doing business 2011-uae

8/7/2019 Doing Business 2011-UAE

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Benin


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2011 The International Bank for Reconstruction and Development / The World Bank1818 H Street NWWashington, DC 20433Telephone 202-473-1000Internet www.worldbank.org

All rights reserved.1 2 3 4 08 07 06 05

A copublication of The World Bank and the International Finance Corporation.

This volume is a product of the staff of the World Bank Group. The findings, interpretations and conclusionsexpressed in this volume do not necessarily reflect the views of the Executive Directors of the World Bank or thegovernments they represent. The World Bank does not guarantee the accuracy of the data included in this work.

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Additional copies ofDoing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010:Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to

Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth andDoing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org.

ISBN: 978-0-8213-7960-8E-ISBN: 978-0-8213-8630-9DOI: 10.1596/978-0-8213-7960-8ISSN: 1729-2638

Library of Congress Cataloging-in-Publication data has been applied for.Printed in the United States


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Current featuresNews on the Doing Business project

http://www.doingbusiness.org

RankingsHow economies rank-from 1 to 183

http://www.doingbusiness.org/rankings/

Business reformersShort summaries of DB2011 business reforms, lists of reformers

since DB2004 and a ranking simulation tool

http://www.doingbusiness.org/reforms/

Historical dataCustomized data sets since DB2004

http://www.doingbusiness.org/custom-query/

Methodology and researchThe methodologies and research papers underlying Doing Business

http://www.doingbusiness.org/Methodology/

Download reportsAccess to Doing Business reports as well as subnational and regional

reports, reform case studies and customized country and regional

profiles

http://www.doingbusiness.org/reports/

Subnational and regional projectsDifferences in business regulations at the subnational and regional

level

http://www.doingbusiness.org/subnational-reports/

Law libraryOnline collection of business laws and regulations relating to

business and gender issues

http://www.doingbusiness.org/law-library/

http://wbl.worldbank.org/

ContributorsMore than 8,200 specialists in 183 economies who participate in

Doing Business

http://www.doingbusiness.org/contributors/Doing-Business/

Business PlanetInteractive map on the ease of doing business

http://rru.worldbank.org/businessplanet

Contents

Introduction

and Aggregate Rankings

5 - Year Measure of

Cumulative Change

Starting a Business

Dealing with

Construction Permits

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Closing a Business

Doing Business 2011

Business Reforms


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1

Doing Business 2011: Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulationsthat enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations

and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time.

A set of regulations affecting 9 stages of a business s life are measured: starting a business, dealing with construction permits,registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing abusiness. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes andidentify what reforms have worked, where, and why.

The Doing Business methodology has limitations. Other areas important to business such as an economy s proximity to largemarkets, the quality of its infrastructure services (other than those related to trading across borders), the security of property fromtheft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength ofinstitutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to aspecific type of business, generally a local limited liability company operating in the largest business city. Because standardassumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlightthe extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers indesigning reform.

The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe andCentral Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECDhigh-income economies.

The following pages present the summary Doing Business indicators for Benin. The data used for this economy profile come fromthe Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each region notonly with one another but also with the good practice economy for each indicator.

The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacityto provide good examples of business regulation to other countries. These good-practice economies do not necessarily ranknumber 1 in the topic or indicator, but they are in the top 10.

More information is available in the full report. Doing Business 2011: Making a Difference for Entrepreneurs presents theindicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information onordering the report, are available on the Doing Business website (www.doingbusiness.org).

* Except for the Paying Taxes indicator, which covers the period January to December of 2009.

Note: Doing Business 2010 data and rankings have been recalculated to reflect changes to the methodology.


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Economy Rankings - Ease of Doing Business

Benin's ranking in Doing Business 2011

Benin - Compared to global good practice economy as well as selected economies:

Benin is ranked 170 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.

Doing Business 2011

Ease of Doing Business 170

Starting a Business 157

Dealing with Construction Permits 125

Registering Property 129

Getting Credit 152

Protecting Investors 154

Paying Taxes 167

Trading Across Borders 127

Enforcing Contracts 177

Closing a Business 118

Rank

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Summary of Indicators - Benin

Starting a Business Procedures (number) 7

Time (days) 31

Cost (% of income per capita) 152.6

Paid-in Min. Capital (% of income per capita) 285.3

Dealing with Construction Permits Procedures (number) 15

Time (days) 320

Cost (% of income per capita) 249.6

Registering Property Procedures (number) 4

Time (days) 120

Cost (% of property value) 11.8

Getting Credit Strength of legal rights index (0-10) 3

Depth of credit information index (0-6) 1

Public registry coverage (% of adults) 10.4

Private bureau coverage (% of adults) 0.0

Protecting Investors Extent of disclosure index (0-10) 6

Extent of director liability index (0-10) 1

Ease of shareholder suits index (0-10) 3Strength of investor protection index (0-10) 3.3

Paying Taxes Payments (number per year) 55

Time (hours per year) 270

Profit tax (%) 14.8

Labor tax and contributions (%) 27.3

Other taxes (%) 23.9

Total tax rate (% profit) 66.0

Trading Across Borders Documents to export (number) 7

Time to export (days) 30

Cost to export (US$ per container) 1251

Documents to import (number) 7

Time to import (days) 32

Cost to import (US$ per container) 14003


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Enforcing Contracts Procedures (number) 42

Time (days) 825

Cost (% of claim) 64.7

Closing a Business Recovery rate (cents on the dollar) 20.2

Time (years) 4.0

Cost (% of estate) 22


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The 5-year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies* from

Doing Business 2006to Doing Business 2011. Instead of highlighting which economies currently have the most business friendly

environment, this new approach shows the extent to which an economys regulatory environment for business has changed compared

with 5 years ago.

