Barbados Economy Profile - Doing Business 2019 - World Bank Group
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Doing Business 2019 Barbados
Economy Profile
Barbados
Page 1
Doing Business 2019 Barbados
Economy Profile of Barbados
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 Barbados
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 Barbados
Ease of Doing Business in
Region Latin America & Caribbean DB 2019 Rank
190 1
Barbados
Income Category High income 129
DB 2019 Ease of doing business score
Population 285,719
0 100
City Covered Bridgetown 56.78
DB 2019 Ease of Doing Business Score
0 100
67.47: Jamaica (Rank: 75)
63.02: St. Lucia (Rank: 93)
60.81: Trinidad and Tobago (Rank: 105)
58.97: Regional Average (Latin America & Caribbean)
56.78: Barbados (Rank: 129)
52.71: Grenada (Rank: 147)
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 - Barbados
1
28 34
55
82 93
Rank
101
109 114
129 132
136 144
154
163 168 170
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 - Barbados
100
85.15
80
71.88 69.79
65.12
61.88
Score
60 56.64 54.33
38.02
40 35.00
30.00
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Barbados
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Barbados
Starting a Business - Barbados
Standardized Company
Legal form SRL
Paid-in minimum capital requirement BBD 0
City Covered Bridgetown
Indicator Barbados Latin America OECD high Best Regulatory
& Caribbean income Performance
Procedure – Men (number) 8 8.2 4.9 1 (New Zealand)
Time – Men (days) 15 28.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 7.3 37.8 3.1 0.0 (Slovenia)
Procedure – Women (number) 8 8.2 4.9 1 (New Zealand)
Time – Women (days) 15 28.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 7.3 37.8 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 1.5 8.6 0.0 (117 Economies)
Figure – Starting a Business in Barbados and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
97.35: Jamaica (Rank: 6)
89.18: St. Lucia (Rank: 70)
88.57: Trinidad and Tobago (Rank: 76)
87.26: Grenada (Rank: 85)
85.15: Barbados (Rank: 101)
79.40: Regional Average (Latin America & Caribbean)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Barbados
Figure – Starting a Business in Barbados – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
5
14
Cost (% of income per capita)
12 4
10
Time (days)
3
8
6 2
4
1
2
0 0
1 2 3 *4 5 *6 *7 *8
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 Barbados
Details – Starting a Business in Barbados – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit a request for company name search and name reservation 2 days BBD 30 (BBD 25 for
Agency : Corporate Affairs and Intellectual Property Office reserving the name +
The name search can be done online through form 33. In the form, entrepreneur
BBD 5 for electronic
suggests 3 names in order of priority. The registrar checks if the proposed name
search)
is available and then returns the form to the entrepreneur with a tick on the name
that is available. Name reservation is valid for 90 days. The actual form for name
registration must be filed in person and collected from Corporate Affairs.
2 Draft articles of incorporation 2 days BBD 1,500
Agency : Lawyer
There is a standard form for articles of incorporation that is downloaded online
from the registrar’s website: www.caipo.gov.bb The procedure to incorporate a
Company must be completed in person. In addition to the articles of association,
the following documents also need to be submitted to the registrar:
- Notice of Directors
- Notice of Address
- Notice of secretary appointment
Fees are set under the Legal Profession Act Cap. 370A, Remuneration for Non-
Contentions Business Rules, 1997.
3 Submit application for business registration 7 days on average no charge
Agency : Registrar of Corporate Affairs
Once the attorney submits all the above documents, the Registrar of Corporate
Affairs files the application and the articles of incorporation and assigns a
company number to the file. That company number will be included in the
certificate of incorporation and inserted into the articles of incorporation.
4 Pay the registration fees 1 day (simultaneous BBD 750
Agency : Registrar of Corporate Affairs with previous
Fees are paid to the in-house cashier (a separate person receives the document
procedure)
and payment is done at a separate window). The fee can be paid online as well,
but few businesses have adopted this method in practice.
