Congo, Dem. Rep. Economy Profile - Doing Business 2019
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Doing Business 2019 Congo, Dem. Rep. Economy Profile of Congo, Dem. Rep. Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2
Doing Business 2019 Congo, Dem. Rep. About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2019 Congo, Dem. Rep. Ease of Doing Business in Region Sub-Saharan Africa DB 2019 Rank 190 1 Congo, Dem. Rep. Income Category Low income 184 DB 2019 Ease of doing business score Population 81,339,988 0 100 City Covered Kinshasa 36.85 DB 2019 Ease of Doing Business Score 0 100 77.88: Rwanda (Rank: 29) 60.53: Namibia (Rank: 107) 59.59: Malawi (Rank: 111) 51.61: Regional Average (Sub-Saharan Africa) 47.41: Burundi (Rank: 168) 36.85: Congo, Dem. Rep. (Rank: 184) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Congo, Dem. Rep. 1 28 55 62 82 Rank 109 136 144 156 165 165 168 163 174 180 178 188 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Congo, Dem. Rep. 100 90.24 80 Score 60 53.67 47.14 39.40 40 34.67 36.67 33.28 30.00 20 3.45 0.00 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4
Doing Business 2019 Congo, Dem. Rep. Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a also collected for the second largest business city. business or to leave the home to register the - The entire office space is approximately 929 square meters (10,000 square feet). company - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits. procedures cannot start on the same day) - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final The owners: document is received - Have reached the legal age of majority. If there is no legal age of majority, they are • No prior contact with officials assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5
Doing Business 2019 Congo, Dem. Rep. Starting a Business - Congo, Dem. Rep. Standardized Company Legal form Société Privée à Responsabilité Limité, SPRL Paid-in minimum capital requirement CDF 40,200 City Covered Kinshasa Indicator Congo, Dem. Sub-Saharan OECD high Best Regulatory Rep. Africa income Performance Procedure – Men (number) 4 7.4 4.9 1 (New Zealand) Time – Men (days) 7 23.3 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 26.7 44.4 3.1 0.0 (Slovenia) Procedure – Women (number) 4 7.6 4.9 1 (New Zealand) Time – Women (days) 7 23.4 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 26.7 44.4 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 6.0 10.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Congo, Dem. Rep. and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 94.84: Burundi (Rank: 17) 91.39: Rwanda (Rank: 51) 90.24: Congo, Dem. Rep. (Rank: 62) 78.52: Regional Average (Sub-Saharan Africa) 77.18: Malawi (Rank: 153) 69.06: Namibia (Rank: 172) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6
Doing Business 2019 Congo, Dem. Rep. Figure – Starting a Business in Congo, Dem. Rep. – Procedure, Time and Cost Time (days) Cost (% of income per capita) 7 30 6 Cost (% of income per capita) 25 5 20 Time (days) 4 15 3 10 2 5 1 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2019 Congo, Dem. Rep. Details – Starting a Business in Congo, Dem. Rep. – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Check company name 2 days no charge Agency : Guichet Unique de la Création d'Entreprise Business founders can verify the company name at the Registry free of charge. 2 Register with the Commercial Registry, the tax administration (Direction 3 days USD 120 Générale des Impots), the National Institute for Social Security (INSS) and declare the establishment of the company with the Ministry of Labor Agency : Guichet Unique de la Création d'Entreprises At the One stop shop, companies fill in a “formulaire unique” in order to register with the Commercial Registry, the tax administration (Direction Générale des Impots), the Ministry of Labor and the National Institute for Social Security (INSS) The following documents must be filed: • Identity card or passport (one copy). • Completed BA form • Articles of Association. • A signed declaration from the manager certifying that he has never been arrested by the police. • Declaration of conformity to the law, dated and signed by each founder. • Letter addressed to the divisional clerk of the Commercial Court (Tribunal de Commerce). The BA form can be downloaded through the website www.guichetunique.cf, and the documents can be sent through email. However, most companies do not use this service and it is still required to go in person to the GUFE to pay the required fees. 3 Deposit the capital amount in the bank 1 day no charge Agency : Bank According to the Decree n. 002/cab/min/jgs&dh/014 and n.243/cab/min/finances/2014 of December 30, 2014, the minimum capital funds may be deposited in a bank account opened by the shareholders in a credit institution or an accredited micro-finance institution, and