Liberia Economy Profile - Doing Business 2019
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Doing Business 2019 Liberia
Economy Profile
Liberia
Page 1
Doing Business 2019 Liberia
Economy Profile of Liberia
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 Liberia
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 Liberia
Ease of Doing Business in DB 2019 Rank
Region Sub-Saharan Africa
190 1
Liberia
Income Category Low income 174
DB 2019 Ease of doing business score
Population 4,731,906
0 100
City Covered Monrovia 43.51
DB 2019 Ease of Doing Business Score
0 100
77.88: Rwanda (Rank: 29)
70.31: Kenya (Rank: 61)
59.22: Ghana (Rank: 114)
51.61: Regional Average (Sub-Saharan Africa)
48.74: Sierra Leone (Rank: 163)
43.51: Liberia (Rank: 174)
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 - Liberia
1
28
55 67
80
82
Rank
112 111
109
136
163 172 175
182 180 179
185
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 - Liberia
100
88.14
80 76.70
Score
60
45.00
40.50
40 35.06 35.23
28.94 31.09
26.67 27.77
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 Liberia
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
business or to leave the home to register the also collected for the second largest business city.
company - The entire office space is approximately 929 square meters (10,000 square feet).
- 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
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- 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
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
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 Liberia
Starting a Business - Liberia
Standardized Company
Legal form Private Limited Company
Paid-in minimum capital requirement LRD 0
City Covered Monrovia
Indicator Liberia Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 5 7.4 4.9 1 (New Zealand)
Time – Men (days) 18 23.3 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 12.6 44.4 3.1 0.0 (Slovenia)
Procedure – Women (number) 5 7.6 4.9 1 (New Zealand)
Time – Women (days) 18 23.4 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 12.6 44.4 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 10.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Liberia and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
91.39: Rwanda (Rank: 51)
91.18: Sierra Leone (Rank: 55)
88.14: Liberia (Rank: 80)
84.29: Ghana (Rank: 108)
82.41: Kenya (Rank: 126)
78.52: Regional Average (Sub-Saharan Africa)
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 Liberia
Figure – Starting a Business in Liberia – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
18 10
16
Cost (% of income per capita)
8
14
12
Time (days)
6
10
8
4
6
4
2
2
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.
Page 7Doing Business 2019 Liberia
Details – Starting a Business in Liberia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Reserve a unique company name 1 day LRD 1,400
Agency : Liberia Business Registry
The applicant can search the name online or at the Liberian Business Registry
(LBR) helpdesk. The reservation of the name costs LRD 1,400 and lasts for 120
days.
2 Register at the Liberia Business Registry 1 day (simultaneous no charge
Agency : Liberia Business Registry with previous
The entrepreneur submits the company registration application to the Liberia procedure)
Business Registry (LBR) office. The application must include the following
documents:
Consolidated application for a limited liability company contains:
1. Registration Form (RF – 001)
2. Articles of incorporation
3. Copy of ID documents as attachments to forms A or B
4. Additional parts:
- Empowered person form (A) or Registered agent form (B) in case of a company
representative
- Incorporator(s) form (E)
- Shares and shareholder(s) form (F)
- Information for TAX authority form (Q)
LBR officers review the application and request the Tax Identification Number
(TIN) and BPS from the Ministry of Finance on behalf of the entrepreneur.
3 Pay fees and obtain proof of payment 1 day (simultaneous LRD 4,000
Agency : Liberia Business Registry (Central Bank window) with previous
The entrepreneur proceeds to the bank window in order to pay the associated procedure)
registration fees. Upon payment of the fee, the Bank officer issues a flag receipt
of the Government of Liberia as proof of payment. This receipt has to be returned
to the initial officer who accepted the application.
4 Receive the Business Registration Certificate 14 days no charge
Agency : Liberia Business Registry
The entrepreneur returns to the Liberia Business Registry office to submit the
proof of fee payment. The officer then journalizes the dossier and provides the
entrepreneur with the receipt slip, thereby approving the dossier for processing.
