise lodge evidence of the unrepresented person's identity. If confirmation of identity is required for an application, but is not provided, the Land Registry will reject the application. Identification requirements extend to buyers, sellers, landlords, tenants, borrowers and lenders. Land registry information available at www.landregistry.gov.uk 31 32 1. Benchmarking Getting Credit Regulations: United Kingdom is ranked 2 overall for Getting Credit. Ranking of United Kingdom in Getting Credit - Compared to good practice and selected economies: 33 The following table shows Getting Credit data for United Kingdom 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 United Kingdom 9 6 0.0 100.0 Comparator Economies France 7 4 33.3 0.0 Germany 7 6 1.0 98.4 Ireland 8 5 0.0 100.0 Italy 3 5 16.6 80.5 Spain 6 5 54.6 10.7 * The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index. 34 2. Historical data: Getting Credit in United Kingdom Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 2 2 Strength of legal rights index (0-10) 9 9 9 9 Depth of credit information index (0-6) 6 6 6 6 Private bureau coverage (% of adults) 84.6 100.0 100.0 100.0 Public registry coverage (% of adults) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Getting Credit sub indicators in United Kingdom over the past 4 years: 35 Getting Credit in United Kingdom The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in the United Kingdom. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 6 bureau registry Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative data distributed? Yes No 1 Does the registry distribute credit information from retailers, trade Yes No 1 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? Yes No 1 Is data on all loans below 1% of income per capita distributed? Yes No 1 Is it guaranteed by law that borrowers can inspect their data in the Yes No 1 largest credit registry? Coverage 100.0 0.0 Number of individuals 46,015,600 0 Number of firms 6,237,460 0 36 Strength of legal rights index (0-10) 9 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? Yes Do secured creditors have absolute priority to their collateral in bankruptcy procedures? Yes During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No Does the law authorize parties to agree on out of court enforcement? Yes 37 38 1. Benchmarking Protecting Investors Regulations: United Kingdom is ranked 10 overall for Protecting Investors. Ranking of United Kingdom in Protecting Investors - Compared to good practice and selected economies: 39 The following table shows Protecting Investors data for United Kingdom compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy United Kingdom 8.0 Comparator Economies France 5.3 Germany 5.0 Ireland 8.3 Italy 5.7 Spain 5.0 40 2. Historical data: Protecting Investors in United Kingdom Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 10 10 Strength of investor protection index (0-10) 8.0 8.0 8.0 8.0 3. The following graph illustrates the Protecting Investors index in United Kingdom compared to best practice and selected Economies: 9.7 8.3 8.0 5.7 5.3 5.0 5.0 y d gd ed al y nd ce n an an om ai t It an ni a el Sp m al U Fr Ir Ze er in G ew K N Note: The higher the score, the greater the investor protection. 41 Protecting Investors in United Kingdom The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in the United Kingdom. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 10 3 What corporate body provides legally sufficient approval for the transaction? 2 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 2 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 2 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 1 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 7 2 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? 1 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? 42 1 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) 7 2 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? 1 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 1 Whether the level of proof required for civil suits is lower than that of criminal cases? 0 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 8.0 43 44 1. Benchmarking Paying Taxes Regulations: United Kingdom is ranked 16 overall for Paying Taxes. Ranking of United Kingdom in Paying Taxes - Compared to good practice and selected economies: 45 The following table shows Paying Taxes data for United Kingdom 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 United Kingdom 8 110 37.3 Comparator Economies France 7 132 65.8 Germany 16 215 48.2 Ireland 9 76 26.5 Italy 15 285 68.6 Spain 8 197 56.5 * The following economies are also good practice economies for : Payments (number per year): Qatar 46 2. Historical data: Paying Taxes in United Kingdom Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 15 16 Total tax rate (% profit) 35.7 35.3 35.9 37.3 Payments (number per year) 8 8 8 8 Time (hours per year) 105 105 110 110 3. The following graphs illustrate the Paying Taxes sub indicators in United Kingdom over the past 4 years: 47 Paying Taxes in United Kingdom The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in United Kingdom, 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 Sales tax 1 online 30 15.0% value added filing Tax on insurance 1 5.0% insurance 0.10 contracts premium Environmental tax 1 GPB 40 per weight of 0.10 ton active waste Vehicle tax 1 various depending on 0.10 weight and size of vehicle Municipal business tax 1 various property 1.40 