Jamaica Economy Profile - Doing Business 2019
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Doing Business 2019 Jamaica Economy Profile of Jamaica 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 Jamaica 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 Jamaica Ease of Doing Business in DB 2019 Rank Region Latin America & Caribbean 190 1 Jamaica Income Category Upper middle income 75 DB 2019 Ease of doing business score Population 2,890,299 0 100 City Covered Kingston 67.47 DB 2019 Ease of Doing Business Score 0 100 69.46: Puerto Rico (U.S.) (Rank: 64) 67.47: Jamaica (Rank: 75) 59.48: Antigua and Barbuda (Rank: 112) 58.97: Regional Average (Latin America & Caribbean) 54.36: St. Kitts and Nevis (Rank: 140) 52.71: Grenada (Rank: 147) 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 - Jamaica 1 6 12 28 33 55 76 82 89 Rank 109 115 123 127 131 134 136 163 190 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 - Jamaica 100 97.35 85.00 80 70.71 69.83 64.96 64.79 61.54 Score 60 53.61 55.00 51.87 40 20 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 Jamaica 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 business or to leave the home to register the also collected for the second largest business city. company - The entire office space is approximately 929 square meters (10,000 square feet). - 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 procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits. - 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 document is received The owners: • No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are 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 Jamaica Starting a Business - Jamaica Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement JMD 0 City Covered Kingston Indicator Jamaica Latin America OECD high Best Regulatory & Caribbean income Performance Procedure – Men (number) 2 8.2 4.9 1 (New Zealand) Time – Men (days) 3 28.5 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 4.4 37.8 3.1 0.0 (Slovenia) Procedure – Women (number) 2 8.2 4.9 1 (New Zealand) Time – Women (days) 3 28.5 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 4.4 37.8 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 0.0 1.5 8.6 0.0 (117 Economies) Figure – Starting a Business in Jamaica and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 97.35: Jamaica (Rank: 6) 91.23: Puerto Rico (U.S.) (Rank: 53) 87.26: Grenada (Rank: 85) 85.78: St. Kitts and Nevis (Rank: 95) 81.74: Antigua and Barbuda (Rank: 131) 79.40: Regional Average (Latin America & Caribbean) 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 Jamaica Figure – Starting a Business in Jamaica – Procedure, Time and Cost Time (days) Cost (% of income per capita) 3 5 Cost (% of income per capita) 2.5 4 2 Time (days) 3 1.5 2 1 1 0.5 0 0 1 2 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 Jamaica Details – Starting a Business in Jamaica – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Ascertain from the Registrar of Companies whether the desired name is 1 day JMD 500 available and acceptable Agency : Companies Office of Jamaica The proposed company files a Form 6 - Name Search and Name Reservation with the Companies Office of Jamaica to ascertain the availability of the name at a cost of JMD 500. It is also recommended that a name reservation be done for an additional JMD 3,000 to reserve the name for 90 days. 2 File the Article of Incorporation and Business Registration Form with the 2 days for next day see procedure details Companies Registry Office service Agency : Companies Office of Jamaica Entrepreneurs are not required to submit forms separately to the National Insurance Scheme (NIS), Taxpayer Registration Number (TRN) and General Consumption Tax (GCT). These registrations are subsumed under the Business Registration Form. Only two forms are required, the Article of Incorporation form and the Business Registration Form. Cost details: JMD 24,000 (registration fee) + JMD 500 for stamp duty + 3,000 (next day processing) Takes place simultaneously with previous procedure. Page 8
Doing Business 2019 Jamaica 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 • Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or completion topographical experts. - 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 information - Will be used for general storage activities, such as storage of books or stationery. - 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 Cost required to complete each procedure (% of as procedures. income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and 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 • Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be 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 Jamaica Dealing with Construction Permits - Jamaica Standardized Warehouse Estimated value of warehouse JMD 31,584,790.70 City Covered Kingston Indicator Jamaica Latin America OECD high Best Regulatory & Caribbean income Performance Procedures (number) 19 15.4 12.7 None in 2017/18 Time (days) 141.5 199.0 153.1 None in 2017/18 Cost (% of warehouse value) 1.6 3.2 1.5 None in 2017/18 Building quality control