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Albania
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© 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.
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Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010:
Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to
Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and
Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org.
ISBN: 978-0-8213-7960-8
E-ISBN: 978-0-8213-8630-9
DOI: 10.1596/978-0-8213-7960-8
ISSN: 1729-2638
Library of Congress Cataloging-in-Publication data has been applied for.
Printed in the United States
Current features News on the Doing Business project
http://www.doingbusiness.org
Rankings How economies rank-from 1 to 183
http://www.doingbusiness.org/rankings/
Reformers Short summaries of DB2011 reforms, lists of reformers since DB2004
and a ranking simulation tool
http://www.doingbusiness.org/reforms/
Historical dataCustomized data sets since DB2004
http://www.doingbusiness.org/custom-query/
Methodology and research The methodologies and research papers underlying Doing Business
http://www.doingbusiness.org/Methodology/
Download reports Access to Doing Business reports as well as subnational and regional
reports, reform case studies and customized country and regional
profiles
http://www.doingbusiness.org/reports/
Subnational and regional projects Differences in business regulations at the subnational and regional
level
http://www.doingbusiness.org/subnational-reports/
Law LibraryOnline collection of business laws and regulations relating to
business and gender issues
http://www.doingbusiness.org/law-library/
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
Contents
Introduction
and Aggregate Rankings
5 - Year Measure of
Cumulative Change
Starting a Business
Dealing with
Construction Permits
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Closing a Business
Doing Business 2011
Business Reforms
1
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 Albania. 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).
Economy Rankings - Ease of Doing Business
Albania's ranking in Doing Business 2011
Albania - Compared to global good practice economy as well as selected economies:
Albania is ranked 82 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.
Doing Business 2011
Ease of Doing Business 82
Starting a Business 45
Dealing with Construction Permits 170
Registering Property 72
Getting Credit 15
Protecting Investors 15
Paying Taxes 149
Trading Across Borders 75
Enforcing Contracts 89
Closing a Business 183
Rank
2
Summary of Indicators - Albania
Starting a Business Procedures (number) 5
Time (days) 5
Cost (% of income per capita) 16.8
Min. capital (% of income per capita) 0.0
Dealing with Construction Permits Procedures (number) 24
Time (days) 331
Cost (% of income per capita) 381.3
Registering Property Procedures (number) 6
Time (days) 42
Cost (% of property value) 3.4
Getting Credit Strength of legal rights index (0-10) 9
Depth of credit information index (0-6) 4
Public registry coverage (% of adults) 8.3
Private bureau coverage (% of adults) 0.0
Protecting Investors Extent of disclosure index (0-10) 8
Extent of director liability index (0-10) 9
Ease of shareholder suits index (0-10) 5
Strength of investor protection index (0-10) 7.3
Paying Taxes Payments (number per year) 44
Time (hours per year) 360
Profit tax (%) 8.5
Labor tax and contributions (%) 27.3
Other taxes (%) 4.9
Total tax rate (% profit) 40.6
Trading Across Borders Documents to export (number) 7
Time to export (days) 19
Cost to export (US$ per container) 725
Documents to import (number) 9
Time to import (days) 18
Cost to import (US$ per container) 7103
Enforcing Contracts Procedures (number) 39
Time (days) 390
Cost (% of claim) 38.7
Closing a Business Recovery rate (cents on the dollar) 0.0
Time (years) no practice
Cost (% of estate) no practice
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
0.00
0.04
0.08
0.12
0.16
0.20
0.24
Croatia Macedonia,FYR
Albania Bosnia andHerzegovina
Hungary Greece
Doing
business has
become
easier (DB
change
score)
6
1. Benchmarking Starting a Business Regulations:
Albania is ranked 45 overall for Starting a Business.
Ranking of Albania in Starting a Business - Compared to good practice and selected economies:
7
Procedures
(number)
Time (days) Cost (% of
income per
capita)
Min. capital
(% of income
per capita)
Denmark* 0.0
New Zealand* 1 1 0.0
Good Practice
Economies
Albania 5 5 16.8 0.0
Selected Economy
Bosnia and Herzegovina 12 55 17.7 30.5
Croatia 6 7 8.6 13.7
Greece 15 19 20.7 22.3
Hungary 4 4 8.2 10.2
Macedonia, FYR 3 3 2.5 0.0
Montenegro 7 10 1.9 0.0
Comparator Economies
The following table shows Starting a Business data for Albania compared to good practice and comparator economies:
* The following economies are also good practice economies for :
Procedures (number): Canada
Cost (% of income per capita): Slovenia
8
Starting a Business data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 44 45
Procedures (number) 10 6 5 5
Time (days) 36 8 5 5
Cost (% of income per capita) 25.6 25.8 17.0 16.8
Min. capital (% of income per capita) 34.3 32.3 0.0 0.0
2. Historical data: Starting a Business in Albania
3. The following graphs illustrate the Starting a Business sub indicators in Albania over the past 4 years:
9
Starting a Business Summary - Albania
Registration Requirements:
STANDARDIZED COMPANY
Legal Form: Limited Liability Company (Shpk)
City: Tirana
This table summarizes the procedures and costs associated with setting up a business in Albania.