the payment slip shall be deemed to be the proof of the deposit of the said funds. There is a representative of a commercial bank inside the Commercial Registry (one stop shop). The registration fees are also paid at the bank. 4 Declare the establishment of the company with the National Office of 1 day no charge Employment (l’Office National de l’ Emploi, ONEM) Agency : ONEM According to Article 216 of the Labor Code, any physical or legal person planning any activity that requires the hiring of workers must notify the Labor Inspection Department and the National Bureau of Employment within 15 days of the start of business. The declaration is filed in a single form, with one specimen sent to the Inspectorate of Labor and another two to the Office of Employment. Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Congo, Dem. Rep. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or • Registering and selling the warehouse after its topographical experts. completion - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering - Will be used for general storage activities, such as storage of books or stationery. information - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted as procedures. Cost required to complete each procedure (% of - Will take 30 weeks to construct (excluding all delays due to administrative and income per capita) regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be • Quality control before construction (0-1) installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9
Doing Business 2019 Congo, Dem. Rep. Dealing with Construction Permits - Congo, Dem. Rep. Standardized Warehouse Estimated value of warehouse CDF 33,281,211.60 City Covered Kinshasa Indicator Congo, Dem. Sub-Saharan OECD high Best Regulatory Rep. Africa income Performance Procedures (number) 13 14.7 12.7 None in 2017/18 Time (days) 122 145.7 153.1 None in 2017/18 Cost (% of warehouse value) 15.8 8.8 1.5 None in 2017/18 Building quality control index (0-15) 8.0 8.5 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Congo, Dem. Rep. and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 69.79: Namibia (Rank: 83) 67.01: Rwanda (Rank: 106) 61.17: Malawi (Rank: 136) 58.59: Regional Average (Sub-Saharan Africa) 55.14: Burundi (Rank: 162) 53.67: Congo, Dem. Rep. (Rank: 165) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Congo, Dem. Rep. – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 120 9 8 Cost (% of warehouse value) 100 7 80 6 Time (days) 5 60 4 40 3 2 20 1 0 0 1 2 3 4 5 6 7 8 9 * 10 11 12 * 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 10
Doing Business 2019 Congo, Dem. Rep. Figure – Dealing with Construction Permits in Congo, Dem. Rep. and comparator economies – Measure of Quality 15 14.0 Index score 9.5 10 8.0 8.5 8.5 5 4.0 0 Congo, Dem. Rep. Burundi Malawi Namibia Rwanda Sub-Saharan Africa Details – Dealing with Construction Permits in Congo, Dem. Rep. – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain cadastral extract 15 days USD 5 Agency : Urban Survey Department and Cadastre (Divisions Urbaines des Titres Immobiliers et du Cadastre) BuildCo must obtain the survey map abstract which accompanies the plot occupancy deed. 2 Receive inspection before commencement of construction works 1 day no charge Agency : Ministère de l’Urbanisme et de l’Habitat Ministerial Arrete # CAB/MIN.ATUH/SG/MP/GHK/0001/2016 of March 16th 2016 introduced municipal inspections before and during construction. During this inspection of the construction site will be organized to check the ownership and whether there are other constraints, or charges on this lot. The authenticity of the property title and / or any other documents attached to the request for requesting a building permit will be checked as well. 3 Obtain building permit 30 days USD 1,639 Agency : Ministère de l’Urbanisme et de l’Habitat The building permit authorizes the company to erect a structure in durable or semidurable material, according to the zoning laws, irrespective of the intended use. The building permit is valid for 3 years and is renewable. The new Arrêté du Ministre de l’Urbanisme et Habitat n° 027/CAB/MIN.URB.HAB/CJ/AP/CEH/2012 du 3 mars 2012 has delegated the signature on the permit to the local authority. The documents required for a construction permits are as follows: • Leasing contract • Cadastral extract • Request for construction permit • Plan de situation échelle 1/2000 • Plan de masse échelle 1/500 • Plan de situation et d’implantation (rues, voisins, hauteur construction) • Plan exécution échelle 1/50 4 Receive inspection during construction 1 day no charge Agency : Ministère de l’Urbanisme et de l’Habitat This second inspection is to check whether the construction is in compliance with the plans; whether the right construction materials are being used and whether the builder is respecting the schedule. 