Doing Business 2018 Bangladesh Economy Pro le of Bangladesh Doing Business 2018 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 Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, 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 and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality 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 rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier 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 e cient regulation; o ers 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 o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted 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. Page 2   for insolvency Doing Business Labor market 2018 regulation Bangladesh Flexibility in employment regulation and aspects of job quality 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 rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier 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 e cient regulation; o ers 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 o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted 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. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region South Asia DB 2018 Rank 190 1 Bangladesh Income Category Lower middle income 177 Population 162,951,560 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 1,330 0 100 40.99 City Covered Dhaka DB 2018 Distance to Frontier (DTF) 0 100 60.76: India (Rank: 100) 58.86: Sri Lanka (Rank: 111) 53.64: Regional Average (South Asia) 51.65: Pakistan (Rank: 147) 40.99: Bangladesh (Rank: 177) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Bangladesh Ease of Doing Business in Region South Asia DB 2018 Rank 190 1 Bangladesh Income Category Lower middle income 177 Population 162,951,560 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 1,330 0 100 40.99 City Covered Dhaka DB 2018 Distance to Frontier (DTF) 0 100 60.76: India (Rank: 100) 58.86: Sri Lanka (Rank: 111) 53.64: Regional Average (South Asia) 51.65: Pakistan (Rank: 147) 40.99: Bangladesh (Rank: 177) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Bangladesh 1 28 55 76 82 Rank 109 131 130 136 152 152 159 163 173 185 185 189 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Bangladesh 100 80.67 80 61.97 60 56.67 56.13 DTF 40 34.86 27.67 25.00 27.71 22.21 20 16.97 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.81 Change:+0.09 Change:0.00 Investors Change:+0.37 Borders Change:0.00 Change:+0.69 Change:-0.84 Permits Change:0.00 Change:0.00 Change:+0.37 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.81 Change:+0.09 Change:0.00 Investors Change:+0.37 Borders Change:0.00 Change:+0.69 Change:-0.84 Permits Change:0.00 Change:0.00 Doing Business 2018 Bangladesh Change:+0.37 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in 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 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 distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Page 5   Starting a Business - Dhaka before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Bangladesh Starting a Business - Dhaka Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement BDT 0 City Covered Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Procedure – Men (number) 9 7.9 4.9 1.00 (New Zealand) Time – Men (days) 19.5 15.4 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 9 8.1 4.9 1.00 (New Zealand) Time – Women (days) 19.5 15.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 0.2 8.7 0.00 (113 Economies) Figure – Starting a Business in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 87.74: Sri Lanka (Rank: 77) 80.67: Dhaka 78.61: Pakistan (Rank: 142) 75.40: India (Rank: 156) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Dhaka – Procedure, Time and Cost Time Cost 16 14 ome per capita) 15 12 10 (days) Page 6   10 8 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Starting a Business in Dhaka – Procedure, Time and Cost Time Cost 16 14 Cost (% of income per capita) 15 12 10 Time (days) 10 8 6 5 4 2 0 0 1 2 3 4 5 *6 7 8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the uniqueness of the proposed company name on the website of Less than one day BDT 600 (paid at a the Registrar of Joint Stock Companies and Firms (online procedure) designated Bank) Agency : Registrar of Joint Stock Companies and Firms The search for the availability of a company name was computerized in 2003. After checking that the proposed company name is available for registration, the entrepreneur then applies for name clearance through the Registrar of Joint Stock Companies and Firms (RJSC) website. The status of the application can be checked online and is usually accepted or rejected within 1 working day. If accepted, the company name is reserved for 6 months. A print out of the name clearance certi cate must be submitted to the RJSC, along with the other required documents for incorporation. In addition to the BRAC Bank, the name reservation fee may be paid at the following designated banks: One Bank and Mutual Bank. 2 Pay stamp duty at a designated bank 1 day BDT 3,000 for the Agency : Designated bank Articles of Association + BDT 50 Payment of stamp duty is made to the account of the Treasury at the for a certified copy; designated banks by RJSC (BRAC Bank, Mutual Trust Bank and One Bank) or and BDT 1,000 for through mobile banking service. According to the Stamp Act 1899 as the Memorandum of amended on June 1st, 2016, for an authorized share capital of up to BDT Association + BDT 50 2,000,000, the total stamp duty fees are BDT 4,000. These include BDT 3,000 for a xing stamps on the Articles of Association, and BDT 1,000 for stamps for a certified copy on the Memorandum of Association. In addition, a certi ed copy of each document costs BDT 50. 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Page 7   (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Bangladesh Details – Starting a Business in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the uniqueness of the proposed company name on the website of Less than one day BDT 600 (paid at a the Registrar of Joint Stock Companies and Firms (online procedure) designated Bank) Agency : Registrar of Joint Stock Companies and Firms The search for the availability of a company name was computerized in 2003. After checking that the proposed company name is available for registration, the entrepreneur then applies for name clearance through the Registrar of Joint Stock Companies and Firms (RJSC) website. The status of the application can be checked online and is usually accepted or rejected within 1 working day. If accepted, the company name is reserved for 6 months. A print out of the name clearance certi cate must be submitted to the RJSC, along with the other required documents for incorporation. In addition to the BRAC Bank, the name reservation fee may be paid at the following designated banks: One Bank and Mutual Bank. 2 Pay stamp duty at a designated bank 1 day BDT 3,000 for the Agency : Designated bank Articles of Association + BDT 50 Payment of stamp duty is made to the account of the Treasury at the for a certified copy; designated banks by RJSC (BRAC Bank, Mutual Trust Bank and One Bank) or and BDT 1,000 for through mobile banking service. According to the Stamp Act 1899 as the Memorandum of amended on June 1st, 2016, for an authorized share capital of up to BDT Association + BDT 50 2,000,000, the total stamp duty fees are BDT 4,000. These include BDT 3,000 for a xing stamps on the Articles of Association, and BDT 1,000 for stamps for a certified copy on the Memorandum of Association. In addition, a certi ed copy of each document costs BDT 50. 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Agency : Registrar of Joint Stock Companies and Firms (online procedure) registration fees + BDT 2,400 To register a company, the following documents must be submitted to the registration filing registrar: fees + BDT 2,220 for (1) Name clearance certi cate the certified copies (2) Memorandum and Articles of association of Memorandum and (3) Forms I (Declaration on the registration of the company); Form VI (Notice Articles of of the registered o ce); Form IX (Consent to act as directors); Form X (The list of persons consenting to act as directors); and Form XII (Particulars of Association, Form 12 the Directors, Managers, and Managing Agents) and Digital (4) Proof of payment (i.e. receipt from the designated bank) for Treasury Certificate Stamps The registration fees payable at a designated bank are as follows: i. For ling 6 documents (5 lled in forms and the memorandum & articles of association, the fee is BDT 400.00 per document): BDT 2,400.00 ii. For the authorized share capital of up to BDT 20,000, the fee is BDT 700. An additional fee of BDT 350 is applicable for every BDT 10,000 or part from the rst BDT 20,000 up until BDT 50,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 50,000 up until BDT 1,000,000; An additional fee of BDT 50 is applicable for every BDT 10,000 or part from the rst BDT 1,000,000 up until BDT 5,000,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 5,000,000. Page 8   on the Memorandum of Association. In addition, a certi ed copy of each Doing document Business costs 2018 50. BDT Bangladesh 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Agency : Registrar of Joint Stock Companies and Firms (online procedure) registration fees + BDT 2,400 To register a company, the following documents must be submitted to the registration filing registrar: fees + BDT 2,220 for (1) Name clearance certi cate the certified copies (2) Memorandum and Articles of association of Memorandum and (3) Forms I (Declaration on the registration of the company); Form VI (Notice Articles of of the registered o ce); Form IX (Consent to act as directors); Form X (The list of persons consenting to act as directors); and Form XII (Particulars of Association, Form 12 the Directors, Managers, and Managing Agents) and Digital (4) Proof of payment (i.e. receipt from the designated bank) for Treasury Certificate Stamps The registration fees payable at a designated bank are as follows: i. For ling 6 documents (5 lled in forms and the memorandum & articles of association, the fee is BDT 400.00 per document): BDT 2,400.00 ii. For the authorized share capital of up to BDT 20,000, the fee is BDT 700. An additional fee of BDT 350 is applicable for every BDT 10,000 or part from the rst BDT 20,000 up until BDT 50,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 50,000 up until BDT 1,000,000; An additional fee of BDT 50 is applicable for every BDT 10,000 or part from the rst BDT 1,000,000 up until BDT 5,000,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 5,000,000. Registration fees can be calculated online at http://123.49.32.37:7781/psp/fee_calculator 4 Make a company seal 1 day BDT 30-50 Agency : Sealmaker Business founders can make a company seal at the Seal maker for BDT 30- 50. A better quality seal can be more expensive at BDT 250-300. 5 Obtain a Tax Identi cation Number Less than one day no charge Agency : National Board of Revenue (online procedure) In order to start business operations, every company must register for taxes at the appropriate taxation authority (Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and obtain a tax identi cation number. Obtaining TIN number can now be done online at http://incometax.gov.bd/TINHome in less than one day. 6 Open a Bank Account 1 day no charge Agency : Bank (simultaneous with previous In order to register for VAT, the company must rst open a bank account. procedure) 7 Obtain a trade license 1 week BDT 4,500 Agency : City Corporation Companies obtain a trade license from the City Corporation. Recently, the City Corporation (Dhaka) was divided into 2 zones: the North Zone and the South Zone. The company has to le its application at the nearest City Page 9   Corporation. previous In order to register for VAT, the company must rst open a bank account. Doing Business 2018 Bangladesh procedure) 7 Obtain a trade license 1 week BDT 4,500 Agency : City Corporation Companies obtain a trade license from the City Corporation. Recently, the City Corporation (Dhaka) was divided into 2 zones: the North Zone and the South Zone. The company has to le its application at the nearest City Corporation. The trade license lled-in application form must be accompanied by the following documents: (1) A certi ed copy of the memorandum and articles of association (2) A copy of the certi cate of incorporation (3) Tax Identi cation Number certi cate (5) A copy of the lease agreement of the registered o ce 8 Apply for VAT registration 1 day no charge Agency : National Board of Revenue For VAT purposes, companies register with the Customs, Excise, and VAT Commission under the National Board of Revenue. The company's VAT is regulated by the Customs, VAT and Excise Department of the region in which it operates. When an enterprise submits a VAT Registration application to the VAT authority an application must accomplish or enclosed the following papers & Documents: - Fill-up an application form. - Enterprise Trade License. - Bank Solvency Certi cate. - Owners 02 photograph. - National ID/Passport copy of owners. - IRC/ERC if enterprise dong import and Export Business. - Article & Memorandum (if enterprise is Limited Company.) - TIN Certi cate. - Location MAP of Enterprise premises. Online platform for VAT registration was recently launched at https://vat.gov.bd/sap/bc/ui5_ui5/sap/zmcf_pri/index.html#/Welcome. However, majority of taxpayers prefers to register in person 9 Receive physical inspection of the business premises by a government 1 week no charge agent and Obtain the VAT registration certi cate Page 10   https://vat.gov.bd/sap/bc/ui5_ui5/sap/zmcf_pri/index.html#/Welcome. Doing However, Business 2018 of Bangladesh majority taxpayers prefers to register in person 9 Receive physical inspection of the business premises by a government 1 week no charge agent and Obtain the VAT registration certi cate Agency : National Board of Revenue As of 2010, businesses receive physical inspection by a government agent in order to verify that the company is real before obtaining their VAT registration certi cates. Applies to women only. Takes place simultaneously with previous procedure. Starting a Business - Chittagong Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement BDT 0 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedure – Men (number) 9 7.9 4.9 1.00 (New Zealand) Time – Men (days) 19.5 15.4 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 9 8.1 4.9 1.00 (New Zealand) Time – Women (days) 19.5 15.