Economy Profile 2016 Doing Business 2016
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Doing Business 2016 St. Lucia
Economy Profile 2016
St. Lucia
Doing Business 2016 St. Lucia 2
© 2016 The International Bank for Reconstruction and Development / The World Bank
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Regulatory Quality and Efficiency. Washington, DC: World Bank Group. DOI: 10.1596/978-1-4648-0667-4.
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ISBN (paper): 978-1-4648-0667-4
ISBN (electronic): 978-1-4648-0668-1
DOI: 10.1596/978-1-4648-0667-4
ISSN: 1729-2638
Cover design: Corporate Visions, Inc.Doing Business 2016 St. Lucia 3 CONTENTS Introduction .................................................................................................................................. 4 Starting a business ..................................................................................................................... 17 Dealing with construction permits ........................................................................................... 22 Getting electricity ....................................................................................................................... 31 Registering property .................................................................................................................. 40 Getting credit .............................................................................................................................. 52 Protecting minority investors ................................................................................................... 57 Paying taxes ................................................................................................................................ 63 Trading across borders .............................................................................................................. 67 Enforcing contracts .................................................................................................................... 74 Resolving insolvency .................................................................................................................. 81 Labor market regulation ........................................................................................................... 88 Distance to frontier and ease of doing business ranking ...................................................... 94 Resources on the Doing Business website .............................................................................. 98
Doing Business 2016 St. Lucia 4
INTRODUCTION
Doing Business sheds light on how easy or difficult it is also provides data for other selected economies
for a local entrepreneur to open and run a small to (comparator economies) for each indicator. The data in
medium-size business when complying with relevant this report are current as of June 1, 2015 (except for the
regulations. It measures and tracks changes in paying taxes indicators, which cover the period January–
regulations affecting 11 areas in the life cycle of a December 2014).
business: starting a business, dealing with construction
The Doing Business methodology has limitations. Other
permits, getting electricity, registering property, getting
areas important to business—such as an economy’s
credit, protecting minority investors, paying taxes,
proximity to large markets, the quality of its
trading across borders, enforcing contracts, resolving
infrastructure services (other than those related to
insolvency and labor market regulation. Doing Business
trading across borders and getting electricity), the
2016 presents the data for the labor market regulation
security of property from theft and looting, the
indicators in an annex. The report does not present
transparency of government procurement,
rankings of economies on labor market regulation
macroeconomic conditions or the underlying strength of
indicators or include the topic in the aggregate distance
institutions—are not directly studied by Doing Business.
to frontier score or ranking on the ease of doing
The indicators refer to a specific type of business,
business.
generally a local limited liability company operating in
In a series of annual reports Doing Business presents the largest business city. Because standard assumptions
quantitative indicators on business regulations and the are used in the data collection, comparisons and
protection of property rights that can be compared benchmarks are valid across economies. The data not
across 189 economies, from Afghanistan to Zimbabwe, only highlight the extent of obstacles to doing business;
over time. The data set covers 47 economies in Sub- they also help identify the source of those obstacles,
Saharan Africa, 32 in Latin America and the Caribbean, 25 supporting policy makers in designing regulatory reform.
in East Asia and the Pacific, 25 in Eastern Europe and
More information is available in the full report. Doing
Central Asia, 20 in the Middle East and North Africa and
Business 2016 presents the indicators, analyzes their
8 in South Asia, as well as 32 OECD high-income
relationship with economic outcomes and presents
economies. The indicators are used to analyze economic
business regulatory reforms. The data, along with
outcomes and identify what reforms have worked, where
information on ordering Doing Business 2016, are
and why.
available on the Doing Business website at
This economy profile presents the Doing Business http://www.doingbusiness.org.
indicators for St. Lucia. To allow useful comparison, itDoing Business 2016 St. Lucia 5
CHANGES IN DOING BUSINESS 2016
As part of a two-year update in methodology, Doing The case study underlying the trading across borders
Business 2016 expands the focus of five indicator sets indicators has been changed to increase its relevance.
(dealing with construction permits, getting electricity, For each economy the export product and partner are
registering property, enforcing contracts and labor now determined on the basis of the economy’s
market regulation), substantially revises the comparative advantage, the import product is auto parts,
methodology for one indicator set (trading across and the import partner is selected on the basis of which
borders) and implements small updates to the economy has the highest trade value in that product. The
methodology for another (protecting minority investors). indicators continue to measure the time and cost to
export and import.
The indicators on dealing with construction permits now
include an index of the quality of building regulation and Beyond these changes there is one other update in
its implementation. The getting electricity indicators now methodology, for the protecting minority investors
include a measure of the price of electricity consumption indicators. A few points for the extent of shareholder
and an index of the reliability of electricity supply and governance index have been fine-tuned, and the index
transparency of tariffs. Starting this year, the registering now also measures aspects of the regulations applicable
property indicators include an index of the quality of the to limited companies rather than privately held joint
land administration system in each economy in addition stock companies.
to the indicators on the number of procedures and the
For more details on the changes, see the “What is
time and cost to transfer property. And for enforcing
changing in Doing Business?” chapter starting on page
contracts an index of the quality and efficiency of judicial
27 of the Doing Business 2016 report. For more details
processes has been added while the indicator on the
on the data and methodology, please see the “Data
number of procedures to enforce a contract has been
Notes” chapter starting on page 119 of the Doing
dropped.