No: Procedure Time to complete Cost to complete
Search for a unique company name 1 1 ALL 100
Notarize the incorporation documents 2 1 ALL 8700
Request and obtain the Registration Certification and unique business
identification number with National Registration Center, NRC
(Qendra Kombëtare për Regjistrim,QRK)
3 1 ALL 100
Registration with the Municipality Bureau of Internal Revenue 4 1 ALL 46500
Make a company seal 5 1 ALL (3,000 - 5,000)
10
Procedure Search for a unique company name 1
Time to complete: 1
Cost to complete: ALL 100
Comment:
Procedure Notarize the incorporation documents 2
Time to complete: 1
Cost to complete: ALL 8700
Comment: Fees to notarize the incorporation documents include:
- Articles of incorporation: ALL 2,700.
- Statute: ALL 2,700.
- Eventual special proxy to an attorney: ALL 3,300.
The above-mentioned professional fees are charged mostly in Euros.
The legal fees for drafting the statute and the articles of incorporation vary greatly (from USD 100
to over USD 1,000), depending on the quality of legal services.
Procedure Request and obtain the Registration Certification and unique business identification
number with National Registration Center, NRC (Qendra Kombëtare për
Regjistrim,QRK)
3
Time to complete: 1
Cost to complete: ALL 100
Comment: The NRC Law has established the National Registration Center as a new central public institution,
which functions as a Single window where the entrepreneur can complete company registration,
tax registration, social insurance, health insurance and labor directorate registration using a single
application procedure (Article 59 of the law no. 9723 "on National Registration Center: NRC").
According to law no. 9723 "on National Registration Center: NRC", it takes 1 day to register at the
NR since the electronic registry is now fully operational and has increased in capacity.
Procedure Registration with the Municipality Bureau of Internal Revenue 4
Time to complete: 1
Cost to complete: ALL 46500
Comment: Local fees and tariffs include:
- Environmental tax : ALL 25,000
- Green tax: ALL 5,000.
- Billboard fee: ALL 1,500 (in Albanian) – ALL 3,000 (in foreign language) a year.
- Property tax (assuming 100 sq. m in space), applied to any company-owned immovable property:
ALL 200 per sq. m. a year.
Starting a Business Details - Albania
11
Companies may pay local fees and taxes by Alba Post( a state-owned mailing services company) or
commercial bank and must obtain proof of payment.
Procedure Make a company seal 5
Time to complete: 1
Cost to complete: ALL (3,000 - 5,000)
Comment:
12
13
1. Benchmarking Dealing with Construction Permits Regulations:
Albania is ranked 170 overall for Dealing with Construction Permits.
Ranking of Albania in Dealing with Construction Permits - Compared to good practice and selected economies:
14
Procedures
(number)
Time (days) Cost (% of
income per
capita)
Denmark 6
Qatar 0.8
Singapore 25
Good Practice
Economies
Albania 24 331 381.3
Selected Economy
Bosnia and Herzegovina 16 255 578.1
Croatia 13 315 850.9
Greece 15 169 52.9
Hungary 31 189 9.8
Macedonia, FYR 21 146 1601.4
Montenegro 19 230 1215.0
Comparator Economies
The following table shows Dealing with Construction Permits data for Albania compared to good practice and comparator
economies:
15
Dealing with Construction Permits data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 172 170
Procedures (number) 24 24 24 24
Time (days) 331 331 331 331
Cost (% of income per capita) 461.0 435.0 386.1 381.3
2. Historical data: Dealing with Construction Permits in Albania
3. The following graphs illustrate the Dealing with Construction Permits sub indicators in Albania over
the past 4 years:
16
Dealing with Construction Permits in Albania
Registration Requirements:
BUILDING A WAREHOUSE
City: Tirana
The table below summarizes the procedures, time, and costs to build a warehouse in Albania.
No: Procedure Time to complete Cost to complete
1 Request and obtain recent property ownership certificate 30 days ALL 2,870
2 Request and obtain extract of master plan of the plot from the Urban
Planning Department
30 days ALL 4,000*
3 Request and obtain document attesting that the firm has no unpaid
environmental fines
1 day ALL 200*
4 Request and obtain opinion of the District Urban Planning Department 10 days ALL 2,000*
5 Request and obtain project clearance from water authority 9 days ALL 3,000*
6 Request and obtain project clearance from environmental protection
agency
8 days no charge*
7 Request and obtain electricity authority approval 5 days ALL 500*
8 Request and obtain Fire Department approval 30 days ALL 20,000*
17
9 Request a land permit from Urban Planning Department (Technical
Commission)
1 day no charge
10 Receive inspection from Technical Commission 1 day no charge*
11 Request and obtain decision of the Technical Commission 90 days ALL 800,000*
12 Request and obtain Building Permit 45 days ALL 400,000
13 Receive on-site inspection of construction foundations 1 day no charge
14 Receive on-site inspection of the completion of construction skeleton 1 day no charge
15 Receive on-site inspection of the adjustment of the surroundings of the
building according to the drawings
1 day no charge
16 Request and connect to telecommunications services 30 days ALL 30,000*
17 Request and connect to water and sewage services 20 days ALL 40,000*
18 Request and connect to electricity services 20 days ALL 40,000*
19 Submit report on the completion of works and request on-site inspection
by an authorized expert
1 day no charge
20 Receive on-site inspection by an authorized expert and obtain approval 30 days no charge
21 Receive inspection from municipality 1 day no charge
22 Receive compliance report after inspection 2 days no charge
23 Obtain occupancy permit 30 days no charge
24 Register with the Real Estate Registry 60 days ALL 4,320
* Takes place simultaneously with another procedure.
