Haiti Economy Profile - Doing Business 2019

 
Haiti Economy Profile - Doing Business 2019
Doing Business 2019   Haiti

                              Economy Profile

                                Haiti

                                                Page 1
Haiti Economy Profile - Doing Business 2019
Doing Business 2019       Haiti

                                               Economy Profile of Haiti

                                          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 2
Doing Business 2019           Haiti

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 3
Doing Business 2019                Haiti

         Ease of Doing Business in                                                                                              DB 2019 Rank
                                                Region                 Latin America & Caribbean
                                                                                                                190                                        1
                  Haiti
                                                Income Category        Low income                                       182
                                                                                                                        DB 2019 Ease of doing business score
                                                Population             10,981,229
                                                                                                                 0                               100

                                                City Covered           Port au Prince                                                 38.52

                                                             DB 2019 Ease of Doing Business Score

                       0                                                                                                                 100
                                                                                                     69.46: Puerto Rico (U.S.) (Rank: 64)

                                                                                                   67.47: Jamaica (Rank: 75)

                                                                                          61.12: Dominican Republic (Rank: 102)

                                                                                        58.97: Regional Average (Latin America & Caribbean)

                                                                                    55.57: Guyana (Rank: 134)

                                                               38.52: Haiti (Rank: 182)

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 - Haiti

         1

         28

         55

         82                                                                                                                      86
 Rank

        109
                                                                                                                                                 124

        136                                    142
                                                                                                                147

        163                                                                                                                                                      168
                               180                              181             178
                189                                                                             188
        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 - Haiti

        100

        80                                                                                                                      76.90

                                                                                                                57.58
Score

        60                                    56.26
                                                                                                                                                 52.49
                              44.15
        40     33.80                                           32.34

                                                                                               21.67
        20
                                                                               10.00

                                                                                                                                                                  0.00
         0

              Starting       Dealing          Getting        Registering      Getting        Protecting        Paying          Trading         Enforcing        Resolving
                 a            with           Electricity      Property        Credit          Minority         Taxes           across          Contracts       Insolvency
              Business     Construction                                                      Investors                         Borders
                             Permits

                                                                                                                                                                            Page 4
Doing Business 2019           Haiti

     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 5
Doing Business 2019         Haiti

Starting a Business - Haiti

  Standardized Company

 Legal form                                                             Société Anonyme

 Paid-in minimum capital requirement                                    HTG 6,250

 City Covered                                                           Port au Prince

  Indicator                                             Haiti              Latin America          OECD high              Best Regulatory
                                                                           & Caribbean            income                 Performance

 Procedure – Men (number)                              12                  8.2                   4.9                   1 (New Zealand)

 Time – Men (days)                                     97                  28.5                  9.3                   0.5 (New Zealand)

 Cost – Men (% of income per capita)                   200.3               37.8                  3.1                   0.0 (Slovenia)

 Procedure – Women (number)                            12                  8.2                   4.9                   1 (New Zealand)

 Time – Women (days)                                   97                  28.5                  9.3                   0.5 (New Zealand)

 Cost – Women (% of income per capita)                 200.3               37.8                  3.1                   0.0 (Slovenia)

 Paid-in min. capital (% of income per capita)         12.4                1.5                   8.6                   0.0 (117 Economies)

 Figure – Starting a Business in Haiti and comparator economies – Ranking and Score

                                                    DB 2019 Starting a Business Score

       0                                                                                           100

                                                                                            97.35: Jamaica (Rank: 6)

                                                                                       91.23: Puerto Rico (U.S.) (Rank: 53)

                                                                                  85.61: Guyana (Rank: 97)

                                                                                 83.44: Dominican Republic (Rank: 117)

                                                                           79.40: Regional Average (Latin America & Caribbean)

                                       33.80: Haiti (Rank: 189)

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 6
Doing Business 2019   Haiti

  Figure – Starting a Business in Haiti – Procedure, Time and Cost

                                                   Time (days)        Cost (% of income per capita)
                                                                                                                                        70

                                                                                                                                        60

                                                                                                                                             Cost (% of income per capita)
               80

                                                                                                                                        50
 Time (days)

               60
                                                                                                                                        40

               40                                                                                                                       30

                                                                                                                                        20
               20
                                                                                                                                        10

               0                                                                                                                        0
                    1    2       3          4         5          *6        *7         *8        *9         * 10      * 11       * 12
                                                              Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                             Page 7
Doing Business 2019             Haiti

Details – Starting a Business in Haiti – Procedure, Time and Cost

No.     Procedures                                                                                      Time to Complete      Associated Costs

1       Prepare the company's articles and memorandum of association                                    10 days               HTG 30,000
        Agency : Lawyer
        The lawyer charges approximately HTG 30,000 for the drafting of the company statutes
        in the case of a Société Anonyme. Prices can vary depending on the lawyer.

