Bahamas, The Economy Profile - Doing Business 2019
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Doing Business 2019 Bahamas, The
Economy Profile
Bahamas, The
Page 1
Doing Business 2019 Bahamas, The
Economy Profile of Bahamas, The
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Bahamas, The
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Bahamas, The
Ease of Doing Business in
Region Latin America & Caribbean DB 2019 Rank
190 1
Bahamas, The
Income Category High income 118
DB 2019 Ease of doing business score
Population 395,361
0 100
City Covered Nassau 58.90
DB 2019 Ease of Doing Business Score
0 100
82.75: United States (Rank: 8)
82.65: United Kingdom (Rank: 9)
59.48: Antigua and Barbuda (Rank: 112)
58.97: Regional Average (Latin America & Caribbean)
58.90: Bahamas, The (Rank: 118)
56.78: Barbados (Rank: 129)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Bahamas, The
1
28
50
55
69
87 84
82 91
Rank
105
109
132
136 144
161
163 169
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Bahamas, The
100
84.47
80.13
80 73.56
68.64
59.07
Score
60 53.07 53.38
43.31 43.33
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 4Doing Business 2019 Bahamas, The
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Bahamas, The
Starting a Business - Bahamas, The
Standardized Company
Legal form Limited Liability Company (LLC)
Paid-in minimum capital requirement BSD 0
City Covered Nassau
Indicator Bahamas, Latin America OECD high Best Regulatory
The & Caribbean income Performance
Procedure – Men (number) 7 8.2 4.9 1 (New Zealand)
Time – Men (days) 21.5 28.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 11.4 37.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 7 8.2 4.9 1 (New Zealand)
Time – Women (days) 21.5 28.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 11.4 37.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 1.5 8.6 0.0 (117 Economies)
Figure – Starting a Business in Bahamas, The and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
94.58: United Kingdom (Rank: 19)
91.23: United States (Rank: 53)
85.15: Barbados (Rank: 101)
84.47: Bahamas, The (Rank: 105)
81.74: Antigua and Barbuda (Rank: 131)
79.40: Regional Average (Latin America & Caribbean)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Bahamas, The
Figure – Starting a Business in Bahamas, The – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
6
20
Cost (% of income per capita)
5
15
4
Time (days)
3
10
2
5
1
0 0
1 2 3 4 5 6 *7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Bahamas, The
Details – Starting a Business in Bahamas, The – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Search for a company name and reserve the proposed name online Less than one day BSD 25
Agency : Registrar General's Department (online procedure)
The online name search system has been in place since 2004. The name
reservation expires after 90 days.
2 A lawyer prepares and notarizes the company documents (memorandum 1 day on average Usually about BSD
and articles of association) 650 (BSD 100 to
Agency : Lawyer or corporate service provider public treasury + BSD
Legally, only the memorandum has to be filed at the moment of the incorporation.
550 register of
Standard articles of association are available and the memorandum has to be a
company)
statutory declaration. Therefore, the most common scenario is to prepare both.
Since 2001, the Bahamas has issued many provisions on anti-money laundering
and since then the information requested from the client has increased. Usually,
a client has to provide the law firm with a financial and a character reference. In
addition to financial and character references and a notarised copy of the client's
passport, a client is also required to provide evidence of his or her current
address, usually a notarised copy of a utility bill and a notarised copy of the
passport and evidence of a current address for each of the directors.
The Affidavit, which records the oath of the subscribing witness, must be signed
by said witnesses in the presence of a Notary Public. The Statutory Declaration
is not mandatory under the Companies Act. However section 3(3) thereof states
that if the Memorandum of Association is filed along with the Statutory
Declaration, the Statutory Declaration shall be conclusive evidence of the
capacity of the subscribers to the Memorandum. The Statutory declaration is not
required to be executed by a Notary Public but instead by an attorney.
3 Stamp duty on the memorandum paid to the Public Treasury 1 day BSD 100 stamp duty
Agency : Public Treasury is payable on the first
The fees includes BSD 100 stamp duty is payable on the first BSD 5,000
BSD 5,000
authorized capital of the company and BSD 5 for every additional BSD 1,000
authorized capital of
authorized capital.
the company and
BSD 5 for every
additional BSD 1,000
authorized capital
4 File the company documents at the Companies Registry 3 days BSD 1,000 for the
Agency : Companies Registry incorporation and
The registration is usually done by a lawyer or a corporate service provider. If
BSD 50 for certified
submitted online, the fees are:BSD 1,000 for the incorporation and BSD 50 for
copy of the
Certified copy of the Memorandum and Articles of Association.