This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006and DoingBusiness 2011.

This snapshot reflects all cumulative changes in an economys business regulation as measured by the Doing Business indicators --such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection indexthanks to new stock exchange rules that tighten disclosure requirements for related-party transactions.

0.08

0.12

0.16

0.20

0.24

0.28

0.32

0.36

BurkinaFaso

Mali Ghana Nigeria Cted'Ivoire

Benin

Doing

business has

become

easier

DB change score

Note: This year's DB change score ranges from -0.1 to 0.54. More details on how the DB change score is constructed can be foundin the methodology section of the website.

* Bahrain, The Bahamas, Brunei, Cyprus, Kosovo, Liberia, Luxembourg, Montenegro and Qatar do not feature in the new metricbecause they were included in the Doing Business report in years subsequent to the Doing Business 2005 report and hence, 5 yearsof data are not yet available.


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1. Benchmarking Starting a Business Regulations

Benin is ranked 157 overall for Starting a Business.

Ranking of Benin in Starting a Business - Compared to good practice and selected economies:

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Procedures

(number)

Time (days) Cost (% of

income per

capita)

Paid-in Min.

Capital (% of

income per

capita)

Denmark 0.0

New Zealand 1 1 0.0

Good Practice

Economies

Benin 7 31 152.6 285.3

Selected Economy

Burkina Faso 4 14 49.8 416.2

Cte d'Ivoire 10 40 133.0 202.9

Ghana 7 12 20.3 11.0

Mali 6 8 79.7 306.8

Ni eria 8 31 78.9 0.0

Comparator Economies

The following table shows Starting a Business data for Benin compared to good practice and comparator economies:

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Starting a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 154 157

Procedures (number) 7 7 7 7

Time (days) 31 31 31 31

Cost (% of income per capita) 195.0 196.0 155.5 152.6

Paid-in Min. Capital (% of income per capita) 354.2 347.0 290.8 285.3

2. Historical data: Starting a Business in Benin

3. Starting a Business sub indicators in Benin over the past 4 years

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4. Overview of the steps to Starting a Business in Benin

It requires 7 procedures, takes 31 days, and costs 152.61 % GNI per capita to start a business in Benin.

No: ProcedureTime to complete

(days)Cost to complete

Verify the company name1 1 included in thenotary fees

Subscribe and deposit capital in a bank, obtain a receipt2 1 no charge

Obtain criminal records (casier judiciaire) for the foundersfrom the Court

3 2 FCFA 500

Have a notary public notarize the instrument ofincorporation

4 3 FCFA 250,000

Register the company at the Company Registry(Immatriculation au Registre du Commerce et du Credit

Mobilier) by going to the Court Registrar (Greffe duTribunal)

5 3 FCFA 77900

File documents with the Centre des Formalits desEntreprises (CFE)

6 20 FCFA 165,000 +Professional tax (13-26% of propertyvalue)

Publish formation notice in the official gazette7 1 about FCFA 40,000

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Procedure Verify the company name1

Time to complete(days): 1

Cost to complete: included in the notary fees

Comment: In Benin, as in all member countries of the Organization for the Harmonization of Business Law inAfrica (OHADA), any company must choose a unique company name before it is registered in the

trade register.Procedure Subscribe and deposit capital in a bank, obtain a receipt2


Cost to complete: no charge

Comment:

Procedure Obtain criminal records (casier judiciaire) for the founders from the Court3

5. Details on Starting a Business in Benin

This table summarizes the procedures and costs associated with setting up a business in Benin.

STANDARDIZED COMPANYLegal Form: Limited Liability Company, Socit Responsabilit Limite(SARL)

Paid-in Minimum Capital: 285.3City: Cotonou

(% of income per capita)

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Cost to complete: FCFA 500

Comment:

Procedure Have a notary public notarize the instrument of incorporation4


Cost to complete: FCFA 250,000

Comment: According to OHADA law, company statutes are executed by notary deed. The founders mustprovide the public notary with the following documents:- Banking document, showing proof of the authorized capital.- Passport or national identity card of each associate.- The official report of the general assembly on the constitution of the company, duly signed by theassociates, including the denomination, the social object, the company seat, and the statutorymanagers name.

The notary fee ranges from XOF 150,000 to XOF 500,000, depending on company capital.