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 0.2 8.7 0.00 (113 Economies) Figure – Starting a Business in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 87.74: Sri Lanka (Rank: 77) 80.67: Chittagong 78.61: Pakistan (Rank: 142) 75.40: India (Rank: 156) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Page 11   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Starting a Business - Chittagong Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement BDT 0 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedure – Men (number) 9 7.9 4.9 1.00 (New Zealand) Time – Men (days) 19.5 15.4 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Procedure – Women (number) 9 8.1 4.9 1.00 (New Zealand) Time – Women (days) 19.5 15.5 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 22.3 21.4 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 0.2 8.7 0.00 (113 Economies) Figure – Starting a Business in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 87.74: Sri Lanka (Rank: 77) 80.67: Chittagong 78.61: Pakistan (Rank: 142) 75.40: India (Rank: 156) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Chittagong – Procedure, Time and Cost Time Cost 16 14 ome per capita) 15 12 10 (days) Page 12   10 8 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Starting a Business in Chittagong – Procedure, Time and Cost Time Cost 16 14 Cost (% of income per capita) 15 12 10 Time (days) 10 8 6 5 4 2 0 0 1 2 3 *4 5 *6 7 8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the uniqueness of the proposed company name on the website of Less than one day BDT 600 (paid at a the Registrar of Joint Stock Companies and Firms (online procedure) designated Bank) Agency : Registrar of Joint Stock Companies and Firms The search for the availability of a company name was computerized in 2003. After checking that the proposed company name is available for registration, the entrepreneur then applies for name clearance through the Registrar of Joint Stock Companies and Firms (RJSC) website. The status of the application can be checked online and is usually accepted or rejected within 1 working day. If accepted, the company name is reserved for 6 months. A print out of the name clearance certi cate must be submitted to the RJSC, along with the other required documents for incorporation. 2 Pay stamp duty at a designated bank 1 day BDT 3,000 for the Agency : Designated bank Articles of Association + BDT 50 Payment of stamp duty is made to the account of the Treasury at the for a certified copy; designated banks by RJSC (BRAC Bank, Mutual Trust Bank and One Bank) or and BDT 1,000 for through mobile banking service. According to the Stamp Act 1899 as the Memorandum of amended on June 1st, 2016, for an authorized share capital of up to BDT Association + BDT 50 2,000,000, the total stamp duty fees are BDT 4,000. These include BDT 3,000 for a xing stamps on the Articles of Association, and BDT 1,000 for stamps for a certified copy on the Memorandum of Association. In addition, a certi ed copy of each document costs BDT 50. 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Agency : Registrar of Joint Stock Companies and Firms (online procedure) registration fees + Page 13   BDT 2,400 To register a company, the following documents must be submitted to the (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Bangladesh Details – Starting a Business in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the uniqueness of the proposed company name on the website of Less than one day BDT 600 (paid at a the Registrar of Joint Stock Companies and Firms (online procedure) designated Bank) Agency : Registrar of Joint Stock Companies and Firms The search for the availability of a company name was computerized in 2003. After checking that the proposed company name is available for registration, the entrepreneur then applies for name clearance through the Registrar of Joint Stock Companies and Firms (RJSC) website. The status of the application can be checked online and is usually accepted or rejected within 1 working day. If accepted, the company name is reserved for 6 months. A print out of the name clearance certi cate must be submitted to the RJSC, along with the other required documents for incorporation. 2 Pay stamp duty at a designated bank 1 day BDT 3,000 for the Agency : Designated bank Articles of Association + BDT 50 Payment of stamp duty is made to the account of the Treasury at the for a certified copy; designated banks by RJSC (BRAC Bank, Mutual Trust Bank and One Bank) or and BDT 1,000 for through mobile banking service. According to the Stamp Act 1899 as the Memorandum of amended on June 1st, 2016, for an authorized share capital of up to BDT Association + BDT 50 2,000,000, the total stamp duty fees are BDT 4,000. These include BDT 3,000 for a xing stamps on the Articles of Association, and BDT 1,000 for stamps for a certified copy on the Memorandum of Association. In addition, a certi ed copy of each document costs BDT 50. 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Agency : Registrar of Joint Stock Companies and Firms (online procedure) registration fees + BDT 2,400 To register a company, the following documents must be submitted to the registration filing registrar: fees + BDT 2,220 for (1) Name clearance certi cate the certified copies (2) Memorandum and Articles of association of Memorandum and (3) Forms I (Declaration on the registration of the company); Form VI (Notice of the registered o ce); Form IX (Consent to act as directors); Form X (The Articles of list of persons consenting to act as directors); and Form XII (Particulars of Association, Form 12 the Directors, Managers, and Managing Agents) and Digital (4) Proof of payment (i.e. receipt from the designated bank) for Treasury Certificate Stamps The registration fees payable at a designated bank are as follows: i. For ling 6 documents (5 lled in forms and the memorandum & articles of association, the fee is BDT 400.00 per document): BDT 2,400.00 ii. For the authorized share capital of up to BDT 20,000, the fee is BDT 700. An additional fee of BDT 350 is applicable for every BDT 10,000 or part from the rst BDT 20,000 up until BDT 50,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 50,000 up until BDT 1,000,000; An additional fee of BDT 50 is applicable for every BDT 10,000 or part from the rst BDT 1,000,000 up until BDT 5,000,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 5,000,000. Registration fees can be calculated online at Page 14   http://123.49.32.37:7781/psp/fee_calculator on the Memorandum of Association. In addition, a certi ed copy of each Doing document Business costs 2018 50. BDT Bangladesh 3 Register at the Registrar of Joint Stock Companies and Firms Less than one day BDT 11,300 Agency : Registrar of Joint Stock Companies and Firms (online procedure) registration fees + BDT 2,400 To register a company, the following documents must be submitted to the registration filing registrar: fees + BDT 2,220 for (1) Name clearance certi cate the certified copies (2) Memorandum and Articles of association of Memorandum and (3) Forms I (Declaration on the registration of the company); Form VI (Notice of the registered o ce); Form IX (Consent to act as directors); Form X (The Articles of list of persons consenting to act as directors); and Form XII (Particulars of Association, Form 12 the Directors, Managers, and Managing Agents) and Digital (4) Proof of payment (i.e. receipt from the designated bank) for Treasury Certificate Stamps The registration fees payable at a designated bank are as follows: i. For ling 6 documents (5 lled in forms and the memorandum & articles of association, the fee is BDT 400.00 per document): BDT 2,400.00 ii. For the authorized share capital of up to BDT 20,000, the fee is BDT 700. An additional fee of BDT 350 is applicable for every BDT 10,000 or part from the rst BDT 20,000 up until BDT 50,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 50,000 up until BDT 1,000,000; An additional fee of BDT 50 is applicable for every BDT 10,000 or part from the rst BDT 1,000,000 up until BDT 5,000,000; An additional fee of BDT 100 is applicable for every BDT 10,000 or part from the rst BDT 5,000,000. Registration fees can be calculated online at http://123.49.32.37:7781/psp/fee_calculator 4 Make a company seal 1 day BDT 30-50 Agency : Sealmaker Business founders can make a company seal at the Seal maker for BDT 30- 50. A better quality seal can be more expensive at BDT 250-300. 5 Obtain a Tax identi cation number Less than one day no charge Agency : National Board of Revenue (online procedure) In order to start business operations, every company must register for taxes at the appropriate taxation authority (Deputy Commission of Taxes of Company Circle, Zonal Taxation Department) under the National Board of Revenue (NBR) and obtain a tax identi cation number. Obtaining TIN number can now be done online in less than one day. 6 Open a Bank Account 1 day no charge Agency : Bank (simultaneous with previous In order to register for VAT, the company must rst open a bank account. procedure) 7 Obtain a trade license 1 week BDT 4,500 Agency : City Corporation Companies obtain a trade license from the City Corporation (Chittagong). The trade license lled-in application form must be accompanied by the following documents: (1) A certi ed copy of the memorandum and articles of association Page 15   (2) A copy of the certi cate of incorporation previous In order to register for VAT, the company must rst open a bank account. Doing Business 2018 Bangladesh procedure) 7 Obtain a trade license 1 week BDT 4,500 Agency : City Corporation Companies obtain a trade license from the City Corporation (Chittagong). The trade license lled-in application form must be accompanied by the following documents: (1) A certi ed copy of the memorandum and articles of association (2) A copy of the certi cate of incorporation (3) Tax Identi cation Number certi cate (4) Photograph of the Managing Director (5) A copy of the lease agreement of the registered o ce 8 Apply for VAT registration 1 day no charge Agency : National Board of Revenue For VAT purposes, companies register with the Customs, Excise, and VAT Commission under the National Board of Revenue. The company's VAT is regulated by the Customs, VAT and Excise Department of the region in which it operates. When an enterprise submits a VAT Registration application to the VAT authority an application must accomplish or enclosed the following papers & Documents: o Fill-up an application form. o Enterprise Trade License. o Bank Solvency Certi cate. o Owners 02 photograph. o National ID/Passport copy of owners. o IRC/ERC if enterprise dong import and Export Business. o Article & Memorandum (if enterprise is Limited Company.) o TIN Certi cate. o Location MAP of Enterprise premises. 9 Receive physical inspection of the business premises by a government 1 week no charge agent and Obtain the VAT registration certi cate Agency : National Board of Revenue As of 2010, businesses receive physical inspection by a government agent in order to verify that the company is real before obtaining their VAT registration certi cates. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, Page 16   submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh 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 noti cations, 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 certi cation requirements. The most recent round of data collection was completed in June 2017. 