The entrepreneur can track the status of the application online; and upon
approval, the company receives a Business Registration Certificate. The amount
of LRD 4,000 is charged for business registration. As of June 27 2012,
companies no longer need to pay a fee of LRD 4,200 for the business license.
5 Registration with the National Association of Social Security 1 day no charge
Agency : National Association of Social Security (NASSCORP)
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Liberia
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
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• 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
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
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
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
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 9Doing Business 2019 Liberia
Dealing with Construction Permits - Liberia
Standardized Warehouse
Estimated value of warehouse LRD 2,141,300
City Covered Monrovia
Indicator Liberia Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 25 14.7 12.7 None in 2017/18
Time (days) 87 145.7 153.1 None in 2017/18
Cost (% of warehouse value) 38.1 8.8 1.5 None in 2017/18
Building quality control index (0-15) 2.0 8.5 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Liberia and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
67.01: Rwanda (Rank: 106)
66.16: Ghana (Rank: 115)
63.49: Kenya (Rank: 128)
58.59: Regional Average (Sub-Saharan Africa)
38.43: Sierra Leone (Rank: 182)
28.94: Liberia (Rank: 185)
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 Liberia – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
18
80
16 Cost (% of warehouse value)
70
14
60
12
Time (days)
50 10
40 8
30 6
20 4
10 2
0 0
1 *2 *3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 * 21 22 23 24 25
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 10Doing Business 2019 Liberia
Figure – Dealing with Construction Permits in Liberia and comparator economies – Measure of Quality
15 14.0
11.0
Index score
10 9.0 8.5
7.0
5
2.0
0
Liberia Ghana Kenya Rwanda Sierra Leone Sub-Saharan Africa
Details – Dealing with Construction Permits in Liberia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain an environmental clearance 13 days USD 1,125
Agency : Environmental Protection Agency
The environmental clearance must be obtained before requesting the building
plans approval by the Ministry of Public Works.
2 Obtain a geo-technical study/soil test 11 days USD 788
Agency : Private firm
A geo-technical study / soil test is mandatory to obtain a building permit in
Monrovia
3 Obtain a topographical survey of the land 2 days USD 725
Agency : Private surveyor
A topographical survey is done to study the slope of the land for the design of the
building plans, mainly the water and sewage.
4 Submit plans to Ministry of Public Works 1 day no charge
Agency : Ministry of Public Works (MPW)
The application file should include 2 copies of the site plan; letter of request
addressed to the Deputy Minister; the land deed; and the architectural, structural,
and mechanical drawings. These documents are passed from one official to
another for approval at the Ministry of Public Works (MPW) before the building
permit is issued. Physically all departments are located in different parts of the
city which may delay the approval.
The documents are submitted internally at the MPW in the following order:
• Office of the Deputy Minister, Technical Services
• Office of the Assistant Minister, Technical Services (initial recipient)
• Land-Use Planning and Zoning Division (initial site plan and document review).
There are no thorough checks with the National Archives on the authenticity of
the land documents, ensuring that is the responsibility of the owner of the
warehouse.
• Chief of Zoning (physical site approval)
• Chief of Architecture (design approval)
• Chief of Electromechanical Engineering (electrical and mechanical approval)
• Chief of Engineering (structural approval and billing)
• Finance Section (payments)
• Land-Use Planning and Programming (signature on permit)
• Office of the Deputy Minister, Technical Services (permit attached)
A temporary building permit can be granted after the second step above, when
the Land-Use Planning and Zoning Division conducts an initial site plan and
document review. This temporary permit can be obtained within one week. It is
granted for a maximum of 90 days, but this is an exception rather than the rule.
In practice, a permit is accorded after all steps mentioned above have been
completed. As a result of the weak enforcement of building regulations, partly a
result of the post-conflict situation, many private construction projects take place
without following the official guidelines.
5 Receive inspection from Ministry of Public Works (Zoning Division) 1 day no charge
Agency : Ministry of Public Works (Zoning Division)
It takes about 3 days for the Zoning Division to process an application. The
Zoning Division will contact the applicant to inform them that they will need an
inspection. There are only 4 inspectors and resources are limited, so the
applicant has to provide transportation for them.
