Venezuela, RB Economy Profile - Doing Business 2020 - World Bank Documents
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Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Doing Business 2020
Venezuela, RB
Economy Profile
Venezuela, RB
Page 1
Doing Business 2020 Venezuela, RB
Economy Profile of Venezuela, RB
Doing Business 2020 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 postfiling
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
Employing workers Flexibility in employment regulation and redundancy cost
Page 2Doing Business 2020 Venezuela, RB
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 employing workers. Although Doing Business does not present rankings
of economies on the employing workers 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 studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies 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 study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study 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.
To learn more about Doing Business please visit doingbusiness.org
Page 3Doing Business 2020 Venezuela, RB
Ease of Doing Business in
Region Latin America & Caribbean DB RANK DB SCORE
Venezuela, RB
Income Category Upper middle income
Population 28,870,195 30.2
188
City Covered Caracas
Rankings on Doing Business topics - Venezuela, RB
132
145
150
165
174 170
175
190 189 188
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
Topic Scores
25.0 46.5 39.8 50.3 40.0 24.0 11.4 0.0 46.9 18.5
Starting a Business (rank) 190 Getting Credit (rank) 132 Trading across Borders (rank) 188
Score of starting a business (0-100) 25.0 Score of getting credit (0-100) 40.0 Score of trading across borders (0-100) 0.0
Procedures (number) 20 Strength of legal rights index (0-12) 1 Time to export
Time (days) 230 Depth of credit information index (0-8) 7 Documentary compliance (hours) No Practice
Cost (number) 211.8 Credit registry coverage (% of adults) 0.0 Border compliance (hours) No Practice
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 40.7 Cost to export
Documentary compliance (USD) No Practice
Dealing with Construction Permits (rank) 175 Protecting Minority Investors (rank) 170 Border compliance (USD) No Practice
Score of dealing with construction permits (0-100) 46.5 Score of protecting minority investors (0-100) 24.0 Time to export
Procedures (number) 11 Extent of disclosure index (0-10) 3.0 Documentary compliance (hours) No Practice
Time (days) 434 Extent of director liability index (0-10) 2.0 Border compliance (hours) No Practice
Cost (% of warehouse value) 12.0 Ease of shareholder suits index (0-10) 3.0 Cost to export
Building quality control index (0-15) 10.5 Extent of shareholder rights index (0-6) 1.0 Documentary compliance (USD) No Practice
Extent of ownership and control index (0-7) 2.0 Border compliance (USD) No Practice
Getting Electricity (rank) 174 Extent of corporate transparency index (0-7) 1.0
Score of getting electricity (0-100) 39.8 Enforcing Contracts (rank) 150
Procedures (number) 6 Paying Taxes (rank) 189 Score of enforcing contracts (0-100) 46.9
Time (days) 208 Score of paying taxes (0-100) 11.4 Time (days) 720
Cost (% of income per capita) 650.7 Payments (number per year) 99 Cost (% of claim value) 43.7
Reliability of supply and transparency of tariff index (0-8) 0 Time (hours per year) 920 Quality of judicial processes index (0-18) 7.0
Total tax and contribution rate (% of profit) 73.3
Registering Property (rank) 145 Postfiling index (0-100) 19.7 Resolving Insolvency (rank) 165
Score of registering property (0-100) 50.3 Score of resolving insolvency (0-100) 18.5
Procedures (number) 10 Recovery rate (cents on the dollar) 5.3
Time (days) 53 Time (years) 4.0
Cost (% of property value) 2.6 Cost (% of estate) 38.0
Quality of the land administration index (0-30) 5.5 Outcome (0 as piecemeal sale and 1 as going 0
concern)
Strength of insolvency framework index (0-16) 5.0
Page 4Doing Business 2020 Venezuela, RB
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 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) 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 city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave -Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days) polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
-Is managed by one local director.
