Fiji Economy Profile Doing Business 2020
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Doing Business 2020 Fiji Economy Profile of Fiji Doing Business 2020 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 postfiling 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 Employing workers Flexibility in employment regulation and redundancy cost Page 2
Doing Business 2020 Fiji 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 employing workers. Although Doing Business does not present rankings of economies on the employing workers 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 studies, which exhaustively cover business regulation and reform in different cities and regions within a nation. These studies 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 study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study 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. To learn more about Doing Business please visit doingbusiness.org Page 3
Doing Business 2020 Fiji Ease of Doing Business in DB RANK DB SCORE Region East Asia & Pacific Fiji Income Category Upper middle income Population 883,483 102 61.5 City Covered Suva Rankings on Doing Business topics - Fiji 57 79 97 97 101 101 98 102 163 165 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 Topic Scores 73.6 67.8 72.8 71.9 25.0 54.0 71.1 77.9 57.1 43.8 Starting a Business (rank) 163 Getting Credit (rank) 165 Trading across Borders (rank) 79 Score of starting a business (0-100) 73.6 Score of getting credit (0-100) 25.0 Score of trading across borders (0-100) 77.9 Procedures (number) 11 Strength of legal rights index (0-12) 5 Time to export Time (days) 40 Depth of credit information index (0-8) 0 Documentary compliance (hours) 56 Cost (number) 14.5 Credit registry coverage (% of adults) 0.0 Border compliance (hours) 56 Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 0.0 Cost to export Documentary compliance (USD) 76 Dealing with Construction Permits (rank) 102 Protecting Minority Investors (rank) 97 Border compliance (USD) 317 Score of dealing with construction permits (0-100) 67.8 Score of protecting minority investors (0-100) 54.0 Time to export Procedures (number) 15 Extent of disclosure index (0-10) 2.0 Documentary compliance (hours) 34 Time (days) 141 Extent of director liability index (0-10) 8.0 Border compliance (hours) 35 Cost (% of warehouse value) 0.5 Ease of shareholder suits index (0-10) 7.0 Cost to export Building quality control index (0-15) 7.0 Extent of shareholder rights index (0-6) 4.0 Documentary compliance (USD) 58 Extent of ownership and control index (0-7) 3.0 Border compliance (USD) 320 Getting Electricity (rank) 97 Extent of corporate transparency index (0-7) 3.0 Score of getting electricity (0-100) 72.8 Enforcing Contracts (rank) 101 Procedures (number) 4 Paying Taxes (rank) 101 Score of enforcing contracts (0-100) 57.1 Time (days) 81 Score of paying taxes (0-100) 71.1 Time (days) 397 Cost (% of income per capita) 1,191.4 Payments (number per year) 38 Cost (% of claim value) 42.6 Reliability of supply and transparency of tariff index (0-8) 4 Time (hours per year) 247 Quality of judicial processes index (0-18) 7.5 Total tax and contribution rate (% of profit) 32.1 Registering Property (rank) 57 Postfiling index (0-100) 81.6 Resolving Insolvency (rank) 98 Score of registering property (0-100) 71.9 Score of resolving insolvency (0-100) 43.8 Procedures (number) 4 Recovery rate (cents on the dollar) 46.5 Time (days) 69 Time (years) 1.8 Cost (% of property value) 3.0 Cost (% of estate) 10.0 Quality of the land administration index (0-30) 19.5 Outcome (0 as piecemeal sale and 1 as going 0 concern) Strength of insolvency framework index (0-16) 6.0 Page 4
Doing Business 2020 Fiji 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 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the (number) 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 city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited • Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office. • Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for the home to register the company the second largest business city. • Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily Time required to complete each procedure (calendar days) polluting production processes. • Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits. -Is 100% domestically owned. • Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the start on the same day) company shares, two owners have 20% of shares each, and two owners have 15% of shares • Procedures fully completed online are recorded as ½ day each. -Is managed by one local director. • Procedure is considered completed once final document is received -Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals. • No prior contact with officials -Has start-up capital of 10 times income per capita. -Has an estimated turnover of at least 100 times income per capita. Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate. capita) -Has an annual lease for the office space equivalent to one income per capita. • Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet). -Has a company deed that is 10 pages long. • No professional fees unless services required by law or commonly used in practice The owners: Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there • Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old. or up to 3 months after incorporation -Are in good health and have no criminal record. -Are married, the marriage is monogamous and registered with the authorities. -Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population. Page 5