2       Notarize the company deeds and articles of association                                          7 days                HTG 15,000 - HTG
        Agency : Notary                                                                                                       25,000
        The notary public must hand-write and notarize the documents at a fee of between HTG
        15,000 and HTG 25,000 depending on the complexity of the service.

3       Deposit the legally required initial capital in the National Bank and obtain                    1 day                 no charge
        deposit evidence
        Agency : National Bank
        The lawyer deposits the legally required initial capital in the National Bank (Banque
        Nationale de Credit) and obtains proof of deposit. A certified check need to be used to
        pay in the National Bank, where proof of payment is provided.

4       Register the company with the Tax Authorities (Direction Générale des                           1 day                 included in the notary
        Impôts - DGI)                                                                                                         fees
        Agency : Tax Authorities (Direction Générale des Impôts - DGI)
        The notary pays the registration fees at the Tax Office (DGI) and proof of payment is
        obtained.

5       Registration with the Commercial Registry at the Ministry of Commerce and                       78 days on average    HTG 225 (frais de
        Industry and obtain the authorization of operations (Droit de                                                         dossier) + HTG 25
        fonctionnement)                                                                                                       (vignette bleue) +
        Agency : Ministry of Commerce and Industry and Le Moniteur (Journal Officiel)                                         HTG 30,000 for
        Lawyer submits the dossier for registration at the Ministry of Commerce and a request for
                                                                                                                              publication in Le
        the ‘avis de fonctionnement’.
                                                                                                                              Moniteur (10-24
        When the Ministry of Commerce has processed the application and registered the
                                                                                                                              pages)
        company, it forwards the file to the Moniteur for publication.
        Firms can begin operations before the publication, as soon as they receive authorization
        from the Ministry of Commerce.
        Since May 2009, the company’s articles of incorporation do not need to be approved by
        the Prime Minister’s office and the Presidency before they can be published in the
        Official Journal. This process takes about 60 days.
        The cost depends on the number of pages of the act of constitution:
        2 to 9 pages: HTG 5,000
        10 to 25 pages: HTG 20,000
        26 to x pages: HTG 35,000.

    6   Obtain the Tax ID number (Numéro d’identification fiscale - NIF) from the                       15 days               HTG 50 (tax ID card)
        Tax authorities (DGI), pay fees, and obtain the business license (patente)                      (simultaneous with    + 2% of initial capital
        Agency : Tax Authorities (Direction Générale des Impôts - DGI)                                  previous procedure)   + 0.3% per share +
        The company must file a form at the Tax Bureau (DGI) and provide an opening balance                                   HTG 102 (droit de
        sheet on which corporate taxes will be based. A 2% tax is levied on a corporation’s initial
                                                                                                                              fonctionnement) +
        capital, payable annually. A company must pay the “tax on share” (taxe sur action) of
                                                                                                                              HTG 5 (taxe carte
        0.3% per share, which will be assessed each year, and a "right of operating" tax (droit de
                                                                                                                              d’identite
        fonctionnement) of HTG 1500 payable annually, and HTG 1500 5 to obtain the
                                                                                                                              professionelle)
        professional identity card ("carte d’identite professionelle").

    7   Obtain the Professional ID (Carte d’Identité Professionelle) from the                           17 days on average    cost included in
        Ministry of Commerce and Industry                                                               (simultaneous with    procedure 5
        Agency : Ministry of Commerce and Industry                                                      previous procedure)
        According to Article 2 of the “Décret du 26 septembre 1960 réglementant l’exercice de la
        profession de commercant”, all commercial entities are required to hold a “carte
        d’identité professionnelle”. After the payment of fees at the DGI and obtaining the
        business permit ("certificat de patente"), the entrepreneur will obtain the “carte d’identité
        professionnelle” at the Ministry of Commerce.

    8   Obtain special commercial books                                                                 2 days                HTG 5,000
        Agency : Commercial Registry                                                                    (simultaneous with
        The special commercial books are purchased and prepared by an accountant.                       previous procedure)

    9   Notification of employee registration to the Labor Ministry                                     1 day (simultaneous   no charge
        Agency : Labor Ministry                                                                         with previous
        Companies must submit a declaration on the hiring of personnel to the Labor Direction           procedure)
        within 8 days of opening.

