Solomon Islands Economy Profile - Doing Business 2019
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Doing Business 2019 Solomon Islands
Economy Profile
Solomon Islands
Page 1
Doing Business 2019 Solomon Islands
Economy Profile of Solomon Islands
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Solomon Islands
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Solomon Islands
Ease of Doing Business in DB 2019 Rank
Region East Asia & Pacific
190 1
Solomon Islands
Income Category Lower middle income 115
DB 2019 Ease of doing business score
Population 611,343
0 100
City Covered Honiara 59.17
DB 2019 Ease of Doing Business Score
0 100
80.13: Australia (Rank: 18)
63.41: Regional Average (East Asia & Pacific)
59.17: Solomon Islands (Rank: 115)
51.62: Marshall Islands (Rank: 150)
49.07: Kiribati (Rank: 158)
48.99: Micronesia, Fed. Sts. (Rank: 160)
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 - Solomon Islands
1
28 38
53
55
82 92
Rank
98 99
110
109
136 144
154 156
160
163
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 - Solomon Islands
100
85.52 83.81
80 73.60 72.58
Score
60 53.45
50.00 50.00
47.38
43.49
40
31.88
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Solomon Islands
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
• Each procedure starts on a separate day (2 capita.
procedures cannot start on the same day) - Does not qualify for investment incentives or any special benefits.
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
document is received The owners:
• No prior contact with officials - Have reached the legal age of majority. If there is no legal age of majority, they are
assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Solomon Islands
Starting a Business - Solomon Islands
Standardized Company
Legal form Limited Liability Company
Paid-in minimum capital requirement SBD 0
City Covered Honiara
Indicator Solomon East Asia & OECD high Best Regulatory
Islands Pacific income Performance
Procedure – Men (number) 7 6.8 4.9 1 (New Zealand)
Time – Men (days) 9 25.9 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 28.1 17.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 7 6.9 4.9 1 (New Zealand)
Time – Women (days) 9 26.0 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 28.1 17.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 4.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Solomon Islands and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
96.47: Australia (Rank: 7)
88.64: Marshall Islands (Rank: 75)
85.52: Solomon Islands (Rank: 98)
83.29: Regional Average (East Asia & Pacific)
78.20: Kiribati (Rank: 149)
69.56: Micronesia, Fed. Sts. (Rank: 170)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Solomon Islands
Figure – Starting a Business in Solomon Islands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
9 18
8 16
Cost (% of income per capita)
7 14
6 12
Time (days)
5 10
4 8
3 6
2 4
1 2
0 0
1 2 *3 4 *5 *6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Solomon Islands
Details – Starting a Business in Solomon Islands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain approval of the company name from the Ministry of Commerce 1 day No charge
Agency : Ministry of Commerce
Prior to registration of the company, the entrepreneur check the name of the
company. The name search and the reservation of a name for a limited liability
company can be done online with minutes.
2 Register the company with the Registrar of Companies 2 days on average included in procedure
Agency : Registrar of companies 3
Registration can be done online via Company Haus’s website
(http://www.companyhaus.gov.sb). Entrepreneurs have the option to register the
company using the computer terminal at the Company Haus on Mendana
Avenue with the assistance from the staffs.
3 Pay registration fees at the Inland Revenue Division 1 day, simultaneous SBD 1,250
Agency : Central Revenue Collection counter with previous
Entrepreneurs need to take the completed payment fee form to the Inland procedure
Revenue Division counter with cash or check, either in Honiara or at his/her
provincial revenue collection agency in Gizo or Auki.
4 Register for income tax, goods tax, and sales tax 3 days no charge
Agency : Tax administration
Form IR1 must be completed and the certificate of incorporation must be
attached.
5 Register as an employer with the National Provident Fund 1 day, simultaneous no charge
Agency : National Provident fund with previous
Forms must be filled out on paper. procedure
6 Make a company seal 4 days, SBD 500
Agency : Seal maker simultaneous with
This procedure is no longer required by law, but in practice businesses are still previous procedure
making a seal.
