59351 Uganda © 2010 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington, DC 20433 Telephone 202-473-1000 Internet www.worldbank.org All rights reserved. 1 2 3 4 08 07 06 05 A copublication of The World Bank and the International Finance Corporation. This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusions expressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. 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ISBN: 978-0-8213-7960-8 E-ISBN: 978-0-8213-8630-9 DOI: 10.1596/978-0-8213-7960-8 ISSN: 1729-2638 Library of Congress Cataloging-in-Publication data has been applied for. Printed in the United States Current features News on the Doing Business project http://www.doingbusiness.org Rankings How economies rank-from 1 to 183 http://www.doingbusiness.org/rankings/ Contents Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004 Introduction and a ranking simulation tool and Aggregate Rankings http://www.doingbusiness.org/reforms/ 5 - Year Measure of Historical data Cumulative Change Customized data sets since DB2004 http://www.doingbusiness.org/custom-query/ Starting a Business Methodology and research Dealing with The methodologies and research papers underlying Doing Business Construction Permits http://www.doingbusiness.org/Methodology/ Registering Property Download reports Access to Doing Business reports as well as subnational and regional Getting Credit reports, reform case studies and customized country and regional profiles Protecting Investors http://www.doingbusiness.org/reports/ Paying Taxes Subnational and regional projects Differences in business regulations at the subnational and regional Trading Across Borders level http://www.doingbusiness.org/subnational-reports/ Enforcing Contracts Law Library Closing a Business Online collection of business laws and regulations relating to business and gender issues Doing Business 2011 http://www.doingbusiness.org/law-library/ Business Reforms http://wbl.worldbank.org/ Local partners More than 8,200 specialists in 183 economies who participate in Doing Business http://www.doingbusiness.org/Local-Partners/Doing-Business/ Business Planet Interactive map on the ease of doing business http://rru.worldbank.org/businessplanet Doing Business 2011 : Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. A set of regulations affecting 9 stages of a business's life are measured: starting a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and identify what reforms have worked, where, and why. The Doing Business methodology has limitations. Other areas important to business such as an economy 's proximity to large markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a specific type of business, generally a local limited liability company operating in the largest business city. Because standard assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in designing reform. The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD high-income economies. The following pages present the summary Doing Business indicators for Uganda. The data used for this economy profile come from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region not only with one another but also with the "good practice" economy for each indicator. The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity to provide good examples of business regulation to other countries. These good -practice economies do not necessarily rank number 1 in the topic or indicator, but they are in the top 10. More information is available in the full report. Doing Business 2011 : Making a Difference for Entrepreneurs presents the indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on ordering the report, are available on the Doing Business website (www.doingbusiness.org). * Except for the Paying Taxes indicator that refers to the period January to December of 2009. Note: 2008-2010 Doing Business data and rankings have been recalculated to reflect changes to the methodology and the addition of new economies (in the case of the rankings). 1 Economy Rankings - Ease of Doing Business Uganda is ranked 122 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business. Uganda - Compared to global good practice economy as well as selected economies: Uganda's ranking in Doing Business 2011 Rank Doing Business 2011 Ease of Doing Business 122 Starting a Business 137 Dealing with Construction Permits 133 Registering Property 150 Getting Credit 46 Protecting Investors 132 Paying Taxes 62 Trading Across Borders 148 Enforcing Contracts 113 Closing a Business 56 2 Summary of Indicators - Uganda Starting a Business Procedures (number) 18 Time (days) 25 Cost (% of income per capita) 94.4 Min. capital (% of income per capita) 0.0 Dealing with Construction Permits Procedures (number) 18 Time (days) 171 Cost (% of income per capita) 1287.8 Registering Property Procedures (number) 13 Time (days) 77 Cost (% of property value) 3.2 Getting Credit Strength of legal rights index (0-10) 7 Depth of credit information index (0-6) 4 Public registry coverage (% of adults) 0.0 Private bureau coverage (% of adults) 1.1 Protecting Investors Extent of disclosure index (0-10) 2 Extent of director liability index (0-10) 5 Ease of shareholder suits index (0-10) 5 Strength of investor protection index (0-10) 4.0 Paying Taxes Payments (number per year) 32 Time (hours per year) 161 Profit tax (%) 23.3 Labor tax and contributions (%) 11.3 Other taxes (%) 1.1 Total tax rate (% profit) 35.7 Trading Across Borders Documents to export (number) 6 Time to export (days) 37 Cost to export (US$ per container) 2780 Documents to import (number) 8 Time to import (days) 34 Cost to import (US$ per container) 2940 3 Enforcing Contracts Procedures (number) 38 Time (days) 490 Cost (% of claim) 44.9 Closing a Business Recovery rate (cents on the dollar) 39.7 Time (years) 2.2 Cost (% of estate) 30 The 5 year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies from Doing Business 2006 to Doing Business 2011. Instead of highlighting which countries currently have the most business friendly environment, this new approach shows the extent to which an economy's regulatory environment for business has changed compared with 5 years ago. This snapshot reflects all cumulative changes in an economy's business regulation as measured by the Doing Business indicators-such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index thanks to new stock exchange rules that tighten disclosure requirements for related -party transactions. This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing Business 2011 0.45 0.40 0.35 Doing business has 0.30 become easier (DB 0.25 change score) 0.20 0.15 0.10 0.05 0.00 Rwanda Malawi Uganda Tanzania Kenya South Africa 6 1. Benchmarking Starting a Business Regulations: Uganda is ranked 137 overall for Starting a Business. Ranking of Uganda in Starting a