        Legalize the commercial books                                                                   7 days                HTG 1,000
10      Agency : Court                                                                                  (simultaneous with
        Books are legalized by the Dean of the first instance court (Doyen du Tribunal). Each           previous procedure)
        page must be sealed by the Dean of the civil court and the books must be sealed at the
        DGI (Direction Generale des Impots).
                                                                                                                                                        Page 8
Doing Business 2019           Haiti

      Register for social security (OFATMA)                                                       1 day (simultaneous   no charge
11    Agency : Insurance Office (Office d'Assurance Accidents du Travail, Maladie et              with previous
      Maternité - OFATMA)                                                                         procedure)
      The company must register with the Insurance Office for Occupational Injury, Sickness,
      and Maternity (OFATMA) within 15 days of opening and provide the names of all its
      employees (up to 6% of monthly salary is contributed by the employer to social security).

      Register for Retirement Insurance Office (ONA)                                              1 day (simultaneous   no charge
12    Agency : Retirement Office (Office Nationale d'Assurance - ONA)                             with previous
      The company must register with the Retirement Insurance Office (ONA) within 15 days         procedure)
      of opening and provide the name of all its employees.

Takes place simultaneously with previous procedure.

                                                                                                                                    Page 9
Doing Business 2019              Haiti

     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
  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 10
Doing Business 2019         Haiti

Dealing with Construction Permits - Haiti

       Standardized Warehouse

    Estimated value of warehouse                                              HTG 2,518,394.70

    City Covered                                                              Port au Prince

       Indicator                                          Haiti                   Latin America             OECD high          Best Regulatory
                                                                                  & Caribbean               income             Performance

    Procedures (number)                                   14                     15.4                    12.7                  None in 2017/18

    Time (days)                                           98                     199.0                   153.1                 None in 2017/18

    Cost (% of warehouse value)                           20.9                   3.2                     1.5                   None in 2017/18

    Building quality control index (0-15)                 5.0                    8.9                     11.5                  15.0 (3 Economies)

  Figure – Dealing with Construction Permits in Haiti and comparator economies – Ranking and Score

                                                 DB 2019 Dealing with Construction Permits Score

                    0                                                                                       100

                                                                           70.71: Jamaica (Rank: 76)

                                                                           70.42: Dominican Republic (Rank: 80)

                                                                    63.48: Regional Average (Latin America & Caribbean)

                                                                 59.38: Puerto Rico (U.S.) (Rank: 141)

                                                          54.75: Guyana (Rank: 164)

                                                  44.15: Haiti (Rank: 180)

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 Haiti – Procedure, Time and Cost

                                                      Time (days)           Cost (% of warehouse value)
                                                                                                                                                    9

                                                                                                                                                    8   Cost (% of warehouse value)
               80
                                                                                                                                                    7

                                                                                                                                                    6
 Time (days)

               60
                                                                                                                                                    5

                                                                                                                                                    4
               40
                                                                                                                                                    3

               20                                                                                                                                   2

                                                                                                                                                    1

               0                                                                                                                                    0
                        1   *2   3           4    5        6           7         8         9           10         11    * 12       13       14
                                                                   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 11
Doing Business 2019                        Haiti

Figure – Dealing with Construction Permits in Haiti and comparator economies – Measure of Quality

              15
                                                         13.0
                                                                                                            12.0                    12.0

Index score
              10                                                                                                                                             8.9

                                5.0
                  5                                                                4.0

                  0

                               Haiti             Dominican Republic              Guyana                   Jamaica             Puerto Rico (U.S.)   Latin America & Caribbean

Details – Dealing with Construction Permits in Haiti – Procedure, Time and Cost

  No.                 Procedures                                                                                      Time to Complete             Associated Costs

1                     Request and obtain a Soil Test                                                                  18 days                      USD 2,100
                      Agency : Private Firm
                      The National Building Code of Haiti provides specifications for the strength of the
                      foundation of buildings to resist seismic activities and shrinkage. Therefore, a soil test is
                      needed to identity the type of soil so that the foundation is solid.

              2       Obtain a topographical map                                                                      7 days                       USD 750
                      Agency : Private land surveyor
                      The National Building Code of Haiti provides information on the importance of having a
                      topographic map of the land so that it can be preserved.

