Ayiti Fè Biznis 2017: Pwofil Ekonomi

Haiti Doing Business 201 7 Economy Profile 201 7 Haiti Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized 2 Haiti Doing Business 2 01 7 © 2017 International Bank for Reconstruction and Development / The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202 - 473 - 1000; Internet: www.worldbank.org Some rights reserved 1 2 3 4 19 18 17 16 This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclus ions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the gover nments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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ISBN (paper): 978 - 1 - 4648 - 0948 - 4 ISBN (electronic): 978 - 1 - 4648 - 0984 - 2 DOI: 10.1596/978 - 1 - 4648 - 0948 - 4 ISSN: 1729 - 2638 COVER DESIGN: CORPOR ATE VISIONS, INC. 3 Haiti Doing Business 2 01 7 CONTENTS Introduction ................................ ................................ ................................ ................................ .. 4 Starting a business ................................ ................................ ................................ ..................... 17 D ealing with conustruction permits ................................ ................................ ........................ 25 Getting electricity ................................ ................................ ................................ ....................... 37 R egistering property ................................ ................................ ................................ .................. 45 Getting credit ................................ ................................ ................................ .............................. 56 Protecting minority investors ................................ ................................ ................................ ... 61 Paying t axes ................................ ................................ ................................ ................................ 68 T rading across borders ................................ ................................ ................................ .............. 73 E nforcing contracts ................................ ................................ ................................ .................... 80 Resolving insolvency ................................ ................................ ................................ .................. 87 L abor market regulation ................................ ................................ ................................ ........... 91 Distance to frontier and ease of doing business ranking ................................ ...................... 97 Resources on the Doing Business website ................................ ................................ ............ 100 4 Haiti Doing Business 2 01 7 INTRODUCTION Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium - size business when complying with relevant regulations. It measures and tracks cha nges in regulations affecting 11 are as in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts , resolving insol vency and labor market regulation . Doing Business 201 7 presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business . In a series of annual reports Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 190 economies, fro m Afghanistan to Zimbabwe, over time. The data set covers 4 8 economies in Sub - Saharan Africa, 32 in Latin America and the Caribbean, 25 in East Asia and the Pacific, 2 5 in Eastern Europe and Central Asia, 20 in the Middle East and North Africa and 8 in Sou th Asia, as well as 3 2 OECD high - income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why . This economy profile presents the Doing Business indicators for Haiti . To allow useful comparison , it also provides data for other selected economies (comparator economies) for each indicator. The data in this report are current as of June 1, 201 6 (except for the paying taxes indicators, which cover the period January – December 201 5 ) . The Doing Busine ss 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 and getting electricity), the security of prop erty from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions — are not directly studied by Doing Business . 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; th ey also help identify the source of those obstacles, supporting policy makers in designing regulatory reform. More information is available in the full report. Doing Business 201 7 presents the indicators, analyzes their relationship with economic outcomes and presents business regulatory reforms. The data, along with information on ordering Doing Business 201 7 , are available on the Doing Business website at http://www.doingbusiness.org . 