Business - Compared to good practice and selected economies: 7 The following table shows Starting a Business data for Uganda compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of Min. capital (number) income per (% of income Economies capita) per capita) Denmark* 0.0 New Zealand* 1 1 0.0 Selected Economy Uganda 18 25 94.4 0.0 Comparator Economies Kenya 11 33 38.3 0.0 Malawi 10 39 108.4 0.0 Rwanda 2 3 8.8 0.0 South Africa 6 22 6.0 0.0 Tanzania 12 29 30.9 0.0 * The following economies are also good practice economies for : Procedures (number): Canada Cost (% of income per capita): Slovenia 8 2. Historical data: Starting a Business in Uganda Starting a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 132 137 Procedures (number) 18 18 18 18 Time (days) 28 25 25 25 Cost (% of income per capita) 92.0 100.7 84.4 94.4 Min. capital (% of income per capita) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Starting a Business sub indicators in Uganda over the past 4 years: 9 Starting a Business Summary - Uganda This table summarizes the procedures and costs associated with setting up a business in Uganda. STANDARDIZED COMPANY Legal Form: Private Limited Company City: Kampala Registration Requirements: No: Procedure Time to complete Cost to complete 1 Reservation of a name at the Office of the Registrar 2 UGX 25,000 2 Pay fees at the bank 1 UGX 2,000 3 Obtain five necessary forms from the Uganda Bookshop 1 UGX 5,600 4 Sign the declaration of compliance before a Commissioner for Oaths 1 UGX 6,000 5 Obtain requisition for bank pay-in slip and bank payment advice forms 1 no charge from the Uganda Registration Services Bureau 6 Make payment of registration fees at a given bank 1 no charge 7 File with the Registrar General 1 UGX 179,682 10 8 File with the local office of the Uganda Revenue Authority a personal 3 no charge inquiry form for each director, and a corporate preliminary inquiry form; receive a uniform tax identification number (TID) 9 Apply for corporate tax file number 1 no charge 10 Apply for VAT registration 1 no charge 11 An inspector from URA inspects the business premises 1 no charge 12 Apply for PAYE 1 no charge 13 Obtain application forms for trading license 1 no charge 14 The licensing officer arranges an inspection of the premises and fills 1 no charge out an assessment form. 15 Pay the license fee at the bank. 1 no charge 16 Obtain the trading license 1 UGX 400,000 17 File a form with the National Social Security Fund (NSSF). 4 no charge 18 Make a company seal 2 UGX 225,000 11 Starting a Business Details - Uganda Procedure 1 Reservation of a name at the Office of the Registrar Time to complete: 2 Cost to complete: UGX 25,000 Comment: To reserve a company name, the founder files a company name reservation request at the Office of the Registrar. A clerk conducts an automated search and forwards the application to a staff lawyer. The Registrar reviews the application and, if the application is approved, returns it with the assessment, which the founder takes to the bank. Upon paying the fee ( USH 10,000 for name search & USH 15,000 for name reservation), the founder receives a receipt that is used to complete the name reservation. Procedure 2 Pay fees at the bank Time to complete: 1 Cost to complete: UGX 2,000 Comment: All nontax payments to government agencies must be made at a bank. Procedure 3 Obtain five necessary forms from the Uganda Bookshop Time to complete: 1 Cost to complete: UGX 5,600 Comment: The notary fees range from UAH 30 to UAH 75 at the state notary and from UAH 500 to 800 UAH at the private notary. The exact fee depends on the number of participants for approval, the number of pages and copies of registration documents, and the additional notary fees approved by the Regional (Oblast) Department of Justice. To open a temporary bank account, the founders must submit evidence of their decision to appoint a person with signature authority to execute transactions on this account. The decision should be formalized by a notarized power of attorney. Procedure 4 Sign the declaration of compliance before a Commissioner for Oaths Time to complete: 1 Cost to complete: UGX 6,000 Comment: Form A2, Declaration of compliance with the requirements of the Companies Act, must be commissioned (signed and sealed) before a commissioner for oaths, who is an advocate. The other documents can be witnessed by any other reputable person because they are not an oath. The fees range from UGX 2,000 to UGX 10,000. Procedure 5 Obtain requisition for bank pay-in slip and bank payment advice forms from the Uganda Registration Services Bureau Time to complete: 1 Cost to complete: no charge 12 Comment: Computerized processes reduced the time frame for paying government levies, such as fees for licenses and certificates. The process requires only 30 minutes, down from 4 working days. Procedure 6 Make payment of registration fees at a given bank Time to complete: 1 Cost to complete: no charge Comment: Registration receipts are obtained from the bank where the fees were paid (within 30­40 minutes). Previously, the founder would pay the fee at the bank and then wait for 3 days to pick up the receipts from the Ministry of Justice. Procedure 7 File with the Registrar General Time to complete: 1 Cost to complete: UGX 179,682 Comment: The notary fees range from UAH 30 to UAH 75 at the state notary and from UAH 500 to 800 UAH at the private notary. The exact fee depends on the number of participants for approval, the number of pages and copies of registration documents, and the additional notary fees approved by the Regional (Oblast) Department of Justice. To open a temporary bank account, the founders must submit evidence of their decision to appoint a person with signature authority to execute transactions on this account. The decision should be formalized by a notarized power of attorney. Procedure 8 File with the local office of the Uganda Revenue Authority a personal inquiry form for each director, and a corporate preliminary inquiry form; receive a uniform tax identification number (TID) Time to complete: 3 Cost to complete: no charge Comment: Procedure 9 Apply for corporate tax file number Time to complete: 1 Cost to complete: no charge Comment: Reform. Order No. 1060 of the Cabinet of Ministers of December 28, 1995 was cancelled by Order No. 795 of the Cabinet of Ministers of Ukraine of June 4, 2007. According to the Order No. 369/1105/336 of Ministry of Internal Affairs, Ministry of Finance and Ministry of Economics of October 5, 2007, the cost for regular procedure (5 days) is UAH 81 and for expedited procedure (3 days) is UAH 162. Procedure 10 Apply for VAT registration Time to complete: 1 Cost to complete: no charge Comment: The current threshold for VAT is only for businesses with annual returns of UGX 50 million and above. However, if a company's