3                     Request building permit                                                                         30 days                      HTG 195,090
                      Agency : Municipality and the Ministry of Public Works
                      The Ministry of Public Works does not issue the building permit, but studies the file and
                      provides technical advice/approval of the plans. The Engineering Department will merely
                      give its advice on the feasibility of the project. The building permit is issued by the
                      Municipality. According to the law, the building permit fee for a commercial warehouse
                      is HTG 75.00 for the length of the building facing the road multiplied by the number of
                      floors. If the building has 2 sides facing the road, then both sides are taken into account
                      and charged accordingly. However, in practice, this is not followed.

                      The Municipality generally charges between HTG 125.00 -- HTG 175.00 per sq. m.
                      Thus, the fee for the Doing Business case study warehouse would be approximately HTG
                      150.00 x 1,300.6 sq. m. -- this is called “le droit d’alignement.”

                      BuildCo must submit the following documents when requesting the permit:
                      • Survey plan and title of ownership (3 copies)
                      • Location plan (3 copies)
                      • Facade plan (3 copies)
                      • Construction (foundation, electricity, plumbing) (3 copies)
                      • Specifications sheet
                      • License of the engineers or Corporate Income Tax (1 copy) – proof that the engineer or
                      the construction company has no outstanding taxes
                      • Letter of Authorization Request (1 copy)

4                     Obtain site inspection by engineer from the Municipality                                        1 day                        no charge
                      Agency : Municipality
                      A request is made for a site inspection. The owner or the engineer must be at the site for
                      the inspection. After this inspection and within 15 days, the Municipality will issue a
                      “Bordereau de paiement” to be paid at the tax authority (DGI). If the amount is over HTG
                      15,000.00, it must be paid by certified check.

5                     Pay fees to the Direction Generale des Impots                                                   15 days                      no charge
                      Agency : Direction Generale des Impots
                      Payment is made at the DGI and proof of payment is delivered back to the Municipality.
                      The fees for the building permit are recorded in procedure 1.

6                     Obtain building permit                                                                          1 day                        no charge
                      Agency : Municipality
                      Once the application has been reviewed by the Mayor, payment of the alignment rights is
                      made and the proof of payment submitted to the Mayor, and if the file meets all the
                      requirements, the City will issue the building permit.

7                     Receive inspection to verify the set-out and the foundation                                     1 day                        no charge
                      Agency : Municipality
                      By law (art. 1.2.3 of the Building Code) the Municipality must verify the set-out and the
                      foundation. However in reality, this inspection does not take place.

                                                                                                                                                                               Page 12
Doing Business 2019            Haiti

8     Receive inspection for the walls and the quality of materials used                             1 day     no charge
      Agency : Municipality
      By law (art. 1.2.3 of the Building Code) the Municipality must verify the raising of the
      walls and the quality of the material used for the construction. However in reality, this
      inspection does not take place.

9     Receive inspection for the verification of the roof slabs                                      1 day     no charge
      Agency : Municipality
      By law (art. 1.2.3 of the Building Code) the Municipality must verify the roof slap.
      However in reality, this inspection does not take place.

10    Receive final inspection                                                                       1 day     no charge
      Agency : Municipality
      By law (art. 1.2.6 of the Building Code) the Municipality must conduct a final inspection
      and then deliver a certificate of conformity. However, in practice this does not take place.

11    Obtain the occupancy certificate                                                               7 days    no charge
      Agency : Municipality
      The certificate of occupancy is issued after the final inspection; however in practice it is
      rarely done. Obtaining the certificate of conformity is the responsibility of the builder.

      Request water connection from the National Direction of Potable Water and                      1 day     no charge
12    Sewage (Direction Nationale de l’Eau Potable et de l'Assainissement-
      DINEPA)
      Agency : Offices Régionaux d’Eau Potable et d’Assainissement (OREPA)
      The water connection is requested directly by the owner, as the contract must be made in
      the owner's name.

13    Receive inspection for water connection and cost estimate                                      1 day     no charge
      Agency : Offices Régionaux d’Eau Potable et d’Assainissement (OREPA)
      The customer service center will process the application and forward it to the technical
      department, which will then inspect the construction site to prepare a cost estimate of the
      work for the water connection.

14    Obtain water connection from the National Direction of Potable Water and                       21 days   USD 2,166
      Sewage (Direction Nationale de l’Eau Potable et de l'Assainissement-
      DINEPA)
      Agency : Offices Régionaux d’Eau Potable et d’Assainissement (OREPA)
      The cost of connection to the water depends on the width of the pipe used. The size of the
      pipe in the Doing Business case study is assumed to be 1 inch. Therefore the cost is HTG
      6,640 (USD 116). And since a septic tank must be installed, the cost of the installation is
      also included at USD 2,000.