Business 2016 report. For more details on the distance to
The scope of the labor market regulation indicator set frontier metric, please see the “Distance to frontier and
has also been expanded, to include more areas capturing ease of doing business ranking” chapter in this profile.
aspects of job quality. The labor market regulation
indicators continue to be excluded from the aggregate
distance to frontier score and ranking on the ease of
doing business.Doing Business 2016 St. Lucia 6
THE BUSINESS ENVIRONMENT
For policy makers trying to improve their economy’s
regulatory environment for business, a good place to start ECONOMY OVERVIEW
is to find out how it compares with the regulatory
environment in other economies. Doing Business provides
an aggregate ranking on the ease of doing business
Region: Latin America & Caribbean
based on indicator sets that measure and benchmark
regulations applying to domestic small to medium-size Income category: Upper middle income
businesses through their life cycle. Economies are ranked
from 1 to 189 by the ease of doing business ranking. Population: 183,598
Doing Business presents results for 2 aggregate measures:
the distance to frontier score and the ease of doing GNI per capita (US$): 7,090
business ranking. The ranking of economies is determined
by sorting the aggregate distance to frontier scores, DB2016 rank: 77
rounded to two decimals. An economy’s distance to
frontier score is indicated on a scale from 0 to 100, where DB2015 rank: 73*
0 represents the worst performance and 100 the frontier.
Change in rank: -4
(See the chapter on the distance to frontier and ease of
doing business).
DB 2016 DTF: 64.2
The ease of doing business ranking compares economies
with one another; the distance to frontier score DB 2015 DTF: 64.19
benchmarks economies with respect to regulatory best
practice, showing the absolute distance to the best Change in DTF: 0.01
performance on each Doing Business indicator. When
compared across years, the distance to frontier score * DB2015 ranking shown is not last year’s published
shows how much the regulatory environment for local ranking but a comparable ranking for DB2015 that
entrepreneurs in an economy has changed over time in captures the effects of such factors as data revisions
absolute terms, while the ease of doing business ranking and the changes in methodology. See the data notes
can show only how much the regulatory environment has starting on page 119 of the Doing Business 2016
changed relative to that in other economies. report for sources and definitions.
The 10 topics included in the ranking in Doing Business
2016: 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. The labor market regulation indicators are not
included in this year’s aggregate ease of doing business
ranking, but the data are presented in the economy
profile.Doing Business 2016 St. Lucia
THE BUSINESS ENVIRONMENT
Figure 1.1 Where economies stand in the global ranking on the ease of doing business
Source: Doing Business database.Doing Business 2016 St. Lucia THE BUSINESS ENVIRONMENT For policy makers, knowing where their economy regional average (figure 1.2). The economy’s rankings stands in the aggregate ranking on the ease of doing (figure 1.3) and distance to frontier scores (figure 1.4) business is useful. Also useful is to know how it ranks on the topics included in the ease of doing business relative to comparator economies and relative to the ranking provide another perspective. Figure 1.2 How St. Lucia and comparator economies rank on the ease of doing business Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities. Source: Doing Business database.
Doing Business 2016 St. Lucia 9 THE BUSINESS ENVIRONMENT Figure 1.3 Rankings on Doing Business topics - St. Lucia (Scale: Rank 189 center, Rank 1 outer edge) Figure 1.4 Distance to frontier scores on Doing Business topics - St. Lucia (Scale: Score 0 center, Score 100 outer edge) Source: Doing Business database. Note: The rankings are benchmarked to June 2015 and based on the average of each economy’s distance to frontier (DTF) scores for the 10 topics included in this year’s aggregate ranking. The distance to frontier score benchmarks economies with respect to regulatory practice, showing the absolute distance to the best performance in each Doing Business indicator. An economy’s distance to frontier score is indicated on a scale from 0 to 100, where 0 represents the worst performance and 100 the frontier. For the economies for which the data cover 2 cities, scores are a population-weighted average for the 2 cities.
Doing Business 2016 St. Lucia 10
THE BUSINESS ENVIRONMENT
Just as the overall ranking on the ease of doing business Doing Business introduced the distance to frontier score.
tells only part of the story, so do changes in that ranking. This measure shows how far on average an economy is
Yearly movements in rankings can provide some indication from the best performance achieved by any economy on
of changes in an economy’s regulatory environment for each Doing Business indicator.
firms, but they are always relative.
Comparing the measure for an economy at 2 points in time
Moreover, year-to-year changes in the overall rankings do allows users to assess how much the economy’s regulatory
not reflect how the business regulatory environment in an environment as measured by Doing Business has changed
economy has changed over time—or how it has changed over time—how far it has moved toward (or away from)
in different areas. To aid in assessing such changes, the most efficient practices and strongest regulations in
areas covered by Doing Business (figure 1.5).
Figure 1.5 How far has St. Lucia come in the areas measured by Doing Business?
Note: The distance to frontier score shows how far on average an economy is from the best performance achieved by any economy on
each Doing Business indicator. Starting a business is comparable to 2010. Getting credit, protecting minority investors, paying taxes and
resolving insolvency had methodology changes in 2014 and thus are only comparable to 2013. Dealing with construction permits,
registering property, trading across borders, enforcing contracts and getting electricity had methodology changes in 2015 and thus are
only comparable to 2014. The measure is normalized to range between 0 and 100, with 100 representing the best performance (the
frontier). See the data notes starting on page 119 of the Doing Business 2016 report for more details on the distance to frontier score.