5 Request and receive final inspection 1 day no charge Agency : Ministère de l’Urbanisme et de l’Habitat According to Article 19 Of the Arrêté ministériel n° CAB/MIN- ATUHITPR/006/2014 portant réglementation de l’octroi du Permis de construire en République Démocratique du Congo of 4 April 2014, BuildCo must request a certificate of conformity in writing. A notice acknowledging that the certificate of conformity has been applied for is issued to BuildCo. The Ministry will proceed with a final inspection to check if the warehouse is in compliance with the approved plans and according to existing urban law. 6 Obtain the certificate of conformity 30 days no charge Agency : Ministère de l’Urbanisme et de l’Habitat 7 Request a new property title at the Property Registry 7 days USD 60 Agency : Conservateur des Titres Foncier et Immobiliers The Conservateur will first issue a «Note de Frais» to the attention of BuildCo. This note de frais must be delivered to the DGERAD agent located in the Property Registry. A “Note de Perception” is issued and must be paid at a commercial bank. Once payment is made at the bank, proof of receipt is delivered to the accounting department and a copy is given to the Conservateur. Page 11
Doing Business 2019 Congo, Dem. Rep. 8 Receive inspection of the property and obtain PV de mise en valeur 15 days no charge Agency : Cadastre An agent will visit the property to check the mise en valeur and will establish a new cadastral map in the name of BuildCo to reflect the construction. 9 Obtain the new property title 7 days no charge Agency : Conservateur des Titres Foncier et Immobiliers The PV de mise en valeur (the new cadastral map) is given to the Conservateur, who will then issue the Property title. This cadastral extract, along with all other documentation, are signed by the Director of the Cadastre Division. Apply to the water corporation for connection to the water mains 1 day USD 100 10 Agency : REGIDESO The time required to connect to the water main depends on how far the building or land is situated from the water source. The time varies between one day and one week. The minimum fee is USD 100.00. 11 Receive inspection by water corporation and receive cost estimate 1 day no charge Agency : REGIDESO 12 Obtain connection to water mains 14 days no charge Agency : REGIDESO Build septic tank 6 days USD 1,750 13 Agency : Private firm Takes place simultaneously with previous procedure. Page 12
Doing Business 2019 Congo, Dem. Rep. Details – Dealing with Construction Permits in Congo, Dem. Rep. – Measure of Quality Answer Score Building quality control index (0-15) 8.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge; In official gazette. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect. Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0 (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction; Mandatory inspections are done most of the time during construction. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Owner or 0.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) investor. Which parties (if any) are required by law to obtain an insurance policy to cover possible Construction 1.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance company. or Decennial Insurance)? (0-1) Professional certifications index (0-4) 1.0 What are the qualification requirements for the professional responsible for verifying that the University degree 1.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or engineering; Being a registered architect or engineer. What are the qualification requirements for the professional who supervises the construction University degree 0.0 on the ground? (0-2) in engineering, construction or construction management. Page 13
Doing Business 2019 Congo, Dem. Rep. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 • Does not include time spent gathering kilowatt (kW). information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property Cost required to complete each procedure (% of because the warehouse has access to a road. income per capita) - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy • Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier. • Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 14
Doing Business 2019 Congo, Dem. Rep. Getting Electricity - Congo, Dem. Rep. Standardized Connection Price of electricity (US cents per kWh) 7.3 Name of utility Société Nationale d'Electricité (SNEL) City Covered Kinshasa Indicator Congo, Dem. Sub-Saharan OECD high Best Regulatory Rep. Africa income Performance Procedures (number) 6 5.2 4.5 3 (25 Economies) Time (days) 44 112.0 77.2 18 (3 Economies) Cost (% of income per capita) 14195 3456.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 0 1.6 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Congo, Dem. Rep. and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 78.72: Rwanda (Rank: 68) 78.25: Namibia (Rank: 71) 49.00: Regional Average (Sub-Saharan Africa) 44.40: Malawi (Rank: 169) 34.67: Congo, Dem. Rep. (Rank: 174) 26.45: Burundi (Rank: 183) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 15
