St. Vincent and the Grenadines

Doing Business 2020 St. Vincent and the Grenadines

Economy Profile St. Vincent and the Grenadines

Page 1 Doing Business 2020 St. Vincent and the Grenadines

Economy Profile of St. Vincent and the Grenadines 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 2 Doing Business 2020 St. Vincent and the Grenadines

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 3 Doing Business 2020 St. Vincent and the Grenadines

Ease of Doing Business in Region Latin America & Caribbean DB RANK DB SCORE St. Vincent and the Income Category Upper middle income

Grenadines Population 110,210 130 57.1

City Covered Kingstown

Rankings on Doing Business topics - St. Vincent and the Grenadines

51 61

79 81 93 100 105

168 165 168

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

87.0 74.4 71.2 43.1 25.0 58.0 71.1 77.4 63.7 0.0

Starting a Business (rank) 93 Getting Credit (rank) 165 Trading across Borders (rank) 81 Score of starting a business (0-100) 87.0 Score of getting credit (0-100) 25.0 Score of trading across borders (0-100) 77.4 Procedures (number) 7 Strength of legal rights index (0-12) 5 Time to export Time (days) 10 Depth of credit information index (0-8) 0 Documentary compliance (hours) 48 Cost (number) 13.9 Credit registry coverage (% of adults) 0.0 Border compliance (hours) 28 Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 0.0 Cost to export Documentary compliance (USD) 80 Dealing with Construction Permits (rank) 51 Protecting Minority Investors (rank) 79 Border compliance (USD) 340 Score of dealing with construction permits (0-100) 74.4 Score of protecting minority investors (0-100) 58.0 Time to export Procedures (number) 14 Extent of disclosure index (0-10) 4.0 Documentary compliance (hours) 24 Time (days) 92 Extent of director liability index (0-10) 8.0 Border compliance (hours) 48 Cost (% of warehouse value) 0.1 Ease of shareholder suits index (0-10) 8.0 Cost to export Building quality control index (0-15) 8.0 Extent of shareholder rights index (0-6) 3.0 Documentary compliance (USD) 90 Extent of ownership and control index (0-7) 4.0 Border compliance (USD) 540 Getting Electricity (rank) 105 Extent of corporate transparency index (0-7) 2.0 Score of getting electricity (0-100) 71.2 Enforcing Contracts (rank) 61 Procedures (number) 3 Paying Taxes (rank) 100 Score of enforcing contracts (0-100) 63.7 Time (days) 52 Score of paying taxes (0-100) 71.1 Time (days) 595 Cost (% of income per capita) 46.6 Payments (number per year) 36 Cost (% of claim value) 30.3 Reliability of supply and transparency of tariff index (0-8) 0 Time (hours per year) 108 Quality of judicial processes index (0-18) 11.5 Total tax and contribution rate (% of profit) 37.0 Registering Property (rank) 168 Postfiling index (0-100) 63.9 Resolving Insolvency (rank) 168 Score of registering property (0-100) 43.1 Score of resolving insolvency (0-100) 0.0 Procedures (number) 7 Recovery rate (cents on the dollar) No Time (days) 47 Practice Cost (% of property value) 11.8 Time (years) No Practice Quality of the land administration index (0-30) 7.0 Cost (% of estate) No Practice Outcome (0 as piecemeal sale and 1 as 0 going concern) Strength of insolvency framework index (0- No 16) Practice

Page 4 Doing Business 2020 St. Vincent and the Grenadines

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 5 Doing Business 2020 St. Vincent and the Grenadines

Starting a Business - St. Vincent and the Grenadines

Standardized Company

Legal form Private Limited Liability Company

Paid-in minimum capital requirement No minimum

City Covered Kingstown

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Procedure – Men (number) 7 8.1 4.9 1 (2 Economies)

Time – Men (days) 10 28.8 9.2 0.5 (New Zealand)

Cost – Men (% of income per capita) 13.9 31.4 3.0 0.0 (2 Economies)

Procedure – Women (number) 7 8.1 4.9 1 (2 Economies)

Time – Women (days) 10 28.8 9.2 0.5 (New Zealand)

Cost – Women (% of income per capita) 13.9 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 St. Vincent and the Grenadines – Score

64.7 90.5 93.0 100.0

Procedures Time Cost Paid-in min. capital

Figure – Starting a Business in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Starting a Business Score

0 100

89.3: Dominica (Rank: 71)

88.0: Grenada (Rank: 89)

87.0: St. Vincent and the Grenadines (Rank: 93)

85.9: St. Kitts and Nevis (Rank: 109)

82.6: Antigua and Barbuda (Rank: 130)

79.6: Regional Average (Latin America & Caribbean)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Page 6 Doing Business 2020 St. Vincent and the Grenadines

Figure – Starting a Business in St. Vincent and the Grenadines – Procedure, Time and Cost

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

10 9

8 7

6 6 5

Time (days) 4 3

2 Cost (% of income per capita) 2

0 0 1 2 3 4 5 6 7 Procedures (number)

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

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

Page 7 Doing Business 2020 St. Vincent and the Grenadines

Details – Starting a Business in St. Vincent and the Grenadines – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Search and reserve company name 1 day XCD 25 Agency : Commerce and Intellectual Property Office Pre-approval of a company name is obtained by filing a request for name search and reservation (Form 26) with the Commerce and Intellectual Property Office (CIPO) in advance of the related application. To avoid unnecessary delays, statutory instructions for form completion are distributed at CIPO. A fee of XCD 25 is payable to CIPO. Form 26 makes provision for the choice of 3 alternative names.

On receipt of a request for name reservation, CIPO will conduct a comparative search of registered business and corporate names and will consider the overall suitability of the proposed having regard to the prescribed restrictions. Where a name is approved, it will be reserved for a period of 90 days from approval. It’s recommended that all applicants use the name reservation procedures to avoid the inconvenience of having to prepare a new set of forms should the first chosen name be declined.

2 Obtain and legalize the incorporation documents 1 day XCD 1,750 Agency : Lawyer Pursuant to the Companies Act, Chapter 143 of the Laws of Saint Vincent and the Grenadines 2009 Revised Edition, the company Director or the attorney, must prepare the incorporation documents. A standard Article of Association exist at the registry and therefore the company director can prepare it, however almost all companies choose to use an attorney to complete these formalities.

Any person: (a) over the age of 18; (b) of sound mind; and (c) not having declared bankruptcy may form a company under the Companies Act, 2009 revised edition. Filing may be accompanied by a statutory declaration of an attorney at law attesting that the qualifying requirements identified above have been met.

3 Register with the Commercial Registry 2 days XCD 950 Agency : Commerce and Intellectual Property Office The company must file the following documents with CIPO: • the articles of incorporation, the notice of directors, • the notice of registered office, • the request for name search and name reservation, • the lawyer’s declaration that company meets qualifying requirements, • and a cover letter if any director does not have a middle name (the forms require a middle initial).

After 2 days, if all documents are in order, CIPO, otherwise referred to as the Commercial Registry, releases a certificate of incorporation. The administrative fee is XCD 950.

4 File bylaws and notice of appointment of secretary 2 days XCD 150 Agency : Commerce and Intellectual Property Office Upon retrieving the certificate of incorporation, the company or the retained lawyer files two copies of the bylaws and the notice of appointment of secretary, and two days later, retrieves company registration certificate. The bylaws cost XCD 100 and the notice of appointment of secretary costs XCD 50.

