Economy Profile of Haiti: Doing Business 2018 Indicators

Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Economy Pro le of Haiti Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports , which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business , also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Doing Business 2018 Haiti Page 2 for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports , which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business , also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Haiti Region Latin America & Caribbean Income Category Low income Population 10,847,334 GNI Per Capita (US$) 780 City Covered Port au Prince DB 2018 Rank 190 1 181 DB 2018 Distance to Frontier (DTF) 0 100 38.24 0 100 68.85: Puerto Rico (U.S.) (Rank: 64) 67.27: Jamaica (Rank: 70) 60.93: Dominican Republic (Rank: 99) 58.66: Regional Average (Latin America & Caribbean) 56.28: Guyana (Rank: 126) DB 2018 Distance to Frontier (DTF) Doing Business 2018 Haiti Page 3 aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Haiti Region Latin America & Caribbean Income Category Low income Population 10,847,334 GNI Per Capita (US$) 780 City Covered Port au Prince DB 2018 Rank 190 1 181 DB 2018 Distance to Frontier (DTF) 0 100 38.24 0 100 68.85: Puerto Rico (U.S.) (Rank: 64) 67.27: Jamaica (Rank: 70) 60.93: Dominican Republic (Rank: 99) 58.66: Regional Average (Latin America & Caribbean) 56.28: Guyana (Rank: 126) 38.24: Haiti (Rank: 181) DB 2018 Distance to Frontier (DTF) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Haiti Starting a Business Dealing with Construction Permits Getting Electricity Registering Property Getting Credit Protecting Minority Investors Paying Taxes Trading across Borders Enforcing Contracts Resolving Insolvency 1 28 55 82 109 136 163 190 Rank 189 177 138 180 177 188 147 77 125 168 Distance to Frontier (DTF) on Doing Business topics - Haiti Starting a Business Change:+0.09 Dealing with Construction Permits Change:0.00 Getting Electricity Change:+0.58 Registering Property Change:+0.12 Getting Credit Change:0.00 Protecting Minority Investors Change:0.00 Paying Taxes Change:-0.89 Trading across Borders Change:+0.21 Enforcing Contracts Change:0.00 Resolving Insolvency Change:0.00 0 20 40 60 80 100 DTF 33.70 44.15 55.40 32.22 10.00 20.00 57.55 76.90 52.49 0.00 Starting a Business Doing Business 2018 Haiti Page 4 a Business Change:+0.09 with Construction Permits Change:0.00 Electricity Change:+0.58 Property Change:+0.12 Credit Change:0.00 Minority Investors Change:0.00 Taxes Change:-0.89 across Borders Change:+0.21 Contracts Change:0.00 Insolvency Change:0.00 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers t wo types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information . What the indicators measure P r o c e d u r e s t o l e g a l l y s t a r t a n d o p e r a t e a company (number) Pre-registration (for example, name verification or reservation, notarization) Registration in economy’s largest business city Post-registration (for example, social security registration, company seal) Obtaining approval from spouse to start business or leave home to register company Obtaining any gender-specific permission that can impact company registration, company operations and process of getting national identity card Time required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure starts on a separate day (2 procedures cannot start on the same day) Procedures fully completed online are recorded as ½ day Procedure is considered completed once final document is received No prior contact with officials Cost required to complete each procedure (% of income per capita) Official costs only, no bribes No professional fees unless services required by law or commonly used in practice Paid-in minimum capital (% of income per capita) Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Case study assumptions To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. The business: - Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the most common among domestic rms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical o ce. - Operates in the economy’s largest business city and the entire o ce space is approximately 929 square meters (10,000 square feet). For 11 economies the data are also collected for the second largest business city. - Is 100% domestically owned and has ve owners, none of whom is a legal entity; and has a start-up capital of 10 times income per capita and has a turnover of at least 100 times income per capita. - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It does not use heavily polluting production processes. - Leases the commercial plant or o ces and is not a proprietor of real estate and the amount of the annual lease for the o ce space is equivalent to 1 times income per capita. - Does not qualify for investment incentives or any special bene ts. - H a s a t l e a s t 1 0 a n d