Source: Doing Business database.Doing Business 2016 St. Lucia 11
THE BUSINESS ENVIRONMENT
The absolute values of the indicators tell another part of regulation—such as a regulatory process that can be
the story (table 1.1). The indicators, on their own or in completed with a small number of procedures in a few
comparison with the indicators of a good practice days and at a low cost. Comparison of the economy’s
economy or those of comparator economies in the indicators today with those in the previous year may
region, may reveal bottlenecks reflected in large numbers show where substantial bottlenecks persist—and where
of procedures, long delays or high costs. Or they may they are diminishing.
reveal unexpected strengths in an area of business
Table 1.1 Summary of Doing Business indicators for St. Lucia
Best performer globally
Antigua and Barbuda
Grenadines DB2016
St. Vincent and the
St. Kitts and Nevis
Dominica DB2016
Grenada DB2016
St. Lucia DB2016
St. Lucia DB2015
Jamaica DB2016
Indicator
DB2016
DB2016
DB2016
Starting a Business
67 65 107 63 76 9 90 77 New Zealand (1)
(rank)
Starting a Business (DTF
88.68 88.62 83.37 89.35 86.84 97.28 85.66 86.72 New Zealand (99.96)
Score)
Procedures (number) 5.0 5.0 8.0 5.0 6.0 2.0 7.0 7.0 New Zealand (1.00)*
Time (days) 11.0 11.0 21.0 12.0 15.0 3.0 18.5 10.0 New Zealand (0.50)
Cost (% of income per
22.4 22.9 9.5 15.0 17.3 5.0 7.9 16.5 Slovenia (0.00)
capita)
Paid-in min. capital (%
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 105 Economies (0.00)*
of income per capita)
Dealing with
Construction Permits 50 48 95 115 100 72 32 59 Singapore (1)
(rank)
Dealing with
Construction Permits 74.51 74.49 68.24 65.76 67.61 71.1 77.31 72.74 Singapore (92.97)
(DTF Score)
Procedures (number) 14.0 14.0 16.0 10.0 13.0 17.0 10.0 14.0 5 Economies (7.00)*Doing Business 2016 St. Lucia 12
Best performer globally
Antigua and Barbuda
Grenadines DB2016
St. Vincent and the
St. Kitts and Nevis
Dominica DB2016
Grenada DB2016
St. Lucia DB2016
St. Lucia DB2015
Jamaica DB2016
Indicator
DB2016
DB2016
DB2016
Time (days) 116.0 116.0 110.0 175.0 128.0 129.5 104.0 92.0 Singapore (26.00)
Cost (% of warehouse
0.7 0.7 0.4 0.1 0.3 0.9 0.3 0.1 Qatar (0.00)
value)
Building quality control
9.5 9.5 6.5 4.0 5.0 10.0 8.0 7.0 New Zealand (15.00)
index (0-15)
Getting Electricity
26 26 33 37 58 80 84 79 Korea, Rep. (1)
(rank)
Getting Electricity (DTF
84.7 84.72 83.48 82.44 76.39 71.09 70.02 71.13 Korea, Rep. (99.88)
Score)
Procedures (number) 5.0 5.0 4.0 5.0 5.0 7.0 4.0 3.0 14 Economies (3.00)*
Time (days) 19.0 19.0 42.0 61.0 38.0 95.0 18.0 52.0 Korea, Rep. (18.00)*
Cost (% of income per
197.6 191.8 118.8 461.1 196.4 242.9 264.3 55.6 Japan (0.00)
capita)
Reliability of supply and
transparency of tariff 6.0 6.0 5.0 7.0 4.0 7.0 0.0 0.0 18 Economies (8.00)*
index (0-8)
Registering Property
104 102 118 165 139 122 170 160 New Zealand (1)
(rank)
Registering Property
59.19 59.2 55.75 43.41 50.16 53.7 40.31 44.17 New Zealand (94.46)
(DTF Score)
Procedures (number) 9.0 9.0 7.0 5.0 8.0 8.0 6.0 7.0 4 Economies (1.00)*
Time (days) 17.0 17.0 39.0 42.0 32.0 18.0 82.0 38.0 3 Economies (1.00)*
Cost (% of property
7.6 7.6 10.8 13.3 7.4 9.8 13.2 11.8 Saudi Arabia (0.00)
value)
Quality of the land
administration index (0- 18.5 18.5 19.0 4.5 7.0 14.0 9.0 7.0 3 Economies (28.50)*
30)Doing Business 2016 St. Lucia 13
Best performer globally
Antigua and Barbuda
Grenadines DB2016
St. Vincent and the
St. Kitts and Nevis
Dominica DB2016
Grenada DB2016
St. Lucia DB2016
St. Lucia DB2015
Jamaica DB2016
Indicator
DB2016
DB2016
DB2016
Getting Credit (rank) 152 150 152 133 133 7 152 152 New Zealand (1)
Getting Credit (DTF
25 25 25 30 30 85 25 25 New Zealand (100)
Score)
Strength of legal rights
5.0 5.0 5.0 6.0 6.0 10.0 5.0 5.0 3 Economies (12.00)*
index (0-12)
Depth of credit
0.0 0.0 0.0 0.0 0.0 7.0 0.0 0.0 26 Economies (8.00)*
information index (0-8)
Credit registry coverage
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Portugal (100.00)
(% of adults)
Credit bureau coverage 22 Economies
0.0 0.0 0.0 0.0 0.0 22.4 0.0 0.0
(% of adults) (100.00)*
Protecting Minority
66 64 66 66 122 57 88 66 Singapore (1)*
Investors (rank)
Protecting Minority
56.67 56.67 56.67 56.67 45 58.33 53.33 56.67 Singapore (83.33)*
Investors (DTF Score)
Strength of minority
investor protection 5.7 5.7 5.7 5.7 4.5 5.8 5.3 5.7 3 Economies (8.30)*
index (0-10)
Extent of conflict of
interest regulation 6.7 6.7 6.7 6.7 6.7 5.7 6.7 6.7 Singapore (9.30)*
index (0-10)
Extent of shareholder
governance index (0- 4.7 4.7 4.7 4.7 2.3 6.0 4.0 4.7 4 Economies (8.00)*
10)
United Arab Emirates
Paying Taxes (rank) 83 78 161 98 132 146 147 97
(1)*
Paying Taxes (DTF United Arab Emirates
75.04 75.04 54.35 72.49 64.46 60.95 60.64 72.76
Score) (99.44)*
Payments (number per 35.0 35.0 57.0 37.0 42.0 37.0 39.0 36.0 Hong Kong SAR,Doing Business 2016 St. Lucia 14
Best performer globally
Antigua and Barbuda
Grenadines DB2016
St. Vincent and the
St. Kitts and Nevis
Dominica DB2016
Grenada DB2016
St. Lucia DB2016