18
Procedure Request and obtain recent property ownership certificate 1
Time to complete: 30 days
Cost to complete: ALL 2,870
Agency: Real Estate Registry
Comment: The certificate of ownership of property (the construction site) can be obtained from the
Real Estate Registry. As of February 2008 the validity term of the certificate should be at
most 72 hours. The Registry’s automated system expedites this process. As of February
2008 Real Estate Registry started including the mailing fee into the cost of obtaining a
recent copy of property ownership certificate.
Procedure Request and obtain extract of master plan of the plot from the Urban Planning
Department
2
Time to complete: 30 days
Cost to complete: ALL 4,000
Agency: Municipal Urban Planning Department
Comment: The master and general plans of the plot are issued by the municipality’s Urban Planning
Department. The general plan is a topographic map of the situation of the existing
property, while the master plan is a plan of the proposed development. The fee covers
both plans. The master plan should contain the approval of the municipality’s Department
of Road Projects which can be done internally. Article 36 of the Law On City Planning
states that the plot’s master plan must be submitted to the technical secretary of the
Territory Management Council and to the municipality within 15 days of the date of its
inclusion. It will be available to the company within 30 days.
Procedure Request and obtain document attesting that the firm has no unpaid environmental fines 3
Time to complete: 1 day
Cost to complete: ALL 200
Agency: Environmental Authority
Comment: This attestation is required by Point 18 of the Council of Ministers’ approval of the city
planning regulations. It must be submitted with the required set of documents when
applying for the construction site permit and the construction permit (up to three stories).
Procedure Request and obtain opinion of the District Urban Planning Department 4
Time to complete: 10 days
Cost to complete: ALL 2,000
Agency: District Urban Planning Department
Comment: BuildCo should request an attestation on the drawings’ compliance with urban zoning
regulations from the district Urban Planning Department. This requirement is provided
for by Point 21 of the regulations on construction (of up to three stories), "Documents
That an Investor Should Submit for Obtaining Construction Site Permit and Construction
Dealing with Construction Permits Details - Albania
19
Permit," published by the Council of Tirana Municipality.
Procedure Request and obtain project clearance from water authority 5
Time to complete: 9 days
Cost to complete: ALL 3,000
Agency: Water Authority
Comment: The water authority approves the project and indicates the nearest water supply sources.
Since January 2008 the Water and Sewage Company introduced a new cost for granting a
project clearance at the initial stage of designing at the amount of ALL 3,000.
Procedure Request and obtain project clearance from environmental protection agency 6
Time to complete: 8 days
Cost to complete: no charge
Agency: Environmental Protection Agency
Comment:
Procedure Request and obtain electricity authority approval 7
Time to complete: 5 days
Cost to complete: ALL 500
Agency: Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure Request and obtain Fire Department approval 8
Time to complete: 30 days
Cost to complete: ALL 20,000
Agency: Fire Department
Comment: This procedure takes 30 days because while the Fire Department gives the approval, the
Prefecture holds the actual seal that must be used to stamp the approval. In practice, the
public actually make this request at the Prefecture (although according to the Fire
Department, the law stipulates that Fire Department is the handling agency). The Fire
Department then has to call the Prefecture to ask for files, which are forwarded to the Fire
Department. The Fire Department must then review and send back to the Prefecture to
stamp the approval. This procedure can takes place twice, before the Land Permit and
before the Building Permit.
The fee for this procedure is 0.5% of the project value for objects with investment value
of up to ALL 50 million, according to Decision No. 285 (of June 27, 2002) "On Tariffs of
the Police for Protection against Fire Services." The fee is estimated at 0.5% of the design
value (generally 10% of the warehouse value, which would be ALL 4 million in the case
considered here). Hence, the fee is ALL 20,000. This cost is to cover the both stages- for
20
land permit and for building permit.
Procedure Request a land permit from Urban Planning Department (Technical Commission) 9
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: BuildCo must request the Urban Planning Department to issue a land clearance for the
construction site.
Procedure Receive inspection from Technical Commission 10
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: Upon inspection, the Technical Commission prepares an authorization letter, attesting that
the land is clear for construction.
Procedure Request and obtain decision of the Technical Commission 11
Time to complete: 90 days
Cost to complete: ALL 800,000
Agency: Territory Adjustment Commission
Comment: The Territory Adjustment Commission convenes every 30 days. It is a commission
chaired by the mayor that is constituted of 9 members—the mayor, 6 from political
parties, 1 elected by 2/3 of the municipal council and 1 representative of the central
government. However, owing to the recent backlog, with too many files processed by too
few civil servants, as of April 2007, the Commission had not convened since December
2006. The fee is 2-4% of the overall project value.
Procedure Request and obtain Building Permit 12
Time to complete: 45 days
Cost to complete: ALL 400,000
Agency: Territory Adjustment Commission
Comment: The building permit is valid for a term determined by the Territory Adjustment
Commission. According to Article 46 of the law "On City Planning," the permit is valid
for 180 days. This permit grants the right to build on the site (construction site permit is
already granted).
The building permit shall be issued to only juridical persons who are licensed contractors.
Several forms and documents are required to obtain this permit:
- Technical project.
- Chart of construction work.