Procedure Register the company at the Company Registry (Immatriculation au Registre duCommerce et du Credit Mobilier) by going to the Court Registrar (Greffe duTribunal)

5


Cost to complete: FCFA 77900

Comment: In practice it is the notary that registers the company at the Commercial Registrar.

Procedure File documents with the Centre des Formalits des Entreprises (CFE)6


Cost to complete: FCFA 165,000 + Professional tax (13 -26% of property value)

Comment: Centre des Formalits des Entreprises (CFE) is a single access point that allows the founders tocarry out, in a single location, key legal requirements such as the tax declaration, import license,trademans card, registration with the Ministry of Trade, and affiliation with the Social SecurityOffice (Office Bninois de Scurit Sociale, OBSS).

The following documents are to be submitted:- Statutes attested by a notary in four duly signed original samples.- Revenue stamp of XOF 1,000.- Managers recent criminal record (no more than 3 months old).- Legalized copy of the founders identification card or passport.- Banking document (justificatif bancaire), evidencing company capital.- Three recent identification photographs of the founders (past 3 months).- Legalized copy of the residence permit (for foreigners).- Printed form of social security, if employees are recruited.

The total cost breakdown is as follows:- Deposit of the memorandum and articles of association: XOF 5,000.- Registration at the Commercial Registrar: XOF 10,000.- Annual contribution of Chambre de Commerce et d'Industrie du Benin (CCIB): XOF 50,000.- Contribution to the Chamber of Commerce and Industry of Benin: XOF 25,000.- Publication of formation notice in the Official Gazette: XOF 40,000.- Provision (Centre des Formalits des Entreprises, CFE): XOF 40,000.

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- Revenue stamp (Timbre fiscal): XOF 1,000.- Registration at national insurance: about XOF 34,500.

The social security contribution is 23% of the total amount of the monthly base salary if the salaryis XOF 50,000 for each employee. The Social Security Office is now computerized. It is thuspossible to affiliate a company in one day. The employee book is delivered in 2 to 3 months.

Procedure Publish formation notice in the official gazette7


Cost to complete: about FCFA 40,000

Comment: According to OHADA, only one publication is required. In practice, notary publics still publishtwo advertisements, the first on company objectives and the second on trade registration. If thenotary organizes the publication, it is published in La Nation. If the CFE organizes thepublication, it is published in the Official Gazette. The cost is XOF 40,000 for a single publicationand XOF 52,000 for two publications.

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1. Benchmarking Dealing with Construction Permits Regulations

Benin is ranked 125 overall for Dealing with Construction Permits.

Ranking of Benin in Dealing with Construction Permits - Compared to good practice and selected economies:

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Procedures

(number)


income per

capita)

Denmark 6

Qatar 0.8

Singapore 25

Good Practice

Economies

Benin 15 320 249.6

Selected Economy

Burkina Faso 15 122 576.1

Cte d'Ivoire 21 592 227.6

Ghana 18 220 1017.7

Mali 15 168 505.0

Ni eria 18 350 597.5


The following table shows Dealing with Construction Permits data for Benin compared to good practice and comparatoreconomies:

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Dealing with Construction Permits data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 134 125


Time (days) 332 410 410 320

Cost (% of income per capita) 316.6 303.6 254.4 249.6

2. Historical data: Dealing with Construction Permits in Benin

3. Dealing with Construction Permits sub indicators in Benin over the past 4 years

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4. Overview of the steps to Building a Warehouse in Benin

It requires 15 procedures, takes 320 days, and costs 249.62 % GNI per capita to build a warehouse in Benin.



Legalize the property title at a notary1 1 day XOF 5,000

Obtain zoning certificate2 30 days no charge

Obtain approval and proof of membership from the Order ofarchitects (Attestation dappartenance a lordre desarchitectes)

3 1 day XOF 20,000

Obtain building permit4 90 days XOF 292,635

Receive random municipal inspection5 1 day no charge

Obtain occupation certificate6 45 days no charge

Apply for telephone connection7 1 day XOF 105,300

Receive on-site inspection to assess cost8 1 day no charge

Obtain telephone connection9 150 days no charge

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Apply for water connection10 * 1 day XOF 50,000

SNEB inspects site to assess cost11 1 day no charge

Obtain water connection12 51 days no charge

Apply for electricity connection13 * 1 day XOF 402,000

SNEE inspects site to assess cost14 1 day no charge

Obtain electricity connection15 45 days no charge

* Takes place simultaneously with another procedure.

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Procedure Legalize the property title at a notary1

Time to complete: 1 day

Cost to complete: XOF 5,000

Agency: Notary

Comment: BuildCo must present a proof of ownership of the land it intends to build on. Buildingpermit applicants have two options: give an original issued by the Land Registry orsubmit a legalized version of the original title deed. In practice, most companies choosethe second, as this is faster and cheaper. Title deeds can be legalized by a notary, thecourt, or the issuing authority (i.e. the Land Registry).

Procedure Obtain zoning certificate2

Time to complete: 30 days


Agency: Muncipality

Comment: When there is a zoning plan (and this might be 60% of Cotonou, but the outskirts areoften not yet zoned), it is optional to get a zoning certificate (because the commission cancheck correspondence with the zoning plan ex-officio). However, not having the

BUILDING A WAREHOUSEEstimated warehouse value:XOF 390,180,000City: Cotonou

The table below summarizes the procedures, time, and costs to build a warehouse in Benin.