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 Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials 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 - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory 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 Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Dealing with Construction Permits - Dhaka Page 17   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Bangladesh Dealing with Construction Permits - Dhaka Standardized Warehouse Estimated value of warehouse BDT 5,634,684.30 City Covered Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Procedures (number) 14 16.0 12.5 7.00 (Denmark) Time (days) 278 193.9 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 2.4 17.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 8.7 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.33: Sri Lanka (Rank: 76) 61.49: Dhaka 59.72: Pakistan (Rank: 141) 38.80: India (Rank: 181) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Dhaka – Procedure, Time and Cost Time Cost 1.2 250 1 Cost (% of warehouse value) 200 0.8 Time (days) 150 0.6 100 0.4 50 0.2 0 0 1 2 *3 4 5 *6 *7 *8 9 10 11 12 13 * 14 Page 18   component indicators. Doing Business 2018 Bangladesh Figure – Dealing with Construction Permits in Dhaka – Procedure, Time and Cost Time Cost 1.2 250 1 Cost (% of warehouse value) 200 0.8 Time (days) 150 0.6 100 0.4 50 0.2 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. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Dhaka and comparator economies – Measure of Quality 14 12.0 12 11.5 10.0 10 8.7 Index score 8 6 5.5 4 2 0 Dhaka India Pakistan Sri Lanka South Asia Details – Dealing with Construction Permits in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral survey map from Land Settlement O ce 3 days USD 25 Agency : Land Settlement O ce 2 Obtain zoning clearance 45 days no charge Agency : Rajuk (Capital Development Authority) To obtain clearance, BuildCo must present proof of land ownership and the cadastral maps showing the exact site location. An anticorruption drive of the interim government of Bangladesh stemmed from massive violations of building regulations on one hand and collapse of buildings with casualties on the other hand impacted the work of some areas of construction regulation. Obtaining zoning clearance takes on average 2 -- 3 months if no bribes are Page 19   Dhaka India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Dealing with Construction Permits in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral survey map from Land Settlement O ce 3 days USD 25 Agency : Land Settlement O ce 2 Obtain zoning clearance 45 days no charge Agency : Rajuk (Capital Development Authority) To obtain clearance, BuildCo must present proof of land ownership and the cadastral maps showing the exact site location. An anticorruption drive of the interim government of Bangladesh stemmed from massive violations of building regulations on one hand and collapse of buildings with casualties on the other hand impacted the work of some areas of construction regulation. Obtaining zoning clearance takes on average 2 -- 3 months if no bribes are paid, while the time limit by law is 15 days. 3 Obtain soil test report 24 days BDT 59,500 Agency : Private Company An external rm is generally hired for conducting a soil test. 4 Obtain project clearance from the local authority (Ward Commissioner, 3 days no charge Dhaka City Corporation) Agency : Dhaka City Corporation To obtain the local authority’s approval, BuildCo must submit an application with the proposed design plans. The approval may take anywhere from 3 to 7 days. 5 Obtain project clearance from the Environmental Directorate 30 days USD 80 Agency : Environmental Directorate The Environmental Directorate of Rajuk issues three types of clearances based on the type of establishment: green (nonpolluting), orange (low polluting), and red (high polluting). For the green category, the environmental clearance is issued for a fee of USD 25.00. If uno cial payments are made, the environmental clearance can be obtained in a week. For other categories, the cost and time to obtain a clearance are higher. To obtain a project clearance, the following documents are required, depending on the environmental category: • Approval from the Ward Commissioner, Dhaka City Corporation • Project pro le, feasibility report, and drawings • Land ownership documents • Cadastral survey map and location map • Trade license (copy) • Registration of the Board of Investment (copy) • EIA/ IEE/ EMP Report • Fees payable to DOE Fees by total project cost USD 0–0.08 million: USD 25.00 USD 0.08 million–0.16 million: USD 50.00 USD 0.16 million–0.8 million: USD 80.00 USD 0.8 million–1.6 million: USD 160.00 USD 1.6 million–32 million: USD 400.00 USD 32 million–80 million: USD 800.00 Page 20   USD 80-million and above: USD 1,600.00 with the proposed design plans. The approval may take anywhere from 3 to Doing 7 days. Business 2018 Bangladesh 5 Obtain project clearance from the Environmental Directorate 30 days USD 80 Agency : Environmental Directorate The Environmental Directorate of Rajuk issues three types of clearances based on the type of establishment: green (nonpolluting), orange (low polluting), and red (high polluting). For the green category, the environmental clearance is issued for a fee of USD 25.00. If uno cial payments are made, the environmental clearance can be obtained in a week. For other categories, the cost and time to obtain a clearance are higher. To obtain a project clearance, the following documents are required, depending on the environmental category: • Approval from the Ward Commissioner, Dhaka City Corporation • Project pro le, feasibility report, and drawings • Land ownership documents • Cadastral survey map and location map • Trade license (copy) • Registration of the Board of Investment (copy) • EIA/ IEE/ EMP Report • Fees payable to DOE Fees by total project cost USD 0–0.08 million: USD 25.00 USD 0.08 million–0.16 million: USD 50.00 USD 0.16 million–0.8 million: USD 80.00 USD 0.8 million–1.6 million: USD 160.00 USD 1.6 million–32 million: USD 400.00 USD 32 million–80 million: USD 800.00 USD 80-million and above: USD 1,600.00 Renewal fees by total project cost USD 0–0.08 million: USD 5.00 USD 0.08 million–0.16 million: USD 12.00 USD 0.16 million–0.8 million: USD 20.00 USD 0.8 million–1.6 million: USD 40.00 USD 1.6 million–32 million: USD 125.00 USD 32 million–80 million: USD 250.00 USD 80-million and above: USD 400.00 6 Obtain re safety clearance 15 days BDT 8,000 Agency : Fire Department 7 Obtain clearance from Dhaka Electricity Supply Co (DESCO) 15 days no charge Agency : Dhaka Electricity Supply Co (DESCO) BuildCo must obtain the clearance from Dhaka Electricity Supply Co (DESCO) for the electrical plans. 8 Obtain water and sanitation clearance 15 days no charge Agency : Dhaka Water and Sewerage Authority (WASA) The plumbing plans must be cleared by the relevant agencies. 9 Request and receive inspection from the City Development Authority 60 days no charge (RAJUK) Agency : City Development Authority (RAJUK) Before the building permit is issued, the authorized o cers must visit the site to ascertain its location according to the drawings and maps. However, with only a handful of o cers and a massive number of applications, it is Page 21   extremely di cult to comply with the original 30-day time limit established Agency : Dhaka Water and Sewerage Authority (WASA) Doing The plumbing Business plans must 2018 be cleared by the relevant agencies. Bangladesh 9 Request and receive inspection from the City Development Authority 60 days no charge (RAJUK) Agency : City Development Authority (RAJUK) Before the building permit is issued, the authorized o cers must visit the site to ascertain its location according to the drawings and maps. However, with only a handful of o cers and a massive number of applications, it is extremely di cult to comply with the original 30-day time limit established by the government. The procedure still takes 2 -- 5 months on average. 10 Obtain project clearance and building permit from the City Development 105 days BDT 30,000 Authority (RAJUK) Agency : City Development Authority (RAJUK) The approving panel of the City Development Authority (RAJUK) meets weekly to discuss cases. In early 2007, o cials in the Ministry of Works imposed a 30-day time limit on the process. Applicants must obtain all relevants clearances, water, sanitation, electricity and a re safety clearance certi cate before applying for the building permit. Each agency that provides approval is given a 7-day time limit, but it is generally not complied with. 11 Receive random inspection from the City Development Authority 1 day no charge (RAJUK) Agency : City Development Authority (RAJUK) According to the 2006 National Building Code, Section II, chapter 3, all inspections during construction are carried out by a structural engineer who must sign the certi cate of supervision. However, a building o cer from the City Development Authority may carry out one random inspection during construction to verify that the work is being done according to the approved plans 12 Submit notice of completion and obtain the certi cate of conformity 21 days no charge Agency : City Development Authority (RAJUK) According to the 2006 National Building Code, chapter 3, section 3.3.4, the completion notice must be signed by the structural engineer who has supervised the entire construction phase. The notice of completion certi es that the building has been built in compliance with the existing regulations. The authorities may or may not inspect the building. It is only after receipt of this completion notice that the certi cate of conformity can be issued. 13 Request and obtain water and sewerage connection 10 days BDT 30,000 Agency : Dhaka Water and Sewerage Authority (WASA) Receive inspection by tax inspector from Dhaka City Corporation upon 1 day no charge 14 completion of construction Agency : Dhaka City Corporation A tax inspector from the Dhaka City Corporation visits the site to assess the completed building. No appointment is necessary and there are no fees paid. The tax authority then sends the annual tax bill which will arrive 30 days later. Takes place simultaneously with previous procedure. Page 22   Details – Dealing with Construction Permits in Dhaka – Measure of Quality Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Dealing with Construction Permits in Dhaka – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Page 23   Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Dealing with Construction Permits in Dhaka – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Page 24   building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the Doing Business 2018 Bangladesh law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer; Passing a certi cation exam. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. Dealing with Construction Permits - Chittagong Standardized Warehouse Estimated value of warehouse BDT 5,634,684.30 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedures (number) 15 16.0 12.5 7.00 (Denmark) Time (days) 237 193.9 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 2.2 17.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 8.7 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 Page 25   69.33: Sri Lanka (Rank: 76) architect or engineer. Doing Business 2018 Bangladesh Dealing with Construction Permits - Chittagong Standardized Warehouse Estimated value of warehouse BDT 5,634,684.30 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedures (number) 15 16.0 12.5 7.00 (Denmark) Time (days) 237 193.9 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 2.2 17.6 1.6 0.10 (5 Economies) Building quality control index (0-15) 10.0 8.7 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.33: Sri Lanka (Rank: 76) 63.68: Chittagong 59.72: Pakistan (Rank: 141) 38.80: India (Rank: 181) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Chittagong – Procedure, Time and Cost Time Cost 1.2 200 1 Cost (% of warehouse value) 0.8 150 Time (days) 0.6 100 0.4 50 0.2 Page 26   0 0 component indicators. Doing Business 2018 Bangladesh Figure – Dealing with Construction Permits in Chittagong – Procedure, Time and Cost Time Cost 1.2 200 1 Cost (% of warehouse value) 0.8 150 Time (days) 0.6 100 0.4 50 0.2 0 0 1 2 3 *4 *5 *6 *7 8 9 10 11 12 13 14 * 15 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 di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Chittagong and comparator economies – Measure of Quality 14 12.0 12 11.5 10.0 10 8.7 Index score 8 6 5.5 4 2 0 Chittagong India Pakistan Sri Lanka South Asia Details – Dealing with Construction Permits in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral survey map and proof of ownership from Land Records 3 days USD 25 Department Agency : Land Records Department 2 Obtain project approval from Ward Commissioner 4 days no charge Agency : Chittagong City Corporation Due to the location of the Doing Business case study warehouse (which would be near the port), BuildCo is required to obtain the approval of the land commissioner for the project, in addition to the building permit from the Development Authority. An application must therefore be submitted, along with the design plan. Page 27   Chittagong India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Dealing with Construction Permits in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain cadastral survey map and proof of ownership from Land Records 3 days USD 25 Department Agency : Land Records Department 2 Obtain project approval from Ward Commissioner 4 days no charge Agency : Chittagong City Corporation Due to the location of the Doing Business case study warehouse (which would be near the port), BuildCo is required to obtain the approval of the land commissioner for the project, in addition to the building permit from the Development Authority. An application must therefore be submitted, along with the design plan. 3 Obtain land use clearance (LUC) from the Chittagong Development 40 days no charge Authority Agency : Chittagong Development Authority (CDA) The land use clearance is obtained to ensure that the plot of land can be used for construction purposes.  