7 Pay the business license fee at the Honiara Council 2 days on average SBD 2,700
Agency : Honiara Council
The city council must approve the license first. It can be done in 1 day but it also
can take up to 3 days. The TIN and Business incorporation certificate must be
provided as well. For a manufacturing-L type of company, the fee is SBD 2,700.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Solomon Islands
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
• Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule
929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of as procedures.
income per capita) - Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1) no sewerage infrastructure, a septic tank in the smallest size available will be
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2)
gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Solomon Islands
Dealing with Construction Permits - Solomon Islands
Standardized Warehouse
Estimated value of warehouse SBD 790,587.50
City Covered Honiara
Indicator Solomon East Asia & OECD high Best Regulatory
Islands Pacific income Performance
Procedures (number) 13 15.1 12.7 None in 2017/18
Time (days) 98 133.5 153.1 None in 2017/18
Cost (% of warehouse value) 1.2 1.9 1.5 None in 2017/18
Building quality control index (0-15) 8.0 9.1 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Solomon Islands and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
84.59: Australia (Rank: 9)
73.60: Solomon Islands (Rank: 53)
71.23: Marshall Islands (Rank: 73)
70.71: Regional Average (East Asia & Pacific)
65.73: Kiribati (Rank: 117)
61.05: Micronesia, Fed. Sts. (Rank: 137)
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 Solomon Islands – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.8
0.7
Cost (% of warehouse value)
80
0.6
Time (days)
60 0.5
0.4
40
0.3
0.2
20
0.1
0 0
1 2 3 4 5 6 7 8 9 10 11 * 12 13
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Solomon Islands
Figure – Dealing with Construction Permits in Solomon Islands and comparator economies – Measure of Quality
15 14.0
Index score
10 9.1
8.0
6.0
5
1.0
0.0
0
Solomon Islands Australia Kiribati Marshall Islands Micronesia, Fed. Sts. East Asia & Pacific
Details – Dealing with Construction Permits in Solomon Islands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain approval of concept plan from the Honiara Town and 30 days SBD 200
Country Planning Board
Agency : Honiara Town and Country Planning Board of the Planning and Building
Department
The architect will provide a concept plan, which includes the plan layout showing
the elevation, section (small scale), cross-section and a plan for any car park.
The land title must also be attached to the application request.
The entire application is submitted for approval to the Town and Country
Planning Board. The Board will meet when there are about 10 projects to be
approved.
2 Obtain approval of all other plans from the Honiara Town and Country 31 days SBD 6,019
Planning Board and obtain construction permit
Agency : Honiara Town and Country Planning Board of the Planning and Building
Department
Once the architect obtains the approval of the concept plan, he must submit 5
copies of the entire file with all plans, including fire safety, electricity,
water/sewage and the estimated cost of construction.
Four departments will examine the request for the building permit:
• The physical planning officer will visit the site and write his report and either
give his agreement or refuse to grant the permit.
• The building inspector will check the architectural plans.
• The Health Department will check the sewage plans.
• The Fire Brigade will check the fire safety plans.
Once these four departments have verified the file, it is returned to the Planning
Division. At this stage, the engineers will check the structural plans.
The file will then be sent back to the secretary of the Town Planning Board to
prepare for the board meeting. The file is sent to the Board which meets once per
month, depending on the number of applications submitted. At least 10
applications must be submitted for the Board to meet.
A notification of approval is sent to the architect who will then come and pay the
building permit fees: 0.5% of the estimated cost + cost of SBD 150 per inspection
(7 inspections in this case).
Once payment is made, the permit is signed by the city clerk, usually within 2 -- 3
days.
3 Request and receive foundation inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
4 Request and receive flooring inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
5 Request and receive ground floor wall elevation inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
6 Request and receive ground floor ceiling inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
Page 11Doing Business 2019 Solomon Islands
7 Request and receive first floor wall elevation inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
8 Request and receive roofing inspection 1 day no charge
Agency : Planning and Building Department
Inspection is done at each stage of the construction. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building inspector.
9 Request water connection 1 day no charge
Agency : Solomon Islands Water Authority (SIWA)
10 Receive water inspection 1 day no charge
Agency : Solomon Islands Water Authority (SIWA)
Two days after the application is submitted, the Solomon Islands Water Authority
sends out an inspector. The chief of the department will sign and conduct the
survey. 10 meters of pipe are provided for free. If more is needed, an estimate
will be provided for the additional cost.
11 Obtain water connection 23 days SBD 2,060
Agency : Solomon Islands Water Authority (SIWA)
Receive final inspection 1 day no charge
12 Agency : Planning and Building Department
BuildCo must complete a form informing the inspector that the construction has
been completed and provide a date for the inspection. According to the Building
Ordinance, the builder must give a 48 hours notice to the Building Inspector.
