Doing Business 2018 Antigua and Barbuda
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Doing Business 2018 Antigua and Barbuda Economy Profile of Antigua and Barbuda Doing Business 2018 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, 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 and total tax 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 2018 Antigua and Barbuda 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 distance to frontier 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. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Page 3
Doing Business 2018 Antigua and Barbuda Ease of Doing Business in DB 2018 Rank Region Latin America & Caribbean 190 1 Antigua and Barbuda Income Category High income 107 DB 2018 Distance to Frontier (DTF) Population 100,963 0 100 City Covered St. John's 59.63 DB 2018 Distance to Frontier (DTF) 0 100 67.27: Jamaica (Rank: 70) 60.96: Dominica (Rank: 98) 60.68: Trinidad and Tobago (Rank: 102) 59.63: Antigua and Barbuda (Rank: 107) 58.66: Regional Average (Latin America & Caribbean) 52.94: Grenada (Rank: 142) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Antigua and Barbuda 1 28 33 39 55 82 Rank 99 96 101 109 118 126 128 136 144 159 163 190 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 Distance to Frontier (DTF) on Doing Business topics - Antigua and Barbuda 100 81.69 83.50 80 67.09 68.73 68.11 56.61 58.69 60 DTF 51.67 40 35.26 25.00 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 2018 Antigua and Barbuda Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in 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 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 distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. 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) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. â— Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and The business: certificates â— Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type all necessary inspections of limited liability company in the economy, the most common among domestic firms is chosen. Information on the most common form is obtained from incorporation â— Obtaining utility connections for water and lawyers or the statistical office. sewerage - Operates in the economy’s largest business city and the entire office space is â— Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data completion are also collected for the second largest business city. - Is 100% domestically owned and has five owners, none of whom is a legal entity; Time required to complete each procedure and has a start-up capital of 10 times income per capita and has a turnover of at (calendar days) least 100 times income per capita. â— Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale â— Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It does not use heavily polluting production processes. â— Procedures fully completed online are recorded - Leases the commercial plant or offices and is not a proprietor of real estate and the as ½ day amount of the annual lease for the office space is equivalent to 1 times income per â— Procedure is considered completed once final capita. document is received - Does not qualify for investment incentives or any special benefits. â— No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. Cost required to complete each procedure (% of - Has a company deed 10 pages long. income per capita) The owners: â— Official costs only, no bribes â— No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are law or commonly used in practice assumed to be 30 years old. - Are sane, competent, in good health and have no criminal record. Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities. â— Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the incorporation answer used will be the one that applies to the majority of the population. Page 5
Doing Business 2018 Antigua and Barbuda Starting a Business - Antigua and Barbuda Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement XCD 0 City Covered St. John's Indicator Antigua and Latin America OECD high Overall Best Barbuda & Caribbean income Performer Procedure – Men (number) 9 8.4 4.9 1.00 (New Zealand) Time – Men (days) 22 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 9.1 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 9 8.5 4.9 1.00 (New Zealand) Time – Women (days) 22 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 9.1 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Antigua and Barbuda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 97.30: Jamaica (Rank: 5) 89.29: Dominica (Rank: 67) 88.57: Trinidad and Tobago (Rank: 71) 87.09: Grenada (Rank: 82) 81.69: Antigua and Barbuda (Rank: 126) 78.09: Regional Average (Latin America & Caribbean) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Page 6