Memorandum and
Entrepreneurs and certified providers have the option to submit in person, which Articles of
will take roughly 10 days to receive the incorporation documents. Association.
5 Obtain the National Insurance Number from the National Insurance Board 1 day no charge
Agency : National Insurance Board
The National Insurance Number is a requirement to obtain business license.
According to the National Insurance Act, every employer has to have a national
insurance employer’s number. This could be obtained at no cost and it can be
done in a day (by mail or in person). The document required for registration is a
certificate of incorporation.
Employer also registers the employees if they have not been registered already.
Where an employee is being registered with the National Insurance Board they
must provide a copy of a document that verifies their birth, i.e. a birth certificate,
passport or affidavit.
Page 8Doing Business 2019 Bahamas, The
6 Register the company for a business license and VAT at the Department of 15 days BSD 100 (flat fee)
Inland Revenue - Central Revenue Administration of the Ministry of Finance
Agency : Department of Inland Revenue - Central Revenue Administration of the
Ministry of Finance
Under the Business License Act all persons carrying on business in The
Bahamas must have a business license before operations commence, whether
or not the business is owned by Bahamians. Since the coming into force of the
Business License Act, 2010 there is no longer a requirement to separately
register the trading name of the company. The requested trading name is
indicated on the Business Registration Form.
When the Business Registration Form is submitted online it must be
accompanied by: (i) proof of citizenship of the beneficial owners of the company;
(ii) a copy of the Certificate of Incorporation of the company; (iii) a copy of the
Certificate of Registration from the National Insurance Board; (iv) a copy of the
lease for the property; (v) a copy of the Certificate of Sanitation from the
Department of Environmental Health Services, depending on the nature of the
business operations, a Certificate of Sanitation may or may not be required. ; and
(vi) the licensing fee of BSD 100.
On 1 January, 2015, the Value Added Tax Act (the "VAT Act") came into effect in
The Bahamas. The VAT Act requires all persons, including companies, carrying
on a business with an annual turnover of B$100,000 or more, or who have
reasonable grounds to expect that the business will obtain an annual turnover of
B$100,000 or more, to register with the VAT Department of the Ministry of
Finance. VAT registrants are required charge and collect VAT at a rate of 7.5%
on the supply of all goods and services (except goods and services which are
exempt or zero-rated under the VAT Act) and remit the VAT collected to the
Government of The Bahamas. In addition, persons meeting the registration
threshold will be required to submit returns to the VAT Department on a monthly
or quarterly basis.
Business are able to register for VAT at the same time as registering for the
business license. In order to register for VAT the company must register within
14 days of commencing business if it is anticipated that it will meet the annual
turnover threshold of B$100,000. The application for registration must be
submitted through the VAT Department's Online Tax Administration System
(OTAS): vat.revenue.gov.bs, which will require the company to create a free
online user account and complete and submit the VAT Registration Application.
Once the VAT Department has approved the registration, which takes between 3
and 14 days, it will issue a Certificate of Registration to the company, which must
be displayed in all locations where the company conducts business.
7 Obtain a company seal 2 days on average BSD 35
Agency : Registry Agency (simultaneous with
A proof of seal has to be provided at the time of filing the first annual statement.