5 Apply for a trade/industrial license 2 days XCD 100 Agency : Ministry of Trade All businesses that conduct commercial or industrial activities must apply for a license. Government officials do not inspect the company before issuing the license. The cost of the license depends on the company stock, with average cost costs being around XCD 100. To determine the cost of the license, government officials evaluate the type and the amount of stock of each company.

6 Register with the Inland Revenue Department 1 day no charge Agency : Inland Revenue Department The registrar sends a notice to the Inland Revenue Department once the company is incorporated and the company must then register at the Inland Revenue Department office in person. Following the initial registration, any filings thereafter can be done online at etaxsvg.gov.vc

Pursuant to section 9(2) of the Value Added Tax Act, Chapter 445 of the Laws of Saint Vincent and the Grenadines 2009 Revised Edition, the company must also register for VAT in case its turnover exceeds XCD. 120,000 one hundred and twenty thousand East Caribbean dollars. The company must apply for registration under the VAT Act on the last day of any month if their gross sales meet the threshold of $120,000 per year, or if gross sales average $10,000 per month.

7 Enroll company and workers at the National Insurance Services 1 day no charge Agency : National Insurance Services The company submits a form with company information and a form for every employee hired to the National Insurance Services. The company’s contribution to the National Insurance Services is based on each employee’s salary. Employee pays 4.5% of salary and employer pays 5.5% (elaboration).

Takes place simultaneously with previous procedure.

Page 8 Doing Business 2020 St. Vincent and the Grenadines

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 that can be fully completed online are an exception to this rule The warehouse: • Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery. 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 9 Doing Business 2020 St. Vincent and the Grenadines

Dealing with Construction Permits - St. Vincent and the Grenadines

Standardized Warehouse

Estimated value of warehouse XCD 1,068,766.10

City Covered Kingstown

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Procedures (number) 14 15.5 12.7 None in 2018/19

Time (days) 92 191.2 152.3 None in 2018/19

Cost (% of warehouse value) 0.1 3.6 1.5 None in 2018/19

Building quality control index (0-15) 8.0 9.0 11.6 15.0 (6 Economies)

Figure – Dealing with Construction Permits in St. Vincent and the Grenadines – Score

64.0 81.0 99.4 53.3

Procedures Time Cost Building quality control index

Figure – Dealing with Construction Permits in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Dealing with Construction Permits Score

0 100

74.4: St. Vincent and the Grenadines (Rank: 51)

73.5: St. Kitts and Nevis (Rank: 58)

70.1: Dominica (Rank: 83)

65.7: Antigua and Barbuda (Rank: 117)

63.2: Regional Average (Latin America & Caribbean)

62.5: Grenada (Rank: 130)

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 10 Doing Business 2020 St. Vincent and the Grenadines

Figure – Dealing with Construction Permits in St. Vincent and the Grenadines – Procedure, Time and Cost

Time (days) Cost (% of warehouse value)

0.09 90

80 0.08

70 0.07

60 0.06

50 0.05

40 0.04 Time (days)

30 0.03

20 0.02 Cost (% of warehouse value)

10 0.01

0 0 1 2 3 4 5 6 7 8 9 10 11 * 12 13 14 Procedures (number)

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

Page 11 Doing Business 2020 St. Vincent and the Grenadines

Figure – Dealing with Construction Permits in St. Vincent and the Grenadines and comparator economies – Measure of Quality

10 9.0 9.0 9 8.0 8.0 8 7.0 7 6 5.0 5 4 3 Index score 2 1 0

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Details – Dealing with Construction Permits in St. Vincent and the Grenadines – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Obtain a location plan from the Land and Surveys Department 1 day XCD 5 Agency : Land and Surveys Department One of the requirements to apply for a building permit is to provide a location plan which can be obtained either from the Land and Surveys Department or at the Office of the Planning Board. According to the new Building regulations, this location plan must clearly show all easily identifiable points such as streams, road junctions, bridges and nearby houses.

2 Receive site inspection prior to the building permit 1 day no charge Agency : Physical Planning Unit (PPU) The Physical Planning Unit (PPU) will conduct a site inspection once the application for a building permit has been received. Once the visit is over, a decision is made regarding the permit. This inspection is part of the permitting process.

3 Obtain building permit from the Physical Planning Unit 40 days XCD 300 Agency : Physical Planning Unit (PPU) To obtain a building permit, BuildCo must first obtain an application form and a set of conditions and guidelines for building. BuildCo must then submit the application, along with the building plans and a location map.

Upon receiving the application and building plans, the Physical Planning Unit (PPU) advertises the proposed plans in the local newspaper for a minimum of 2 weeks to officially notify the area residents of the proposed commercial construction. If no complaints are raised and the file is complete, the PPU grants approval of the application. The stamped documents and application are then returned to the applicant.

4 Receive setting out inspection by the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) In September 2011, Saint Vincent and the Grenadines implemented a National Building Code. The Code clarified the 8 stages of inspection that are required to ensure the safety of buildings. Though inspections are required by law, they are rarely enforced in practice because manpower and resources are limited. There are two conditions under which an inspection would certainly take place: • If there is a complaint or the Physical Planning Unit (PPU) suspects noncompliance or an infraction • If BuildCo has taken a loan for the construction of the warehouse (in this case, the bank will send out its own inspectors to ensure conformity with loan requirements)

5 Receive excavation inspection by the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) BuildCo. receives second of a series of phased inspections.

6 Receive foundation inspection before concreting inspection by the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) BuildCo. receives third of a series of phased inspections.

7 Receive structural inspection (frame and roof) inspection by the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) BuildCo. receives fourth of a series of phased inspections.

8 Receive plumbing and drains inspection by the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) BuildCo. receives fifth of a series of phased inspections.

9 Notify the Physical Planning Unit of the completion of construction and request occupancy 1 day no charge permit Agency : Physical Planning Unit (PPU) Once the construction is finalized, BuildCo. notifies the Physical Planning Unit and requests the occupancy permit

Page 12 Doing Business 2020 St. Vincent and the Grenadines

10 Receive final inspection from the Physical Planning Unit 1 day no charge Agency : Physical Planning Unit (PPU) An inspection on completion of construction is a formality that is not always completed in practice.

11 Obtain occupancy permit 7 days no charge Agency : Physical Planning Unit (PPU)

Request water and sewage connection 1 day no charge 12 Agency : Central Water And Sewerage Authority (CWASA) Application forms for a water connection can be obtained from various CWSA offices and must be completed and lodged with the CWSA for a technical appraisal.

13 Receive water and sewage inspection 1 day no charge Agency : Central Water And Sewerage Authority (CWASA) Workers from the Central Water And Sewerage Authority (CWASA) conduct an inspection on the site

14 Obtain water and sewage connection 35 days XCD 900 Agency : Central Water And Sewerage Authority (CWASA)

Takes place simultaneously with previous procedure.

Page 13 Doing Business 2020 St. Vincent and the Grenadines

Details – Dealing with Construction Permits in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Building quality control index (0-15) 8.0

Quality of building regulations index (0-2) 1.0

How accessible are building laws and regulations in your economy? (0-1) They must be 0.0 purchased; 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 engineer. 1.0 building regulations? (0-1)

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 at various 1.0 phases.

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) 2.0

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 does 0.0 not always occur in practice; Final inspection occurs most of the time.

Liability and insurance regimes index (0-2) 1.0

Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use No party is held liable 0.0 (Latent Defect Liability or Decennial Liability)? (0-1) under the law.

Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 1.0 problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain insurance ; Insurance is commonly taken in practice.

Professional certifications index (0-4) 1.0

What are the qualification requirements for the professional responsible for verifying that the 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- There are no specific 0.0 2) requirements.

Page 14 Doing Business 2020 St. Vincent and the Grenadines

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 15 Doing Business 2020 St. Vincent and the Grenadines

Getting Electricity - St. Vincent and the Grenadines

Standardized Connection

Name of utility St. Vincent Electricity Services Ltd. (VINLEC)

Price of electricity (US cents per kWh) 34.6

City Covered Kingstown

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Procedures (number) 3 5.5 4.4 3 (28 Economies)

Time (days) 52 66.8 74.8 18 (3 Economies)

Cost (% of income per capita) 46.6 407.2 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 St. Vincent and the Grenadines – Score

100.0 85.2 99.4 0.0

Procedures Time Cost Reliability of supply and transparency of tariff index

Figure – Getting Electricity in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Getting Electricity Score

0 100

83.5: Antigua and Barbuda (Rank: 50)

82.5: Dominica (Rank: 57)

73.4: Grenada (Rank: 93)

71.7: Regional Average (Latin America & Caribbean)

71.2: St. Vincent and the Grenadines (Rank: 105)

70.2: St. Kitts and Nevis (Rank: 110)

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 St. Vincent and the Grenadines – Procedure, Time and Cost

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

50 50

40 40

30 30

Time (days) 20 20 Cost (% of income per capita) 10 10

0 0 1 2 3 Procedures (number)

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

Figure – Getting Electricity in St. Vincent and the Grenadines and comparator economies – Measure of Quality

8 7 7 6 5 5 4.4 4 3 3

Index score 2 1 0 0 0

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Page 17 Doing Business 2020 St. Vincent and the Grenadines

Details – Getting Electricity in St. Vincent and the Grenadines – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Obtain inspection certificate for internal wiring 14 calendar days XCD 85 Agency : Government Electrical Inspector Before applying for an electricity connection, the customer should obtain an internal wiring Inspection Certificate signed by the Government Electrical Inspector (GEI). The customer's licensed electrician (the licenses are issued by GEI) is in charge of the internal wiring, and the GEI has to inspect the internal wiring. The request for the inspection can be filed as soon as the internal wiring is done. The construction company should fill out a form and submit it at the GEI. After the GEI estimates the cost, the applicant has to pay the fee at the treasury. The treasury gives the applicant a receipt. With the receipt the applicant goes back to the GEI to schedule an inspection.

2 Submit application to VINLEC and await connection offer 21 calendar days XCD 0 Agency : St. Vincent Electricity Services Ltd. (VINLEC) The customer submits an application for an electricity connection to St. Vincent Electricity Services Ltd. The following documents should be attached: (1) Business Letter on the letterhead of the company signed by authorized signatories stating the business address; (2) Copy of the business Certificate of Registration; (3) GEI’s internal wiring Certificate; (4) Any form of Identification such as Identification card, Passport or Driver’s License; (5) A written statement of the required peak electricity demand, work method and times of operation and installed capacity of the machines (“Load Request”).

After the application is submitted the external inspection is carried out by St. Vincent Electricity Services Ltd (VINLEC) to check whether the it is possible to add the requested load. The planning department of VINLEC inspects the site and specifies what is required of VINLEC to meet the additional load. There is no need for presence of someone from the applicant's party. After the inspection the customer signs a connection offer. To reduce the delay time the applicant can submit the Written statement of the required peak electricity demand before the engagement of the electrician to wire the premises, so that both the load evaluation and the internal wiring run concurrently.

3 Await completion of external works and final connection by VINLEC 17 calendar days XCD 9,871.85 Agency : St. Vincent Electricity Services Ltd. (VINLEC) Once the connection offer is signed VINLEC carries out the external connection works. The customer is required to pay the security deposit. The deposit is equivalent to the value of two months’ estimated electricity consumption. The deposit is expected to provide security for the payment of electricity account debts and it may be revised from time to time. Deposits bear interest at 4% per annum. Deposits and earned interest are refunded to customers after their supply is permanently disconnected and all outstanding bills are paid. Given the assumptions the most likely case is that the three phase supply exists in the area and only the upgrade of the transformer bank is required. Assumptions 1. Three phase supply exist in the area -three (3) 15 kVA transformers. 2. Only the upgrade of the transformer bank is required-– the three (3) 50 kVA transformers. 3. Three (3) 15 kVA transformers will be recovered. The cost of the transformers is recovered by the utility; the value is reflected in the reduction to the customer. The customer has to wait for the completion of the connection works and the meter installation, thereafter electricity starts flowing.

Takes place simultaneously with previous procedure.

Page 18 Doing Business 2020 St. Vincent and the Grenadines

Details – Getting Electricity in St. Vincent and the Grenadines – 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) 1

Does the distribution utility use automated tools to monitor outages? Yes

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) 1

Are effective tariffs available online? Yes

Link to the website, if available online http://www.vinlec.com/con tents/electricity-rate- structure

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

Note:

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

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

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

Page 19 Doing Business 2020 St. Vincent and the Grenadines

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. • Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it. • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0)

Page 20 Doing Business 2020 St. Vincent and the Grenadines

Registering Property - St. Vincent and the Grenadines

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Procedures (number) 7 7.4 4.7 1 (5 Economies)

Time (days) 47 63.7 23.6 1 (2 Economies)

Cost (% of property value) 11.8 5.9 4.2 0.0 (Saudi Arabia)

Quality of the land administration index (0-30) 7.0 12.0 23.2 None in 2018/19

Figure – Registering Property in St. Vincent and the Grenadines – Score

50.0 78.0 21.1 23.3

Procedures Time Cost Quality of the land administration index

Figure – Registering Property in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Registering Property Score

0 100

56.7: Antigua and Barbuda (Rank: 124)

54.9: Regional Average (Latin America & Caribbean)

50.1: Grenada (Rank: 147)

43.1: St. Vincent and the Grenadines (Rank: 168)

33.5: Dominica (Rank: 179)

28.9: St. Kitts and Nevis (Rank: 185)

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 21 Doing Business 2020 St. Vincent and the Grenadines

Figure – Registering Property in St. Vincent and the Grenadines – Procedure, Time and Cost

Time (days) Cost (% of property value)

12 45

40 10

35 8 30

25 6 20 Time (days)

15 4 Cost (% of property value) 10 2 5

0 0 1 2 * 3 * 4 5 6 7 Procedures (number)

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

Page 22 Doing Business 2020 St. Vincent and the Grenadines

Figure – Registering Property in St. Vincent and the Grenadines and comparator economies – Measure of Quality

20 19.0 18 16 14 12.0 12 10 9.0 8 7.0 7.0 6 4.5 Index score 4 2 0

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Details – Registering Property in St. Vincent and the Grenadines – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

1 Search root of title at the Land Registry 21 days XCD 44.25; (EC$2 per day Agency : Land Registry + EC$0.75 per page to be It is common practice for the lawyer or lawyer’s clerk to search the Index of Deeds at the Lands copied (on average, 3 Registry for the root of title. This can take a long time if the title is not properly indexed- i.e. names pages)) of individuals not recorded accurately or omitted. If the indexing is not up-to-date, it may be necessary to search individual deeds for the relevant time frame. Also, the indexing is done by hand and the quality of paper is diminishing, making the durability of the records more susceptible to wear and tear. The search area is limited and there are several persons searching at the same time which causes a delay in the process. Once the search is complete, a copy of the deed is prepared and forwarded to the Valuation Office with a covering officially prepared form with details of the property being sold, the location of the property and the price agreed by the parties (Procedure 5). During this time period, the clerk also searches the Cause Books at the Registry for any judgments against the property.