quarterly returns amount to USH 12.5 million and above, it should register for VAT. Only registered income tax payers may apply for VAT. An inspector from the Uganda Revenue Authority must inspect the business premises before a VAT certificate is issued. Procedure 11 An inspector from URA inspects the business premises 13 Time to complete: 1 Cost to complete: no charge Comment: The notary fees range from UAH 30 to UAH 75 at the state notary and from UAH 500 to 800 UAH at the private notary. The exact fee depends on the number of participants for approval, the number of pages and copies of registration documents, and the additional notary fees approved by the Regional (Oblast) Department of Justice. To open a temporary bank account, the founders must submit evidence of their decision to appoint a person with signature authority to execute transactions on this account. The decision should be formalized by a notarized power of attorney. Procedure 12 Apply for PAYE Time to complete: 1 Cost to complete: no charge Comment: The pay-as-you-earn (PAYE) tax is paid by the employee but collected by the employer. This tax comes into effect later, upon the company becoming operational. Rates are applied depending on the employee's yearly income; for instance, Employees earning below 1,560,000 do not pay PAYE, 10% is taxed on incomes exceeding UGX 1.56 million but not exceeding UGX 2,820,000. The amount increases as the income increases. Procedure 13 Obtain application forms for trading license Time to complete: 1 Cost to complete: no charge Comment: Reform. Order No. 1060 of the Cabinet of Ministers of December 28, 1995 was cancelled by Order No. 795 of the Cabinet of Ministers of Ukraine of June 4, 2007. According to the Order No. 369/1105/336 of Ministry of Internal Affairs, Ministry of Finance and Ministry of Economics of October 5, 2007, the cost for regular procedure (5 days) is UAH 81 and for expedited procedure (3 days) is UAH 162. Procedure 14 The licensing officer arranges an inspection of the premises and fills out an assessment form. Time to complete: 1 Cost to complete: no charge Comment: The trading license is a general business license required for all companies, including service companies. The issuing authority is the municipal authority in the jurisdiction where the business premises are situated. A trading license can be obtained almost instantly, if the necessary documents on the nature of the intended business activities are available and the amount is assessed by the municipality or city council. Standard forms must be completed and submitted with the memorandum and articles of association and the certificate of incorporation. Procedure 15 Pay the license fee at the bank. Time to complete: 1 Cost to complete: no charge Comment: The notary fees range from UAH 30 to UAH 75 at the state notary and from UAH 500 to 800 UAH at the private notary. The exact fee depends on the number of participants for approval, the number of pages and copies of registration documents, and the additional notary fees approved by the Regional (Oblast) Department of Justice. To open a temporary bank account, the founders must submit evidence of their decision to appoint a person with signature authority to execute transactions on this account. The decision should be formalized by a notarized power of attorney. 14 Procedure 16 Obtain the trading license Time to complete: 1 Cost to complete: UGX 400,000 Comment: If it is deemed necessary, the municipal inspectors (health and building) reserve the right to revoke and cancel the trading license. Procedure 17 File a form with the National Social Security Fund (NSSF). Time to complete: 4 Cost to complete: no charge Comment: The National Social Security Fund (NSSF) is governed by the revised laws of Uganda, the National Social Security Fund Act Cap 222. The NSSF is a compulsory saving scheme that covers all employees in the private sector, including nongovernmental organizations and parastatal bodies that are not covered by the government pension scheme. Under the Act, every employer must register the company with the NSSF when it has 5 or more employees and all employees ages 16­35 as NSSF members. This procedure takes 1­7 days. Registration forms for NSSF can now be downloaded from the NSSF website. Procedure 18 Make a company seal Time to complete: 2 Cost to complete: UGX 225,000 Comment: A company seal is mandatory. 15 16 1. Benchmarking Dealing with Construction Permits Regulations: Uganda is ranked 133 overall for Dealing with Construction Permits. Ranking of Uganda in Dealing with Construction Permits - Compared to good practice and selected economies: 17 The following table shows Dealing with Construction Permits data for Uganda compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) income per Economies capita) Denmark 6 Qatar 0.8 Singapore 25 Selected Economy Uganda 18 171 1287.8 Comparator Economies Kenya 11 120 167.8 Malawi 21 268 1316.7 Rwanda 14 195 353.6 South Africa 17 174 23.1 Tanzania 22 328 2756.3 18 2. Historical data: Dealing with Construction Permits in Uganda Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 132 133 Procedures (number) 18 18 18 18 Time (days) 171 171 171 171 Cost (% of income per capita) 2101.0 1819.5 1510.5 1287.8 3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Uganda over the past 4 years: 19 Dealing with Construction Permits in Uganda The table below summarizes the procedures, time, and costs to build a warehouse in Uganda. BUILDING A WAREHOUSE City: Kampala Registration Requirements: No: Procedure Time to complete Cost to complete 1 Hire an independent private company to prepare the environmental impact 21 days UGX 5,000,000 assessement 2 Request and obtain environmental impact assessment 21 days UGX 2,000,000 3 Request and obtain approval of architectural drawings at the Local 60 days UGX 1,534,708 Authority 4 * Submit construction drawings to the Land Registry and obtain clearance 7 days UGX 10,000 5 * Request and obtain a hoarding permit 7 days UGX 59,000 6 Notify and receive inspection after building foundation work 1 day no charge 7 Notify and receive inspection after structural work 1 day no charge 8 Notify and receive inspection after drainage and damp proofing work 1 day no charge 20 9 Notify and receive inspection after boundary wall or fence erection work 1 day no charge 10 Notify of the completion of construction and receive inspection 1 day no charge 11 * Request provision of water and sewerage services 1 day UGX 600,000 12 * Receive survey/ inspection from the National Water and Sewerage 1 day no charge Corporation 13 * Connect to water and sewerage 14 days no charge 14 * Request provision of electricity services 1 day UGX 2,000,000 15 * Receive survey by the Umeme Ltd. 1 day no charge 16 * Connect to electricity 59 days no charge 17 * Request and connect to telephone 14 days UGX 255,000 18 * Request and obtain occupation permit 14 days UGX 50,000 * Takes place simultaneously with another procedure. 