5 Register for income tax payment 2 days no charge
Agency : Barbados Revenue Authority
The following documents need to be submitted to the Barbados Revenue
Authority:
1. Form for CIT registration
2. Copy of articles of incorporation
3. Copy of Certificate of Incorporation
6 Register with the VAT division of the Customs and Excise Department 2 days no charge
Agency : Customs and Excise Department (simultaneous with
A company with income in excess of 80,000 BDS per year has to register for
previous procedure)
VAT. The following documents need to be submitted to the VAT division of the
Customs and Excise Department:
1. Form of VAT registration
2. Copy of articles of incorporation
7 Register with the National Insurance Scheme 2 days no charge
Agency : National Insurance (simultaneous with
All business founders must register with the National Insurance Scheme.
previous procedure)
8 Make company seal 1 day (simultaneous BBD 60
Agency : Private printing shop with previous
According to Section 25 of the Companies Act, a company must have a common
procedure)
seal with its name engraved on it. A company must seal all of its documents
when doing business with other parties (e.g., borrowing for a mortgage).
Business in practice cannot be done without a seal.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Barbados
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Barbados
Dealing with Construction Permits - Barbados
Standardized Warehouse
Estimated value of warehouse BBD 1,606,068.40
City Covered Bridgetown
Indicator Barbados Latin America OECD high Best Regulatory
& Caribbean income Performance
Procedures (number) 9 15.4 12.7 None in 2017/18
Time (days) 442 199.0 153.1 None in 2017/18
Cost (% of warehouse value) 0.2 3.2 1.5 None in 2017/18
Building quality control index (0-15) 6.5 8.9 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Barbados and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
76.33: St. Lucia (Rank: 32)
70.71: Jamaica (Rank: 76)
64.20: Trinidad and Tobago (Rank: 125)
63.48: Regional Average (Latin America & Caribbean)
62.53: Grenada (Rank: 130)
56.64: Barbados (Rank: 154)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Barbados – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.14
400
0.12
Cost (% of warehouse value)
350
0.1
300
Time (days)
250 0.08
200
0.06
150
0.04
100
0.02
50
0 0
1 2 3 4 5 6 7 8 9
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 Barbados
Figure – Dealing with Construction Permits in Barbados and comparator economies – Measure of Quality
15
12.0
10.5 10.0
Index score
10 8.9
6.5
5.0
5
0
Barbados Grenada Jamaica St. Lucia Trinidad and Tobago Latin America & Caribbean
Details – Dealing with Construction Permits in Barbados – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request Develop Land Permission from Town and Country Planning 270 days BBD 2,094
Department and receive approval
Agency : Town & Country Planning Department
The following documents are required for the Develop Land Permission:
• three copies of the application reform
• design plans
• elevation plan
• site plan
• location plan
• copy of certificate of registration by the architect
An approved seal/stamp of the Architect’s Registration Board must be affixed on
all accompanying drawings. No proof of ownership needs to be attached. Town
and Country Planning gets internal clearance from Department of Transport. No
construction can start until this application gets approved, which leads to delays
in construction.
After passing the front desk, the application must be forwarded to a number of
agencies for clearance. The Town Planning Department obtains all these
clearances internally (since 1972): Ministry of Transport (for the road), Building
Standard Authority, Chief Fire Officer, Coastal Zone Management Unit and
Environment Protection Development Agency (EPD). It takes 14 -- 21 days for
the different agencies to provide their comments so they can finalize the building
permit.
After obtaining all clearances, the application is forwarded to a planning assistant
who takes 4 weeks to write his/her report. The assistant will send the report to
the supervisor who could either be the decision officer or under the decision
officer. If the application is incomplete, the supervisor will request additional
information. It takes the supervisor 3 weeks to put his assessment in the report
and send it to the senior town planner to issue a final decision. The building
permit is 3 sheets of paper. It takes 2 weeks to issue the building permission
from the senior town planner.