previous procedure)
Under Section 26 of the Companies Act of 1992, every company must have a
common seal. Seals are locally manufactured and can usually be obtained within
2-3 business days at a cost of BSD 30- BSD 35.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Bahamas, The
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Bahamas, The
Dealing with Construction Permits - Bahamas, The
Standardized Warehouse
Estimated value of warehouse BSD 1,505,750.90
City Covered Nassau
Indicator Bahamas, Latin America OECD high Best Regulatory
The & Caribbean income Performance
Procedures (number) 16 15.4 12.7 None in 2017/18
Time (days) 180 199.0 153.1 None in 2017/18
Cost (% of warehouse value) 0.7 3.2 1.5 None in 2017/18
Building quality control index (0-15) 10.0 8.9 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Bahamas, The and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
80.29: United Kingdom (Rank: 17)
77.88: United States (Rank: 26)
68.64: Bahamas, The (Rank: 91)
68.14: Antigua and Barbuda (Rank: 97)
63.48: Regional Average (Latin America & Caribbean)
56.64: Barbados (Rank: 154)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Bahamas, The – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
180 0.35
160
0.3
Cost (% of warehouse value)
140
0.25
120
Time (days)
100 0.2
80 0.15
60
0.1
40
0.05
20
0 0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
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 11Doing Business 2019 Bahamas, The
Figure – Dealing with Construction Permits in Bahamas, The and comparator economies – Measure of Quality
15
11.2
Index score 10.0
10 9.0 9.0 8.9
6.5
5
0
Bahamas, The Antigua and Barbuda United Kingdom United States Barbados Latin America & Caribbean
Details – Dealing with Construction Permits in Bahamas, The – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain “approval in principle” (planning permission) with the 30 days no charge
Town Planning Committee
Agency : Town Planning Committee
This approval is not a prerequisite for the building permit but most constructors
would still want to obtain it in advance to make sure that their project is
viable/acceptable in terms of town planning. Only the plot and location plan
needs to be submitted. to be attached. No proof of ownership is needed at this
point. The Committee that examines the proposal meets only every other week.
The Committee members represent the different interest groups that are
interested in building process. The Committee agenda is prepared by the
Department of Physical Planning. The Committee also hears complaints and
addresses grievances.
2 Request and obtain building permit at the Building Control Unit of the 120 days BSD 4,900
Ministry of Works
Agency : Ministry of Works
BuildCo will submit the request for the building permit to the Building Control
Department and pay 10% as a deposit. The file will be inserted in a cardboard
jacket and submitted to various department, one after the other.
The application and supporting documents are sent to the following departments
for processing:
b. Civil Design Section, where checks are made for drainage and road access.
c. Department of Physical Planning, which grants zoning approval.
d. Department of Environmental Health/BEST Commission, to assess the
environmental impact and ensure compliance with Environmental Health codes.
e. Control Division of the Ministry of Works & Urban Development, where they
complete mechanical, electrical, structural and other checks as necessary.
4. The Building Permit is then prepared for issue. Drawings are stamped as
approved and the final fee is assessed and calculated.
5. Applicants are notified via telephone that the Building Permit has been
approved and can be collected upon payment of the building permit fee.
The applicant must then make final payment and collect the Building Permit at
the Buildings Control Division of the Ministry of Works & Urban Development.
Buildings Regulation Art. 4. (1) “Subject to the provisions of this Act, no person
shall commence or carry on, or cause or procure to be commenced or carried on,
any building operation save under and in accordance with the conditions of a
valid building permit and in accordance with the provisions of this Act and any
rules and the Building Code.” The status of the application can be checked
online.
3 Request and receive plumbing permit 1 day BSD 3,500
Agency : Ministry of Works
A request for plumbing inspection must be requested by the licensed plumber.
4 Receive "rough-in" plumbing inspection 1 day no charge
Agency : Ministry of Works
5 Receive stand pipe inspection by the Fire Branch of the Royal Bahamas 1 day no charge
Police Force
Agency : Fire Branch of the Royal Bahamas Police Force
The Fire Department will proceed with an inspection of the stand pipes and
sprinkler system during the construction phase.
6 Receive inspection of floors 1 day no charge
Agency : Ministry of Works
7 Receive inspection of walls 1 day no charge
Agency : Ministry of Works
8 Receive inspection of roofing 1 day no charge
Agency : Ministry of Works
Page 12Doing Business 2019 Bahamas, The
9 File notice of completion of the plumbing works 1 day no charge
Agency : Building Control Division
The certified plumber must file a notice of completion of all plumbing works so
that the final inspection can take place.
10 Receive final inspection 1 day no charge
Agency : Ministry of Works
11 Obtain final plumbing inspection 1 day no charge
Agency : Ministry of Works
After the plumbing has been approved, the plumber can obtain a copy of the
approval at the Ministry of Works.