2 Search for encumbrances and judgements at the Registry of the High Court 2 days XCD 6.25; (EC$2 per day Agency : Registry of the High Court + EC$0.75 per page to be This search is necessary to verify whether or not there are any judgments against the seller and copied (on average, 3 his/her property. Some encumbrances and judgments are recorded at the High Registry only and pages)) cannot be found at the Land Registry; therefore, a check at the High Court Registry must be made. Unless all judgments are settled, the transaction cannot proceed.

3 Conduct company search at the Commerce & Intellectual Property Organization 1 day XCD 5 Agency : Commerce & Intellectual Property Organization When companies are involved in the transaction, a search is done on their files for the respective registration numbers, the directors, secretary and the by-laws.

4 Obtain tax clearance certificate from the Inland Revenue Authority 1 day no charge Agency : Inland Revenue Authority In order for the execution of the deed to proceed, both the seller and purchaser must have paid all outstanding income taxes and property taxes. Therefore, clearance from the Inland Revenue Authority must be granted. This usually takes a few days because the Revenue Authority scans all documents and then must send the clearance certificate to the land registry. For non-nationals, the Vendor’s Tax is 10%. In addition to this Procedure, the buyer's lawyer might also choose to make an inquiry with utility companies (water, electricity and phone/cable). Such inquiry could be conducted within 1-2 days.

Page 23 Doing Business 2020 St. Vincent and the Grenadines

5 Preparation of deed by lawyer 2 days XCD 16,819.49; (Schedule Agency : Lawyer's office of lawyer’s fees as A lawyer, or lawyer’s clerk, witnesses the signature(s) of the vendor and purchaser and signs a regulated by the St. declaration that he witnessed the signature of the vendor on the deed (the purchaser does not Vincent and the have to sign the deed of conveyance). The declaration is filed during registration. Grenadines Bar Association: Property Value: Fees $1,000: $125 $1,001-$5,000: Charge as for $1,000 with addition of 5% of the excess $5,001: $325 $5,000-$10,000: Charge as for $5,000 with addition of 4% of the excess $10,001: $525 $10,000-$25,000: Charge as for $10,000 with addition of 3% of the excess $25,000: $975 $25,001-$49,999: Charge as for $25,000 with addition of 2.25% of the excess $50,000: $1,538 Over $50,001: Charge as for $50,000 with addition of 1.5% of the excess)

6 Valuation of property by the Land Tax Office (Inland Revenue Department) 18 days XCD 106,876.61; (Stamp Agency : Land Tax Office of the Inland Revenue Department Duty 10% (5% paid by A copy of the deed (quoting the root of the title) is attached to the valuation certificate and sent to purchaser; 5% paid by the Valuation Office (Land Tax Office) for approval. Clerks at the Valuation Office usually conduct a vendor)) search on the current owner of the property and make sure that all taxes have been paid. Given that there are no outstanding taxes, the valuation is returned to the purchaser’s lawyers. It is not mandatory to inspect the property, but the Valuation Office may decide to inspect if they are not familiar with the property or if the property value is deemed too low. Inspection is conducted by a valuation officer and the Chief Surveyor.

7 Registration of the title deed 3 days XCD 2,674.42; Agency : Land Registry (Registration fee according Once the receipt is issued for payment of stamp duty and registration fees, the time and date of to the following scale: receipt by the Registry should be recorded on the deed. The deed is then registered, a number is EC$40 for the first 15,000 allocated to it, the original is retained in the records of the Registry (it becomes part of the (of sale price), and documents for search), and a copy of the registered deed is handed back to the person registering the deed. Documentation required: Two copies of the deed with valuation certificate EC$2.50 per $1000 thereafter.)

Takes place simultaneously with previous procedure.

Page 24 Doing Business 2020 St. Vincent and the Grenadines

Details – Registering Property in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Quality of the land administration index (0-30) 7.0

Reliability of infrastructure index (0-8) 0.0

Type of land registration system in the economy: Deed Registration System

What is the institution in charge of immovable property registration? Land Registry

In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0 business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?

Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)?

Institution in charge of the plans showing legal boundaries in the largest business city: The Surveyor's Department

In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Paper 0.0 city of the economy—in a paper format or in a computerized format (scanned or fully digital)?

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

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

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

Transparency of information index (0–6) 1.5

Who is able to obtain information on land ownership at the agency in charge of immovable property registration Anyone who pays the 1.0 in the largest business city? official fee

Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, in person 0.0 and if so, how?

Link for online access:

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

Link for online access:

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

Link for online access:

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

Contact information:

Are there publicly available official statistics tracking the number of transactions at the immovable property No 0.0 registration agency?

Number of property transfers in the largest business city in 2018:

Who is able to consult maps of land plots in the largest business city? Anyone who pays the 0.5 official fee

Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, in person 0.0

Link for online access:

Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and No 0.0 if so, how does it communicate the service standard?

Link for online access:

Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the No 0.0 cadastral or mapping agency? Page 25 Doing Business 2020 St. Vincent and the Grenadines

Contact information:

Geographic coverage index (0–8) 0.0

Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0 registry?

Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0

Are all privately held land plots in the largest business city mapped? No 0.0

Are all privately held land plots in the economy mapped? No 0.0

Land dispute resolution index (0–8) 5.5

Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5 them opposable to third parties?

Legal basis:

Is the system of immovable property registration subject to a state or private guarantee? No 0.0

Type of guarantee:

Legal basis:

Is there a is a speciﬁc, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry?

Legal basis:

Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5 checking the compliance of contracts with requirements of the law)?

If yes, who is responsible for checking the legality of the documents? Lawyer;

Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5

If yes, who is responsible for verifying the identity of the parties? Lawyer;

Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0

What is the Court of first instance in charge of a case involving a standard land dispute between two local The High Court businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located in the largest business city?

How long does it take on average to obtain a decision from the first-instance court for such a case (without Between 1 and 2 2.0 appeal)? years

Are there publicly available statistics on the number of land disputes at the economy level in the ﬁrst instance No 0.0 court?

Number of land disputes in the economy in 2018:

Equal access to property rights index (-2–0) 0.0

Do unmarried men and unmarried women have equal ownership rights to property? Yes

Do married men and married women have equal ownership rights to property? Yes 0.0

Page 26 Doing Business 2020 St. Vincent and the Grenadines

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. 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

Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit Rights of borrowers and lenders through collateral laws (0-10) • information index measures rules and practices affecting the coverage, scope and accessibility of • Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights (0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to • Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank.

• Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B as a percentage of adult population (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral. Credit registry coverage (% of adults)

• Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: percentage of adult population - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Page 27 Doing Business 2020 St. Vincent and the Grenadines

Getting Credit - St. Vincent and the Grenadines

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Strength of legal rights index (0-12) 5 5.3 6.1 12 (5 Economies)

Depth of credit information index (0-8) 0 5.1 6.8 8 (53 Economies)

Credit registry coverage (% of adults) 0.0 14.6 24.4 100.0 (2 Economies)

Credit bureau coverage (% of adults) 0.0 47.6 66.7 100.0 (14 Economies)

Figure – Getting Credit in St. Vincent and the Grenadines – Score

25.0

Score - Getting Credit

Figure – Getting Credit in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Getting Credit Score

0 100

52.0: Regional Average (Latin America & Caribbean)

30.0: Dominica (Rank: 152)

30.0: Grenada (Rank: 152)

25.0: Antigua and Barbuda (Rank: 165)

25.0: St. Kitts and Nevis (Rank: 165)

25.0: St. Vincent and the Grenadines (Rank: 165)

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Page 28 Doing Business 2020 St. Vincent and the Grenadines

Figure – Legal Rights in St. Vincent and the Grenadines and comparator economies

6.2 6 6 6 5.8 5.6 5.4 5.3 5.2 5 5 5 5

Index Score 4.8 4.6 4.4

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Page 29 Doing Business 2020 St. Vincent and the Grenadines

Details – Legal Rights in St. Vincent and the Grenadines

Strength of legal rights index (0-12) 5

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No to security interests in movable assets exist in the economy?

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

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of Yes collateral?

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

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes and can the collateral agreement include a maximum amount for which the assets are encumbered?

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an No electronic database indexed by debtor's name?

Does a notice-based collateral registry exist in which all functional equivalents can be registered? No

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third No party?

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No

Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law No protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell Yes the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?

Figure – Credit Information in St. Vincent and the Grenadines and comparator economies

6 5.1 5 4 3 2 Index Score 1 0 0 0 0 0 0

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Page 30 Doing Business 2020 St. Vincent and the Grenadines

Details – Credit Information in St. Vincent and the Grenadines

Depth of credit information index (0-8) Credit bureau Credit registry Score

Are data on both firms and individuals distributed? No No 0

Are both positive and negative credit data distributed? No No 0

Are data from retailers or utility companies - in addition to data from banks and No No 0 financial institutions - distributed?

Are at least 2 years of historical data distributed? (Credit bureaus and registries No No 0 that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.)

Are data on loan amounts below 1% of income per capita distributed? No No 0

By law, do borrowers have the right to access their data in the credit bureau or No No 0 credit registry?

Can banks and financial institutions access borrowers’ credit information online No No 0 (for example, through an online platform, a system-to-system connection or both)?

Are bureau or registry credit scores offered as a value-added service to help No No 0 banks and financial institutions assess the creditworthiness of borrowers?

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Coverage Credit bureau Credit registry

Number of individuals 0 0

Number of firms 0 0

Total 0 0

Percentage of adult population 0.0 0.0

Page 31 Doing Business 2020 St. Vincent and the Grenadines

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. 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

• Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about approval requirements for related-party transactions the business and the transaction. • Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for The business (Buyer): prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange. remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law. the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members. • Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and - Has not adopted bylaws or articles of association that go beyond the minimum requirements. allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory. - Is a manufacturing company with its own distribution network. • Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of The transaction involves the following details: shareholder suits indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to • Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board. and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores. • Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s safeguards protecting shareholders from undue board control distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of and entrenchment Buyer’s assets and is higher than the market value. • Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the transparency on ownership stakes, compensation, audits and authority of the company. financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently. • Extent of shareholder governance index (0–20): Sum of the - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and extent of shareholders rights, extent of ownership and control directors that approved the transaction. and extent of corporate transparency indices • Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

Page 32 Doing Business 2020 St. Vincent and the Grenadines

Protecting Minority Investors - St. Vincent and the Grenadines

Stock exchange information

Stock exchange Eastern Caribbean Securities Exchange

Stock exchange URL http://www.ecseonline.com

Listed firms with equity securities 10

City Covered Kingstown

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Extent of disclosure index (0-10) 4.0 4.1 6.5 10 (13 Economies)

Extent of director liability index (0-10) 8.0 5.2 5.3 10 (3 Economies)

Ease of shareholder suits index (0-10) 8.0 6.7 7.3 10 (Djibouti)

Extent of shareholder rights index (0-6) 3.0 3.0 4.7 6 (19 Economies)

Extent of ownership and control index (0-7) 4.0 2.3 4.5 7 (9 Economies)

Extent of corporate transparency index (0-7) 2.0 2.3 5.7 7 (13 Economies)

Figure – Protecting Minority in St. Vincent and the Grenadines – Score

58.0

Score - Protecting Minority Investors

Figure – Protecting Minority Investors in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

0 100

58.0: Antigua and Barbuda (Rank: 79)

58.0: Dominica (Rank: 79)

58.0: St. Vincent and the Grenadines (Rank: 79)

52.0: St. Kitts and Nevis (Rank: 103)

50.0: Grenada (Rank: 105)

47.3: Regional Average (Latin America & Caribbean)

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conﬂict of interest regulation index and the extent of shareholder governance index.

Page 33 Doing Business 2020 St. Vincent and the Grenadines

Figure – Protecting Minority Investors in St. Vincent and the Grenadines and comparator economies – Measure of Quality

St. Vincent and the Grenadines 2 8 4 4 3 8

Antigua and Barbuda 2 8 4 4 3 8

Dominica 2 8 4 4 3 8

Grenada 1 8 4 2 2 8

St. Kitts and Nevis 2 8 4 1 3 8

OECD high income 5.6 5.6 6.6 4.3 4.5 7.4

Latin America & Caribbean 2.5 5.4 4.4 2.5 3.2 6.5

0 5 10 15 20 25 30 35 40 Sub-Indicator Score

Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7) Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)

Page 34 Doing Business 2020 St. Vincent and the Grenadines

Details – Protecting Minority Investors in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Extent of conflict of interest regulation index (0-30)

Extent of disclosure index (0-10) 4.0

Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders or 1.0 board of directors including interested parties

Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0

Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0 material facts

Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 1.0 transaction only

Must Buyer immediately disclose the transaction to the public? (0-2) No disclosure 0.0 obligation

Extent of director liability index (0-10) 8.0

Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0 Buyer? (0-1)

Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Liable if unfair or 2.0 prejudicial

Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Liable if unfair or 2.0 prejudicial

Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) Yes 1.0

Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) Yes 1.0

Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0

Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if negligently 1.0 concluded

Ease of shareholder suits index (0-10) 8.0

Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? No 0.0 (0-1)

Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document

Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) Yes 1.0

Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Yes 2.0

Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0

Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0

Extent of shareholder governance index (0-20)

Extent of shareholder rights index (0-6) 3.0

Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0

Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0

Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0

Do shareholders automatically receive preemption rights every time Buyer issues new shares? No 0.0

Do shareholders elect and dismiss the external auditor? Yes 1.0

Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0

Extent of ownership and control index (0-7) 4.0

Page 35 Doing Business 2020 St. Vincent and the Grenadines

Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? No 0.0

Must the board of directors include independent and nonexecutive board members? Yes 1.0

Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0

Must the board of directors include a separate audit committee exclusively comprising board members? Yes 1.0

Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? No 0.0

Must Buyer pay declared dividends within a maximum period set by law? No 0.0

Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0

Extent of corporate transparency index (0-7) 2.0

Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? No 0.0

Must Buyer disclose information about board members’ primary employment and directorships in other No 0.0 companies?