2 Submit letter on commencement of construction 1 day BBD 100
Agency : Town & Country Planning Deparment
This letter is issued once the permission is granted. Therefore, it cannot be a
simultaneous procedure.
3 Request and receive first inspection 14 days BBD 100
Agency : Town & Country Planning Deparment
During the initial inspection, the inspector checks for compliance with site plan
and drawings. All proposed works should be set out for inspection by an Officer
of the TCDPO prior to the commencement of works. It is critical that all 'line
marks'/irons are visible at the time of the inspection in order to allow for accurate
measurements.
4 Request certificate of compliance 1 day BBD 150
Agency : Town & Country Planning Deparment
This certificate is required once the inspection is conducted.
5 Request and receive final inspection 14 days no charge
Agency : Town & Country Planning Deparment
The inspector checks the height of the building (height as per plans).
6 Receive certificate of compliance 114 days no charge
Agency : Town & Country Planning Deparment
This certificate of compliance is only issued once the final inspections is
conducted.
Page 11Doing Business 2019 Barbados
7 Request water and sewage connection 1 day BBD 50
Agency : Barbados Water Authority
Once the construction is finalized this procedure is done, and as a result, along
with the application, BuildCo must submit copies of the approved drawings and
the approved application (stamped). The Barbados Water Authority takes 3 to 4
weeks to conduct the connection. The utility workers can connect to water mains
and install the meter based on drawings submitted. The customer does not need
to be present during the connection process.
8 Receive water and sewage inspection 1 day no charge
Agency : Barbados Water Authority
Once the inspection has been requested, BuildCo. receives an examination from
the utility company.
9 Obtain water and sewage connection 26 days no charge
Agency : Barbados Water Authority
The reception of the water connection can only be done once the related
inspection has been done.
Takes place simultaneously with previous procedure.
Page 12Doing Business 2019 Barbados
Details – Dealing with Construction Permits in Barbados – Measure of Quality
Answer Score
Building quality control index (0-15) 6.5
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;
They must be
purchased.
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) 0.0
Which third-party entities are required by law to verify that the building plans are in By law, there is 0.0
compliance with existing building regulations? (0-1) no need to verify
plans
compliance; Civil
servant reviews
plans.
Quality control during construction index (0-3) 0.0
What types of inspections (if any) are required by law to be carried out during construction? No inspections 0.0
(0-2) are legally
required during
construction..
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) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 0.5
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 0.5
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 1.0
What are the qualification requirements for the professional responsible for verifying that the There are no 0.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) specific
requirements.
Page 13Doing Business 2019 Barbados
What are the qualification requirements for the professional who supervises the construction Minimum number 1.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
There are no
specific
requirements.
Page 14Doing Business 2019 Barbados
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering kilowatt (kW).
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 15Doing Business 2019 Barbados
Getting Electricity - Barbados
Standardized Connection
Price of electricity (US cents per kWh) 25.8
Name of utility Barbados Light and Power Company Limited
City Covered Bridgetown
Indicator Barbados Latin America OECD high Best Regulatory
& Caribbean income Performance
Procedures (number) 8 5.5 4.5 3 (25 Economies)
Time (days) 88 65.5 77.2 18 (3 Economies)
Cost (% of income per capita) 61.3 946.3 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 6 4.3 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Barbados and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
84.30: Trinidad and Tobago (Rank: 41)
82.97: St. Lucia (Rank: 49)
73.34: Grenada (Rank: 89)
70.59: Regional Average (Latin America & Caribbean)
65.12: Barbados (Rank: 114)
64.96: Jamaica (Rank: 115)
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 Barbados
Figure – Getting Electricity in Barbados – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
35
80
30
Cost (% of income per capita)
70
25
60
Time (days)
50 20
40
15
30
10
20
5
10
0 0
1 2 3 *4 5 6 7 8
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 Barbados and comparator economies – Measure of Quality
8
7
7
6 6
6
Index score
5
5 4.3
4
3
3
2
1
0
Barbados Grenada Jamaica St. Lucia Trinidad and Tobago Latin America & Caribbean
Page 17Doing Business 2019 Barbados
Details – Getting Electricity in Barbados – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Inform Light & Power of requirements and receive estimate of connection 10 calendar days BBD 0
costs
Agency : Barbados Light and Power Company
When the customer is planning to carry out their construction, or sometime
during the construction process, they would normally contact the utility for a
quotation to provide power. The contractor usually sends a letter at the beginning
of the internal wiring process. The utility staff makes an external site visit to note
the location of the warehouse, nearest connection point and access to
warehouse. There is no need for the customer to be present for this inspection.