4 Obtain re safety license 15 days BDT 8,000 Agency : Fire Authority A re safety license must be obtained from the re authority. This can be done while the land use clearance is being processed. 5 Obtain clearance from Bangladesh Power Development Board 15 days no charge Agency : Bangladesh Power Development Board BuildCo must rst obtain the clearance from Bangladesh Power Development Board for the electrical plans before applying for the building permit. 6 Obtain water and sanitation clearance 15 days no charge Agency : Chittagong WASA The plumbing plans must be cleared by the relevant agencies. 7 Obtain soil test report 24 days BDT 59,500 Agency : Private Company A soil test study must be obtained prior to applying for the permit. A certi ed company provided by the government conducts the soil test. 8 Request and receive inspection from the Chittagong Development 60 days no charge Authority (CDA) Agency : Chittagong Development Authority (CDA) The Chittagong Development Authority (CDA) will then have to inspect the land physically and make its own independent assessment. The waiting time is about 3-6 months for inspectors to visit the site because of a backlog in requests. If the inspection is satisfactory, the inspector then submits a report to the CDA for the approval of the building permit. 9 Obtain building permit from the Chittagong Development Authority 105 days BDT 26,000 (CDA) Page 28   requests. If the inspection is satisfactory, the inspector then submits a Doing report to the Business the approval of the building permit. CDA for Bangladesh 2018 9 Obtain building permit from the Chittagong Development Authority 105 days BDT 26,000 (CDA) Agency : Chittagong Development Authority (CDA) BuildCo submits an application for a building permit to the Authorization Committee of CDA. It can take as long as 3-6 months from the moment a satisfactory report on the inspection is issued to the time it takes CDA to issue the building permit. 10 Receive random inspection during construction 1 day no charge Agency : Chittagong Development Authority (CDA) A building o cer will randomly inspect the construction site. 11 Submit completion certi cate and receive certi cate of conformity 1 day no charge Agency : Chittagong Development Authority (CDA) According to the National Building Code, Chapter 3, Section 3.3.4, the completion notice must be signed by the structural engineer who has supervised the entire construction phase, certifying that the building has been built in compliance with the existing regulations. The authority may or may not conduct a nal inspection of the building. It is only after receipt of this completion notice that the certi cate of conformity is issued. 12 Request water connection at WASA 1 day no charge Agency : Chittagong WASA BuildCo must rst submit an application to get a new water connection. 13 Receive inspection for water assessment works 1 day no charge Agency : Chittagong WASA The sales division will then visit the site and assess the feasibility of the work. If feasible, they will issue a demand note containing the cost estimate for the excavation and the pipes. If there is road crossing involved, an extra permit from the city would be required. 14 Obtain water connection 21 days BDT 30,000 Agency : Chittagong WASA Receive inspection by tax inspector from Chittagong City Corporation 1 day no charge 15 upon completion of construction Agency : Chittagong City Corporation A tax inspector from the Chittagong City Corporation visits the site to assess the completed building. No appointment is necessary and there are no fees paid. The tax authority then sends the annual tax bill, which will arrive 30 days later. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Chittagong – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 Page 29   How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Dealing with Construction Permits in Chittagong – Measure of Quality Answer Score Building quality control index (0-15) 10.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Page 30   building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the Doing Business 2018 Bangladesh law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 2.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the University 1.0 construction on the ground? (0-2) degree in engineering, construction or construction management; Being a registered architect or engineer. 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 tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). Page 31   follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or architect or engineer. Doing Business 2018 Bangladesh 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 tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 32   Getting Electricity - Dhaka frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Bangladesh Getting Electricity - Dhaka Standardized Connection Price of electricity (US cents per kWh) 9.2 Name of utility Dhaka Electric Supply Company Ltd. (DESCO) City Covered Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Procedures (number) 9 5.7 4.7 2 (United Arab Emirates) Time (days) 404 136.4 79.1 10 (United Arab Emirates) Cost (% of income per capita) 2666.8 1163.2 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 2.1 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.21: India (Rank: 29) 70.98: Sri Lanka (Rank: 93) 42.39: Pakistan (Rank: 167) 16.77: Dhaka Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Dhaka – Procedure, Time and Cost Time Cost 400 1800 350 1600 (% of income per capita) 1400 300 1200 250 Time (days) 1000 200 800 150 Page 33   600 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Getting Electricity in Dhaka – Procedure, Time and Cost Time Cost 400 1800 350 1600 Cost (% of income per capita) 1400 300 1200 250 Time (days) 1000 200 800 150 600 100 400 50 200 0 0 1 2 *3 4 5 6 *7 8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Dhaka and comparator economies – Measure of Quality 8 7 7 6 5 Index score 5 4 3 2.1 2 1 0 0 0 Dhaka India Pakistan Sri Lanka South Asia Details – Getting Electricity in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain clearance for setting up substation 14 calendar days BDT 0 Agency : Ministry of Power The customer must obtain a clearance from the Chief Electric Inspector’s o ce to set up the substation. To do so, the following documents must be submitted: design plans of warehouse, plan of the substation and the total load requirement. Ideally, this clearance should be obtained immediately, however this can take several weeks and repeated follow-up visits with the o ce. 2 Obtain permission for installation of underground cable 21 calendar days BDT 0 Agency : City Corporation Page 34   Dhaka India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Getting Electricity in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain clearance for setting up substation 14 calendar days BDT 0 Agency : Ministry of Power The customer must obtain a clearance from the Chief Electric Inspector’s o ce to set up the substation. To do so, the following documents must be submitted: design plans of warehouse, plan of the substation and the total load requirement. Ideally, this clearance should be obtained immediately, however this can take several weeks and repeated follow-up visits with the o ce. 2 Obtain permission for installation of underground cable 21 calendar days BDT 0 Agency : City Corporation Once the clearance has been obtained from the City Corporation o ce for the excavation works, the customer must also inform the local police station for the road works 3 Hire electrical contracting rm to purchase substation equipment, get it 15 calendar days BDT 1,800,000 tested and carry out installation and earthing Agency : Outside rm All electrical equipment, the distribution transformer, etc, must be purchased and tested by the Bangladesh University of Engineering and Technology (BUET), before submitting the application for a new electricity connection to the utility. Usually, all these equipment are readily available in Dhaka. 4 Apply for license from O ce of Chief Electrical Inspector 28 calendar days BDT 5,000 Agency : Ministry of Energy This is the o cial clearance required in order to set up the warehouse and obtain the electric connection (not just for internal wiring). Procedure 1 is at a more "informal" level and happens in practice to keep the relevant o cials informed, but this o cially takes place once customer have already gone through Procedures 2 and 3. Documents required • Application form • Technical speci cations of equipment and test report • Land registration deed (on which warehouse is located) • RAJUK approval/mutation certi cate • Fire service permission (for underground cabling) • Architectural approval 5 Submit application to Dhaka Electric Supply Company (DESCO) and 277 calendar days BDT 110,339.75 await estimate Agency : DESCO 1. List of documents to be provided with application • Two duly certi ed passport size photos • Copy of land deed paper and copy of mutation certi cate where necessary. • Copy of land tax payment to the municipal/union parishad. • Copy of the agreement paper between the landowner and developer, if building is constructed by real estate developer. • Design of the building, duly approved by RAJUK/Municipal Corporation. Page 35   • Clear location of the meter room, including the S/S in the plan, duly • Fire service permission (for underground cabling) Architectural Doing •Business approval 2018 Bangladesh 5 Submit application to Dhaka Electric Supply Company (DESCO) and 277 calendar days BDT 110,339.75 await estimate Agency : DESCO 1. List of documents to be provided with application • Two duly certi ed passport size photos • Copy of land deed paper and copy of mutation certi cate where necessary. • Copy of land tax payment to the municipal/union parishad. • Copy of the agreement paper between the landowner and developer, if building is constructed by real estate developer. • Design of the building, duly approved by RAJUK/Municipal Corporation. • Clear location of the meter room, including the S/S in the plan, duly approved by RAJUK/Municipal Corporation. • Certi ed copy of test result on electrical equipment. • Copy of approved/duly certi ed single line diagram and earthwork diagram of the S/S. • Copy of the layout diagram of S/S from the O ce of Chief Electrical Inspector. • Copy of the license received from O ce of Chief Electrical Inspector. • Detailed description of present connection status. • Copy of the last paid bills. 2. The applicant needs to bear all the cost of 11.4kV S/S and to be connected with the nearby 11kV supply of DPDC through underground cable. 3. On submission of application, DESCO will calculate the load requirement for solar panel The long duration noted for this procedure is due to the delay in the customer receiving the demand notice from the utility. 6 Have electrical contracting rm carry out external works 20 calendar days BDT 270,000 Agency : Outside rm The customer must hire an electrical contracting rm to carry out the external works. This is basically the setting up of the substation on the warehouse premises. All equipment already purchased, electrical contractor rm and builder does the site construction and installation of equipment 7 Receive installation of solar panels by private rm 14 calendar days BDT 570,000 Agency : Private solar panel installation company As per the Ministry’s directive to all the utilities, all new connections with demand above 2KW will now require installation of solar panels. For domestic purposes, solar energy should meet at least 2 percent of the demand, for commercial 7 percent and for industrial 10 percent. 8 Have electrical contracting rm purchase meter 14 calendar days BDT 250,000 Agency : Outside rm The meter can be collected once the estimate has been paid, and the utility sends communication to the stores department, and stores department then issues an account number, and the meter is then available for pickup. 9 Receive meter testing and installation, nal inspection and electricity 30 calendar days BDT 0 ow Agency : DESCO The utility conducts nal internal as well as external inspection, tests the meter and electricity starts owing. Takes place simultaneously with previous procedure. Page 36   The utility conducts nal internal as well as external inspection, tests the Doing meter and electricity Business starts owing. 