Doing Business 2018 Antigua and Barbuda Figure – Starting a Business in Antigua and Barbuda – Procedure, Time and Cost Time (days) Cost (% of income per capita) 9 20 8 Cost (% of income per capita) 7 15 6 Time (days) 5 10 4 3 5 2 1 0 0 1 2 3 4 *5 *6 7 8 9 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 2018 Antigua and Barbuda Details – Starting a Business in Antigua and Barbuda – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Search and reserve company name 3 days EC 25 Agency : Intellectual Property & Commerce Office (IPCO) The company name search is performed manually by going through large registration books. Upon assurance that no other company goes by the proposed name, a form is submitted to reserve the name for three months. 2 Retain a lawyer to prepare the incorporation documents 1 day included in procedure Agency : Lawyer 3 The minimal cost of EC 150 is charged by a lawyer or justice of the peace to prepare a declaration attesting that the company owner is not bankrupt, is mentally sound, and is over 18 years of age. This is the only document that requires an attorney’s intervention by law. However, the general practice is that an attorney will prepare all incorporation documents: notice of address, notice of directors, and articles of incorporation. In this case, the average attorney fee averages EC 3,000. All the necessary documents are forms from the Company Act and are completed by filling in blanks. The cost of this procedure is incorporated into Procedure 3, as typically the notary will file the prepared documents with IPCO on behalf of the company. 3 Register with the Intellectual Property and Commerce Office and receive 10 days EC 3230 the Certificate of Incorporation Agency : Intellectual Property & Commerce Office (IPCO) The registration fee with IPCO is EC 200, plus the statutory declaration (stamp fee) of EC 30. Attorney fees average around EC 3000 for preparing all the documents to be filed with IPCO. 4 Make a company seal 5 days EC 200 Agency : Various Office Supply Businesses Company seals are not required by the Company Act but are in practice required for everyday company transactions. The cost will depend on the quality of the seal. 5 Apply for a taxpayer identification number (register the company for taxes) 3 days no charge Agency : Inland Revenue Department (simultaneous with The taxpayer identification registration is done at the Inland Revenue Authority. previous procedure) Application for Registration is done after the company has been incorporated and there is a Certificate of Incorporation. The registration form is available on the Government website and can be printed but cannot be registered online. 6 Register for VAT and obtain an ABST identification number 1 day (simultaneous no charge Agency : Inland Revenue Department with previous The company can register for VAT at the Inland Revenue Authority. The Registration procedure) Form is available on the Government website and can be printed but cannot be registered online. Registration is done only after the company has been incorporated and there is a Certificate of Incorporation. Pursuant to the Antigua & Barbuda Sales Tax Act 2006, the company must register for VAT if its revenues exceed EC 300,000 annually. 7 Register for medical benefits 1 day no charge Agency : Medical Benefit Scheme Both the employer's and the employee's monthly contribution to medical benefit are the same at 3.5% of the employee's basic monthly wage. There is no maximum contribution. 8 Register for social security 1 day no charge Agency : Social Security Scheme The company registers with Social Security first and once a registration number is received this is taken to the Board of Education in order to register there. 9 Register for education levy 1 day no charge Agency : Board of Education The education levy is only payable by the employee but the employer is required to deduct the education levy from the employee's wages and submit to the Inland Revenue Department on the prescribed form monthly. The employer's contribution to social security is 6% of the employees' basic monthly wage up to a maximum of EC 390 per month. The employee's contribution is 4% up to a maximum of EC 260. Takes place simultaneously with previous procedure. Page 8
Doing Business 2018 Antigua and Barbuda 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 June 2017. 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. â— 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 â— Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second all necessary inspections largest business city. - Is 100% domestically and privately owned; has five owners, none of whom is a â— 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 â— 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) â— Does not include time spent gathering information The warehouse: â— Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery. though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 â— Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. â— No prior contact with officials - Will have complete architectural and technical plans prepared by a licensed Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further income per capita) documentation or getting prior approvals from external agencies, these are counted as procedures. â— Official costs only, no bribes - Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements). Building quality control index (0-15) â— Sum of the scores of six component indices: The water and sewerage connections: â— Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there â— Quality control before construction (0-1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be â— Quality control during construction (0-3) installed or built. â— Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average â— Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of â— Professional certifications (0-4) 1,325 liters (350 gallons) a day and 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 9