5 Haiti Doing Business 2 01 7 CHANGES IN DOING BUSINESS 201 7 As part of a three - year update in m ethodology, Doing Business 201 7 expands further by adding postfiling processes to the paying taxes indicator, including a gender component in three of the indicators and developing a new pilot indicator on selling to the government. Also, for the first tim e this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190 . The paying taxes indicator is expanded this year to include postfiling processes – those processes that occur after a firm complies with its regula r tax obligations. These include tax refunds, tax audits and tax appeals. In particular, Doing Business measures the time it takes to get a value added tax (VAT) refund, deal with a simple mistake on a corporate tax return that can potentially trigger an a udit and good practices with administrative appeals process. This year’s Doing Business report presents a gender dimension in four of the indicator sets: starting a business, registering property, enforcing contracts and labor market regulation. Three o f these areas are included in the distance to frontier score and in the ease of doing business ranking, while the fourth — labor market regulation — is not. Doing Business has traditionally assumed that the entrepreneurs or workers discussed in the case studie s were men. This was incomplete by not reflecting correctly the Doing Business processes as applied to women — which in some economies may be different from the processes applied to men. Starting this year, Doing Business measures the starting a business pro cess for two case scenarios: one where all entrepreneurs are men and one where all entrepreneurs are women. In economies where the processes are more onerous if the entrepreneur is a woman, Doing Business now counts the extra procedures applied to roughly half of the population that is female (for example, obtaining a husband’s consent or gender - specific requirements for opening a personal bank account when starting a business). Within the registering property indicators, a gender component has been added t o the quality of land administration index. This component measures women’s ability to use, own, and transfer property according to the law. Finally, within the enforcing contracts indicator set, economies will be scored on having equal evidentiary weight of women’s testimony in court. Also for the first time this year Doing Business collects data on Somalia, bringing the total number of economies covered to 190. For more details on the changes, see the “ ”Old and new factors covered in Doing Business ” se ction in the Overview chapter starting on page 1 of the Doing Business 201 7 report. For more details on the data and methodology, please see the “Data Notes” chapter starting on page 11 4 of the Doing Business 201 7 report . For more details on the distance to frontier metric, please see the “Distance to frontier and ease of doing business ranking” chapter in this profile . 6 Haiti Doing Business 2 01 7 THE BUSINESS ENVIRON MENT For policy makers trying to improve their economy’s regulatory environment for business, a go od place to start is to find out how it compares with the regulatory environment in other economies. Doing Business provides an aggregate ranking on the ease of doing business based on indicator sets that measure and benchmark regulations applying to domes tic small to medium - size businesses through their life cycle. Economies are ranked from 1 to 1 90 by the ease of doing business ranking . Doing Business presents results for 2 aggregate measures: the distance to frontier score and the ease of doing business ranking. The ranking of economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 t he frontier. ( S ee the chapter on the distance to frontier and ease of doing business ) . The ease of doing business ranking compares economies with one another; the distance to frontier score benchmarks economies with respect to regulatory best practice, sh owing the absolute distance to the best performance on each Doing Business indicator. When compared across years, the distance to frontier score shows how much the regulatory environment for local entrepreneurs in an economy has changed over time in absolu te terms, while the ease of doing business ranking can show only how much the regulatory environment has changed relative to that in other economies. T he 10 topics included in the ranking in Doing Business 201 7 : starting a business, dealing with construc tion permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency . The labor market regulation indicators are not included in this year ’s aggregate ease of doing business ranking, but the data are presented in the economy profile . ECONOMY OVERVIEW Region : Latin America & Caribbean Income category : Low income Population : 10,711,067 GNI per capita (US$) : 820 DB201 7 rank : 181 DB201 6 ran k : 180 * Change in ran k : - 1 DB 2017 DTF: 38.66 DB 2016 DTF: 38.51 Change in DTF: 0.15 * DB201 6 ranking shown is not last year’s published ranking but a comparable ranking for DB201 6 that captures the effects of such factors as data revisions and the change s in methodology . See the data notes starting on page 11 4 of the Doing Business 2017 report for sources and definitions . Haiti Doing Business 201 7 THE BUSINESS ENVIRON MENT Figure 1. 