Takes place simultaneously with previous procedure.

                                                                                                                           Page 13
Doing Business 2019         Haiti

Details – Dealing with Construction Permits in Haiti – Measure of Quality

                                                                                                      Answer               Score

Building quality control index (0-15)                                                                                      5.0

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.

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)                                                                            1.0

  What types of inspections (if any) are required by law to be carried out during construction?       Inspections at       1.0
  (0-2)                                                                                               various phases.

  Do legally mandated inspections occur in practice during construction? (0-1)                        Mandatory            0.0
                                                                                                      inspections are
                                                                                                      not always done
                                                                                                      in practice during
                                                                                                      construction.

Quality control after construction index (0-3)                                                                             2.0

  Is there a final inspection required by law to verify that the building was built in accordance     Yes, final           2.0
  with the approved plans and regulations? (0-2)                                                      inspection is
                                                                                                      done by
                                                                                                      government
                                                                                                      agency; Final
                                                                                                      inspection 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)                                                                                    0.0

  What are the qualification requirements for the professional responsible for verifying that the     University degree    0.0
  architectural plans or drawings are in compliance with existing building regulations? (0-2)         in architecture or
                                                                                                      engineering.

  What are the qualification requirements for the professional who supervises the construction        University degree    0.0
  on the ground? (0-2)                                                                                in engineering,
                                                                                                      construction or
                                                                                                      construction
                                                                                                      management.

                                                                                                                                   Page 14
Doing Business 2019              Haiti

     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 15
Doing Business 2019           Haiti

Getting Electricity - Haiti

  Standardized Connection

 Price of electricity (US cents per kWh)                                    22.7

 Name of utility                                                            Electricité d’Haiti (EdH)

 City Covered                                                               Port au Prince

  Indicator                                                Haiti                Latin America           OECD high        Best Regulatory
                                                                                & Caribbean             income           Performance

 Procedures (number)                                      4                     5.5                  4.5                3 (25 Economies)

 Time (days)                                              60                    65.5                 77.2               18 (3 Economies)

 Cost (% of income per capita)                            3242.8                946.3                64.2               0.0 (3 Economies)

 Reliability of supply and transparency of tariff         0                     4.3                  7.5                8.0 (27 Economies)
 index (0-8)

 Figure – Getting Electricity in Haiti and comparator economies – Ranking and Score

                                                        DB 2019 Getting Electricity Score

        0                                                                                               100

                                                                           73.43: Puerto Rico (U.S.) (Rank: 88)

                                                                         70.59: Regional Average (Latin America & Caribbean)

                                                                    64.96: Jamaica (Rank: 115)

                                                                    64.65: Dominican Republic (Rank: 116)

                                                              56.26: Haiti (Rank: 142)

                                                    45.91: Guyana (Rank: 165)

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 16
Doing Business 2019        Haiti

  Figure – Getting Electricity in Haiti – Procedure, Time and Cost

                                                          Time (days)      Cost (% of income per capita)
                   60                                                                                                                              1800

                                                                                                                                                   1600

                                                                                                                                                          Cost (% of income per capita)
                   50
                                                                                                                                                   1400

                   40                                                                                                                              1200
 Time (days)

                                                                                                                                                   1000
                   30
                                                                                                                                                   800

                   20                                                                                                                              600

                                                                                                                                                   400
                   10
                                                                                                                                                   200

                   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 Haiti and comparator economies – Measure of Quality

                   8
                   7
                   6
     Index score

                                                                                           5
                   5                                                                                                                         4.3
                                            4
                   4
                                                                                                                  3
                   3
                   2
                   1
                         0                                          0
                   0

                        Haiti        Dominican Republic          Guyana                  Jamaica           Puerto Rico (U.S.)       Latin America & Caribbean

                                                                                                                                                                                          Page 17
Doing Business 2019             Haiti

Details – Getting Electricity in Haiti – Procedure, Time and Cost

No.     Procedures                                                                                     Time to Complete   Associated Costs

1       Hire private contractor to apply for connection and await estimate of                          10 calendar days   USD 400
        connection fees
        Agency : Electricité d'Haïti
        External works can be carried out by Electricité d'Haïti (EDH) or by a private contractor
        provided they have obtained the utility’s approval. The final connection however, is
        always done by the utility.
        The common approach is to hire a private contractor (a list of these is available at the
        utility) to save time and because the utility often lacks the necessary material.