6 Obtain payment slip from the Ministry of Public Works 1 day USD 700
Agency : Ministry of Public Works (MPW)
Once all the technical departments have reviewed the application, the Finance
Department creates a payment slip. BuildCo must pick up the payment slip and
then go the Central Bank to pay the fees. The fee for design approval for
commercial buildings is USD 0.05 per sq. ft.
Page 11Doing Business 2019 Liberia
7 Obtain construction permit from the Ministry of Public Works 28 days no charge
Agency : Ministry of Public Works (MPW)
BuildCo must return to the Ministry of Public Works (MPW) with the payment
receipt and the application is then processed for final approval. The process at
the MPW from submission of plans (procedure 1) to approval used to take 3
months, but reforms introduced in 2008 reduced the processing time for simple
building permits to 1 month. The MPW established a 30-day statutory time limit
for the issuance of building permits. The MPW also introduced a checklist to
clearly define all of the documents required to complete the application. Now all
applications are scrutinized on submission to check for completeness and
accuracy before being forwarded for processing. The reform eliminated the
Minister’s signature on building permits for simple construction projects. By rule,
the Minister's consent is only required for projects with a value greater than USD
1 million or that involve a foreign government. However, in practice the Minister
or Deputy Minister still approves projects that are less than USD 1 million in
value.
8 Obtain construction clearance from the City Corporation of Monrovia 2 days USD 560
Agency : City Corporation of Monrovia
After obtaining the design approval from the MPW, BuildCo must obtain a
separate construction clearance from the Planning Department at the City
Corporation of Monrovia. The Planning Department takes 1 day to review the
plans and then prepares a payment slip which is usually paid the next day.
City Corporation of Monrovia as of May 1, 2009 abolished 3% fee charge, based
on project value, for issuing a building permit and replaced it with a fixed fee of
USD 0.04 per sq. ft. for new commercial and industrial construction projects.
However, practitioners note that this fee is "negotiable". Applicants can pay a
less amount, which is official, for a clearance that will last for a shorter period of
time. There are no fee schedules posted at the City Corporation and often,
builders are asked to pay much higher fees.
9 Receive inspection from the Ministry of Public Works - I 1 day no charge
Agency : Ministry of Public Works (MPW)
The construction of the warehouse can commence after the building permit is
obtained. There is no requirement to request inspections at any stage of the
construction process. However, building inspectors and engineers are often
dispatched from the Ministry of Public Works to inspect construction sites to see
to what extent the construction conforms with the originally submitted drawings.
Over the course of 6 -- 7 months, inspections occur randomly at a rate of every 3
weeks or as often as every week. Construction work stops only if the plans have
not been complied with.
10 Receive inspection from the Ministry of Public Works - II 1 day no charge
Agency : Ministry of Public Works (MPW)
11 Receive inspection from the Ministry of Public Works - III 1 day no charge
Agency : Ministry of Public Works (MPW)
12 Receive inspection from the Ministry of Public Works - IV 1 day no charge
Agency : Ministry of Public Works (MPW)
13 Receive inspection from the Ministry of Public Works - V 1 day no charge
Agency : Ministry of Public Works (MPW)
14 Receive inspection from the Ministry of Public Works - Vl 1 day no charge
Agency : Ministry of Public Works (MPW)
15 Receive inspection from the Ministry of Public Works - VII 1 day no charge
Agency : Ministry of Public Works (MPW)
16 Receive inspection from the Ministry of Public Works - VIII 1 day no charge
Agency : Ministry of Public Works (MPW)
17 Receive inspection from the Ministry of Public Works - IX 1 day no charge
Agency : Ministry of Public Works (MPW)
18 Receive inspection from the Ministry of Public Works - X 1 day no charge
Agency : Ministry of Public Works (MPW)
19 Receive inspection from the Ministry of Public Works - XI 1 day no charge
Agency : Ministry of Public Works (MPW)
20 Receive inspection from the Ministry of Public Works - XII 1 day no charge
Agency : Ministry of Public Works (MPW)
Install the septic tank 1 day USD 3,281
21 Agency : Liberia Water and Sewer Corporation (LWSC)
Page 12Doing Business 2019 Liberia
22 Receive inspection from the Liberia Water and Sewer Corporation 1 day no charge
Agency : Liberia Water and Sewer Corporation (LWSC)
The Liberia Water and Sewer Corporation inspects the site to prepare a cost
estimate for the pipes and installation.