Must Buyer disclose the compensation of individual managers? No 0.0

Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0

Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0

Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0

Must Buyer disclose its audit reports to the public? No 0.0

Page 36 Doing Business 2020 St. Vincent and the Grenadines

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure Case study assumptions

Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of Total number of taxes and contributions paid or withheld, • filing and payments, time taken to comply with tax laws, time taken to comply with the including consumption taxes (value added tax, sales tax or requirements of postfiling processes and time waiting. goods and service tax) • Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: - TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured • Collecting information, computing tax payable at all levels of government. • Preparing separate tax accounting books, if required • Completing tax return, filing with agencies The VAT refund process: - In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times • Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income Total tax and contribution rate (% of commercial profits) per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred • Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output • Social contributions, labor taxes paid by employer VAT in June 2018. • Property and property transfer taxes The corporate income tax audit process: • Dividend, capital gains, financial transactions taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, • Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the Postfiling Index tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax • Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. • Time to obtain VAT refund (weeks) • Time to comply with a corporate income tax correction (hours) • Time to complete a corporate income tax correction (weeks)

Page 37 Doing Business 2020 St. Vincent and the Grenadines

Paying Taxes - St. Vincent and the Grenadines

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Payments (number per year) 36 28.2 10.3 3 (2 Economies)

Time (hours per year) 108 317.1 158.8 49 (3 Economies)

Total tax and contribution rate (% of profit) 37.0 47.0 39.9 26.1 (33 Economies)

Postfiling index (0-100) 63.9 47.5 86.7 None in 2018/19

Figure – Paying Taxes in St. Vincent and the Grenadines – Score

45.0 90.9 84.6 63.9

Payments Time Total tax and contribution rate Postfiling index

Figure – Paying Taxes in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

0 100

75.6: Dominica (Rank: 83)

71.1: St. Vincent and the Grenadines (Rank: 100)

64.4: St. Kitts and Nevis (Rank: 125)

60.5: Regional Average (Latin America & Caribbean)

59.6: Grenada (Rank: 143)

58.9: Antigua and Barbuda (Rank: 145)

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Page 38 Doing Business 2020 St. Vincent and the Grenadines

Figure – Paying Taxes in St. Vincent and the Grenadines and comparator economies – Measure of Quality

90 78.9 75.7 80 69.4 70 63.9 60 48.9 47.5 50 40 30

Index score 20 10 0

St. Antigua Dominica Grenada St. Latin Vincent and Kitts America and Barbuda and & \n Nevis Caribbean the Grenadines

Page 39 Doing Business 2020 St. Vincent and the Grenadines

Details – Paying Taxes in St. Vincent and the Grenadines

Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR mandatory (number) Payments rate contribution contribution rate (% of profit)

Corporate 4.0 14.0 30% taxable profit 27.55 income tax

Employer paid - 12.0 49.0 5.5% gross salaries 6.20 Social security contributions

Property transfer 1.0 5% sale price 3.03 tax (stamp duty)

Business license 1.0 various rates 0.07

Property tax 1.0 5% rental value 0.06

Vehicle tax 1.0 various rates gross weight and 0.05 size of vehicle

Insurance 1.0 5% insurance 0.05 premium tax premium

Tax on check 1.0 30 cents number of 0.01 small amount transactions checks

Value added tax 12.0 45.0 16% value added 0.00 not included (VAT)

Stamp duty on 1.0 various rates value of contract 0.00 small amount contracts

Fuel tax 1.0 included in the 0.00 small amount price of fuel

Employee paid - 0.0 jointly 4.5% gross salaries 0.00 Social security contributions

Totals 36 108 37.0

Page 40 Doing Business 2020 St. Vincent and the Grenadines

Details – Paying Taxes in St. Vincent and the Grenadines – Tax by Type

Taxes by type Answer

Profit tax (% of profit) 27.6

Labor tax and contributions (% of profit) 6.2

Other taxes (% of profit) 3.3

Page 41 Doing Business 2020 St. Vincent and the Grenadines

Details – Paying Taxes in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Postfiling index (0-100) 63.9

VAT refunds

Does VAT exist? Yes

Does a VAT refund process exist per the case study? Yes

Restrictions on VAT refund process none

Percentage of cases exposed to a VAT audit (%) 50% - 74%

Is there a mandatory carry forward period? Yes

Time to comply with VAT refund (hours) 12.0 76.0

Time to obtain VAT refund (weeks) 31.0 47.1

Corporate income tax audits

Does corporate income tax exist? Yes

Percentage of cases exposed to a corporate income tax audit (%) 50% - 74%

Time to comply with a corporate income tax correction (hours) 22.5 61.5

Time to complete a corporate income tax correction (weeks) 9.3 71.0

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction. N/A = Not applicable.

Page 42 Doing Business 2020 St. Vincent and the Grenadines

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. 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

Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: • Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as origin economy 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, • Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours. • Covers all documents required by law and in practice, including electronic submissions of information Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. • Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about • Inspections by other agencies (if applied to more than 20% of exchange rates. shipments) Assumptions of the case study: • Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in or border the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy. Domestic transport - It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from • Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is Transport between warehouse and port/border • the largest purchaser of this product. Shipment value is assumed to be $50,000. • Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and route the trading partner, as is the seaport or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Page 43 Doing Business 2020 St. Vincent and the Grenadines

Trading across Borders - St. Vincent and the Grenadines

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Time to export: Border compliance (hours) 28 55.3 12.7 1 (19 Economies)

Cost to export: Border compliance (USD) 340 516.3 136.8 0 (19 Economies)

Time to export: Documentary compliance (hours) 48 35.7 2.3 1 (26 Economies)

Cost to export: Documentary compliance (USD) 80 100.3 33.4 0 (20 Economies)

Time to import: Border compliance (hours) 48 55.6 8.5 1 (25 Economies)

Cost to import: Border compliance (USD) 540 628.4 98.1 0 (28 Economies)

Time to import: Documentary compliance (hours) 24 43.2 3.4 1 (30 Economies)

Cost to import: Documentary compliance (USD) 90 107.3 23.5 0 (30 Economies)

Figure – Trading across Borders in St. Vincent and the Grenadines – Score

83.0 67.9 72.2 80.0 83.2 55.0 90.4 87.1

Time Cost Time Cost Time Cost Time Cost to to to to to to to to export: export: export: export: import: import: import: import: Border Border Documentary Documentary Border Border Documentary Documentary compliance compliance compliance compliance compliance compliance compliance compliance

Figure – Trading across Borders in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

0 100

81.0: St. Kitts and Nevis (Rank: 71)

77.4: St. Vincent and the Grenadines (Rank: 81)

74.3: Dominica (Rank: 91)

69.1: Regional Average (Latin America & Caribbean)

68.7: Antigua and Barbuda (Rank: 112)

61.5: Grenada (Rank: 137)

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Page 44 Doing Business 2020 St. Vincent and the Grenadines

Figure – Trading across Borders in St. Vincent and the Grenadines – Time and Cost

Time (hours) Cost (USD)

60 540 600 50 48 48 500

40 340 400 28 30 24 300

20 200 Cost (USD) Time (hours) 90 10 80 100

0 0

Export Export Import Import - - - - Border Documentary Border Documentary Compliance Compliance Compliance Compliance

Page 45 Doing Business 2020 St. Vincent and the Grenadines

Details – Trading across Borders in St. Vincent and the Grenadines

Characteristics Export Import

Product HS 11 : Products of the milling industry; malt; HS 8708: Parts and accessories of motor vehicles starches; inulin; wheat gluten

Trade partner St. Lucia United States

Border Campden Park port Campden Park port

Distance (km) 5 5

Domestic transport time (hours) 1 1

Domestic transport cost (USD) 191 190

Details – Trading across Borders in St. Vincent and the Grenadines – Components of Border Compliance

