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    Doing Business Civ Doing Business Civ Document Transcript

    • Economy Profile:Côte dIvoire
    • © 2012 The International Bank for Reconstruction and Development /The World Bank1818 H Street NWWashington, DC 20433Telephone 202-473-1000Internet www.worldbank.orgAll rights reserved.1 2 3 4 08 07 06 05A 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 necessarilyreflect the views of the Executive Directors of the World Bank or thegovernments they represent. The World Bank does not guarantee the accuracyof the data included in this work.Rights and PermissionsThe material in this publication is copyrighted. Copying and/or transmittingportions or all of this work without permission may be a violation of applicablelaw. The World Bank encourages dissemination of its work and will normallygrant permission to reproduce portions of the work promptly.For permission to photocopy or reprint any part of this work, please send arequest with complete information to the Copyright Clearance Center, Inc.,222 Rosewood Drive, Danvers, MA 01923, USA; telephone 978-750-8400;fax 978-750-4470; Internet www.copyright.com.All other queries on rights and licenses, including subsidiary rights, should beaddressed to the Office of the Publisher, The World Bank, 1818 H Street NW,Washington, DC 20433, USA; fax 202-522-2422; e-mailpubrights@worldbank.org.Copies of Doing Business 2012: Doing Business in a More Transparent World,Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business2010: Reforming through Difficult Times, Doing Business 2009, Doing Business2008, Doing Business 2007: How to Reform, Doing Business in 2006: CreatingJobs, Doing Business in 2005: Removing Obstacles to Growth and Doing Businessin 2004: Understanding Regulations may be downloaded atwww.doingbusiness.org.ISBN: 978-0-8213-8833-4E-ISBN: 978-0-8213-8834-1DOI: 10.1596/978-0-8213-8833-4ISSN: 1729-2638Printed in the United States
    • Doing Business 2012 Côte dIvoire 3CONTENTSIntroduction .................................................................................................................................. 4The business environment .......................................................................................................... 5Starting a business ..................................................................................................................... 14Dealing with construction permits ........................................................................................... 24Getting electricity ....................................................................................................................... 34Registering property .................................................................................................................. 40Getting credit .............................................................................................................................. 49Protecting investors ................................................................................................................... 56Paying taxes ................................................................................................................................ 66Trading across borders .............................................................................................................. 74Enforcing contracts .................................................................................................................... 83Resolving insolvency .................................................................................................................. 90Data notes ................................................................................................................................... 96Resources on the Doing Business website ............................................................................ 101
    • Doing Business 2012 Côte dIvoire 4INTRODUCTIONDoing Business sheds light on how easy or difficult it is (except for the paying taxes indicators, which cover thefor a local entrepreneur to open and run a small to period January–December 2010).medium-size business when complying with relevant The Doing Business methodology has limitations. Otherregulations. It measures and tracks changes in areas important to business—such as an economy’sregulations affecting 10 areas in the life cycle of a proximity to large markets, the quality of itsbusiness: starting a business, dealing with construction infrastructure services (other than those related topermits, getting electricity, registering property, trading across borders and getting electricity), thegetting credit, protecting investors, paying taxes, security of property from theft and looting, thetrading across borders, enforcing contracts and transparency of government procurement,resolving insolvency. macroeconomic conditions or the underlying strengthIn a series of annual reports Doing Business presents of institutions—are not directly studied by Doingquantitative indicators on business regulations and the Business. The indicators refer to a specific type ofprotection of property rights that can be compared business, generally a local limited liability companyacross 183 economies, from Afghanistan to Zimbabwe, operating in the largest business city. Becauseover time. The data set covers 46 economies in Sub- standard assumptions are used in the data collection,Saharan Africa, 32 in Latin America and the Caribbean, comparisons and benchmarks are valid across24 in East Asia and the Pacific, 24 in Eastern Europe economies. The data not only highlight the extent ofand Central Asia, 18 in the Middle East and North obstacles to doing business; they also help identify theAfrica and 8 in South Asia, as well as 31 OECD high- source of those obstacles, supporting policy makers inincome economies. The indicators are used to analyze designing regulatory reform.economic outcomes and identify what reforms have More information is available in the full report. Doingworked, where and why. Business 2012 presents the indicators, analyzes theirThis economy profile presents the Doing Business relationship with economic outcomes andindicators for Côte dIvoire. To allow useful recommends regulatory reforms. The data, along withcomparison, it also provides data for other selected information on ordering Doing Business 2012, areeconomies (comparator economies) for each indicator. available on the Doing Business website atThe data in this report are current as of June 1, 2011 http://www.doingbusiness.org.
    • Doing Business 2012 Côte dIvoire 5THE BUSINESS ENVIRONMENTFor policy makers trying to improve their economy’sregulatory environment for business, a good place to ECONOMY OVERVIEWstart is to find out how it compares with the regulatoryenvironment in other economies. Doing Businessprovides an aggregate ranking on the ease of doing Region: Sub-Saharan Africabusiness based on indicator sets that measure andbenchmark regulations applying to domestic small to Income category: Lower middle incomemedium-size businesses through their life cycle.Economies are ranked from 1 to 183 by the ease of Population: 21,570,746doing business index. For each economy the index iscalculated as the ranking on the simple average of its GNI per capita (US$): 1,070.00percentile rankings on each of the 10 topics included inthe index in Doing Business 2012: starting a business, DB2012 rank: 167dealing with construction permits, getting electricity,registering property, getting credit, protecting DB2011 rank: 170investors, paying taxes, trading across borders, Change in rank: 3enforcing contracts and resolving insolvency. Theranking on each topic is the simple average of thepercentile rankings on its component indicators (see Note: See the data notes for sources andthe data notes for more details). 1 definitions.The aggregate ranking on the ease of doing businessbenchmarks each economy’s performance on theindicators against that of all other economies in theDoing Business sample (figure 1.1). While this rankingtells much about the business environment in aneconomy, it does not tell the whole story. The ranking onthe ease of doing business, and the underlyingindicators, do not measure all aspects of the businessenvironment that matter to firms and investors or thataffect the competitiveness of the economy. Still, a highranking does mean that the government has created aregulatory environment conducive to operating abusiness.1 Except for the ease of getting credit, for which the percentile rankings on its component indicators are weighted, the depth of creditinformation index at 37.5% and the strength of legal rights index at 62.5%.
    • Doing Business 2012 Côte dIvoire 6THE BUSINESS ENVIRONMENTFigure 1.1 Where economies stand in the global ranking on the ease of doing businessSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 7THE BUSINESS ENVIRONMENTFor policy makers, knowing where their economy the regional average (figure 1.2). The economy’sstands in the aggregate ranking on the ease of doing rankings on the topics included in the ease of doingbusiness is useful. Also useful is to know how it ranks business index provide another perspective (figurecompared with other economies and compared with 1.3).Figure 1.2 How Côte dIvoire and comparator economies rank on the ease of doing businessSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 8THE BUSINESS ENVIRONMENTFigure 1.3 How Côte dIvoire ranks on Doing Business topicsSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 9THE BUSINESS ENVIRONMENTJust as the overall ranking on the ease of doing This measure shows the distance of each economy tobusiness tells only part of the story, so do changes in the ―frontier,‖ a synthetic measure based on the mostthat ranking. Yearly movements in rankings can efficient practice or highest score observed for eachprovide some indication of changes in an economy’s Doing Business indicator across all economies andregulatory environment for firms, but they are always years included in the Doing Business sample sincerelative. An economy’s ranking might change because 2005. Nine areas of business regulation are covered.of developments in other economies. An economy that Comparing the measure for an economy at 2 points inimplemented business regulation reforms may fail to time allows users to assess how much the economy’srise in the rankings (or may even drop) if it is passed regulatory environment as measured by Doingby others whose business regulation reforms had a Business has changed over time—how far it has movedmore significant impact as measured by Doing toward (or away from) the most efficient practices andBusiness. strongest regulations in areas covered by DoingMoreover, year-to-year changes in the overall rankings Business (figure 1.4). The results may show that thedo not reflect how the business regulatory pace of change varies widely across the areasenvironment in an economy has changed over time— measured. They also may show that an economy isor how it has changed in different areas. To aid in relatively close to the frontier in some areas andassessing such changes, Doing Business 2012 relatively far from it in others.introduces the distance to frontier measure.Figure 1.4 How far has Côte dIvoire come in the areas measured by Doing Business?Distance to frontier, 2005 and 2011Note: For economies added to the Doing Business sample after 2005, the starting point is the year in which they were added: 2006 forMontenegro; 2007 for Brunei Darussalam, Liberia and Luxembourg; 2008 for The Bahamas, Bahrain and Qatar; and 2009 for Cyprus andKosovo. See the data notes for more details on the distance to frontier measure.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 10THE BUSINESS ENVIRONMENTThe absolute values of the indicators tell another part business regulation—such as a regulatory process thatof the story (table 1.1). The indicators, on their own or can be completed with a small number of proceduresin comparison with the indicators of a good practice in a few days and at a low cost. Comparison of theeconomy or those of comparator economies in the economy’s indicators today with those in the previousregion, may reveal bottlenecks reflected in large year may show where substantial bottlenecks persist—numbers of procedures, long delays or high costs. Or and where they are diminishing.they may reveal unexpected strengths in an area ofTable 1.1 Summary of Doing Business indicators for Côte dIvoire Best performer globally Côte dIvoire DB2012 Côte dIvoire DB2011 Burkina Faso DB2012 Senegal DB2012 Nigeria DB2012 Indicator Benin DB2012 Togo DB2012 Mali DB2012 DB2012 Starting a Business 170 171 154 116 115 116 93 174 New Zealand (1)(rank)Procedures (number) 10 10 6 3 4 8 3 7 Canada (1)*Time (days) 32 40 29 13 8 34 5 84 New Zealand (1) Cost (% of income per 132.6 133.0 149.9 47.7 90.5 70.6 68.0 177.2 Denmark (0.0)*capita)Paid-in Min. Capital (% 200.4 202.9 280.4 373.3 348.3 0.0 203.0 484.5 82 Economies (0.0)*of income per capita) Dealing with Hong Kong SAR,Construction Permits 169 168 117 59 95 84 125 146 China (1)(rank)Procedures (number) 18 18 12 12 11 15 13 12 Denmark (5)Time (days) 583 583 372 98 179 85 210 309 Singapore (26)* Cost (% of income per 204.8 207.3 132.6 345.0 439.3 504.8 435.2 994.0 Qatar (1.1)capita)
    • Doing Business 2012 Côte dIvoire 11 Best performer globally Côte dIvoire DB2012 Côte dIvoire DB2011 Burkina Faso DB2012 Senegal DB2012 Nigeria DB2012 Indicator Benin DB2012 Togo DB2012 Mali DB2012 DB2012Getting Electricity (rank) 73 76 140 139 113 176 168 92 Iceland (1)Procedures (number) 5 5 4 4 4 8 6 4 Germany (3)*Time (days) 33 33 158 158 120 260 125 74 Germany (17) Cost (% of income per 4002.3 4137.0 15205.3 13356.8 4397.7 1056.0 5938.9 6023.2 Japan (0.0)capita) Registering Property 158 154 130 111 91 180 171 162 New Zealand (3)(rank)Procedures (number) 6 6 4 4 5 13 6 5 Portugal (1)*Time (days) 62 62 120 59 29 82 122 295 Portugal (1) Cost (% of property 13.9 13.9 11.8 12.8 12.1 20.8 20.3 13.0 Slovak Republic (0.0)value)Getting Credit (rank) 126 152 126 126 126 78 126 126 United Kingdom (1)* Strength of legal rights 6 3 6 6 6 9 6 6 New Zealand (10)*index (0-10) Depth of credit 1 1 1 1 1 0 1 1 Japan (6)*information index (0-6) Public registry coverage 2.6 2.6 10.7 1.8 3.7 0.1 4.5 2.5 Portugal (86.2)(% of adults) Private bureau coverage 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 New Zealand (100.0)*(% of adults) Protecting Investors 155 153 155 147 147 65 166 147 New Zealand (1)(rank) Extent of disclosure 6 6 6 6 6 5 6 6 France (10)*index (0-10)
    • Doing Business 2012 Côte dIvoire 12 Best performer globally Côte dIvoire DB2012 Côte dIvoire DB2011 Burkina Faso DB2012 Senegal DB2012 Nigeria DB2012 Indicator Benin DB2012 Togo DB2012 Mali DB2012 DB2012 Extent of director 1 1 1 1 1 7 1 1 Singapore (9)*liability index (0-10) Ease of shareholder suits 3 3 3 4 4 5 2 4 New Zealand (10)*index (0-10)Strength of investor 3.3 3.3 3.3 3.7 3.7 5.7 3.0 3.7 New Zealand (9.7)protection index (0-10)Paying Taxes (rank) 159 153 170 147 163 138 174 161 Canada (8) Payments (number per 62 64 55 46 59 35 59 53 Norway (4)year)Time (hours per year) 270 270 270 270 270 938 666 270 Luxembourg (59) Trading Across Borders 161 160 129 175 146 149 65 98 Singapore (1)(rank) Documents to export 10 10 7 10 6 10 6 6 France (2)(number) Hong Kong SAR,Time to export (days) 25 25 30 41 26 24 11 24 China (5)* Cost to export (US$ per 1969 1969 1049 2412 2202 1263 1098 940 Malaysia (450)container) Documents to import 9 9 8 10 9 9 5 8 France (2)(number)Time to import (days) 36 36 32 49 31 39 14 28 Singapore (4) Cost to import (US$ per 2577 2577 1496 4030 3067 1440 1740 1109 Malaysia (435)container) Enforcing Contracts 124 124 176 108 132 97 145 151 Luxembourg (1)(rank)
    • Doing Business 2012 Côte dIvoire 13 Best performer globally Côte dIvoire DB2012 Côte dIvoire DB2011 Burkina Faso DB2012 Senegal DB2012 Nigeria DB2012 Indicator Benin DB2012 Togo DB2012 Mali DB2012 DB2012Time (days) 770 770 795 446 620 457 780 588 Singapore (150)Cost (% of claim) 41.7 41.7 64.7 81.7 52.0 32.0 26.5 47.5 Bhutan (0.1)Procedures (number) 33 33 42 37 36 40 43 41 Ireland (21)* Resolving Insolvency 70 81 127 103 111 99 86 93 Japan (1)(rank)Time (years) 2.2 2.2 4.0 4.0 3.6 2.0 3.0 3.0 Ireland (0.4)Cost (% of estate) 18 18 22 9 18 22 7 15 Singapore (1)* Recovery rate (cents on 37.6 32.8 20.2 27.3 24.9 28.2 32.0 30.5 Japan (92.7)the dollar)Note: The methodology for the paying taxes indicators changed in Doing Business 2012; see the data notes for details. For theseindicators, the best performer globally is the economy that has implemented the most efficient practices in its tax system and isnot necessarily the one with the highest ranking. For more information on “no practice” marks, see the data notes for details.* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates thenumber of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website(http://www.doingbusiness.org).Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 14STARTING A BUSINESSFormal registration of companies has many WHAT THE STARTING A BUSINESSimmediate benefits for the companies and forbusiness owners and employees. Legal entities can INDICATORS MEASUREoutlive their founders. Resources are pooled asseveral shareholders join forces to start a company. Procedures to legally start and operate aFormally registered companies have access to company (number)services and institutions from courts to banks as Preregistration (for example, namewell as to new markets. And their employees can verification or reservation, notarization)benefit from protections provided by the law. Anadditional benefit comes with limited liability Registration in the economy’s largestcompanies. These limit the financial liability of business citycompany owners to their investments, so personal Postregistration (for example, social securityassets of the owners are not put at risk. Where registration, company seal)governments make registration easy, moreentrepreneurs start businesses in the formal sector, Time required to complete each procedurecreating more good jobs and generating more (calendar days)revenue for the government. Does not include time spent gatheringWhat do the indicators cover? informationDoing Business measures the ease of starting a Each procedure starts on a separate daybusiness in an economy by recording all Procedure completed once final document isprocedures that are officially required or commonly receiveddone in practice by an entrepreneur to start up andformally operate an industrial or commercial No prior contact with officialsbusiness—as well as the time and cost required to Cost required to complete each procedurecomplete these procedures. It also records the (% of income per capita)paid-in minimum capital that companies mustdeposit before registration (or within 3 months). Official costs only, no bribesThe ranking on the ease of starting a business is No professional fees unless services requiredthe simple average of the percentile rankings on by lawthe 4 component indicators: procedures, time, costand paid-in minimum capital requirement. Paid-in minimum capital (% of income per capita)To make the data comparable across economies,Doing Business uses several assumptions about the Deposited in a bank or with a notary beforebusiness and the procedures. It assumes that all registration (or within 3 months)information is readily available to the entrepreneur  Has a start-up capital of 10 times income perand that there has been no prior contact with capita.officials. It also assumes that all government andnongovernment entities involved in the process  Has a turnover of at least 100 times income per capita.function without corruption. And it assumes thatthe business:  Does not qualify for any special benefits. Is a limited liability company, located in the  Does not own real estate. largest business city.  Is 100% domestically owned. Conducts general commercial or industrial activities.