St. Lucia DB2015
Jamaica DB2016
Indicator
DB2016
DB2016
DB2016
year) China (3.00)*
Time (hours per year) 110.0 110.0 207.0 117.0 140.0 358.0 203.0 108.0 Luxembourg (55.00)
Total tax rate (% of
34.7 34.7 41.9 37.0 45.3 35.2 49.7 38.6 Ireland (25.90)
profit)
Trading Across Borders
72 71 114 61 138 146 70 68 Denmark (1)*
(rank)
Trading Across Borders
78.6 78.6 62.01 81.04 55.76 50.84 79.2 79.78 Denmark (100)*
(DTF Score)
Time to export: Border
11 11 85 19 101 82 3 28 15 Economies (0.00)*
compliance (hours)
Cost to export: Border
533 533 546 450 1,034 599 285 200 18 Economies (0.00)*
compliance (USD)
Time to export:
Documentary 24 24 51 12 77 62 48 3 Jordan (0.00)
compliance (hours)
Cost to export:
Documentary 63 63 121 50 40 314 150 80 20 Economies (0.00)*
compliance (USD)
Time to import: Border
27 27 85 39 37 106 37 48 19 Economies (0.00)*
compliance (hours)
Cost to import: Border
657 657 546 583 1,745 606 261 875 28 Economies (0.00)*
compliance (USD)
Time to import:
Documentary 19 19 109 24 44 87 41 6 21 Economies (1.00)*
compliance (hours)
Cost to import:
Documentary 98 98 132 50 50 331 150 90 30 Economies (0.00)*
compliance (USD)
Enforcing Contracts 67 68 19 83 89 107 42 31 Singapore (1)Doing Business 2016 St. Lucia 15
Best performer globally
Antigua and Barbuda
Grenadines DB2016
St. Vincent and the
St. Kitts and Nevis
Dominica DB2016
Grenada DB2016
St. Lucia DB2016
St. Lucia DB2015
Jamaica DB2016
Indicator
DB2016
DB2016
DB2016
(rank)
Enforcing Contracts
60.87 60.87 73.18 59.17 58.41 55.36 66.87 70.08 Singapore (84.91)
(DTF Score)
Time (days) 635.0 635.0 351.0 681.0 688.0 655.0 578.0 394.0 Singapore (150.00)
Cost (% of claim) 37.3 37.3 22.7 36.0 32.6 45.6 20.5 30.3 Iceland (9.00)
Quality of judicial
12.0 12.0 11.5 11.5 10.5 11.0 11.0 12.0 3 Economies (15.50)*
processes index (0-18)
Resolving Insolvency
109 109 125 129 189 35 189 189 Finland (1)
(rank)
Resolving Insolvency
38.73 38.7 35 34.03 0 69.08 0 0 Finland (93.81)
(DTF Score)
Recovery rate (cents on
42.9 42.9 36.0 28.4 0.0 64.5 0.0 0.0 Japan (92.90)
the dollar)
no no no
Time (years) 2.0 2.0 3.0 4.0 1.1 Ireland (0.40)
practice practice practice
no no no
Cost (% of estate) 9.0 9.0 7.0 10.0 18.0 Norway (1.00)
practice practice practice
Outcome (0 as
no no no
piecemeal sale and 1 as 0 0 0 0 1
practice practice practice
going concern)
Strength of insolvency
5.0 5.0 5.0 6.0 0.0 11.0 0.0 0.0 4 Economies (15.00)*
framework index (0-16)
Source: Doing Business database.
Note: DB2015 rankings shown are not last year’s published rankings but comparable rankings for DB2015 that capture the effects of such
factors as data revisions and changes to the methodology. The global best performer on time for paying taxes is defined as the lowest
time recorded among all economies in the DB2016 sample that levy the 3 major taxes: profit tax, labor taxes and mandatory
contributions, and VAT or sales tax. If an economy has no laws or regulations covering a specific area—for example, insolvency—it
receives a “no practice” mark. Similarly, an economy receives a “no practice” mark if regulation exists but is never used in practice or if a
competing regulation prohibits such practice. Either way, a “no practice” mark puts the economy at the bottom of the ranking on the
relevant indicator. * Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s nameDoing Business 2016 St. Lucia 16 indicates the number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website (http://www.doingbusiness.org).
Doing Business 2016 St. Lucia 17
STARTING A BUSINESS
Formal registration of companies has many WHAT THE STARTING A BUSINESS
immediate benefits for the companies and for
business owners and employees. Legal entities can INDICATORS MEASURE
outlive their founders. Resources are pooled as
several shareholders join forces to start a company. Procedures to legally start and operate a
Formally registered companies have access to company (number)
services and institutions from courts to banks as well
Preregistration (for example, name
as to new markets. And their employees can benefit
verification or reservation, notarization)
from protections provided by the law. An additional
benefit comes with limited liability companies. These Registration in the economy’s largest
limit the financial liability of company owners to their business city
1
investments, so personal assets of the owners are not
Postregistration (for example, social security
put at risk. Where governments make registration
registration, company seal)
easy, more entrepreneurs start businesses in the
formal sector, creating more good jobs and Time required to complete each procedure
generating more revenue for the government. (calendar days)
What do the indicators cover? Does not include time spent gathering
information
Doing Business records all procedures officially
required, or commonly done in practice, for an Each procedure starts on a separate day (2
entrepreneur to start up and formally operate an procedures cannot start on the same day).