index (0-15) 12.0 8.9 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Jamaica and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 74.62: St. Kitts and Nevis (Rank: 47) 70.71: Jamaica (Rank: 76) 68.14: Antigua and Barbuda (Rank: 97) 63.48: Regional Average (Latin America & Caribbean) 62.53: Grenada (Rank: 130) 59.38: Puerto Rico (U.S.) (Rank: 141) 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 Jamaica – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 140 0.7 120 0.6 Cost (% of warehouse value) 100 0.5 Time (days) 80 0.4 60 0.3 40 0.2 20 0.1 0 0 1 *2 *3 *4 *5 *6 *7 8 *9 10 11 12 13 14 15 16 17 18 19 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 Jamaica Figure – Dealing with Construction Permits in Jamaica and comparator economies – Measure of Quality 15 12.0 12.0 Index score 10 9.0 8.9 7.0 5.0 5 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Dealing with Construction Permits in Jamaica – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a certified copy of the property title 1 day JMD 1,000 Agency : Jamaican Land Registry One of the requirements to obtain a building permit is to provide a proof of ownership. This document must be a certified copy of the property title. 2 Obtain a soil test study 25 days JMD 150,000 Agency : Private firm Based on The Kingston and St. Andrews Building Act LN/42/1995, a soil test is required for the foundation of a warehouse. 3 Obtain results of topographical survey 25 days JMD 100,000 Agency : Private/ commissioned land surveyor A topographical survey is required for the site plan, which is one of the requirement to obtain a building permit (Article 25 of the Building Act of Kingston and St. Andrews). The Site plan must show the contour lines for Gradient 15 degrees (1:4) and over where the land is susceptible to flooding and landslide (existing land contours at a maximum of 3m increments or as required by your Local Planning Authority). The certified property title is needed to obtain this survey. 4 Hold pre-application consultation/facilitation meeting with DAC 14 days no charge Agency : Development Assistance Centre Development Assistance Centre (DAC) now assists in pre-Application evaluation and gives guidance on the technical requirements that will support the application. The DAC may also call meetings between all of the relevant government agencies to allow them to review and provide guidance and comments. The response will include an indication of any potential issues identified and a Technical Information Document (TID) which details the relevant guidelines that are to be followed to streamline and process the application. Once the pre-consultation has been done and the TID provided, the applicant is then advised to use the guidance to formalize the project, the DAC also offers to review the resultant application and submission for completeness prior to submission. Once satisfied the application is submitted in to the Development Application Review Process. 5 Obtain a property tax certificate 1 day no charge Agency : Tax Administration Jamaica : It is now a mandatory requirement when applying for a building permit to also submit a property Tax certificate to show that the owner is up to date with all property taxes. The owner will go to the ax authority with all the property tax receipts and request a certificate showing that there are no outstanding property tax to be paid. 6 Obtain sewage permit to connect to public sewage 7 days JMD 5,000 Agency : National Water Commission Before a formal application for the building permit can be submitted, it is important to obtain a sewage permit. This will show that both water and sewage are available in this area. The architect/engineer must show how the connection to sewage will be done and this plan will be approved by NWC. When the certificate letter is obtained, there is a fee of JMD 5000 to be paid. 7 Obtain fire approval certificate 7 days JMD 4,000 Agency : Jamaica Fire Brigade Before a formal application for the building permit can be submitted, it is important to obtain a clearance certificate from the Fire Brigade. Page 11
Doing Business 2019 Jamaica 8 Obtain approval of building plans by KSAC 90 days JMD 181,078 Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo must obtain approval of building plans from the Planning Authority, the Fire Department, the National Environment and Planning Agency (NEPA), and other authorities concerned. Several documents are required to obtain this approval, including a property title and proof of ownership. Approval is valid for 2 years and can be renewed. To obtain approval, BuildCo files the drawings with the municipality. Four meetings are held to review the drawings: • Fire • Health • Road • A general meeting after all others are completed and NEPA approval is received Each meeting has a set date, normally one per week sequentially. If there is a holiday, the meeting will be postponed. If BuildCo misses a meeting, the whole process will be prolonged. 