    • Doing Business 2012 Côte dIvoire 15STARTING A BUSINESSWhere does the economy stand today?What does it take to start a business in Côte dIvoire? costs 132.6% of income per capita and requires paid-inAccording to data collected by Doing Business, starting minimum capital of 200.4% of income per capitaa business there requires 10 procedures, takes 32 days, (figure 2.1).Figure 2.1 What it takes to start a business in Côte dIvoirePaid-in minimum capital (% of income per capita): 200.4Note: For details on the procedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 16STARTING A BUSINESSGlobally, Côte dIvoire stands at 170 in the ranking of and the regional average ranking provide other useful183 economies on the ease of starting a business information for assessing how easy it is for an(figure 2.2). The rankings for comparator economies entrepreneur in Côte dIvoire to start a business.Figure 2.2 How Côte dIvoire and comparator economies rank on the ease of starting a businessSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 17STARTING A BUSINESSWhat are the changes over time?While the most recent Doing Business data reflect how the process have changed—and which have not (tableeasy (or difficult) it is to start a business in Côte 2.1). That can help identify where the potential fordIvoire today, data over time show which aspects of improvement is greatest.Table 2.1 The ease of starting a business in Côte dIvoire over timeBy Doing Business report yearIndicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. .. .. 171 170Procedures (number) 11 11 11 11 10 10 10 10 10Time (days) 62 58 45 45 40 40 40 40 32 Cost (% of income per 139.5 133.6 134.9 134.1 135.8 135.1 133.3 133.0 132.6capita)Paid-in Min. Capital (% 212.5 222.3 225.2 226.7 219.8 215.9 204.9 202.9 200.4of income per capita)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes tothe methodology.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 18STARTING A BUSINESSEqually helpful may be the benchmarks provided by Côte dIvoire on ways to improve the ease of starting athe economies that today have the best performance business. And changes in regional averages can showregionally or globally on the procedures, time, cost or where Côte dIvoire is keeping up—and where it ispaid-in minimum capital required to start a business falling behind.(figure 2.3). These economies may provide a model forFigure 2.3 Has starting a business become easier over time?Procedures (number)Time (days)
    • Doing Business 2012 Côte dIvoire 19STARTING A BUSINESSCost (% of income per capita)Paid-in minimum capital (% of income per capita)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator. In the case of paid-in minimum capital, 82 economies globally and economies in Sub-Saharan Africa have nopaid-in minimum capital.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 20STARTING A BUSINESSEconomies around the world have taken steps making greater firm satisfaction and savings and moreit easier to start a business—streamlining procedures registered businesses, financial resources and jobby setting up a one-stop shop, making procedures opportunities.simpler or faster by introducing technology and What business registration reforms has Doing Businessreducing or eliminating minimum capital requirements. recorded in Côte dIvoire (table 2.2)?Many have undertaken business registration reforms instages—and they often are part of a larger regulatoryreform program. Among the benefits have beenTable 2.2 How has Côte dIvoire made starting a business easier—or not?By Doing Business report year DB Year Reform Côte d’Ivoire made starting a business easier by reorganizing DB2012 the court clerk’s office where entrepreneurs file their company documents. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 21STARTING A BUSINESSWhat are the details?Underlying the indicators shown in this chapter for STANDARDIZED COMPANYCôte dIvoire is a set of specific procedures—thebureaucratic and legal steps that an entrepreneurmust complete to incorporate and register a new City: Abidjanfirm. These are identified by Doing Businessthrough collaboration with relevant local Legal Form: Société à Responsabilité Limitée (SARL) - Limitedprofessionals and the study of laws, regulations and Liability Companypublicly available information on business entry in Start-up capital: 10 times GNI per capitathat economy. Following is a detailed summary ofthose procedures, along with the associated time Paid-in minimum capital (% of income perand cost. These procedures are those that apply to capita): 200.4a company matching the standard assumptions(the ―standardized company‖) used by DoingBusiness in collecting the data (see the section inthis chapter on what the indicators measure).Summary of procedures for starting a business in Côte dIvoire—and the time and cost Time to No. Procedure Cost to complete complete Deposit the initial capital in a bank and obtain a receipt 1 1 day no charge Obtain two extracts of the criminal record of the managers 2 4 days XOF 3000 * A notary certifies the paid-in capital The procedure varies according if the notary deposits the capital or if 10% of initial capital 2 days (simultaneous the applicant deposits the capital. (including notary fees, 3 with previous If the capital is deposited in a bank account, the deposit attestation : registration and procedure) "lattestation de dépôt" is usually given the same or the following day stamps cost) depending on the bank. If the applicant goes to the notary to deposit the min capital, then it takes un minimum of 7 days. Register with the Direction de l’Enregistrement et du Timbre Registration with Direction de lEnregistrement et du Timbre must take place within a month of the date of signing of the statutes. Otherwise, the registration and stamp duty fees double. included in procedure 4 Duty: 7 days 3 - If capital is less than or equal to FCFA 5 billion: 0.6% of capital. - If capital is FCFA 5 billion or more: 0.2% of capital. Stamps duties must be paid on articles of incorporation as well as on the notary statement (DNSV) at a cost of 500 FCFA per page. Recording the DNSV is subject to a fixed fee of FCFA 18.000
    • Doing Business 2012 Côte dIvoire 22 Time toNo. Procedure Cost to complete complete Publish the formation notice in a legal journal Publication of a company formation notice in the official gazette5 ―Journal officiel‖ or a newspaper shall be accomplished within a period 3 days XOF 8760 per line of fifteen days following registration. The insertion of the legal notice, signed by the notary or by the founders costs 8 760 FCFA/line; the total cost depends of the number of lines of the notice. Legalization of the copies of newspaper publication by the local council services6 2 days XOF 2100 Three samples of the newspaper are bought for FCFA 600, and their authentication cost is FCFA 1,500. Representatives from the respective legal journals must authenticate the copy that contains the notice. File documents with the Court’s Clerk Office (Greffe du Tribunal) with the Registre du Commerce et du Crédit Mobilier (RCCM) Costs to file the documents are as follows: - Declaration de constitution de société (M0 and M0bis) (five printed forms): No charge. - Commercial registration at the RCCM : FCFA 50,000. - Deposit of articles of incorporation and DNSV: FCFA 5,000. Notes: (1) For the deposit of any other document at the Commercial Registry (e.g., a resolution), a fixed fee of FCFA 5,000 applies. (2) The declaration forms can be picked up in the Chamber of Commerce and Industry to save time waiting for the Court’s Clerk to complete them.7 The following documents must be attached to the application: 3 days XOF 55000 - The form ―Declaration de constitution de société‖ (M0 and M0bis) (four printed copies). Forms are free and available at the Registre du Commerce et du Crédit Mobilier (RCCM) or the Chamber of Commerce and Industry. - The DNSV (two originals or certified copies). - The statutes (two originals or certified copies). - The subscription list (two originals or certified copies). - The resolution designating the managers (two originals or certified copies). - The criminal records of the managers (two originals extracts). Note: The criminal records must be delivered by the Ivorian authorities. If the managers are not of Ivorian nationality, an original extract of their criminal record (or an equivalent document) must be delivered by their native country’s authorities. File a declaration of commencement of business (Déclaration Fiscale d’Existence) with the Tax Department, Ministry of Economy and Finance8 10 days XOF 5000 According to the 2005 fiscal law (dated April 25, 2005), any company that intends to create a business must declare its activity and register for taxes before beginning its activity. That formality triggers the
    • Doing Business 2012 Côte dIvoire 23 Time to No. Procedure Cost to complete complete payment in advance of the business license tax. The declaration covers all taxes. Upon filing the declaration dexistence fiscale and paying the business license tax (patente), the company receives a taxpayer account (numéro de compte contribuable). The local tax office calculates the amount of the business license tax on the basis of (a) the estimated annual turnover for the first year of operation; and (b) the cost of the business premises’ rent (or an estimation of the value of the premises if owned by the company). Register the employees with the National Social Security Fund (CNPS) A newly formed company must apply for its social registration near the Caisse Nationale de Prévoyance Sociale (CNPS), by presenting the following documents: - A registration form (available at the CNPS). - The company’s commercial registration (one copy). - The company’s tax registration (one copy). - A receipt of utility (electricity or water) payment (one copy). - The national identity card of the company’s managing director (one copy). 9 1 day no charge The registration number (numéro matricule) is now sent electronically to the entrepreneur. In addition, employees must be registered near the CNPS. To that end, the following must be filed with the CNPS: - Completed registration form (available near the CNPS). - National identity card or birth certificate of the employee (one copy). - Identity photos of the employee (two). - Marriage certificate of the employee, if any (one copy). - Birth certificate of children, if any (one copy). - Social security number of the employee, if any (for employees with work history). Obtain a company seal 10 1 day XOF 10000* Takes place simultaneously with another procedure.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 24DEALING WITH CONSTRUCTION PERMITSRegulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTIONpublic. But it needs to be efficient, to avoid PERMITS INDICATORS MEASUREexcessive constraints on a sector that plays animportant part in every economy. Where complyingwith building regulations is excessively costly in Procedures to legally build a warehousetime and money, many builders opt out. They may (number)pay bribes to pass inspections or simply build Submitting all relevant documents andillegally, leading to hazardous construction that obtaining all necessary clearances, licenses,puts public safety at risk. Where compliance is permits and certificatessimple, straightforward and inexpensive, everyone Completing all required notifications andis better off. receiving all necessary inspectionsWhat do the indicators cover? Obtaining utility connections for water,Doing Business records the procedures, time and sewerage and a fixed telephone linecost for a business to obtain all the necessary Registering the warehouse after itsapprovals to build a simple commercial warehouse completion (if required for use as collateral orin the economy’s largest business city, connect it to for transfer of the warehouse)basic utilities and register the property so that it Time required to complete each procedurecan be used as collateral or transferred to another (calendar days)entity. Does not include time spent gatheringThe ranking on the ease of dealing with informationconstruction permits is the simple average of the Each procedure starts on a separate daypercentile rankings on its component indicators:procedures, time and cost. Procedure completed once final document is receivedTo make the data comparable across economies,Doing Business uses several assumptions about the No prior contact with officialsbusiness and the warehouse, including the utility Cost required to complete each procedure (%connections. of income per capita)The business: Official costs only, no bribes  Is a limited liability company operating in  Will be connected to water, sewerage the construction business and located in (sewage system, septic tank or their the largest business city. equivalent) and a fixed telephone line. The  Is domestically owned and operated. connection to each utility network will be 10 meters (32 feet, 10 inches) long.  Has 60 builders and other employees.  Will be used for general storage, such as ofThe warehouse: books or stationery (not for goods requiring  Is a new construction (there was no special conditions). previous construction on the land).  Will take 30 weeks to construct (excluding all  Has complete architectural and technical delays due to administrative and regulatory plans prepared by a licensed architect. requirements).