23 Obtain water and sewage connection 14 days USD 54
Agency : Liberia Water and Sewer Corporation (LWSC)
Water connections can be made if existing pipelines pass through the
construction site. If that is the case, then the water connection should take 1 -- 2
weeks. The cost for water connection includes LRD 250.00 for the connection
itself and USD 50.00 for the meter. If a water pipeline does not pass through the
area, then BuildCo must buy all the necessary materials to extend an existing
pipeline to the construction site before the connection is made. This will inevitably
add cost and time to the utility connection process.
24 Request and obtain occupancy permit 10 days no charge
Agency : Ministry of Public Works (MPW)
In the recent year the Ministry of Public Works started more rigorously enforcing
the regulations of the Zoning Law. According to article 5. A of the Zoning Law all
new building must obtain an occupancy permit before being used. Stricter
enforcement has led to wider practice by companies to obtain the occupancy
permit. This is issued within 10 days.
25 Register the building at the Probate Court 3 days LRD 300
Agency : Probate Court
This registration of the completed building occurs in two stages. First BuildCo
must register the building with the Probate Court, similar to a notarization
procedure. Registration at the Probate Court takes 3 days and costs LRD
300.00. The case considered here assumes that BuildCo does not employ a
lawyer (lawyer’s fees would amount to USD 250.00). Registration is not required,
but companies do so to increase the resale value.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Liberia
Details – Dealing with Construction Permits in Liberia – Measure of Quality
Answer Score
Building quality control index (0-15) 2.0
Quality of building regulations index (0-2) 0.0
How accessible are building laws and regulations in your economy? (0-1) Not easily 0.0
accessible.
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) 0.0
What types of inspections (if any) are required by law to be carried out during construction? Unscheduled 0.0
(0-2) inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice during
construction;
Mandatory
inspections are
done most of the
time during
construction.
Quality control after construction index (0-3) 0.0
Is there a final inspection required by law to verify that the building was built in accordance Final inspection 0.0
with the approved plans and regulations? (0-2) is not required by
law.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice.
Liability and insurance regimes index (0-2) 0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building No party is held 0.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the
law.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 1.0
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 Being a 0.0
on the ground? (0-2) registered
architect or
engineer.
Page 14Doing Business 2019 Liberia
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
obtaining final supply - Has two stories with a total surface area of approximately 1,300.6 square meters
(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
Cost required to complete each procedure (% of carried out on public land. There is no crossing of other owners’ private property
income per capita) because the warehouse has access to a road.
- 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
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
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
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(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 Liberia
Getting Electricity - Liberia
Standardized Connection
Price of electricity (US cents per kWh) 39.0
Name of utility Liberia Electricity Corporation (LEC)
City Covered Monrovia
Indicator Liberia Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 4 5.2 4.5 3 (25 Economies)
Time (days) 482 112.0 77.2 18 (3 Economies)
Cost (% of income per capita) 3491.7 3456.5 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 0 1.6 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Liberia and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
78.72: Rwanda (Rank: 68)
76.80: Kenya (Rank: 75)
74.02: Ghana (Rank: 86)
49.00: Regional Average (Sub-Saharan Africa)
35.06: Liberia (Rank: 172)
31.70: Sierra Leone (Rank: 178)
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 Liberia
Figure – Getting Electricity in Liberia – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
2500
Cost (% of income per capita)
400
2000
Time (days)
300
1500
200 1000
100 500
0 0
1 2 3 4
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Liberia and comparator economies – Measure of Quality
8
7
6
Index score
5
5
4 4
4
3
2 1.6
1
0 0
0
Liberia Ghana Kenya Rwanda Sierra Leone Sub-Saharan Africa
Page 17Doing Business 2019 Liberia
Details – Getting Electricity in Liberia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to LEC and await estimate 30 calendar days LRD 0
Agency : Liberia Electricity Corporation (LEC), Monrovia
The company has to submit an application letter along with a copy of the
business registration (in the future, also a photo) to the Customer Service
Department. Customer service forwards the application letter to the commercial
manager, who screens the application and forwards it to the Technical
Department.