Once the inspection has taken place the completion certificate will be issued
within 5 working days.
13 Obtain the completion certificate 6 days SBD 1,500
Agency : Planning and Building Department
Takes place simultaneously with previous procedure.
Page 12Doing Business 2019 Solomon Islands
Details – Dealing with Construction Permits in Solomon Islands – Measure of Quality
Answer Score
Building quality control index (0-15) 8.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
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;
Mandatory
inspections are
done most of the
time 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.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building 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 1.0
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 ;
Insurance is
commonly taken
in practice.
Professional certifications index (0-4) 1.0
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
Page 13Doing Business 2019 Solomon Islands
What are the qualification requirements for the professional who supervises the construction Minimum number 0.0
on the ground? (0-2) of years of
experience.
Page 14Doing Business 2019 Solomon Islands
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
- Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials
the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
income per capita) because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
• Value added tax excluded switchboard and the meter base.
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1) there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance supplier.
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Solomon Islands
Getting Electricity - Solomon Islands
Standardized Connection
Price of electricity (US cents per kWh) 67.4
Name of utility Solomon Islands Electricity Authority
City Covered Honiara
Indicator Solomon East Asia & OECD high Best Regulatory
Islands Pacific income Performance
Procedures (number) 4 4.3 4.5 3 (25 Economies)
Time (days) 53 65.0 77.2 18 (3 Economies)
Cost (% of income per capita) 1238.9 625.1 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 3 4.0 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Solomon Islands and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
82.31: Australia (Rank: 52)
75.06: Regional Average (East Asia & Pacific)
72.58: Solomon Islands (Rank: 92)
64.49: Micronesia, Fed. Sts. (Rank: 117)
59.47: Marshall Islands (Rank: 132)
44.05: Kiribati (Rank: 170)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 16Doing Business 2019 Solomon Islands
Figure – Getting Electricity in Solomon Islands – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
1400
50
1200
Cost (% of income per capita)
40
1000
Time (days)
30 800
600
20
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 Solomon Islands and comparator economies – Measure of Quality
8
7
7
6
Index score
5
4.0
4
3
3
2
1
0 0 0
0
Solomon Islands Australia Kiribati Marshall Islands Micronesia, Fed. Sts. East Asia & Pacific
Page 17Doing Business 2019 Solomon Islands
Details – Getting Electricity in Solomon Islands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to SIEA and await estimate 11 calendar days SBD 2,389.92
Agency : SIEA
The application is submitted by the electrical contractor. An Employer letter
(Employer’s letter is a form of identification of the person applying for the power
supply) in the case of an individual or the company's ID with the seal is required
at the time of the application. This is to ensure that a genuine developer is
applying for the connection).
SIEA does the design and plans for the project and issues an estimate for the
connection.The estimate is paid at the utility. The proof of the payment has to be
shown with the receipt attached to the quotation.
There is a security deposit of 6000 SBD for commercial customers. The utility
does not pay an interest and it is refunded at the end of the contract. Once the
payment is made the customer signs a contract with SIEA which includes an
agreement for consumption of power.
2 Obtain external inspection by SIEA for preparing estimate 1 calendar day SBD 0
Agency : SIEA
SIEA inspects the site of the building to be connected for preparation of the
estimate.
3 Await completion of external works by SIEA 35 calendar days SBD 189,200
Agency : SIEA
The external connection works can start immediately after all payments are done
and appropriate materials are received. Only SIEA is in charge of the external
connection works and only SIEA is allowed to work on all substation equipment.
While the material is being ordered the utility does the initial works.
Only underground connections are possible because only underground cabling is
in stock at the utility and no material for overhead lines is available.
4 Receive internal wiring inspection, meter installation and electricity from 7 calendar days SBD 4,300
SIEA
Agency : SIEA
Inspection of the internal wiring is done throughout the construction. The
electrician must informed SIEA so that the inspector can carry out a Progress
inspection throughout the construction phase. Once the internal wiring is
completed, the electrical contractor submits a job completion report to SIEA and
requests the final internal wiring. After an internal wiring "completion notice" is
submitted to SIEA by an electrician, SIEA conducts an inspection of the internal
wiring. The electrician in charge of the wiring has to be present during the
inspection. The customer is issued a permit to use power after SIEA wiring
inspectors have certified the installation is ready for use. The final internal wiring
inspection is carried out after the external connection works are completed and
the building is ready for energization.