1 Where economies stand in the global ranking on the ease of doing business Source: Doing B usiness database. Haiti Doing Business 201 7 THE BUSINESS ENVIRON MENT For policy makers, knowing where their economy stands in the aggregate ranking on the ease of doing business is useful. Also useful is to know how it ranks relative to comparator economies and relative to the re gional average (figu re 1. 2 ). The economy’s rankings (figure 1. 3 ) and distance to frontier scores (figure 1. 4 ) on the topics included in the ease of doing business ranking provide another persp ective. Figure 1. 2 How Haiti and comparator economies rank on the ease of doing business Note: The rankings are benchmarked to June 2016 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchma rks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst perfor mance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population - weighted average for the 2 cities. Source: Doing Business database. 9 Haiti Doing Business 2 01 7 THE BUSINESS ENVIRON MENT Figure 1. 3 Rankings on Doing Business topics - Haiti ( S cale: Rank 1 9 0 center, Rank 1 outer edge) Figure 1. 4 Distance to frontier scores on Doing Business topics - Haiti ( S cale: Score 0 center, Score 100 outer edge) Source: Doing Business database. Note: The rankings are benchmarked to June 201 6 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the fronti er. For the economies for which the data cover 2 cities, scores are a population - weighted average for the 2 cities. 10 Haiti Doing Business 2 01 7 THE BUSINESS ENVIRON MENT Just as the overall ranking on the ease of doing business tells only part of the story, so do changes in that ranking. Yearly movements in rankings can provide some indication o f changes in an economy’s regulatory environment for firms, but they are always relative. Moreover, year - to - year changes in the overall rankings do not reflect how the business regulatory environment in an economy has changed over time — or how it has chang ed in different areas. To aid in assessing such changes, Doing Business introduce d the distance to frontier score . This measure shows how far on average an economy is from the best performance achieved by any economy on each Doing Business indicator . Comp aring the measure for an economy at 2 points in time allows users to assess how much the economy’s regulatory environment as measured by Doing Business has changed over time — how far it has moved toward (or away from) the most efficient practices and strong est regulations in areas covered by Doing Business (figure 1. 5 ). Figure 1. 5 How far has Haiti come in the areas measured by Doing Business ? Note : The distance to frontier score shows how far on average an economy is from the best performance achieve d by any economy on each Doing Business indicator. Starting a business is comparable to 2010. Getting credit, protecting minority investors, paying taxes and resolving insolvency had methodology changes in 2014 and thus are only comparable to 2013. Deali ng with construction permits, registering property, trading across borders, enforcing contracts and getting electricity had methodology changes in 2015 and thus are only comparable to 2014 . The measure is normalized to range between 0 and 100, with 100 rep resenting the best performance (the frontier). See the data notes starting on page 11 4 of the Doing Business 201 7 report for more details on the distance to frontier score . Source: Doing Business database . 