u p t o 5 0 e m p l o y e e s o n e m o n t h a f t e r t h e commencement of operations, all of whom are domestic nationals. - Has a company deed 10 pages long. The owners: - Have reached the legal age of majority. If there is no legal age of majority, they are assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. - Are married and the marriage is monogamous and registered with the authorities. - Where the answer di ers according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Standardized Company Doing Business 2018 Haiti Page 5 before registration or up to 3 months after incorporation is legal plurality), the answer used will be the one that applies to the majority of the population. Standardized Company Legal form Société Anonyme Paid-in minimum capital requirement HTG 6,250 City Covered Port au Prince Indicator Haiti Latin America & Caribbean OECD high income Overall Best Performer Procedure – Men (number) 12 8.4 4.9 1.00 (New Zealand) Time – Men (days) 97 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 200.2 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 12 8.5 4.9 1.00 (New Zealand) Time – Women (days) 97 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 200.2 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 14.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Haiti and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 97.30: Jamaica (Rank: 5) 91.29: Puerto Rico (U.S.) (Rank: 47) 85.55: Guyana (Rank: 92) 83.23: Dominican Republic (Rank: 116) 78.09: Regional Average (Latin America & Caribbean) 33.70: Haiti (Rank: 189) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Haiti – Procedure, Time and Cost 40 60 80 Time (days) 20 30 40 50 60 70 80 ost (% of income per capita) Time Cost Doing Business 2018 Haiti Page 6 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Haiti – Procedure, Time and Cost Procedures (number) 1 2 3 4 5 * 6 * 7 * 8 * 9 * 10 * 11 * 12 0 20 40 60 80 Time (days) 0 10 20 30 40 50 60 70 80 Cost (% of income per capita) Time Cost * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website ( http://www.doingbusiness.org/methodology ). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Haiti – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Prepare the company's articles and memorandum of association Agency : Lawyer The lawyer charges approximately HTG 30,000 for the drafting of the company statutes in the case of a Société Anonyme. Prices can vary depending on the lawyer. 10 days HTG 30,000 2 Notarize the company deeds and articles of association Agency : Notary The notary public must hand-write and notarize the documents at a fee of between HTG 15,000 and HTG 25,000 depending on the complexity of the service. 7 days HTG 15,000 - HTG 25,000 3 Deposit the legally required initial capital in the National Bank and obtain deposit evidence Agency : National Bank The lawyer deposits the legally required initial capital in the National Bank (Banque Nationale de Credit) and obtains proof of deposit. A certi ed check need to be used to pay in the National Bank, where proof of payment is provided. 1 day no charge 4 Register the company with the Tax Authorities (Direction Générale des Impôts - DGI) Agency : Tax Authorities (Direction Générale des Impôts - DGI) The notary pays the registration fees at the Tax O ce (DGI) and proof of payment is obtained. 1 day included in the notary fees Doing Business 2018 Haiti Page 7 ( http://www.doingbusiness.org/methodology ). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Haiti – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Prepare the company's articles and memorandum of association Agency : Lawyer The lawyer charges approximately HTG 30,000 for the drafting of the company statutes in the case of a Société Anonyme. Prices can vary depending on the lawyer. 10 days HTG 30,000 2 Notarize the company deeds and articles of association Agency : Notary The notary public must hand-write and notarize the documents at a fee of between HTG 15,000 and HTG 25,000 depending on the complexity of the service. 7 days HTG 15,000 - HTG 25,000 3 Deposit the legally required initial capital in the National Bank and obtain deposit evidence Agency : National Bank The lawyer deposits the legally required initial capital in the National Bank (Banque Nationale de Credit) and obtains proof of deposit. A certi ed check need to be used to pay in the National Bank, where proof of payment is provided. 1 day no charge 4 Register the company with the Tax Authorities (Direction Générale des Impôts - DGI) Agency : Tax Authorities (Direction Générale des Impôts - DGI) The notary pays the registration fees at the Tax O ce (DGI) and proof of payment is obtained. 