        The client can also either submits the application for connection themselves or ask their
        contractor to do so on their behalf.
        • Request of connection can be done in two ways:By letter from the company head
        • In person at one of the centers or agencies offering the utility’s services

    2   Receive external site inspection by Electricité d'Haïti (EDH)                                  1 calendar day     HTG 859,792.84
        Agency : Electricité d'Haïti
        The utility then inspects the site and prepares an estimate of the connection fees:
        • An estimate for the construction of the Low-Voltage of Medium-Voltage line and of the
        unit substation
        • An estimate for the construction of the metering system

3       Obtain external works from private contractor                                                  30 calendar days   USD 7,500
        Agency : Private firm
        The private contractor discusses with the client about the technical details of the works
        (capacity, voltage, etc.) and submits the design to the utility for approval. The contractor
        also prepares an estimate of the fees for the construction of the lines and unit substation.
        The contractor will also need to write to the utility to obtain approval to work on the
        network.

4       Request meter installation and final connection from EDH                                       20 calendar days   HTG 250,000
        Agency : Electricité d'Haïti
        Once the works have been completed the client requests meter installation from
        Electricité d'Haïti (EDH).
        No inspection of the entire internal wiring is carried out during the process.
        For capacities below 300 kVA, the utility normally has the meters (and current
        transformers) in stock.

Takes place simultaneously with previous procedure.

                                                                                                                                             Page 18
Doing Business 2019           Haiti

 Details – Getting Electricity in Haiti – Measure of Quality

                                                                                                                            Answer

 Reliability of supply and transparency of tariff index (0-8)                                                              0

 Total duration and frequency of outages per customer a year (0-3)                                                         0

    System average interruption duration index (SAIDI)                                                                     ..

    System average interruption frequency index (SAIFI)                                                                    ..

    What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI             N/A

 Mechanisms for monitoring outages (0-1)                                                                                   0

    Does the distribution utility use automated tools to monitor outages?                                                  No

 Mechanisms for restoring service (0-1)                                                                                    0

    Does the distribution utility use automated tools to restore service?                                                  No

 Regulatory monitoring (0-1)                                                                                               0

    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of      No
    supply?

 Financial deterrents aimed at limiting outages (0-1)                                                                      0

    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages              No
    exceed a certain cap?

 Communication of tariffs and tariff changes (0-1)                                                                         1

    Are effective tariffs available online?                                                                                Yes

    Link to the website, if available online                                                                               http://www.edh.ht/tari
                                                                                                                           f.php

    Are customers notified of a change in tariff ahead of the billing cycle?                                               Yes

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

                                                                                                                                                    Page 19
Doing Business 2019           Haiti

     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 20
Doing Business 2019      Haiti

Registering Property - Haiti

       Indicator                                             Haiti                 Latin America      OECD high     Best Regulatory
                                                                                   & Caribbean        income        Performance

    Procedures (number)                                     5                     7.2                4.7            1 (4 Economies)

    Time (days)                                             312                   63.3               20.1           1 (New Zealand)

    Cost (% of property value)                              6.8                   5.8                4.2            0.0 (Saudi Arabia)

    Quality of the land administration index (0-30)         2.5                   11.9               23.0           None in 2017/18

  Figure – Registering Property in Haiti and comparator economies – Ranking and Score

                                                         DB 2019 Registering Property Score

                     0                                                                                    100

                                                                       65.73: Dominican Republic (Rank: 77)

                                                                57.48: Guyana (Rank: 117)

                                                             55.25: Regional Average (Latin America & Caribbean)

                                                            53.61: Jamaica (Rank: 131)

                                                      46.14: Puerto Rico (U.S.) (Rank: 159)

                                          32.34: Haiti (Rank: 181)

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 Haiti – Procedure, Time and Cost

                                                         Time (days)         Cost (% of property value)
                                                                                                                                         4.5
               300
                                                                                                                                         4

                                                                                                                                               Cost (% of property value)
               250
                                                                                                                                         3.5

                                                                                                                                         3
               200
 Time (days)

                                                                                                                                         2.5
               150
                                                                                                                                         2

               100                                                                                                                       1.5

                                                                                                                                         1
               50
                                                                                                                                         0.5

                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 21
Doing Business 2019                        Haiti

Figure – Registering Property in Haiti and comparator economies – Measure of Quality