Doing Business 2020 Fiji Starting a Business - Fiji Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement No minimum City Covered Suva Indicator Fiji East Asia & OECD high Best Regulatory Pacific income Performance Procedure – Men (number) 11 6.5 4.9 1 (2 Economies) Time – Men (days) 40 25.6 9.2 0.5 (New Zealand) Cost – Men (% of income per capita) 14.5 17.4 3.0 0.0 (2 Economies) Procedure – Women (number) 11 6.6 4.9 1 (2 Economies) Time – Women (days) 40 25.7 9.2 0.5 (New Zealand) Cost – Women (% of income per capita) 14.5 17.4 3.0 0.0 (2 Economies) Paid-in min. capital (% of income per capita) 0.0 3.5 7.6 0.0 (120 Economies) Figure – Starting a Business in Fiji – Score 41.2 60.3 92.8 100.0 Procedures Time Cost Paid-in min. capital Figure – Starting a Business in Fiji and comparator economies – Ranking and Score DB 2020 Starting a Business Score 0 100 92.6: Samoa (Rank: 46) 88.4: Marshall Islands (Rank: 83) 83.9: Regional Average (East Asia & Pacific) 80.1: Papua New Guinea (Rank: 142) 73.6: Fiji (Rank: 163) 100: New Zealand (Rank: 1) 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 2020 Fiji Figure – Starting a Business in Fiji – Procedure, Time and Cost Time (days) Cost (% of income per capita) 40 12 35 Cost (% of income per capita) 10 30 8 Time (days) 25 20 6 15 4 10 2 5 0 0 1 2 3 *4 *5 6 7 *8 9 10 * 11 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 2020 Fiji Details – Starting a Business in Fiji – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Check the uniqueness of the proposed company name and reserve name 4 days FJD 50 for name Agency : Registrar of Companies Office reservation + FJD 10 for Company founders must first conduct a search of the Companies, Business Names, and Trade company name search + Marks Register to ensure that the name applied for is not confusingly similar (1–2 days). VAT Computerized and manual search systems are both available. The Government of Fiji has introduced a website (www.egov.gov.fj) for all applications for name reservation to be made online in 2010. Hard copy applications are no longer accepted by the Registrar of Companies unless an online application is made first. Application fees for name reservation can be paid in person at the Registrar of Companies' Office or via the online portal at www.egov.gov.fj. Only MasterCards and VISA cards are accepted. Once the payment is completed online, hard copies of the payment confirmation and the name reservation approval are required to be submitted to the Companies Registry. If approved, the company name will be reserved for 30 days (with a one-time extension). Company incorporation documents must be lodged with the Registrar within this time. 2 Hire services of a lawyer to draft company documents 3 days FJD 1200 Agency : Lawyer or Accountant Fees may vary from FJD 1,000 to FJD 2,000. Although not require by the law, in most cases lawyers and/or accountants still prepare most of the documents necessary to register a company. 3 Register the company with the Registrar of Companies Office 7 days FJD 45 Agency : Registrar of Companies Office Under the Companies Act 2015. The company is required to complete and lodge a Form A2 (under section 20 of the Act) together with the required fee which is FJD 49.05 for private companies. Form A2 requires the company to provide details of the company, governance of the company, registered office, principal place of business, officeholders details, details of ultimate holding company, share structure details, details of its members. There is no longer a need for the company to have a Memorandum of Association under the 2015 Companies Act. A company is only required to have Articles of Association. It may adopt the standard articles from the Act or vary the standard articles provided in the Act. The company is still required to have a local tax identification number which can be obtained from the Fiji Revenue and Customs Service in 1 day. 4 Register for Tax Identification Number (TIN) with FRCS 1 day (simultaneous with no charge Agency : Fiji Revenue & Customs Service (FRCS) previous procedure) To finish the registration process of a new business with the Registrar of Companies Office entrepreneurs must obtain a Tax Identification Number (TIN) from FRCS. The procedure is as follows: 1 - The person must visit the Registrar of Companies Office and fill the necessary form. The Registrar of Companies Office will stamp such form and will request the person to visit FRCS to obtain TIN. 2 - At FRCS, the person must fill in the TIN registration Form. A copy of the preliminary documents submitted to the Companies Office must be attached to the TIN Registration Form. The preliminary document refers to forms lodged at Registrar of Companies Office and the Articles of Association. 