5. Details on Building a Warehouse in Benin

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certificate is at your own risk and in practice one gets it. For this you fill out a form at themunicipality. For parts of Cotonou where there is no zoning plan, you must get a zoningcertificate (certificat durbanisme) (art. 9). For this you go to the directeur departmentalcharge de lurbanisme, which is at the national level (art. 11 of Decree No. 2007-284 ofJune 16, 2007). The certificate is valid for 4 years (i.e. as long as the building permit).However, if between obtaining and submitting the certificate the zoning plan changes, youwill need to go back to get a new zoning certificate.

Procedure Obtain approval and proof of membership from the Order of architects (Attestation

dappartenance a lordre des architectes)

3



Agency: Order of Architects

Comment: BuildCo needs to go with the building dossier to the order of architects. They will reviewthe plan and if they approve the plan, they give you your certificate that proves yourmembership at the order of architects. One needs to submit an original of this proof ofmembership again with every building permit application. De facto this proof ofmembership serves as an external review of the building plans and is necessary for all

buildings larger than 150 square meters, that receive public or that have many stories.

Procedure Obtain building permit4



Agency: Municipality

Comment: BuildCo completes the application form, while the architect compiles the dossier andsubmits it to the municipality. In this case study, the plan and the dossier can beestablished by a company architect, assuming that the person is registered with the

National Order of Architects. The dossier comprises the following: - Technical plans. -Property title. - Cost proposal. All permit applications are addressed to the municipality.However, for construction projects deemed of "national character, applications are,addressed to the Ministry of Environment and Housing and Urban Planning (Ministre delEnvironnement, de lHabitat et de lUrbanisme, MEHU), according to Article 30 ofDecree No. 89112 of March 24, 1989. Once deposited at the municipality, the dossier isreviewed by the following organs: - Fire services. - Health services. - Urban planning(Direction de lUrbanisme). Each agency has a week to review the dossier. Subsequently,a commission meets to make the final decision. The official time limit is 3 months, afterwhich the silent-is-consent rule applies.

Procedure Receive random municipal inspection5




Comment: The inspections are provided for by law and may occur at random during construction.The number of inspections depends on the projects visibility.

Procedure Obtain occupation certificate6

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Comment:

Procedure Apply for telephone connection7



Agency: Office des Postes et Tlcommunications

Comment:

Procedure Receive on-site inspection to assess cost8




Comment: After the deposit of the application form, an onsite inspection is conducted to assess theconnection fee. This estimate can take between 3 days and a month to prepare.

Procedure Obtain telephone connection9




Comment: In this monopolistic economy, setting up a ground line can take from 150 days to 2 years.As a result, most firms resort to mobile telephones.

Procedure Apply for water connection10



Agency: Socit Nationale des Eaux du Bnin (SONEG)

Comment: One can obtain the form immediately, but the national water company (Socit Nationaled'Eau du Bnin, SNEB) usually inspects the site in 12 weeks.

Procedure SNEB inspects site to assess cost11

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Comment:

Procedure Obtain water connection12




Comment: After the inspection, it takes about 2 weeks to obtain the cost proposal. The waterconnection is established within 30 days of payment. The wait depends on theconstruction companys diligent and persistent follow through on the connection.

Procedure Apply for electricity connection13



Agency: Socit Bninoise dEnergie Electrique (SBEE)

Comment: After depositing the application form, the authority inspects the site to estimate the cost.The application can be obtained immediately, but SNEB usually inspects the site after12 weeks. Payment is due once the cost proposal is obtained (usually in 2 weeks).

Procedure SNEE inspects site to assess cost14




Comment: The inspection is conducted by the electricity utility (Socit Nationale d'Energielectrique, SNEE).

Procedure Obtain electricity connection15




Comment: Similar to the water connection, it takes about 2 weeks after the inspection to obtain thecost proposal. Following the payment, the electrical connection is established within 30days. The timeline from application to final connection may vary depending on theconstruction companys diligence and persistence in following up with the national powercompany (Socit Bninoise dElectricit et dEau, SBEE).

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1. Benchmarking Registering Property Regulations

Benin is ranked 129 overall for Registering Property.

Ranking of Benin in Registering Property - Compared to good practice and selected economies:

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Procedures

(number)


property

value)

New Zealand 2

Norway 1

Saudi Arabia 0.0

Good Practice

Economies

Benin 4 120 11.8

Selected Economy



Ghana 5 34 1.0

Mali 5 29 11.9

Ni eria 13 82 20.9


The following table shows Registering Property data for Benin compared to good practice and comparator economies:

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Registering Property data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 128 129


Time (days) 120 120 120 120

Cost (% of property value) 11.9 11.9 11.8 11.8

2. Historical data: Registering Property in Benin

3. Registering Property sub indicators in Benin over the past 4 years

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4. Overview of the steps to Registering Property in Benin

It requires 4 procedures, takes 120 days, and costs 11.79 % of property value to register the property in Benin.