11 Haiti Doing Business 2 01 7 THE BUSINESS ENVIRON MENT The absolute values of t he indicators tell another part of the story (table 1.1). The indicators, on their own or in comparison with the indicators of a good practice economy or those of comparator economies in the region , may reveal bottlenecks reflected in large numbers of proc edures, long delays or high costs. Or they may reveal unexpected strengths in an area of business regulation — such as a regulatory process that can be completed with a small number of procedures in a few days and at a low cost. Comparison of the economy’s i ndicators today with those in the previous year may show where substantial bottlenecks persist — and where they are diminishing. Table 1.1 Summary of Doing Business indicators for Haiti Indicator Haiti DB2017 Haiti DB2016 Dominican Republic DB2017 Guyan a DB2017 Jamaica DB2017 Mexico DB2017 Puerto Rico (U.S.) DB2017 Suriname DB2017 Best performer globally DB2017 Starting a Business (Rank) 188 189 115 99 12 93 51 185 1 (New Zealand) Starting a Business (DTF Score) 33.61 33.53 83.34 85.45 95.61 85.74 91.2 3 47.82 99.96 (New Zealand) Procedure – Men (number) 12.0 12.0 7.0 7.0 2.0 7.8 6.0 13.0 1.0 (New Zealand) Time – Men (days) 97.0 97.0 14.5 18.0 10.0 8.4 5.5 84.0 0.5 (New Zealand) Cost – Men (% of income per capita) 219.3 235.3 16.3 10.7 4.3 17.8 1.3 10 1.4 0.0 (Slovenia) Procedure – Women (number) 12.0 12.0 7.0 7.0 2.0 7.8 6.0 14.0 1.0 (New Zealand) Time – Women (days) 97.0 97.0 14.5 18.0 10.0 8.4 5.5 85.0 0.5 (New Zealand) Cost – Women (% of income per capita) 219.3 235.3 16.3 10.7 4.3 17.8 1.3 101.4 0.0 (Slovenia) Paid - in min. capital (% of income per capita) 15.5 16.7 36.5 0.0 0.0 0.0 0.0 0.3 0.0 (127 Economies*) Dealing with Construction Permits 166 166 45 148 75 83 131 112 1 (New Zealand) 12 Haiti Doing Business 2 01 7 Indicator Haiti DB2017 Haiti DB2016 Dominican Republic DB2017 Guyan a DB2017 Jamaica DB2017 Mexico DB2017 Puerto Rico (U.S.) DB2017 Suriname DB2017 Best performer globally DB2017 (Rank) Dealing with Construction Permits (DTF Score) 53. 76 52.86 75.20 59.28 71.15 69.79 62.17 66.43 87.40 (New Zealand) Procedures (number) 12.0 12.0 13.0 15.0 17.0 13.0 20.0 10.0 7.0 (4 Economies*) Time (days) 80.0 80.0 184.0 188.0 129.5 86.4 165.0 223.0 28.0 (Korea, Rep.) Cost (% of warehouse value) 14.9 15.7 1.7 0.6 0.8 9.8 6.2 0.2 0.1 (Trinidad and Tobago) Building quality control index (0 - 15) 5.0 5.0 13.0 4.0 10.0 11.7 12.0 6.5 15.0 (Luxembourg*) Getting Electricity (Rank) 139 139 148 129 101 98 65 84 1 (Korea, Rep.) Getting Electricity (DTF Score) 5 4.82 55.04 52.18 58.46 68.00 68.32 76.55 71.51 99.88 (Korea, Rep.) Procedures (number) 4.0 4.0 7.0 8.0 7.0 6.8 5.0 4.0 3.0 (15 Economies*) Time (days) 60.0 60.0 67.0 82.0 95.0 100.4 32.0 113.0 18.0 (Korea, Rep.*) Cost (% of income per capita) 3708.5 363 9.1 267.1 404.6 231.6 336.7 354.1 484.4 0.0 (Japan) Reliability of supply and transparency of tariff index (0 - 8) 0.0 0.0 0.0 4.0 6.0 6.2 4.0 4.0 8.0 (26 Economies*) Registering Property (Rank) 180 180 82 122 123 101 153 176 1 (New Zealand) Registering P roperty (DTF Score) 32.10 32.00 65.61 54.31 53.70 61.05 47.29 37.52 94.46 (New Zealand) Procedures (number) 5.0 5.0 6.0 6.0 8.0 7.7 8.0 6.0 1.0 (4 Economies*) 13 Haiti Doing Business 2 01 7 Indicator Haiti DB2017 Haiti DB2016 Dominican Republic DB2017 Guyan a DB2017 Jamaica DB2017 Mexico DB2017 Puerto Rico (U.S.) DB2017 Suriname DB2017 Best performer globally DB2017 Time (days) 312.0 312.0 45.0 75.0 18.0 42.1 191.0 106.0 1.0 (3 Economies*) Cost (% of property value) 7.0 7.1 3.5 4.6 9.8 5.2 1.2 13.7 0.0 (Saudi Arabia) Quality of the land administration index (0 - 30) 2.5 2.5 14.5 7.5 14.0 16.3 14.0 10.0 29.0 (Singapore) Getting Credit (Rank) 175 174 101 82 16 5 7 175 1 (New Zealand) Getting Credit (DTF Score) 10.00 10.00 45.00 50.00 80.00 90.00 85.00 10.00 100.00 (New Zealand) Strength of legal rights index (0 - 12) 2.0 2.0 1.0 3.0 9.0 10.0 10.0 2.0 12.0 (3 Economies*) Depth of credit information index (0 - 8) 0.0 0.0 8.0 7.0 7.0 8.0 7.0 0.0 8.0 (30 Economies*) Credit registry coverage (% of adults) 1.6 1.6 25.2 0.0 0.0 0.0 0.0 0.0 100.0 (3 Economies*) Credit bureau coverage (% of adults) 0.0 0.0 74.9 16.4 23.3 100.0 100.0 0.0 100.0 (23 Economies*) Protecting Minority Investors (Rank) 188 188 87 87 63 53 87 165 1 (New Zealand*) Protecting Minority Investors (DTF Score) 20.00 20.00 53.33 53.33 58.33 60.00 53.33 35.00 83.33 (New Zealand*) Strength of minority investor protection index (0 - 10) 2.0 2.0 5.3 5.3 5.8 6.0 5.3 3.5 8.3 (New Zealand) Extent of conflict o f interest regulation index (0 - 10) 3.0 3.0 5.3 6.0 5.7 6.0 7.0 2.3 9.3 (New Zealand) Extent of shareholder governance index (0 - 1.0 1.0 5.3 4.7 6.0 6.0 3.7 4.7 8.3 (Norway) 14 Haiti Doing Business 2 01 7 Indicator Haiti DB2017 Haiti DB2016 Dominican Republic DB2017 Guyan a DB2017 Jamaica DB2017 Mexico DB2017 Puerto Rico (U.S.) DB2017 Suriname DB2017 Best performer globally DB2017 10) Paying Taxes (Rank) 159 158 129 136 116 114 135 103 1 (United Arab Emirates) Paying Taxes (DTF Score) 53.1 53.1 60.7 59.27 65.18 65.81 59.82 69.44 99.44 (United Arab Emirates) Payments (number per year) 47.0 47.0 7.0 35.0 11.0 6.0 16.0 30.0 3.0 (Hong Kong SAR, China*) Time (hours per year) 184.0 184.0 317.0 256.0 268.0 286.0 218. 