industrial or commercial business, as well as the time Procedures that can be fully completed
and cost to complete these procedures and the paid- online are recorded as ½ day.
in minimum capital requirement. These procedures Procedure completed once final document is
include obtaining all necessary licenses and permits received
and completing any required notifications,
verifications or inscriptions for the company and No prior contact with officials
employees with relevant authorities. The ranking of Cost required to complete each procedure
economies on the ease of starting a business is (% of income per capita)
determined by sorting their distance to frontier
scores for starting a business. These scores are the Official costs only, no bribes
simple average of the distance to frontier scores for No professional fees unless services required
each of the component indicators. by law or commonly used in practice
To make the data comparable across economies, Paid-in minimum capital (% of income
several assumptions about the business and the per capita)
procedures are used. It is assumed that any required
information is readily available and that the Deposited in a bank or with a notary before
entrepreneur will pay no bribes. Assumptions about registration (or within 3 months)
the business:
Is a limited liability company (or its legal Has a start-up capital of 10 times income per
equivalent), located in the largest business city capita and a turnover of at least 100 times
1
and is 100% domestically owned with five income per capita.
owners, none of whom is a legal entity.
Has a company deed 10 pages long.
Has at least 10 and up to 50 employees, all of
Does not qualify for any special benefits.
them domestic nationals.
Leases the commercial plant or offices and is not
Performs general commercial or industrial
a proprietor of real estate.
activities.
1
For 11 economies the data are also collected for the second largest business city.Doing Business 2016 St. Lucia 18 STARTING A BUSINESS Where does the economy stand today? What does it take to start a business in St. Lucia? the largest business city of an economy, except for 11 According to data collected by Doing Business, starting a economies for which the data are a population-weighted business there requires 5.00 procedures, takes 11.00 average of the 2 largest business cities. See the chapter days, costs 22.40% of income per capita and requires on distance to frontier and ease of doing business paid-in minimum capital of 0.00% of income per capita ranking at the end of this profile for more details. (figure 2.1). Most indicator sets refer to a case scenario in Figure 2.1 What it takes to start a business in St. Lucia Paid-in minimum capital (% of income per capita): 0.00 Source: Doing Business database. Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter.
Doing Business 2016 St. Lucia 19 STARTING A BUSINESS Globally, St. Lucia stands at 67 in the ranking of 189 average ranking provide other useful information for economies on the ease of starting a business (figure 2.2). assessing how easy it is for an entrepreneur in St. Lucia The rankings for comparator economies and the regional to start a business. Figure 2.2 How St. Lucia and comparator economies rank on the ease of starting a business Source: Doing Business database.
Doing Business 2016 St. Lucia 20
STARTING A BUSINESS
What are the details?
Underlying the indicators shown in this chapter for St.
STANDARDIZED COMPANY
Lucia is a set of specific procedures—the bureaucratic
and legal steps that an entrepreneur must complete
to incorporate and register a new firm. These are Legal form: Private Limited Liability Company
identified by Doing Business through collaboration
with relevant local professionals and the study of Paid-in minimum capital requirement: XCD 0
laws, regulations and publicly available information City: Castries
on business entry in that economy. Following is a
detailed summary of those procedures, along with Start-up Capital: 10 times GNI per capita
the associated time and cost. These procedures are
those that apply to a company matching the
standard assumptions (the “standardized company”)
used by Doing Business in collecting the data (see the
section in this chapter on what the indicators
measure).
Table 2.2 Summary of time, cost and procedures for starting a business in St. Lucia
Time to
No. Procedure Cost to complete
complete
Lawyer conducts name search and prepares incorporation
documents
(a) Attorney conducts name search and waits for approval, as approval
is not guaranteed.
(b) If the name is approved by Commercial Registry it is only then the
incorporation documents are prepared.
By-Laws are not mandatory but are highly recommended. However,
1 they are not filed together with the incorporation documents and are 2 days XCD 3,500
not included in the formation fee. They are filed subsequent to
incorporation and attract a separate filing fee. The Commercial Registry
does not charge for a name search, although there is a nominal fee for
optional name reservation. Attorney fees vary on case by case basis,
with an average fee of around XCD 3500.
Agency: Lawyer
Registration with the Commercial Registry
When registering the company with the Commercial Registry, the
promoters pay an administrative fee of XCD 850 when presenting the
documents for registration. The Registry issues a certification of
2 incorporation once the registration process is finalized, typically within 6 days XCD 850
one week.
Agency: Commercial RegistryDoing Business 2016 St. Lucia 21
Time to
No. Procedure Cost to complete
complete
Make company seal
The Companies Act of Saint Lucia does not require a company to heave
a seal. Notwithstanding, in practice the usage of a seal is required, for
instance, to open a bank account or to engage in specific transactions.
Many companies use common rubber as a seal signature to overcome 2 days XCD 75
3
the practical requirement, others makes a simple seal, which takes
about 2 days.
Agency: Sealmaker
* Obtain tax payer identification number
Either the company founder or an incorporation professional must 1 day,
apply in person to the Inland Revenue Department for a company Tax simultaneous with
4 Identification Number (TIN). no charge
previous
procedure
Agency: Inland Revenue Department
* Register as an employer with the social security institute
Either the company founder or an incorporation professional must 1 day,
apply to the National Insurance Corporation to register the company as simultaneous with
5 an employer for Social Security. no charge
previous
procedure
Agency: National Insurance Corporation.
* Takes place simultaneously with another procedure.
Source: Doing Business database.