• Procedure is considered completed once final document is -Has between 10 and 50 employees one month after the commencement of operations, all of them
received
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per -Leases the commercial plant or offices and is not a proprietor of real estate.
capita) -Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice The owners:
Paid-in minimum capital (% of income per capita) -Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5Doing Business 2020 Venezuela, RB
Starting a Business - Venezuela, RB
Standardized Company
Legal form Sociedad Anónima (SA)
Paid-in minimum capital requirement No minimum
City Covered Caracas
Indicator Venezuela, RB Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedure – Men (number) 20 8.1 4.9 1 (2 Economies)
Time – Men (days) 230 28.8 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 211.8 31.4 3.0 0.0 (2 Economies)
Procedure – Women (number) 20 8.1 4.9 1 (2 Economies)
Time – Women (days) 230 28.8 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 211.8 31.4 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 0.4 7.6 0.0 (120 Economies)
Figure – Starting a Business in Venezuela, RB – Score
0.0 0.0 0.0 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Venezuela, RB and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
85.6: Guyana (Rank: 111)
85.4: Dominican Republic (Rank: 112)
81.3: Brazil (Rank: 138)
79.6: Regional Average (Latin America & Caribbean)
69.4: Bolivia (Rank: 175)
25.0: Venezuela, RB (Rank: 190)
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 2020 Venezuela, RB
Figure – Starting a Business in Venezuela, RB – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
200
200
Cost (% of income per capita)
150
150
Time (days)
100
100
50
50
0 0
1 2 3 4 5 *6 *7 8 9 10 * 11 * 12 13 14 * 15 * 16 * 17 * 18 * 19 * 20
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 2020 Venezuela, RB
Details – Starting a Business in Venezuela, RB – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Reserve company name 4 days VES 50 (1 UT name
Agency : Commercial Registry search) + VES 100 (2 UT
To reserve a company name, founders must buy the name search form (busqueda de la name reservation)
denominación) at the Registry.
The cost for the name search is 1 UT and the cost for the name reservation is 2 UT. As of March
2019, the new value of the U.T. increased to VES 50 (Official Gazette N° 41.597).
2 Obtain an approval of the company name 3 days no charge
Agency : Commercial Registry
After reserving the company name, the applicant must pay the cited fee at a bank and later return
to the Registry to show the bank deposit slip and obtain the company name approval.
3 Have the company’s constitutive documents and social statutes prepared and legalized by 5 days VES 600,000 to VES
a lawyer 1,550,000
Agency : Lawyer
Legal assessment is required in the procurement of the company incorporation documents; the
assessment must follow all formalities cited in Articles 211 to 215 of the Code of Commerce.
4 Open a bank account 1 day no charge
Agency : Bank
The Mercantile Registry requires evidence of a bank account. Although founders commonly
deposit 20% of declared capital, there is no minimum amount; by law, the Registrar determines
the required amount.
5 Register at the local mercantile registry (Registro Mercantil) 34 days 1% of the capital + VES
Agency : Commercial Registry 300 (6 UT for a fixed fee) +
Founders must register with the local mercantile registry. This procedure must be done within 30 VES 250 (5 UT for the
days of name reservation. The employer must fill out and submit a registration (derechos
fiscal rights) + VES 25
registrales) form.
(0.05 UT per page of the
articles of association) +
VES 30 (per page stamp
tax for original document,
registry copy and company
copy).
6 Publish articles in a local newspaper (Gaceta Forense del Registro Mercantil) 3 days (simultaneous VES 4000
Agency : Local Newspaper with previous procedure)
The company's articles of association must be published in a local newspaper.
7 Register company books 1 day (simultaneous with VES 20000 per each book
Agency : Commercial Registry previous procedure) + VES 1.5 (0.06 UT) fixed
Companies must purchase the books and register corporate books (Shareholders' Book, fee + 5 VES (0.0003 UT
Shareholders’ Meeting Minutes Book and, if applicable, Board of Directors Minutes Book) and
per page per registration,
accounting books (Inventory Book, Daily Book and Ledger).
each book has 100 pages)
8 Register at the Tax Authorities (Servicio Nacional Integrado de Administración Aduanera y 1 day no charge
Tributaria, SENIAT) to obtain a fiscal number (Registro Unico de Información Fiscal, RIF)
Agency : Tax Authority (SENIAT)
The entrepreneur must register at the Registro Unico de Información Fiscal (RIF) to obtain a fiscal
number, within SENIAT, the National Integrated Service of Customs and Tax Administration. The
company must file an electronic form which is downloaded from SENIAT’s Web page
(www.seniat.gov.ve). Such form must be signed by the legal representative and be filed before
SENIAT, along with the required documentation, to issue the tax information registry number.