9 Obtain approval from the National Environment and Planning Agency 20 days JMD 2,000 (NEPA) Agency : National Environmental Protection Agency Meanwhile, BuildCo files the same document with the National Environment and Planning Agency (NEPA) for approval of the plans. In simple cases, the approval takes 10 workings days. In complicated cases, an environmental impact assessment is required and approval might take much longer. BuildCo files NEPA's approval with the municipality. 10 Notify the Municipality of the commencement of work 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo must inform the Municipal Authority (KSAC) Kingston & St. Andrew Corporation when the construction work will start. 11 Request and receive excavation inspection from KSAC 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation BuildCo sends a written notification enclosed with the project approval number to the building authority 3 days in advance of the excavation inspection. If the inspector comes on schedule, construction work does not have to stop. 12 Request and receive foundation steel inspection from KSAC 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation 13 Request and receive beam and roof inspection 1 day no charge Agency : Municipal Authority (KSAC) Kingston & St. Andrew Corporation 14 Request and receive inspection by the Fire Brigade 1 day no charge Agency : Jamaica Fire Brigade The Jamaica Fire Brigade will conduct an inspection of the warehouse to ensure that reasonable steps are taken for the prevention of fire and for protection against the dangers of fire. This is a pre-condition to requesting the final inspection by the Building Control Department. 15 Request and receive inspection by the Ministry of Environmental Health 1 day no charge Agency : Ministry of Environmental Health An inspection by the Ministry of Environmental Health stating that the building is in compliance with the environmental health standards is a prerequisite to requesting the final inspection by the Building Control Department. 16 Request and receive final inspection 1 day no charge Agency : Building Control Department BuildCo must submit a completion form and send to the Building Control Department to receive the final inspection once the Jamaica Fire Brigade and the Ministry of Environmental Health have both inspected the building. It will be the responsibility of the architect and engineer to issue the certificate of compliance once the final inspection is over. 17 Apply for water and sewage connection 0.5 days no charge Agency : National Water Commission Updated requirements for obtaining water and sewage connections were issued by the National Water Commission (NWC) in May 2011. It is necessary to make a deposit when applying for the connection - the amount depends on whether or not the layout of the pipes are conducted by a private contractor or by NWC. 18 Receive inspection from the National Water Commission to assess the cost 1 day no charge of connection Agency : National Water Commission Page 12
Doing Business 2019 Jamaica 19 Obtain water and sewage connection 16 days JMD 55,000 Agency : National Water Commission Takes place simultaneously with previous procedure. Page 13
Doing Business 2019 Jamaica Details – Dealing with Construction Permits in Jamaica – Measure of Quality Answer Score Building quality control index (0-15) 12.0 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. 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; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections at 2.0 (0-2) various phases; Risk-based inspections. 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; Final inspection occurs most of the time. 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 Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law or Decennial Insurance)? (0-1) to obtain insurance . Professional certifications index (0-4) 4.0 Page 14
Doing Business 2019 Jamaica What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the qualification requirements for the professional who supervises the construction Minimum number 2.0 on the ground? (0-2) of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Page 15
Doing Business 2019 Jamaica 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 Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property income per capita) because the warehouse has access to a road. - 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 • Value added tax excluded switchboard and the meter base. 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 • Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy 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 • Regulatory monitoring of utilities’ performance supplier. (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 16
Doing Business 2019 Jamaica Getting Electricity - Jamaica Standardized Connection Price of electricity (US cents per kWh) 22.3 Name of utility Jamaica Public Service Co. Ltd. City Covered Kingston Indicator Jamaica Latin America OECD high Best Regulatory & Caribbean income Performance Procedures (number) 7 5.5 4.5 3 (25 Economies) Time (days) 95 65.5 77.2 18 (3 Economies) Cost (% of income per capita) 203.9 946.3 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff 5 4.3 7.5 8.0 (27 Economies) index (0-8) Figure – Getting Electricity in Jamaica and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 80.39: Antigua and Barbuda (Rank: 63) 73.43: Puerto Rico (U.S.) (Rank: 88) 73.34: Grenada (Rank: 89) 70.59: Regional Average (Latin America & Caribbean) 70.11: St. Kitts and Nevis (Rank: 102) 64.96: Jamaica (Rank: 115) 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 17