Note: Online procedures account for 0.5 days in the total time calculation.Doing Business 2016 St. Lucia 22
DEALING WITH CONSTRUCTION PERMITS
Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION
public. But it needs to be efficient, to avoid excessive
PERMITS INDICATORS MEASURE
constraints on a sector that plays an important part in
every economy. Where complying with building
regulations is excessively costly in time and money, Procedures to legally build a warehouse
many builders opt out. They may pay bribes to pass (number)
inspections or simply build illegally, leading to Submitting all relevant documents and
hazardous construction that puts public safety at risk. obtaining all necessary clearances, licenses,
Where compliance is simple, straightforward and permits and certificates
inexpensive, everyone is better off. Submitting all required notifications and
What do the indicators cover? receiving all necessary inspections
Doing Business records all procedures required for a Obtaining utility connections for water and
business in the construction industry to build a sewerage
warehouse along with the time and cost to complete Registering and selling the warehouse after its
each procedure. In addition, this year Doing Business completion
introduces a new measure, the building quality
Time required to complete each procedure
control index, evaluating the quality of building
(calendar days)
regulations, the strength of quality control and safety
mechanisms, liability and insurance regimes, and Does not include time spent gathering
professional certification requirements. information
The ranking of economies on the ease of dealing with Each procedure starts on a separate day.
Procedures that can be fully completed online
construction permits is determined by sorting their
are recorded as ½ day
distance to frontier scores for dealing with
construction permits. These scores are the simple Procedure considered completed once final
average of the distance to frontier scores for each of document is received
the component indicators. No prior contact with officials
To make the data comparable across economies, Cost required to complete each procedure (%
several assumptions about the construction of warehouse value)
company, the warehouse project and the utility
Official costs only, no bribes
connections are used.
Building quality control index (0-15)
Assumptions about the construction company
Sum of the scores of six component indices:
The construction company (BuildCo):
Quality of building regulations (0-2)
Is a limited liability company (or its legal
equivalent). Quality control before construction (0-1)
Operates in the economy’s largest business Quality control during construction (0-3)
city. For 11 economies the data are also Quality control after construction (0-3)
collected for the second largest business
Liability and insurance regimes (0-2)
city.
Professional certifications (0-4)
Is 100% domestically and privately owned.
Has five owners, none of whom is a legal
entity.
Is fully licensed and insured to carry out
construction projects, such as building
warehouses.Doing Business 2016 St. Lucia 23
The construction company (BuildCo) (continued): Will be a new construction (there was no
previous construction on the land), with no
Has 60 builders and other employees, all of
trees, natural water sources, natural reserves
them nationals with the technical expertise
or historical monuments of any kind on the
and professional experience necessary to
plot.
obtain construction permits and approvals.
Will have complete architectural and
Has at least one employee who is a
technical plans prepared by a licensed
licensed architect or engineer and
architect. If preparation of the plans requires
registered with the local association of
such steps as obtaining further
architects or engineers. BuildCo is not
documentation or getting prior approvals
assumed to have any other employees who
from external agencies, these are counted as
are technical or licensed experts, such as
procedures.
geological or topographical experts.
Will include all technical equipment required
Has paid all taxes and taken out all
to be fully operational.
necessary insurance applicable to its
general business activity (for example, Will take 30 weeks to construct (excluding all
accidental insurance for construction delays due to administrative and regulatory
workers and third-person liability). requirements).
Owns the land on which the warehouse will
be built and will sell the warehouse upon
Assumptions about the utility connections
its completion.
The water and sewerage connections:
Is valued at 50 times income per capita.
Will be 150 meters (492 feet) from the
Assumptions about the warehouse
existing water source and sewer tap. If there
The warehouse: is no water delivery infrastructure in the
economy, a borehole will be dug. If there is
Will be used for general storage activities,
no sewerage infrastructure, a septic tank in
such as storage of books or stationery. The
the smallest size available will be installed or
warehouse will not be used for any goods
built.
requiring special conditions, such as food,
chemicals or pharmaceuticals. Will not require water for fire protection
reasons; a fire extinguishing system (dry
Will have two stories, both above ground,
system) will be used instead. If a wet fire
with a total constructed area of
protection system is required by law, it is
approximately 1,300.6 square meters
assumed that the water demand specified
(14,000 square feet). Each floor will be 3
below also covers the water needed for fire
meters (9 feet, 10 inches) high.
protection.
Will have road access and be located in the
Will have an average water use of 662 liters
periurban area of the economy’s largest
(175 gallons) a day and an average
business city (that is, on the fringes of the
wastewater flow of 568 liters (150 gallons) a
city but still within its official limits). For 11
day. Will have a peak water use of 1,325 liters
economies the data are also collected for
(350 gallons) a day and a peak wastewater
the second largest business city.
flow of 1,136 liters (300 gallons) a day.
Will not be located in a special economic
Will have a constant level of water demand
or industrial zone. Will be located on a land
and wastewater flow throughout the year.
plot of approximately 929 square meters
(10,000 square feet) that is 100% owned by Will be 1 inch in diameter for the water
BuildCo and is accurately registered in the connection and 4 inches in diameter for the
cadastre and land registry. sewerage connection.Doing Business 2016 St. Lucia 24 DEALING WITH CONSTRUCTION PERMITS Where does the economy stand today? What does it take to comply with the formalities to build business city of an economy, except for 11 economies for a warehouse in St. Lucia? According to data collected by which the data are a population-weighted average of the Doing Business, dealing with construction permits there 2 largest business cities. See the chapter on distance to requires 14.00 procedures, takes 116.00 days and costs frontier and ease of doing business ranking at the end of 0.70% of the warehouse value (figure 3.1). Most this profile for more details. indicator sets refer to a case scenario in the largest Figure 3.1 What it takes to comply with formalities to build a warehouse in St. Lucia Source: Doing Business database. Note: Time shown in the figure above may not reflect simultaneity of procedures. Online procedures account for 0.5 days in the total time calculation. For more information on the methodology of the dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected here, see the summary at the end of this chapter. .