9 Obtain a tax clearance certificate at municipal level (Instituto Municipal de Aseo Urbano) 1 day VES 10 (0.2 UT)
Agency : Municipal Institute for Urban Cleaning (Instituto Municipal de Aseo Urbano)
A tax clearance certificate must be obtained.
10 Register at the Social Security Institute 130 days no charge
Agency : Social Security Institute (IVSS)
Since 2015, applicants must register online at
http://registro.ivss.gob.ve:28085/RegistroSolicitudTiuna/home.htm. The application must then be
filed in person at the Social Security Institute along with the following required attachments.
(i) Registration form 14-01 issued by the online system;
(ii) tax identification number (RIF);
(iii) commercial registry of the company;
(iv) information of the legal representative of the company (identity card);
(iv) any public service payment receipt where the compnay's commercial address is indicated
(electricity, telephone, or other).
Once registered online, the entrepreneur needs to file the original documents in person at the
social security office. This could take up to 6 months.
Page 8Doing Business 2020 Venezuela, RB
11 Register at National Bank for Housing and Habitat - Banco Nacional de Vivienda y Habitat 1 day (simultaneous with no charge
(BANAVIH) previous procedure)
Agency : Bank for Housing and Habitat (BANAVIH)
The employers must register online
http://faovel.banavih.gob.ve/index.php/empleador_login/selectUsuario. The application must then
be filed in person at BANAVIH along with the required attachments, to obtain a user identification
and password in order to access the employer's BANAVIH online account.
After completing the online application, the following documents must be submitted at the National
Bank for Housing and Habitat: (i) tax identification number (RIF); (ii) commercial registry of the
company; and (iii) information of the legal representative of the company (identity card).
Employers must verify their list of employees monthly and pay the contribution.
Register at the National Institute of Socialist Cooperation & Education 1 day (simultaneous with no charge
12 Agency : National Institute of Socialist Cooperation & Education previous procedure)
Employers with a minimum of five employees must register at the National Educational Co-
operation Institute; the employees’ social security numbers are required.
Register must be done online at http://www.inces.gob.ve/
13 Register with the Ministry of Labor 1 day no charge
Agency : Ministry of Labor
The company and the company employees have to register with the Ministry of Labor. The
Registration also includes the Statistics Register and the Department of Hygiene and Safety. The
applicants can register online at www.mintra.gob.ve. The application must then be filed in person
before the Ministry of Labor along with the required attachments.
14 Go through a labor inspection (by the Labor Inspectorate) 14 days VES 5 (0.1 UT stamp cost)
Agency : Labor Inspector Office
The Labor Inspectorate inspects the business premises.
Obtain fire approval and undergo an inspection 28 days (simultaneous no charge
15 Agency : Fire Department with previous procedure)
It is necessary to obtain an approval from the Firefighters' Department. It takes 8 days for
assignment of an operating inspector and 15–20 days for a response to be provided. Once the
inspector is assigned, he/she will perform an inspection at the place of business to establish
whether all security requirements are met. After inspection, an approval from the Agency will be
obtained if all the requirements are met.
Obtain conformity of use certificate (zoning permit) 15 days (simultaneous VES 250 (5 UT) + VES 1
16 Agency : Municipality with previous procedure) (0.02 UT) stamp
A conformity of use certificate must be obtained. Documents required are the mercantile
registration, external building maps, and a photo of the premises.
Obtain industrial or commercial license from competent municipality 50 days (simultaneous VES 500 (10 UT) + VES 1
17 Agency : Municipality with previous procedure) (0.02 UT)
To obtain an industrial or commercial license from a competent municipality, the founders must file
copies of registration, a sanitation certificate, the list of the premises, the latest balance sheet and
a declaration of the number of employees.
The fees depend on the Municipality in which the company will execute its commercial activities.
Register at the National Commission for People with Disabilities 1 day No charge
18 Agency : National Council for People with Disabilities (CONAPDIS)
In order to register companies must complete the form provided on line at
http://sistemaspruebas.conapdis.gob.ve/publico/deseo_registrarme_empresa.
In order to access the website, companies need to obtain a login and username. Once that is
done, registration is done immediately.
Register at the National Superintendence for the Defense of Socioeconomic Rights 1 day No charge
19 (SUNDDE)
Agency : National Superintendence for the Defense of Socio-Economic Rights (SUNDDE)
It is necessary to register at the Sole Registry of Venezuelan Individuals and Legal Entities who
Develop Economic and Commercial Activities in Venezuela (Registro Unico de Personas Que
Desarollan Actividades Economicas, RUPDAE), a registry created by the Organic Law of Fair
Prices (November, 2014).