1 day included in the notary fees 5 Registration with the Commercial Registry at the Ministry of Commerce and Industry and obtain the authorization of operations (Droit de fonctionnement) Agency : Ministry of Commerce and Industry and Le Moniteur (Journal O ciel) Lawyer submits the dossier for registration at the Ministry of Commerce and a request for the ‘avis de fonctionnement’. When the Ministry of Commerce has processed the application and registered the company, it forwards the le to the Moniteur for publication. Firms can begin operations before the publication, as soon as they receive authorization from the Ministry of Commerce. Since May 2009, the company’s articles of incorporation do not need to be approved by the Prime Minister’s o ce and the Presidency before they can be published in the O cial Journal. This process takes about 60 days. The cost depends on the number of pages of the act of constitution: 2 to 9 pages: HTG 5,000 10 to 25 pages: HTG 20,000 26 to x pages: HTG 35,000. 78 days on average HTG 1,500 for registration + HTG 250 (frais de dossier) + HTG 25 (vignette bleue) + HTG 20,000 for publication in Le Moniteur (10-25 pages) 6 Obtain the Tax ID number (Numéro d’identi cation scale - NIF) from the Tax authorities (DGI), pay fees, and obtain the business license (patente) Agency : Tax Authorities (Direction Générale des Impôts - DGI) The company must le a form at the Tax Bureau (DGI) and provide an 15 days (simultaneous with previous procedure) HTG 50 (tax ID card) + 2% of initial capital + 0.3% per share + HTG 102 (droit de fonctionnement) + HTG 5 (taxe carte Doing Business 2018 Haiti Page 8 Applies to women only. Takes place simultaneously with previous procedure. 10 to 25 pages: HTG 20,000 26 to x pages: HTG 35,000. 6 Obtain the Tax ID number (Numéro d’identi cation scale - NIF) from the Tax authorities (DGI), pay fees, and obtain the business license (patente) Agency : Tax Authorities (Direction Générale des Impôts - DGI) The company must le a form at the Tax Bureau (DGI) and provide an opening balance sheet on which corporate taxes will be based. A 2% tax is levied on a corporation’s initial capital, payable annually. A company must pay the “tax on share” (taxe sur action) of 0.3% per share, which will be assessed each year, and a "right of operating" tax (droit de fonctionnement) of HTG 1500 payable annually, and HTG 1500 5 to obtain the professional identity card ("carte d’identite professionelle"). 15 days (simultaneous with previous procedure) HTG 50 (tax ID card) + 2% of initial capital + 0.3% per share + HTG 102 (droit de fonctionnement) + HTG 5 (taxe carte d’identite professionelle) 7 Obtain the Professional ID (Carte d’Identité Professionelle) from the Ministry of Commerce and Industry Agency : Ministry of Commerce and Industry According to Article 2 of the “Décret du 26 septembre 1960 réglementant l’exercice de la profession de commercant”, all commercial entities are required to hold a “carte d’identité professionnelle”. After the payment of fees at the DGI and obtaining the business permit ("certi cat de patente"), the entrepreneur will obtain the “carte d’identité professionnelle” at the Ministry of Commerce. 17 days on average (simultaneous with previous procedure) cost included in procedure 5 8 Obtain special commercial books Agency : Commercial Registry The special commercial books are purchased and prepared by an accountant. 2 days (simultaneous with previous procedure) HTG 5,000 9 Noti cation of employee registration to the Labor Ministry Agency : Labor Ministry Companies must submit a declaration on the hiring of personnel to the Labor Direction within 8 days of opening. 1 day (simultaneous with previous procedure) no charge 10 Legalize the commercial books Agency : Court Books are legalized by the Dean of the rst instance court (Doyen du Tribunal). Each page must be sealed by the Dean of the civil court and the books must be sealed at the DGI (Direction Generale des Impots). 7 days (simultaneous with previous procedure) HTG 1,000 11 Register for social security (OFATMA) Agency : Insurance O ce (O ce d'Assurance Accidents du Travail, Maladie et Maternité - OFATMA) The company must register with the Insurance O ce for Occupational Injury, Sickness, and Maternity (OFATMA) within 15 days of opening and provide the names of all its employees (up to 6% of monthly salary is contributed by the employer to social security). 1 day (simultaneous with previous procedure) no charge 12 Register for Retirement Insurance O ce (ONA) Agency : Retirement O ce (O ce Nationale d'Assurance - ONA) The company must register with the Retirement Insurance O ce (ONA) within 15 days of opening and provide the name of all its employees. 1 day (simultaneous with previous procedure) no charge Doing Business 2018 Haiti Page 9 Applies to women only. Takes place simultaneously with previous procedure. within 15 days of opening and provide the name of all its employees. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Procedures to legally build a warehouse (number) Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates Submitting all required notifications and receiving all necessary inspections Obtaining utility connections for water and sewerage Registering and selling the warehouse after its completion Time required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure starts on a separate day— though procedures that can be fully completed online are an exception to this rule Procedure is considered completed once final document is received No prior contact with officials Cost required to complete each procedure (% of warehouse value) Official costs only, no bribes Building quality control index (0-15) Sum of the scores of six component indices: Quality of building regulations (0-2) Quality control before construction (0-1) Quality control during construction (0-3) Quality control after construction (0-3) Liability and insurance regimes (0-2) Professional certifications (0-4) Case study assumptions To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used. The construction company (BuildCo): - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. The warehouse: - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each oor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Doing Business 2018 Haiti Page 10 Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Procedures to legally build a warehouse (number) Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates Submitting all required notifications and receiving all necessary inspections Obtaining utility connections for water and sewerage Registering and selling the warehouse after its completion Time required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure starts on a separate day— though procedures that can be fully completed online are an exception to this rule Procedure is considered completed once final document is received No prior contact with officials Cost required to complete each procedure (% of warehouse value) Official costs only, no bribes Building quality control index (0-15) Sum of the scores of six component indices: Quality of building regulations (0-2) Quality control before construction (0-1) Quality control during construction (0-3) Quality control after construction (0-3) Liability and insurance regimes (0-2) Professional certifications (0-4) Case study assumptions To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used. The construction company (BuildCo): - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Is 100% domestically and privately owned; has ve owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. The warehouse: - Will be used for general storage activities, such as storage of books or stationery. - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each oor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). The water and sewerage connections: - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Doing Business 2018 Haiti Page 11 and 4 inches in diameter for the sewerage connection. Standardized Warehouse Estimated value of warehouse HTG 2,237,334.50 City Covered Port au Prince Indicator Haiti Latin America & Caribbean OECD high income Overall Best Performer Procedures (number) 14 15.7 12.5 7.00 (Denmark) Time (days) 98 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 21.6 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 5.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Haiti and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.73: Dominican Republic (Rank: 62) 67.22: Jamaica (Rank: 98) 63.59: Regional Average (Latin America & Caribbean) 60.17: Puerto Rico (U.S.) (Rank: 138) 54.66: Guyana (Rank: 163) 44.15: Haiti (Rank: 177) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Haiti – Procedure, Time and Cost Procedures (number) 1 * 2 3 4 5 6 7 8 9 10 11 * 12 13 14 0 20 40 60 80 Time (days) 0 2 4 6 8 10 Cost (% of warehouse value) Time Cost * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Doing Business 2018 Haiti Page 12 component indicators. Figure – Dealing with Construction Permits in Haiti – Procedure, Time and Cost Procedures (number) 1 * 2 3 4 5 6 7 8 9 10 11 * 12 13 14 0 20 40 60 80 Time (days) 0 2 4 6 8 10 Cost (% of warehouse value) Time Cost * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website ( http://www.doingbusiness.org/methodology ). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Haiti and comparator economies – Measure of Quality Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean 0 2 4 6 8 10 12 14 Index score 5.0 13.0 4.0 10.0 12.0 8.8 Details – Dealing with Construction Permits in Haiti – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain a Soil Test Agency : Private Firm The National Building Code of Haiti provides speci cations for the strength of the foundation of buildings to resist seismic activities and shrinkage. Therefore, a soil test is needed to identity the type of soil so that the foundation is solid. 18 days USD 2,100 2 Obtain a topographical map Agency : Private land surveyor The National Building Code of Haiti provides information on the importance of having a topographic map of the land so that it can be preserved. 