Once this inspection has been completed, Light & Power will send a cost
estimate, which is valid for 6 months, to the customer.
2 Request and receive final inspection by government's Electrical 21 calendar days BBD 0
Engineering Department
Agency : Government Electrical Engineering Department
The customer requests a final inspection from the Government Electrical
Engineering Department- there are usually two earlier inspection done by GEED
to check internal wiring.
3 Prepare customer's premises for external works 14 calendar days BBD 10,000
Agency : Electrical Contractor
The customer’s contractor will build a transformer pad, and install the ducts. The
contractor connects the transformer's LT cables to the customer' panel before the
transformer is installed by the utility.
4 Obtain Excavation Permit from Ministry of Public Works 10 calendar days BBD 0
Agency : Ministry of Public Works
The customer's contractor needs to obtain the excavation permit from the
Ministry of Public Works before the external works can be started.
5 Submit connection application to Light & Power 1 calendar day BBD 9,485
Agency : Barbados Light and Power Company
The customer submits a connection application to Light & Power and the
following documents must be provided:
• The Electrical Inspection certificate of approval (or notice of inspection form if
certificate not yet available).
• Certificate of registration for the Business.
• Excavation permit (authorization for road crossing from the Ministry of Public
Works)
6 Receive inspection by Light & Power 5 calendar days BBD 0
Agency : Barbados Light and Power Company
An external inspection is required when installation of transformer pad and ducts
is complete. Contractor does not need to be present, however it is usually the
practice that the contractor is present on the site.
7 Obtain external works from utility 35 calendar days BBD 0
Agency : Barbados Light and Power Company
The utility is responsible for installation of HT cable, transformer and any pole
and HT linework that may be required.
8 Receive meter installation and turn-on of electricity 2 calendar days BBD 200
Agency : Barbados Light and Power Company
The meter will be installed by a specialized meter technician, which is not the
same crew that installs the transformer. The connection is energized once the
meter is installed (unless the customer instructs the utility not to do so).
Takes place simultaneously with previous procedure.
Page 18Doing Business 2019 Barbados
Details – Getting Electricity in Barbados – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 1
System average interruption duration index (SAIDI) 4.5
System average interruption frequency index (SAIFI) 7.0
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
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.blpc.com.