2018 Bangladesh Takes place simultaneously with previous procedure. Details – Getting Electricity in Dhaka – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online www.berc.org.bd Are customers noti ed of a change in tari 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 tari 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. Getting Electricity - Chittagong Standardized Connection Price of electricity (US cents per kWh) 9.2 Name of utility BPDB, Chittagong Page 37   Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Getting Electricity in Dhaka – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online www.berc.org.bd Are customers noti ed of a change in tari 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 tari 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. Getting Electricity - Chittagong Standardized Connection Price of electricity (US cents per kWh) 9.2 Name of utility BPDB, Chittagong City Covered Chittagong Page 38   OECD high If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Bangladesh Getting Electricity - Chittagong Standardized Connection Price of electricity (US cents per kWh) 9.2 Name of utility BPDB, Chittagong City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedures (number) 9 5.7 4.7 2 (United Arab Emirates) Time (days) 517 136.4 79.1 10 (United Arab Emirates) Cost (% of income per capita) 2376.2 1163.2 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 2.1 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.21: India (Rank: 29) 70.98: Sri Lanka (Rank: 93) 42.39: Pakistan (Rank: 167) 17.67: Chittagong Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Chittagong – Procedure, Time and Cost Time Cost 1400 500 1200 (% of income per capita) 400 1000 Time (days) 300 800 600 200 Page 39   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Getting Electricity in Chittagong – Procedure, Time and Cost Time Cost 1400 500 1200 Cost (% of income per capita) 400 1000 Time (days) 300 800 600 200 400 100 200 0 0 1 2 *3 4 5 6 7 *8 9 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Chittagong and comparator economies – Measure of Quality 8 7 7 6 5 Index score 5 4 3 2.1 2 1 0 0 0 Chittagong India Pakistan Sri Lanka South Asia Details – Getting Electricity in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain clearance for setting up substation 14 calendar days BDT 0 Agency : BPDB, Chittagong The customer must obtain a clearance from the Chief Electric Inspector’s o ce to set up the substation. To do so, the following documents must be submitted: design plans of warehouse, plan of the substation, and the total load requirement. Ideally, this clearance should be obtained immediately, however this can take several weeks and repeated follow-up visits with the o ce. 2 Hire electrical contracting rm to purchase substation equipment and 30 calendar days BDT 1,400,000 carry out installation and earthing Page 40   Agency : Outside rm Chittagong India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Getting Electricity in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain clearance for setting up substation 14 calendar days BDT 0 Agency : BPDB, Chittagong The customer must obtain a clearance from the Chief Electric Inspector’s o ce to set up the substation. To do so, the following documents must be submitted: design plans of warehouse, plan of the substation, and the total load requirement. Ideally, this clearance should be obtained immediately, however this can take several weeks and repeated follow-up visits with the o ce. 2 Hire electrical contracting rm to purchase substation equipment and 30 calendar days BDT 1,400,000 carry out installation and earthing Agency : Outside rm All electrical equipment, the distribution transformer, etc, must be purchased and tested by a testing lab before submitting the application for a new electricity connection to the utility. Usually, all these equipment are readily available in Chittagong. 3 Obtain permission for installation of underground cable 28 calendar days BDT 0 Agency : Chittagong Development Authority (CDA) Once the clearance has been obtained from the CDA o ce for the excavation works, the customer must also inform the local police station for the road works. 4 Apply for certi cate of connection from Electricity License Board 28 calendar days BDT 5,000 Agency : Ministry of Power, Energy and Mineral Resources The client must apply for the certi cate of connection from the Electricity License Board. This is the o cial clearance required in order to set up the warehouse and obtain the electric connection (not just for internal wiring). Documents required: • Application form • Technical speci cations of equipment and test report • Land registration deed (on which warehouse is located) • CCC approval/mutation certi cate • Fire service permission (for underground cabling) • Architectural approval 5 Submit application to BPDB Chittagong and await estimate 365 calendar days BDT 182,801.93 Agency : BPDB, Chittagong List of documents to be provided with application: • Two duly certi ed passport size photos • Copy of land deed paper and copy of mutation certi cate where necessary. • Copy of land tax payment to the municipal/union parishad. • Copy of the agreement paper between the landowner and developer, if building is constructed by real estate developer. • Design of the building, duly approved by CDA. • Clear location of the meter room, including the S/S in the plan, duly approved by CDA • Certi ed copy of test result on electrical equipment. • Copy of approved/duly certi ed single line diagram and earthwork diagram of the S/S Page 41   • Copy of the layout diagram of S/S from the O ce of Chief Electrical • Fire service permission (for underground cabling) Architectural Doing •Business approval 2018 Bangladesh 5 Submit application to BPDB Chittagong and await estimate 365 calendar days BDT 182,801.93 Agency : BPDB, Chittagong List of documents to be provided with application: • Two duly certi ed passport size photos • Copy of land deed paper and copy of mutation certi cate where necessary. • Copy of land tax payment to the municipal/union parishad. • Copy of the agreement paper between the landowner and developer, if building is constructed by real estate developer. • Design of the building, duly approved by CDA. • Clear location of the meter room, including the S/S in the plan, duly approved by CDA • Certi ed copy of test result on electrical equipment. • Copy of approved/duly certi ed single line diagram and earthwork diagram of the S/S • Copy of the layout diagram of S/S from the O ce of Chief Electrical Inspector. • Copy of the license received from O ce of Chief Electrical Inspector. • Detailed description of present connection status. • Trade license • Land documents • Copy of the last paid bills. 2. The applicant needs to bear all the cost of 11.4kV S/S and to be connected with the nearby 11kV supply of DPDC through underground cable. The long duration noted for this procedure is due to the delay in the customer receiving the demand notice from the utility. 6 Have electrical contracting rm carry out external works 30 calendar days BDT 270,000 Agency : Customer's electrical contracting rm The customer must hire an electrical contracting rm to carry out the external works. This is basically the setting up of the substation on the warehouse premises. All equipment already purchased, electrical contractor rm and builder does the site construction and installation of equipment 7 Have electrical contracting rm purchase meter 14 calendar days BDT 250,000 Agency : Customer's electrical contracting rm Once payment has been received, the utility will instruct the stores department to issue an account number. The meter is then available for pickup by the electrical contracting, ready for installation. 8 Receive installation of solar panels by private rm 14 calendar days BDT 570,000 Agency : Private solar panel installation rm As per the Ministry’s directive to all the utilities, all new connections with demand above 2KW will now require the installation of solar panels. For domestic purposes, solar energy should meet at least 2 percent of the demand, for commercial 7 percent and for industrial 10 percent. 9 Receive meter testing and installation, nal inspection and electricity 35 calendar days BDT 0 ow Agency : BPDB, Chittagong After the installation of all Electrical equipment, an authorized inspector from the PDB license board will inspect all installation and equipment. If the inspection is successful, a certi cate of conformity will be issued, with an o cial seal. Company will then re-submit the certi cate to PDB and electricity will start owing. Page 42   Takes place simultaneously with previous procedure. domestic purposes, solar energy should meet at least 2 percent of the Doing demand, Business commercial for2018 7 percent and for industrial 10 percent. Bangladesh 9 Receive meter testing and installation, nal inspection and electricity 35 calendar days BDT 0 ow Agency : BPDB, Chittagong After the installation of all Electrical equipment, an authorized inspector from the PDB license board will inspect all installation and equipment. If the inspection is successful, a certi cate of conformity will be issued, with an o cial seal. Company will then re-submit the certi cate to PDB and electricity will start owing. Takes place simultaneously with previous procedure. Details – Getting Electricity in Chittagong – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.berc.org. bd/index.php?id=101 Are customers noti ed of a change in tari 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 tari 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 43   Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Getting Electricity in Chittagong – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) .. System average interruption frequency index (SAIFI) .. What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI N/A Mechanisms for monitoring outages (0-1) 0 Does the distribution utility use automated tools to monitor outages? No Mechanisms for restoring service (0-1) 0 Does the distribution utility use automated tools to restore service? No Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.berc.org. bd/index.php?id=101 Are customers noti ed of a change in tari 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 tari 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. 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 ve 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 June 2017. See the methodology for more information. What the indicators measure Case study assumptions Page 44   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Bangladesh 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 ve 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 June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Registering Property - Dhaka Standard Property Transfer Property value BDT 5,634,684.30 Page 45   Doing Business 2018 Bangladesh Registering Property - Dhaka Standard Property Transfer Property value BDT 5,634,684.30 City Covered Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Procedures (number) 8 6.8 4.6 1.00 (4 Economies) Time (days) 244 111.6 22.3 1.00 (3 Economies) Cost (% of property value) 6.4 6.9 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 4.5 8.0 22.7 29.00 (Singapore) Figure – Registering Property in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 47.08: India (Rank: 154) 45.92: Sri Lanka (Rank: 157) 41.41: Pakistan (Rank: 170) 28.54: Dhaka Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Dhaka – Procedure, Time and Cost Time Cost 3.5 3 200 Cost (% of property value) 2.5 150 Time (days) 2 100 1.5 1 50 0.5 0 0 1 *2 *3 4 5 6 7 *8 Procedures (number) Page 46   registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Registering Property in Dhaka – Procedure, Time and Cost Time Cost 3.5 3 200 Cost (% of property value) 2.5 150 Time (days) 2 100 1.5 1 50 0.5 0 0 1 *2 *3 4 5 6 7 *8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Dhaka and comparator economies – Measure of Quality 9 8.2 8.0 8 7.6 7 6 Index score 5 4.5 4 3 2.5 2 1 0 Dhaka India Pakistan Sri Lanka South Asia Details – Registering Property in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct RS Mutation on property 45-60 days BDT 6,000-15,000 Agency : Assistant Commissioner of Lands (Tahsil) (simultaneous with Procedures 1 and Since the last survey on Dhaka was done, transfers of property titles created 3) before then must be converted (mutated) to the new survey. Since January 2012 in Dhaka instead of conducting RS Mutation, City surveys are conducted. This is done by the Assistant Commissioner of Lands (Tahsil) and Speci c Tahsil O ce, after an application is submitted to former to proceed with the mutation. The Assistant Commissioner forwards this application to the Tahsil O ce, who is responsible for conducting the relevant survey and providing a report to Assistant Commissioner of Land. Upon receiving the report, the Assistant Commissioner of Land renders the mutation certi cate. Page 47   The inspection is recorded in Procedure 2. From January, 1 2012 all Dhaka India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Registering Property in Dhaka – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Conduct RS Mutation on property 45-60 days BDT 6,000-15,000 Agency : Assistant Commissioner of Lands (Tahsil) (simultaneous with Procedures 1 and Since the last survey on Dhaka was done, transfers of property titles created 3) before then must be converted (mutated) to the new survey. Since January 2012 in Dhaka instead of conducting RS Mutation, City surveys are conducted. This is done by the Assistant Commissioner of Lands (Tahsil) and Speci c Tahsil O ce, after an application is submitted to former to proceed with the mutation. The Assistant Commissioner forwards this application to the Tahsil O ce, who is responsible for conducting the relevant survey and providing a report to Assistant Commissioner of Land. Upon receiving the report, the Assistant Commissioner of Land renders the mutation certi cate. The inspection is recorded in Procedure 2. From January, 1 2012 all properties automatically come under City Survey Khatian. 