value Fuel Tax 1 included in 1.70 fuel price Labor tax 1 online 45 12.8% (floor gross salaries 10.80 filing of GBP 110 per week) Corporate income tax 1 35 21-29.75% taxable profit 23.10 48 Totals 8 110 37.3 49 50 1. Benchmarking Trading Across Borders Regulations: United Kingdom is ranked 15 overall for Trading Across Borders. Ranking of United Kingdom in Trading Across Borders - Compared to good practice and selected economies: 51 The following table shows Trading Across Borders data for United Kingdom 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 United Kingdom 4 7 950 4 6 1045 Comparator Economies France 2 9 1078 2 11 1248 Germany 4 7 872 5 7 937 Ireland 4 7 1109 4 12 1121 Italy 4 20 1245 4 18 1245 Spain 6 9 1221 7 10 1221 * The following economies are also good practice economies for : Time to export (days): Estonia 52 2. Historical data: Trading Across Borders in United Kingdom Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 18 15 Cost to export (US$ per container) 940 1030 1030 950 Cost to import (US$ per container) 1267 1350 1160 1045 Documents to export (number) 4 4 4 4 Documents to import (number) 4 4 4 4 Time to export (days) 9 9 9 7 Time to import (days) 8 8 8 6 3. The following graphs illustrate the Trading Across Borders sub indicators in United Kingdom over the past 4 years: 53 54 Trading Across Borders in United Kingdom These tables list the procedures necessary to import and export a standardized cargo of goods in United Kingdom. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 2 125 Customs clearance and technical control 1 75 Ports and terminal handling 2 200 Inland transportation and handling 2 550 Totals 7 950 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 2 220 Customs clearance and technical control 1 75 Ports and terminal handling 1 200 Inland transportation and handling 2 550 Totals 6 1045 55 Documents for Export and Import Export Bill of lading Commercial invoice Customs export declaration Packing list Import Bill of lading Commercial invoice Customs import declaration Packing list 56 57 1. Benchmarking Enforcing Contracts Regulations: United Kingdom is ranked 23 overall for Enforcing Contracts. Ranking of United Kingdom in Enforcing Contracts - Compared to good practice and selected economies: 58 The following table shows Enforcing Contracts data for United Kingdom 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 United Kingdom 28 399 23.4 Comparator Economies France 29 331 17.4 Germany 30 394 14.4 Ireland 20 515 26.9 Italy 41 1210 29.9 Spain 39 515 17.2 59 2. Historical data: Enforcing Contracts in United Kingdom Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 23 23 Procedures (number) 30 30 30 28 Time (days) 404 404 399 399 Cost (% of claim) 23.4 23.4 23.4 23.4 3. The following graphs illustrate the Enforcing Contracts sub indicators in United Kingdom over the past 4 years: 60 Enforcing Contracts in United Kingdom This topic looks at the efficiency of contract enforcement in United Kingdom. Nature of Procedure (2010) Indicator Procedures (number) 28 Time (days) 399 Filing and service 30.0 Trial and judgment 313.0 Enforcement of judgment 56.0 Cost (% of claim)* 23.40 Attorney cost (% of claim) 19.6 Court cost (% of claim) 2.6 Enforcement Cost (% of claim) 1.2 61 Court information: Central London County Court * Claim assumed to be equivalent to 200% of income per capita. 62 63 1. Benchmarking Closing Business Regulations: United Kingdom is ranked 7 overall for Closing a Business. Ranking of United Kingdom in Closing Business - Compared to good practice and selected economies: 64 The following table shows Closing Business data for United Kingdom 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 United Kingdom 88.6 1.0 6 Comparator Economies France 45.2 1.9 9 Germany 53.1 1.2 8 Ireland 87.4 0.4 9 Italy 58.0 1.8 22 Spain 76.3 1.0 11 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 65 2. Historical data: Closing Business in United Kingdom Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 9 7 Time (years) 1.0 1.0 1.0 1.0 Cost (% of estate) 6 6 6 6 Recovery rate (cents on the dollar) 84.6 84.2 84.2 88.6 3. The following graphs illustrate the Closing Business sub indicators in United Kingdom 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. Germany Germany eased business start-up by increasing the efficiency of communications between the notary and the commercial registry and eliminating the need to publish an announcement in a newspaper. Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Italy Italy made starting a business easier by enhancing an online registration system. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals. Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank's public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. Spain Spain streamlined the documentation for imports by including tax-related information on its single administrative document. Spain amended its regulations governing insolvency proceedings with the aim of reducing the cost and time. The new regulations also introduced out-of-court workouts. Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate. United Kingdom The United Kingdom improved the process for enforcing contracts by modernizing civil procedures in the commercial court. Amendments to the United Kingdom's insolvency rules streamline bankruptcy procedures, favor the sale of the firm as a whole and improve the calculation of administrators' fees. 68 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