The meter installation is the last job to be done once all payments, technical
works and internal wiring met the utility’s requirements. It can be done at the end
of the internal wiring inspection. Installation of a meter is part of SIEA service to
the customers and is free. The meter cost is SBD 3,500 and is included in the
quotation.
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Solomon Islands
Details – Getting Electricity in Solomon Islands – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 3
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 2.6
System average interruption frequency index (SAIFI) 1.8
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 2.0
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://solomonpower.
com.sb/sites/default/f
iles/tariff/03Mar%20T
ariff_SP17.pdf
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 19Doing Business 2019 Solomon Islands
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day - 10 years.
though procedures that can be fully completed - Is registered in the land registry or cadastre, or both, and is free of title disputes.
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received
located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees, - Has no trees, natural water sources, natural reserves or historical monuments of
duties and taxes). any kind.
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Solomon Islands
Registering Property - Solomon Islands
Indicator Solomon East Asia & OECD high Best Regulatory
Islands Pacific income Performance
Procedures (number) 10 5.4 4.7 1 (4 Economies)
Time (days) 86.5 72.6 20.1 1 (New Zealand)
Cost (% of property value) 4.7 4.5 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 11.0 16.3 23.0 None in 2017/18
Figure – Registering Property in Solomon Islands and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
74.09: Australia (Rank: 50)
57.56: Regional Average (East Asia & Pacific)
49.13: Kiribati (Rank: 149)
47.38: Solomon Islands (Rank: 154)
0.00: Micronesia, Fed. Sts. (Rank: 187)
0.00: Marshall Islands (Rank: 187)
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 Solomon Islands – Procedure, Time and Cost
Time (days) Cost (% of property value)
4.5
80
4
70
Cost (% of property value)
3.5
60
3
Time (days)
50
2.5
40 2
30 1.5
20 1
10 0.5
0 0
1 2 3 4 5 6 *7 8 9 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.
Page 21Doing Business 2019 Solomon Islands
Figure – Registering Property in Solomon Islands and comparator economies – Measure of Quality
30
25
Index score 20.0
20
16.3
15
11.0
10 9.0
5
0
No Practice No Practice
Solomon Islands Australia Kiribati Marshall Islands Micronesia, Fed. Sts. East Asia & Pacific
Details – Registering Property in Solomon Islands – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Check for property ownership and encumbrances 2 days SBD 30
Agency : Land Department
The department of lands and the Land Registry has an electronic database (not
online) of titles, ownership and encumbrances. One document will provide all the
relevant information on the property, the ownership and encumbrances.
There is the possibility of obtaining a non-certified copy of the title, which has no
value. According to Section IX of the Land and Titles Act [Cap 143] only certified
copies has prima facie evidence.
2 Obtain tax and encumbrances clearance 1 day SBD 10
Agency : Registry of Titles Office
Parties obtain tax clearance and assurance of no encumbrances or liens on the
land from the Commissioner of Lands.
3 Confirm boundary maps of the property 4 days no charge
Agency : Survey Department at the Ministry of Land
This is not mandatory but it is standard practice to confirm the boundary maps.
Limits to the property are marked with cement "pegs", and It is necessary to
verify them. Most properties in Honiara have property pegs.
A letter is written to the Surveyor General to confirm the boundaries. The letter is
passed on to the chief of surveyors, who will contact the person (by phone) to
inform him/her when the identification of the boundaries will be conducted.
Once the boundaries are confirmed, the report of the Chief of surveyor will be
delivered to the office of the Surveyor General. This is done in accordance to the
Land Survey Act [Cap 134].
4 Contract a surveyor to survey the land 20 days SBD 1,000
Agency : Survey Department at the Ministry of Land
One may be able to hire staff from the Survey Department at the Ministry of
Land, but there is a shortage of staff so it is usually necessary to hire a private
surveyor.
5 Get consent for a transfer from the Commissioner of Lands 25 days SBD 300
Agency : Commissioner of Lands
The Commissioner of Lands checks the files and authorizes the transfer. He
cannot delegate his signature for transfers.