2 Obtain inspection for RS Mutation 45-60 days Included in Agency : Assistant Commissioner of Lands (Tahsil) (simultaneous with Procedure 1 Procedures 1 and The permission is only mandatory when the property is under the control of 2) either the Ministry of Works (National Housing Authority) or RAJUK (Dhaka Improvement Trust since 1952 until it was renamed Rajdhani Unnayan Kartripakkh –RAJUK in 1982). Although the permission is usually always granted, uno cial payments are still paid in order to expedite the process and guarantee approval, which amount to BDT 20,000. The buyer also checks that the property is up to date with payments to the City Corporation Revenue Department, gas utility service, electricity utility service, and the water utility service to make sure that there is no outstanding dues payable so that the those liabilities do not transfer to him. Each of these checks will cost around BDT 625. These are standard steps customary in Bangladesh and not mandatory for registration. 3 Verify the record of rights from the Land O ce (also known as Land 20 days BDT 3,000-6,000 Revenue O ce) (simultaneous with Agency : Land O ce or Land Revenue O ce procedures 2 and 3) Parties check that land tax payments are up to date. The Land Administration system in Bangladesh separates Records of Ownership and Records on Revenue as such: (a) Land Records O ce for land records, surveys, publication and maintenance of records under the directorate of land records and survey (Ministry of Land). (b) Land O ce or Land Revenue O ce under Ministry of Land. There are 11 administrative o ces in each upajela (sub district). (c) There are 64 districts in Bangladesh but 61 registration districts. 3 hill districts do not have registration centres. In Dhaka, the district land registration o ce has 13 subregistrar o ces under the Ministry of Law. Page 48   Each of these checks will cost around BDT 625. These are standard steps Businessin Doing customary Bangladesh 2018 and not mandatory for registration. Bangladesh 3 Verify the record of rights from the Land O ce (also known as Land 20 days BDT 3,000-6,000 Revenue O ce) (simultaneous with Agency : Land O ce or Land Revenue O ce procedures 2 and 3) Parties check that land tax payments are up to date. The Land Administration system in Bangladesh separates Records of Ownership and Records on Revenue as such: (a) Land Records O ce for land records, surveys, publication and maintenance of records under the directorate of land records and survey (Ministry of Land). (b) Land O ce or Land Revenue O ce under Ministry of Land. There are 11 administrative o ces in each upajela (sub district). (c) There are 64 districts in Bangladesh but 61 registration districts. 3 hill districts do not have registration centres. In Dhaka, the district land registration o ce has 13 subregistrar o ces under the Ministry of Law. 4 Obtain the non-encumbrance certi cate from the relevant Sub-registry 3-12 days BDT 1,000-1,500 o ce Agency : Sub-registry and Land Revenue O ce The buyer checks the legal status of the land (mortgaged or leased or ownership) at the relevant Sub-registry. From January 2012 both Sub-registry and Land Revenue O ce provide non-encumbrance certi cates. Sometimes a land report is required. A land report gives an idea about the current situation and ownership of the land that may include chain of ownership, land tax, land record, registry status etc. Whereas a non-encumbrance certi cate is used in property transactions as an evidence of free title/ownership. 5 Prepare deed of transfer and pay stamp duty 1 day 3% of property value Agency : Registry O ce and Designated Bank (Stamp duty) A lawyer may prepare the transfer deed, but it can be prepared by the parties themselves. If a lawyer does it, the fees will be around BDT 6,000. The deed must be prepared in stamped paper that will cost 3% of the property value to get it (stamp duty). 6 Pay capital gains tax, registration fee, VAT and other taxes at a 1 day Local government designated bank tax (1%) + Agency : Designated Bank registration fee (2%) of property value Registration fee = 2% Local Government Tax = 1% The 2% registration fee is payable to the Bank in favor of the sub-registry o ce and the receipt is to be presented at the moment of applying for registration. Also, Capital Gains Tax = 2% (Not applicable in rural areas for agriculture. Applicable to land above 100 000 Takas, irrespective of when the transfer was made) and VAT = 1.5% (Applicable only for municipal corporation area payable by private housing and at developers and commercial businesses) have to be paid at this stage. Page 49   The deed must be prepared in stamped paper that will cost 3% of the Doing property Business value it (stamp duty). to get Bangladesh 2018 6 Pay capital gains tax, registration fee, VAT and other taxes at a 1 day Local government designated bank tax (1%) + Agency : Designated Bank registration fee (2%) of property value Registration fee = 2% Local Government Tax = 1% The 2% registration fee is payable to the Bank in favor of the sub-registry o ce and the receipt is to be presented at the moment of applying for registration. Also, Capital Gains Tax = 2% (Not applicable in rural areas for agriculture. Applicable to land above 100 000 Takas, irrespective of when the transfer was made) and VAT = 1.5% (Applicable only for municipal corporation area payable by private housing and at developers and commercial businesses) have to be paid at this stage. 7 Apply for registration at the relevant Sub-registry 180 days Already paid in Agency : Municipal Deed Registry O ce (simultaneous with Procedure 6 Procedure 8) The buyer applies for registration at the Municipal Deed Registry O ce, presenting the receipts of payment for the registration fees obtained in Procedure 6. A certi ed registration document is obtained within a week for the buyer’s record. The original sale deed/certi cate requires about 6 months to be obtained. 8 Register the change in ownership at the Land Revenue O ce 45 - 60 days BDT 5,000 Agency : Land Revenue O ce (simultaneous with Procedure 7) The change of ownership must be registered in the Land Revenue O ce. The property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred. Takes place simultaneously with previous procedure. Details – Registering Property in Dhaka – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? Sub-Registry o ce In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an 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: Directorate of Land Records and Survey (DLRS) Page 50   Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Registering Property in Dhaka – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? Sub-Registry o ce In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an 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: Directorate of Land Records and Survey (DLRS) In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 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 No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation 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 Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 made publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Page 51   Link for Doing online access: Business 2018 Bangladesh Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0 —and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c 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 certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 Page 52   transaction? If yes, Doing who is responsible Business for checking the legality of the documents? 2018 Bangladesh Registrar. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Dhaka Joint property worth 50 times gross national income (GNI) per capita and located in the District Judge largest business city, what court would be in charge of the case in the rst instance? Court How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Registering Property - Chittagong Standard Property Transfer Property value BDT 5,634,684.30 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedures (number) 8 6.8 4.6 1.00 (4 Economies) Time (days) 244 111.6 22.3 1.00 (3 Economies) Cost (% of property value) 8.7 6.9 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 4.5 8.0 22.7 29.00 (Singapore) Figure – Registering Property in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 47.08: India (Rank: 154) 45.92: Sri Lanka (Rank: 157) 41.41: Pakistan (Rank: 170) 24.59: Chittagong Page 53   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Bangladesh Registering Property - Chittagong Standard Property Transfer Property value BDT 5,634,684.30 City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Procedures (number) 8 6.8 4.6 1.00 (4 Economies) Time (days) 244 111.6 22.3 1.00 (3 Economies) Cost (% of property value) 8.7 6.9 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 4.5 8.0 22.7 29.00 (Singapore) Figure – Registering Property in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 47.08: India (Rank: 154) 45.92: Sri Lanka (Rank: 157) 41.41: Pakistan (Rank: 170) 24.59: Chittagong Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Chittagong – Procedure, Time and Cost Time Cost 6 200 5 Cost (% of property value) 4 150 Time (days) 3 100 2 50 1 0 0 Page 54   1 *2 *3 4 5 6 7 *8 registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Bangladesh Figure – Registering Property in Chittagong – Procedure, Time and Cost Time Cost 6 200 5 Cost (% of property value) 4 150 Time (days) 3 100 2 50 1 0 0 1 *2 *3 4 5 6 7 *8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Chittagong and comparator economies – Measure of Quality 9 8.2 8.0 8 7.6 7 6 Index score 5 4.5 4 3 2.5 2 1 0 Chittagong India Pakistan Sri Lanka South Asia Details – Registering Property in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the record of rights from the Land O ce (also known as Land 30 days BDT 3,000-6,000 Revenue O ce) (simultaneous with Agency : Land O ce or Land Revenue O ce procedures 2 and 3) Parties check that land tax payments are up to date. The Land Administration system in Bangladesh separates Records of Ownership and Records on Revenue as such: (a) Land Records O ce for land records, surveys, publication and maintenance of records under the directorate of land records and survey (Ministry of Land); Page 55   (b) Land O ce or Land Revenue O ce under Ministry of Land. There are 11 Chittagong India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Registering Property in Chittagong – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Verify the record of rights from the Land O ce (also known as Land 30 days BDT 3,000-6,000 Revenue O ce) (simultaneous with Agency : Land O ce or Land Revenue O ce procedures 2 and 3) Parties check that land tax payments are up to date. The Land Administration system in Bangladesh separates Records of Ownership and Records on Revenue as such: (a) Land Records O ce for land records, surveys, publication and maintenance of records under the directorate of land records and survey (Ministry of Land); (b) Land O ce or Land Revenue O ce under Ministry of Land. There are 11 administrative o ces in each Upajela (sub district); and (c) There are 64 districts in Bangladesh but 61 registration districts. Three hill districts do not have registration centers. 2 Conduct BS Mutation on property 30 days BDT 15000 Agency : Assistant Commissioner of Lands (Tahsil) (simultaneous with procedures 1 and Since the last survey on Chittagong was done, transfers of property titles 3) created before then must be converted (mutated) to the new survey. This is done by the Assistant Commissioner of Lands (Tahsil) and Speci c Tahsil O ce, after an application is submitted to the former to proceed with the mutation. The Assistant Commissioner forwards the same to the Tahsil O ce, who is responsible for conducting the relevant survey and providing a report to Assistant Commissioner of Land. Upon receiving the report, the Assistant Commissioner of Land renders the mutation certi cate. The inspection is noted in Procedure 3. From January, 1 2012 all properties automatically come under City Survey Khatian. 