- Table of costs.
- Seismologic study.
21
According to Article 50 of the law "On City Planning," the Territory Management
Council has 45 days to decide on the construction permit. According to Article 51 of the
same law, the fee is 1% of the investment value.
As of 2008 construction companies do not have to notify the construction police about the
start of construction works. The construction police has been moved under the
Municipality’s Urban Planning Department.
Procedure Receive on-site inspection of construction foundations 13
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The on-site inspection occurs in 6–7 days.
Procedure Receive on-site inspection of the completion of construction skeleton 14
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The on-site inspection occurs in 6–7 days.
Procedure Receive on-site inspection of the adjustment of the surroundings of the building
according to the drawings
15
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The on-site inspection occurs in 6–7 days.
Procedure Request and connect to telecommunications services 16
Time to complete: 30 days
Cost to complete: ALL 30,000
Agency: Albtelecom
Comment:
Procedure Request and connect to water and sewage services 17
22
Time to complete: 20 days
Cost to complete: ALL 40,000
Agency: Water and Sewerage Agencies
Comment:
Procedure Request and connect to electricity services 18
Time to complete: 20 days
Cost to complete: ALL 40,000
Agency: Korporata Elektro-energjetike Shqiptare (Kesh)
Comment:
Procedure Submit report on the completion of works and request on-site inspection by an
authorized expert
19
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: Within 30 days of completing construction, BuildCo submits to the Urban Planning
Department a report that documents construction materials and associated costs and
requests an inspection of the construction site.
Procedure Receive on-site inspection by an authorized expert and obtain approval 20
Time to complete: 30 days
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The authorized expert from the Urban Planning Department will sign the inspection
completion statement after performing the on-site inspection.
Procedure Receive inspection from municipality 21
Time to complete: 1 day
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The municipal inspection takes place several weeks later.
Procedure Receive compliance report after inspection 22
23
Time to complete: 2 days
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The construction firm usually receives the compliance report within 2-3 days of
inspection. Another 30 days are required to obtain the occupancy permit.
Procedure Obtain occupancy permit 23
Time to complete: 30 days
Cost to complete: no charge
Agency: Municipal Urban Planning Department
Comment: The occupancy permit grants the right to use the building after construction is completed.
Addressed to the Urban Planning Department, the request must be accompanied by a set
of documents related to the construction process and by the completion statement, duly
signed by the authorized expert.
Procedure Register with the Real Estate Registry 24
Time to complete: 60 days
Cost to complete: ALL 4,320
Agency: Real Estate Registry
Comment: Upon receiving the occupancy permit, BuildCo registers the warehouse with the Real
Estate Registry. It does so by submitting the construction file, which includes the building
permit and inspection reports (cited in Procedure 1). The registration tax is EUR 8 per sq.
m., or EUR 10,405. (The total fee thus corresponds to ALL 4,250.)
24
25
1. Benchmarking Registering Property Regulations:
Albania is ranked 72 overall for Registering Property.
Ranking of Albania in Registering Property - Compared to good practice and selected economies:
26
Procedures
(number)
Time (days) Cost (% of
property
value)
New Zealand* 2
Norway* 1
Saudi Arabia 0.0
Good Practice
Economies
Albania 6 42 3.4
Selected Economy
Bosnia and Herzegovina 7 33 5.3
Croatia 5 104 5.0
Greece 11 22 12.7
Hungary 4 17 5.0
Macedonia, FYR 5 58 3.2
Montenegro 7 71 3.3
Comparator Economies
The following table shows Registering Property data for Albania compared to good practice and comparator economies:
* The following economies are also good practice economies for :
Procedures (number): United Arab Emirates
Time (days): Saudi Arabia, Thailand, United Arab Emirates
27
Registering Property data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 69 72
Procedures (number) 6 6 6 6
Time (days) 42 42 42 42
Cost (% of property value) 3.5 3.4 3.4 3.4
2. Historical data: Registering Property in Albania
3. The following graphs illustrate the Registering Property sub indicators in Albania over the past 4
years:
28
Registering Property in Albania
STANDARDIZED PROPERTY Property Value: 17,660,061.35
City: Tirana
This topic examines the steps, time, and cost involved in registering property in Albania.
No: Procedure Time to complete Cost to complete
1 The seller obtains an ownership title certificate 10 days (simultaneous
with procedures 2 and
3)
950 ALL (500 ALL is the
property certificate and 450
is the map)
*
2 Verification of property certificate and relevant map
at the Real Estate Property Registry
2 days (simultaneous
with procedures 1 and
3)
550 ALL (updated record
file) + 950 ALL (updated
certificate of title with a
layout)
*
3 Comparison of property map with the real situation
and position of the land
1 day (simultaneous
with procedures 1 and
2)
50 to 100 ALL per square
meter of the land
*
Registration Requirements:
29
4 Notarization of the sale and purchase contract by a
notary public
1 day The fees applied are
calculated according to the
following schedule:Value of
real estate
property
Notary fees From
100,000ALL up to
3,000,000 ALL 3,500
to 7,000 ( fee is estimated
proportionally)From
3,000,000ALL up to
4,000,000ALL from
7,000ALL up to 8,500ALL
From 4,000,000ALL up to
6,000,000ALL from
8,500ALL up to 10,000ALL
From 6,000,000ALL up to
8,000,000ALL from
10,000ALL up to
15,000ALL From
8,000,000ALL up to
10,000,000ALL from
15,000ALL up to
18,000ALL From
10,000,000ALL up to
15,000,000ALL from
18,000ALL up to
23,000ALLFrom
15,000,000ALL up to
25,000,000ALL from
23,000ALL up to
30,000ALL From
25,000,000ALL up to
40,000,000ALL from
30,000ALL up to
35,000ALL From
40,000,000ALL up to
50,000,000ALL from
35,000ALL up to
40,000ALL From
50,000,000ALL up to
70,000,000ALL from
40,000ALL up to
50,000ALL From
70,000,000ALL up to
100,000,000ALL from
50,000ALL up to
100.000ALLOver
100,000,000ALL
Up to 150,000
ALL
30
5 Payment of income tax at a second-tier bank 1 day 0.5% - 3% of property
value, according to the
following scale by Order of
the Ministry of Finance No.