Doing Business 2019 Jamaica Figure – Getting Electricity in Jamaica – Procedure, Time and Cost Time (days) Cost (% of income per capita) 180 90 160 Cost (% of income per capita) 80 140 70 120 60 Time (days) 100 50 80 40 30 60 20 40 10 20 0 0 1 2 3 *4 5 6 7 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 Jamaica and comparator economies – Measure of Quality 8 7 6 Index score 5 5 4.3 4 4 3 3 3 2 1 0 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Page 18
Doing Business 2019 Jamaica Details – Getting Electricity in Jamaica – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit electrical design to Government Electrical Inspector (GEI) for 7 calendar days JMD 0 approval Agency : Government Electrical Inspectorate 2 Electrical contractor applies for Govt. of Jamaica Electrical Dept (GEI) 1 calendar day JMD 16,000 Inspection Certificate Agency : The Govt. of Jamaica Electrical Dept. (GEI) offices When the service order is generated, the parish office is informed and a team dispatched to conduct site visit which includes easement needed to ensure that construction process will not be held up and time and other resources are not spent unnecessarily. The findings from the inspection will be entered into a database that has predefined measurements based on the regular, current and projected factors that facilitate the successful completion of any particular job. The result will determine the final cost. Via Registered Licensed Electrician, the relevant inspection fees are paid at the Government Collectorate Office. Payment receipt accompanied with the relevant application forms are submitted to GEI's office for review and site inspection. Inspection is scheduled with the Electrician (normally done within 2 weeks). 3 Receive internal wiring inspection by GEI and await preparation of report 21 calendar days JMD 0 Agency : The Govt. of Jamaica Electrical Dept. (GEI) offices The inspector conducts the internal wiring inspection based on the Jamaican 21 standard. If the customer premises structure of internal wiring used is accepted, the record of the inspection and results is recorded and the relevant information based on size, type and location of customer premises is sent to JPS. In cases where the internal wiring is not accepted, the customer is informed and has to restart the process. 4 Submit application to JPSCo and await site visit 7 calendar days JMD 0 Agency : Jamaica Public Service Company At the Application stage, applicants are only required to submit an application letter stating the following: Name & Contact details, address where service is required, when service is required, load details of major equipment, to be used in new/expanded facility - rating in kilovolt amperes (kVA) or ampere (A) units. Also where applicable, the applicant should state details of load balancing for a 3 phase supply ( a single line drawing and copies of GEI Report/Certificate is normally accepted, but is not a requirement at this stage of the process). 5 Receive site inspection by JPSCo and await estimate 10 calendar days JMD 0 Agency : Jamaica Public Service Company When the service order is generated, the Engineering Team is informed in the case of complex connections to conduct a site visit. The site visit is conducted to determine the site layout and the requirements that will have to be met to supply the customer with electricity. Requirements include number of poles, transformers, length of conductor among other items that will be needed. A drawing is prepared of the site layout, to outline to the Easement team, any situations that may require legal action or reference and the reasoning behind such action; as well as the Construction Team, to facilitate the successful execution of the development process. The findings from the site visit will be entered into an application that has predefined measurements based on the regular, current and projected factors that facilitate the successful completion of any particular job. The result will determine the final estimate. This cost is communicated to the customer. [This particular case is not considered as such to warrant the inclusion of easement costs in total estimate, but in a many cases, a provision is made for such costs when an electrical equipment other than a service wire may need to be placed on a customer's or connecting customer's premises to successfully execute the construction process]. In short, the process is as below: 1. Engineering team conducts site inspection and determines site layout and other requirements to meet customer's supply needs. 2. A drawing of the site layout is prepared and easement requirements noted, where necessary. 3. Estimate reflecting the costs for material and labour is prepared. 4. This cost is communicated to the customer. 6 Purchase material and obtain external works from electrician 7 calendar days JMD 250,000 Agency : Electrical Contractor There is some external connection works which the customer needs to do, This is basically the external wiring up to point of connection provided by utility, a panel board, switchboard, and cables. Page 19