12 Receive fire safety inspection 1 day no charge
Agency : Fire Branch of the Royal Bahamas Police Force
After the final inspection performed by the Ministry of Works, it is often
determined that a fire inspection is also required.
Some contractors even have the fire inspection conducted before the final
inspection from the Ministry of Works, to ensure that the final inspection goes
smoothly.
13 Obtain occupancy permit 2 days no charge
Agency : Ministry of Works
BuildCo must apply for the occupancy permit, which can only be obtained after
the final inspection for the electrical, plumbing and fire protection final inspections
are carried out.
14 Request water and sewage connection 1 day no charge
Agency : Bahamas Water and Sewerage Corporation
The request for water and sewage connection is done online at
http://www.wsc.com.bs/NewConnectionsForm.aspx
The following document has to be submitted:
A copy of the property title
In case of Limited Company, the application must be signed by two or more
directors of the Company accompanied by a copy of the resolution authorizing
these directors to sign on behalf of the company. An article of association and
certificate of good standing must also be attached.
15 Receive water and sewage inspection 1 day no charge
Agency : Bahamas Water and Sewerage Corporation
Technician will visit the property to establish the work to be done and the cost as
well. This is usually done within 5-7 working days.
16 Obtain water and sewage service 16 days BSD 2,784
Agency : Bahamas Water and Sewerage Corporation
Bahamas Water and Sewerage Corporation will conduct the works to connect the
meter to the main. BuildCo must hire a licensed plumber to connect from the
meter to the building. Cost includes labor, connection fee and meter.
It will take about 15 working days for the work and connection to be completed.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Bahamas, The
Details – Dealing with Construction Permits in Bahamas, The – Measure of Quality
Answer Score
Building quality control index (0-15) 10.0
Quality of building regulations index (0-2) 1.0
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 0.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections at 1.0
(0-2) various phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance 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 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 3.0
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 14Doing Business 2019 Bahamas, The
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Bahamas, The
Getting Electricity - Bahamas, The
Standardized Connection
Price of electricity (US cents per kWh) 27.6
Name of utility Bahamas Power and Light
City Covered Nassau
Indicator Bahamas, Latin America OECD high Best Regulatory
The & Caribbean income Performance
Procedures (number) 5 5.5 4.5 3 (25 Economies)
Time (days) 67 65.5 77.2 18 (3 Economies)
Cost (% of income per capita) 90.4 946.3 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 4 4.3 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Bahamas, The and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
96.45: United Kingdom (Rank: 7)
82.15: United States (Rank: 54)
80.39: Antigua and Barbuda (Rank: 63)
73.56: Bahamas, The (Rank: 87)
70.59: Regional Average (Latin America & Caribbean)
65.12: Barbados (Rank: 114)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Bahamas, The
Figure – Getting Electricity in Bahamas, The – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
90
60 80
Cost (% of income per capita)
70
50
60
Time (days)
40
50
30 40
30
20
20
10
10
0 0
1 *2 3 4 5
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 Bahamas, The and comparator economies – Measure of Quality
8
8
7.2
7
6
6
Index score
5 4.3
4 4
4
3
2
1
0
Bahamas, The Antigua and Barbuda United Kingdom United States Barbados Latin America & Caribbean
Page 17Doing Business 2019 Bahamas, The
Details – Getting Electricity in Bahamas, The – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Receive site visit and estimate from Bahamas Power and Light and pay 33 calendar days USD 23,000
connection costs
Agency : Bahamas Power and Light
The customer submits an application for a new electricity connection. The utility
will then send out an engineer from the planning department to conduct a site
visit and prepare an estimate. A letter will be sent to the customer along with an
invoice stating the cost for the connection works. The payment can be made at
the two offices of Bahamas Power and Light by check, cash or credit card. The
connection costs includes the cost of a distribution transformer and accessories.
The external works will be scheduled by the utility - Bahamas Power and Light
after the payment is received.
2 Request and receive final inspection by Ministry of Works 21 calendar days BSD 0
Agency : Ministry of Public Works and Transport - Building Control Department
The customer requests a final inspection for the internal wiring from the Ministry
of Works. The Inspector signs off on the certificate after ascertaining that all
internal wiring has been done satisfactorily. There are several rounds of internal
wiring inspection conducted by the Ministry of Works during the construction of
the warehouse.