Time to Complete (hours) Associated Costs (USD)

Export: Clearance and inspections required by 5.8 240.0 customs authorities

Export: Clearance and inspections required by 0.0 0.0 agencies other than customs

Export: Port or border handling 23.0 100.0

Import: Clearance and inspections required by 24.0 290.0 customs authorities

Import: Clearance and inspections required by 0.0 0.0 agencies other than customs

Import: Port or border handling 48.0 250.0

Page 46 Doing Business 2020 St. Vincent and the Grenadines

Details – Trading across Borders in St. Vincent and the Grenadines – Trade Documents

Export Import

Bill of Lading Bill of lading

Commercial Invoice Certificate of origin

CARICOM Certificate of origin Commercial invoice

Insurance certificate Insurance certificate

Packing list Customs declaration (Entry for home use)

Customs export declaration (Shipping bill) Gate pass

SOLAS certificate SOLAS certificate

Page 47 Doing Business 2020 St. Vincent and the Grenadines

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. 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

Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic (calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement. • Time to file and serve the case • Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the case are used: Time to enforce the judgment • - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the claim value) second largest business city. - The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of • Average attorney fees adequate quality. • Court costs - The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater. • Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater. Quality of judicial processes index (0-18) - The Seller requests the pretrial attachment of the defendant’s movable assets to secure the • Court structure and proceedings (-1-5) claim. - The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods • Case management (0-6) was not adequate. • Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. - The Seller enforces the judgment through a public sale of the Buyer’s movable assets. • Alternative dispute resolution (0-3)

Page 48 Doing Business 2020 St. Vincent and the Grenadines

Enforcing Contracts - St. Vincent and the Grenadines

Standardized Case

Claim value XCD 38,741

Court name Eastern Caribbean Supreme Court, Kingstown High Court of Justice

City Covered Kingstown

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Time (days) 595 774.2 589.6 120 (Singapore)

Cost (% of claim value) 30.3 32.0 21.5 0.1 (Bhutan)

Quality of judicial processes index (0-18) 11.5 8.8 11.7 None in 2018/19

Figure – Enforcing Contracts in St. Vincent and the Grenadines – Score

61.1 66.0 63.9

Time Cost Quality of judicial processes index

Figure – Enforcing Contracts in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

0 100

68.1: Antigua and Barbuda (Rank: 36)

65.5: St. Kitts and Nevis (Rank: 49)

63.7: St. Vincent and the Grenadines (Rank: 61)

59.3: Grenada (Rank: 80)

57.5: Dominica (Rank: 95)

53.5: Regional Average (Latin America & Caribbean)

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Page 49 Doing Business 2020 St. Vincent and the Grenadines

Figure – Enforcing Contracts in St. Vincent and the Grenadines – Time and Cost

Time (days) Cost (% of claim value)

900 40 36.0 774.2 800 741 32.6 35 688 32.0 30.3 700 27.1 589.6 578 26.6 595 30 600 476 21.5 25 500 20 400 15 300 Time (days) 200 10 100 5 Cost (% of claim value) 0 0

Antigua Dominica Grenada Latin OECD St. St. and America high Kitts Vincent Barbuda & income and and Caribbean Nevis the Grenadines

Page 50 Doing Business 2020 St. Vincent and the Grenadines

Figure – Enforcing Contracts in St. Vincent and the Grenadines and comparator economies – Measure of Quality

St. Vincent and the Grenadines 2.5 3 1.5 4.5

Antigua and Barbuda 2.5 3 1.5 4.5

Dominica 2.5 3 1.5 4.5

Grenada 2 3 1.5 4.5

St. Kitts and Nevis 2.5 3 1.5 4.5

OECD high income 2.5 3.2 2.4 3.6

Latin America & Caribbean 2.4 2.2 1 3.6

0 2 4 6 8 10 12 14 Sub-Indicator Score

Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)

Details – Enforcing Contracts in St. Vincent and the Grenadines

Indicator

Time (days) 595

Filing and service 30

Trial and judgment 445

Enforcement of judgment 120

Cost (% of claim value) 30.3

Attorney fees 14.3

Court fees 7.8

Enforcement fees 8.2

Quality of judicial processes index (0-18) 11.5

Court structure and proceedings (-1-5) 4.5

Case management (0-6) 3.0

Court automation (0-4) 1.5

Alternative dispute resolution (0-3) 2.5

Page 51 Doing Business 2020 St. Vincent and the Grenadines

Details – Enforcing Contracts in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Quality of judicial processes index (0-18) 11.5

Court structure and proceedings (-1-5) 4.5

1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5

2. Small claims court 1.5

2.a. Is there a small claims court or a fast-track procedure for small claims? Yes

2.b. If yes, is self-representation allowed? Yes

3. Is pretrial attachment available? Yes 1.0

4. Are new cases assigned randomly to judges? Yes, but manual 0.5

5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0

Case management (0-6) 3.0

1. Time standards 1.0

1.a. Are there laws setting overall time standards for key court events in a civil case? Yes

1.b. If yes, are the time standards set for at least three court events? Yes

1.c. Are these time standards respected in more than 50% of cases? Yes

2. Adjournments 0.0

2.a. Does the law regulate the maximum number of adjournments that can be granted? No

2.b. Are adjournments limited to unforeseen and exceptional circumstances? No

2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.

3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) Yes 1.0 clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?

4. Is a pretrial conference among the case management techniques used before the competent court? Yes 1.0

5. Are there any electronic case management tools in place within the competent court for use by judges? No 0.0

6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0

Court automation (0-4) 1.5

1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0

2. Is it possible to carry out service of process electronically for claims filed before the competent court? Yes 1.0

3. Can court fees be paid electronically within the competent court? No 0.0

4. Publication of judgments 0.5

4.a Are judgments rendered in commercial cases at all levels made available to the general public No through publication in official gazettes, in newspapers or on the internet or court website?

4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made Yes available to the general public through publication in official gazettes, in newspapers or on the internet or court website?

Alternative dispute resolution (0-3) 2.5

1. Arbitration 1.5

1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all its aspects?

1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No that cannot be submitted to arbitration?

1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes

Page 52 Doing Business 2020 St. Vincent and the Grenadines

2. Mediation/Conciliation 1.0

2.a. Is voluntary mediation or conciliation available? Yes

2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes section of the applicable code of civil procedure encompassing substantially all their aspects (for example, definition, aim and scope of application, desig

2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No conciliation is successful, a refund of court filing fees, income tax credits or the like)?

Page 53 Doing Business 2020 St. Vincent and the Grenadines

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. 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

Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used: • Measured in calendar years • Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties. Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater. • Measured as percentage of estate value - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. • Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise. • Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to judicial • Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have • Assessors’ and auctioneers’ fees been implemented in each economy covered. • Other related fees

Outcome

• Whether business continues operating as a going concern or business assets are sold piecemeal

Recovery rate for creditors

• Measures the cents on the dollar recovered by secured creditors • Outcome for the business (survival or not) determines the maximum value that can be recovered • Official costs of the insolvency proceedings are deducted • Depreciation of furniture is taken into account • Present value of debt recovered

Strength of insolvency framework index (0- 16)

• Sum of the scores of four component indices: • Commencement of proceedings index (0-3) • Management of debtor’s assets index (0-6) • Reorganization proceedings index (0-3) • Creditor participation index (0-4)

Page 54 Doing Business 2020 St. Vincent and the Grenadines

Resolving Insolvency - St. Vincent and the Grenadines

Indicator St. Vincent and Latin America & OECD high Best Regulatory the Grenadines Caribbean income Performance

Recovery rate (cents on the dollar) No Practice 31.2 70.2 92.9 (Norway)

Time (years) No Practice 2.9 1.7 0.4 (Ireland)

Cost (% of estate) No Practice 16.8 9.3 1.0 (Norway)

Outcome (0 as piecemeal sale and 1 as going concern) 0 ......