              30

              25
Index score
              20
                                                         14.5                                               14.0                  13.5
              15
                                                                                                                                                          11.9
              10
                                                                                   7.0
                  5             2.5

                  0

                               Haiti             Dominican Republic             Guyana                    Jamaica           Puerto Rico (U.S.)   Latin America & Caribbean

Details – Registering Property in Haiti – Procedure, Time and Cost

  No.                 Procedures                                                                                       Time to Complete          Associated Costs

1                     Obtain authorization to conduct a property survey                                                60 days                   no charge
                      Agency : Court of First Instance (Tribunal de Première Instance de la Commune)
                      For conducting the property survey required in Procedure 2, it is necessary to obtain an
                      authorization from the Court of First Instance (Tribunal de première instance de la
                      commune) where the property is located, and the authorization of the “Commissaire du
                      government”. For obtaining the approval, it is necessary to present a complete file that
                      will include the bill of sale of the property as well as the previous survey. Legal basis: Art
                      22 Decree of February 26, 1975 about the land survey.

2                     Survey of property                                                                               26 days                   HTG 15,000; (The
                      Agency : Land surveyor (arpenteur-géomètre)                                                                                cost of the survey of
                      A survey of the property is required every 10 years, but In practice due to land insecurity,                               the property depends
                      the notaries request a survey that dates no more than 3 years. A public surveyor does the                                  on the area:
                      survey in question for a specific commune. Because of the issues related to possession
                                                                                                                                                 HTG 10,000.00: 0 to
                      and ownership of real estate in Haiti, most buyers choose to have a survey of the property
                                                                                                                                                 500 m2
                      they are purchasing. All persons whose property shares a common border with the
                                                                                                                                                 HTG 15,000.00: 500
                      property will be invited to witness the survey. Any person present can request a
                      procedure before a judge of peace of the civil tribunal which decides on whether the                                       to 1000 m2
                      transaction can proceed or not. His decision is subject to appeal.                                                         HTG 25,000.00: 1/2
                                                                                                                                                 tile
                                                                                                                                                 HTG 50,000.00: 1
                                                                                                                                                 tile)

              3       Notary public prepares the sale agreement                                                        18 days                   HTG 50,367.89;
                      Agency : Notary                                                                                                            (Notary fees: 2% of
                      The titles are deposited with the notary public, who will prepare the bill of sale.                                        the property value)
                      By law, notary fees are set to 1%. However, the ASNOP (Notary Association of Port-au-
                      Prince) charges typically 2% of sale price.
                      The notary collects the fees and taxes and directly pays the different State Agencies.
                      The seller pays the added value tax (VAT), but it is held by the notary public until the
                      notary decides to transfer the amount to the “Direction Générale des Impôts” (DGI). In
                      no event shall the notary remain in his possession the VAT for more than thirty ( 30) days
                      after the operation (Art 105 Decree of 29 September 2005 amending that of 29 September
                      1986 relating to income tax).

                      VAT is according to the following categories:
                      (i) For the sale of property by a limited liability corporation (Societe Anonyme), the rate
                      is 15% of the sale price
                      (ii) For the sale of land without building or house, the rate is 10%, after applying a
                      discount of 25 % on sale price.
                      (iii) For the sale of any property were construction was built after the land was bought the
                      rate is 2.5% of the sale price.
                      (iv) For the sale of land from an allotment the rate is 4 %.
                      (v) For the sale of any property including land and building were improvements or
                      transformations have been made, the rate is 10% after applying a discount of 50 % on the
                      sale price.
                      (vi) For the sale of building or house built on state land when sailing according to the
                      laws, the rates are 2.5% of the sale price.