21 Dealing with Construction Permits Details - Uganda Procedure 1 Hire an independent private company to prepare the environmental impact assessement Time to complete: 21 days Cost to complete: UGX 5,000,000 Agency: Private company Comment: Preparation of EIA is carried out by independent private firms recognised and licenced by NEMA to do so. Fees are incurred for the the preparation of the EIA, are in this case anything from UGX 5,000,000 to UGX 15,000,000, depending on complexity and site conditions Procedure 2 Request and obtain environmental impact assessment Time to complete: 21 days Cost to complete: UGX 2,000,000 Agency: National Environment Management Authority Comment: It is now a legal requirement to obtain approval from the National Environment Management Authority. Procedure 3 Request and obtain approval of architectural drawings at the Local Authority Time to complete: 60 days Cost to complete: UGX 1,534,708 Agency: Construction Authority (Municipality) Comment: Threes copies of drawings are submitted to the local authority, each with a copy of the land title attached. By law, 30 days is the time limit for the local authority to approve (or not) the drawings. However, in practice, it takes up to 90 days to obtain the approval. There is a provision whereby an applicant can write to the local authority after 30 days of submission of the drawings for approval to inquire about the status of the application. In the absence of a response, the applicant can notify the local authority of their intention to begin construction. The owner must start construction within 3 months of the approval date. A zoning assessment is also needed if BuildCo has doubts about the compliance of the construction with the zoning requirements. The approval application fee is UGX 1,000 x 1,300.6 square meters + 18% VAT. Procedure 4 Submit construction drawings to the Land Registry and obtain clearance Time to complete: 7 days Cost to complete: UGX 10,000 Agency: Land Registry Office 22 Comment: One copy of the construction drawings is submitted to the Land Registry Office. Procedure 5 Request and obtain a hoarding permit Time to complete: 7 days Cost to complete: UGX 59,000 Agency: KCC Comment: All construction sites are required to provide for hoarding around the site of the works for the duration of the construction period. This is why BuildCo has to apply for a hoarding permit prior to erection of hoarding around any site. Procedure 6 Notify and receive inspection after building foundation work Time to complete: 1 day Cost to complete: no charge Agency: Construction Authority (Municipality) Comment: The construction authorities inspect once at each of these stages: foundation work, structural work, drainage, damp proofing, boundary wall or fence erection, and completion. Procedure 7 Notify and receive inspection after structural work Time to complete: 1 day Cost to complete: no charge Agency: Construction Authority (Municipality) Comment: Procedure 8 Notify and receive inspection after drainage and damp proofing work Time to complete: 1 day Cost to complete: no charge Agency: Construction Authority (Municipality) Comment: Procedure 9 Notify and receive inspection after boundary wall or fence erection work Time to complete: 1 day Cost to complete: no charge Agency: Construction Authority (Municipality) 23 Comment: Procedure 10 Notify of the completion of construction and receive inspection Time to complete: 1 day Cost to complete: no charge Agency: Construction Authority (Municipality) Comment: Procedure 11 Request provision of water and sewerage services Time to complete: 1 day Cost to complete: UGX 600,000 Agency: National Water & Sewerage Corporation Comment: To connect to the water supply system, BuildCo needs to fill out forms and wait for a survey by field staff from the National Water and Sewerage Co. (NWSC) (which normally happens within 2 to 3 days), then return to the NWSC offices to obtain the invoices and a "materials list." The customer buys all the materials necessary for connection, listed in the materials list (which includes the types and quantities of pipes and other accessories needed for the connection). The trenches for the pipes are also prepared by the customer. Procedure 12 Receive survey/ inspection from the National Water and Sewerage Corporation Time to complete: 1 day Cost to complete: no charge Agency: National Water & Sewerage Corporation Comment: Procedure 13 Connect to water and sewerage Time to complete: 14 days Cost to complete: no charge Agency: National Water & Sewerage Corporation Comment: Procedure 14 Request provision of electricity services 24 Time to complete: 1 day Cost to complete: UGX 2,000,000 Agency: Umeme Ltd. Comment: The Electricity Utility Company has been privatized and its name changed to Umeme Ltd. To connect to the electric power network, BuildCo must fill out the relevant forms and submit them to the utility provider for a survey to be conducted. After that, BuildCo is billed and asked to pay before connection can be made. All materials needed for that purpose are paid for by the customer. Unlike for water connection, however, the customer pays for the listed materials directly to the utility provider. This typically includes poles and cables, but could, at times, also include things like step-down transformers. For routine installations, the utility provider generally has the required equipment ex-stock, and installation typically occurs within 2 to 4 months after payment, depending on the size of the job. The country has been experiencing a power shortage due to dry weather and shutdown of one of the power stations, which has meant long delays in getting the connection approved and installed. Procedure 15 Receive survey by the Umeme Ltd. Time to complete: 1 day Cost to complete: no charge Agency: Umeme Ltd. Comment: Procedure 16 Connect to electricity Time to complete: 59 days Cost to complete: no charge Agency: Umeme Ltd. Comment: Procedure 17 Request and connect to telephone Time to complete: 14 days Cost to complete: UGX 255,000 Agency: MTN Uganda Comment: Telephone service in Uganda has been privatized. Getting connected to any of the three companies should take a maximum of 3 days. Having a single line connected would cost about UGX 250,000. According to the investment authority, the average time for installation is 1­3 weeks. If 25 companies are at capacity, the time can be 3­6 months. Procedure 18 Request and obtain occupation permit Time to complete: 14 days Cost to complete: UGX 50,000 Agency: Local Authority Comment: BuildCo submits a signed certificate to the local authority stating that the building has been constructed in compliance with the approved plans. 