    • Doing Business 2012 Côte dIvoire 25DEALING WITH CONSTRUCTION PERMITSWhere does the economy stand today?What does it take to comply with the formalities to permits there requires 18 procedures, takes 583 daysbuild a warehouse in Côte dIvoire? According to data and costs 204.8% of income per capita (figure 3.1).collected by Doing Business, dealing with constructionFigure 3.1 What it takes to comply with formalities to build a warehouse in Côte dIvoireNote: For details on the procedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 26DEALING WITH CONSTRUCTION PERMITSGlobally, Côte dIvoire stands at 169 in the ranking of ranking provide other useful information for assessing183 economies on the ease of dealing with how easy it is for an entrepreneur in Côte dIvoire toconstruction permits (figure 3.2). The rankings for legally build a warehouse.comparator economies and the regional averageFigure 3.2 How Côte dIvoire and comparator economies rank on the ease of dealing with constructionpermitsSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 27DEALING WITH CONSTRUCTION PERMITSWhat are the changes over time?While the most recent Doing Business data reflect how aspects of the process have changed—and which haveeasy (or difficult) it is to deal with construction permits not (table 3.1). That can help identify where thein Côte dIvoire today, data over time show which potential for improvement is greatest.Table 3.1 The ease of dealing with construction permits in Côte dIvoire over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. 168 169Procedures (number) 18 18 18 18 19 18 18Time (days) 619 619 619 619 620 583 583 Cost (% of income per 231.2 232.9 225.8 221.7 210.4 207.3 204.8capita)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes tothe methodology. For more information on “no practice” marks, see the data notes for details.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 28DEALING WITH CONSTRUCTION PERMITSEqually helpful may be the benchmarks provided by dIvoire on ways to improve the ease of dealing withthe economies that today have the best performance construction permits. And changes in regionalregionally or globally on the procedures, time or cost averages can show where Côte dIvoire is keeping up—required to deal with construction permits (figure 3.3). and where it is falling behind.These economies may provide a model for CôteFigure 3.3 Has dealing with construction permits become easier over time?Procedures (number)Time (days)
    • Doing Business 2012 Côte dIvoire 29DEALING WITH CONSTRUCTION PERMITSCost (% of income per capita)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator. In cases where no data are displayed above for the economy, this indicates that the economy has received a“no practice” mark; see the data notes for details.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 30DEALING WITH CONSTRUCTION PERMITSSmart regulation ensures that standards are met while building safety while keeping compliance costsmaking compliance easy and accessible to all. reasonable, governments around the world haveCoherent and transparent rules, efficient processes and worked on consolidating permitting requirements.adequate allocation of resources are especially What construction permitting reforms has Doingimportant in sectors where safety is at stake. Business recorded in Côte dIvoire (table 3.2)?Construction is one of them. In an effort to ensureTable 3.2 How has Côte dIvoire made dealing with construction permits easier—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 Côte d’Ivoire eased construction permitting by eliminating the need to obtain a preliminary approval. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 31DEALING WITH CONSTRUCTION PERMITSWhat are the details? The indicators reported here for Côte dIvoire are BUILDING A WAREHOUSEbased on a set of specific procedures—the stepsthat a company must complete to legally build awarehouse—identified by Doing Business through City : Abidjaninformation collected from experts in constructionlicensing, including architects, construction Estimatedlawyers, construction firms, utility service providers XOF 455,210,000 Warehouse Value :and public officials who deal with buildingregulations. These procedures are those that apply The procedures, along with the associated time andto a company and structure matching the standard cost, are summarized below.assumptions used by Doing Business in collectingthe data (see the section in this chapter on whatthe indicators cover).Summary of procedures for dealing with construction permits in Côte dIvoire —and the timeand cost Time to No. Procedure Cost to complete complete Obtain recent proof of land title 1 30 days XOF 5,000 Only about 30% of landowners have a property title. Obtain topographical surveys by an authorized land surveyor (6 copies) 2 75 days XOF 710,000 In an urban zone, the cost for the technical dossier that is the basis for six excerpts is fixed at XOF 710,000 by the Order of Land Surveyors. The land surface is taken into account in rural areas. Obtain approval of survey excerpts by water authorities (Société de Distribution D’Eau de Côte D’Ivoire) 3 BuildCo must submit to the electricity company six copies of the 10 days no charge topographical surveys and the property titles. The electricity company must be informed about the type of electricity needed (low or medium tension). Obtain approval of survey excerpts by electricity company (Compagnie Ivoirienne D’Electricité de Côte D’Ivoire) 4 10 days no charge BuildCo must submit to the water company six copies of the topographical surveys and property titles. Obtain approval of survey excerpts by land authorities (Domaine Urbain or Conservation Foncière) 70 days XOF 5,000 5 Obtain certificate of town-planning 6 30 days XOF 5,000 7 Obtain approval of plans by decontamination department 30 days XOF 5,000
    • Doing Business 2012 Côte dIvoire 32 Time toNo. Procedure Cost to complete complete (direction d’assainissement) Submit building plans for approval by the President of the Order of Architects. 1 day no charge8 Obtain Building Permit The dossier required to obtain a building permit comprises the following documents: - Block plan (scale,1/500, 1/200, 1/100). - Execution plan (scale 1/50). - Summary of technical specifications. - Summary of cost estimates. - Proof of property ownership - Written approval from the Minister of Urban Planning. Six copies of the dossier must be sent to the Building Permit Commission. The commission is comprised of the Construction Minister, a representative of the 200 days XOF 70,0009 municipality, a representative of the Civil Protection Department, a representative from the Hygiene Department, and a representative from the Order of Architects. The building permit is obtained in an average of 4 to 6 months if one does not pay bribes. Two weeks after submission, the dossier is sent to the municipality, where the permit fee is paid. An independent external architect will be contracted to review the application if project cost is higher than XOF 30 million or for the construction of cinemas, factories, schools, pharmacies, or any building open to the public. Obtain plan approval by central municipality Although a municipal representative is part of the building permit10 commission, BuildCo must also obtain the approval of the central 20 days XOF 50,000 municipality, which delivers the building authorization number. The municipality’s participation in the commission is limited to technical advice. Obtain approval of plans by fire department11 14 days no charge Receive inspection from the national security commission to verify that the building is conform to security standards 1 day no charge12 The inspections are unannounced. Obtain certificate of conformity13 75 days no charge Request water connection14 1 day no charge Receive site inspection by water company15 1 day no charge The inspection takes place within a week of applying for electricity. The cost estimate is given days after the inspection. Obtain water connection 14 days XOF 130,00016
    • Doing Business 2012 Côte dIvoire 33 Time to No. Procedure Cost to complete complete It takes 7 days to obtain the connection once the payment is made. The total time, from the application to the final connection, may take up to a month if no preliminary installation was made. The water service agency is generally efficient, and the connection can be obtained quickly. * Request phone line 17 A site plan is attached to the application. Inspections only take place for 7 days XOF 22,000 complicated cases. One may pay for the phone connection at the time of the application. Request and receive inspection from "SECUREL", Laboratory of Buildings and Public Works 18 1 day XOF 20,000 If one pays for the inspector’s transportation, the inspection can occur the same day. Otherwise, it will take place in 2 days.* Takes place simultaneously with another procedure.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 34GETTING ELECTRICITYAccess to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITYfor businesses. To counter weak electricity supply,many firms in developing economies have to rely INDICATORS MEASUREon self-supply, often at a prohibitively high cost.Whether electricity is reliably available or not, the Procedures to obtain an electricityfirst step for a customer is always to gain access by connection (number)obtaining a connection. Submitting all relevant documents andWhat do the indicators cover? obtaining all necessary clearances and permitsDoing Business records all procedures required for Completing all required notifications anda local business to obtain a permanent electricity receiving all necessary inspectionsconnection and supply for a standardizedwarehouse, as well as the time and cost to Obtaining external installation works andcomplete them. These procedures include possibly purchasing material for these worksapplications and contracts with electricity utilities, Concluding any necessary supply contract andclearances from other agencies and the external obtaining final supplyand final connection works. The ranking on theease of getting electricity is the simple average of Time required to complete each procedurethe percentile rankings on its component (calendar days)indicators: procedures, time and cost. To make the Is at least 1 calendar daydata comparable across economies, severalassumptions are used. Each procedure starts on a separate dayThe warehouse: Does not include time spent gathering information  Is located in the economy’s largest business city, in an area where other Reflects the time spent in practice, with little warehouses are located. follow-up and no prior contact with officials  Is not in a special economic zone where Cost required to complete each procedure the connection would be eligible for (% of income per capita) subsidization or faster service. Official costs only, no bribes  Has road access. The connection works Excludes value added tax involve the crossing of a road or roads but are carried out on public land.  Is 150 meters long.  Is a new construction being connected to  Is to either the low-voltage or the medium- electricity for the first time. voltage distribution network and either overhead  Has 2 stories, both above ground, with a or underground, whichever is more common in total surface of about 1,300.6 square the economy and in the area where the meters (14,000 square feet), and is built on warehouse is located. The length of any a plot of 929 square meters (10,000 square connection in the customer’s private domain is feet). negligible.The electricity connection:  Involves installing one electricity meter. The monthly electricity consumption will be 0.07 Is a 3-phase, 4-wire Y, 140-kilovolt-ampere gigawatt-hour (GWh). The internal electrical (kVA) (subscribed capacity) connection. wiring has been completed.
    • Doing Business 2012 Côte dIvoire 35GETTING ELECTRICITYWhere does the economy stand today?What does it take to obtain a new electricity requires 5 procedures, takes 33 days and costsconnection in Côte dIvoire? According to data 4002.3% of income per capita (figure 4.1).collected by Doing Business, getting electricity thereFigure 4.1 What it takes to obtain an electricity connection in Côte dIvoireNote: For details on the procedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 36GETTING ELECTRICITYGlobally, Côte dIvoire stands at 73 in the ranking of perspective in assessing how easy it is for an183 economies on the ease of getting electricity entrepreneur in Côte dIvoire to connect a warehouse(figure 4.2). The rankings for comparator economies to electricity.and the regional average ranking provide anotherFigure 4.2 How Côte dIvoire and comparator economies rank on the ease of getting electricitySource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 37GETTING ELECTRICITYEven more helpful than rankings for other economies economies, the practices of their utilities may provide amay be the indicators underlying those rankings (table model for Côte dIvoire on ways to improve the ease of4.1). If obtaining a new electricity connection requires getting electricity. Regional and global averages onfewer procedures, less time or less cost in other these indicators may provide useful benchmarks.Table 4.1 The ease of getting electricity in Côte dIvoire and comparator economies Global average Africa average Côte dIvoire Burkina Faso Sub-Saharan Senegal Nigeria Benin Togo Mali IndicatorRank 73 140 139 113 176 168 92 122 ..Procedures (number) 5 4 4 4 8 6 4 5 5Time (days) 33 158 158 120 260 125 74 137 111 Cost (% of income percapita) 4002.3 15205.3 13356.8 4397.7 1056.0 5938.9 6023.2 5,429.8 1,942.3Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 38GETTING ELECTRICITYWhat are the details?The indicators reported here for Côte dIvoire are OBTAINING AN ELECTRICITY CONNECTIONbased on a set of specific procedures—the steps thatan entrepreneur must complete to get a warehouseconnected to electricity by the local distribution City: Abidjanutility—identified by Doing Business. Data are collectedfrom the distribution utility, then completed and Name of Utility: Compagnie Ivoirienneverified by electricity regulatory agencies and dElectricité (CIE)independent professionals such as electrical engineers, The procedures are those that apply to a warehouseelectrical contractors and construction companies. The and electricity connection matching the standardelectricity distribution utility surveyed is the one assumptions used by Doing Business in collecting theserving the area (or areas) in which warehouses are data (see the section in this chapter on what thelocated. If there is a choice of distribution utilities, the indicators cover). The procedures, along with theone serving the largest number of customers is associated time and cost, are summarized below.selected.Summary of procedures for getting electricity in Côte dIvoire—and the time and cost Time to No. Procedure Cost to complete complete Submit application for a new connection with the local Compagnie Ivoirienne dElectricité (CIE) customer office and await estimate 1 The application has to be submitted in person. The following documents 14 calendar days no charge have to be attached: the certificate confirming the security of the internal wiring, a topographique excerpt or the building permit to justify the quality of the land owner. * Obtain conformity control of the internal wiring at government agency SECUREL 2 Before applying for a new connection, the customer has to ask for an 11 calendar days XOF 200,000.0 internal inspection at LBTP/Securel to obtain a certificate of conformity. SECUREL is a government agency that was created to check the internal wiring in buildings of new customers. * Compagnie Ivoirienne dElectricité (CIE) carries out external inspection of the site 3 CIE is coming to the site to do an external inspection to determine the 3 calendar days no charge cost of the connection and to do a technical study that details what works have to be done. Someone from the customer’s party has to be present. Hire electrical contractor, bring material for testing, await completion of external connection works, receive inspections 4 For a requested load of 140kVA, in general an additional transformer 19 calendar days XOF 19,768,097.8 needs to be installed. The customer would hire an electrical contractor to buy the material and to install the transformer. The contractor of the client brings the material to CIE for an inspection/testing. Transformers
    • Doing Business 2012 Côte dIvoire 39 Time to No. Procedure Cost to complete complete of 160kVA are usually available at the utility. There would be no waiting time to buy a transformer. The customer would have to pay the full cost for the transformer and the installation. The electrical contractor would also do the final connection. The utility is supervising the work of the electrical contractor. Basically, the utility would pass by every day to check and supervise the works executed by the contractor. * CIE installs the meter and conclude supply contract with Compagnie Ivoirienne dElectricité (CIE) 5 The customer would conclude a supply contract with CIE. To conclude a 14 calendar days no charge supply contract, the customer would have to submit the certificate of conformity of the internal wiring and the number of the new connection or the estimate of the new connection. CIE installs the meter.* Takes place simultaneously with another procedure.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 40REGISTERING PROPERTYEnsuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTYEffective administration of land is part of that. If INDICATORS MEASUREformal property transfer is too costly orcomplicated, formal titles might go informalagain. And where property is informal or poorly Procedures to legally transfer title onadministered, it has little chance of being immovable property (number)accepted as collateral for loans—limiting access to Preregistration (for example, checking for liens,finance. notarizing sales agreement, paying property transfer taxes)What do the indicators cover? Registration in the economy’s largest businessDoing Business records the full sequence of cityprocedures necessary for a business to purchaseproperty from another business and transfer the Postregistration (for example, filing title with the municipality)property title to the buyer’s name. The transactionis considered complete when it is opposable to Time required to complete each procedurethird parties and when the buyer can use the (calendar days)property, use it as collateral for a bank loan or Does not include time spent gatheringresell it. The ranking on the ease of registering informationproperty is the simple average of the percentilerankings on its component indicators: procedures, Each procedure starts on a separate daytime and cost. Procedure completed once final document is receivedTo make the data comparable across economies,several assumptions about the parties to the No prior contact with officialstransaction, the property and the procedures are Cost required to complete each procedureused. (% of property value)The parties (buyer and seller): Official costs only, no bribes  Are limited liability companies, 100% No value added or capital gains taxes included domestically and privately owned.  Are located in the periurban area of the economy’s largest business city.  Has no mortgages attached and has been under the same ownership for the past 10  Have 50 employees each, all of whom are years. nationals.  Consists of 557.4 square meters (6,000 square  Perform general commercial activities. feet) of land and a 10-year-old, 2-storyThe property (fully owned by the seller): warehouse of 929 square meters (10,000  Has a value of 50 times income per capita. square feet). The warehouse is in good The sale price equals the value. condition and complies with all safety standards, building codes and legal  Is registered in the land registry or requirements. The property will be transferred cadastre, or both, and is free of title in its entirety. disputes.  Is located in a periurban commercial zone, and no rezoning is required.