3 - The FRCS will issue a standard letter confirming the TIN. 4 - The TIN must be supplied to the Registrar of Companies Office that will facilitate the issue of the Certificate of Registration. 5 - The Registrar of Companies Office will send a copy of the Certificate of Registration to FRCS for updating of taxpayer records. 5 Receive inspection by FRCS 1 day (simultaneous with no charge Agency : Fiji Revenue & Customs Service (FRCS) previous procedure) By law, since December 2004, if VAT registration is required, the Fiji Revenue and Customs Service (FRCS) requires the inspection of the business premises. Since 2007, the inspection has been the practice as FRCS inspects that there is a physical office during business hours. 6 Submit the TIN number to the Registrar of Companies Office to obtain the final Certificate 1 day no charge of Registration Agency : Registrar of Companies Office New businesses must submit their TIN number to Companies Registry to obtain their final incorporation certificate. Page 8
Doing Business 2020 Fiji 7 Obtain the National Fire Authority Certificate (NFA) after inspection 10 days FJD 50-150 (VAT Agency : National Fire Authority excluded) depending on The entrepreneur must request the NFA for an inspection of the business premises. Once the the size of the business request has been made, the NFA officials will inspect the premises during opening hours of the business. If the NFA is satisfied with the results of the inspection, it will then issue a compliance certificate to the entrepreneur. Upon receipt of the compliance certificate from the NFA, the entrepreneur must conduct a fire safety training for its staff. The training takes 3 days. NFA officers can, for a fee, teach fire safety preventative and protection measures. The employees are trained to respond to a fire incident and how to use the fire safety equipment installed in the workplace. 8 Register for statutory training tax 3 days (simultaneous no charge Agency : Fiji National University (FNU) with previous procedure) Statutory training tax is 1% of payroll. The submission of these documents is done by mail. The National Training and Productivity Authority at Fiji National University (FNU) will send the form by mail to the office of the new business. Once completed, the form will be mailed back to FNU. Statutory levy is 1% of payroll out of which the FNU Council is required to distribute 10% for in- service training of employees of levy payers, managing apprenticeship schemes, trade testing, productivity promotion and education and training in the national interest. 9 Obtain the compliance letter from the Ministry of Employment, Productivity and Industrial 3 days FJD 70-150 (FJD 50 for Relations inspection and FJD 2 per Agency : Ministry of Employment, Productivity and Industrial Relations employee) Since November 2011, the OHS issues a letter of compliance to all type of businesses after an inspection of workers and non-workers in the workplace. In order to obtain this letter, the entrepreneur needs to submit: - NFA certificate - business registration certificate - TIN letter Three days after submitting the documents, the OHS inspects the business and if all the compliance requirements are met, the compliance letter is issued. The compliance letter then needs to be submitted to the Suva City Council in order to obtain the business license. 10 Apply for a business license from the relevant licensing authority (Suva City Council) 11 days Fees range from FJD 4.37 Agency : Suva City Council to FJD 4,363.26 The company must obtain a business license from the relevant licensing authority for each depending on the activity location it conducts business. This license is renewable annually. Depending on the activity, the fees range from FJD 4.37 to FJD 4,363.26 . 11 Register as an employer with the Fiji National Provident Fund 11 days (simultaneous no charge Agency : Fiji National Provident Fund with previous procedure) New businesses must register as an employer with the Fiji National Provident Fund. Takes place simultaneously with previous procedure. Page 9