RUPDAE is part of the Superintendence of Fair Prices (Superintendencia de Precios Justos),
within the National Superintendence for the Defense of Socioe conomic Rights (SUNDDE).
The registration can be done online at the following site:
http://rupdae.superintendenciadepreciosjustos.gob.ve/usuarios/inscripcion or in person. The
majority of companies go in person to agency to register.
Page 9Doing Business 2020 Venezuela, RB
Register at the National Institute of Prevention, Occupational Health and Safety 1 day No charge
20 (INPSASEL)
Agency : National Institute of Prevention, Occupational Health and Safety (INPSASEL)
Companies must register online at the following site.
http://usuarios.inpsasel.gob.ve/login/registro
The procedures provides a registration number which companies will use in further interactions
with government after it starts operations.
Takes place simultaneously with previous procedure.
Page 10Doing Business 2020 Venezuela, RB
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 2019. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
The warehouse:
that can be fully completed online are an exception to this rule
- Will be used for general storage activities, such as storage of books or stationery.
• Procedure is considered completed once final document is
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Cost required to complete each procedure (% of income per
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2) The water and sewerage connections:
• Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) 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 installed or built.
• Quality control after construction (0-3)
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- 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 11Doing Business 2020 Venezuela, RB
Dealing with Construction Permits - Venezuela, RB
Standardized Warehouse
Estimated value of warehouse VES 29,281,529.10
City Covered Caracas
Indicator Venezuela, RB Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 11 15.5 12.7 None in 2018/19
Time (days) 434 191.2 152.3 None in 2018/19
Cost (% of warehouse value) 12.0 3.6 1.5 None in 2018/19
Building quality control index (0-15) 10.5 9.0 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Venezuela, RB – Score
76.0 0.0 39.8 70.0
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Venezuela, RB and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
70.7: Dominican Republic (Rank: 80)
63.2: Regional Average (Latin America & Caribbean)
60.0: Bolivia (Rank: 139)
52.5: Guyana (Rank: 167)
51.9: Brazil (Rank: 170)
46.5: Venezuela, RB (Rank: 175)
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.
Page 12Doing Business 2020 Venezuela, RB
Figure – Dealing with Construction Permits in Venezuela, RB – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
4
400
3.5
Cost (% of warehouse value)
350
3
300
Time (days)
2.5
250
2
200
1.5
150
100 1
50 0.5
0 0
1 *2 *3 *4 5 *6 7 8 9 * 10 * 11
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 13Doing Business 2020 Venezuela, RB
Figure – Dealing with Construction Permits in Venezuela, RB and comparator economies – Measure of Quality
14 13.0
12 10.5
Index score
10 8.4 9.0
8 7.0
6
4.0
4
2
0
Venezuela, Bolivia Brazil Dominican Guyana Latin
RB Republic America
&
Caribbean
Details – Dealing with Construction Permits in Venezuela, RB – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Request and obtain the assignment of the basic urban variables for land development 171 days USD 3
Agency : Dirección de Desarrollo Urbano y Catastro del Municipio
BuildCo must request assignment of the Basic Urban Variables, as stipulated by the Organic Law
for Urban Development. Alternatively, a preliminary consultation or an architectural draft is
prepared in order to assess compliance with the Basic Urban Variables for Buildings.
2 Request and obtain a certificate from the Zoning and Road Construction Division 144 days USD 3,000
Agency : Zoning and Road Construction Division
BuildCo must also obtain a certificate stating that the new project is compatible with the existing or
planned roads from the Zoning and Road Construction Division in order to obtain a certificate of
compliance with basic urban variables for buildings.
3 Request and obtain a Soil Test 20 days USD 10,000
Agency : Private Enterprise - Laboratory
A soil test is listed by "Norma Venezolana COVENIN 1618-98" as a requirement to obtain a
building permit and other procedures. In practice, contractors ask for a soil test to ensure that the
foundation of the building is solid. The engineer must understand the suitability of the soil for the
proposed construction work. A soil test is essential to build a solid foundation and prevent
structures from being damaged, collapsed or leaned.