    • Doing Business 2012 Côte dIvoire 41REGISTERING PROPERTYWhere does the economy stand today?What does it take to complete a property transfer in procedures, takes 62 days and costs 13.9% of theCôte dIvoire? According to data collected by Doing property value (figure 5.1).Business, registering property there requires 6Figure 5.1 What it takes to register property in Côte dIvoireNote: For details on the procedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 42REGISTERING PROPERTYGlobally, Côte dIvoire stands at 158 in the ranking of and the regional average ranking provide other useful183 economies on the ease of registering property information for assessing how easy it is for an(figure 5.2). The rankings for comparator economies entrepreneur in Côte dIvoire to transfer property.Figure 5.2 How Côte dIvoire and comparator economies rank on the ease of registering propertySource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 43REGISTERING PROPERTYWhat are the changes over time?While the most recent Doing Business data reflect how the process have changed—and which have not (tableeasy (or difficult) it is to register property in Côte 5.1). That can help identify where the potential fordIvoire today, data over time show which aspects of improvement is greatest.Table 5.1 The ease of registering property in Côte dIvoire over timeBy Doing Business report year Indicator DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. .. 154 158Procedures (number) 7 7 6 6 6 6 6 6Time (days) 397 397 62 62 62 62 62 62 Cost (% of propertyvalue) 13.9 14.0 14.0 13.9 13.9 13.9 13.9 13.9Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changesto the methodology. For more information on “no practice” marks, see the data notes for details.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 44REGISTERING PROPERTYEqually helpful may be the benchmarks provided by dIvoire on ways to improve the ease of registeringthe economies that today have the best performance property. And changes in regional averages can showregionally or globally on the procedures, time or cost where Côte dIvoire is keeping up—and where it isrequired to complete a property transfer (figure 5.3). falling behind.These economies may provide a model for CôteFigure 5.3 Has registering property become easier over time?Procedures (number)Time (days)
    • Doing Business 2012 Côte dIvoire 45REGISTERING PROPERTYCost (% of property value)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator. In cases where no data are displayed above for the economy, this indicates that the economy has received a“no practice” mark; see the data notes for details.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 46REGISTERING PROPERTYEconomies worldwide have been making it easier for have cut the time required substantially—enablingentrepreneurs to register and transfer property—such buyers to use or mortgage their property earlier. Whatas by computerizing land registries, introducing time property registration reforms has Doing Businesslimits for procedures and setting low fixed fees. Many recorded in Côte dIvoire (table 5.2)?Table 5.2 How has Côte dIvoire made registering property easier—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 47REGISTERING PROPERTYWhat are the details?The indicators reported here are based on a set of STANDARD PROPERTY TRANSFERspecific procedures—the steps that a buyer andseller must complete to transfer the property to thebuyer’s name—identified by Doing Business City: Abidjanthrough information collected from local property Property Value: 24,945,632.3lawyers, notaries and property registries. Theseprocedures are those that apply to a transaction The procedures, along with the associated time andmatching the standard assumptions used by Doing cost, are summarized below.Business in collecting the data (see the section inthis chapter on what the indicators cover).Summary of procedures for registering property in Côte dIvoire—and the time and cost Time to No. Procedure Cost to complete complete * The notary solicits the real estate rights record before the Services de la Conservation Foncière 10 days 3,000 FCFA + 1.7 to The notary will usually perform the entire process on behalf of the (simultaneous with 2.7% property value 1 parties and charge them between 16% and 17% property value including procedures 2 and 3) (notary fees) his fees as well as all necessary taxes and fees during the process. The taxes and fees alone would cost approximately 14.3% property value, hence the 1.7 - 2.7% fees calculation. * The notary obtains a tax clearance 2-4 days The notary should obtain a tax clearance on the property stating that all (simultaneous with 5,000 FCFA 2 property taxes related to it have been paid. He can execute the contract procedures 1 and 3) on behalf of the parties without the clearance, but must obtain it within one month. * Obtain a Location Certificate According to the Law, article 36 of the Loi de Finances of 2002-156 du 15 3 days 3 mars 2002, it is required to obtain a Location Certificate. This certificate (simultaneous with 100,000 FCFA will is done by a registered Surveyor (Geometre) and the certificate will procedures 1 and 2) describe the buildings, information about the property title and the boundaries of the property. Prepare sale deed no cost (honoraria of 4 10 days (variable) the notary) The notary prepares the sale deed that both parties will sign. Deposit the sale agreement for registration at the local tax 10% property value authorities (proportional 10 days registration fees) + 5 The notary files the sale agreement with the Tax authorities to be 3% for Capital Gains registered. The registration fee representing 10% of the property value Tax (not included in is paid at that time. calculation and paid
    • Doing Business 2012 Côte dIvoire 48 Time to No. Procedure Cost to complete complete by the Vendor) Register the transfer at the Land Registry "Administration de la Conservation Fonciere et du Cadastre" 15,000 FCFA (new property certificate) 6 The notary will request a name transfer at the Land registry. The transfer 32 days + 1.2% (transfer tax tax is as follows: + salaire du 0.4% the Registrar salary conservateur) 0.8% recettes domaniales* Takes place simultaneously with another procedure.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 49GETTING CREDITTwo types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORScredit and improve its allocation: credit information MEASUREsystems and the legal rights of borrowers andlenders in collateral and bankruptcy laws. Creditinformation systems enable lenders to view a Strength of legal rights index (0–10)potential borrower’s financial history (positive or Protection of rights of borrowers and lendersnegative)—valuable information to consider when through collateral lawsassessing risk. And they permit borrowers to Protection of secured creditors’ rights throughestablish a good credit history that will allow easier bankruptcy lawsaccess to credit. Sound collateral laws enablebusinesses to use their assets, especially movable Depth of credit information index (0–6)property, as security to generate capital—while Scope and accessibility of credit informationstrong creditors’ rights have been associated with distributed by public credit registries andhigher ratios of private sector credit to GDP. private credit bureausWhat do the indicators cover? Public credit registry coverage (% of adults)Doing Business assesses the sharing of credit Number of individuals and firms listed ininformation and the legal rights of borrowers and public credit registry as percentage of adultlenders with respect to secured transactions populationthrough 2 sets of indicators. The depth of credit Private credit bureau coverage (% of adults)information index measures rules and practices Number of individuals and firms listed inaffecting the coverage, scope and accessibility of largest private credit bureau as percentage ofcredit information available through a public credit adult populationregistry or a private credit bureau. The strength oflegal rights index measures the degree to whichcollateral and bankruptcy laws protect the rights ofborrowers and lenders and thus facilitate lending.Doing Business uses case scenarios to determine  Has 100 employees.the scope of the secured transactions system,  Is 100% domestically owned, as is the lender.involving a secured borrower and a secured lenderand examining legal restrictions on the use of The ranking on the ease of getting credit is based onmovable collateral. These scenarios assume that the the percentile rankings on its component indicators:borrower: the depth of credit information index (weighted at 37.5%) and the strength of legal rights index  Is a private, limited liability company. (weighted at 62.5%).  Has its headquarters and only base of operations in the largest business city.
    • Doing Business 2012 Côte dIvoire 50GETTING CREDITWhere does the economy stand today?How well do the credit information system and Globally, Côte dIvoire stands at 126 in the ranking ofcollateral and bankruptcy laws in Côte dIvoire facilitate 183 economies on the ease of getting credit (figureaccess to credit? The economy has a score of 1 on the 6.1). The rankings for comparator economies and thedepth of credit information index and a score of 6 on regional average ranking provide other usefulthe strength of legal rights index (see the summary of information for assessing how well regulations andscoring at the end of this chapter for details). Higher institutions in Côte dIvoire support lending andscores indicate more credit information and stronger borrowing.legal rights for borrowers and lenders.Figure 6.1 How Côte dIvoire and comparator economies rank on the ease of getting creditSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 51GETTING CREDITWhat are the changes over time?While the most recent Doing Business data reflect how institutions and regulations have been strengthened—well the credit information system and collateral and and where they have not (table 6.1). That can helpbankruptcy laws in Côte dIvoire support lending and identify where the potential for improvement isborrowing today, data over time can help show where greatest.Table 6.1 The ease of getting credit in Côte dIvoire over timeBy Doing Business report yearIndicator DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. .. 152 126 Strength of legal rights 3 3 3 3 3 3 3 6index (0-10) Depth of credit 1 1 1 1 1 1 1 1information index (0-6) Public registry coverage 0.2 3.0 3.1 2.8 2.9 2.7 2.6 2.6(% of adults) Private bureau 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0coverage (% of adults)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changesto the methodology.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 52GETTING CREDITOne way to put an economy’s getting credit indicators index for Côte dIvoire in 2011 and shows the numberinto context is to see where the economy stands in the of other economies having the same score in 2011.distribution of scores across other economies. Figure Figure 6.3 shows the same thing for the depth of credit6.2 highlights the score on the strength of legal rights information index.Figure 6.2 Have legal rights for borrowers and lenders Figure 6.3 Have the coverage and accessibility of creditbecome stronger? information grown?Number of economies with each score on strength of legal Number of economies with each score on depth of creditrights index (0–10), 2011 information index (0–6), 2011Source: Doing Business database. Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 53GETTING CREDITWhen economies strengthen the legal rights of lenders credit information, they can increase entrepreneurs’and borrowers under collateral and bankruptcy laws, access to credit. What credit reforms has Doingand increase the scope, coverage and accessibility of Business recorded in Côte dIvoire (table 6.2)?Table 6.2 How has Côte dIvoire made getting credit easier—or not?By Doing Business report year DB Year Reform Access to credit in Côte d’Ivoire was improved through amendments to the OHADA Uniform Act on Secured Transactions that broaden the range of assets that can be DB2012 used as collateral (including future assets), extend the security interest to the proceeds of the original asset and introduce the possibility of out-of-court enforcement. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 54GETTING CREDITWhat are the details?The getting credit indicators reported here for Côte The data on the legal rights of borrowers and lendersdIvoire are based on detailed information collected in are gathered through a survey of financial lawyers andthat economy. The data on credit information sharing verified through analysis of laws and regulations asare collected through a survey of a public credit well as public sources of information on collateral andregistry or private credit bureau (if one exists). To bankruptcy laws. For the strength of legal rights index,construct the depth of credit information index, a a score of 1 is assigned for each of 8 aspects related toscore of 1 is assigned for each of 6 features of the legal rights in collateral law and 2 aspects inpublic credit registry or private credit bureau (see bankruptcy law.summary of scoring below).Summary of scoring for the getting credit indicators in Côte dIvoire Sub-SaharanIndicator Côte dIvoire OECD high income Africa Strength of legal rights index (0-10) 6 6 7Depth of credit information index (0-6) 1 2 5Public registry coverage (% of adults) 2.6 3.2 9.5Private bureau coverage (% of adults) 0.0 5.0 63.9Strength of legal rights index (0–10) Index score: 6 Can any business use movable assets as collateral while keeping possession of the assets; Yesand any financial institution accept such assets as collateral ?Does the law allow businesses to grant a non possessory security right in a single category of Yesmovable assets, without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of Yesits assets, without requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend Yesautomatically to the products, proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements; can alltypes of debts and obligations be secured between parties; and can the collateral agreement Yesinclude a maximum amount for which the assets are encumbered? Is a collateral registry in operation, that is unified geographically and by asset type, with an Noelectronic database indexed by debtors names?Are secured creditors paid first (i.e. before general tax claims and employee claims) when a Nodebtor defaults outside an insolvency procedure?