Doing Business 2020 Fiji 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 2019. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates The construction company (BuildCo): • Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest inspections business city. For 11 economies the data are also collected for the second largest business city. • Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects • Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed Time required to complete each procedure (calendar days) experts, such as geological or topographical experts. - Owns the land on which the warehouse will be built and will sell the warehouse upon its • Does not include time spent gathering information completion. • Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule The warehouse: • Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery. received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be • No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of income per - Will have complete architectural and technical plans prepared by a licensed architect. If capita) preparation of the plans requires such steps as obtaining further documentation or getting prior • Official costs only, no bribes approvals from external agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory Building quality control index (0-15) requirements). • Quality of building regulations (0-2) The water and sewerage connections: • Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water • Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage • Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built. - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow • Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and • Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day. - 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 10
Doing Business 2020 Fiji Dealing with Construction Permits - Fiji Standardized Warehouse Estimated value of warehouse FJD 603,373.60 City Covered Suva Indicator Fiji East Asia & OECD high Best Regulatory Pacific income Performance Procedures (number) 15 14.8 12.7 None in 2018/19 Time (days) 141 132.3 152.3 None in 2018/19 Cost (% of warehouse value) 0.5 3.2 1.5 None in 2018/19 Building quality control index (0-15) 7.0 9.4 11.6 15.0 (6 Economies) Figure – Dealing with Construction Permits in Fiji – Score 60.0 66.9 97.5 46.7 Procedures Time Cost Building quality control index Figure – Dealing with Construction Permits in Fiji and comparator economies – Ranking and Score DB 2020 Dealing with Construction Permits Score 0 100 86.5: New Zealand (Rank: 7) 71.1: Marshall Islands (Rank: 76) 70.0: Regional Average (East Asia & Pacific) 68.8: Samoa (Rank: 94) 67.8: Fiji (Rank: 102) 64.5: Papua New Guinea (Rank: 122) 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. Page 11
Doing Business 2020 Fiji Figure – Dealing with Construction Permits in Fiji – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 140 0.25 120 Cost (% of warehouse value) 0.2 100 Time (days) 0.15 80 60 0.1 40 0.05 20 0 0 1 2 *3 *4 5 6 *7 8 9 10 11 12 * 13 * 14 15 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 12
Doing Business 2020 Fiji Figure – Dealing with Construction Permits in Fiji and comparator economies – Measure of Quality 16 15.0 14 Index score 12 10.0 9.4 10 8 7.0 6.0 6 4 2 1.0 0 Fiji Marshall New Papua Samoa East Islands Zealand New Asia Guinea & Pacific Details – Dealing with Construction Permits in Fiji – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a set of design requirements and conditions of development 1 day no charge Agency : Suva City Council The design requirements include lodging the engineer certified structural drawings to the City or Town Council, to the National Fire Authority and to the Fiji Roads Authority (FRA). The approval must be in writing. 2 Obtain project pre-approval from the National Fire Authority 21 days FJD 850 Agency : National Fire Authority (NAF) 4 copies of the building structural and architectural plans must be submitted. A form is completed by the architect (download from Internet) to request the approval of the safety structure of the building. Payment is made by check, cash or direct deposit. Once the inspection is done, the architect will collect 3 copies, all duly stamped by the NFA. 1 copy will be kept by NFA for their record. 3 Obtain project pre-approval from the Department of Occupational Health and Safety (OHS) 7 days FJD 110 Agency : Department of Occupational Health and Safety (OHS) The cost is FJD 110.00 per hour of work. For the Doing Business case study, the agency would require 1 hour of work. 4 Obtain project pre-approval from the Water Authority of Fiji 7 days no charge Agency : Water Authority of Fiji (WAF) In order to obtain the pre-approval of the Water Authority of Fiji, the applicant must submit a V3 'New Connection Form' for a commercial property along with the following documents: Proof of ownership. Sketch Map Copy of business/ organization T.I.N letter Copy of business/ organization certificate (registration). Copy of plumbers licenses. Lodgment fee The pre-approval is one of the requirements for the development permission from the Suva City Council. 5 Request and obtain development permission from the Suva City Council 20 days FJD 18 Agency : Suva City Council This application, also known as the town planning form, must be accompanied by general building plans (three copies), specifications and detailed structural drawings (two copies), and the locality plan (three copies). 