3 Obtain inspection for BS Mutation 30 days BDT 15000 Agency : Assistant Commissioner of Lands (Tahsil) (simultaneous with procedures 1 and The permission is only mandatory when the property is under the control of 2) the Ministry of Works (National Housing Authority). Although the permission is usually always granted, uno cial payments are still paid in order to expedite the process and guarantee approval, which amount to BDT 20,000. The buyer also checks that the property is up to date with payments to the City Corporation Revenue Department, gas utility service, electricity utility service, and the water utility service to make sure that there is no outstanding dues payable so that the those liabilities do not transfer to him. Each of these checks will cost around BDT 625. These are standard steps customary in Bangladesh and not mandatory for registration. 4 Obtain the non-encumbrance certi cate from the relevant Sub-registry 30 days BDT 2500 o ce Page 56   Agency : Sub-registry and Land Revenue O ce customary in Bangladesh and not mandatory for registration. Doing Business 2018 Bangladesh 4 Obtain the non-encumbrance certi cate from the relevant Sub-registry 30 days BDT 2500 o ce Agency : Sub-registry and Land Revenue O ce The buyer checks the legal status of the land (mortgaged or leased or ownership) at the relevant Sub-registry. From January 2012 both Sub-registry and Land Revenue O ce provide non-encumbrance certi cates. Sometimes land report is required. A land report gives an idea about the current situation and ownership of the land that may include chain of ownership, land tax, land record, registry status etc. Whereas a non-encumbrance certi cate is used in property transactions as an evidence of free title/ownership. 5 Prepare deed of transfer and pay stamp duty 1 day 3% of property value Agency : Registry O ce and Designated Bank (Stamp duty) A lawyer may prepare the transfer deed, but it can be prepared by the parties themselves. If a lawyer does it, the fees will be around BDT 6,000. The deed must be prepared in stamped paper that will cost 3% of the property value to get it (stamp duty). 6 Pay capital gains tax, registration fee, VAT and other taxes at a 1 day Municipal tax (3%) + designated bank registration fee (2%) Agency : Designated Bank of property value Registration fee = 2% Local Government Tax = 3% The 2% registration fee is payable to the Bank in favor of the sub-registry o ce and the receipt is to be presented at the moment of applying for registration. Also, Capital Gains Tax = 2% (Not applicable in rural areas for agriculture. Applicable to land above 100 000 Takas, irrespective of when the transfer was made) and VAT = 1.5% (Applicable only for municipal corporation area payable by private housing and at developers and commercial businesses) have to be paid at this stage. 7 Apply for registration at the relevant Sub-registry 180 days Already paid in Agency : Municipal Deed Registry O ce (simultaneous with Procedure 6 procedure 8) The buyer applies for registration at the Municipal Deed Registry O ce, presenting the receipts of payment for the registration fees obtained in Procedure 6. A certi ed registration document is obtained within a week for the buyer’s record. The original sale deed/certi cate requires about 6 months to be obtained. 8 Register the change in ownership at the Land Revenue O ce 60-90 days BDT 5,000 Agency : Land Revenue O ce (simultaneous with procedure 7) The change of ownership must be registered in the Land Revenue O ce. The property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred. Takes place simultaneously with previous procedure. Page 57   property is recorded under the name of the new owner, who is responsible for paying the land taxes from the day it is transferred. Doing Business 2018 Bangladesh Takes place simultaneously with previous procedure. Details – Registering Property in Chittagong – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? O ce of the Sub- Registrar of Chittagong In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an 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: Directorate of Land Records and Survey (DLRS) of Chittagong In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 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 No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation 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 Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 made publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Page 58   Takes place simultaneously with previous procedure. Doing Business 2018 Bangladesh Details – Registering Property in Chittagong – Measure of Quality Answer Score Quality of the land administration index (0-30) 4.5 Reliability of infrastructure index (0-8) 0.0 What is the institution in charge of immovable property registration? O ce of the Sub- Registrar of Chittagong In what format are the majority of title or deed records kept in the largest business city Paper 0.0 —in a paper format or in a computerized format (scanned or fully digital)? Is there an 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: Directorate of Land Records and Survey (DLRS) of Chittagong In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 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 No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation 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 Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, in person 0.0 made publicly available–and if so, how? Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, in person 0.0 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Page 59   legally binding document that proves property ownership within a speci c time frame– and if Doing so, how does Business it communicate 2018 the service standard? Bangladesh Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0 —and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a Yes, in person 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 3.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c 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 certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar. Page 60   property transaction (e.g., checking the compliance of contracts with requirements of the law)? Doing Business 2018 Bangladesh If yes, who is responsible for checking the legality of the documents? Registrar. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Chittagong Joint property worth 50 times gross national income (GNI) per capita and located in the District Judge largest business city, what court would be in charge of the case in the rst instance? Court How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. 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 Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. Page 61   - ABC has its headquarters and only base of operations in the economy’s Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Bangladesh Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. 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 Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - 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. Getting Credit - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Strength of legal rights index (0-12) 5 5.3 6.0 12.00 (4 Economies) Page 62   possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Bangladesh Getting Credit - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Strength of legal rights index (0-12) 5 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.9 3.8 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 14.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: India (Rank: 29) 45.00: Pakistan (Rank: 105) 40.00: Sri Lanka (Rank: 122) 25.00: Dhaka Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Dhaka and comparator economies 9 8 8 7 6 Index score 5 5.3 5 4 3 2 2 2 1 0 Dhaka India Pakistan Sri Lanka South Asia Details – Legal Rights in Dhaka Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Page 63   Dhaka India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Legal Rights in Dhaka Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents 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 Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; 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 uni ed geographically No and by asset type, with an 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 No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (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 No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or 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 Yes allow the secured creditor to sell 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 Dhaka and comparator economies 8 7 7 6 6 Index score 4.0 4 2 0 0 Dhaka India Pakistan Sri Lanka South Asia Details – Credit Information in Dhaka Page 64   0 0 Dhaka Doing Business 2018 Bangladesh India Pakistan Sri Lanka South Asia Details – Credit Information in Dhaka Credit Credit Depth of credit information index (0-8) bureau 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 financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 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 credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, No No 0 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 banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 0 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 0 589,531 Number of firms 0 328,270 Total 0 917,801 Percentage of adult population 0.0 0.9 Getting Credit - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Strength of legal rights index (0-12) 5 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.9 3.8 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 14.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) Page 65   Percentage of adult population 0.0 0.9 Doing Business 2018 Bangladesh Getting Credit - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Strength of legal rights index (0-12) 5 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 4.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.9 3.8 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 14.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: India (Rank: 29) 45.00: Pakistan (Rank: 105) 40.00: Sri Lanka (Rank: 122) 25.00: Chittagong Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Chittagong and comparator economies 9 8 8 7 6 Index score 5 5.3 5 4 3 2 2 2 1 0 Chittagong India Pakistan Sri Lanka South Asia Details – Legal Rights in Chittagong Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No Page 66   enforcement of functional equivalents to security interests in movable assets exist in the economy? Chittagong India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Legal Rights in Chittagong Strength of legal rights index (0-12) 5 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents 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 Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; 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 uni ed geographically No and by asset type, with an 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 No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (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 No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or 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 Yes allow the secured creditor to sell 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 Chittagong and comparator economies 8 7 7 6 6 Index score 4.0 4 2 0 0 Chittagong India Pakistan Sri Lanka South Asia Details – Credit Information in Chittagong Page 67   0 0 Chittagong Doing Business 2018 Bangladesh India Pakistan Sri Lanka South Asia Details – Credit Information in Chittagong Credit Credit Depth of credit information index (0-8) bureau 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 financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 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 credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, No No 0 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 banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 0 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 0 589,531 Number of firms 0 328,270 Total 0 917,801 Percentage of adult population 0.0 0.9 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 June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 68   transactions; Available legal remedies (damages, Percentage of adult population 0.0 0.9 Doing Business 2018 Bangladesh 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 June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Protecting Minority Investors - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand) Page 69   10) and the other parties that approved the transaction. Doing Business 2018 Bangladesh Protecting Minority Investors - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 5.3 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: India (Rank: 4) 71.67: Pakistan (Rank: 20) 63.33: Sri Lanka (Rank: 43) 56.67: Dhaka Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Dhaka and comparator economies – Measure of Quality Dhaka 6 7 6 4 5 6 India 8 7 8 8 10 7 Pakistan 7 7 6 9 8 6 Sri Lanka 6 5 8 6 6 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 South Asia 6.1 5.9 5.6 5.8 6.5 6.4 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Dhaka – Measure of Quality Page 70   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Bangladesh Details – Protecting Minority Investors in Dhaka – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 6.3 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 7 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 71   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Bangladesh Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0 of the court Extent of shareholder governance index (0-10) 5 Extent of shareholder rights index (0-10) 5 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 Yes 1.0 shareholders? 