26 27 1. Benchmarking Registering Property Regulations: Uganda is ranked 150 overall for Registering Property. Ranking of Uganda in Registering Property - Compared to good practice and selected economies: 28 The following table shows Registering Property data for Uganda compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) property Economies value) New Zealand* 2 Norway* 1 Saudi Arabia 0.0 Selected Economy Uganda 13 77 3.2 Comparator Economies Kenya 8 64 4.2 Malawi 6 49 3.2 Rwanda 4 55 0.4 South Africa 6 24 8.8 Tanzania 9 73 4.4 * The following economies are also good practice economies for : Procedures (number): United Arab Emirates Time (days): Saudi Arabia, Thailand, United Arab Emirates 29 2. Historical data: Registering Property in Uganda Registering Property data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 150 150 Procedures (number) 13 13 13 13 Time (days) 77 77 77 77 Cost (% of property value) 4.6 4.1 3.5 3.2 3. The following graphs illustrate the Registering Property sub indicators in Uganda over the past 4 years: 30 Registering Property in Uganda This topic examines the steps, time, and cost involved in registering property in Uganda. STANDARDIZED PROPERTY Property Value: 44,681,882.79 City: Kampala Registration Requirements: No: Procedure Time to complete Cost to complete 1 Request a search and obtain Consent form to transfer 1 day no cost at the Registry of Titles 2 Pay search and consent fee at Commercial Bank 1 - 2 days UGX 25,000 (UGX 10,000 search fee + 2,500 bank fee, UGX 10,000 COnsent fee + 2,500 bank fee 3 Contract surveyors to measure the property's 3 days UGX 500,000 on average boundaries 4 Conduct a search at the Registry of Titles 1 day (already paid at the bank) 5 Lawyer drafts sale agreement 1 day 1% - 2% property value (to conduct entire transaction) 6 Valuation of property for transfer purposes by Chief 1 month no cost Government Valuer's Office 7 Obtain Assessment form for payment of stamp duty 1 day no cost from Uganda Revenue Authority 31 8 Payment of stamp duty at the designated commercial 7 days 1% of property price (of the bank government's valuation) 9 The sale contract is embossed by the Ministry of 1 day no cost Finance 10 Obtain consent to transfer from Land Office 5 - 10 days (paid in procedure 12) 11 Present documents to the Kampala City Council 1 day no cost 12 Payment of registration fee at a commercial bank 1 day UGX 22,500 (UGX 20,000 in fees + 2,500 bank fee) + UGX 20,000 (registration of companies' resolutions) 13 The sale contract is lodged at the Land Office 21 days (already paid at the bank) 32 Registering Property Details - Uganda Procedure 1 Request a search and obtain Consent form to transfer at the Registry of Titles Time to complete: 1 day Cost to complete: no cost Agency: Land office Comment: Request a search in the Land Office in Properties. The registry gives a ticket with the amount to be paid, which one takes to the bank to pay in full. Procedure 2 Pay search and consent fee at Commercial Bank Time to complete: 1 - 2 days Cost to complete: UGX 25,000 (UGX 10,000 search fee + 2,500 bank fee, UGX 10,000 COnsent fee + 2,500 bank fee Agency: Commercial Bank Comment: To facilitate the official fees payment process, the government now allows citizens to pay at any bank commercial bank. For every procedure in which fees are paid, one first begins the procedure at the land registry, obtains a ticket there with the amount due, takes the ticket to the bank, pays that amount plus bank fees, and obtains a receipt that will later be presented again at the land registry to complete the procedure. Because all official fees are now paid at more than one bank, citizens do not need to pay and come back the following day to obtain the receipt. Procedure 3 Contract surveyors to measure the property's boundaries Time to complete: 3 days Cost to complete: UGX 500,000 on average Comment: A surveyor is engaged to measure the property's boundaries, and establish its size. This is mandatory. Uganda is a common law country that follows the Torrens system of registration of land. The time to complete varies from surveyor to surveyor and is also affected by the size and location of the property. On average a survey can be completed in 3 days. The cost of the survey depends on the size of the plot and not on the value of the plot. Good surveyors charge on average UGX 500,000 to open the boundaries of an average sized plot. Procedure 4 Conduct a search at the Registry of Titles Time to complete: 1 day Cost to complete: (already paid at the bank) Agency: Registry of Titles Comment: Parties conduct a search in the Land Office of Properties. The receipt of payment of the search fee from the bank must be presented. At this time one also picks up the consent to transfer 33 application. Procedure 5 Lawyer drafts sale agreement Time to complete: 1 day Cost to complete: 1% - 2% property value (to conduct entire transaction) Comment: It is not mandatory to use a lawyer to draw up the sale agreement or conduct the transaction, but in our case it would be common practice. Procedure 6 Valuation of property for transfer purposes by Chief Government Valuer's Office Time to complete: 1 month Cost to complete: no cost Agency: Chief Government Valuer office Comment: A government valuer will inspect the property in order to determine its valuation for transfer purposes and for assessing and paying stamp duty. Procedure 7 Obtain Assessment form for payment of stamp duty from Uganda Revenue Authority Time to complete: 1 day Cost to complete: no cost Agency: Ugand Revenue Authority Comment: Once the Chief Government valuer has given his consent on the cost, the file is taken to the Ugand Revenue Authority, where an assessment form for Stamp duty is provided. At that time, the name of the designated bank will be provided. Procedure 8 Payment of stamp duty at the designated commercial bank Time to complete: 7 days Cost to complete: 1% of property price (of the government's valuation) Agency: Commercial Bank Comment: Stamp duty must be paid at the commercial bank before registration. To control the revenue from official fees, the government now requires that they be paid only at the commercial bank. In the first instance there is an assessment form which is taken to the bank and payment is made. The Bank will inform the Uganda Revenue Authority that payment has been received. There is a reconcilation process between the Bank and the Uganda Revenue Authority which can take up to 3 days. Procedure 9 The sale contract is embossed by the Ministry of Finance Time to complete: 1 day 34 Cost to complete: no cost Agency: Ministry of Finance Comment: Once the reconciliation is done, the Uganda Revenue Authority will deliver the Sale agreement to the Ministry of Finance. The Uganda Revenue Authority will then embossed