Doing Business 2018 Antigua and Barbuda Dealing with Construction Permits - Antigua and Barbuda Standardized Company Estimated value of warehouse XCD 1,889,168.20 City Covered St. John's Indicator Antigua and Latin America OECD high Overall Best Barbuda & Caribbean income Performer Procedures (number) 19 15.7 12.5 7.00 (Denmark) Time (days) 135 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.8 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 9.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Antigua and Barbuda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.07: Dominica (Rank: 74) 67.22: Jamaica (Rank: 98) 67.09: Antigua and Barbuda (Rank: 99) 64.19: Trinidad and Tobago (Rank: 119) 63.59: Regional Average (Latin America & Caribbean) 62.22: Grenada (Rank: 128) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Antigua and Barbuda – Procedure, Time and Cost Time (days) Cost (% of income per capita) 0.45 120 0.4 Cost (% of income per capita) 0.35 100 0.3 Time (days) 80 0.25 60 0.2 0.15 40 0.1 20 0.05 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 2018 Antigua and Barbuda Figure – Dealing with Construction Permits in Antigua and Barbuda and comparator economies – Measure of Quality 15 Index score 10.0 10.0 10 9.0 8.8 8.0 5.0 5 0 Antigua and Barbuda Dominica Grenada Jamaica Trinidad and Tobago Latin America & Caribbean Details – Dealing with Construction Permits in Antigua and Barbuda – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Request and obtain results of geo-technical study 25 days XCD 8,000 Agency : Private engineering firm According to Article 26 of the Antigua and Barbuda Development Land development CAP 235, a soil test should be conducted for the strength of the building. The foundation must be designed in such a way as to sustain and transmit to the ground the combined dead load of the building. The proper depth should be reach to prevent the building from sinking. 2 Obtain location plan 2 days XCD 38 Agency : Survey Department The location plan is generally obtained from cadastral sheets or DOS maps.This helps indicating the location of the warehouse to be built. 3 Obtain "approval in principle" 21 days XCD 30 Agency : Development Control Authority The approval in principle is the verification that the project is in compliance with the urban regulations and that it can be done on that specific plot of land. The location plan is needed for initiate this procedure. 4 Obtain project clearance from Fire Department 14 days no charge Agency : Fire Department To obtain the project clearance from the Fire department, the approval in principle as well as the location plan are required. 5 Receive notification of fee charge and pay appropriate fees to the Treasury 2 days XCD 7,035 Agency : Treasury The applicant submits all the relevant documents, including the project clearance from the Fire department to the Development Control Authority. The applicant will be informed of the fees to be paid at the treasury. The proof of payment must be submitted to the Development Control Authority for inspection purposes. The fee schedule for the Development Control Authority is as follows: • 0 --500 sq. ft. (gross floor area): XCD 50 • 500 -- 1,000 sq. ft. (gross floor area): XCD 200 • Over 1,000 sq. ft. (gross floor area): XCD 0.50 (per sq. ft.) 6 Obtain planning permission from Development Control Authority 35 days no charge Agency : Development Control Authority To obtain planning permission, the architect must submit to the Development Control Authority a three-page application (with three copies) that includes building designs, a location plan, a site plan, clearance from the fire department, a proof of ownership and the receipt of payment to the Treasury department. This procedure also includes approval of sewage services (Septic Tank). There is no sewage system therefore a septic tank is used which is installed by the builder. 7 Submit and obtain preliminary proposal to the department for review 14 days no charge Agency : Environment Division The constructor submits a preliminary proposal on the feasibility of the project to the Environmental Division. This is done in order to obtain the clearance that the proposed development can happen on this plot of land. 8 Notify the Development Control Authority of commencement of work 1 day no charge Agency : Development Control Authority Page 11
