Doing Business 2018 Guinea
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Doing Business 2018 Guinea Economy Profile of Guinea 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 Guinea 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 Guinea Ease of Doing Business in DB 2018 Rank Region Sub-Saharan Africa 190 1 Guinea Income Category Low income 153 DB 2018 Distance to Frontier (DTF) Population 12,395,924 0 100 City Covered Conakry 49.80 DB 2018 Distance to Frontier (DTF) 0 100 52.92: Mali (Rank: 143) 51.92: Gambia, The (Rank: 146) 51.54: Burkina Faso (Rank: 148) 50.43: Regional Average (Sub-Saharan Africa) 49.80: Guinea (Rank: 153) 41.45: Guinea-Bissau (Rank: 176) 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 - Guinea 1 28 55 75 82 Rank 111 109 117 125 136 143 142 146 158 165 163 182 190 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 - Guinea 100 81.77 80 69.92 60 DTF 53.87 47.88 50.07 46.24 40.00 38.93 39.27 40 30.00 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 Guinea 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 Guinea Starting a Business - Guinea Standardized Company Legal form Société à Responsabilité Limitée (SARL) - Limited Liability Company Paid-in minimum capital requirement GNF 381,854.8 City Covered Conakry Indicator Guinea Sub-Saharan OECD high Overall Best Africa income Performer Procedure – Men (number) 6 7.6 4.9 1.00 (New Zealand) Time – Men (days) 8 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 67.5 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 6 7.7 4.9 1.00 (New Zealand) Time – Women (days) 8 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 67.5 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 8.9 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Guinea and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 88.17: Burkina Faso (Rank: 74) 84.46: Mali (Rank: 104) 81.77: Guinea (Rank: 125) 76.82: Regional Average (Sub-Saharan Africa) 69.00: Gambia, The (Rank: 171) 63.76: Guinea-Bissau (Rank: 178) 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 Guinea Figure – Starting a Business in Guinea – Procedure, Time and Cost Time (days) Cost (% of income per capita) 8 45 7 40 Cost (% of income per capita) 35 6 30 Time (days) 5 25 4 20 3 15 2 10 1 5 0 0 1 2 3 4 *5 *6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 7
Doing Business 2018 Guinea Details – Starting a Business in Guinea – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Deposit the initial capital in a bank 1 day no charge Agency : Bank The lawyer or notary public needs to deposit the capital into a blocked bank account and obtain a proof of deposit. 2 Check the uniqueness of the company name 1 day no charge Agency : Commercial Registry Business founders can check the availability of the proposed company name at no cost. 3 Prepare the company's Articles of Association 2 days GNF 1.8 million for Agency : Notary limited liability Business founders must prepare the company's articles of association. According to companies articles 10,11,311,313,314 and 73 of the “Acte uniforme relatif au droit des societes commerciales revises” (OHADA) and Decret D/2014/124/PRG/SGGG of May 30st, 2014, the use of notaries is optional, although notary services are still used by most entrepreneurs. 4 Register the company at the One-Stop Shop (APIP) to obtain registration 4 days (registration see comments with the Commercial Registry, the Tax Authorities and Social Security and publication) Agency : One-Stop Shop (Agence de Promotion des Investissements Privés - APIP-Guinée) Business founders must apply for incorporation at the One-Stop Shop (APIP-Guinée). Upon receipt of a incorporation request and payment of the relevant fees, APIP proceeds to obtain registration with the Commercial Registry, the Tax Authorities, and Social Security. The Tax ID (Numéro d'Identification Fiscale - NIF) and the online publication of a notice of company incorporation are also provided by APIP. Employees can be registered with Social Security through the One-Stop Shop or at the offices of the Social Security Institute (CNSS - Caisse nationale de Sécurité sociale). The registration fees for a new limited liability company (SARL) are the following: 1% of capital (registration tax) + 100,000 GNF (registration at RCCM) + 100,000 GNF (NIF) + 150,000 GNF (publication) + 1,000 GNF/page (stamp duty) + 100,000 GNF (verbal process). 5 Notify the Labor Promotion Agency (Agence Guinéenne pour la Promotion 3 days no charge de l’ Emploi - AGUIPE) of the hiring of employees (simultaneous with Agency : Labor Promotion Agency (Agence Guinéenne pour la Promotion de l’ previous procedure) Emploi - AGUIPE) Business founders must notify the Labor Promotion Agency (AGUIPE - Agence Guinéenne pour la Promotion de l’ Emploi) about their company's formation and about the hiring of employees. 6 Make a company seal 1 day (simultaneous GNF 20,000 Agency : Seal maker with previous Companies normally obtain a company seal so that the company's representatives can procedure) sign documents in the company's name during their various interactions with different Authorities. Takes place simultaneously with previous procedure. Page 8
Doing Business 2018 Guinea 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 Guinea Dealing with Construction Permits - Guinea Standardized Company Estimated value of warehouse GNF 215,617,519.40 City Covered Conakry Indicator Guinea Sub-Saharan OECD high Overall Best Africa income Performer Procedures (number) 15 14.8 12.5 7.00 (Denmark) Time (days) 161 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 4.3 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 12.0 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Guinea and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.20: Burkina Faso (Rank: 53) 69.92: Guinea (Rank: 75) 64.31: Gambia, The (Rank: 118) 61.36: Mali (Rank: 134) 56.91: Regional Average (Sub-Saharan Africa) 44.40: Guinea-Bissau (Rank: 176) 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 Guinea – Procedure, Time and Cost Time (days) Cost (% of income per capita) 160 3.5 140 3 Cost (% of income per capita) 120 2.5 Time (days) 100 2 80 1.5 60 1 40 20 0.5 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 10