Doing Business 2019 Jamaica 7 Pay security deposit, receive external works, meter installation and 49 calendar days JMD 1,021,965.85 electricity flow from utility Agency : Jamaica Public Service Company 1. Once the customer pays the construction estimate, JPS carries out the necessary construction works and external connections. 2. JPS invites the GEI to inspect and certify works completed. 3. It is at this stage that GEI certification for the customer facility is also required. Such certification is normally submitted directly to JPS from the GEI's Office. 4. Upon confirmation of GEI certification for both the customer's facility and JPS works carried out, the customer is asked to pay the security deposit and provide any other outstanding documentation to complete the supply contract. 5. Customer signs contract, meter is installed and electricity starts flowing. Takes place simultaneously with previous procedure. Page 20
Doing Business 2019 Jamaica Details – Getting Electricity in Jamaica – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 5 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 46.2 System average interruption frequency index (SAIFI) 19.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes 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 https://www.jpsco.co m/wp- content/uploads/JPS -RateSchedule- 2015.pdf 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 21
Doing Business 2019 Jamaica 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 • Each procedure starts on a separate day - 10 years. though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes. 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, duties and taxes). any kind. - 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 22
Doing Business 2019 Jamaica Registering Property - Jamaica Indicator Jamaica Latin America OECD high Best Regulatory & Caribbean income Performance Procedures (number) 8 7.2 4.7 1 (4 Economies) Time (days) 19 63.3 20.1 1 (New Zealand) Cost (% of property value) 9.8 5.8 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 14.0 11.9 23.0 None in 2017/18 Figure – Registering Property in Jamaica and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 56.63: Antigua and Barbuda (Rank: 120) 55.25: Regional Average (Latin America & Caribbean) 53.61: Jamaica (Rank: 131) 50.14: Grenada (Rank: 146) 46.14: Puerto Rico (U.S.) (Rank: 159) 28.80: St. Kitts and Nevis (Rank: 185) 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 Jamaica – Procedure, Time and Cost Time (days) Cost (% of property value) 10 18 16 Cost (% of property value) 8 14 12 Time (days) 6 10 8 4 6 4 2 2 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 23
Doing Business 2019 Jamaica Figure – Registering Property in Jamaica and comparator economies – Measure of Quality 30 25 Index score 19.0 20 15 14.0 13.5 11.9 10 9.0 7.0 5 0 Jamaica Antigua and Barbuda Grenada Puerto Rico (U.S.) St. Kitts and Nevis Latin America & Caribbean Details – Registering Property in Jamaica – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a Title Search Certificate that shows all encumbrances on the 2 days JMD 1,500; (Title property and a copy of the Title at the National Land Agency Search Certificate = Agency : National Land Agency JMD 1000 & Copy of The lawyer carries out a title search and obtains a copy at the National Land Land Title JMD 500.) Agency (costs JMD 500). Furthermore it is a common practice to request a Title Search Certificate to verify all encumbrances, liens or caveats registered or attached to the title (costs JMD 1,000). It is best practice to request both a copy title and search certificate. The title search can be done electronically by the lawyer (for an additional fee) and the cost, by law, is born by the purchaser (Conveyancing Act). The caveat search can now be done online at https://www.elandjamaica.gov.jm However, the Title Search Certificate cannot be obtained online, as it must be duly stamped by the National Land Agency. The certificate provides more legal security as it provides comprehensive information of all registered encumbrances that affect the property which are guaranteed by the National Land Agency at the moment of expedition of the certificate. It takes between 2 and 5 days to obtain the certificate. The National Land Agency does not notify when the certificate has been issued so users have to follow up on a regular basis to retrieve the certificate. 