2 Receive external inspection by LEC 1 calendar day LRD 0
Agency : Liberia Electricity Corporation (LEC), Monrovia
The Technical Department will come out and inspect the premises.The main
purpose of the inspection (as with most business-activity-related inspections in
Liberia) is to prove that the business exists. The inspector will draw sketches of
the location, etc. to determine Liberia Electricity Corporation’s capacity to deliver
power. Inspectors submit a report to their department, which then gets forwarded
to the Commercial Department. Once the Commercial Department approves the
application, it notifies the Computer section to prepare an invoice. Once the
invoice is prepared, it gets sent back to the Commercial Department and they
contact the customer to come pick up the invoice. The customer comes to LEC
and signs a ledger to accept payment invoice.
3 Obtain external works from LEC 75 calendar days USD 8,400
Agency : Liberia Electricity Corporation (LEC), Monrovia
Only Liberia Electricity Corporation (LEC) can carry out the external works. The
utility currently has the material readily available in stock, which has greatly
reduced delays by many months.
The works consist of expanding the overhead network by installing poles, a
transformer and its accessories and extending wires to the warehouse.
4 Obtain internal wiring inspection, meter installation and final connection 376 calendar days USD 4,868.27
from LEC
Agency : Liberia Electricity Corporation (LEC), Monrovia
When the external works have been completed, and the electrician has finished
doing the internal installation, the utility will inspect the wiring and turn on the
supply.
The client will need to pay a security deposit and a registration fee. The cost of
the meter is included in the registration fee.
Security deposit: based on one month of consumption
Registration fee: There is also a registration fee equivalent to 20% of the Bill of
Quantity. When the type of material and the quantity needed has been
determined, and also what needs to be done, and the labor cost, the customer
will be required to pay a registration fee equivalent to 20% of the Bill of Quantity.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Liberia
Details – Getting Electricity in Liberia – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 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? No
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 Liberia
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
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
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.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- 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 Liberia
Registering Property - Liberia
Indicator Liberia Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 10 6.2 4.7 1 (4 Economies)
Time (days) 44 53.9 20.1 1 (New Zealand)
Cost (% of property value) 13.8 7.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 3.5 8.8 23.0 None in 2017/18
Figure – Registering Property in Liberia and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
93.70: Rwanda (Rank: 2)
55.97: Kenya (Rank: 122)
55.54: Ghana (Rank: 123)
52.62: Regional Average (Sub-Saharan Africa)
43.50: Sierra Leone (Rank: 167)
31.09: Liberia (Rank: 182)
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 Liberia – Procedure, Time and Cost
Time (days) Cost (% of property value)
14
40
12
Cost (% of property value)
35
10
30
Time (days)
25 8
20
6
15
4
10
2
5
0 0
1 2 *3 4 5 6 7 8 9 10
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 Liberia
Figure – Registering Property in Liberia and comparator economies – Measure of Quality
30 28.5
25
Index score
20
16.0
15
10 8.0 8.8
6.5
5 3.5
0
Liberia Ghana Kenya Rwanda Sierra Leone Sub-Saharan Africa
Details – Registering Property in Liberia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a Transfer deed form 1 day USD 4
Agency : Shop
The parties obtain a Transfer deed form to provide to the surveyor who will be
surveying that property. At that time, the seller will also provide a copy of the
deed to the new owner. The transfer deed form can be obtained in shops.