the Sale Agreement with the amount paid as stamp duty and then issue an original receipt of the amount paid. Procedure 10 Obtain consent to transfer from Land Office Time to complete: 5 - 10 days Cost to complete: (paid in procedure 12) Agency: Land Office Comment: The transfer forms are lodged with the Land Office in order to obtain consent to transfer. The receipt of payment of the consent fees must be presented. When the transaction involves companies, they must file with the companies registry a special resolution authorizing the transaction, which costs UGX 20,000. Procedure 11 Present documents to the Kampala City Council Time to complete: 1 day Cost to complete: no cost Agency: Kampala City Council Comment: The embossed sale agreement is given to the Kampala City Council for assessment of Registration Fee. An assessment form is given providing the amount to the paid for Registration Fees. This form will also provide the name of the designated bank where payment is to be made (Orient Bank). The documentation shall include: Signed sale agreement Receipts of stamp duty payment (obtained in Procedure 6) Companies' resolutions to buy and sell Procedure 12 Payment of registration fee at a commercial bank Time to complete: 1 day Cost to complete: UGX 22,500 (UGX 20,000 in fees + 2,500 bank fee) + UGX 20,000 (registration of companies' resolutions) Agency: Commercial Bank Comment: Registration fees must be paid in a desingated commercial bank to continue with the registration process. Actual transfer fees are UGX 10,000 in case of leases, perusal fees UGX 5,000 and other charges which add up to about UGX 22,500. In the case of leases there is a consent fee which is also paid before payment of stamp duty in this case in the land administration section of UGX 10,000. In the first instance there is an assessment form which 35 is taken to the bank and payment is made. The registration fee is a fixed fee. Procedure 13 The sale contract is lodged at the Land Office Time to complete: 21 days Cost to complete: (already paid at the bank) Agency: Land Office Comment: The sale contract is lodged at the Land registry, where it will be transmitted to the Registrar who will pass the Instrument of Transfer. The file goes to typing and is then sent to the Commissioner in charge of Land Registration for verification. The registrar cancels out the old owner in handwriting and signs against the new owner. The buyer and seller must now provide a passport size photograph. The documentation shall include: Receipts of payment for registration fees Photo ID of both Seller and Buyer 36 37 1. Benchmarking Getting Credit Regulations: Uganda is ranked 46 overall for Getting Credit. Ranking of Uganda in Getting Credit - Compared to good practice and selected economies: 38 The following table shows Getting Credit data for Uganda compared to good practice and comparator economies: Good Practice Strength of Depth of Public Private legal rights credit registry bureau Economies index (0-10) information coverage (% coverage (% index (0-6) of adults) of adults) New Zealand* 100.0 Portugal 67.1 Singapore* 10 United Kingdom 6 Selected Economy Uganda 7 4 0.0 1.1 Comparator Economies Kenya 10 4 0.0 3.3 Malawi 7 0 0.0 0.0 Rwanda 8 4 0.7 0.0 South Africa 9 6 0.0 54.9 Tanzania 8 0 0.0 0.0 * The following economies are also good practice economies for : Strength of legal rights index (0-10): Hong Kong, China, Kenya, Kyrgyz Republic, Malaysia Private bureau coverage (% of adults): Argentina, Australia, Canada, Iceland, Ireland, Norway, Sweden, United Kingdom, United States 27 countries have the highest credit information index. 39 2. Historical data: Getting Credit in Uganda Getting Credit data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 109 46 Strength of legal rights index (0-10) 7 7 7 7 Depth of credit information index (0-6) 0 0 0 4 Private bureau coverage (% of adults) 0.0 0.0 0.0 1.1 Public registry coverage (% of adults) 0.0 0.0 0.0 0.0 3. The following graphs illustrate the Getting Credit sub indicators in Uganda over the past 4 years: 40 Getting Credit in Uganda The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit registries in Uganda. Getting Credit Indicators (2010) Indicator Private credit Public credit Private bureau coverage (% of adults) 4 bureau registry Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative data distributed? Yes No 1 Does the registry distribute credit information from retailers, trade No No 0 creditors or utility companies as well as financial institutions? Are more than 2 years of historical credit information distributed? No No 0 Is data on all loans below 1% of income per capita distributed? Yes No 1 Is it guaranteed by law that borrowers can inspect their data in the Yes No 1 largest credit registry? Coverage 1.1 0.0 Number of individuals 174,683 0 Number of firms 3,104 0 41 Strength of legal rights index (0-10) 7 Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes institution accept such assets as collateral ? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, Yes without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without Yes requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend automatically to the products, Yes proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations Yes and debts can be secured by stating a maximum amount rather than a specific amount between the parties ? Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No grantor's name of a security right ? Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? Yes Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No Does the law authorize parties to agree on out of court enforcement? Yes 42 43 1. Benchmarking Protecting Investors Regulations: Uganda is ranked 132 overall for Protecting Investors. Ranking of Uganda in Protecting Investors - Compared to good practice and selected economies: 44 The following table shows Protecting Investors data for Uganda compared to good practice and comparator economies: Good Practice Strength of investor Economies protection index (0-10) New Zealand 9.7 Selected Economy Uganda 4.0 Comparator Economies Kenya 5.0 Malawi 5.3 Rwanda 6.3 South Africa 8.0 Tanzania 5.0 45 2. Historical data: Protecting Investors in Uganda Protecting Investors data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 131 132 Strength of investor protection index (0-10) 4.0 4.0 4.0 4.0 3. The following graph illustrates the Protecting Investors index in Uganda compared to best practice and selected Economies: 9.7 8.0 6.3 5.3 5.0 5.0 4.0 da i a w nd ya a a ic an a i nd an fr en al a w al ga A M nz R K Ze U h Ta ut ew So N Note: The higher the score, the greater the investor protection. 46 Protecting Investors in Uganda The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are calculated in Uganda. Protecting Investors Data (2010) Indicator Extent of disclosure index (0-10) 2 1 What corporate body provides legally sufficient approval for the transaction? 