6 Request and obtain building permit with the Suva City Council and pay building permit fee 60 days FJD 1,371 Agency : Suva City Council The application should be accompanied by the development permission (three copies), the locality plan (one copy), building plans (three copies), specifications (two copies), and copy of title plan. The plans are reviewed by the following Suva City Council staff: a structural engineer, civil engineer, health department, and city planner. The fee is paid at the time of permit application and is calculated on the project value: FJD 88.00 for construction projects of up to FJD 20,000.00 plus FJD 2.20 for every FJD 1,000.00, or part of thereof, in excess of FJD 20,000. In theory, Suva City Council carries out Procedures 3 -- 5, but in most cases, to expedite the process, the applicant visits the relevant authorities in person. 7 Submit the EIA screening application to the Department of Environment 7 days FJD 250 Agency : Department of Environment The form must have attached to it a locality plan sufficient to identify the land or premises to which the proposal relates and any other information, plans or drawings needed to describe the proposed development. Page 13
Doing Business 2020 Fiji 8 Notify the Engineering Department of Suva City Council about completion of foundation 1 day no charge work and receive inspection Agency : Suva City Council (Engineering Department) The inspection needs to be requested 1 day in advance and the inspectors come to inspect on the following day. It does not delay the construction process. 9 Notify the Engineering Department about setup of the structure and receive inspection 1 day no charge Agency : Suva City Council (Engineering Department) The inspection needs to be requested 1 day in advance and the inspectors come to inspect on the following day. It does not delay the construction process. 10 Notify the Engineering Department about completion of the roof and receive inspection 1 day no charge Agency : Suva City Council (Engineering Department) The inspection needs to be requested 1 day in advance and the inspectors come to inspect on the following day. It does not delay the construction process. 11 Notify the Engineering Department about completion of the project and receive inspection 1 day no charge Agency : Suva City Council (Engineering Department) 12 Receive final inspection from National Fire Authority 5 days no charge Agency : National Fire Authority (NAF) The NFA is notified by the architect one day before the final inspection is required. Inspections are carried out on Tuesdays and Thursdays only. The NFA will issue a report that must be submitted when requesting the final inspection by the City Council. There is no cost for the final inspection. NFA will inspect the building on an annual basis. Receive final inspection from local authority and obtain occupancy permit 3 days no charge 13 Agency : Local Authority Both the Engineering and Health Department will inspect the warehouse after construction. The request is done by phone 24 hours prior to the visit. This inspection is required for the certificate of completion. Several documents must be provided in order to receive the inspection report: 1. A letter from the plumber certifying that the plumbing is done in accordance with the law 2. Final report from the NFA 3. Letter from the architect 4. Letter from the electrician 5. Letter from the engineer who designed the structural plans Receive plumbing and sanitary inspection from Water Authority of Fiji (WAF) 1 day no charge 14 Agency : Water Authority of Fiji (WAF) This inspection is carried out during construction. The plumber and electrician must be present on the construction site, so that they can address any issues, if any. 15 Obtain water and sewage connection from Water Authority of Fiji (WAF) 30 days FJD 446 Agency : Water Authority of Fiji (WAF) The cost cited here is for commercial real estate. Takes place simultaneously with previous procedure. Page 14
Doing Business 2020 Fiji Details – Dealing with Construction Permits in Fiji – Measure of Quality Answer Score Building quality control index (0-15) 7.0 Quality of building regulations index (0-2) 0.0 How accessible are building laws and regulations in your economy? (0-1) They must be 0.0 purchased; Not easily accessible. Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 0.0 accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid. 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 compliance with existing Licensed engineer. 1.0 building regulations? (0-1) 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? (0-2) Inspections by in- 1.0 house engineer; Inspections at various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0 plans and regulations? (0-2) is done by government agency; Yes, in-house engineer submits report for final inspection. Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0 always occurs 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 once it is in use No party is held liable 0.0 (Latent Defect Liability or Decennial Liability)? (0-1) under the law. Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 1.0 problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain insurance ; Insurance is commonly taken in practice. Professional certifications index (0-4) 0.0 What are the qualification requirements for the professional responsible for verifying that the architectural plans Being a registered 0.0 or drawings are in compliance with existing building regulations? (0-2) architect or engineer. What are the qualification requirements for the professional who supervises the construction on the ground? (0- Being a registered 0.0 2) architect or engineer. Page 15