Doing Business 2018 Guinea Figure – Dealing with Construction Permits in Guinea and comparator economies – Measure of Quality 15 12.0 12.0 Index score 10 8.0 6.5 5.5 5 4.5 0 Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa Details – Dealing with Construction Permits in Guinea – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain cadastre extract 7 days GNF 150,000 Agency : Cadastre 2 Obtain a copy of the property title 2 days GNF 50,000 Agency : Legal Clerk, Notary, or Huissier de Justice 3 Obtain geological and geotechnical survey 10 days GNF 650,000 Agency : BGGA 4 Obtain building permit 90 days GNF 7,131,960 Agency : Direction Nationale de l’Architecture et de la Construction The application is addressed to the Ministry of Urban Planning and Housing. The dossier contains the following documents: • Request to the Minister, Ministre de l'Urbanisme, the Governor of the city, or to the Mayor- Maire de la Commune according to the building use and the location • Property title (Titre foncier, décrêt, arrêté ou bail) • Architectural and technical plans (structure, installations électriques and hydrosanitaires); the descriptive document of the project prepared by an architect office, and the soil analysis. If BuildCo does not follow up on the application, the building permit will not be granted. A person within BuildCo needs to be assigned to follow up on the application daily. 5 Receive on-site inspection from the Direction Nationale de l’Aménagement 1 day no charge du Territoire et de l’Urbanisme upon commencement of construction Agency : Direction Nationale de l’Aménagement du Territoire et de l’Urbanisme 6 Receive on-site inspection from the Direction Nationale de l'Architecture et 1 day no charge de la Construction upon commencement of construction Agency : Direction Nationale de l’Architecture et de la Construction 7 Receive on-site inspection from the Municipal Tax Authority (Service des 1 day no charge Impots de la Commune) Agency : Service des Impots de la Commune The Municipal Tax Authority (Service des Impots de la Commune) inspects the site to ensure that BuildCo is paying the withholding taxes on its workers' salaries. 8 Receive on-site inspection from the Local Health Service (Service de 1 day no charge Salubrité) - I Agency : Local Health Service (Service de Salubrité) The Local Health Service (Service de Salubrité) inspects the site every 2 weeks. The agency may visit as often as every week depending on the project. 9 Receive on-site inspection from the Local Health Service (Service de 1 day no charge Salubrité) - II Agency : Local Health Service (Service de Salubrité) The Local Health Service (Service de Salubrité) inspects the site every 2 weeks. The agency may visit as often as every week depending on the project. 10 Notify National Directorate of Architecture and Construction of the 1 day no charge completion of construction works Agency : Direction Nationale de l’Architecture et de la Construction The head supervisor of construction must notify the National Directorate of Architecture and Construction when construction works are complete and request a final inspection. 11 Receive final inspection and certificate of conformity (certificat d'habilité) 7 days GNF 700,000 Agency : Direction Nationale de l’Architecture et de la Construction Page 11
Doing Business 2018 Guinea 12 Register warehouse with the Ministère de la Construction, de l'Urbanisme 1 day GNF 300,000 et Habitat Agency : Ministère de la Construction, de l'Urbanisme et Habitat Real estate taxes and the occupancy tax (tax à l' occupation) of GNF 300,000.00 (paid only once) must be paid after construction is finished. Request water connection 1 day no charge 13 Agency : Guinea Water Company (SEG) 14 Receive inspection by water company 1 day no charge Agency : Guinea Water Company (SEG) 15 Obtain water connection 36 days GNF 250,000 Agency : Guinea Water Company (SEG) Takes place simultaneously with previous procedure. Page 12
Doing Business 2018 Guinea Details – Dealing with Construction Permits in Guinea – Measure of Quality Answer Score Building quality control index (0-15) 12.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections by in- 1.0 (0-2) house engineer; Unscheduled inspections. 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) 2.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0 with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Professional in 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) charge of the supervision; Construction company; Owner or investor. 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 13
Doing Business 2018 Guinea 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 14
Doing Business 2018 Guinea 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 15
Doing Business 2018 Guinea Getting Electricity - Guinea Standardized Company Price of electricity (US cents per kWh) 20.9 Name of utility Electricite de Guinee (EDG) City Covered Conakry Indicator Guinea Sub-Saharan OECD high Overall Best Africa income Performer Procedures (number) 4 5.3 4.7 2 (United Arab Emirates) Time (days) 69 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 5639.8 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Guinea and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 51.12: Mali (Rank: 154) 49.29: Gambia, The (Rank: 156) 47.88: Guinea (Rank: 158) 45.91: Regional Average (Sub-Saharan Africa) 29.42: Burkina Faso (Rank: 179) 29.01: Guinea-Bissau (Rank: 180) 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 16