7 days USD 750 Doing Business 2018 Haiti Page 13 Haiti Dominican Republic Guyana Jamaica Puerto Rico (U.S.) Latin America & Caribbean Details – Dealing with Construction Permits in Haiti – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request and obtain a Soil Test Agency : Private Firm The National Building Code of Haiti provides speci cations for the strength of the foundation of buildings to resist seismic activities and shrinkage. Therefore, a soil test is needed to identity the type of soil so that the foundation is solid. 18 days USD 2,100 2 Obtain a topographical map Agency : Private land surveyor The National Building Code of Haiti provides information on the importance of having a topographic map of the land so that it can be preserved. 7 days USD 750 3 Request building permit Agency : Municipality and the Ministry of Public Works The Ministry of Public Works does not issue the building permit, but studies the le and provides technical advice/approval of the plans. The Engineering Department will merely give its advice on the feasibility of the project. The building permit is issued by the Municipality. According to the law, the building permit fee for a commercial warehouse is HTG 75.00 for the length of the building facing the road multiplied by the number of oors. If the building has 2 sides facing the road, then both sides are taken into account and charged accordingly. However, in practice, this is not followed. The Municipality generally charges between HTG 125.00 -- HTG 175.00 per sq. m. Thus, the fee for the Doing Business case study warehouse would be approximately HTG 150.00 x 1,300.6 sq. m. -- this is called “le droit d’alignement.” BuildCo must submit the following documents when requesting the permit: • Survey plan and title of ownership (3 copies) • Location plan (3 copies) • Facade plan (3 copies) • Construction (foundation, electricity, plumbing) (3 copies) • Speci cations sheet • License of the engineers or Corporate Income Tax (1 copy) – proof that the engineer or the construction company has no outstanding taxes • Letter of Authorization Request (1 copy) 30 days HTG 195,090 4 Obtain site inspection by engineer from the Municipality Agency : Municipality A request is made for a site inspection. The owner or the engineer must be at the site for the inspection. After this inspection and within 15 days, the Municipality will issue a “Bordereau de paiement” to be paid at the tax authority (DGI). If the amount is over HTG 15,000.00, it must be paid by certi ed check. 1 day no charge 5 Pay fees to the Direction Generale des Impots Agency : Direction Generale des Impots Payment is made at the DGI and proof of payment is delivered back to the Municipality. The fees for the building permit are recorded in procedure 1. 15 days no charge Doing Business 2018 Haiti Page 14 authority (DGI). If the amount is over HTG 15,000.00, it must be paid by certi ed check. 5 Pay fees to the Direction Generale des Impots Agency : Direction Generale des Impots Payment is made at the DGI and proof of payment is delivered back to the Municipality. The fees for the building permit are recorded in procedure 1. 15 days no charge 6 Obtain building permit Agency : Municipality Once the application has been reviewed by the Mayor, payment of the alignment rights is made and the proof of payment submitted to the Mayor, and if the le meets all the requirements, the City will issue the building permit. 1 day no charge 7 Receive inspection to verify the set-out and the foundation Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the set-out and the foundation. However in reality, this inspection does not take place. 1 day no charge 8 Receive inspection for the walls and the quality of materials used Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the raising of the walls and the quality of the material used for the construction. However in reality, this inspection does not take place. 1 day no charge 9 Receive inspection for the veri cation of the roof slabs Agency : Municipality By law (art. 1.2.3 of the Building Code) the Municipality must verify the roof slap. However in reality, this inspection does not take place. 1 day no charge 10 Receive nal inspection Agency : Municipality By law (art. 1.2.6 of the Building Code) the Municipality must conduct a nal inspection and then deliver a certi cate of conformity. However, in practice this does not take place. 1 day no charge 11 Obtain the occupancy certi cate Agency : Municipality The certi cate of occupancy is issued after the nal inspection; however in practice it is rarely done. Obtaining the certi cate of conformity is the responsibility of the builder. 