Doing Business 2020 Fiji 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 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining all necessary clearances and permits The warehouse: • Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods. inspections - Is located in the economy’s largest business city. For 11 economies the data are also collected for • Obtaining external installation works and possibly purchasing the second largest business city. material for these works - Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway. • Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time. supply - Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet). • Is at least 1 calendar day The electricity connection: • Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- • Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW). - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution • Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the prior contact with officials warehouse is located and requires works that involve 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 Cost required to complete each procedure (% of income per owners’ private property because the warehouse has access to a road. capita) - Does not require work to install the internal wiring of the warehouse. This has already been • Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The monthly consumption: The reliability of supply and transparency of tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours • Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts • Tools to monitor power outages (0–1) (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 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 purposes only 30 days are used. • Financial deterrents limiting outages (0–1) • 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 in the ranking on the ease of getting electricity. Page 16
Doing Business 2020 Fiji Getting Electricity - Fiji Standardized Connection Name of utility Energy Fiji Limited Price of electricity (US cents per kWh) 21.8 City Covered Suva Indicator Fiji East Asia & OECD high Best Regulatory Pacific income Performance Procedures (number) 4 4.2 4.4 3 (28 Economies) Time (days) 81 63.2 74.8 18 (3 Economies) Cost (% of income per capita) 1191.4 594.6 61.0 0.0 (3 Economies) Reliability of supply and transparency of tariff index (0-8) 4 4.0 7.4 8 (26 Economies) Figure – Getting Electricity in Fiji – Score 83.3 72.6 85.3 50.0 Reliability of supply and transparency of Procedures Time Cost tariff index Figure – Getting Electricity in Fiji and comparator economies – Ranking and Score DB 2020 Getting Electricity Score 0 100 84.0: New Zealand (Rank: 48) 79.7: Samoa (Rank: 71) 75.1: Regional Average (East Asia & Pacific) 72.8: Fiji (Rank: 97) 65.5: Papua New Guinea (Rank: 118) 59.4: Marshall Islands (Rank: 140) 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. Figure – Getting Electricity in Fiji – Procedure, Time and Cost Time (days) Cost (% of income per capita) 80 1400 70 1200 Cost (% of income per capita) 60 1000 Time (days) 50 800 40 600 30 400 20 10 200 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 Page 17
Doing Business 2020 Fiji reflected here, see the summary below. Figure – Getting Electricity in Fiji and comparator economies – Measure of Quality 8 7 7 Index score 6 5 4 4 4.0 4 3 2 1 0 0 0 Fiji Marshall New Papua Samoa East Islands Zealand New Asia Guinea & Pacific Page 18
Doing Business 2020 Fiji Details – Getting Electricity in Fiji – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to Energy Fiji Limited (EFL) and await site visit 7 calendar days FJD 0 Agency : Energy Fiji Limited An application for Permanent Permit & Power Supply form completed with all installation details is lodged in by an Electrical Contractor. Documents needed are: Title copy, application letter; Electrical Permit; ID of owner. The electrical contractor or consultant will submit a permit for electrical wiring (this permit is obtained during the Building permit process, and is a part of the Building Permit) and a cover letter detailing the electrical installation's maximum power demand. 2 Receive site visit from EFL and await estimate 46 calendar days FJD 0 Agency : Energy Fiji Limited A site visit is required to determine the shortest route for the network extension works and to do the load flow study to check the impact of the load growth to the end of line. Upon check that the voltage is within the limits stipulated by the EFL (Energy Fiji Limited) Grid Code, a copy of the result is forwarded to the Systems Protection & Control team. The latter team can then carry out the protection co-ordination and advise the switching team. A quotation for the capital works is sent to the potential customer. 