4 Obtain a topographical map 15 days USD 3,000
Agency : Private engineer or qualified topographer
A topographic survey is required by Chapter H-15 of "Norma Venezolana COVENIN 1618-98".
Moreover, in practice, contractors will need a topographical survey to draw the site plan.
5 Request and obtain a certificate of compliance with basic urban variables for buildings 48 days no charge
Agency : Dirección de Desarrollo Urbano y Catastro del Municipio
The certificate of compliance with Basic Urban Variables is required to begin the construction.
6 Pay the corresponding fees at the bank 1 day USD 4,000
Agency : Commercial Bank
Municipal taxes and fees are paid at any commercial bank at which the municipality has an
account.
7 Notify intention to begin construction to Municipality 1 day no charge
Agency : Dirección de Desarrollo Urbano y Catastro del Municipio
After the payment has been made, BuildCo. notifies the Municipality its intent to begin the
warehouse construction.
8 Request and receive a fire inspection 1 day USD 2,000
Agency : Fire Department
Once construction has started, BuildCo. requests this inspection at the municipal fire station. The
fire inspection approval certificate is delivered by the Fire Department the day after the inspection
is performed, provided that the building complies with the Fire Department Regulations and the
Commission for Industrial Standards (COVENIN) standards. If the building does not comply with
these regulations, the Fire Department draws up a report stating that the inspection has not been
approved and detailing those aspects that must be corrected in the building in order to pass the
fire inspection.
Page 14Doing Business 2020 Venezuela, RB
9 Request and connect to water supply and sewage service 213 days USD 3,000
Agency : Hidrocapital
Water supply is obtained through connection to the sector’s main pipeline, following a request to
the corresponding company, which, in this case, is Hidrocapital. In some cases, buildings have
their own groundwater well, making it unnecessary to request water supply services from
Hidrocapital.
Connection to the sewage system depends on whether this service exists in the sector where the
building is located. If there is no sewage system, the Zoning and Road Construction Division
(Dirección de Desarrollo Urbano y Catastro) requires the installation of septic tanks or waste
treatment plants for wastes to be treated before being discharged into the environment.
Depending on the size of the building and its intended use, the appropriate permits must be
requested at the Ministry of People's Power for Environment (changed in 2007 from the Ministry of
the Environment and Natural Resources), because such wastes might have a negative impact on
the environment. Due to a backlog and a massive number of applications, this takes on average 6
months.
Receive final inspection and obtain construction completion certificate 16 days no charge
10 Agency : Dirección de Desarrollo Urbano y Catastro del Municipio
Once the construction has been completed, and installations made, BuildCo. can obtain a
construction completion certificate. To obtain the permit, the Fire Department certificate is
mandatory, as is compliance with all applicable regulations.
11 Register the building at the Subordinate Registry (Registro Subalterno) 16 days USD 10,000
Agency : Subordinate Registry (Registro Subalterno)
After the water supply and sewage services are instaleld, BuildCo. can register the new
warehouse at the Subordinate Registry (Registro Subalterno) during or after construction. The title
to the land on which the building is constructed and building plans must be submitted so Registry
officials can calculate the building registration fee.
Takes place simultaneously with previous procedure.
Page 15Doing Business 2020 Venezuela, RB
Details – Dealing with Construction Permits in Venezuela, RB – Measure of Quality
Answer Score
Building quality control index (0-15) 10.5
Quality of building regulations index (0-2) 1.5
How accessible are building laws and regulations in your economy? (0-1) Free of charge; In 0.5
official gazette; Not
easily accessible.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
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 compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 1.0
house engineer.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) 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) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company; Owner or
investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 0.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance .
Professional certifications index (0-4) 2.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans University degree in 1.0
or drawings are in compliance with existing building regulations? (0-2) architecture or
engineering; Being a
registered architect or
engineer.
What are the qualification requirements for the professional who supervises the construction on the ground? (0- University degree in 1.0
2) engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 16Doing Business 2020 Venezuela, RB
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 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final - Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:
• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials warehouse is located and requires works that involve 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
Cost required to complete each procedure (% of income per
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes 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 p.m. (8 hours
• Duration and frequency of power outages (0–3) 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 consumption is 26,880 kilowatt-hours
• Tools to monitor power outages (0–1) (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.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
• Regulatory monitoring of utilities’ performance (0–1)
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• 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 in the ranking
on the ease of getting electricity.