Doing Business 2019 Congo, Dem. Rep. Figure – Getting Electricity in Congo, Dem. Rep. – Procedure, Time and Cost Time (days) Cost (% of income per capita) 14000 40 12000 Cost (% of income per capita) 35 10000 30 Time (days) 25 8000 20 6000 15 4000 10 2000 5 0 0 1 2 3 *4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Congo, Dem. Rep. and comparator economies – Measure of Quality 8 7 6 6 Index score 5 5 4 3 2 1.6 1 0 0 0 0 Congo, Dem. Rep. Burundi Malawi Namibia Rwanda Sub-Saharan Africa Page 16
Doing Business 2019 Congo, Dem. Rep. Details – Getting Electricity in Congo, Dem. Rep. – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit connection application, including the private substation plans, and 5 calendar days USD 59 await site inspection Agency : Société Nationale d'Electricité (SNEL) The application for electricity connection can be submitted online. The following documents have to be provided: Letter of intention, photocopy of identity card of the customer, photocopies of the cadastre documents, and the approval of the electricity connection of the warehouse. The documents do not need to be notarized. After submitting the documents, the customer has to wait for the external inspection and the estimate. For a medium voltage connection, the SNEL does not require the plans of the internal wiring. 2 Receive external site inspection by SNEL and await estimate 5 calendar days USD 2,411 Agency : Société Nationale d'Electricité (SNEL) There is an external inspection of the warehouse by SNEL engineers in order to authorize and produce the quote for the new connection. Once the quote is received, the client pays it. 3 Have electrical contractor build private substation 20 calendar days USD 55,000 Agency : Electrical Contractor A load of 140 kVA cannot be accommodated in this area by a simple hook-up and cannot be connected to the low-voltage network. The limit is 59.5 KW, or 112 Ampere. Therefore, the customer has to build a private substation to connect medium-voltage to low-voltage according to the regulation of SNEL. The customer has to buy all the material. He can buy it at any store of his choice. The works to build a substation cannot be done by a licensed electrician, but has to be done by a licensed electrical company. This company has to be licensed by the Ministry of Energy and by SNEL. 4 Obtain excavation permit from road authority 10 calendar days USD 2,492.28 Agency : OVD (Office de Voirie et Drainage) Customers need to go to the OVD (Office de Voirie et Drainage) in person to request and obtain an excavation permit. 5 Receive external inspection of private substation by SNEL 4 calendar days USD 0 Agency : Société Nationale d'Electricité (SNEL) After the substation has been built, the customer - or the contractor - notifies the SNEL so that an inspection can be conducted. The purpose of this inspection by SNEL technicians is to check if the substation has been constructed according to security and environmental protection norms. The customer or the electrical contractor has to purchase the material for the connection and have it controlled by SNEL. A person representing the customer has to be present at the control. 6 Sign supply contract and receive the meter installation and final 10 calendar days USD 3,915.21 connection by SNEL Agency : Société Nationale d'Electricité (SNEL) After the substation is approved by the SNEL, the SNEL comes to the site to do the external connection works and connect the substation to the network. The electricity has to be shut down during the connection works for the medium- voltage connection. The installation of the meter and connection works are done at the same time by the same department by SNEL. If meters are not available, the meter can be installed after the actual connection has been done. The electricity will start flowing after the supply contract is signed. The SNEL will also request from the client a security deposit which depends on the power demand of the client. Takes place simultaneously with previous procedure. Page 17
Doing Business 2019 Congo, Dem. Rep. Details – Getting Electricity in Congo, Dem. Rep. – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://www.snel.cd/cli ents/conseils/compre ndrefact.php Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 18
Doing Business 2019 Congo, Dem. Rep. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past 10 years. • Each procedure starts on a separate day - - Is registered in the land registry or cadastre, or both, and is free of title disputes. though procedures that can be fully completed online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. - Has no trees, natural water sources, natural reserves or historical monuments of • Official costs only (such as administrative fees, any kind. duties and taxes). - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 19