5, dated January 30, 2006:
for properties the sale price
of which is: from 0 up to
ALL 2,000,000, the income
tax is 0.5% of the sale price;
over ALL 2,000,000 up to
ALL 4,000,000 is 1% of the
sale price; over ALL
4,000,000 up to ALL
6,000,000, is 2% of the sale
price; over ALL 6,000,000
and up, is 3% of the sale
price. In addition, the
transfer of property is
subject to 10% capital gains
tax as per the law no: 9716
of 16.04.2007
6 Apply for registration at the Real Estate Registry
Office
30 days 1,800 ALL (730 ALL
registration fee, 950
issuance fee and 120
mailing service fee)
* Takes place simultaneously with another procedure.
31
Procedure The seller obtains an ownership title certificate 1
Time to complete: 10 days (simultaneous with procedures 2 and 3)
Cost to complete: 950 ALL (500 ALL is the property certificate and 450 is the map)
Agency: Real Estate Registry Office
Comment: The seller files with the relevant Real Estate Registry Office the required documents in order
to obtain an updated certificate of title. The Certificate includes the property number, cadastral
area, name of owner, surface in square meters, building data (if there are any) and a special
section certifying that the property is (not) subject to any dispute, lien, encumbrance, mortage
or lease agreement. The Certificate should be associated with the relevant map of the property.
The ownership title certificate is always in possession of the seller. In order to avoid any
possible dispute, a new certificate is strictly required for any kind of property transfer.
Procedure Verification of property certificate and relevant map at the Real Estate Property
Registry
2
Time to complete: 2 days (simultaneous with procedures 1 and 3)
Cost to complete: 550 ALL (updated record file) + 950 ALL (updated certificate of title with a layout)
Agency: Real Estate Property Registry
Comment: The buyer verifies the property Certificate and relevant map at the Real Estate Registry. This
is done in order to avoid any fraud on the part of the seller, as sometimes happens. Such
procedure is not mandatory, but sometimes is considered necessary, especially regarding
properties with considerable economic value.
Procedure Comparison of property map with the real situation and position of the land 3
Time to complete: 1 day (simultaneous with procedures 1 and 2)
Cost to complete: 50 to 100 ALL per square meter of the land
Comment: This procedure prevents the buyer from any dispute with third parties caused from
overlapping, borders misfit and land surface. Verification is performed by a private authorized
expert (topographer) at the buyer's expense. Such procedure is not mandatory, but sometimes
is considered necessary especially regarding properties with considerable economic value. The
fee is between 50 – 100 ALL per square meter of land.
Procedure Notarization of the sale and purchase contract by a notary public 4
Time to complete: 1 day
Registering Property Details - Albania
32
Cost to complete: The fees applied are calculated according to the following schedule:Value of real estate
property Notary fees From 100,000ALL up to 3,000,000 ALL 3,500
to 7,000 ( fee is estimated proportionally)From 3,000,000ALL up to 4,000,000ALL
from 7,000ALL up to 8,500ALL From 4,000,000ALL up to 6,000,000ALL from
8,500ALL up to 10,000ALL From 6,000,000ALL up to 8,000,000ALL from
10,000ALL up to 15,000ALL From 8,000,000ALL up to 10,000,000ALL from
15,000ALL up to 18,000ALL From 10,000,000ALL up to 15,000,000ALL from
18,000ALL up to 23,000ALLFrom 15,000,000ALL up to 25,000,000ALL from
23,000ALL up to 30,000ALL From 25,000,000ALL up to 40,000,000ALL from
30,000ALL up to 35,000ALL From 40,000,000ALL up to 50,000,000ALL from
35,000ALL up to 40,000ALL From 50,000,000ALL up to 70,000,000ALL from
40,000ALL up to 50,000ALL From 70,000,000ALL up to 100,000,000ALL from
50,000ALL up to 100.000ALLOver 100,000,000ALL Up to
150,000 ALL
Comment:
Procedure Payment of income tax at a second-tier bank 5
Time to complete: 1 day
Cost to complete: 0.5% - 3% of property value, according to the following scale by Order of the Ministry of
Finance No. 5, dated January 30, 2006: for properties the sale price of which is: from 0 up
to ALL 2,000,000, the income tax is 0.5% of the sale price; over ALL 2,000,000 up to
ALL 4,000,000 is 1% of the sale price; over ALL 4,000,000 up to ALL 6,000,000, is 2%
of the sale price; over ALL 6,000,000 and up, is 3% of the sale price. In addition, the
transfer of property is subject to 10% capital gains tax as per the law no: 9716 of
16.04.2007
Comment: The seller is subject to the income tax due the transfer of the title of ownership on the real
estate property. Such tax is paid at a second-tier bank in the territory of the Republic of
Albania, with whom the relevant Real Estate Registry Office maintains a banking account, and
the seller obtains a receipt of payment of income tax.