    • Doing Business 2012 Côte dIvoire 55Strength of legal rights index (0–10) Index score: 6Are secured creditors paid first (i.e. before general tax claims and employee claims) when a Nobusiness is liquidated?Are secured creditors either not subject to an automatic stay or moratorium on enforcementprocedures when a debtor enters a court-supervised reorganization procedure, or the law Noprovides secured creditors with grounds for relief from an automatic stay or Does the law allow parties to agree in a collateral agreement that the lender may enforce its Yessecurity right out of court, at the time a security interest is created? Private credit Public creditDepth of credit information index (0–6) Index score: 1 bureau registryAre data on both firms and individuals distributed? No Yes 1Are both positive and negative data distributed? No No 0 Does the registry distribute credit information fromretailers, trade creditors or utility companies as well as No No 0financial institutions?Are more than 2 years of historical credit information No No 0distributed?Is data on all loans below 1% of income per capita No No 0distributed? Is it guaranteed by law that borrowers can inspect No No 0their data in the largest credit registry?Note: An economy receives a score of 1 if there is a "yes" to either private bureau or public registry.Coverage Private credit bureau Public credit registryNumber of firms 0 ..Number of individuals 0 ..Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 56PROTECTING INVESTORSInvestor protections matter for the ability of WHAT THE PROTECTING INVESTORScompanies to raise the capital they need to grow, INDICATORS MEASUREinnovate, diversify and compete. If the laws do notprovide such protections, investors may be reluctantto invest unless they become the controlling Extent of disclosure index (0–10)shareholders. Strong regulations clearly define Who can approve related-party transactionsrelated-party transactions, promote clear and efficient Disclosure requirements in case of related-disclosure requirements, require shareholder party transactionsparticipation in major decisions of the company andset clear standards of accountability for company Extent of director liability index (0–10)insiders. Ability of shareholders to hold interestedWhat do the indicators cover? parties and members of the approving body liable in case of related-party transactionsDoing Business measures the strength of minority Available legal remedies (damages, repaymentshareholder protections against directors’ use of of profits, fines, imprisonment and rescissioncorporate assets for personal gain—or self-dealing. of the transaction)The indicators distinguish 3 dimensions of investorprotections: transparency of related-party Ability of shareholders to sue directly ortransactions (extent of disclosure index), liability for derivativelyself-dealing (extent of director liability index) and Ease of shareholder suits index (0–10)shareholders’ ability to sue officers and directors for Access to internal corporate documentsmisconduct (ease of shareholder suits index). The (directly or through a government inspector)ranking on the strength of investor protection index isthe simple average of the percentile rankings on Documents and information available duringthese 3 indices. To make the data comparable across trialeconomies, a case study uses several assumptions Strength of investor protection index (0–10)about the business and the transaction. Simple average of the extent of disclosure,The business (Buyer): extent of director liability and ease of shareholder suits indices  Is a publicly traded corporation listed on the economy’s most important stock exchange (or at least a large private company with multiple the company purchase used trucks from another shareholders). company he owns.  Has a board of directors and a chief executive  The price is higher than the going price for used officer (CEO) who may legally act on behalf of trucks, but the transaction goes forward. Buyer where permitted, even if this is not specifically required by law.  All required approvals are obtained, and all required disclosures made, though the transactionThe transaction involves the following details: is prejudicial to Buyer.  Mr. James, a director and the majority  Shareholders sue the interested parties and the shareholder of the company, proposes that members of the board of directors.
    • Doing Business 2012 Côte dIvoire 57PROTECTING INVESTORSWhere does the economy stand today?How strong are investor protections in Côte dIvoire? index (figure 7.1). While the indicator does notThe economy has a score of 3.3 on the strength of measure all aspects related to the protection ofinvestor protection index, with a higher score minority investors, a higher ranking does indicate thatindicating stronger protections (see the summary of an economy’s regulations offer stronger investorscoring at the end of this chapter for details). protections against self-dealing in the areas measured.Globally, Côte dIvoire stands at 155 in the ranking of183 economies on the strength of investor protectionFigure 7.1 How Côte dIvoire and comparator economies rank on the strength of investor protection indexSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 58PROTECTING INVESTORSWhat are the changes over time?While the most recent Doing Business data reflect how the global ranking on the strength of investorwell regulations in Côte dIvoire protect minority protection index over time shows whether theinvestors today, data over time show whether the economy is slipping behind other economies inprotections have been strengthened (table 7.1). And investor protections—or surpassing them.Table 7.1 The strength of investor protections in Côte dIvoire over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. 153 155 Extent of disclosure 6 6 6 6 6 6 6index (0-10) Extent of director 1 1 1 1 1 1 1liability index (0-10) Ease of shareholder 3 3 3 3 3 3 3suits index (0-10)Strength of investor 3.3 3.3 3.3 3.3 3.3 3.3 3.3protection index (0-10)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes tothe methodology.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 59PROTECTING INVESTORSBut the overall ranking on the strength of investor liability and ease of shareholder suits indices may alsoprotection index tells only part of the story. Economies be revealing (figure 7.2). Equally interesting may be themay offer strong protections in some areas but not changes over time in the regional average scores forothers. So the scores recorded over time for Côte those indices.dIvoire on the extent of disclosure, extent of directorFigure 7.2 Have investor protections become stronger?Strength of investor protection index (0-10)Extent of disclosure index (0-10)
    • Doing Business 2012 Côte dIvoire 60PROTECTING INVESTORSExtent of director liability index (0-10)Ease of shareholder suits index (0-10)Note: The higher the score, the stronger the investor protections. The economy with the best performance regionally oneach indicator, and the economy with the best performance globally, are included as benchmarks. In some cases 2 ormore economies share the top regional or global ranking on an indicator.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 61PROTECTING INVESTORSEconomies with the strongest protections of minority time. So reforms to strengthen investor protectionsinvestors from self-dealing require more disclosure may move ahead on different fronts—such as throughand define clear duties for directors. They also have new or amended company laws or civil procedurewell-functioning courts and up-to-date procedural rules. What investor protection reforms has Doingrules that give minority investors the means to prove Business recorded in Côte dIvoire (table 7.2)?their case and obtain a judgment within a reasonableTable 7.2 How has Côte dIvoire strengthened investor protections—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports forthese years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 62PROTECTING INVESTORSWhat are the details?The protecting investors indicators reported here for liability and ease of shareholder suits indices, a score isCôte dIvoire are based on detailed information assigned for each of a range of conditions relating tocollected through a survey of corporate and securities disclosure, director liability and shareholder suits in alawyers and are based on securities regulations, standard case study transaction (see the notes at thecompany laws and court rules of evidence. To end of this chapter). The summary below shows theconstruct the extent of disclosure, extent of director details underlying the scores for Côte dIvoire.Summary of scoring for the protecting investors indicators in Côte dIvoire Sub-SaharanIndicator Côte dIvoire OECD high income AfricaExtent of disclosure index (0-10) 6 5 6Extent of director liability index (0-10) 1 4 5Ease of shareholder suits index (0-10) 3 5 7Strength of investor protection index (0-10) 3.3 4.5 6.0 ScoreExtent of disclosure index (0-10) 6What corporate body provides legally sufficient approval for the transaction? 3 Whether disclosure of the conflict of interest by Mr. James to the board of directors is 1required? Whether immediate disclosure of the transaction to the public and/or shareholders is 0required? Whether disclosure of the transaction in published periodic filings (annual reports) is 2required?Whether an external body must review the terms of the transaction before it takes place? 0Extent of director liability index (0-10) 1 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller 1transaction causes to the company? Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller 0transaction causes to the company? Whether shareholders can hold members of the approving body liable for the damage that 0the Buyer-Seller transaction causes to the company?Whether a court can void the transaction upon a successful claim by a shareholder plaintiff? 0
    • Doing Business 2012 Côte dIvoire 63 Score Whether Mr. James pays damages for the harm caused to the company upon a successful 0claim by the shareholder plaintiff? Whether Mr. James repays profits made from the transaction upon a successful claim by the 0shareholder plaintiff?Whether fines and imprisonment can be applied against Mr. James? 0Ease of shareholder suits index (0-10) 3Whether shareholders owning 10% or less of Buyers shares can inspect transaction 0documents before filing suit? Whether shareholders owning 10% or less of Buyers shares can request an inspector to 0investigate the transaction? Whether the plaintiff can obtain any documents from the defendant and witnesses during 3trial? Whether the plaintiff can request categories of documents from the defendant without 0identifying specific ones?Whether the plaintiff can directly question the defendant and witnesses during trial? 0Whether the level of proof required for civil suits is lower than that of criminal cases? 0Strength of investor protection index (0-10) 3.3Source: Doing Business database.Notes:Extent of disclosure index (0–10)Scoring for the extent of disclosure index is based on 5 components:Which corporate body can provide legally sufficient approval for the transaction0 = CEO or managing director alone; 1 = shareholders or board of directors vote and Mr. James can vote; 2 =board of directors votes and Mr. James cannot vote; 3 = shareholders vote and Mr. James cannot vote.Whether disclosure of the conflict of interest by Mr. James to the board of directors is required0 = no disclosure; 1 = disclosure of the existence of a conflict without any specifics; 2 = full disclosure of allmaterial facts.Whether immediate disclosure of the transaction to the public, the regulator or the shareholders is required0 = no disclosure; 1 = disclosure on the transaction only; 2 = disclosure on the transaction and Mr. James’sconflict of interest.Whether disclosure of the transaction in the annual report is required0 = no disclosure; 1 = disclosure on the transaction only; 2 = disclosure on the transaction and Mr. James’sconflict of interest.
    • Doing Business 2012 Côte dIvoire 64Whether it is required that an external body (for example, an external auditor) review the transaction before it takesplace0 = no; 1 = yes.Extent of director liability index (0–10)Scoring for the extent of director liability index is based on 7 components:Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction causes to thecompany0 = suits are unavailable or available only for shareholders holding more than 10% of the company’s share capital;1 = direct or derivative suits available for shareholders holding 10% of share capital or less.Whether shareholders can hold Mr. James liable for the damage that the transaction causes to the company0 = Mr. James is not liable or is liable only if he acted fraudulently or in bad faith; 1 = Mr. James is liable if heinfluenced the approval or was negligent; 2 = Mr. James is liable if the transaction is unfair or prejudicial to theother shareholders.Whether shareholders can hold the approving body (the CEO or members of the board of directors) liable for thedamage that the transaction causes to the company0 = members of the approving body are either not liable or liable only if they acted fraudulently or in bad faith;1 = liable for negligence in the approval of the transaction; 2 = liable if the transaction is unfair or prejudicial tothe other shareholders.Whether a court can void the transaction upon a successful claim by a shareholder plaintiff0 = rescission is unavailable or available only in case of Seller’s fraud or bad faith; 1 = rescission is available whenthe transaction is oppressive or prejudicial to the other shareholders; 2 = rescission is available when thetransaction is unfair or entails a conflict of interest.Whether Mr. James pays damages for the harm caused to the company upon a successful claim by the shareholderplaintiff0 = no; 1 = yes.Whether Mr. James repays profits made from the transaction upon a successful claim by the shareholder plaintiff0 = no; 1 = yes.Whether both fines and imprisonment can be applied against Mr. James0 = no; 1 = yes.Ease of shareholder suits index (0–10)Scoring for the ease of shareholder suits index is based on 6 components:What range of documents is available to the plaintiff from the defendant and witnesses during trialScore of 1 for each of the following: information that the defendant has indicated he intends to rely on for hisdefense; information that directly proves specific facts in the plaintiff’s claim; any information relevant to thesubject matter of the claim; and any information that may lead to the discovery of relevant information.
    • Doing Business 2012 Côte dIvoire 65Whether the plaintiff can directly examine the defendant and witnesses during trial0 = no; 1 = yes, with prior approval by the court of the questions posed; 2 = yes, without prior approval.Whether the plaintiff can obtain categories of relevant documents from the defendant without identifying eachdocument specifically0 = no; 1 = yes.Whether shareholders owning 10% or less of the company’s share capital can request that a government inspectorinvestigate the transaction without filing suit in court0 = no; 1 = yes.Whether shareholders owning 10% or less of the company’s share capital have the right to inspect the transactiondocuments before filing suit0 = no; 1 = yes.Whether the standard of proof for civil suits is lower than that for a criminal case0 = no; 1 = yes.Strength of investor protection index (0–10)Simple average of the extent of disclosure, extent of director liability and ease of shareholder suits indices.