Doing Business 2019 Congo, Dem. Rep. Registering Property - Congo, Dem. Rep. Indicator Congo, Dem. Sub-Saharan OECD high Best Regulatory Rep. Africa income Performance Procedures (number) 8 6.2 4.7 1 (4 Economies) Time (days) 38 53.9 20.1 1 (New Zealand) Cost (% of property value) 10.3 7.6 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 10.0 8.8 23.0 None in 2017/18 Figure – Registering Property in Congo, Dem. Rep. and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 93.70: Rwanda (Rank: 2) 65.12: Malawi (Rank: 83) 62.58: Burundi (Rank: 97) 52.62: Regional Average (Sub-Saharan Africa) 47.14: Congo, Dem. Rep. (Rank: 156) 40.19: Namibia (Rank: 174) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Congo, Dem. Rep. – Procedure, Time and Cost Time (days) Cost (% of property value) 6 35 5 Cost (% of property value) 30 25 4 Time (days) 20 3 15 2 10 1 5 0 0 1 2 3 4 5 6 7 8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 20
Doing Business 2019 Congo, Dem. Rep. Figure – Registering Property in Congo, Dem. Rep. and comparator economies – Measure of Quality 30 28.5 25 Index score 20 15 10.0 10.5 9.5 10 8.8 4.5 5 0 Congo, Dem. Rep. Burundi Malawi Namibia Rwanda Sub-Saharan Africa Details – Registering Property in Congo, Dem. Rep. – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Conduct a title search at the Registrar of Properties and Cadastre 2 days USD 15 Agency : Registrar of Property (Conservateur des Titres Immobiliers) Parties conduct a search title to verify the history of the property and the validity of the title. Encumbrances are written on the back of the title at the "Conservateur des Titres Immobiliers", and the legality/authenticity of the title is also checked during this process. There is no official fees or official forms, and the information could be obtained between 1 and 2 days after the request. There are a lot of fakes property titles in DRC, making this an essential step previous to the property transaction. 2 Sign the sales agreement with a lawyer 2 days USD 1,125; (5% of Agency : Lawyer the property value) While there is no obligation by law to hire the services of a lawyer to prepare the sales agreement, it is common practice for companies (as in the Doing Business case study) to employ such services. The lawyer would generally be in charge of collecting the necessary documents to prepare the sales agreement and present the file to the Land Registry (Conservation Foncière). 3 Sale deed authenticated by the Property Registrar and application made for 7 days USD 260; ($ 80 - $ replacement of registration certificate 120 - a photograph of Agency : Registrar of Property (Conservateur des Titres Immobiliers) the seller and buyer The parties present the sale agreement to the Registrar (Conservateur) acting as $100 notarized sale a notary, for its authentication. Simultaneously the parties apply for replacement agreement of the registration certificate at the Registry Office. The buyer submits both the registration certificate and the concession certificate to the “Conservateur des $ 60 new property Titres Immobiliers” (Registry Office) to check their validity. Since 1973, the law title) has allowed for the Registrar to act as notary for the specific purpose of registering property titles. This is standard practice. The Conservateur will establish a “Note de Frais” which the buyer must give to the DGRAD agent located in the Registry. The Agent will establish a “Note de perception’ to be paid at the bank. Also, pictures of all parties involved in the transaction (buyer, seller, lawyers, and witnesses) are taken at the Land Registry. The old record on the registration book is voided with a stamp, adding a comment indicating the reasons for the avoidance as well as the date and number of the new certificate. 4 A land surveyor from the cadastre inspects and values the property and 7 days USD 75; ($50 - 100 prepares the cadastral plan (paid to the surveyor; Agency : Cadastre - Registry Office (Conservateur) including surveying The Cadastre is a department within the Registry Office (Conservateur). The fees and expenses)) Cadastre designates a land surveyor to inspect and value the property. The geometric engineers produce the cadastral extracts by verifying the property value, measuring its limits and preparing the cadastral map. The Cadastre checks that the parcel is correctly described and determines the correct value of the property. 5 An order of payment for state taxes is issued by the tax agent (DGRAD) 3 days no charge Agency : General Direction of Administrative and Judicial Revenues (Direction générale des recettes administratives, judiciaires, domaniales et de participations, DGRAD) The payment order is then sent to the Direction Générale des Recettes Administratives, Judiciares, Domaniales et de Participation (DGRAJ, General Direction of Administrative and Judicial Revenues) that will prepare the appropriate payment order to pay the state rights in a commercial bank. Page 21