Doing Business 2016 St. Lucia 25 DEALING WITH CONSTRUCTION PERMITS Globally, St. Lucia stands at 50 in the ranking of 189 economies and the regional average ranking provide economies on the ease of dealing with construction other useful information for assessing how easy it is for permits (figure 3.2). The rankings for comparator an entrepreneur in St. Lucia to legally build a warehouse. Figure 3.2 How St. Lucia and comparator economies rank on the ease of dealing with construction permits Source: Doing Business database.
Doing Business 2016 St. Lucia 26
DEALING WITH CONSTRUCTION PERMITS
What are the details?
The indicators reported here for St. Lucia are based
BUILDING A WAREHOUSE
on a set of specific procedures—the steps that a
company must complete to legally build a
warehouse—identified by Doing Business through Estimated value of
information collected from experts in construction XCD 989,054
warehouse :
licensing, including architects, civil engineers,
construction lawyers, construction firms, utility
City : Castries
service providers and public officials who deal with
building regulations. These procedures are those
that apply to a company and structure matching the The procedures, along with the associated time and cost,
standard assumptions used by Doing Business in are summarized below.
collecting the data (see the section in this chapter on
what the indicators cover).
Table 3.2 Summary of time, cost and procedures for dealing with construction permits in St. Lucia
Time to
No. Procedure Cost to complete
complete
Obtain copy of land register extract
One copy of the land register extract is required for the building
permit application. 1 day XCD 10
1
Agency: Land Registry Department
* Obtain survey plan, building forms, location plan and LRTP
map extract
One copy of the survey plan, two building forms, one copy of a
location plan (topographic sheet) and LRTP map extract are 1 day XCD 30
2
required for the building permit application.
Agency: Lands and Survey Department
Obtain recommendations from Health Department
Site and floor plans are submitted that show adequate drainage
and septic tank as well as the elevation (what the building looks
3 like from outside). 21 days XCD 250
Agency: Health Department
* Obtain recommendations from Fire Department
4 14 days XCD 600
Agency: Fire DepartmentDoing Business 2016 St. Lucia 27
Time to
No. Procedure Cost to complete
complete
* Receive stamp on drawings from a registered electrical
engineer
5 3 days XCD 1,400
Agency: Registered Engineer
Obtain approval from DCA's Commercial Committee
The committee meets once a month. BuildCo must provide
copies of all previous approvals, including all construction
drawings required by the Development Control Authority (DCA).
The DCA conducts the approval process for public and 42 days XCD 4,200
6
commercial buildings in Saint Lucia.
Agency: Development Control Authority's (DCA) Commercial
Committee
Receive foundation works inspection
Development Control Authority will inspect the construction
after the completion of foundation and structure works. 1 day no charge
7
Agency: Development Control Authority
Receive structural works inspection
8 1 day no charge
Agency: Development Control Authority
Request inspection by Fire Department
BuildCo must request an inspection from the Fire Department.
The Fire Department will then issue a letter, confirming that the
construction has followed the Fire Department 1 day no charge
9
recommendations.
Agency: Fire Department
* Request inspection from WASCO (Water Department)
10 1 day no charge
Agency: WASCO (Water Department)Doing Business 2016 St. Lucia 28
Time to
No. Procedure Cost to complete
complete
* Receive inspection by Fire Department
11 1 day no charge
Agency: Fire Department
* Receive inspection from WASCO (Water Department)
12 1 day no charge
Agency: WASCO (Water Department)
Obtain water connection
13 45 days XCD 150
Agency: WASCO (Water Department)
* Obtain Fire Department letter
14 12 days no charge
Agency: Fire Department
* Takes place simultaneously with another procedure.
Source: Doing Business database.
Note: Online procedures account for 0.5 days in the total time calculation.Doing Business 2016 St. Lucia 29
DEALING WITH CONSTRUCTION PERMITS
Building Quality Control Index
The building quality control index is the sum of the The index ranges from 0 to 15, with higher values
scores on the quality of building regulations, quality indicating better quality control and safety mechanisms in
control before construction, quality control during the construction permitting system.
construction, quality control after construction,
The indicator is based on the same case study
liability and insurance regimes, and professional
assumptions as the measures of efficiency.
certifications indices.
Table 3.3 Summary of quality control and safety mechanisms in St. Lucia
Answer Score
Building quality control index (0-15) 9.50
Quality of building regulations index (0-2) 2.00
In what way are the building regulations (including the building
code) or any regulations dealing with construction permits made Available online. 1.0
available? (0-1)
List of required
Which requirements for obtaining a building permit are clearly
documents; Fees to be
specified by the building regulations or by any accessible website, 1.0
paid; Required
brochure or pamphlet? (0-1)
preapprovals.
Quality control before construction index (0-1) 1.00
Who is part of the committee or team that reviews and approves
building permit applications in the relevant permit-issuing Licensed architect. 1.0
agency? (0-1)
Quality control during construction index (0-3) 2.00
Inspections by in-house
What types of inspections (if any) are required by law to be
engineer; Inspections at 1.0
carried out during construction? (0-2)
various phases.
Mandatory inspections
Do legally mandated inspections occur in practice during
are always done in 1.0
construction? (0-1)
practice.
Quality control after construction index (0-3) 3.00
Is there a final inspection required by law to verify that the Yes, in-house engineer
building was built in accordance with the approved plans and submits report for final 2.0
regulations? (0-2) inspection.
Final inspection always
Do legally mandated final inspections occur in practice? (0-1) 1.0
occurs in practice.
Liability and insurance regimes index (0-2) 0.50
Which parties (if any) are held liable by law for structural flaws or
Architect or engineer. 0.5
problems in the building once it is in use? (0-1)
Which parties (if any) are required by law to obtain an insurance No party is required by 0.0
policy to cover possible structural flaws or problems in the law to obtain insuranceDoing Business 2016 St. Lucia 30
Answer Score
building once it is in use? (0-1) .