    • Doing Business 2012 Côte dIvoire 66PAYING TAXESTaxes are essential. They fund the public amenities, WHAT THE PAYING TAXES INDICATORSinfrastructure and services that are crucial for a MEASUREproperly functioning economy. But the level of taxrates needs to be carefully chosen—and needlesscomplexity in tax rules avoided. According to Tax payments for a manufacturing companyDoing Business data, in economies where it is more in 2010 (number per year adjusted fordifficult and costly to pay taxes, larger shares of electronic or joint filing and payment)economic activity end up in the informal sector— Total number of taxes and contributions paid,where businesses pay no taxes at all. including consumption taxes (value added tax, sales tax or goods and service tax)What do the indicators cover? Method and frequency of filing and paymentUsing a case scenario, Doing Business measuresthe taxes and mandatory contributions that a Time required to comply with 3 major taxesmedium-size company must pay in a given year as (hours per year)well as the administrative burden of paying taxes Collecting information and computing the taxand contributions. This case scenario uses a set of payablefinancial statements and assumptions about Completing tax return forms, filing withtransactions made over the year. Information is proper agenciesalso compiled on the frequency of filing andpayments as well as time taken to comply with tax Arranging payment or withholdinglaws. The ranking on the ease of paying taxes is Preparing separate tax accounting books, ifthe simple average of the percentile rankings on requiredits component indicators: number of annual Total tax rate (% of profit before all taxes)payments, time and total tax rate, with a threshold 2being applied to the total tax rate. To make the Profit or corporate income taxdata comparable across economies, several Social contributions and labor taxes paid byassumptions about the business and the taxes and the employercontributions are used. Property and property transfer taxes  TaxpayerCo is a medium-size business that Dividend, capital gains and financial started operations on January 1, 2009. transactions taxes  The business starts from the same financial Waste collection, vehicle, road and other taxes position in each economy. All the taxes and mandatory contributions paid during the second year of operation are recorded.  Taxes and mandatory contributions include  Taxes and mandatory contributions are corporate income tax, turnover tax and all measured at all levels of government. labor taxes and contributions paid by the company.  A range of standard deductions and exemptions are also recorded.2 The threshold is defined as the highest total tax rate among the top 30% of economies in the ranking on the total tax rate. It will becalculated and adjusted on a yearly basis. The threshold is not based on any underlying theory. Instead, it is intended to mitigate the effect ofvery low tax rates on the ranking on the ease of paying taxes.
    • Doing Business 2012 Côte dIvoire 67PAYING TAXESWhere does the economy stand today?What is the administrative burden of complying with Globally, Côte dIvoire stands at 159 in the ranking oftaxes in Côte dIvoire—and how much do firms pay in 183 economies on the ease of paying taxes (figure 8.1).taxes? On average, firms make 62 tax payments a year, The rankings for comparator economies and thespend 270 hours a year filing, preparing and paying regional average ranking provide other usefultaxes and pay total taxes amounting to 8.8% of profit information for assessing the tax compliance burden(see the summary at the end of this chapter for for businesses in Côte dIvoire.details).Figure 8.1 How Côte dIvoire and comparator economies rank on the ease of paying taxesNote: DB2012 rankings reflect changes to the methodology. For all economies with a total tax rate below the threshold of32.5% applied in DB2012, the total tax rate is set at 32.5% for the purpose of calculating the ranking on the ease of payingtaxes.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 68PAYING TAXESWhat are the changes over time?While the most recent Doing Business data reflect how the process have changed — and which have noteasy (or difficult) it is to comply with tax rules in Côte (table 8.1). That can help identify where the potentialdIvoire today, data over time show which aspects of for easing tax compliance is greatest.Table 8.1 The ease of paying taxes in Côte dIvoire over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. 153 159Payments (number per 66 66 66 66 66 64 62year)Time (hours per year) 270 270 270 270 270 270 270Total tax rate (% profit) 48.4 48.4 45.4 45.4 44.7 44.4 44.3Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes to themethodology. For all economies with a total tax rate below the threshold of 32.5% applied in DB2012, the total tax rate is set at32.5% for the purpose of calculating the rank on the ease of paying taxes.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 69PAYING TAXESEqually helpful may be the benchmarks provided by dIvoire on ways to ease the administrative burden ofthe economies that today have the best performance tax compliance. And changes in regional averages canregionally or globally on the number of payments or show where Côte dIvoire is keeping up—and where itthe time required to prepare and file taxes (figure 8.2). is falling behind.These economies may provide a model for CôteFigure 8.2 Has paying taxes become easier over time?Payments (number per year)Time (hours per year)
    • Doing Business 2012 Côte dIvoire 70PAYING TAXESTotal tax rate (% of profit)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. The best performer globally on an indicator has implemented the most efficientpractices in its tax system but is not necessarily the one with the highest ranking on the indicator. In some cases 2 ormore economies share the top regional ranking on an indicator. DB2012 rankings reflect changes to the methodology. Forall economies with a total tax rate below the threshold of 32.5% applied in DB2012, the total tax rate is set at 32.5% for thepurpose of calculating the ranking on the ease of paying taxes.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 71PAYING TAXESEconomies around the world have made paying taxes concrete results. Some economies simplifying taxfaster and easier for businesses—such as by payment and reducing rates have seen tax revenueconsolidating filings, reducing the frequency of rise. What tax reforms has Doing Business recorded inpayments or offering electronic filing and payment. Côte dIvoire (table 8.2)?Many have lowered tax rates. Changes have broughtTable 8.2 How has Côte dIvoire made paying taxes easier—or not?By Doing Business report year DB Year Reform Côte d’Ivoire eliminated a tax on firms, the contribution for DB2012 national reconstruction (contribution pour la reconstruction nationale). DB2011 No reform. DB2010 No reform. The corporate income tax rate was reduced from 27 percent to 25 percent effective January 27, 2008, and revised the DB2009 criterion for defining a small and medium-size entity to a turnover of less than CFAF 1 billion only.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 72PAYING TAXESWhat are the details?The indicators reported here for Côte dIvoire are that the company completed during the year.based on a standard set of taxes and contributions Respondents are asked how much in taxes andthat would be paid by the case study company used by mandatory contributions the business must pay andDoing Business in collecting the data (see the section in what the process is for doing so. The taxes andthis chapter on what the indicators cover). Tax contributions paid are listed in the summary below,practitioners are asked to review standard financial along with the associated number of payments, timestatements as well as a standard list of transactions and tax rate.Summary of tax rates and administrative burden in Côte dIvoire Sub-SaharanIndicator Côte dIvoire OECD high income AfricaPayments (number per year) 62 37 13Time (hours per year) 270 318 186Profit tax (%) 8.8 18.1 15.4Labor tax and contributions (%) 20.1 13.5 24.0Other taxes (%) 15.4 25.5 3.2Total tax rate (% profit) 44.3 57.1 42.7 Total tax Notes on Tax or mandatory Payments Notes on Time Statutory Tax base rate (% of total taxcontribution (number) payments (hours) tax rate profit) rate Social security gross 12 120 15.55% 17.5contributions salaries turnover 0.5% on and rental turnover +Business license tax 2 0 value of 10.4 18.5% on professional rental value premises taxableCorporate income tax 3 30 25.00% 8.8 profit grossPayroll tax 12 0 2.80% 2.5 salariesSpecial tax on equipment 12 0 0.08% turnover 1.4
    • Doing Business 2012 Côte dIvoire 73 Total tax Notes on Tax or mandatory Payments Notes on Time Statutory Tax base rate (% of total taxcontribution (number) payments (hours) tax rate profit) rate Tax on real estatepatrimony on developed 2 0 15% rental value 1.3land Tax on real estate propertypatrimony on undeveloped 2 0 1.5% 0.8 valueland advertisingAdvertising tax 1 0 3.00% 0.5 expenses 16,5%, 10%, 5%, 1% (see explanation interestTax on interest 1 0 on 0.4 income "Deduction s& Provisions") 25% and insuranceTax on insurance premium 1 0 0.3 14,5.% premium included inFuel tax 1 0 the fuel 0.2 price number ofStamp duty 1 0 XOF 500 0 small amount pagesValue added tax (VAT) 12 120 18% value added 0 not includedTotals 62 270 44.3Note: DB2012 rankings reflect changes to the methodology. For all economies with a total tax rate below the threshold of32.5% applied in DB2012, the total tax rate is set at 32.5% for the purpose of calculating the ranking on the ease of payingtaxes.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 74TRADING ACROSS BORDERSIn today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERSeconomies easier is increasingly important for INDICATORS MEASUREbusiness. Excessive document requirements,burdensome customs procedures, inefficient portoperations and inadequate infrastructure all lead to Documents required to export and importextra costs and delays for exporters and importers, (number)stifling trade potential. Research shows that Bank documentsexporters in developing countries gain more from Customs clearance documentsa 10% drop in their trading costs than from asimilar reduction in the tariffs applied to their Port and terminal handling documentsproducts in global markets. Transport documentsWhat do the indicators cover? Time required to export and import (days)Doing Business measures the time and cost Obtaining all the documents(excluding tariffs) associated with exporting and Inland transport and handlingimporting a standard shipment of goods by oceantransport, and the number of documents necessary Customs clearance and inspectionsto complete the transaction. The indicators cover Port and terminal handlingprocedural requirements such as documentationrequirements and procedures at customs and other Does not include ocean transport timeregulatory agencies as well as at the port. They also Cost required to export and import (US$ percover trade logistics, including the time and cost of container)inland transport to the largest business city. The All documentationranking on the ease of trading across borders isthe simple average of the percentile rankings on its Inland transport and handlingcomponent indicators: documents, time and cost Customs clearance and inspectionsto export and import. Port and terminal handlingTo make the data comparable across economies, Official costs only, no bribesDoing Business uses several assumptions about thebusiness and the traded goods.The business:  Is of medium size and employs 60 people.  Do not require refrigeration or any other  Is located in the periurban area of the special environment. economy’s largest business city.  Do not require any special phytosanitary or  Is a private, limited liability company, environmental safety standards other than domestically owned, formally registered accepted international standards. and operating under commercial laws and regulations of the economy.  Are one of the economy’s leading export or import products.The traded goods:  Are transported in a dry-cargo, 20-foot full  Are not hazardous nor do they include container load. military items.
    • Doing Business 2012 Côte dIvoire 75TRADING ACROSS BORDERSWhere does the economy stand today?What does it take to export or import in Côte dIvoire? Globally, Côte dIvoire stands at 161 in the ranking ofAccording to data collected by Doing Business, 183 economies on the ease of trading across bordersexporting a standard container of goods requires 10 (figure 9.1). The rankings for comparator economiesdocuments, takes 25 days and costs $1969. Importing and the regional average ranking provide other usefulthe same container of goods requires 9 documents, information for assessing how easy it is for a businesstakes 36 days and costs $2577 (see the summary of in Côte dIvoire to export and import goods.procedures and documents at the end of this chapterfor details).Figure 9.1 How Côte dIvoire and comparator economies rank on the ease of trading across bordersSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 76TRADING ACROSS BORDERSWhat are the changes over time?While the most recent Doing Business data reflect how the process have changed—and which have not (tableeasy (or difficult) it is to export or import in Côte 9.1). That can help identify where the potential fordIvoire today, data over time show which aspects of improvement is greatest.Table 9.1 The ease of trading across borders in Côte dIvoire over timeBy Doing Business report yearIndicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. 160 161 Documents to export 10 10 10 10 10 10 10(number)Time to export (days) 23 23 23 23 25 25 25 Cost to export (US$ per 1,653 1,653 1,653 1,904 1,969 1,969 1,969container) Documents to import 9 9 9 9 9 9 9(number)Time to import (days) 43 43 43 43 36 36 36 Cost to import (US$ per 2,457 2,457 2,457 2,437 2,577 2,577 2,577container)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflectchanges to the methodology.Source: Doing Business database.Equally helpful may be the benchmarks provided by ways to improve the ease of trading across borders.the economies that today have the best performance And changes in regional averages can show whereregionally or globally on the documents, time or cost Côte dIvoire is keeping up—and where it is fallingrequired to export or import (figure 9.2). These behind.economies may provide a model for Côte dIvoire on
    • Doing Business 2012 Côte dIvoire 77TRADING ACROSS BORDERSFigure 9.2 Has trading across borders become easier over time?Documents to export (number)Time to export (days)
    • Doing Business 2012 Côte dIvoire 78TRADING ACROSS BORDERSCost to export (US$ per container)Documents to import (number)
    • Doing Business 2012 Côte dIvoire 79TRADING ACROSS BORDERSTime to import (days)Cost to import (US$ per container)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 80TRADING ACROSS BORDERSIn economies around the world, trading across borders systems. These changes help improve the tradingas measured by Doing Business has become faster and environment and boost firms’ internationaleasier over the years. Governments have introduced competitiveness. What trade reforms has Doingtools to facilitate trade—including single windows, Business recorded in Côte dIvoire (table 9.2)?risk-based inspections and electronic data interchangeTable 9.2 How has Côte dIvoire made trading across borders easier—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 81TRADING ACROSS BORDERSWhat are the details?The indicators reported here for Côte dIvoire are freight forwarders, shipping lines, customs brokers,based on a set of specific procedural requirements for port officials and banks. The procedural requirements,trading a standard shipment of goods by ocean and the associated time and cost, for exporting andtransport (see the section in this chapter on what the importing a standard shipment of goods are listed inindicators cover). Information on the procedures as the summary below, along with the requiredwell as the required documents and the time and cost documents.to complete each procedure is collected from localSummary of procedures and documents for trading across borders in Côte dIvoire Sub-SaharanIndicator Côte dIvoire OECD high income AfricaDocuments to export (number) 10 8 4Time to export (days) 25 31 10Cost to export (US$ per container) 1969 1,960 1,032Documents to import (number) 9 8 5Time to import (days) 36 37 11Cost to import (US$ per container) 2577 2,502 1,085Procedures to export Time (days) Cost (US$)Documents preparation 15 299Customs clearance and technical control 5 81Ports and terminal handling 3 889Inland transportation and handling 2 700Totals 25 1969Procedures to import Time (days) Cost (US$)Documents preparation 19 333Customs clearance and technical control 7 244Ports and terminal handling 8 1000Inland transportation and handling 2 1000Totals 36 2577
    • Doing Business 2012 Côte dIvoire 82TRADING ACROSS BORDERSDocuments to export Documents to importPacking list Technical standard/health certificatePreferential certificate Terminal Handling ReceiptsInspection report Attestation de verification BIVACTechnical standard/ health certificate Bill of LadingBill of lading Cargo Release orderCustoms export declaration - Form Nº 5 Certificate of originCommercial invoice Commercial InvoiceCertificate of origin Customs Import DeclarationCargo release order Packing ListForeign exchange authorization
    • Doing Business 2012 Côte dIvoire 83ENFORCING CONTRACTSWell-functioning courts help businesses expand WHAT THE ENFORCING CONTRACTStheir network and markets. Without effective INDICATORS MEASUREcontract enforcement, people might well dobusiness only with family, friends and others withwhom they have established relationships. Where Procedures to enforce a contract throughcontract enforcement is efficient, firms are more the courts (number)likely to engage with new borrowers or customers, Any interaction between the parties in aand they have greater access to credit. commercial dispute, or between them and the judge or court officerWhat do the indicators cover? Steps to file and serve the caseDoing Business measures the efficiency of thejudicial system in resolving a commercial dispute Steps for trial and judgmentbefore local courts. Following the step-by-step Steps to enforce the judgmentevolution of a standardized case study, it collectsdata relating to the time, cost and procedural Time required to complete procedurescomplexity of resolving a commercial lawsuit. The (calendar days)ranking on the ease of enforcing contracts is the Time to file and serve the casesimple average of the percentile rankings on its Time for trial and obtaining judgmentcomponent indicators: procedures, time and cost. Time to enforce the judgmentThe dispute in the case study involves the breachof a sales contract between 2 domestic businesses. Cost required to complete procedures (% ofThe case study assumes that the court hears an claim)expert on the quality of the goods in dispute. This No bribesdistinguishes the case from simple debt Average attorney feesenforcement. To make the data comparable acrosseconomies, Doing Business uses several Court costs, including expert feesassumptions about the case: Enforcement costs  The seller and buyer are located in the economy’s largest business city.  The buyer orders custom-made goods,  The dispute on the quality of the goods then fails to pay. requires an expert opinion.  The seller sues the buyer before a  The judge decides in favor of the seller; there competent court. is no appeal.  The value of the claim is 200% of income  The seller enforces the judgment through a per capita. public sale of the buyer’s movable assets.  The seller requests a pretrial attachment to secure the claim.