Doing Business 2019 Congo, Dem. Rep. 6 The state fees are paid at a commercial bank 1 day USD 675; (3% of the Agency : Commercial Bank property value for the Payment for all fees is made at a commercial bank. A receipt is obtained. This registration fee) receipt must be deposited at the accounting department of the DGRAD and copy delivered to the Registrar as proof of payment. Transfer fees are determined by the Arreté Interministériel n°18/CAB/MIN.AFF.FONC/2016 et n°156/CAB/MIN/FINANCES/2016. 7 A new registration certificate in the name of the buyer is issued 14 days no charge Agency : Registrar of Property (Conservateur des Titres Fonciers) The Registrar (Conservateur), acting as notary, will notarize the sale contract, following the article 231 de La loi du 20 juillet 1973, that no transfer of property is valid unless the sale contract is notarized. The Registrar will ask for payment of any additional taxes, if applicable. Once these are paid, the Registrar nullifies the old title deed (Certificat d’Enregistrement) in the name of the seller and issues a new title deed in the name of the buyer. It serves as the buyer’s new ownership entitlement. The law also stipulates that the Conservateur can notarize the Sale Agreement just before the transfer. 8 Submit the registration certificate to be digitized at Congo Check 2 days USD 170; ($90 - $250 Agency : CONGO CHECK Sarl for a commercial- Since August 2016 it is required for the owner to submit the updated registration industrial 2-story certificate for digitization of the records. Once the transfer is completed at the building depending Registrar, the new owner proceeds to Congo Check to deposit the required the location in the documents. As a result, Congo check will produce a certificate of registration including the information on the property and its owner. Commune of Kinshasa) Takes place simultaneously with previous procedure. Page 22
Doing Business 2019 Congo, Dem. Rep. Details – Registering Property in Congo, Dem. Rep. – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 2.0 What is the institution in charge of immovable property registration? The Land Registry (La Circonscription Foncière) In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Land Cadastre (Le Cadastre Foncier) In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Different 1.0 or mapping agency kept in a single database, in different but linked databases or in separate databases but databases? linked Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0 same identification number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0 property registration in the largest business city? pays the official fee Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5 publicly available–and if so, how? Link for online access: http://www.legan et.cd/Legislation/ Droit%20des%20 biens/Note.circul aire.28.11.2014.h tm Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: https://www.inves tindrc.cd/fr/climat -des- affaires/indicateur s-doing- business/transfer t-de- propriete/arrete- interministeriel-n- 128-cab-min-aff- fonc-2016-du-12- aout-2016- modifiant-l- arrete-du-26- mars-2016- portant-fixation- des-taux-des- droits-taxes-et- redevances-a- percevoir-a-l- initiative-du- ministere-des- affaires-foncieres Page 23
Doing Business 2019 Congo, Dem. Rep. Does the agency in charge of immovable property registration commit to delivering a legally Yes, online 0.5 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: http://www.legan et.cd/Legislation/ Droit%20des%20 biens/Note.circul aire.28.11.2014.h tm Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2017: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the official fee Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5 and if so, how? Link for online access: https://www.inves tindrc.cd/fr/climat -des- affaires/indicateur s-doing- business/transfer t-de- propriete/arrete- interministeriel-n- 128-cab-min-aff- fonc-2016-du-12- aout-2016- modifiant-l- arrete-du-26- mars-2016- portant-fixation- des-taux-des- droits-taxes-et- redevances-a- percevoir-a-l- initiative-du- ministere-des- affaires-foncieres http://www.legan et.cd/Legislation/ Dfiscal/Impot/O7 9.112.09.05.1979 .htm Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 specific time frame—and if so, how does it communicate the service standard? Link for online access: http://www.legan et.cd/Legislation/ Droit%20des%20 biens/Note.circul aire.28.11.2014.h tm Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Page 24
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