0 Whether immediate disclosure of the transaction to the public and/or shareholders is required? 0 Whether disclosure of the transaction in published periodic filings (annual reports) is required? 1 Whether disclosure of the conflict of interest by Mr. James to the board of directors is required? 0 Whether an external body must review the terms of the transaction before it takes place? Extent of director liability index (0-10) 5 1 Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller transaction causes to the company? 1 Whether shareholders can hold the approving body (the CEO or board of directors) liable for the damage that the Buyer-Seller transaction causes to the company? 1 Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 1 Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholder plaintiff? 47 0 Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff? 0 Whether fines and imprisonment can be applied against Mr. James? 1 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to the company? Ease of shareholder suits index (0-10) 5 1 Whether the plaintiff can obtain any documents from the defendant and witnesses during trial? 2 Whether the plaintiff can directly question the defendant and witnesses during trial? 0 Whether the plaintiff can request categories of documents from the defendant without identifying specific ones? 1 Whether shareholders owning 10% or less of Buyer's shares can request an inspector to investigate the transaction? 1 Whether the level of proof required for civil suits is lower than that of criminal cases? 0 Whether shareholders owning 10% or less of Buyer's shares can inspect transaction documents before filing suit? Strength of investor protection index (0-10) 4.0 48 49 1. Benchmarking Paying Taxes Regulations: Uganda is ranked 62 overall for Paying Taxes. Ranking of Uganda in Paying Taxes - Compared to good practice and selected economies: 50 The following table shows Paying Taxes data for Uganda compared to good practice and comparator economies: Good Practice Payments Time (hours Total tax rate (number per per year) (% profit) Economies year) Maldives* 3 0 Timor-Leste 0.2 Selected Economy Uganda 32 161 35.7 Comparator Economies Kenya 41 393 49.7 Malawi 19 157 25.1 Rwanda 26 148 31.3 South Africa 9 200 30.5 Tanzania 48 172 45.2 * The following economies are also good practice economies for : Payments (number per year): Qatar 51 2. Historical data: Paying Taxes in Uganda Paying Taxes data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 63 62 Total tax rate (% profit) 37.4 34.5 35.7 35.7 Payments (number per year) 33 32 32 32 Time (hours per year) 237 222 161 161 3. The following graphs illustrate the Paying Taxes sub indicators in Uganda over the past 4 years: 52 Paying Taxes in Uganda The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year in Uganda, as well as measures of administrative burden in paying taxes. Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on contribution (number) Payments (hours) rate base (% profit) TTR Stamp duty on contracts 1 various rates Value added tax (VAT) 12 60 18.0% value added Tax on insurance 1 UGX 5000 per contract 0.00 Trading license 1 various rates nature of 0.00 trade Property tax 1 7-10% rental value 0.10 of property Tax on interest 0 withheld 15.0% interest 0.40 income Fuel tax 1 included in liters 0.90 fuel price Social security 12 66 10.0% gross salaries 11.30 contributions Corporate income tax 3 35 30.0% taxable profit 23.30 Totals 32 161 35.7 53 54 1. Benchmarking Trading Across Borders Regulations: Uganda is ranked 148 overall for Trading Across Borders. Ranking of Uganda in Trading Across Borders - Compared to good practice and selected economies: 55 The following table shows Trading Across Borders data for Uganda compared to good practice and comparator economies: Good Practice Documents to Time to Cost to Documents to Time to Cost to export export (days) export (US$ import import (days) import (US$ Economies (number) per (number) per container) container) Denmark* 5 France 2 2 Malaysia 450 Singapore 4 439 Selected Economy Uganda 6 37 2780 8 34 2940 Comparator Economies Kenya 8 26 2055 7 24 2190 Malawi 11 41 1713 10 51 2570 Rwanda 8 35 3275 8 34 4990 South Africa 8 30 1531 9 35 1807 Tanzania 5 24 1262 7 31 1475 * The following economies are also good practice economies for : Time to export (days): Estonia 56 2. Historical data: Trading Across Borders in Uganda Trading Across Borders data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 147 148 Cost to export (US$ per container) 2940 3090 3190 2780 Cost to import (US$ per container) 2990 3290 3390 2940 Documents to export (number) 6 6 6 6 Documents to import (number) 8 8 8 8 Time to export (days) 39 39 37 37 Time to import (days) 37 37 34 34 3. The following graphs illustrate the Trading Across Borders sub indicators in Uganda over the past 4 years: 57 58 Trading Across Borders in Uganda These tables list the procedures necessary to import and export a standardized cargo of goods in Uganda. The documents required to export and import the goods are also shown. Nature of Export Procedures (2010) Duration (days) US$ Cost Documents preparation 9 220 Customs clearance and technical control 4 135 Ports and terminal handling 6 375 Inland transportation and handling 18 2050 Totals 37 2780 Nature of Import Procedures (2010) Duration (days) US$ Cost Documents preparation 10 350 Customs clearance and technical control 5 150 Ports and terminal handling 6 390 Inland transportation and handling 13 2050 Totals 34 2940 59 Documents for Export and Import Export Bill of lading Certificate of origin Commercial invoice Customs export declaration Certificate of Conformity Transit document Import Bill of lading Cargo release order Certificate of origin Commercial invoice Customs import declaration Inspection report Packing list Transit document 60 61 1. Benchmarking Enforcing Contracts Regulations: Uganda is ranked 113 overall for Enforcing Contracts. Ranking of Uganda in Enforcing Contracts - Compared to good practice and selected economies: 62 The following table shows Enforcing Contracts data for Uganda compared to good practice and comparator economies: Good Practice Procedures Time (days) Cost (% of (number) claim) Economies Bhutan 0.1 Ireland 20 Singapore 150 Selected Economy Uganda 38 490 44.9 Comparator Economies Kenya 40 465 47.2 Malawi 42 312 94.1 Rwanda 24 230 78.7 South Africa 30 600 33.2 Tanzania 38 462 14.3 63 2. Historical data: Enforcing Contracts in Uganda Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 116 113 Procedures (number) 38 38 38 38 Time (days) 535 535 510 490 Cost (% of claim) 44.9 44.9 44.9 44.9 3. The following graphs illustrate the Enforcing Contracts sub indicators in Uganda over the past 4 years: 64 Enforcing Contracts in Uganda This topic looks at the efficiency of contract enforcement in Uganda. Nature of Procedure (2010) Indicator Procedures (number) 38 Time (days) 490 Filing and service 20.0 Trial and judgment 365.0 Enforcement of judgment 105.0 Cost (% of claim)* 44.90 Attorney cost (% of claim) 28.6 Court cost (% of claim) 6.7 Enforcement Cost (% of claim) 9.6 65 Court information: Kampala Mengo Chief Magistrates Court * Claim assumed to be equivalent to 200% of income per capita. 