Doing Business 2018 Antigua and Barbuda 9 Receive a set-out inspection 1 day no charge Agency : Development Control Authority When the Department Control Authority issues the building permit it also gives a commencement certificate, which specifies the number of inspections to be carried out. The building company has to notify the Development Control Authority 48 hours before the start of each phase, so that the DCA can come and inspect the construction. However, in practice, this happens rarely, most construction companies do not notify about the commencement of each phase as there is no legal repercussions for not complying with the regulation. There is no fine for not notifying the DCA. The inspection process is regulated by the Land Development and Control Regulations of 1996. 10 Receive inspection after completion of foundation works before concrete 1 day no charge filling Agency : Development Control Authority (DCA) When the Department Control Authority issues the building permit it also gives a commencement certificate, which specifies the number of inspections to be carried out. The building company has to notify the Development Control Authority 48 hours before the start of each phase so that the DCA can come and inspect the construction. However, in practice, this happens rarely, most construction companies do not notify about the commencement of each phase as there is no legal repercussions for not complying with the regulation. There is no fine for not notifying the DCA. 11 Receive inspection after completion of floor slab 1 day no charge Agency : Development Control Authority When the Department Control Authority issues the building permit it also gives a commencement certificate, which specifies the number of inspections to be carried out. The building company has to notify the Development Control Authority 48 hours before the start of each phase, so that the DCA can come and inspect the construction. However, in practice, this happens rarely, most construction companies do not notify about the commencement of each phase as there is no legal repercussions for not complying with the regulation. There is no fine for not notifying the DCA. The inspection process is regulated by the Land Development and Control Regulations of 1996. 12 Receive inspection after completion of structural frame and roof 1 day no charge Agency : Development Control Authority When the Department Control Authority issues the building permit it also gives a commencement certificate, which specifies the number of inspections to be carried out. The building company has to notify the Development Control Authority 48 hours before the start of each phase, so that the DCA can come and inspect the construction. However, in practice, this happens rarely, most construction companies do not notify about the commencement of each phase as there is no legal repercussions for not complying with the regulation. There is no fine for not notifying the DCA. The inspection process is regulated by the Land Development and Control Regulations of 1996. 13 Receive inspection after completion of plumbing and drain works 1 day no charge Agency : Development Control Authority When the Department Control Authority issues the building permit it also gives a commencement certificate, which specifies the number of inspections to be carried out. The building company has to notify the Development Control Authority 48 hours before the start of each phase, so that the DCA can come and inspect the construction. However, in practice, this happens rarely, most construction companies do not notify about the commencement of each phase as there is no legal repercussions for not complying with the regulation. There is no fine for not notifying the DCA. The inspection process is regulated by the Land Development and Control Regulations of 1996. 14 Notify the Development Control Authority of completion of work 1 day no charge Agency : Development Control Authority According to Article 63 of The Physical Planning Act, 2003. No. 6 of 2003, upon completion of the work, the contractor must also notify the Town and Country Planner, in writing that construction works are now completed. This will trigger a final inspection to certify that theworks have been constructed in accordance with the development permit and building regulations. 15 Receive final inspection 1 day no charge Agency : Development Control Authority The Development Control Authority checks that the building is in conformity with the issued development permit. Page 12
Doing Business 2018 Antigua and Barbuda 16 Receive stamp by the Development Control Authority on the water 1 day no charge application Agency : Development Control Authority Three application forms for water connection must be stamped by the Development Control Authority stamp before the owner can actually apply for it. 17 Apply for water connection 1 day no charge Agency : Antigua Public Utilities Authority (APUA) Three application forms for water must be stamped by Development Control Authority stamp before the owner can apply for water connection. The applicant must provide the following document when applying for water connection: • 3 copies of the application form duly stamped by the DCA • A photo ID of the applicant • A road map of the area leading to the property, showing important land marks • Block and parcel number of the property to be serviced • A brief description of the building including color and material of construction • A completed Consumer Data Form 18 Obtain inspection by APUA for cost assessment for water connection 7 days no charge Agency : Antigua Public Utilities Authority (APUA) Once the application for water connection has been processed, a team will conduct an on- site inspection to assess the connection cost. 19 Obtain water connection 21 days XCD 850 Agency : Antigua Public Utilities Authority (APUA) According to the Antigua Public Utilities Authority (APUA), the installation fee for a distance of 150 meters with a 1” water pipe is XCD 850. Takes place simultaneously with previous procedure. Page 13