6 Prepare and sign transfer contract 1 day SBD 3,952.94; (0.5%
Agency : Lawyer of the value of the
Exchange of contracts is in accordance with the law. Lawyers must act for the transaction (legal
Company. They will need to have checked the identification of boundaries and
fees))
investigate the title. The parties choose the law firm and the lawyers act for the
companies. The vendor company agents must either have the company seal or
be authorized to sign on behalf of the company with a power of attorney. In
Honiara, the transfer will refer to a leases or a fixed term estate (both last 25-50
years generally).
7 Verify the registration of the vendor company Less than one day, no charge
Agency : Company Haus (online) online
Lawyers are instructed to ensure completion in accordance with the law and
ensure the transfer of title.
With the introduction of the online registration for companies, it is now possible to
search for a company online at no cost, saved the proof as a pdf file.
http://www.companyhaus.gov.sb
The evidence of incorporation must be presented in accordance to
Evidence of incorporation LN 85/1968
An application for registration of a dealing whereby a corporation acquires an
interest shall be accompanied by such evidence of incorporation as the Registrar
may require.
Page 22Doing Business 2019 Solomon Islands
8 Notarize the transfer contract 1 day SBD 30; (SBD 10 –
Agency : Registry of Titles Office 50)
This contract must be witnessed or notarized by either a public notary, a solicitor
or civil servant (surveyor above level 5 or land officers). Fees are not regulated
and vary between SBD 10 and 50.
9 Pay the Stamp Duty at the Inland Revenue 2 days SBD 31,623.5;
Agency : Inland Revenue Division (Stamp duty on
Every document executed which is chargeable to duty under the Stamp Duty Act transfer of properties
must be stamped within two months of execution.
according to the
following scale:
a. where the
consideration or
amount exceeds
$10,000 but does not
exceed $25,000 - 2%
of transaction value;
b. where the
consideration or
amount exceeds
$25,000 but does not
exceed $50,000 - 3%
of transaction value;
c. where the
consideration or
amount exceeds
$50,000 - 4% of
transaction value.)
10 Register the transfer 30 days SBD 100
Agency : Registry of Titles Office
The time includes the delay in obtaining the final confirmation of registration.
The registrar of titles covers all the country. It uses a Torrens system and records
on paper the information related to a title (ownership, encumbrances, etc.) Titles
are scanned as a backup. A computer system records all the transactions
requested about a parcel (encumbrances checking, title transfer request, etc.).
However, this computer system does not record ownership or encumbrances; it
just records that someone registered a transfer.
The owner is informed that the transaction is registered by the “Advice of
registration of a dealing” sent by post.
Takes place simultaneously with previous procedure.
Page 23Doing Business 2019 Solomon Islands
Details – Registering Property in Solomon Islands – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 0.0
What is the institution in charge of immovable property registration? Ministry of Legal
and Justice
Affairs
In what format are the majority of title or deed records kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Ministry of Lands
and Housing -
Survey
Department
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 1.5
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
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 No 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? Anyone who 0.5
pays the official
fee
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: Published in the
National Gazette.
Page 24Doing Business 2019 Solomon Islands
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the cadastral or mapping agency?
Contact information:
Geographic coverage index (0–8) 4.0
Are all privately held land plots in the economy formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the largest business city formally registered at the Yes 2.0
immovable property registry?
Are all privately held land plots in the economy mapped? No 0.0
Are all privately held land plots in the largest business city mapped? Yes 2.0
Land dispute resolution index (0–8) 5.5
Does the law require that all property sale transactions be registered at the immovable Yes 1.5
property registry to make them opposable to third parties?
Is the system of immovable property registration subject to a state or private guarantee? No 0.0
Is there a specific compensation mechanism to cover for losses incurred by parties who Yes 0.5
engaged in good faith in a property transaction based on erroneous information certified by
the immovable property registry?
Does the legal system require a control of legality of the documents necessary for a property Yes 0.5
transaction (e.g., checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Lawyer;
Does the legal system require verification of the identity of the parties to a property No 0.0
transaction?
If yes, who is responsible for verifying the identity of the parties? No one;
Is there a national database to verify the accuracy of identity documents? No 0.0
For a standard land dispute between two local businesses over tenure rights of a property Magistrates'
worth 50 times gross national income (GNI) per capita and located in the largest business Court
city, what court would be in charge of the case in the first instance?
How long does it take on average to obtain a decision from the first-instance court for such a Less than a year 3.0
case (without appeal)?
Are there any statistics on the number of land disputes in the first instance? No 0.0
Number of land disputes in the largest business city in 2017:
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
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