Page 17Doing Business 2020 Venezuela, RB
Getting Electricity - Venezuela, RB
Standardized Connection
Name of utility Corpoelec
Price of electricity (US cents per kWh) 123.8
City Covered Caracas
Indicator Venezuela, RB Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 6 5.5 4.4 3 (28 Economies)
Time (days) 208 66.8 74.8 18 (3 Economies)
Cost (% of income per capita) 650.7 407.2 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 0 4.4 7.4 8 (26 Economies)
Figure – Getting Electricity in Venezuela, RB – Score
50.0 17.4 92.0 0.0
Procedures Time Cost Reliability of supply and transparency of tariff index
Figure – Getting Electricity in Venezuela, RB and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
73.2: Bolivia (Rank: 96)
72.8: Brazil (Rank: 98)
71.7: Regional Average (Latin America & Caribbean)
68.0: Dominican Republic (Rank: 116)
45.9: Guyana (Rank: 170)
39.8: Venezuela, RB (Rank: 174)
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.
Figure – Getting Electricity in Venezuela, RB – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
700
200
600
Cost (% of income per capita)
150 500
Time (days)
400
100
300
200
50
100
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
Page 18Doing Business 2020 Venezuela, RB
reflected here, see the summary below.
Figure – Getting Electricity in Venezuela, RB and comparator economies – Measure of Quality
7
6 6
6
5
Index score
5 4.4
4
3
2
1
0 0
0
Venezuela, Bolivia Brazil Dominican Guyana Latin
RB Republic America
&
Caribbean
Page 19Doing Business 2020 Venezuela, RB
Details – Getting Electricity in Venezuela, RB – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Hire certified electrician to prepare design and submit application to Corpoelec 85 calendar days USD 500
Agency : Corpoelec
The application must be submitted with legal property titles, ID of the client and a draft design of
the connection made by a certified electrician ("electricista colegiado").
2 Receive external inspection by Corpoelec 1 calendar day USD 0
Agency : Corpoelec
Corpoelec carries out an external inspection to determine the connections works to be carried out
and if an expansion or extension of the network is needed. It is not compulsory although
recommended that the client and/or the client's electrician be present during the inspection.
A cost estimate is then sent to the client. The estimate must be paid at the premises of Corpoelec
with a check at the headquarters of Corpoelec in San Bernardino. A connection of less than 36
KvA does not need a project if the distance to the network is less than 12 meters for underground
connections and 30 meters for overhead.
3 Obtain excavation permit from municipality 90 calendar days USD 10
Agency : Municipality
The client must obtain an excavation permit for the underground connection from the Municipality.
In other cases, for an overhead connection a permit is not necessary but this must be explicitly
indicated in the design of the connection submitted by the applicant to the utility.
4 Pay estimate and await completion of external works by electrician 30 calendar days USD 37,330
Agency : Electrician
Once the estimate has been paid, Corpoelec ires a team to carry out the external works. As a
public enterprise, Corpoelec has to comply with public procurement rules when hiring the team,
which can take around 8 months. Corpoelec offers the possibility of the "mandato" in which the
client can hire himself an electrician to carry out the external works.
Corpoelec appoints an inspector who will watch the progress of the works and will sign the
certificate ("finiquito de obra") approving that the works meet the standards of Corpoelec. Under
the "mandato", the client pays the market price, thus the cost is higher than when Corpoelec
carries out the works, but reduces the time to obtain a connection.
5 Receive final inspection by Corpoelec 1 calendar day USD 0
Agency : Corpoelec
When the client opts for the "mandato", Corpoelec carries out a final inspection and delivers a
certificate of conformity of the works ("finiquito de obra").
6 Sign supply contract with Corpoelec 3 calendar days USD 0
Agency : Corpoelec
The client signs a supply contract with Corpoelec and can be exempted from the payment of the
security deposit if a bank account or credit card is registered to cover the monthly bill payment.
This can be done in any of the commercial offices of Corpoelec of Caracas.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2020 Venezuela, RB
Details – Getting Electricity in Venezuela, RB – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) ..
System average interruption frequency index (SAIFI) ..