The notary checks the Property Title at the "Service desDomaines"

1 2 days BTN 1,500

The sale agreement is signed and authenticated at the publicnotary

2 2 days Official Notary feeschedule, accordingto the property value,is as follows 0 to5.000.000 =5.000.000 x 4,5%5.000.001 to20.000.000 =15.000.000 x 3%20.000.001 to50.000.000 =

30.000.000 x 1,5%50.000.001 to =diffrence x 0,75%

Registration of the sale deed at the Registry of Deeds3 3 days 8% of property value+ Stamp Duty of 800XOF per page (It isassumed the SaleDeed consists of 4pages, and 3 copiesare required.)

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The buyer files for a transfer of title at the "Service desDomaines"

4 3 - 4.5 months 0.3% of propertyvalue

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Procedure The notary checks the Property Title at the "Service des Domaines"1


Cost to complete: BTN 1,500

Agency: Cadastre (Direction des Domaines, de l'enregistrement et du Timbre)

Comment: Seller brings the title or gives the number of the title to the notary. Notary sends requisitionto Service des Domaines, so that the Service tells them about the ownership and the pendingencumbrances on the property in writing.

Procedure The sale agreement is signed and authenticated at the public notary2


Cost to complete: Official Notary fee schedule, according to the property value, is as follows 0 to 5.000.000= 5.000.000 x 4,5% 5.000.001 to 20.000.000 = 15.000.000 x 3% 20.000.001 to50.000.000 = 30.000.000 x 1,5% 50.000.001 to = diffrence x 0,75%

Comment: Parties file the sale agreement at the public notary where they sign the contract and the sale isauthenticated.The scale of fees to pay is as follows, according to the property value:

STANDARDIZED PROPERTY

Property Value: XOF 17,525,240.03City: Cotonou

This topic examines the steps, time, and cost involved in registering property in Benin.

5. Details on Registering Property in Benin

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0 - 5 million francs: 4.5%,5 - 20 million francs: 3%,20 - 50 million francs: 1.5%,50 million francs and above: 0.75%.

Procedure Registration of the sale deed at the Registry of Deeds3


Cost to complete: 8% of property value + Stamp Duty of 800 XOF per page (It is assumed the Sale Deedconsists of 4 pages, and 3 copies are required.)

Agency: Registry of Deeds

Comment: During this step the registry verifies if there are any encumbrances still linked to the propertyand if the transfer is valid. The registration tax was lowered from 12% to 8% property valuewith the new Finance Law of 2007, which also raised stamp duties from 300 to 800F per page.

Procedure The buyer files for a transfer of title at the "Service des Domaines"4

Time to complete: 3 - 4.5 months

Cost to complete: 0.3% of property value

Agency: Cadastre (Direction des Domaines, de l'enregistrement et du Timbre)

Comment: The long delay is due to the workload of the only one cadastre serving all of Benin. Articles943 et 949 du Code Gnral des Impts.The government is sponsoring the transformation of possessory titles into property titles incertain zones (the state pays for 400.000 out of the 500.000 CFA it normally costs). This onlyconcerns 2% of the land so far. The project proceeds zone by zone and all the inhabitants ofthe zone need to agree with the plan before it starts.

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1. Benchmarking Getting Credit Regulations

Benin is ranked 152 overall for Getting Credit.

Ranking of Benin in Getting Credit - Compared to good practice and selected economies:

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Strength of

legal rights

index (0-10)

Depth of

credit

information

index (0-6)

Public

registry

coverage (%

of adults)

Private

bureau

coverage (%

of adults)

New Zealand 100.0

Portugal 67.1

Singapore 10

United Kingdom 6

Good Practice

Economies

Benin 3 1 10.4 0.0

Selected Economy

Burkina Faso 3 1 0.2 0.0

Cte d'Ivoire 3 1 0.2 0.0

Ghana 8 3 0.0 10.3

Mali 3 1 0.1 0.0

Ni eria 8 0 0.0 0.0


The following table shows Getting Credit data for Benin compared to good practice and comparator economies:

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Getting Credit data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 150 152

Strength of legal rights index (0-10) 3 3 3 3

Depth of credit information index (0-6) 1 1 1 1

Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0

Public registry coverage (% of adults) 7.8 10.5 10.9 10.4

2. Historical data: Getting Credit in Benin

3. Getting Credit sub indicators in Benin over the past 4 years

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4. Details on Getting Credit in Benin

The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of creditregistries in Benin.

Getting Credit Indicators (2010) Indicator

Private credit

bureau

Public credit

registry1Private bureau coverage (% of adults)

Are data on both firms and individuals distributed? 1No Yes

Are both positive and negative data distributed? 0No No

Does the registry distribute credit information from retailers, tradecreditors or utility companies as well as financial institutions?

0No No

Are more than 2 years of historical credit information distributed? 0No No

Is data on all loans below 1% of income per capita distributed? 0No No

Is it guaranteed by law that borrowers can inspect their data in thelargest credit registry?