66 67 1. Benchmarking Closing Business Regulations: Uganda is ranked 56 overall for Closing a Business. Ranking of Uganda in Closing Business - Compared to good practice and selected economies: 68 The following table shows Closing Business data for Uganda compared to good practice and comparator economies: Good Practice Recovery rate Time (years) Cost (% of (cents on the estate) Economies dollar) Ireland 0.4 Japan 92.7 Singapore* 1 Selected Economy Uganda 39.7 2.2 30 Comparator Economies Kenya 29.8 4.5 22 Malawi 17.9 2.6 25 Rwanda 0.0 no practice no practice South Africa 34.4 2.0 18 Tanzania 21.9 3.0 22 * The following economies are also good practice economies for : Cost (% of estate): Colombia, Kuwait, Norway 69 2. Historical data: Closing Business in Uganda Closing a Business data Doing Business Doing Business Doing Business Doing Business 2008 2009 2010 2011 Rank .. .. 53 56 Time (years) 2.2 2.2 2.2 2.2 Cost (% of estate) 30 30 30 30 Recovery rate (cents on the dollar) 41.0 41.1 41.1 39.7 3. The following graphs illustrate the Closing Business sub indicators in Uganda over the past 4 years: 70 Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000 reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117 economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export regulations and improving credit information systems. The top 10 most-improved in Doing Business 2011 Dealing with Construction Trading Across Borders Positive Change Registering Property Enforcing Contracts Protecting Investors Starting a Business Closing a Business Negative Change Getting Credit Paying Taxes Permits Economy Kazakhstan Rwanda Peru Vietnam Cape Verde Tajikistan Zambia Hungary Grenada Brunei Darussalam * For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing business ranking. 71 Summary of changes to business regulation in top 10 most improved economies in Doing Business 2011 and selected comparator economies. Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses, ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam made trading easier. Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business begins operations and computerizing the system for delivering the municipal license. Cape Verde eased property registration by switching from fees based on a percentage of the property value to lower fixed rates. Cape Verde abolished the stamp duties on sales and checks. Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the courts to the civil administration. The appointment of a registrar focusing only on property cut the time needed to transfer property in Grenada by almost half. Grenada's customs administration made trading faster by simplifying procedures, reducing inspections, improving staff training and enhancing communication with users. Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to Hungary's bankruptcy law encourage insolvent companies to consider reaching agreements with creditors out of court so as to avoid bankruptcy. Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70) and eliminating the need to have the memorandum of association and company charter notarized. Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to modernize customs, including implementation of a risk management system and improvements in customs automation. Kenya Kenya eased business start-up by reducing the time it takes to get the memorandum and articles of association stamped, merging the tax and value added tax registration procedures and digitizing records at the registrar. Kenya increased the administrative burden of paying taxes by requiring quarterly filing of payroll taxes. Kenya speeded up trade by implementing an electronic cargo tracking system and linking this system to the Kenya Revenue Authority's electronic data interchange system for customs clearance. Malawi Malawi eased property transfers by cutting the wait for consents and registration of legal instruments by half. Malawi simplified the enforcement of contracts by raising the ceiling for commercial claims that can be brought to the magistrates court. Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an online one-stop shop for business registration. Peru streamlined construction permitting by implementing administrative reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to register property. Peru made trading easier by implementing a new web-based electronic data interchange system, risk-based inspections and payment deferrals. Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced access to credit by allowing borrowers the right to inspect their own credit report and mandating that loans of all sizes be reported to the central bank's public credit registry. Rwanda reduced the number of trade documents required and enhanced its joint border management procedures with Uganda and other neighbors, leading to an improvement in the trade logistics environment. Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with the state and the tax authority. Tajikistan strengthened investor protections by requiring greater corporate disclosure in the annual report and greater access to corporate information for minority investors. Tajikistan lowered its corporate income tax rate. 72 Uganda Uganda made it more difficult to start a business by increasing the trade licensing fees. Uganda enhanced access to credit by establishing a new private credit bureau. Uganda continues to improve the efficiency of its court system, greatly reducing the time to file and serve a claim. Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining a business license and tax license and by eliminating the need for a seal for company licensing. Vietnam made dealing with construction permits easier by reducing the cost to register newly completed buildings by 50% and transferring the authority to register buildings from local authorities to the Department of National Resources and Environment. Vietnam improved its credit information system by allowing borrowers to examine their own credit report and correct errors. Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by implementing a one-stop border post with Zimbabwe, launching web-based submission of customs declarations and introducing scanning machines at border posts. Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records. 73 74