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? No
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 exceed a certain cap? No
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? No
Link to the website, if available online n.a
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2020 Venezuela, RB
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 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures - Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30) industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
• 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 22Doing Business 2020 Venezuela, RB
Registering Property - Venezuela, RB
Indicator Venezuela, RB Latin America & OECD high Best Regulatory
Caribbean income Performance
Procedures (number) 10 7.4 4.7 1 (5 Economies)
Time (days) 53 63.7 23.6 1 (2 Economies)
Cost (% of property value) 2.6 5.9 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 5.5 12.0 23.2 None in 2018/19
Figure – Registering Property in Venezuela, RB – Score
25.0 75.1 82.6 18.3
Procedures Time Cost Quality of the land administration index
Figure – Registering Property in Venezuela, RB and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
67.2: Dominican Republic (Rank: 74)
55.7: Guyana (Rank: 128)
54.9: Regional Average (Latin America & Caribbean)
54.1: Brazil (Rank: 133)
50.3: Venezuela, RB (Rank: 145)
49.9: Bolivia (Rank: 148)
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.
Page 23Doing Business 2020 Venezuela, RB
Figure – Registering Property in Venezuela, RB – Procedure, Time and Cost
Time (days) Cost (% of property value)
1.6
50
1.4
Cost (% of property value)
40 1.2
Time (days)
1
30
0.8
20 0.6
0.4
10
0.2
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 24Doing Business 2020 Venezuela, RB
Figure – Registering Property in Venezuela, RB and comparator economies – Measure of Quality
18 16.3
16 14.5
14
Index score
12.0
12
10
7.0 7.5
8
5.5
6
4
2
0
Venezuela, Bolivia Brazil Dominican Guyana Latin
RB Republic America
&
Caribbean
Details – Registering Property in Venezuela, RB – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a cadastral certificate (ficha/cédula catastral) 20 days VES 50; (From 0.5 to 1.5
Agency : Cadaster office of the Municipality Tax Unit (Tax unit by
Obtaining a cadastral certificate is a requirement for conducting a property transaction. This has March 2019: VES 50))
the purpose of keeping an updated record of the ownership, the value and the physical
characteristics of the property. This procedure is regulated by the Geography, Cartography, and
Cadastral Law of March 28, 2000 (Chapter III, regarding the link between the Cadaster and the
Public Registry) and Resolution N°019 of the Ministry of Popular Power for the Interior, Justice
and Peace published on January 13, 2014 (Official Gazette N°40,332, regarding the requirements
for processing and registering transactions at the Public Registries). Caracas is made up of five
municipalities: Libertador, Chacao, Baruta, Sucre, and El Hatillo. The time and cost (from 0.5 to
1.5 Venezuelan Tax Unit) to complete this procedure varies depending on the municipality that has
the territorial jurisdiction to issue the cadastral certificate.
2 Obtain a certificate of solvency from the Venezuelan Institute of Social Security (IVSS) Less than one day, No cost
Agency : Venezuelan Social Security Institute ("IVSS") online
Registration with the Social Security Institute is mandatory in Venezuela. This certificate of
solvency can be obtained online through the IVSS website, by providing the company's IVSS
number. If the company is already registered with the IVSS, the certificate will be issued online
immediately.
3 Obtain the Municipal Solvency Certificate at the Municipality 3 days VES 65; (1 Tax Unit for
Agency : Municipality administrative fees + 0,3
The Municipal Solvency Certificate (“Certificado de Solvencia Municipal”) ascertains whether a Tax Units (Tax unit by
Property has any outstanding debts with the corresponding Tax administration. It must be obtained
March 2019: VES 50))
at the pertinent tax authority of the municipality where the immovable property is located. For this,
the seller must request the statement of account of the immovable property that it wishes to
dispose of and proceed to the pertinent payment.
4 Obtain a certificate of solvency from the water company 3 days VES 15; (0.3 Tax Units
Agency : Water Company (Tax unit by March 2019:
The seller presents his latest water bill that he has paid in order to obtain a certificate of solvency VES 50))
("solvencia de servicio") from the water company (Hidrocapital is the main supplier in the
municipalities that conform Caracas). The Certificate is valid for 30 days.
5 Obtain a non-encumbrance certificate for the last 10 years from Registry 3 days VES 420; (3 Tax Units for
Agency : Public Registry the first year + 0.6 Tax
The certificate of encumbrances is not legally required, but it is usually obtained in practice (and Units for each additional
requested by the purchaser). This example is a case of a title that covers the last ten years of the
year (10 years needed))
property.
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