Doing Business 2018 Antigua and Barbuda Details – Dealing with Construction Permits in Antigua and Barbuda – Measure of Quality Answer Score Building quality control index (0-15) 9.0 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) 0.0 Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0 compliance with existing building regulations? (0-1) no need to verify plans compliance; Civil servant reviews plans. Quality control during construction index (0-3) 1.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0 (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 inspections are not always done in practice during construction. Quality control after construction index (0-3) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. 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 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. Page 14
Doing Business 2018 Antigua and Barbuda 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 2018 Antigua and Barbuda 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 June 2017. 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) construction company, the warehouse project and the utility connections are used. â— Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances and permits â— Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second largest business city. â— Obtaining external installation works and possibly - Is 100% domestically and privately owned; has five owners, none of whom is a purchasing material for these works legal entity. Has a licensed architect and a licensed engineer, both registered with â— Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any obtaining final supply other employees who are technical or licensed experts, such as geological or topographical experts. Time required to complete each procedure - Owns the land on which the warehouse will be built and will sell the warehouse (calendar days) upon its completion. â— Is at least 1 calendar day The warehouse: â— Each procedure starts on a separate day â— 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 â— Reflects the time spent in practice, with little approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 follow-up and no prior contact with officials meters (9 feet, 10 inches) high and will be located on a land plot of approximately Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. income per capita) - Will have complete architectural and technical plans prepared by a licensed â— Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further â— Value added tax excluded documentation or getting prior approvals from external agencies, these are counted as procedures. The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and tariffs index (0-8) regulatory requirements). â— Duration and frequency of power outages (0–3) The water and sewerage connections: â— Tools to monitor power outages (0–1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there â— Tools to restore power supply (0–1) is no water delivery infrastructure in the economy, a borehole will be dug. If there is â— Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be (0–1) installed or built. â— Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of â— Transparency and accessibility of tariffs (0–1) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 Price of electricity (cents per kilowatt-hour)* gallons) a day. - Will have a constant level of water demand and wastewater flow throughout the â— Price based on monthly bill for commercial year; will be 1 inch in diameter for the water connection and 4 inches in diameter for warehouse in case study the sewerage connection. *Note: Doing Business measures the price of electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 16
Doing Business 2018 Antigua and Barbuda Getting Electricity - Antigua and Barbuda Standardized Company Price of electricity (US cents per kWh) 43.2 Name of utility Antigua Public Utilities Authority City Covered St. John's Indicator Antigua and Latin America OECD high Overall Best Barbuda & Caribbean income Performer Procedures (number) 4 5.5 4.7 2 (United Arab Emirates) Time (days) 42 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 114.9 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 5 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Antigua and Barbuda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.25: Trinidad and Tobago (Rank: 33) 83.50: Antigua and Barbuda (Rank: 39) 82.43: Dominica (Rank: 46) 76.41: Grenada (Rank: 73) 71.11: Jamaica (Rank: 91) 70.45: Regional Average (Latin America & Caribbean) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Page 17