3 Pay estimate and receive external works from EFL 21 calendar days FJD 138,378.65 Agency : Energy Fiji Limited EFL opens a job file which is then sent to the Finance department and supply team to check if all materials are available. The utility conducts all external connection works, including the installation of the pad mounted transformer and service cables. Upon payment receipt, an acknowledgement is made to the customer who is reminded of the progress in the construction. The EFL's team will prepare a project execution file which will comprise of all copies of the correspondences, the payment details, the project drawing with the single line drawing, the flood- flow detail and the project estimate with the bill of materials, and the project cost. The job file once approved & bill of material confirmed is sent to the Distribution Projects Manager to co-ordinate the necessary switching co-ordination and then implementing the actual work and commissioning of the power supply to the extended grid. A formal request is then sent back to the Design team of the commissioning of supply to the new grid. The design team will then process the "Application for Permit & Power Supply form" (which was kept in the scheme file until capital works is completed). The connection fees and two months' security deposit is mentioned on the approved form for the client to pay. This form is then sent to the Regulatory team to co-ordinate electrical wiring works inspection & connections for supply from the grid to installation. 4 Receive internal wiring inspection, meter installation and turn-on of electricity 7 calendar days FJD 5,387.66 Agency : Energy Fiji Limited EFL installs the meter, does all the final connections to the utility mains, and turns on electricity. Takes place simultaneously with previous procedure. Page 19
Doing Business 2020 Fiji Details – Getting Electricity in Fiji – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 4 Total duration and frequency of outages per customer a year (0-3) 1 System average interruption duration index (SAIDI) 5.0 System average interruption frequency index (SAIFI) 4.7 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) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? No 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 exceed a certain cap? No Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online http://efl.com.fj/your- business/electricity-tariffs- and-rates/maximum- demand-tariffs/ 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 20
Doing Business 2020 Fiji 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 2019. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the (number) transaction, the property and the procedures are used. • Preregistration procedures (for example, checking for liens, The parties (buyer and seller): notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). • Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits) • Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the municipality) second largest business city. - Are 100% domestically and privately owned. Time required to complete each procedure (calendar days) - Perform general commercial activities. • Does not include time spent gathering information The property (fully owned by the seller): • Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price. that can be fully completed online are an exception to this rule - Is fully owned by the seller. • Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years. received - Is registered in the land registry or cadastre, or both, and is free of title disputes. • No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required. Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, • Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be taxes). transferred in its entirety. • Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase. excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind. - Will not be used for special purposes, and no special permits, such as for residential use, Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required. • Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it. • 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 21
Doing Business 2020 Fiji Registering Property - Fiji Indicator Fiji East Asia & OECD high Best Regulatory Pacific income Performance Procedures (number) 4 5.5 4.7 1 (5 Economies) Time (days) 69 71.9 23.6 1 (2 Economies) Cost (% of property value) 3.0 4.5 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 19.5 16.2 23.2 None in 2018/19 Figure – Registering Property in Fiji – Score 75.0 67.5 80.0 65.0 Procedures Time Cost Quality of the land administration index Figure – Registering Property in Fiji and comparator economies – Ranking and Score DB 2020 Registering Property Score 0 100 94.6: New Zealand (Rank: 2) 71.9: Fiji (Rank: 57) 69.1: Samoa (Rank: 68) 57.5: Regional Average (East Asia & Pacific) 56.2: Papua New Guinea (Rank: 127) 0.0: Marshall Islands (Rank: 187) 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. Page 22