    • Doing Business 2012 Côte dIvoire 84ENFORCING CONTRACTSWhere does the economy stand today?How efficient is the process of resolving a commercial Globally, Côte dIvoire stands at 124 in the ranking ofdispute through the courts in Côte dIvoire? According 183 economies on the ease of enforcing contractsto data collected by Doing Business, enforcing a (figure 10.1). The rankings for comparator economiescontract requires 33 procedures, takes 770 days and and the regional average ranking provide other usefulcosts 41.7% of the value of the claim (see the summary benchmarks for assessing the efficiency of contractat the end of this chapter for details). enforcement in Côte dIvoire.Figure 10.1 How Côte dIvoire and comparator economies rank on the ease of enforcing contractsSource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 85ENFORCING CONTRACTSWhat are the changes over time?While the most recent Doing Business data reflect how time help identify which areas have changed andeasy (or difficult) it is to enforce a contract in Côte where the potential for improvement is greatest (tabledIvoire today, data on the underlying indicators over 10.1).Table 10.1 The ease of enforcing contracts in Côte dIvoire over timeBy Doing Business report year Indicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. .. .. 124 124Time (days) 770 770 770 770 770 770 770 770 770Cost (% of claim) 41.7 41.7 41.7 41.7 41.7 41.7 41.7 41.7 41.7Procedures (number) 33 33 33 33 33 33 33 33 33Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes tothe methodology.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 86ENFORCING CONTRACTSEqually helpful may be the benchmarks provided by for Côte dIvoire on ways to improve the efficiency ofthe economies that today have the best performance contract enforcement. And changes in regionalregionally or globally on the number of steps, time or averages can show where Côte dIvoire is keeping up—cost required to enforce a contract through the courts and where it is falling behind.(figure 10.2). These economies may provide a modelFigure 10.2 Has enforcing contracts become easier over time?Procedures (number)Time (days)
    • Doing Business 2012 Côte dIvoire 87ENFORCING CONTRACTSCost (% of claim)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 88ENFORCING CONTRACTSEconomies in all regions have improved contract periodic reviews to clear inactive cases from the docketenforcement in recent years. A judiciary can be and by making procedures faster. What reformsimproved in different ways. Higher-income economies making it easier (or more difficult) to enforce contractstend to look for ways to enhance efficiency by has Doing Business recorded in Côte dIvoire (tableintroducing new technology. Lower-income economies 10.2)?often work on reducing backlogs by introducingTable 10.2 How has Côte dIvoire made enforcing contracts easier—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 89ENFORCING CONTRACTSWhat are the details?The indicators reported here for Côte dIvoire are regulations, as well as through surveys completed bybased on a set of specific procedural steps required to local litigation lawyers (and, in a quarter of theresolve a standardized commercial dispute through economies covered by Doing Business, by judges asthe courts (see the section in this chapter on what the well). The procedures for resolving a commercialindicators cover). These procedures, and the time and lawsuit, and the associated time and cost, are listed incost of completing them, are identified through study the summary below.of the codes of civil procedure and other courtSummary of procedures for enforcing a contract in Côte dIvoire—and the time and cost Sub-Saharan Indicator Côte dIvoire OECD high income AfricaTime (days) 770 654.80 518.03Filing and service 25Trial and judgment 365Enforcement of judgment 380Cost (% of claim) 41.7 49.96 19.71Attorney cost (% of claim) 16.7Court cost (% of claim) 15Enforcement Cost (% of claim) 10Procedures (number) 33 39.02 31.42Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 90RESOLVING INSOLVENCYA robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCYensuring the survival of economically efficientcompanies and reallocating the resources of INDICATORS MEASUREinefficient ones. Fast and cheap insolvencyproceedings result in the speedy return of Time required to recover debt (years)businesses to normal operation and increase Measured in calendar yearsreturns to creditors. By improving the expectationsof creditors and debtors about the outcome of Appeals and requests for extension areinsolvency proceedings, well-functioning includedinsolvency systems can facilitate access to finance, Cost required to recover debt (% of debtor’ssave more viable businesses and thereby improve estate)growth and sustainability in the economy overall. Measured as percentage of estate valueWhat do the indicators cover? Court feesDoing Business studies the time, cost and outcome Fees of insolvency administratorsof insolvency proceedings involving domesticentities. It does not measure insolvency Lawyers’ feesproceedings of individuals and financial Assessors’ and auctioneers’ feesinstitutions. The data are derived from survey Other related feesresponses by local insolvency practitioners andverified through a study of laws and regulations as Recovery rate for creditors (cents on thewell as public information on bankruptcy systems. dollar)The ranking on the ease of resolving insolvency is Measures the cents on the dollar recoveredbased on the recovery rate, which is recorded as by creditorscents on the dollar recouped by creditors through Present value of debt recoveredreorganization, liquidation or debt enforcement(foreclosure) proceedings. The recovery rate is a Official costs of the insolvency proceedings are deductedfunction of time, cost and other factors, such aslending rate and the likelihood of the company Depreciation of furniture is taken intocontinuing to operate. accountTo make the data comparable across economies, Outcome for the business (survival or not)Doing Business uses several assumptions about the affects the maximum value that can bebusiness and the case. It assumes that the recoveredcompany:  Is a domestically owned, limited liability company operating a hotel.  Has 201 employees, 1 main secured creditor  Operates in the economy’s largest business and 50 unsecured creditors. city.  Has a higher value as a going concern—and the efficient outcome is either reorganization or sale as a going concern, not piecemeal liquidation.
    • Doing Business 2012 Côte dIvoire 91RESOLVING INSOLVENCYWhere does the economy stand today?Speed, low costs and continuation of viable businesses Globally, Côte dIvoire stands at 70 in the ranking ofcharacterize the top-performing economies. How 183 economies on the ease of resolving insolvencyefficient are insolvency proceedings in Côte dIvoire? (figure 11.1). The rankings for comparator economiesAccording to data collected by Doing Business, and the regional average ranking provide other usefulresolving insolvency takes 2.2 years on average and benchmarks for assessing the efficiency of insolvencycosts 18% of the debtor’s estate. The average recovery proceedings in Côte dIvoire.rate is 37.6 cents on the dollar.Figure 11.1 How Côte dIvoire and comparator economies rank on the ease of resolving insolvencySource: Doing Business database.
    • Doing Business 2012 Côte dIvoire 92RESOLVING INSOLVENCYWhat are the changes over time?While the most recent Doing Business data reflect the changed—and where it has not (table 11.1). That canefficiency of insolvency proceedings in Côte dIvoire help identify where the potential for improvement istoday, data over time show where the efficiency has greatest.Table 11.1 The ease of resolving insolvency in Côte dIvoire over timeBy Doing Business report year Indicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012Rank .. .. .. .. .. .. .. 81 70Time (years) 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2Cost (% of estate) 18 18 18 18 18 18 18 18 18 Recovery rate (cents on 14.9 19.9 14.9 33.8 33.0 34.0 34.0 32.8 37.6the dollar)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings reflect changes tothe methodology. ―No practice‖ indicates that in each of the previous 5 years the economy had no cases involving a judicialreorganization, judicial liquidation or debt enforcement procedure (foreclosure). This means that creditors are unlikely to recovertheir money through a formal legal process (in or out of court). The recovery rate for ―no practice‖ economies is 0.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 93RESOLVING INSOLVENCYEqually helpful may be the benchmarks provided by dIvoire on ways to improve the efficiency ofthe economies that today have the best performance insolvency proceedings. And changes in regionalregionally or globally on the time or cost of insolvency averages can show where Côte dIvoire is keeping up—proceedings or on the recovery rate (figure 11.2). and where it is falling behind.These economies may provide a model for CôteFigure 11.2 Has resolving insolvency become easier over time?Time (years)Cost (% of estate)
    • Doing Business 2012 Côte dIvoire 94RESOLVING INSOLVENCYRecovery rate (cents on the dollar)Note: The economy with the best performance regionally on each indicator, and the economy with the best performanceglobally, are included as benchmarks. In some cases 2 or more economies share the top regional or global ranking on anindicator. In cases where no data are displayed above for the economy, this indicates that the economy has received a“no practice” mark; see the data notes for details.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 95RESOLVING INSOLVENCYA well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws havecompanies that are financially distressed but been aimed at helping more of the viable businesseseconomically viable from inefficient companies that survive. What insolvency reforms has Doing Businessshould be liquidated. But in some insolvency systems recorded in Côte dIvoire (table 11.2)?even viable businesses are liquidated. This is starting toTable 11.2 How has Côte dIvoire made resolving insolvency easier—or not?By Doing Business report year DB Year Reform DB2012 No reform. DB2011 No reform. DB2010 No reform. DB2009 No reform.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
    • Doing Business 2012 Côte dIvoire 96DATA NOTESThe indicators presented and analyzed in DoingBusiness measure business regulation and the ECONOMY CHARACTERISTICSprotection of property rights—and their effect onbusinesses, especially small and medium-size domesticfirms. First, the indicators document the complexity of Gross national income (GNI) per capitaregulation, such as the number of procedures to start abusiness or to register and transfer commercial Doing Business 2012 reports 2010 income per capitaproperty. Second, they gauge the time and cost of as published in the World Bank’s World Developmentachieving a regulatory goal or complying with Indicators 2011. Income is calculated using the Atlas method (current US$). For cost indicators expressedregulation, such as the time and cost to enforce a as a percentage of income per capita, 2010 GNI incontract, go through bankruptcy or trade across U.S. dollars is used as the denominator. Data wereborders. Third, they measure the extent of legal not available from the World Bank for Afghanistan;protections of property, for example, the protections Australia; The Bahamas; Bahrain; Brunei Darussalam;of investors against looting by company directors or Canada; Cyprus; Djibouti; the Islamic Republic ofthe range of assets that can be used as collateral Iran; Kuwait; New Zealand; Oman; Puerto Ricoaccording to secured transactions laws. Fourth, a set of (territory of the United States); Qatar; Saudi Arabia;indicators documents the tax burden on businesses. Suriname; Taiwan, China; the United Arab Emirates;Finally, a set of data covers different aspects of West Bank and Gaza; and the Republic of Yemen. Inemployment regulation. these cases GDP or GNP per capita data and growth rates from the International Monetary Fund’s WorldThe data for all sets of indicators in Doing Business Economic Outlook database and the Economist 32012 are for June 2011. Intelligence Unit were used. Region and income groupMethodology Doing Business uses the World Bank regional and income group classifications, available atThe Doing Business data are collected in a http://www.worldbank.org/data/countryclass. Thestandardized way. To start, the Doing Business team, World Bank does not assign regional classificationswith academic advisers, designs a questionnaire. The to high-income economies. For the purpose of thequestionnaire uses a simple business case to ensure Doing Business report, high-income OECDcomparability across economies and over time—with economies are assigned the ―regional‖ classificationassumptions about the legal form of the business, its OECD high income. Figures and tables presentingsize, its location and the nature of its operations. regional averages include economies from allQuestionnaires are administered through more than income groups (low, lower middle, upper middle9,028 local experts, including lawyers, business and high income).consultants, accountants, freight forwarders, Populationgovernment officials and other professionals routinelyadministering or advising on legal and regulatory Doing Business 2012 reports midyear 2010 population statistics as published in Worldrequirements. These experts have several rounds of Development Indicators 2011.interaction with the Doing Business team, involvingconference calls, written correspondence and visits bythe team. For Doing Business 2012 team members The Doing Business methodology offers severalvisited 40 economies to verify data and recruit advantages. It is transparent, using factual informationrespondents. The data from questionnaires are about what laws and regulations say and allowingsubjected to numerous rounds of verification, leading multiple interactions with local respondents to clarifyto revisions or expansions of the information collected. potential misinterpretations of questions. Having representative samples of respondents is not an issue;3 The data for paying taxes refer to January – December 2010.