Strength of insolvency framework index (0-16) No Practice 7.2 11.9 None in 2018/19

Figure – Resolving Insolvency in St. Vincent and the Grenadines – Score

0.0 0.0

Recovery rate Strength of insolvency framework index

Figure – Resolving Insolvency in St. Vincent and the Grenadines and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

0 100

39.2: Regional Average (Latin America & Caribbean)

35.6: Antigua and Barbuda (Rank: 132)

34.7: Dominica (Rank: 136)

0.0: Grenada (Rank: 168)

0.0: St. Kitts and Nevis (Rank: 168)

0.0: St. Vincent and the Grenadines (Rank: 168)

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Page 55 Doing Business 2020 St. Vincent and the Grenadines

Figure – Resolving Insolvency in St. Vincent and the Grenadines – Time and Cost

Time (years) Cost (% of estate)

4.5 4.0 16.8 18 4 16 3.5 3.0 2.9 14 3 12 10.0 9.3 2.5 10 2 7.0 1.7 8 1.5 6

Time (years) 1 4

0.5 2 Cost (% of estate) 0 0

Antigua Dominica No Latin OECD No No and Practice America high Practice Practice Barbuda Grenada & income St. St. Caribbean Kitts Vincent and and Nevis the Grenadines

Page 56 Doing Business 2020 St. Vincent and the Grenadines

Figure – Resolving Insolvency in St. Vincent and the Grenadines and comparator economies – Measure of Quality

St. Vincent and the Grenadines 4.5 2.5 3 1

Antigua and Barbuda 2 2 1 0

Dominica 2 2 2 0

Grenada 4.5 2.5 3 1

St. Kitts and Nevis 4.5 2.5 3 1

OECD high income 5.3 2.8 2.1 1.9

Latin America & Caribbean 3.7 2.4 1.9 0.8

0 2 4 6 8 10 12 14 Sub-Indicator Score

Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in St. Vincent and the Grenadines and comparator economies – Recovery Rate

40 37.1 35 31.2 29.6 30 25 20 15 10 5

Recovery rate(cents on the dollar) 0 No Practice No Practice No Practice St. Vincent and \n the Grenadines Antigua and Barbuda Dominica Grenada St. Kitts and Nevis Latin America & Caribbean

Page 57 Doing Business 2020 St. Vincent and the Grenadines

Details – Resolving Insolvency in St. Vincent and the Grenadines

Indicator Answer Score

Proceeding No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study.

Outcome piecemeal sale According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study.

Time (in years) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study.

Cost (% of estate) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study.

Recovery rate No Practice (cents on the dollar)

Page 58 Doing Business 2020 St. Vincent and the Grenadines

Details – Resolving Insolvency in St. Vincent and the Grenadines – Measure of Quality

Answer Score

Strength of insolvency framework index (0-16) No Practice

Commencement of proceedings index (0-3) 2.5

What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for 1.0 both liquidation and reorganization

Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor 0.5 may file for liquidation only

What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (c) Both (a) and (b) 1.0 Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value options are available, of its assets but only one of them needs to be complied with

Management of debtor's assets index (0-6) 4.5

Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the No 0.0 debtor?

Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0

Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0

Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0

Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0 insolvency proceedings?

Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre- 0.5 commencement creditors, secured or unsecured

Reorganization proceedings index (0-3) 1.0

Which creditors vote on the proposed reorganization plan? (b) Only creditors 1.0 whose rights are affected by the proposed plan

Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0 what they would obtain in a liquidation?

Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0 separately and are creditors in the same class treated equally?

Creditor participation index (0-4) 3.0

Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency Yes 1.0 representative?

Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0

Does the insolvency framework provide that a creditor has the right to request information from the insolvency Yes 1.0 representative?

Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting No 0.0 creditors' claims?

Page 59 Doing Business 2020 St. Vincent and the Grenadines

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

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

Hiring To make the data comparable across economies, several assumptions about the worker and the (i) whether fixed-term contracts are prohibited for permanent business are used. tasks; (ii) maximum cumulative duration of fixed-term contracts; (iii) length of the maximum probationary period; (iv) minimum The worker: wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. worker. - Is a full-time employee. - Is not a member of the labor union, unless membership is mandatory. Working hours (i) maximum number of working days allowed per week; (ii) The business: premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy). (iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11 weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city. leave. - Has 60 employees. - Is subject to collective bargaining agreements if such agreements cover more than 50% of the Redundancy rules food retail sector and they apply even to firms that are not party to them. (i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements. party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Page 60 Doing Business 2020 St. Vincent and the Grenadines

Employing Workers - St. Vincent and the Grenadines

Details – Employing Workers in St. Vincent and the Grenadines

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? No

Maximum length of a single fixed-term contract (months) No limit

Maximum length of fixed-term contracts, including renewals (months) No limit

Minimum wage applicable to the worker assumed in the case study (US$/month) 321.9

Ratio of minimum wage to value added per worker 0.3

Maximum length of probationary period (months) 6.0

Working hours

Standard workday 8.0

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 0.0

Premium for work on weekly rest day (% of hourly pay) 0.0

Premium for overtime work (% of hourly pay) 50.0

Restrictions on night work? No

Restrictions on weekly holiday? No

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 14.0

Paid annual leave for a worker with 5 years of tenure (working days) 21.0

Paid annual leave for a worker with 10 years of tenure (working days) 21.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 18.7

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? Yes

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? No

Priority rules for redundancies? No

Priority rules for reemployment? Yes

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.0

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.0

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.0

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 4.0

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 10.0 Page 61 Doing Business 2020 St. Vincent and the Grenadines

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 20.0

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 10.0

Unemployment protection after one year of employment? No

Page 62 Doing Business 2020 St. Vincent and the Grenadines

Business Reforms in St. Vincent and the Grenadines

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.

=Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Paying Taxes: St. Vincent and the Grenadines made paying taxes less costly by reducing the corporate income tax rate.

DB2016

Resolving Insolvency: St. Vincent and the Grenadines made resolving insolvency easier by introducing a rehabilitation procedure; introducing provisions to facilitate the continuation of the debtor’s business during insolvency proceedings and allow creditors greater participation in important decisions during the proceedings; and establishing a public office responsible for the general administration of insolvency cases.

DB2010

Starting a Business: St. Vincent and the Grenadines made starting a business easier by abolishing the requirement for a physical company seal.

Paying Taxes: St. Vincent and the Grenadines made paying taxes less costly for companies by reducing the corporate income tax rate—though it also increased employers’ social security contribution rate.

DB2009

Paying Taxes: St. Vincent and the Grenadines made paying taxes easier and less costly for companies by reducing the corporate income tax rate and by introducing a value added tax to replace a number of existing taxes, including a hotel tax, consumption duty, entertainment tax, stamp duty on receipts and domestic and international telecommunications surcharge.

Resolving Insolvency: St. Vincent and the Grenadines enacted a bankruptcy law, its first set of rules regulating the bankruptcy of private enterprises since its independence.

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