Doing Business 2018 Guinea Figure – Getting Electricity in Guinea – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6000 60 Cost (% of income per capita) 5000 50 4000 Time (days) 40 3000 30 2000 20 1000 10 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 Guinea and comparator economies – Measure of Quality 8 7 6 Index score 5 4 3 2 0.9 1 0 0 0 0 0 0 Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa Page 17
Doing Business 2018 Guinea Details – Getting Electricity in Guinea – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Hire private firm to design and carry out external works 58 calendar days GNF 225,000,000 Agency : Private firm External works consist of installing a private substation. The MV network is underground; the LV service is overhead. The client can pick any approved private firm. Another option is for the utility to issue a tendering process to pick the firm that will carry out the works. Because a client's picking of a private firm reduces the wait time, this is usually a preferred option. The private firm will then prepare a design of the works and submit it to the utility for approval. The client's contractor will also need to provide the material for the works. This (namely the transformer) is usually not available in stock, and most firms will need to import it, mostly from Morocco. This causes short delays to the process. 2 Submit connection application to EDG 4 calendar days GNF 0 Agency : Electricité de Guinée (EDG) The client mails an application for a connection to Electricité de Guinée (EDG). In the case where the client relies on Electricité de Guinée (EDG) also for the external works, the utility will need to inspect the site first to carry out a technical study and prepare an estimate of the connection fees. Alternatively, the client can hire a private firm for the external works. This same firm can submit the application for a connection on their behalf. It will also carry out the technical study to prepare a design of the external connection works and an estimate of the costs. 3 Receive site inspection by EDG 1 calendar day GNF 18,205,918 Agency : Electricité de Guinée (EDG) The utility will inspect at the end of the external works to check that they have been carried out according to the original plans. 4 Sign subscriber agreement with EDG and obtain meter installation and final 10 calendar days GNF 0 supply Agency : Electricité de Guinée (EDG) A subscription deposit is issued by the electricity company to the customer's address. This security deposit takes into account the client’s subscribed power and their consumption (tariff). This deposit is also considered as a supply contract. After the client has paid the deposit, they become subscribed with the utility that then installs the meter and turns on final supply. The deposit is returned at the end of the contract. Takes place simultaneously with previous procedure. Page 18
Doing Business 2018 Guinea Details – Getting Electricity in Guinea – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online https://www.edg- guinee.com/ma- facture-edg- comment-ca-marche 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 19
Doing Business 2018 Guinea 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 residential use, industrial plants, waste storage or certain types of agricultural Quality of land administration index (0-30) 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 20
Doing Business 2018 Guinea Registering Property - Guinea Standardized Company Property value GNF 215,617,519.40 City Covered Conakry Indicator Guinea Sub-Saharan OECD high Overall Best Africa income Performer Procedures (number) 6 6.2 4.6 1.00 (4 Economies) Time (days) 44 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 8.9 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 6.5 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Guinea and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 54.41: Guinea-Bissau (Rank: 126) 53.28: Gambia, The (Rank: 129) 51.71: Regional Average (Sub-Saharan Africa) 51.43: Mali (Rank: 137) 50.44: Burkina Faso (Rank: 140) 50.07: Guinea (Rank: 143) 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 Guinea – Procedure, Time and Cost Time (days) Cost (% of income per capita) 6 40 5 Cost (% of income per capita) 35 30 4 Time (days) 25 3 20 15 2 10 1 5 0 0 1 2 3 4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below. Page 21
Doing Business 2018 Guinea Figure – Registering Property in Guinea and comparator economies – Measure of Quality 30 25 Index score 20 15 11.5 10 8.5 8.0 8.6 6.5 5 3.0 0 Guinea Burkina Faso Gambia, The Guinea-Bissau Mali Sub-Saharan Africa Details – Registering Property in Guinea – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a map indicating the extent and boundaries of the property 14 days GNF 309,495 Agency : Service Topographique The seller must obtain and provide the buyer with the map indicating the extent and boundaries of the property. 2 Confirm identity of land owner and a clear title at the Land Registry 7 days GNF 20,000 (“Bureau de la Conservation Foncière”) Agency : Land Registry (Bureau de la Conservation Foncière) The buyer writes to the director of the land registry to confirm that the seller of the property is indeed the true owner and that the title is clear and free of encumbrances. The director’s duty is to answer back and always comply with this requirement. 3 Obtain tax clearance from tax authorities 10 days GNF 100,000 Agency : Tax authorities (Direction National des Impots) The notary will request a tax clearance to check that there are no outstanding taxes. 