0No No

Coverage 10.40.0

Number of individuals 0 19,951

Number of firms 0 764

Number of individuals 0 19,951

Number of firms 0 764

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3Strength of legal rights index (0-10)

Can any business use movable assets as collateral while keeping possession of the assets; and any financialinstitution accept such assets as collateral ?

Yes

Does the law allow businesses to grant a non possessory security right in a single category of movable assets,without requiring a specific description of collateral?

No

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, withoutrequiring a specific description of collateral?

Yes

May a security right extend to future or after-acquired assets, and may it extend automatically to the products,proceeds or replacements of the original assets ?

No

Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligationsand debts can be secured by stating a maximum amount rather than a specific amount between the parties ?

Yes

Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by thegrantor's name of a security right ?

No

Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? No

Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No

During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? No

Does the law authorize parties to agree on out of court enforcement? No

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1. Benchmarking Protecting Investors Regulations

Benin is ranked 154 overall for Protecting Investors.

Ranking of Benin in Protecting Investors - Compared to good practice and selected economies:

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Strength of

investor

protection

index (0-10)

New Zealand 9.7

Good Practice

Economies

Benin 3.3

Selected Economy

Burkina Faso 3.7

Cte d'Ivoire 3.3

Ghana 6.0

Mali 3.7

Ni eria 5.7


The following table shows Protecting Investors data for Benin compared to good practice and comparator economies:

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Protecting Investors data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 153 154

Strength of investor protection index (0-10) 3.3 3.3 3.3 3.3

2. Historical data: Protecting Investors in Benin

3. The following graph illustrates the Protecting Investors index in Benin compared to best practice

and selected Economies:

9.7

6.0

5.7

3.7

3.7

3.3

3.3

NewZe

aland

Ghana

Nigeria

Mali

Burkina

Faso

Cted'Ivoir

eBe

nin

Note: The higher the score, the greater the investor protection.

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The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes arecalculated in Benin.

4. Details on Protecting Investors in Benin

Protecting Investors Data (2010) Indicator

Extent of disclosure index (0-10) 6

What corporate body provides legally sufficient approval for the transaction? 3

Whether immediate disclosure of the transaction to the public and/or shareholders isrequired?

0

Whether disclosure of the transaction in published periodic filings (annual reports) isrequired?

2

Whether disclosure of the conflict of interest by Mr. James to the board of directors isrequired?

1

Whether an external body must review the terms of the transaction before it takes place?0

Extent of director liability index (0-10) 1

Whether shareholders can hold Mr. James liable for the damage that the Buyer-Sellertransaction causes to the company?

0

Whether shareholders can hold the approving body (the CEO or board of directors) liable forthe damage that the Buyer-Seller transaction causes to the company?

0

Whether a court can void the transaction upon a successful claim by a shareholder plaintiff?0

Whether Mr. James pays damages for the harm caused to the company upon a successfulclaim by the shareholder plaintiff?

0

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Whether Mr. James repays profits made from the transaction upon a successful claim by theshareholder plaintiff?

0

Whether fines and imprisonment can be applied against Mr. James?0

Whether shareholders can sue directly or derivatively for the damage that the Buyer-Sellertransaction causes to the company?

1

Ease of shareholder suits index (0-10) 3

Whether the plaintiff can obtain any documents from the defendant and witnesses duringtrial?

2

Whether the plaintiff can directly question the defendant and witnesses during trial?1

Whether the plaintiff can request categories of documents from the defendant withoutidentifying specific ones?

0

Whether shareholders owning 10% or less of Buyer's shares can request an inspector toinvestigate the transaction?

0

Whether the level of proof required for civil suits is lower than that of criminal cases? 0

Whether shareholders owning 10% or less of Buyer's shares can inspect transactiondocuments before filing suit?

0

Strength of investor protection index (0-10)3.3

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1. Benchmarking Paying Taxes Regulations

Benin is ranked 167 overall for Paying Taxes.

Ranking of Benin in Paying Taxes - Compared to good practice and selected economies:

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Payments

(number per

year)

Time (hours

per year)

Total tax rate

(% profit)

Maldives 3 0

Timor-Leste 0.2

Good Practice

Economies

Benin 55 270 66.0

Selected Economy



Ghana 33 224 32.7

Mali 59 270 52.2

Ni eria 35 938 32.2


The following table shows Paying Taxes data for Benin compared to good practice and comparator economies:

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Paying Taxes data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 166 167

Total tax rate (% profit) 73.3 73.2 73.3 66.0

Payments (number per year) 55 55 55 55

Time (hours per year) 270 270 270 270

2. Historical data: Paying Taxes in Benin

3. Paying Taxes sub indicators in Benin over the past 4 years

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The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold ina given year in Benin, as well as measures of administrative burden in paying taxes.