The alienation of a real estate property from a legal entity to another one is also subject to
capital gains tax, at a rate of 20% of the transaction value. According to Instruction of
Ministry of Finance and Ministry of Justice No.9, dated 26.02.2008 "On taxes for transfer of
ownership rights of real estates"The income tax for the property transfer is 10% of the sale
price.
Procedure Apply for registration at the Real Estate Registry Office 6
Time to complete: 30 days
Cost to complete: 1,800 ALL (730 ALL registration fee, 950 issuance fee and 120 mailing service fee)
Agency: Real Estate Registry Office
Comment: The buyer submits the original version of the sale and purchase contract and the bank receipt
for payment of income tax to the relevant Real Estate Registry Office for the registration of
the real estate property under the buyer's name.
The Tirana Real Estate Registry handles the registration of the real estate properties mainly by
means of a computerized system.
33
34
1. Benchmarking Getting Credit Regulations:
Albania is ranked 15 overall for Getting Credit.
Ranking of Albania in Getting Credit - Compared to good practice and selected economies:
35
Strength of
legal rights
index (0-10)
Depth of
credit
information
index (0-6)
Public
registry
coverage (%
of adults)
Private
bureau
coverage (%
of adults)
New Zealand* 100.0
Portugal 67.1
Singapore* 10
United Kingdom 6
Good Practice
Economies
Albania 9 4 8.3 0.0
Selected Economy
Bosnia and Herzegovina 5 5 30.2 47.2
Croatia 6 4 0.0 81.2
Greece 3 5 0.0 61.5
Hungary 7 5 0.0 11.4
Macedonia, FYR 7 4 39.4 0.0
Montenegro 10 2 26.7 0.0
Comparator Economies
The following table shows Getting Credit data for Albania compared to good practice and comparator economies:
* 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.
36
Getting Credit data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 14 15
Strength of legal rights index (0-10) 9 9 9 9
Depth of credit information index (0-6) 0 4 4 4
Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0
Public registry coverage (% of adults) 0.0 8.3 9.9 8.3
2. Historical data: Getting Credit in Albania
3. The following graphs illustrate the Getting Credit sub indicators in Albania over the past 4 years:
37
Getting Credit in Albania
The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit
registries in Albania.
Getting Credit Indicators (2010) Indicator
Private credit
bureau
Public credit
registry 4 Private bureau coverage (% of adults)
Are data on both firms and individuals distributed? 1No Yes
Are both positive and negative data distributed? 1No Yes
Does the registry distribute credit information from retailers, trade
creditors or utility companies as well as financial institutions?
0No No
Are more than 2 years of historical credit information distributed? 0No No
Is data on all loans below 1% of income per capita distributed? 1No Yes
Is it guaranteed by law that borrowers can inspect their data in the
largest credit registry?
1No Yes
Coverage 8.30.0
Number of individuals 0 190,399
Number of firms 0 7,506
Number of individuals 0 190,399
Number of firms 0 7,506
38
9 Strength of legal rights index (0-10)
Can any business use movable assets as collateral while keeping possession of the assets; and any financial
institution accept such assets as collateral ?
Yes
Does the law allow businesses to grant a non possessory security right in a single category of movable assets,
without requiring a specific description of collateral?
Yes
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without
requiring a specific description of collateral?
Yes
May a security right extend to future or after-acquired assets, and may it extend automatically to the products,
proceeds or replacements of the original assets ?
Yes
Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations
and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?
Yes
Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the
grantor's name of a security right ?
Yes
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? Yes
Does the law authorize parties to agree on out of court enforcement? Yes
39
40
1. Benchmarking Protecting Investors Regulations:
Albania is ranked 15 overall for Protecting Investors.
Ranking of Albania in Protecting Investors - Compared to good practice and selected economies:
41
Strength of
investor
protection
index (0-10)
New Zealand 9.7
Good Practice
Economies
Albania 7.3
Selected Economy
Bosnia and Herzegovina 5.0
Croatia 4.0
Greece 3.3
Hungary 4.3
Macedonia, FYR 6.7
Montenegro 6.3
Comparator Economies
The following table shows Protecting Investors data for Albania compared to good practice and comparator economies:
42
Protecting Investors data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 15 15
Strength of investor protection index (0-10) 2.7 7.3 7.3 7.3
2. Historical data: Protecting Investors in Albania
3. The following graph illustrates the Protecting Investors index in Albania compared to best practice
and selected Economies:
9.7
7.3
6.7
6.3
5.0
4.3
4.0
3.3
New
Zea
land
Alb
ania
Mac
edon
ia,
FYR
Mon
teneg
ro
Bosnia
and
Her
zego
vina
Hunga
ry
Cro
atia
Gre
ece
Note: The higher the score, the greater the investor protection.
43
The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are
calculated in Albania.
Protecting Investors in Albania
Protecting Investors Data (2010) Indicator
Extent of disclosure index (0-10) 8
What corporate body provides legally sufficient approval for the transaction?3
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?