2 Verification that the Company is properly registered with the Registrar of Less than one day, JMD 1,000 Companies online Agency : Registrar of Companies The attorney-at-law submits to the Registrar of Titles a sworn affidavit (standard form) that the company is properly registered at the Company registry. Since 2014, the Registrar of Titles does the verification and no longer requires the certificate's submission. However, it is still common practice for attorneys to obtain and submit the document. It is possible to verify if the company is active in http://www.orcjamaica.com/search/viewdocumentsplus.asp 3 Obtain a certificate of payment of property taxes from the Inland Revenue 1 day no charge Department Agency : Inland Revenue Department The parties need to submit a certificate of payment of property taxes to obtain the Stamp Commissioner’s certificate. A statement showing the property taxes payable/ that no taxes are payable is available online at https://www.jamaicatax.gov.jm/property-tax-query. However, the Stamp Office does not accept this statement for the purposes of assessing the Agreement for taxes payable on the sale and requires the above mentioned certificate. 4 Assessment of tax and duties at the Government Stamp Office 7 days no charge Agency : Tax Administration Jamaica A signed Agreement for Sale (AFS) is sent for assessment of duties at the Tax Payer Audit & Assessment Department of the National Tax Authority. The documents must have a properly completed Stamping Requisition Form (Form1 – Regulation 3) and Taxpayer Registration Number (TRN) for the applicant and all parties to the transaction. Turn around time for the assessment of taxes payable on the sale can range from a short 7 days to as long as 30 days in some instances. Longer periods normally happen when the Stamp Office sends inspectors to conduct a site visit to determine whether the purchase price payable in the sale is above or below market value. Page 24
Doing Business 2019 Jamaica 5 Obtain a Surveyor’s Identification Report 7 days JMD 80,000 Agency : Commissioned Land Surveyor The parties need to obtain a surveyor's identification report (SIR) from a commissioned land surveyor. The SIR is not mandated by law, but done in practice for due diligence purposes. The SIR is carried out on a property to determine whether building encroachments have been made on a boundary or neighboring property. The SIR includes the following information about the property: the volume and folio numbers; the lot number and deposit plan number (if any); the physical address and name stated on the property title. The surveyor also states if the boundary is in general agreement with the registered boundary, if the restrictive covenants have been checked and if there are any breaches of these covenants.He also states if there is any evidence of an easement on the property as well as if there are buildings on the property. Mention is made as to the nature of the boundary, whether it is open or the type of fence around the perimeter. The report includes a sketch plan showing the property and what unit of measurement is used. Preparing the report generally also attracts General Consumption Tax of 16.5% (not included when calculating the costs of this procedure). 6 Attorney witnesses the transfer instrument 1 day No cost if the attorney Agency : Attorneys' Office or the justice of The transfer instrument needs to be witnessed, according to section 152 of the peace witness the Registration of Title Act (Attestation of Instrument), by any of the following: the transfer. Governor-General, any of the Judges of the Supreme Court, or any Justice of the USD 50 if a notary Peace, or the Registrar under this Act, or a Notary Public, or a Solicitor of the public witnesses the Supreme Court. The instrument of transfer must be witnessed prior to submitting the document to cross stamping, and before submitting for registration at the transfer Land Registry. The Act lists several functionaries including the Justice of the Peace and Attorney of Law and Notary Public. The Notary Public charges a fee but the Justice of Peace does not charge a fee. A notary will charge around 50 USD for this operation. If a lawyer is involved in the entire process, he can act as a witness. 7 Tax and duties are paid at the National Tax authority and the transfer 5 days JMD 2,842,631.16; instrument is crossed-stamped (5% of property value Agency : Tax Administration Jamaica (Transfer Tax) + 4% Payments of Stamp Duty and Transfer Tax may be paid using Cash/Certified of property value Manager’s Cheque/Debit or Credit Card/Letter of Undertaking or Bank (Stamp Duty)) Guarantee. Once all payments are made, the Transfer Instrument is prepared and witnessed, in accordance to Article 152 of the Registration of Title Act. This Transfer Instrument is then sent for cross-stamping at the Stamp Office. The stamped Agreement for Sale (AFS) needs to be attached as a proof of payment to the instrument of transfer. Cross stamping is important as the Registrar of Titles will not accept the Transfer Instrument unless it is cross stamped. For all document that must be stamped, a TRN number must be provided. A Transfer Tax Certificate is obtained which must be submitted to the Registrar of Titles. http://www.jamaicatax.gov.jm/home_template.php? page=StampDutyAndTransferTax#Assess_Collect It is required by law that the Vendor pay the transfer tax on the sale in its entirety. It is customary that the Vendor and Purchaser each pay a half of the stamp duty which will work out to be 2% each. Page 25
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