4. Details on Paying Taxes in Benin

Tax or mandatory

contribution

Payments

(number)

Notes on

Payments

Time

(hours)

Statutory tax

rate

Tax

base

Totaltax rate

(% profit)

Notes on

TTR

paper sizeXOF 350, or600 or 12001Stamp duty

rental valueof building

min XOF500-max

XOF 8,000

1Tax on collection of dirt

value added18.0%12012Value added tax (VAT)

square meterof billposting

XOF150-10000

per day

1Advertising tax

0.20included infuel price

1Fuel tax

0.40insurancepremium

20.0%1Tax on insurancecontracts

0.40interestincome

15.0%1Tax on interest

2.50book value5.0%3Single property tax(undeveloped land)

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3.00book value4-6%3Property tax onundeveloped land

4.20nature ofcompany'sactivities

fixed fee +proportional

duty onprofessional

premises

2Business license tax

5.40gross salaries

plus socialsecuritycontributions

4.0%12Payroll tax

5.90book value6.0%0Single property tax(developed land)

7.30book value15-30%paid jointlywithanother tax

0Property tax ondeveloped land

14.80taxable profit30.0%305Corporate income tax

21.90gross salaries19.4%12012Social securitycontributions

Totals 55 270 66.0

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1. Benchmarking Trading Across Borders Regulations

Benin is ranked 127 overall for Trading Across Borders.

Ranking of Benin in Trading Across Borders - Compared to good practice and selected economies:

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Documents to

export

(number)

Time to

export (days)

Cost to

export (US$

per

container)

Documents to

import

(number)

Time to

import (days)

Cost to

import (US$

per

container)

Denmark 5

France 2 2

Malaysia 450

Singapore 4 439

Good Practice

Economies

Benin 7 30 1251 7 32 1400

Selected Economy

Burkina Faso 10 41 2412 10 49 4030

Cte d'Ivoire 10 25 1969 9 36 2577

Ghana 6 19 1013 7 29 1203

Mali 7 26 2202 10 31 3067

Ni eria 10 24 1263 9 39 1440


The following table shows Trading Across Borders data for Benin compared to good practice and comparator economies:

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Trading Across Borders data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 128 127

Cost to export (US$ per container) 1167 1237 1251 1251

Cost to import (US$ per container) 1202 1393 1400 1400

Documents to export (number) 7 7 7 7

Documents to import (number) 7 7 7 7

Time to export (days) 34 32 30 30

Time to import (days) 38 37 32 32

2. Historical data: Trading Across Borders in Benin

3. Trading Across Borders sub indicators in Benin over the past 4 years

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These tables list the procedures necessary to import and export a standardized cargo of goods in Benin. The documentsrequired to export and import the goods are also shown.

4. Details on Trading Across Borders in Benin

Nature of Export Procedures (2010) Duration (days) US$ Cost

Documents preparation 15 124

Customs clearance and technical control 5 225

Ports and terminal handling 6 582

Inland transportation and handling 4 320

Totals 30 1251

Nature of Import Procedures (2010) Duration (days) US$ Cost

Documents preparation 20 248

Customs clearance and technical control 4 250

Ports and terminal handling 5 320

Inland transportation and handling 3 582

Totals 32 1400

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Export

Bill of lading

Certificate of origin

Commercial invoice

Customs export declaration (DAE)

Domiciliacion de vente a la banque

Packing list

Technical standard/health certificate

Import

Bill of lading

Certificate of origin

Commercial invoice

Pre-shipment inspection clean report of findings

Customs import declaration

Phytosanitary certificate

Packing list

Documents for Export and Import

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1. Benchmarking Enforcing Contracts Regulations

Benin is ranked 177 overall for Enforcing Contracts.

Ranking of Benin in Enforcing Contracts - Compared to good practice and selected economies:

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Procedures

(number)


claim)

Bhutan 0.1

Ireland 20

Singapore 150

Good Practice

Economies

Benin 42 825 64.7

Selected Economy



Ghana 36 487 23.0

Mali 36 620 52.0

Ni eria 40 457 32.0


The following table shows Enforcing Contracts data for Benin compared to good practice and comparator economies:

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Enforcing Contracts data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 177 177


Time (days) 825 825 825 825

Cost (% of claim) 64.7 64.7 64.7 64.7

2. Historical data: Enforcing Contracts in Benin

3. Enforcing Contracts sub indicators in Benin over the past 4 years

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4. Details on Contract Enforcement in Benin

This topic looks at the efficiency of contract enforcement in Benin.

IndicatorNature of Procedure (2010)

("Tribunal de Premire Instance de Premire Classe deCotonou, Chambre Commerciale")

Cotonou First Instance Court,Commercial Chamber

Court information:

Procedures (number) 42

Time (days) 825

Filing and service 30.0

Trial and judgment 480.0

Enforcement of judgment 315.0

Cost (% of claim)* 64.70

Attorney cost (% of claim) 17.3

Court cost (% of claim) 36.5

Enforcement Cost (% of claim) 10.9

* Claim assumed to be equivalent to 200% of income per capita.

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1. Benchmarking Closing Business Regulations

Benin is ranked 118 overall for Closing a Business.