Doing Business 2020 Fiji Figure – Registering Property in Fiji – Procedure, Time and Cost Time (days) Cost (% of property value) 3.5 60 3 Cost (% of property value) 50 2.5 Time (days) 40 2 30 1.5 20 1 10 0.5 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 23
Doing Business 2020 Fiji Figure – Registering Property in Fiji and comparator economies – Measure of Quality 30 26.5 25 Index score 19.5 20 16.2 15 12.5 10 5.5 5 0 No Practice Fiji Marshall New Papua Samoa East Islands Zealand New Asia Guinea & Pacific Details – Registering Property in Fiji – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Carry out titles searches at the Titles Office 1 day FJD 5.5; (50-60 cents per Agency : Office of the Registrar of Titles copy (10 copies required)) The title search is carried out in the Office of the Registrar of Titles manually. Counter clerks perform a search for needed information through volumes of data. The originals are never given, the counter clerks photocopy the originals and charge only for making copies (around 50-60 cents). The Procedure takes between a couple of hours and up to several days if the necessary document got lost or replaced in the archives. 2 Present transfer documents for stamping at the Stamp Duties Office and pay stamp duty 7 days FJD 18,101.21; (3.0% of Agency : Stamp Duties Office property value (stamp The transfer documents are submitted together with copies of the title for stamping and payment duty) for Fiji nationals, of 3.0% tax at the Stamp Duties Office which is based within the Fiji Revenue and Customs 10% for foreigners) Authority (FRCA) office. 3 The seller submits documents to FRCA to obtain the Capital Gains Tax Clearance 7 days no charge Certificate Agency : Fiji Revenue and Customs Authority (FRCA) The seller needs to register and obtain a Capital Gains Tax Clearance Certificate from FRCA confirming either that CGT has been paid, or satisfactory arrangement for payment of the tax has been made, or no tax is payable. The seller needs to submit the following documents: a) CGT Declaration form (which is available at the FRCA website) (b) CGT Return form (which is available at the FRCA website) (c) copy of the certificate of title (d) copy of the last registered transfer of the subject property in favor of the seller (e) copy of the stamped transfer of the property from the seller to the buyer It would be advisable to attach documentary evidence of all claims in respect of the ‘cost of the property’ so that there is timely processing of the application for CGT Clearance Certificate by FRCA. Where documentary evidence is not available, letters could be written, or statutory declarations could be provided to FRCA to explain the reasons for non-availability of the required documents. This would assist FRCA to process and issue of the CGT Clearance Certificate. Where CGT is payable, and the seller does not have the funds to pay the CGT, arrangements could be made with FRCA for the issue of the CGT Clearance Certificate. The seller’s lawyer could commit with the FRCA to hold the sale proceeds in the trust account and pay the CGT to FRCA before paying the balance sale proceeds to the seller. 4 Settlement takes place at the Registrar of Titles Office 60 days FJD 11.5; (FDJ 11.5 for Agency : Office of the Registrar of Titles (ROT) properties over FDJ Parties meet at the Registrar of Titles Office for settlement. The parties first double check 100,000 + VAT of 9.0% encumbrances on the property and then exchange the titles for the payment. When this formality (According to the case is accomplished, they submit the transfer documents for registration. The Registrar of Titles must study assumptions, VAT is not register an instrument for the transfer of a capital asset unless the seller or the purchaser not included)) furnishes the Registrar with a CGT Clearance Certificate confirming that CGT has been paid or satisfactory arrangement for payment of the tax has been made, or no tax is payable. It is possible that some new mortgages might still be in "the pipeline" and are not yet recorded on the property at the settlement (the mortgage has been submitted in the registry, but it has not been inscribed yet). To avoid finding later about a mortgage on the property, it is possible to request a "guaranteed search" (under section 30, 31 and 32 of the Land Transfer act) where the registry checks and certifies that there are no other mortgages registered. Under the Land Transfer Act Amendment Decree No. 34 of 2011, the Registrar of Titles now requires certified copies of any one of the following Identifications of both parties to be lodged with the Transfer: (a) letter from FRCA confirming the Tax Identification Number (for individuals and companies) or (b) A true certified copy of the Certificate of Incorporation or Certificate of Name Change (for companies only) or (c) Passport bio-data page (for individuals only) or (d) Driving license (for individuals only). Takes place simultaneously with previous procedure. Page 24
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