Doing Business 2018 Antigua and Barbuda Figure – Getting Electricity in Antigua and Barbuda – Procedure, Time and Cost Time (days) Cost (% of income per capita) 140 40 120 Cost (% of income per capita) 35 30 100 Time (days) 25 80 20 60 15 40 10 20 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. Figure – Getting Electricity in Antigua and Barbuda and comparator economies – Measure of Quality 8 7 7 7 6 6 Index score 5 5 4 4.2 4 3 2 1 0 Antigua and Barbuda Dominica Grenada Jamaica Trinidad and Tobago Latin America & Caribbean Page 18
Doing Business 2018 Antigua and Barbuda Details – Getting Electricity in Antigua and Barbuda – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Get application form stamped by Development Control Authority 7 calendar days XCD 200 Agency : Development Control Authority Prior to applying for a new electricity connection, the customer must first have the application form stamped by the Development Control Authority, certifying that a building permit was issued for this building. All applications for new service are to be filled out in quadruplets. Once the application forms have been stamped, they can then be brought to Antigua Public Utilities Authority (APUA). DCA typically takes a week to process the application. 2 Submit application to APUA and await site inspection 7 calendar days XCD 0 Agency : Antigua Public Utilities Authority The customer submits the stamped application forms to APUA, accompanied by a valid photo I.D. and a detailed location of where the service is desired. Within 5 working days, APUA will make an inspection. In the event this service doesn't comply with the authority's standard it will be rejected and will be filed away until the applicant informs the authority that he/she is ready for a second inspection. Once the engineer has conducted the site inspection and assessed the requirements of materials, an estimate is prepared identifying all the necessary components required to complete the installation. 3 Receive internal wiring inspection by APUA 21 calendar days XCD 43,200 Agency : Antigua Public Utilities Authority Payment of the estimated amount is usually made in whole, but sometimes if the customer requests that it is paid in two installments - 50% at receiving estimate, and the remaining balance after the internal inspection has been completed. The utility will proceed with the external works once there is no more outstanding payments. . The customer is expected to be present during the internal wiring inspection. If the customer has requested to pay in two installments, then once this inspection is completed, the utility will provide the necessary instruction to pay for the remaining balance. Only then can the external works be done. 4 Receive external works, meter installation and electricity flow from APUA 7 calendar days XCD 0 Agency : Antigua Public Utilities Authority APUA will complete the external works, the meter installation and then electricity will flow. If the customer is the owner of the building, no security deposit will be charged. Takes place simultaneously with previous procedure. Page 19
Doing Business 2018 Antigua and Barbuda Details – Getting Electricity in Antigua and Barbuda – 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) 1 System average interruption duration index (SAIDI) 6.5 System average interruption frequency index (SAIFI) 10.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 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 No 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 http://www.apua.ag/r esource-centre/rates/ 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 2018 Antigua and Barbuda 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 June 2017.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. â— 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). â— Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11 business citya. economies the data are also collected for the second largest business city. - Are 100% domestically and privately owned. â— 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. â— Does not include time spent gathering information - Is fully owned by the seller. â— Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past procedures that can be fully completed online are 10 years. an exception to this rule - Is registered in the land registry or cadastre, or both, and is free of title disputes. â— Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required. document is received - Consists of land and a building. The land area is 557.4 square meters (6,000 â— No prior contact with officials square feet). A two-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 Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal property value) requirements. The property, consisting of land and building, will be transferred in its â— Official costs only (such as administrative fees, entirety. duties and taxes). - Will not be subject to renovations or additional construction following the purchase. - Has no trees, natural water sources, natural reserves or historical monuments of â— Value Added Tax, Capital Gains Tax and illicit any kind. payments are excluded - Will not be used for special purposes, and no special permits, such as for Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. â— Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it. â— Transparency of information index (0–6) â— Geographic coverage index (0–8) â— Land dispute resolution index (0–8) â— Equal access to property rights index (-2–0) Page 21