2
Whether disclosure of the conflict of interest by Mr. James to the board of directors is
required?
2
Whether an external body must review the terms of the transaction before it takes place?1
Extent of director liability index (0-10) 9
Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller
transaction causes to the company?
2
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?
2
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?
1
44
Whether Mr. James repays profits made from the transaction upon a successful claim by the
shareholder plaintiff?
1
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?
1
Ease of shareholder suits index (0-10) 5
Whether the plaintiff can obtain any documents from the defendant and witnesses during
trial?
1
Whether the plaintiff can directly question the defendant and witnesses during trial?1
Whether the plaintiff can request categories of documents from the defendant without
identifying specific ones?
0
Whether shareholders owning 10% or less of Buyer's shares can request an inspector to
investigate the transaction?
1
Whether the level of proof required for civil suits is lower than that of criminal cases?1
Whether shareholders owning 10% or less of Buyer's shares can inspect transaction
documents before filing suit?
1
Strength of investor protection index (0-10) 7.3
45
46
1. Benchmarking Paying Taxes Regulations:
Albania is ranked 149 overall for Paying Taxes.
Ranking of Albania in Paying Taxes - Compared to good practice and selected economies:
47
Payments
(number per
year)
Time (hours
per year)
Total tax rate
(% profit)
Maldives* 3 0
Timor-Leste 0.2
Good Practice
Economies
Albania 44 360 40.6
Selected Economy
Bosnia and Herzegovina 51 422 23.0
Croatia 17 196 32.5
Greece 10 224 47.2
Hungary 14 277 53.3
Macedonia, FYR 40 119 10.6
Montenegro 77 372 26.6
Comparator Economies
The following table shows Paying Taxes data for Albania compared to good practice and comparator economies:
* The following economies are also good practice economies for :
Payments (number per year): Qatar
48
Paying Taxes data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 152 149
Total tax rate (% profit) 46.8 50.5 44.6 40.6
Payments (number per year) 44 44 44 44
Time (hours per year) 364 368 368 360
2. Historical data: Paying Taxes in Albania
3. The following graphs illustrate the Paying Taxes sub indicators in Albania over the past 4 years:
49
The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in
a given year in Albania, as well as measures of administrative burden in paying taxes.
Paying Taxes in Albania
Tax or mandatory
contribution
Payments
(number)
Notes on
Payments
Time
(hours)
Statutory tax
rate
Tax
base
Totaltax rate
(% profit)
Notes on
TTR
value added20.0% 144 12 Value added tax
0.00per truckALL 6,000 1 Vehicle tax
0.00value of
investment
2.0% 1 Tax on impact on
environment
0.40per truckALL 64,000 1 Circulation tax
0.80area of
building
(land) in
square meters
ALL 140 1 Property tax
1.00fuel price75% of
price, with a
maximum of
ALL37
1 Fuel tax
1.20sale price2.0% 1 Property transfer tax
1.40type of
business
ALL
225,000
1 Municipal taxes
50
2.50gross salaries1.7%paid jointly 0 Health insurance
contribution
8.50taxable profit10.0% 120 13 Corporate income tax
24.70gross salaries16.7% 96 12 Social security
contributions
Totals 44 360 40.6
51
52
1. Benchmarking Trading Across Borders Regulations:
Albania is ranked 75 overall for Trading Across Borders.
Ranking of Albania in Trading Across Borders - Compared to good practice and selected economies:
53
Documents to
export
(number)
Time to
export (days)
Cost to
export (US$
per
container)
Documents to
import
(number)
Time to
import (days)
Cost to
import (US$
per
container)
Denmark* 5
France 2 2
Malaysia 450
Singapore 4 439
Good Practice
Economies
Albania 7 19 725 9 18 710
Selected Economy
Bosnia and Herzegovina 5 16 1240 7 16 1200
Croatia 7 20 1281 8 16 1141
Greece 5 20 1153 6 25 1265
Hungary 5 18 1225 7 17 1215
Macedonia, FYR 6 12 1376 6 11 1380
Montenegro 6 14 775 6 14 890
Comparator Economies
The following table shows Trading Across Borders data for Albania compared to good practice and comparator
economies:
* The following economies are also good practice economies for :
Time to export (days): Estonia
54
Trading Across Borders data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 70 75
Cost to export (US$ per container) 745 770 725 725
Cost to import (US$ per container) 750 775 710 710
Documents to export (number) 7 7 7 7
Documents to import (number) 9 9 9 9
Time to export (days) 21 21 19 19
Time to import (days) 22 22 18 18
2. Historical data: Trading Across Borders in Albania
3. The following graphs illustrate the Trading Across Borders sub indicators in Albania over the past 4
years:
55
56
These tables list the procedures necessary to import and export a standardized cargo of goods in Albania. The documents
required to export and import the goods are also shown.