0 199.0 55.0 (Luxembourg) Total tax rate (% of profit) 40.3 40.3 42.4 32.3 34.3 52.0 62.3 27.9 26.1 (32 Economies*) Postfiling index (0 - 100) 26.8 14.1 31.0 19.5 41.4 48.4 98.5 (Estonia) Trading across Borders (Rank) 76 77 58 135 131 61 62 78 1 (10 Eco nomies*) Trading across Borders (DTF Score) 76.69 76.08 83.51 59.33 60.70 82.09 81.86 75.02 100.00 (10 Economies*) Time to export: Border compliance (hours) 28 28 16 72 58 20 48 84 0 (18 Economies*) Cost to export: Border compliance (USD) 368 368 488 37 8 876 400 386 468 0 (18 Economies*) Time to export: Documentary compliance (hours) 22 24 10 200 47 8 2 12 1 (25 Economies*) Cost to export: Documentary compliance (USD) 48 48 15 78 90 60 75 40 0 (19 Economies*) Time to import: Border compliance (hours) 83 91 24 84 80 44 48 48 0 (25 Economies*) 15 Haiti Doing Business 2 01 7 Indicator Haiti DB2017 Haiti DB2016 Dominican Republic DB2017 Guyan a DB2017 Jamaica DB2017 Mexico DB2017 Puerto Rico (U.S.) DB2017 Suriname DB2017 Best performer globally DB2017 Cost to import: Border compliance (USD) 583 583 579 265 906 450 386 658 0 (28 Economies*) Time to import: Documentary compliance (hours) 28 30 14 156 72 18 2 24 1 (29 Economies*) Cost to import: Documentary comp liance (USD) 150 150 40 63 90 100 75 40 0 (30 Economies*) Enforcing Contracts (Rank) 123 123 131 91 117 40 97 187 1 (Korea, Rep.) Enforcing Contracts (DTF Score) 52.49 52.49 51.03 57.62 53.60 67.01 56.13 25.94 84.15 (Korea, Rep.) Time (days) 530.0 530.0 505.0 581.0 550.0 340.7 630.0 1715.0 164.0 (Singapore) Cost (% of claim) 42.6 42.6 40.9 25.2 45.6 33.0 25.6 37.1 9.0 (Iceland) Quality of judicial processes index (0 - 18) 7.0 7.0 5.5 7.0 8.5 10.1 7.0 3.5 15.5 (Australia) Resolving Insolvency (Rank) 169 169 160 154 38 30 9 129 1 (Finland) Resolving Insolvency (DTF Score) 0.00 0.00 23.55 25.55 69.15 73.11 84.84 34.14 93.89 (Finland) Recovery rate (cents on the dollar) 0.0 0.0 8.9 18.4 64.6 69.1 70.5 8.3 92.9 (Norway) Time (years) no practice no practice 3.5 3.0 1.1 1.8 2.5 5.0 0.4 (22 Economies*) Cost (% of estate) no practice no practice 38.0 28.5 18.0 18.0 11.0 30.0 1.0 (22 Economies*) Strength of insolvency framework index (0 - 16) 0.0 0.0 6.0 5.0 11.0 11.5 15.0 9.5 15.0 (6 Economies*) Source: Doing Business database. 16 Haiti Doing Business 2 01 7 Note: DB201 6 rankings shown are not last year’s published rankings but comparable rankings for DB201 6 that capture the effects of such factors as data revisions and changes to the methodology. The global best performer on time for paying taxes is defined as the lowest time recorded among all economies in the DB201 7 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory contributions, and VAT or sales tax. If an economy has no laws or regulations covering a specific are a — for example, insolvency — it receives a “no practice” mark. Similarly, an economy receives a “no practice” mark if regulation exists but is never used in practice or if a competing regulation prohibits such practice. Either way, a “no practice” mark puts t he economy at the bottom of the ranking on the relevant indicator. * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the number of economies th at share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org). 17 Haiti Doing Business 2 01 7 STARTING A BUSINESS Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can o utlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registra tion easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government. What do the indicators cover? Doing Business records all procedures officially required, or commonly done in pract ice, for an entrepreneur to start up and formally operate an industrial or commercial business, as well as the time and cost to complete these procedures and the paid - in minimum capital requirement. These procedures include obtaining all necessary licenses and permits and completing any required notifications, verifications or inscriptions for the company and employees with relevant authorities. The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier s cores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators . 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. Assumptions about the business:  Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability comp any in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office .  Operates in the economy ’s largest business city. For 11 econo mies the data are also collected for the second largest business city . WHAT THE STARTING A BUSINESS INDICATORS MEASURE Proc edures to legally start and operate a company (number) Preregistration (for example, name verification or reservation, notarization) Registration in the economy’s largest business city 1 Postregistration (for example, social security registration, company s eal) Obtaining approval from spouse to start a business, to leave the home to register the company or open a bank account. Obtaining any gender specific document for company registration and operation, national identification card or opening a bank account . 