Doing Business 2018 Antigua and Barbuda Registering Property - Antigua and Barbuda Standardized Company Property value XCD 1,889,168.20 City Covered St. John's Indicator Antigua and Latin America OECD high Overall Best Barbuda & Caribbean income Performer Procedures (number) 7 7.2 4.6 1.00 (4 Economies) Time (days) 32 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 10.8 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 19.0 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Antigua and Barbuda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 56.61: Antigua and Barbuda (Rank: 118) 55.36: Regional Average (Latin America & Caribbean) 53.70: Jamaica (Rank: 128) 50.15: Grenada (Rank: 141) 47.50: Trinidad and Tobago (Rank: 151) 43.40: Dominica (Rank: 164) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Antigua and Barbuda – Procedure, Time and Cost Time (days) Cost (% of income per capita) 12 30 10 Cost (% of income per capita) 25 8 Time (days) 20 6 15 4 10 5 2 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. Page 22
Doing Business 2018 Antigua and Barbuda Figure – Registering Property in Antigua and Barbuda and comparator economies – Measure of Quality 30 25 Index score 19.0 20 15 14.0 12.0 12.0 10 7.0 4.5 5 0 Antigua and Barbuda Dominica Grenada Jamaica Trinidad and Tobago Latin America & Caribbean Details – Registering Property in Antigua and Barbuda – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Preparation of the sale purchase agreement and instrument of transfer 3 - 4 days Paid in Procedure 7 Agency : Lawyer (simultaneous with It is standard practice that the sale purchase agreement is prepared by a lawyer. At this procedures 1 and 3) point the purchaser usually gives a deposit on the property to the vendor. The vendor guarantees that there are no encumbrances (or they are noted in the agreement) and no outstanding taxes associated with the property. Both companies present the resolution of their shareholders to engage in the transaction, as well as powers of attorney to act on behalf of the company. The corporate seal for the companies is also attached to the land transfer document. At the end of this time period, the parties execute the instrument of transfer (a prescribed form according to Laws of Antigua and Barbuda, revised in 2007, Vol. 13, CAP 374) and swear the certifications of their signatures. 2 Conduct title search at the Land Registry 1 day (simultaneous XCD 50 Agency : Land Registry with procedures 2 The lawyer checks for encumbrances at the Land Registry. The Registry is computerized, and 3) so the lawyer gives the clerk the block and parcel number, and the clerk can obtain title record with this information. If the block and parcel number is unknown, an index search of the current Registered Proprietor's name can be conducted to locate the parcel in question. Since January 2016, it is possible to conduct title searches online at http://www.lands.gov.ag/landfolio.publicaccess.web/Contents/Home.aspx 3 Obtain the Chief Surveyor's certificate 1 day (simultaneous XCD 35 Agency : Office of the Chief Surveyor with procedures 1 According to the Registered Land Amendment Act of 2007, it is mandatory that the Chief and 2) Surveyor's certificate appears in the transfer. Any land privately owned for at least 10 years must have a Chief Surveyor's certificate confirming that the boundaries have been authenticated. A transfer filed without this certificate cannot be registered. This is to ensure that the boundaries of registered land remain accurate, as well as to avoid mischievous declarations. Usually surveyors are available, and they would be hired to do the verification and submit the form. After that the Surveyor’s office just signs and allows the transfer. The Land Surveys Division must verify the boundaries of the subject property and confirm that they have been established or re-established with the 10 years preceding the land transfer. The Registered Land Act Cap 374 was amended on the 25th October, 2007 to include the following provisions namely Sections 106(6) and 106(7): (1) "The Registrar may require an instrument of transfer to be accompanied by a survey plan authenticated by the Chief Land Surveyor indicating that the boundary in respect of the land to which the instrument relates has been authenticated." (2) "The Registrar may require a resurvey of the land to which the instrument relates where the authentication of the boundary was effected more than ten years prior to the date of the instrument." 4 Executed instrument of transfer submitted to the Inland Revenue 14 days no cost Commission (simultaneous with Agency : Inland Revenue Department procedure 5) The Inland Revenue Commission checks that all property taxes have been paid, and assesses the value of the land according to the existing cadastre to decide the amount of stamp duty to be paid. Occasionally, evaluation officers may need to inspect the property at this point in order to determine its value if there is a discrepancy in the records of property taxes vs. the cadastral value. Page 23
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