Trading Across Borders in Albania
Nature of Export Procedures (2010) Duration (days) US$ Cost
Documents preparation 11 130
Customs clearance and technical control 2 65
Ports and terminal handling 3 350
Inland transportation and handling 3 180
Totals 19 725
Nature of Import Procedures (2010) Duration (days) US$ Cost
Documents preparation 12 115
Customs clearance and technical control 2 65
Ports and terminal handling 2 350
Inland transportation and handling 2 180
Totals 18 710
57
Export
Bill of lading
Cargo release order
Certificate of origin
Commercial Invoice
Customs export declaration
Packing list
Technical standard/health certificate
Import
Bill of lading
Cargo release order
Certificate of origin
Commercial Invoice
Customs import declaration
Customs transit document
Packing list
Technical standard/health certificate
Terminal handling receipts
Documents for Export and Import
58
59
1. Benchmarking Enforcing Contracts Regulations:
Albania is ranked 89 overall for Enforcing Contracts.
Ranking of Albania in Enforcing Contracts - Compared to good practice and selected economies:
60
Procedures
(number)
Time (days) Cost (% of
claim)
Bhutan 0.1
Ireland 20
Singapore 150
Good Practice
Economies
Albania 39 390 38.7
Selected Economy
Bosnia and Herzegovina 37 595 40.4
Croatia 38 561 13.8
Greece 39 819 14.4
Hungary 35 395 15.0
Macedonia, FYR 37 370 33.1
Montenegro 49 545 25.7
Comparator Economies
The following table shows Enforcing Contracts data for Albania compared to good practice and comparator economies:
61
Enforcing Contracts data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 91 89
Procedures (number) 39 39 39 39
Time (days) 390 390 390 390
Cost (% of claim) 38.7 38.7 38.7 38.7
2. Historical data: Enforcing Contracts in Albania
3. The following graphs illustrate the Enforcing Contracts sub indicators in Albania over the past 4
years:
62
Enforcing Contracts in Albania
This topic looks at the efficiency of contract enforcement in Albania.
IndicatorNature of Procedure (2010)
Procedures (number) 39
Time (days) 390
Filing and service 30.0
Trial and judgment 180.0
Enforcement of judgment 180.0
Cost (% of claim)* 38.70
Attorney cost (% of claim) 21.6
Court cost (% of claim) 7.9
Enforcement Cost (% of claim) 9.2
63
* Claim assumed to be equivalent to 200% of income per capita.
Court information: Tirana District Court ("Gjykata e Rrethit Gjyqesor Te")
64
65
1. Benchmarking Closing Business Regulations:
Albania is ranked 183 overall for Closing a Business.
Ranking of Albania in Closing Business - Compared to good practice and selected economies:
66
Recovery rate
(cents on the
dollar)
Time (years) Cost (% of
estate)
Ireland 0.4
Japan 92.7
Singapore* 1
Good Practice
Economies
Albania 0.0 no practice no practice
Selected Economy
Bosnia and Herzegovina 34.7 3.3 9
Croatia 28.7 3.1 15
Greece 43.2 2.0 9
Hungary 37.9 2.0 15
Macedonia, FYR 20.7 2.9 28
Montenegro 43.4 2.0 8
Comparator Economies
The following table shows Closing Business data for Albania compared to good practice and comparator economies:
* The following economies are also good practice economies for :
Cost (% of estate): Colombia, Kuwait, Norway
67
Closing a Business data Doing Business
2008
Doing Business
2009
Doing Business
2010
Doing Business
2011
Rank .. .. 183 183
Time (years) no practice no practice no practice no practice
Cost (% of estate) no practice no practice no practice no practice
Recovery rate (cents on the dollar) 0.0 0.0 0.0 0.0
2. Historical data: Closing Business in Albania
3. The following graphs illustrate the Closing Business sub indicators in Albania over the past 4 years:
68
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.
Negative Change
Positive Change
Economy
Clo
sin
g a
Bu
sin
ess
En
forc
ing
Con
trac
ts
Tra
din
g A
cros
s B
ord
ers
Pay
ing
Tax
es
Pro
tect
ing
Inve
stor
s
Get
tin
g C
red
it
Reg
iste
rin
g P
rop
erty
Dea
lin
g w
ith
Con
stru
ctio
n
Per
mit
s
Sta
rtin
g a
Bu
sin
ess
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.
The top 10 most-improved in Doing Business 2011
69
Summary of changes to business regulation in top 10 most improved economies in Doing
Business 2011 and selected comparator economies.
Albania Albania made it easier and less costly for companies to pay taxes by amending several laws, reducing
social security contributions and introducing electronic filing and payment.
Bosnia and Herzegovina Bosnia and Herzegovina reduced delays in property registration at the land registry in Sarajevo. Bosnia
and Herzegovina simplified its labor tax processes, reduced employer contribution rates for social
security and abolished
its payroll tax.
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.
Croatia Croatia eased business start-up by allowing limited liability companies to file their registration
application with the court registries electronically through the notary public. Croatia replaced the
location permit and project design confirmation with a single certificate, simplifying and speeding up
the construction permitting process.
Greece Greece made transferring property more costly by increasing the transfer tax from 1% of the property
value to 10%.
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.
Macedonia, FYR FYR Macedonia made it easier to start a business by further improving its one-stop shop. FYR
Macedonia lowered tax costs for businesses by requiring that corporate income tax be paid only on
distributed profits.
Montenegro Montenegro eliminated several procedures for business start-up by introducing a single registration
form for submission to the tax administration. An amendment to Montenegro’s corporate income tax
law removed the obligation for advance payments and abolished the construction land charge.
Montenegro’s customs administration simplified trade by eliminating the requirement to present a
terminal handling receipt for exporting and importing.
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.
70
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.
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.
71
72