7 days no charge 12 Request water connection from the National Direction of Potable Water and Sewage (Direction Nationale de l’Eau Potable et de l'Assainissement- DINEPA) Agency : O ces Régionaux d’Eau Potable et d’Assainissement (OREPA) The water connection is requested directly by the owner, as the contract must be made in the owner's name. 1 day no charge 13 Receive inspection for water connection and cost estimate Agency : O ces Régionaux d’Eau Potable et d’Assainissement (OREPA) The customer service center will process the application and forward it to the technical department, which will then inspect the construction site to prepare a cost estimate of the work for the water connection. 1 day no charge 14 Obtain water connection from the National Direction of Potable Water 21 days USD 2,166 Doing Business 2018 Haiti Page 15 Takes place simultaneously with previous procedure. The water connection is requested directly by the owner, as the contract must be made in the owner's name. 13 Receive inspection for water connection and cost estimate Agency : O ces Régionaux d’Eau Potable et d’Assainissement (OREPA) The customer service center will process the application and forward it to the technical department, which will then inspect the construction site to prepare a cost estimate of the work for the water connection. 1 day no charge 14 Obtain water connection from the National Direction of Potable Water and Sewage (Direction Nationale de l’Eau Potable et de l'Assainissement- DINEPA) Agency : O ces Régionaux d’Eau Potable et d’Assainissement (OREPA) The cost of connection to the water depends on the width of the pipe used. The size of the pipe in the Doing Business case study is assumed to be 1 inch. Therefore the cost is HTG 6,640 (USD 116). And since a septic tank must be installed, the cost of the installation is also included at USD 2,000. 21 days USD 2,166 Details – Dealing with Construction Permits in Haiti – Measure of Quality Answer Score Building quality control index (0-15) 5.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0 Which requirements for obtaining a building permit are clearly speci ed in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents. 0.0 Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0 Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases. 1.0 Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are not always done in practice during construction. 0.0 Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, nal inspection is done by government agency; Final 2.0 Doing Business 2018 Haiti Page 16 Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Haiti – Measure of Quality Answer Score Building quality control index (0-15) 5.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0 Which requirements for obtaining a building permit are clearly speci ed in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents. 0.0 Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0 Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases. 1.0 Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are not always done in practice during construction. 0.0 Quality control after construction index (0-3) 2.0 Is there a nal inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, nal inspection is done by government agency; Final inspection is not required by law. 2.0 Do legally mandated nal inspections occur in practice? (0-1) Final inspection does not always occur in practice. 0.0 Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) No party is held liable under the law. 0.0 Which parties (if any) are required by law to obtain an insurance policy to cover possible structural aws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0 Professional certi cations index (0-4) 0.0 Doing Business 2018 Haiti Page 17 Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 0.0 What are the quali cation requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) University degree in architecture or engineering. 0.0 What are the quali cation requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management. 0.0 Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information . What the indicators measure Procedures to obtain an electricity connection (number) Submitting all relevant documents and obtaining all necessary clearances and permits Completing all required notifications and receiving all necessary inspections Obtaining external installation works and possibly purchasing material for these works Concluding any necessary supply contract and obtaining final supply Time required to complete each procedure (calendar days) Is at least 1 calendar day Each procedure starts on a separate day Does not include time spent gathering information Reflects the time spent in practice, with little follow-up and no prior contact with officials Cost required to complete each procedure (% of income per capita) Official costs only, no bribes Value added tax excluded The reliability of supply and transparency of tari s index (0-8) Duration and frequency of power outages (0–3) Tools to monitor power outages (0–1