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 that can be fully completed online are recorded as ½ day. Procedure 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 us ed in practice Paid - in minimum capital (% of income per capita) Deposited in a bank or with a notary before registration (or within 3 months)  The size of the entire office space is approximately 929 square meters (10,000 square feet). 18 Haiti Doing Business 2 01 7  Is 100% domestically owned and has five owners, none of whom is a legal entity .  Has start - up capital of 10 times income per capita  Performs general industrial or commercial activities, such as the production or sale to the public of products or services. 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 is not using heavily polluting pr oduction processes .  Leases the commercial plant or offices and is not a proprietor of real estate.  The amount of the annual lease for the office space is equivalent to 1 times income per capita.  Does not qualify f or investment incentives or any special benefits.  Has at least 10 and up to 50 employees one month after the commencement of operations, all of them domestic nationals.  Has a turnover of at least 100 times income per capita.  Has a company deed 10 pages lo ng The owners:  Have reached the legal age of majority and are capable of making decisions as an adult. 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, the marriage is monogamous and registered with the authorities.  W here the answer differs 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. 19 Haiti Doing Business 2 01 7 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in Haiti ? According to data collected by Doing Business , starting a business there requires 12.0 procedure s , takes 97.0 days, costs 219.3 % of income per capita for men, and requires 12.0 procedures , takes 97.0 days, costs 219.3 % of income per capita for women. A requirement of paid - in minimum capital of 15.5 % of income per capita (figure 2.1) is legally mand atory for both men and women . Most indicator sets refer to a case scenario in the largest business city of an economy, except for 11 economies for which the data are a population - weighted average of the 2 largest business cities. See the chapter on distanc e to frontier and ease of doing business ranking at the end of this profile for more details. Figure 2.1 What it takes to start a business in Haiti Paid - in minimum capital (% of income per capita): 15.5 Source: Doing Business database. Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the starting a business indicators, see the Doing Business website (http://www .doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. Procedures in light b lue for married women only. 20 Haiti Doing Business 2 01 7 STARTING A BUSINESS Globally, Haiti stands at 188 in the ranking of 1 90 economies on the ease of starting a business (figure 2.2). The rankings for comparator economies and the regional average ranking provide other useful information for assessing how easy it is for an entrepreneur in Haiti to start a business. Figure 2.2 How Haiti and comparato r economies rank on the ease of starting a business Source: Doing Business database . 21 Haiti Doing Business 2 01 7 STARTING A BUSINESS Economies around the world have taken steps making it easier to start a business — streamlining procedures by setting up a one - stop shop, making proc edures simpler or faster by introducing technology and reducing or eliminating minimum capital requirements. Many have undertaken business registration reforms in stages — and they often are part of a larger regulatory reform program. Among the benefits have been greater firm satisfaction and savings and more registered businesses, financial resources and job opportunities. What business registration reforms has Doing Business recorded in Haiti (table 2. 1 )? Table 2. 1 How has Haiti made starting a business e asier — or not? By Doing Business report year from DB2011 to DB2017 DB year Reform DB2011 Haiti eased business start - up by eliminating the review by the president’s or the prime minister’s office of the incorporation act submitted for publication. Sourc e: Doing Business database. Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports for these years, available at http://www.doingbusiness.org. 22 Haiti Doing Business 2 01 7 STARTING A BUSINESS What are the details? Underlying the indicator s shown in this chapter for Haiti is a set of specific procedures — the bureaucratic and legal steps that an entrepreneur must complete to incorporate and register a new firm. These are identified by Doing Business through collaboration with relevant local p rofessionals and the study of laws, regulations and publicly available information on business entry in that economy. Following is a detailed summary of those procedures, along with the associated time and cost. These procedures are those that apply to a c ompany matching the standard assumptions (the “standardized company”) used by Doing Business in collecting the data (see the section in this chapter on what the indicators measure). STANDARDIZED COMPANY Legal form: Société Anonyme Paid - in minimum cap ital requirement: HTG 6,250 City: Port au Prince Start - up Capital: 10 times GNI per capita Table 2.2 Summary of time, cost and procedures for starting a business in Haiti No. Procedure Time to complete Cost to complete 1 Prepare the company statut es ( Articles and Memorandum of Association) 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. Agency: Lawyer 10 days HTG 30,000 2 Notarize t he company deeds and articles of association 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. Agency: Notary 7 days HTG 15,000 - HTG 25,000 3 Depos it the legally required initial capital in the National Bank and obtain deposit evidence The lawyer deposits the legally required initial capital in the National Bank (Banque Nationale de Credit) and obtains proof of deposit. A certified check need to be used to pay in the National Bank, where proof of payment is provided. Agency: National Bank 1 day no charge 23 Haiti Doing Business 2 01 7 No. Procedure Time to complete Cost to complete 4 Register the statutes with the Direction Générale des Impôts (DGI) The notary pays the registration fees at the Tax Office (DGI) and proof of payment is obtained. Agency: Direction Générale des Impôts (DGI) 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 ) 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 file to the Moniteur for publ ication. 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 office and the Pres idency before they can be published in the Official 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. Agency: Minis try of Commerce and Industry and Le Moniteur (Journal Officiel) 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 ( numero d’identification fiscale - NIF) from the Tax authorities (DGI), pay fees, and obtain certificate of patente The company must file 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"). Agency: DGI 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) 24 Haiti Doing Business 2 01 7 No. Procedure Time to complete Cost to complete * 7 Obtain the “Carte d’Identite Professionelle” from the Ministry of Commerce According to Article 2 of the “Décret du 26 septembre 1960 réglementant l’exercice de la profession de commercant”, all commercia l entities are required to hold a “carte d’identité professionnelle”. After the payment of fees at the DGI and obtaining the business permit ("certificat de patente"), the entrepreneur will obtain the “carte d’identité professionnelle” at the Ministry of C ommerce. Agency: Ministry of Commerce 17 days on average (simultaneous with previous procedure) cost included in procedure 5 * 8 Obtain special commercial books The special commercial books are purchased and prepared by an accountant. Agency: Commerc ial Registry 2 days (simultaneous with previous procedure) HTG 5,000 * 9 Notification to the Labor Ministry about hiring Companies must submit a declaration on the hiring of personnel to the Labor Direction within 8 days of opening. Agency: Labor Mini stry 1 day (simultaneous with previous procedure) no charge * 10 Legalize the commercial books Books are legalized by the Dean of the first instance court (Doyen du Tribunal). Each page must be sealed by the Dean of the civil court and the books must b e sealed at the DGI (Direction Generale des Impots). Agency: Court 7 days (simultaneous with previous procedure) HTG 1,000 * 11 Register for social security (OFATMA) The company must register with the Insurance Office 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). Agency: Insurance Office 1 day (simultaneous with previous procedure) no charge 25 Haiti Doing Business 2 01 7 No. Procedure Time to complete Cost to complete * 12 Register for Retirement Insurance Office (ONA) The company must register with the Retirement Insurance Office (ONA) within 15 days of opening and provide the name of all its employees. Agency: Retirement Office 1 day (simultaneous with previous procedure) no charge * Takes place simultaneously with another procedure. Source: Doing Business database. Note: Online procedures account for 0.5 days in the total time calculation. Procedures in light b lue for