4 Sign the sale contract as written and witnessed by the notary 1 day From 1 to 10,000,000 Agency : Notary of FG : 4.5% According to article 201 of the Ordonnance O/92/019 of March 30, 1992 regarding the Land Code every act subject to land registration must be authentified. However, if it is From 10,000,000 to not presented in this form it must be filed in the minutes of a Notary. 50,000,000 of FG: 2.5% From 50,000,001 to 150,000,000 of FG :1.5% From 150,000,001 to 300,000,000 of FG: 1% Above 300,000,000: 0.75% 5 Register the sale contract with the National Tax Authorities “Service des 5 days 5% of the property Impôts” value Agency : National Tax Authorities (Service des Impôts) The parties should register the sale contract with the National Tax Authorities and pay their due tax (5% of the value of the property). Article 559 of the General Tax Code stipulates that when the National Directorate of Taxes considers that the sale price is insufficient it may be exercised within six months from the date of registration, a right of first refusal in favor of the public treasury. The National Directorate of Taxes is thus empowered to substitute by the State the purchaser of the property whose values were considered insufficient. The National Directorate of Taxes will increase by a tenth the price reported. 6 Transfer the final ownership with the Land Registry (“Bureau de la 7 days 2% of the property Conservation Foncière”) value Agency : Land Registry (Bureau de la Conservation Foncière) The Director of the Land Registry will only ask to see the notarized sale agreement and the map stating the boundaries of the property. It is a requirement by law that the director effectively transfers the property to the seller after a 10 days maximum since the demand was presented. Takes place simultaneously with previous procedure. Page 22
Doing Business 2018 Guinea Details – Registering Property in Guinea – Measure of Quality Answer Score Quality of the land administration index (0-30) 6.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? Land Registry of Conakry (Bureau de la Conservation Foncière de Conakry) In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Le Service des Domaines et du Cadastre In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0 paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0 or mapping agency kept in a single database, in different but linked databases or in separate databases databases? Do the immovable property registration agency and cadastral or mapping agency use the No 0.0 same identification number for properties? Transparency of information index (0–6) 2.0 Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0 property registration in the largest business city? intermediaries and interested parties Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5 publicly available–and if so, how? Link for online access: http://www.bcf- gn.com/index.ph p/component/con tent/article/2-non- categorise/64-mu Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: http://www.bcf- gn.com/files/ARR ETE_CONJOINT _MEPCATBP_- _MPCEF_- _SGG.PDF Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available official statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Page 23
Doing Business 2018 Guinea Number of property transfers in the largest business city in 2016: 167.0 Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5 and if so, how? Link for online access: http://www.bcf- gn.com/files/ARR ETE_CONJOINT _n1695_du_29_j uillet_2009_- _BAREME_DES _REDEVANCES _GLOBALES.pdf Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? No 0.0 Is there a specific compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Notary. Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a property Tribunal de worth 50 times gross national income (GNI) per capita and located in the largest business Première city, what court would be in charge of the case in the first instance? Instance de Kaloum, lieu de situation de l'immeuble How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2016: Page 24
Doing Business 2018 Guinea Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Page 25
Doing Business 2018 Guinea Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. 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 Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of â— Rights of borrowers and lenders through indicators. The depth of credit information index measures rules and practices collateral laws (0-10) affecting the coverage, scope and accessibility of credit information available â— Protection of secured creditors’ rights through through a credit registry or a credit bureau. The strength of legal rights index bankruptcy laws (0-2) measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is ?rst Depth of credit information index (0–8) determined whether a unitary secured transactions system exists. Then two case â— Scope and accessibility of credit information scenarios, case A and case B, are used to determine how a nonpossessory security distributed by credit bureaus and credit registries interest is created, publicized and enforced according to the law. Special emphasis (0-8) is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank. â— Number of individuals and firms listed in largest credit bureau as a percentage of adult population In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions Credit registry coverage (% of adults) relating to the use of movable collateral. â— Number of individuals and firms listed in credit registry as a percentage of adult population Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a ?duciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, ?oating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 26
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