3 Receive external works from Bahamas Power and Light 28 calendar days USD 0
Agency : Bahamas Power and Light
Bahamas Power and Light will conduct the external works. This involves the
construction of the mains extension, installation of the transformer and the
installation of the service cable.
4 Open electricity account with Bahamas Power and Light 1 calendar day BSD 3,493.76
Agency : Bahamas Power and Light
In order to open an account with the Bahamas Power and Light, the customer
should bring the following into BPL's Business Office on Blue Hill and Tucker
Roads or at the Marathon Mall Office:
• The original Electrical Installation Approval, a copy of the Occupancy Certificate
(or occupancy exemption). These documents are issued by the Building Control
Division of the Ministry of Works & Transport and can be obtained from the
electrical or building contractor.
• Two forms of personal identification, the National Insurance Card, along with a
valid Passport or Voters Card. In the case of non-working expatriates, a valid
Passport along with a Social Security Card or Driver’s License.
• Where the applicant is a Limited Company or Government Ministry, the
following is required: A letter on the Company's or Ministry's letterhead with the
name of two (2) signatories, positions held, along with the Company's seal or
Ministry's stamp affixed; along with the requirements in point 1.
• The letter should state that the company / government ministry applies for the
supply of electricity to certain named premises and authorizes the persons (also
to be named) to sign on the Company's or Ministry's behalf. There ought to be
two signatories on the Company's or Ministry's account with the Corporation.
5 Receive meter installation and electricity flow 5 calendar days BSD 0
Agency : Bahamas Power and Light
The service extension (transformer, service cable, etc) has been completed prior
to the account being opened, and meter is now installed and electricity turned on.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Bahamas, The
Details – Getting Electricity in Bahamas, The – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 4
Total duration and frequency of outages per customer a year (0-3) 1
System average interruption duration index (SAIDI) 5.3
System average interruption frequency index (SAIFI) 6.8
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 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) 0
Are effective tariffs available online? No
Link to the website, if available online n.a
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 19Doing Business 2019 Bahamas, The
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Bahamas, The
Registering Property - Bahamas, The
Indicator Bahamas, Latin America OECD high Best Regulatory
The & Caribbean income Performance
Procedures (number) 7 7.2 4.7 1 (4 Economies)
Time (days) 122 63.3 20.1 1 (New Zealand)
Cost (% of property value) 4.3 5.8 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 3.0 11.9 23.0 None in 2017/18
Figure – Registering Property in Bahamas, The and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
76.87: United States (Rank: 38)
75.34: United Kingdom (Rank: 42)
56.63: Antigua and Barbuda (Rank: 120)
55.25: Regional Average (Latin America & Caribbean)
54.33: Barbados (Rank: 129)
43.31: Bahamas, The (Rank: 169)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Bahamas, The – Procedure, Time and Cost
Time (days) Cost (% of property value)
120 3
100 2.5
Cost (% of property value)
80 2
Time (days)
60 1.5
40 1
20 0.5
0 0
1 2 *3 *4 *5 6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2019 Bahamas, The
Figure – Registering Property in Bahamas, The and comparator economies – Measure of Quality
30
25.5
25
Index score 19.0
20 17.6
15
11.5 11.9
10
5 3.0
0
Bahamas, The Antigua and Barbuda United Kingdom United States Barbados Latin America & Caribbean
Details – Registering Property in Bahamas, The – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Drafting of contracts and exchange of contracts once agreed 1 day BSD 27,557.51;
Agency : Lawyer's office (2.5% of the value of
The contract stage, which can last between 1 and 5 days, depending on the
the property is
complexity of the transaction, would include the following steps:
payable on the first
B$500,000
(1) The Seller's lawyer prepares a draft Agreement for Sale and submits it to the
Buyer's lawyer for approval. 2% of the value of the
(2) The Seller's lawyer forwards the final Agreement for Sale (in duplicate) to the property is payable
Buyer's lawyer for execution. for that part which is
(3) The Buyer's lawyer returns a signed Agreement for Sale (and deposits part of in excess of
the payment, usually 10% of the purchase price). B$500,000, but does
not exceed
After the contract stage, the Buyer's lawyer would conduct the due diligence
B$1,000,000
included in procedures 2, 3, and 4. As part of the due diligence, the Buyer’s
1% of the value that
lawyer may forward requisitions. Once the due diligence is completed, the
buyer's lawyer forwards the draft Conveyance to the seller's lawyer for approval. is in excess of
B$1,000,000, but
The Bahamas Bar Association has a sliding scale of fees for property does not exceed
transactions, which is based on the valued of the property: B$5,000,000.)