Professional certifications index (0-4) 1.00
What are the qualification requirements for the professional University degree in
responsible for verifying that the architectural plans or drawings architecture or 0.0
are in compliance with existing building regulations? (0-2) engineering.
Minimum number of
years of experience;
University degree in
What are the qualification requirements for the professional who
engineering, 1.0
supervises the construction on the ground? (0-2)
construction or
construction
management.
Source: Doing Business database.Doing Business 2016 St. Lucia 31
GETTING ELECTRICITY
Access to reliable and affordable electricity is vital for WHAT THE GETTING ELECTRICITY
businesses. To counter weak electricity supply, many
firms in developing economies have to rely on self- INDICATORS MEASURE
supply, often at a prohibitively high cost. Whether
electricity is reliably available or not, the first step for Procedures to obtain an electricity connection
a customer is always to gain access by obtaining a (number)
connection.
Submitting all relevant documents and
What do the indicators cover? obtaining all necessary clearances and permits
Doing Business records all procedures required for a Completing all required notifications and
local business to obtain a permanent electricity receiving all necessary inspections
connection and supply for a standardized warehouse,
as well as the time and cost to complete them. These Obtaining external installation works and
procedures include applications and contracts with possibly purchasing material for these works
electricity utilities, clearances from other agencies Concluding any necessary supply contract and
and the external and final connection works. In obtaining final supply
addition, this year Doing Business adds two new
measures: the reliability of supply and transparency Time required to complete each procedure
of tariffs index (included in the aggregate distance to (calendar days)
frontier score and ranking on the ease of doing Is at least 1 calendar day
business) and the price of electricity (omitted from
these aggregate measures). The ranking of Each procedure starts on a separate day
economies on the ease of getting electricity is Does not include time spent gathering
determined by sorting their distance to frontier information
scores for getting electricity. These scores are the
Reflects the time spent in practice, with little
simple average of the distance to frontier scores for
follow-up and no prior contact with officials
each of the component indicators. To make the data
comparable across economies, several assumptions Cost required to complete each procedure (%
are used. of income per capita)
Assumptions about the warehouse Official costs only, no bribes
The warehouse: Excludes value added tax
Is owned by a local entrepreneur. The reliability of supply and transparency of
tariffs index
Is located in the economy’s largest
business city. For 11 economies the data Sum of the scores of six component indices:
are also collected for the second largest Duration and frequency of outages
business city.
Tools to monitor power outages
Is located in an area where similar
warehouses are typically located. In this Tools to restore power supply
area a new electricity connection is not Regulatory monitoring of utilities’ performance
eligible for a special investment promotion
Financial deterrents aimed at limiting outages
regime (offering special subsidization or
faster service, for example). Transparency and accessibility of tariffs
Is located in an area with no physical Price of electricity (cents per kilowatt-hour)*
constraints. For example, the property is Price based on monthly bill for commercial
not near a railway. warehouse in case study
Is a new construction and is being *Price of electricity is not included in the calculation of
connected to electricity for the first time. distance to frontier nor ease of doing business rankingDoing Business 2016 St. Lucia 32
Assumptions about the monthly consumption
The warehouse (continued): It is assumed that the warehouse operates 8
hours a day for 30 days a month, with
Has two stories, both above ground, with a
equipment utilized at 80% of capacity on
total surface area of approximately 1,300.6
average, and that there are no electricity cuts
square meters (14,000 square feet). The
(assumed for simplicity). The subscribed
plot of land on which it is built is 929
capacity of the warehouse is 140 kVA, with a
square meters (10,000 square feet).
power factor of 1 (1 kVA = 1 kW). The
Is used for storage of goods. monthly energy consumption is therefore
26,880 kWh, and the hourly consumption 112
kWh (26,880 kWh/30 days/8 hours).
Assumptions about the electricity connection
If multiple electricity suppliers exist, the
The electricity connection: warehouse is served by the cheapest supplier.
Is a permanent one. Tariffs effective in March of the current year
Is a three-phase, four-wire Y, 140-kilovolt- are used for calculation of the price of
ampere (kVA) (subscribed capacity) electricity for the warehouse.
connection (where the voltage is 120/208
V, the current would be 400 amperes;
where it is 230/400 B, the current would be
nearly 200 amperes).
Is 150 meters long. The connection is to
either the low-voltage or the medium-
voltage distribution network and either
overhead or underground, whichever is
more common in the area where the
warehouse is located.
Requires works that involve the crossing of
a 10-meter road (such as by excavation or
overhead lines) but are all carried out on
public land. There is no crossing of other
owners’ private property because the
warehouse has access to a road.
Includes only a negligible length in the
customer’s private domain.
Will supply monthly electricity
consumption of 26,880 kilowatt-hours
(kWh).
Does not involve work to install the internal
electrical wiring. This has already been
completed, up to and including the
customer’s service panel or switchboard
and installation of the meter base.Doing Business 2016 St. Lucia 33
GETTING ELECTRICITY
Where does the economy stand today?
What does it take to obtain a new electricity connection Most indicator sets refer to a case scenario in the largest
in St. Lucia? According to data collected by Doing business city of an economy, except for 11 economies for
Business, getting electricity there requires 5.00 which the data are a population-weighted average of the
procedures, takes 19.00 days and costs 197.60% of 2 largest business cities. See the chapter on distance to
income per capita (figure 4.1). frontier and ease of doing business ranking at the end of
this profile for more details.
Figure 4.1 What it takes to obtain an electricity connection in St. Lucia
Source: Doing Business database.
Note: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology of the
getting electricity indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures reflected
here, see the summary at the end of this chapter.You can also read