2 Buyer contacts a surveyor to survey the property 21 days USD 125
Agency : Private licensed surveyor
One of the requirements before transferring property in Liberia is to conduct a
survey of that property by a licensed surveyor. The potential buyer will contact a
certified surveyor to do the study of the property to be transferred. The property
cannot be surveyed during the notice period. Any person wishing to introduce a
claim of ownership on that property must come forward during the notice period.
If there are no disputes recorded after the notice period, then the surveyor will
conduct the survey of the property with the potential buyer as a witness, and
anyone else who wishes to be present.
3 Publication of survey in newspaper and radio by the surveyor 1 day included in Procedure
Agency : Newspaper/radio 2
By law, the surveyor must inform the public that the survey or re-survey of a
particular property will be conducted on a set date. The notice will also provide
the location of that property. The announcement is published in local newspapers
and is also aired for 15 days. But the law is silent as to the length of this notice.
4 Parties contract a lawyer to start the official transfer process 2 days USD 2,375; (10% -
Agency : Lawyer 15% property value)
The parties give the lawyer the deed on which the licensed surveyor has
sketched the property. The transfer process will then start.
5 Lawyer visits Registry to check the status and ownership of the property 4 days USD 85
Agency : Center for National Documents & Records / National Archives (CNDRA)
The records are kept in ledgers, and the search for ownership is done manually
by checking the ledgers. An application for the search of Deeds/Titles document
is completed. It takes a week for CNDRA to search for the deeds. CNDRA will
contact MOFA in case they do not have the entire file.
6 Lawyer visits Bureau of Internal Revenue of the Ministry of Finance (Real 3 days no charge
Estate Division) to check for outstanding taxes on the property
Agency : Bureau of Internal Revenue at the Ministry of Finance
The Real Estate Tax division will issue an official Tax Receipt evidencing that all
delinquent real property taxes have been paid in full. This Tax Receipt is
mandatory, as of June 1st, 2009 to have the deed probated at the Probate Court.
7 Parties sign the deed form at the lawyer's office 1 day no charge
Agency : Lawyer
Once all verifications are done by the lawyer to ensure that the property is free of
all encumbrances and established the rightful owner of the property, both parties
can now sign the deed, which will be probated at the Probate Court. The deed
must have a vivid description of the building.
8 Lawyer visits Probate Court to request the transfer 7 days no charge
Agency : Probate Court
The lawyer visits the Probate Court to request the transfer (1 business day). The
Court will then publish a notice of the transaction for 4 business days. If there are
no objections, on the fifth business day, the lawyer can pick up the deed with the
seal of approval from the Court. The Probate court rules state that only lawyers
are allowed to submit the deed for probate.
Page 22Doing Business 2019 Liberia
9 Parties register the deed at the Registry 4 days USD 25
Agency : Land Registry
The buyer will complete the Registration Form for Deeds and Titles Documents.
A bill form will be provided at that time and payment is made at the MOF.
Documents to be provided at the time of registration:
1. A copy of the Real Estate Tax receipt (obtained in procedure 6)
2. Flag receipt from the Ministry of Finance as proof of payment
3. Original and Two copies of Bill form
4. Probated Deed
10 Seller goes to Bureau of Internal Revenues to change the owner’s name on 1 day no charge
the property
Agency : Bureau of Internal Revenues
The parties will change the ownership name at the Bureau of Internal Revenues.
It is in the interest of the seller to ensure that the name is adjusted so that the
new owner is responsible for future taxes.
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 Liberia
Details – Registering Property in Liberia – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 0.0
What is the institution in charge of immovable property registration? CENDRA
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Ministry of Lands,
Mines and
Energy
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 1.0
Who is able to obtain information on land ownership at the agency in charge of immovable Only 0.0
property registration in the largest business city? intermediaries
and interested
parties
Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5
publicly available–and if so, how? boards
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.cndra.
gov.lr/CSC-
COST.php?
main=30&related
=30&pg=mp
Does the agency in charge of immovable property registration commit to delivering a legally Yes, in person 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— No 0.0
and if so, how?
Link for online access:
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