                                                                                                                                                                             Page 22
Doing Business 2019            Haiti

4     Obtain avis de cotisation and pay for registration                                             1 day      HTG 106,993.93;
      Agency : Commercial bank                                                                                  (Fixed fee (droit fixe)
      In order to submit the sale agreement for registration, an “avis de cotisation” is prepared               of HTG 2;
      by the DGI, calculating and writing manually on the side of the sale Act the amount to be                 3% of property value
      paid. The sale act should be handwritten, but the DGI accepts copies written with a PC
                                                                                                                (enregistrement);
      with the “handwritten” style (for transfers between individuals or firms).
                                                                                                                1% of property value
      The avis de cotisation is typed with a typewriter on an official form (3 copies). The
                                                                                                                (transcription);
      notary keeps the top of the form, and the bottom is left to the DGI. The fees are the
      following:                                                                                                certificate fee (droit
      (i) Montant principal: Droit fixe: HTG 2 ; droit d’enregistrement: 3% of sale price; droit                de certificat) HTG
      de transcription: 1% of sale price; droit d’ecriture: HTG 6 per each group of 25 lines (or                2.5;
      fraction)                                                                                                 deed fee (droit
      (ii) droit de certificat: HTG 2.5                                                                         d'ecriture) HTG 6;
      (iii) taxe suplementaire: 1% of the amount paid in droit d’enregistrement and droit de                    supplementary tax:
      transcription + 1 gourde                                                                                  HTG 1 + 1% of the
      (iv) droit special ad-valorem: 0.2% of the fees and taxes paid to the Tax Authority (DGI)                 cost of
      (v) droit proportionnel du timbre: 0.2% of the property value + HTG 1                                     enregistrement and
                                                                                                                transcription (Taxe
      Once the avis is prepared, the notary pays the amount at the BRH (Banque de la
                                                                                                                supplementaire);
      Republique d’Haiti) in the DGI, and the bank signs the Avis de cotisation.
                                                                                                                0.2% of the fees and
                                                                                                                taxes paid to the Tax
                                                                                                                Authority (DGI) (droit
                                                                                                                special ad-valorem);
                                                                                                                0.2% of the property
                                                                                                                value + HTG 1 (droit
                                                                                                                proportionnel du
                                                                                                                timbre))

5     The sale agreement is recorded and transcribed at the Tax Authority (DGI)                      225 days   Fee: 3% + 1% of the
      Agency : Tax Authority (Direction Générale des impôts)                                                    property value,
      Transfer tax is set in article 142 of the « loi du 28 septembre 1977 sur l'enregistrement et              already paid in
      la conservation fonciere ». The notary has received the funds for the procedure before                    procedure 4
      and realizes the follow-up. A one-month frame is established by law for the notary to
      transfer said funds collected on behalf of the state to the Direction Generale des Impots.

      With the avis de cotisation signed by the bank, the notary can submit the dossier to be
      recorded at the records office of the Direction Generale des Impots. The registrar will
      write with a pen on the Acte de vente: the Number of the avis de cotisation and the date
      of payment. The notary keeps the original of the avis de cotisation.
      The transfer is then registered by hand in a book (“Repertoire d’entrée”). The sale act is
      later sent to the Bureau de Transciption, where employees copy by hand the sale act into
      books. Once the sale act has been copied, it is returned to the notary.

      Local branches of the DGI in the country (“bureaux deconcentres”) send the information
      to the central office for registration.

Takes place simultaneously with previous procedure.

                                                                                                                                          Page 23
Doing Business 2019          Haiti

Details – Registering Property in Haiti – Measure of Quality

                                                                                                    Answer             Score

Reliability of infrastructure index (0-8)                                                                              0.0

  What is the institution in charge of immovable property registration?                             Tax Authority
                                                                                                    (Direction
                                                                                                    Générale des
                                                                                                    Impôts)

  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:         National
                                                                                                    Cadastre Office
                                                                                                    (Office National
                                                                                                    du Cadastre)

  In what format are the majority of maps of land plots kept in the largest business city—in a      Paper              0.0
  paper format or in a computerized format (scanned or fully digital)?

  Is there an electronic database for recording boundaries, checking plans and providing            No                 0.0
  cadastral information (geographic information system)?

  Is the information recorded by the immovable property registration agency and the cadastral       Separate           0.0
  or mapping agency kept in a single database, in different but linked databases or in separate     databases
  databases?

  Do the immovable property registration agency and cadastral or mapping agency use the             No                 0.0
  same identification number for properties?

Transparency of information index (0–6)                                                                                0.0

  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, in person     0.0
  publicly available–and if so, how?

  Link for online access:

  Is the applicable fee schedule for any property transaction at the agency in charge of            Yes, in person     0.0
  immovable property registration in the largest business city made publicly available–and if
  so, how?

  Link for online access:

  Does the agency in charge of immovable property registration commit to delivering a legally       No                 0.0
  binding document that proves property ownership within a specific time frame–and if so, how
  does it communicate the service standard?

  Link for online access:

  Is there a specific and separate mechanism for filing complaints about a problem that             No                 0.0
  occurred at the agency in charge of immovable property registration?

  Contact information:

  Are there publicly available official statistics tracking the number of transactions at the       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—          Yes, in person     0.0
  and if so, how?

  Link for online access:
                                                                                                                               Page 24
You can also read