bb/newfront/home.cf
m
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 Barbados
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 20Doing Business 2019 Barbados
Registering Property - Barbados
Indicator Barbados Latin America OECD high Best Regulatory
& Caribbean income Performance
Procedures (number) 6 7.2 4.7 1 (4 Economies)
Time (days) 105 63.3 20.1 1 (New Zealand)
Cost (% of property value) 4.4 5.8 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 11.5 11.9 23.0 None in 2017/18
Figure – Registering Property in Barbados and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
59.90: St. Lucia (Rank: 104)
55.25: Regional Average (Latin America & Caribbean)
54.33: Barbados (Rank: 129)
53.61: Jamaica (Rank: 131)
50.14: Grenada (Rank: 146)
46.66: Trinidad and Tobago (Rank: 158)
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 Barbados – Procedure, Time and Cost
Time (days) Cost (% of property value)
3.5
100
3
Cost (% of property value)
80
2.5
Time (days)
60 2
1.5
40
1
20
0.5
0 0
1 2 3 *4 *5 6
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 Barbados
Figure – Registering Property in Barbados and comparator economies – Measure of Quality
30
25
Index score 18.5
20
15 14.0
11.5 11.0 11.9
10
7.0
5
0
Barbados Grenada Jamaica St. Lucia Trinidad and Tobago Latin America & Caribbean
Details – Registering Property in Barbados – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Lawyer of the seller drafts the sale agreement 2 days BBD 12,373.79;
Agency : Lawyer (According to the
The lawyer of the seller has to initiate the process. The seller has to provide his
Legal Profession
lawyers with all the title deeds he has. According to the Property Act, he has to
Remuneration for
show root of the property over the past 20 years. In order for the buyer to get a
Non-Contentious
good title, the seller must show a 20 years root. So, he gives his attorney all the
documents (seller has all the originals). The lawyer of the seller initiates the Business Rules 1997,
transaction by preparing an agreement of sale between his client and the buyer. CAP. 370A, Section
He prepares this agreement in draft form. Seller photocopies all title documents 27, the fees for the
and contacts the buyer's lawyer so he can verify if everything in the agreement seller's lawyer when
matches the documents. After the revision the parties will agree on a closing date preparing and
for the transaction. Then the buyer and seller lawyers settle the contract. completing
conveyance of
The buyer's lawyer sends it back to seller's lawyer who returns it back after being
unregistered land are:
engrossed (i.e. done by its final form by the seller lawyer). The buyer signs it
(buyer is always the first to sign it) and pays 10% deposit and then it is returned $750 (up to $25,000)
to the seller lawyer for him to sign. The agreement is exchanged and the contract + 2% on the next
is enforced. $75,000 + 1.5% on
the next $100,000 +
1.25% on the next
$300,000 + 1%
thereafter. For
registered land the
fees are two thirds of
the scale above.)
Page 22Doing Business 2019 Barbados
2 Lawyer of the buyer conducts an Investigation of Title & the lawyer of the 90 days BBD 6,401.23; (a)
seller prepares the conveyance The fees for the
Agency : Land Registry purchaser's lawyer
All of the original documents with the seller are also found at the land registry in
are set by Section 27
copies. Every transaction over the past 20 years is processed through the land
of the The Legal
registry. The land registry has to record the conveyance within 3 months when
the transaction is completed. With the documentation received the lawyer of the Profession Act Cap.
buyer conducts a investigation of title and search where he checks that all 370A LEGAL
documents he has are valid and that they match what is recorded in the land PROFESSION
registry. He conducts a search at land registry to make sure all requirements are (ATTORNEYS'-AT-
met and no debts attached to the property. The title search at the land registry LAW)
can take around one week. (REMUNERATION
Under the Property Act, the title search should go back 20 years. If for any
FOR NON-
reason, the buyer attorney needs to go beyond 20 years he would pay an
CONTENTIOUS
additional $5 for searching through the books.
While the buyer's lawyer is doing the investigation at the Land Registry, the BUSINESS) RULES,
seller's lawyer prepares the draft conveyance (document that transfers the 1997:
ownership). The seller's lawyer sends the draft conveyance to the buyer's lawyer 27. Sale and
who approves it and sends it back to the seller's lawyer who engrosses it and Purchase of Land:
sends it back for the buyer’s signature. The buyer signs and returns it to seller For preparing and
lawyer for his signature. The buyer's lawyer receives the conveyance signed by completing
both parties plus the original title documents and in return the buyer pays the
conveyance of
purchasing price.
unregistered land
(excluding
conveyances under
the Tenantries
Freehold Puchase
Act)
-Up to $25 000 $1
000
- On the next $75 000
2.5%
- On the next $100
000 1.5%
- On the next $300
000 1.25%
- Thereafter 1%
- Registered land one
third of the scale
above
b) The Land Registry
charges 3 BBD per
copy of past
transactions on the
property)
3 Obtain Land Tax Certificate 2 days no charge
Agency : Land Tax Department
The Land Tax Certificate shows that all land taxes are paid. It is issued by the
Clerical Officers of the Land Tax Department. This certificate doesn’t need to be
stamped.