    • Doing Business 2012 Côte dIvoire 97Doing Business is not a statistical survey, and the texts entrepreneurs reported in the World Bank Enterpriseof the relevant laws and regulations are collected and Surveys or other perception surveys.answers checked for accuracy. The methodology isinexpensive and easily replicable, so data can becollected in a large sample of economies. Because Subnational Doing Business indicatorsstandard assumptions are used in the data collection, This year Doing Business published a subnational studycomparisons and benchmarks are valid across for the Philippines and a regional report for Southeasteconomies. Finally, the data not only highlight the Europe covering 7 economies (Albania, Bosnia andextent of specific regulatory obstacles to business but Herzegovina, Kosovo, the former Yugoslav Republic ofalso identify their source and point to what might be Macedonia, Moldova, Montenegro and Serbia) and 22reformed. cities. It also published a city profile for Juba, in theInformation on the methodology for each Doing Republic of South Sudan.Business topic can be found on the Doing Business The subnational studies point to differences inwebsite at http://www.doingbusiness.org/methodology/. business regulation and its implementation—as well as in the pace of regulatory reform—across cities in the same economy. For several economies subnationalLimits to what is measured studies are now periodically updated to measureThe Doing Business methodology has 5 limitations that change over time or to expand geographic coverageshould be considered when interpreting the data. First, to additional cities. This year that is the case for thethe collected data refer to businesses in the economy’s subnational studies in the Philippines; the regionallargest business city and may not be representative of report in Southeast Europe; the ongoing studies inregulation in other parts of the economy. To address Italy, Kenya and the United Arab Emirates; and thethis limitation, subnational Doing Business indicators projects implemented jointly with local think tanks inwere created (see the section on subnational Doing Indonesia, Mexico and the Russian Federation.Business indicators). Second, the data often focus on a Besides the subnational Doing Business indicators,specific business form—generally a limited liability Doing Business conducted a pilot study this year oncompany (or its legal equivalent) of a specified size— the second largest city in 3 large economies to assessand may not be representative of the regulation on within-country variations. The study collected data forother businesses, for example, sole proprietorships. Rio de Janeiro in addition to São Paulo in Brazil, forThird, transactions described in a standardized case Beijing in addition to Shanghai in China and for St.scenario refer to a specific set of issues and may not Petersburg in addition to Moscow in Russia.represent the full set of issues a business encounters.Fourth, the measures of time involve an element ofjudgment by the expert respondents. When sources Changes in what is measuredindicate different estimates, the time indicatorsreported in Doing Business represent the median The methodology for 3 of the Doing Business topicsvalues of several responses given under the was updated this year—getting credit, dealing withassumptions of the standardized case. construction permits and paying taxes.Finally, the methodology assumes that a business has First, for getting credit, the scoring of one of the 10full information on what is required and does not components of the strength of legal rights index waswaste time when completing procedures. In practice, amended to recognize additional protections ofcompleting a procedure may take longer if the secured creditors and borrowers. Previously thebusiness lacks information or is unable to follow up highest score of 1 was assigned if secured creditorspromptly. Alternatively, the business may choose to were not subject to an automatic stay or moratoriumdisregard some burdensome procedures. For both on enforcement procedures when a debtor entered areasons the time delays reported in Doing Business court-supervised reorganization procedure. Now the2012 would differ from the recollection of highest score of 1 is also assigned if the law provides secured creditors with grounds for relief from an
    • Doing Business 2012 Côte dIvoire 98automatic stay or moratorium (for example, if the regulatory environment for local entrepreneurs in eachmovable property is in danger) or sets a time limit for economy has changed over time.the automatic stay. Ease of doing businessSecond, because the ease of doing business index now The ease of doing business index ranks economiesincludes the getting electricity indicators, procedures, from 1 to 183. For each economy the ranking istime and cost related to obtaining an electricity calculated as the simple average of the percentileconnection were removed from the dealing with rankings on each of the 10 topics included in the indexconstruction permits indicators. in Doing Business 2012: starting a business, dealingThird, a threshold has been introduced for the total tax with construction permits, registering property, gettingrate for the purpose of calculating the ranking on the credit, protecting investors, paying taxes, tradingease of paying taxes. All economies with a total tax across borders, enforcing contracts, resolvingrate below the threshold (which will be calculated and insolvency and, new this year, getting electricity. Theadjusted on a yearly basis) will now receive the same employing workers indicators are not included in thisranking on the total tax rate indicator. The threshold is year’s aggregate ease of doing business ranking. Innot based on any underlying theory. Instead, it is addition to this year’s ranking, Doing Business presentsmeant to emphasize the purpose of the indicator: to a comparable ranking for the previous year, adjustedhighlight economies where the tax burden on business for any changes in methodology as well as additions of 4is high relative to the tax burden in other economies. economies or topics.Giving the same ranking to all economies whose total Construction of the ease of doing business indextax rate is below the threshold avoids awardingeconomies in the scoring for having an unusually low Here is one example of how the ease of doing businesstotal tax rate, often for reasons unrelated to index is constructed. In the Republic of Korea it takes 5government policies toward enterprises. For example, procedures, 7 days and 14.6% of annual income pereconomies that are very small or that are rich in capita in fees to open a business. There is no minimumnatural resources do not need to levy broad-based capital required. On these 4 indicators Korea ranks in th th rdtaxes. the 18 , 14 , 53 and 0 percentiles. So on average st Korea ranks in the 21 percentile on the ease of th starting a business. It ranks in the 12 percentile onData challenges and revisions th getting credit, 25 percentile on paying taxes, 8 th th percentile on enforcing contracts, 7 percentile onMost laws and regulations underlying the Doing resolving insolvency and so on. Higher rankingsBusiness data are available on the Doing Business indicate simpler regulation and stronger protection ofwebsite at http://www.doingbusiness.org. All the property rights. The simple average of Korea’ssample questionnaires and the details underlying the st percentile rankings on all topics is 21 . When allindicators are also published on the website. Questions economies are ordered by their average percentileon the methodology and challenges to data can be rankings, Korea stands at 8 in the aggregate rankingsubmitted through the website’s ―Ask a Question‖ on the ease of doing business.function at http://www.doingbusiness.org. More complex aggregation methods—such as principal components and unobserved components—Ease of doing business and distance tofrontier 4 In case of revisions to the methodology or corrections to the underlying data, the data are back-calculated to provide aThis year’s report presents results for 2 aggregate comparable time series since the year the relevant economy or topicmeasures: the aggregate ranking on the ease of doing was first included in the data set. The time series is available on thebusiness and a new measure, the ―distance to frontier.‖ Doing Business website (http://www.doingbusiness.org). The DoingWhile the ease of doing business ranking compares Business report publishes yearly rankings for the year of publication as well as the previous year to shed light on year-to-yeareconomies with one another at a point in time, the developments. Six topics and more than 50 economies have beendistance to frontier measure shows how much the added since the inception of the project. Earlier rankings on the ease of doing business are therefore not comparable.
    • Doing Business 2012 Côte dIvoire 99yield a ranking nearly identical to the simple average Consider the example of Canada. It stands at 12 in the 5used by Doing Business. Thus, Doing Business uses aggregate ranking on the ease of doing business. Itsthe simplest method: weighting all topics equally and, ranking is 3 on both starting a business and resolvingwithin each topic, giving equal weight to each of the insolvency, and 5 on protecting investors. But its 6topic components. ranking is only 59 on enforcing contracts, 42 on trading across borders and 156 on getting electricity.If an economy has no laws or regulations covering aspecific area—for example, insolvency—it receives a Variation in performance across the indicator sets is―no practice‖ mark. Similarly, an economy receives a not at all unusual. It reflects differences in the degree―no practice‖ or ―not possible‖ mark if regulation exists of priority that government authorities give tobut is never used in practice or if a competing particular areas of business regulation reform and theregulation prohibits such practice. Either way, a ―no ability of different government agencies to deliverpractice‖ mark puts the economy at the bottom of the tangible results in their area of responsibility.ranking on the relevant indicator. Economies that improved the most across 3 or moreThe ease of doing business index is limited in scope. It Doing Business topics in 2010/11does not account for an economy’s proximity to large Doing Business 2012 uses a simple method to calculatemarkets, the quality of its infrastructure services (other which economies improved the most in the ease ofthan services related to trading across borders and doing business. First, it selects the economies that ingetting electricity), the strength of its financial system, 2010/11 implemented regulatory reforms making itthe security of property from theft and looting, its easier to do business in 3 or more of the 10 topicsmacroeconomic conditions or the strength of 7 included in this year’s ease of doing business ranking.underlying institutions. Thirty economies meet this criterion: Armenia, BurkinaVariability of economies’ rankings across topics Faso, Burundi, Cape Verde, the Central African Republic, Chile, Colombia, the Democratic Republic ofEach indicator set measures a different aspect of the Congo, Côte dIvoire, The Gambia, Georgia, Korea,business regulatory environment. The rankings of an Latvia, Liberia, FYR Macedonia, Mexico, Moldova,economy can vary, sometimes significantly, across Montenegro, Morocco, Nicaragua, Oman, Peru, Russia,indicator sets. The average correlation coefficient São Tomé and Príncipe, Senegal, Sierra Leone,between the 10 indicator sets included in the Slovenia, the Solomon Islands, South Africa andaggregate ranking is 0.36, and the coefficients Ukraine. Second, Doing Business ranks thesebetween any 2 sets of indicators range from 0.17 economies on the increase in their ranking on the ease(between protecting investors and getting electricity) of doing business from the previous year usingto 0.57 (between starting a business and protecting comparable rankings.investors). These correlations suggest that economiesrarely score universally well or universally badly on the Selecting the economies that implemented regulatoryindicators. reforms in at least 3 topics and improved the most in the aggregate ranking is intended to highlight economies with ongoing, broad-based reform programs.5 See Simeon Djankov, Darshini Manraj, Caralee McLiesh and RitaRamalho, ―Doing Business Indicators: Why Aggregate, and How to Distance to frontier measureDo It‖ (World Bank, Washington, DC, 2005). Principal components This year’s report introduces a new measure toand unobserved components methods yield a ranking nearlyidentical to that from the simple average method because both illustrate how the regulatory environment for localthese methods assign roughly equal weights to the topics, since the businesses in each economy has changed over time.pairwise correlations among indicators do not differ much. An The distance to frontier measure illustrates thealternative to the simple average method is to give different weights distance of an economy to the ―frontier‖ and showsto the topics, depending on which are considered of more or lessimportance in the context of a specific economy.6 7 A technical note on the different aggregation and weighting Doing Business reforms making it more difficult to do business aremethods is available on the Doing Business website subtracted from the total number of those making it easier to do(http://www.doingbusiness.org). business.
    • Doing Business 2012 Côte dIvoire 100 the extent to which the economy has closed this gap The difference between an economy’s distance toover time. The frontier is a score derived from the most frontier score in 2005 and its score in 2011 illustratesefficient practice or highest score achieved on each of the extent to which the economy has closed the gap tothe component indicators in 9 Doing Business indicator the frontier over time.sets (excluding the employing workers and getting The maximum (max) and minimum (min) observedelectricity indicators) by any economy since 2005. In values are computed for the 174 economies includedstarting a business, for example, New Zealand has in the Doing Business sample since 2005 and for allachieved the highest performance on the time (1 day), years (from 2005 to 2011). The year 2005 was chosenCanada and New Zealand on the number of as the baseline for the economy sample because it wasprocedures required (1), Denmark and Slovenia on the the first year in which data were available for thecost (0% of income per capita) and Australia on the majority of economies (a total of 174) and for all 9paid-in minimum capital requirement (0% of income indicator sets included in the measure. To mitigate theper capita). effects of extreme outliers in the distributions of theCalculating the distance to frontier for each economy rescaled data (very few economies need 694 days toinvolves 2 main steps. First, individual indicator scores complete the procedures to start a business, but many thare normalized to a common unit. To do so, each of need 9 days), the maximum (max) is defined as the 95the 32 component indicators y is rescaled to (y − percentile of the pooled data for all economies and allmin)/(max − min), with the minimum value (min) years for each indicator.representing the frontier—the highest performance on Take Colombia, which has a score of 0.21 on thethat indicator across all economies since 2005. Second, distance to frontier measure for 2011. This scorefor each economy the scores obtained for individual indicates that the economy is 21 percentage pointsindicators are aggregated through simple averaging away from the frontier constructed from the bestinto one distance to frontier score. An economy’s performances across all economies and all years.distance to the frontier is indicated on a scale from 0 Colombia was further from the frontier in 2005, with ato 100, where 0 represents the frontier and 100 the score of 0.43. The difference between the scores showslowest performance. an improvement over time.
    • Doing Business 2012 Côte dIvoire 101RESOURCES ON THE DOING BUSINESS WEBSITECurrent features Doing Business reformsNews on the Doing Business project Short summaries of DB2012 business regulationhttp://www.doingbusiness.org reforms, lists of reforms since DB2008 and a ranking simulation toolRankings http://www.doingbusiness.org/reforms/How economies rank—from 1 to 183http://www.doingbusiness.org/rankings/ Historical data Customized data sets since DB2004Reports http://www.doingbusiness.org/custom-query/Access to Doing Business reports as well assubnational and regional reports, reform case Law librarystudies and customized economy and regional Online collection of business laws andprofiles regulations relating to business and genderhttp://www.doingbusiness.org/reports/ issues http://www.doingbusiness.org/law-library/Methodology http://wbl.worldbank.org/The methodologies and research papersunderlying Doing Business Contributorshttp://www.doingbusiness.org/methodology/ More than 9,000 specialists in 183 economies who participate in Doing BusinessResearch http://www.doingbusiness.org/contributors/doing-Abstracts of papers on Doing Business topics business/and related policy issueshttp://www.doingbusiness.org/research/
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