married women only. 26 Haiti Doing Business 2 01 7 DEALING WITH CON STRUCTION PERMITS Regulation of construction is critical to protect the public. But it needs to be efficient, to avoid excessive constraints on a sector that plays an important part in every economy. Where complying with building regulations is excessive ly costly in time and money, many builders opt out. They may pay bribes to pass inspections or simply build illegally, leading to hazardous construction that puts public safety at risk. Where compliance is simple, straightforward and inexpensive, everyone is better off. What do the indicators cover? Doing Business records all procedures required for a business in the construction industry to build a warehouse along with the time and cost to complete each procedure. In addition, the building quality control index evaluates the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The ranking of economies on the ease of dealing with construction per mits 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 . To make the data comparable across economies , several assumptions about the construction company, the warehouse project and the utility connections are used. Assumptions about the construction company The construction company (BuildCo):  Is a limited liability company (or its legal equivalent).  O perates 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 five owners, none of whom is a legal entity.  Is fully licensed and insured t o carry out construction projects, such as building warehouses.  Has 60 builders and other employees, all of them nationals with the technical expertise and WHAT THE DEALING WITH CONSTRUCTION PERMITS INDICATORS MEASUR E 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 proce dures that can be fully completed online are an exception to this rule Procedure 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 br ibes Building quality c ontrol 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) Liabi lity and insurance regimes (0 - 2) Professional certifications (0 - 4) 27 Haiti Doing Business 2 01 7 professional experience necessary to obtain construction permits and approvals.  Has a licensed arc hitect 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.  Has paid all taxe s and taken out all necessary insurance applicable to its general business activity (for example, accidental insurance for construction workers and third - person liability).  Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Assumptions about the warehouse The warehouse:  Will be used for general storage activities, such as storage of books or stationery. The warehouse will not be used for any goods requiring special conditions, such as food, chemicals or pha rmaceuticals.  Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high.  Will have road access and be located in the periurban area of the economy’s largest business city (that is, on the fringes of the city but still within its official limits). For 11 economies the data are also collected for the second largest business city.  Will not be located in a special economic or indust rial zone.  Will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo and is accurately registered in the cadastre and land registry.  Is valued at 50 times income per capita.  Will be a new construction (there was no previous construction on the land), with no trees, natural water sources, natural reserves or historic al monuments of any kind on the plot.  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 agenci es, these are counted as procedures.  Will include all technical equipment required to be fully operational.  Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). Assumptions about the utility connectio ns 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 i n the smallest size available will be installed or built.  Will not require water for fire protection reasons; a fire extinguishing system (dry system) will be used instead. If a wet fire protection system is required by law, it is assumed that the water d emand specified below also covers the water needed for fire protection.  Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gall ons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.  Will have a constant level of water demand and wastewater flow throughout the year.  Will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage c onnection. 28 Haiti Doing Business 2 01 7 D EALING WITH CONSTRUC TION PERMITS Where does the economy stand today? What does it take to comply with the formalities to build a warehouse in Haiti ? According to data collected by Doing Business , dealing with construction permits the re requ ires 12.0 procedures, takes 80.0 days and costs 14.9 % of the warehouse val