2.5% of the value of the property is payable on the first B$500,000
2% of the value of the property is payable for that part which is in excess of
B$500,000, but does not exceed B$1,000,000
1% of the value that is in excess of B$1,000,000, but does not exceed
B$5,000,000.
2 Lawyer or his clerk checks for encumbrances at the Registry of records 45 days Cost included in
(regarding any mortgages on the property) lawyer's fees
Agency : Registry of Records (Procedure 1)
Searches are conducted by search clerks or lawyers. Documents recorded at the
Registry of Records are available on microfilm up to 2003. From 2003 onwards
documents recorded have been scanned and may be accessed online.
When the parties hire a large law firm, the firm usually does this Documents
search, together with the Court Cause List search of Procedure 3 and the
Company Search of Procedure 4, in house. The firm does not charge an extra
fee for these searches, i.e. it is included in the conveyance fee. When an
independent party is hired to conduct the searches, the fee is 300-350 USD per
lot searched.
3 Lawyer checks for judgments against the property at the Supreme Court 1 day Cost included in
Agency : Supreme Court lawyer's fees
This search is conducted to check if there are any judgments affecting the
(Procedure 1)
property, since charges imposed by judicial decisions could be levied on the
property, regardless of who the owner is.
4 Lawyer checks for other companies using the same property at the 1 day Cost included in
Company Registrar lawyer's fees
Agency : Company Registry (Procedure 1)
Searches are done at the Companies Registry only if a company owns or
previously owned the property. Searches are done to ensure that the company
was existing and duly incorporated during the property ownership period and to
ensure that any prior conveyance was executed in accordance with the Articles
of Association.
Page 22Doing Business 2019 Bahamas, The
5 Real property tax status enquiry with the Valuation office of the Ministry of 1 day Cost included in
Finance. lawyer's fees
Agency : Department of Inland Revenue (Procedure 1)
Starting January 2015 it is required to submit a certificate of good standing with
property taxes signed by the Chief Valuation officer of the Inland Revenue
Department. If the seller did not pay these taxes in the past, the new owner will
be liable to satisfy this debt. In addition to this Procedure, the buyer's lawyer
might also chose to make an inquiry with utility companies (water, electricity and
phone/cable). Such inquiry could be conducted within two weeks.
6 Payment of Stamp Duty 1 day BSD 37,643.77;
Agency : Department of Inland Revenue (2.5% of the value of
Stamp duty is payable as a percent of the value of the property. Paid at the
the property (a VAT
Public Treasury. The rates for stamp duty are as follows: Stamp duty is payable
tax of 7.5% of the
as a percent of the value of the property.
property's value is
The rate of stamp duty applicable to deeds of conveyance, assignments or
transfers of realty, as per the Stamp (Amendment) Act of 2015 effective July 1, applicable for
2015 is 2.5% of the property's value. properties having a
value above USD
100,000))
7 Lodge the conveyance for recording at registry of records 75 days BSD 4.5; (BSD
Agency : Registry of Records 4.50/page)
It generally takes between two and three months for the Registry of Records to
record a property transfer and return the supporting documentation after it has
been filed for recording. In order to file the transfer instrument for registration, the
affidavits of the witnesses to the convayance have to be notarized. This
Procedure is not necessary for the validity of the conveyance, but it is a
requirement under the Registration of Records Act (Ch. 187 Statute Laws of The
Bahamas, 2000 Edition) to record the transfer. Any licenced notary public can do
it at a cost of BSD 30.00 to BSD 50.00, and in most cases lawyers have a notary
public licence, in which case they may do it themselves. In this case, the fee is
included in the lawyer's overall fees charged in Procedure 1.
Takes place simultaneously with previous procedure.
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