Ranking of Benin in Closing Business - Compared to good practice and selected economies:

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Recovery rate

(cents on the

dollar)

Time (years) Cost (% of

estate)

Ireland 0.4

Japan 92.7

Singapore 1

Good Practice

Economies

Benin 20.2 4.0 22

Selected Economy

Burkina Faso 26.8 4.0 9

Cte d'Ivoire 32.8 2.2 18

Ghana 23.7 1.9 22

Mali 24.6 3.6 18

Ni eria 26.8 2.0 22


The following table shows Closing Business data for Benin compared to good practice and comparator economies:

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Closing a Business data Doing Business

2008

Doing Business

2009

Doing Business

2010

Doing Business

2011

Rank .. .. 132 118

Time (years) 4.0 4.0 4.0 4.0

Cost (% of estate) 15 22 22 22

Recovery rate (cents on the dollar) 22.6 16.7 16.7 20.2

2. Historical data: Closing Business in Benin

3. Closing Business sub indicators in Benin over the past 4 years

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Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property

rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000reforms have had an impact on these indicators. Doing Business2011, covering June 2009 to June 2010, reports that 117

economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business

have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export

regulations and improving credit information systems.

Negative Change

Positive Change

EconomyClosingaBusiness

EnforcingContracts

TradingAcrossBor

ders

PayingTaxes

ProtectingInvestors

GettingCredit

RegisteringProperty

DealingwithConstruction

Permits

StartingaBusiness

Kazakhstan

Rwanda

Peru

Vietnam

Cape Verde

Tajikistan

Zambia

Hungary

Grenada

Brunei Darussalam

* For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doingbusiness ranking.

The top 10 most-improved in Doing Business 2011

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Summary of changes to business regulation in top 10 most improved economies in Doing

Business 2011 and selected comparator economies.

Benin Benin created a new municipal commission to streamline construction permitting and set up an ad hoccommission to deal with the backlog in permit applications.

Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrarand implementing an electronic system for name searches. Brunei Darussalam reduced the corporateincome tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses,ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalammade trading easier.

Burkina Faso Burkina Faso made dealing with construction permits easier by cutting the cost of the soil survey in haland the time to process a building permit application by a third. Burkina Faso reduced the statutory taxrate and the number of taxes for business and introduced simpler, uniform compliance procedures.Burkina Faso reduced documentation requirements for importers and exporters, making it easier totrade. Burkina Faso made enforcing contracts easier by setting up a specialized commercial court andabolishing the fee to register judicial decisions.

Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a businessegins operations and computerizing the system for delivering the municipal license. Cape Verde eased

property registration by switching from fees based on a percentage of the property value to lower fixedrates. Cape Verde abolished the stamp duties on sales and checks.

Cte d'Ivoire Cte dIvoire eased construction permitting by eliminating the need to obtain a preliminary approval.

Ghana Ghana enhanced access to credit by establishing a centralized collateral registry and by granting anoperating license to a private credit bureau that began operations in April 2010.

Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from thecourts to the civil administration. The appointment of a registrar focusing only on property cut the timeneeded to transfer property in Grenada by almost half. Grenadas customs administration made tradingfaster by simplifying procedures, reducing inspections, improving staff training and enhancingcommunication with users.

Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the propertyregistration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to

Hungarys bankruptcy law encourage insolvent companies to consider reaching agreements withcreditors out of court so as to avoid bankruptcy.

Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70)and eliminating the need to have the memorandum of association and company charter notarized.Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related totechnical conditions for utilities. Kazakhstan strengthened investor protections by requiring greatercorporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts tomodernize customs, including implementation of a risk management system and improvements incustoms automation.

Mali Mali eased construction permitting by implementing a simplified environmental impact assessment fononcomplex commercial buildings. Mali eased property transfers by reducing the property transfer taxfor firms from 15% of the property value to 7%. Mali eliminated redundant inspections of imported

goods, reducing the time for trading across borders.

Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating anonline one-stop shop for business registration. Peru streamlined construction permitting byimplementing administrativereforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed toregister property. Peru made trading easier by implementing a new web-based electronic datainterchange system, risk-based inspections and payment deferrals.

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Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the endof April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhancedaccess to credit by allowing borrowers the right to inspect their own credit report and mandating thatloans of all sizes be reported to the central banks public credit registry. Rwanda reduced the number otrade documents required and enhanced its joint border management procedures with Uganda and otherneighbors, leading to an improvement in the trade logistics environment.

Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration withthe state and the tax authority. Tajikistan strengthened investor protections by requiring greatercorporate disclosure in the annual report and greater access to corporate information for minorityinvestors. Tajikistan lowered its corporate income tax rate.

Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaininga business license and tax license and by eliminating the need for a seal for company licensing.Vietnam made dealing with construction permits easier by reducing the cost to register newlycompleted buildings by 50% and transferring the authority to register buildings from local authorities tothe Department of National Resources and Environment. Vietnam improved its credit informationsystem by allowing borrowers to examine their own credit report and correct errors.

Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade byimplementing a one-stop border post with Zimbabwe, launching web-based submission of customsdeclarations and introducing scanning machines at border posts. Zambia improved contractenforcement by introducing an electronic case management system in the courts that provides electronicreferencing of cases, a database of laws, real-time court reporting and public access to court records.

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