4 Stamp Notice of the Transfer of Ownership at the Land Tax Department 1 day no charge
Agency : Land Tax Department
Notice of transfer of ownership is issued by the land registry (downloadable from
the Land Registry’s website) and it should be stamped by the Land Tax
Department. The objective of this form is to give information to the Land Tax
Department as to what price the land was sold for, the location of the land, its
area, the parties to the transaction, the day the property was sold, and whether
property is residential or commercial.
To get the Transfer of Ownership form stamped a valid Land Tax Certificate
showing that all taxes have been paid must be produced.
5 Stamp Section 12A Form 1 day no charge
Agency : Inland Revenue Department
Section 12A form is issued by the Inland Revenue Department (downloadable
online). It should be stamped by the Inland Revenue Department and tells
whether any real estate commission was payable and if so to whom.
Page 23Doing Business 2019 Barbados
6 Record the conveyance at the Land Registry and pay transfer fees and 10 days BBD 52,478.39;
stamp duties (Transfer tax (if there
Agency : Land Registry is a building on top of
Buyer has to process the conveyance at the land registry i.e. record the
the land, the first BDS
conveyance at the registry by buyer lawyer. To record the conveyance, the
150,000 are
following documents are submitted:
1. Original conveyance exempted of transfer
2. Notice of transfer of ownership stamped by the Land Tax Department. tax and the rest is
3. Section 12A form stamped by the Inland Revenue Department. taxed at 2.5%) +
4. Land Tax Certificate Stamp Duty (1% of
The Land Registry completes 2 tasks: the purchase price) +
1. Have the conveyance assessed by the registry and then buyer pays stamp fees for recording the
duties and transfer tax.
new conveyance
2. Record the conveyance. The buyer lawyer goes to Land Registry. The land
(BDS 4 per page of
registry would record the conveyance and the buyer's lawyers would receive
back the original conveyance. When collecting the conveyance the registry the new conveyance
attached to ti a page which identifies the recording particulars (i.e. where can it and it usually is 4
be found, which volume and which page). The original conveyance is needed so pages))
the buyer can use the property as collateral.
Takes place simultaneously with previous procedure.
Page 24Doing Business 2019 Barbados
Details – Registering Property in Barbados – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 5.0
What is the institution in charge of immovable property registration? The Land
Registry under
the Ministry of
Housing, Lands
and Rural
Development
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Land Survey
Department
under the
Ministry of
Housing, Lands
and Rural
Development
In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
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 Different 1.0
or mapping agency kept in a single database, in different but linked databases or in separate databases but
databases? linked
Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0
same identification number for properties?
Transparency of information index (0–6) 2.0
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 Yes, online 0.5
immovable property registration in the largest business city made publicly available–and if
so, how?
Link for online access: http://www.landre
gistry.gov.bb/Regi
strationFees2.as
px
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
Page 25Doing Business 2019 Barbados
Is the applicable fee schedule for accessing maps of land plots made publicly available— No 0.0
and if so, how?
Link for online access:
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) 0.0
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 No 0.0
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? No 0.0
Land dispute resolution index (0–8) 4.5
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? Yes 0.5
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? Lawyer;
Does the legal system require verification of the identity of the parties to a property Yes 0.5
transaction?
If yes, who is responsible for verifying the identity of the parties? Lawyer;
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 Civil Section of
worth 50 times gross national income (GNI) per capita and located in the largest business the High 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 Between 2 and 3 1.0
case (without appeal)? years
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
Page 26You can also read