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 Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Page 72   Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Bangladesh Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? 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? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 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 No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Protecting Minority Investors - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 5.3 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) Page 73   0 100 Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Bangladesh Protecting Minority Investors - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Extent of conflict of interest regulation index (0- 6.3 5.5 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 5.3 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.00: India (Rank: 4) 71.67: Pakistan (Rank: 20) 63.33: Sri Lanka (Rank: 43) 56.67: Chittagong Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Chittagong and comparator economies – Measure of Quality Chittagong 6 7 6 4 5 6 India 8 7 8 8 10 7 Pakistan 7 7 6 9 8 6 Sri Lanka 6 5 8 6 6 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 South Asia 6.1 5.9 5.6 5.8 6.5 6.4 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Page 74   con ict of interest regulation index and the extent of shareholder governance index. Doing Business 2018 Bangladesh Figure – Protecting Minority Investors in Chittagong and comparator economies – Measure of Quality Chittagong 6 7 6 4 5 6 India 8 7 8 8 10 7 Pakistan 7 7 6 9 8 6 Sri Lanka 6 5 8 6 6 7 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 South Asia 6.1 5.9 5.6 5.8 6.5 6.4 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Chittagong – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 6.3 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 7 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 Page 75   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Bangladesh Details – Protecting Minority Investors in Chittagong – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 6.3 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 7 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if unfair or 2.0 to Buyer (0-2) prejudicial Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 76   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Bangladesh Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) No 0.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) At the discretion 0.0 of the court Extent of shareholder governance index (0-10) 5 Extent of shareholder rights index (0-10) 5 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 Yes 1.0 shareholders? 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 Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Page 77   Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Bangladesh Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? 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? No 0.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 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 No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? 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 measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 78   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Bangladesh 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 measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) 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 per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Paying Taxes - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Page 79   return, but within the tax assessment period. Doing Business 2018 Bangladesh Paying Taxes - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Payments (number per year) 33 28.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 435 277.3 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 33.4 43.0 40.1 18.47% (32 Economies) Postfiling index (0-100) 44.38 41.05 83.45 99.38 (Estonia) Figure – Paying Taxes in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.06: India (Rank: 119) 56.13: Dhaka 53.70: Sri Lanka (Rank: 158) 46.43: Pakistan (Rank: 172) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax 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 rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Dhaka and comparator economies – Measure of Quality 60 49.31 49.31 50 44.38 41.05 40 Index score 30 20 10.49 10 0 Dhaka India Pakistan Sri Lanka South Asia Details – Paying Taxes in Dhaka Tax or Total tax and Page 80   mandatory Payments Notes on Time contribution rate Notes on Doing Business 2018 Bangladesh Figure – Paying Taxes in Dhaka and comparator economies – Measure of Quality 60 49.31 49.31 50 44.38 41.05 40 Index score 30 20 10.49 10 0 Dhaka India Pakistan Sri Lanka South Asia Details – Paying Taxes in Dhaka Tax or Total tax and mandatory Payments Notes on Time contribution rate Notes on contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) TTR Corporate 5 144 35% taxable profit 30.37 income tax Municipal tax 1 7% rental value 2.25 (property tax) Capital gains 0 jointly 15% capital gains 0.76 tax Tax on 0 withheld 10% interest income 0.26 included interest in other taxes Value added 12 171 Variable rate (up to 15%) value added 0.00 not tax (VAT) included Vehicle tax 1 fixed fee 0.00 small depending on amount type of vehicle Personal 12 120 varies gross salaries 0.00 withheld income tax Stamp duty 1 varies type of contract 0.00 small on contracts amount Land 1 Fixed fee depending on area of land 0.00 small development area of land and locality amount tax (khajna) where situated Totals 33 435 33.4 Details – Paying Taxes in Dhaka – Tax by Type Taxes by type Answer Page 81   Profit tax (% of profit) 31.1 Totals 33 435 33.4 Doing Business 2018 Bangladesh Details – Paying Taxes in Dhaka – Tax by Type Taxes by type Answer Profit tax (% of profit) 31.1 Labor tax and contributions (% of profit) 0.0 Other taxes (% of profit) 2.3 Details – Paying Taxes in Dhaka – Measure of Quality Answer Score Post ling index (0-100) 44.38 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? No Time to comply with VAT refund (hours) 58.0 0 Time to obtain a VAT refund (weeks) 17.9 71.66 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 audit (hours) 37.0 34.86 Time to complete a corporate income tax audit (weeks) 9.3 70.98 Notes: Names of taxes have been standardized. For instance income tax, pro t 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 post ling 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 audit and time to complete a corporate income tax audit. N/A = Not applicable. Paying Taxes - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Payments (number per year) 33 28.5 10.9 3 (Hong Kong SAR, Page 82   China) a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Bangladesh Paying Taxes - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Payments (number per year) 33 28.5 10.9 3 (Hong Kong SAR, China) Time (hours per year) 435 277.3 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 33.4 43.0 40.1 18.47% (32 Economies) Postfiling index (0-100) 44.31 41.05 83.45 99.38 (Estonia) Figure – Paying Taxes in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.06: India (Rank: 119) 56.11: Chittagong 53.70: Sri Lanka (Rank: 158) 46.43: Pakistan (Rank: 172) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax 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 rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Chittagong and comparator economies – Measure of Quality 60 49.31 49.31 50 44.31 41.05 40 Index score 30 20 10.49 10 0 Chittagong India Pakistan Sri Lanka South Asia Details – Paying Taxes in Chittagong Page 83   Doing Business 2018 Bangladesh Figure – Paying Taxes in Chittagong and comparator economies – Measure of Quality 60 49.31 49.31 50 44.31 41.05 40 Index score 30 20 10.49 10 0 Chittagong India Pakistan Sri Lanka South Asia Details – Paying Taxes in Chittagong Tax or Total tax and mandatory Payments Notes on Time contribution rate Notes on contribution (number) Payments (hours) Statutory tax rate Tax base (% of profit) TTR Corporate 5 144 35% taxable profit 30.37 income tax Municipal tax 1 7% rental value 2.25 (property tax) Capital gains 0 jointly 15% capital gains 0.76 tax Tax on 0 withheld 10% interest income 0.26 included interest in other taxes Value added 12 171 Variable rate (up to 15%) value added 0.00 not tax (VAT) included Vehicle tax 1 fixed fee 0.00 small depending on amount type of vehicle Personal 12 120 varies gross salaries 0.00 withheld income tax Stamp duty 1 varies type of contract 0.00 small on contracts amount Land 1 Fixed fee depending on area of land 0.00 small development area of land and locality amount tax (khajna) where situated Totals 33 435 33.4 Details – Paying Taxes in Chittagong – Tax by Type Taxes by type Answer Page 84   Profit tax (% of profit) 31.1 Totals 33 435 33.4 Doing Business 2018 Bangladesh Details – Paying Taxes in Chittagong – Tax by Type Taxes by type Answer Profit tax (% of profit) 31.1 Labor tax and contributions (% of profit) 0.0 Other taxes (% of profit) 2.3 Details – Paying Taxes in Chittagong – Measure of Quality Answer Score Post ling index (0-100) 44.31 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? No Time to comply with VAT refund (hours) 58.0 0 Time to obtain a VAT refund (weeks) 18.0 71.38 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 audit (hours) 37.0 34.86 Time to complete a corporate income tax audit (weeks) 9.3 70.98 Notes: Names of taxes have been standardized. For instance income tax, pro t 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 post ling 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 audit and time to complete a corporate income tax audit. N/A = Not applicable. 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 tari s) 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 June 2017. See the methodology for more information. Page 85   Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Bangladesh 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 tari s) 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 June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. 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 Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and 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, airport 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 86   of agriculture or industry, national security agencies and any other Doing Business 2018 Bangladesh government authorities. Trading across Borders - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Time to export: Border compliance (hours) 100 59.4 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 408 369.8 149.9 0.00 (19 Economies) Time to export: Documentary compliance 147 77.0 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 225 179.5 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 183 113.8 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 1294 638.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 144 104.7 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 370 341.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.29: Sri Lanka (Rank: 86) 58.56: India (Rank: 146) 41.94: Pakistan (Rank: 171) 34.86: Dhaka Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Dhaka – Time and Cost Time Cost 200 183 1294 1400 1200 147 144 150 1000 Time (hours) Cost (USD) 100 800 100 600 408 370 400 50 225 Page 87   200 Doing Business 2018 Bangladesh Figure – Trading across Borders in Dhaka – Time and Cost Time Cost 200 183 1294 1400 1200 147 144 150 1000 Time (hours) Cost (USD) 100 800 100 600 408 370 400 50 225 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Dhaka Characteristics Export Import Product HS 61 : Articles of apparel and clothing accessories, HS 8708: Parts and accessories of knitted or crocheted motor vehicles Trade partner Germany India Border Chittagong port Chittagong port Distance (km) 263 263 Domestic transport time 24 24 (hours) Domestic transport cost 231 231 (USD) Details – Trading across Borders in Dhaka – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 151.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 256.3 Import: Clearance and inspections required by customs authorities 153.2 515.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 778.1 Details – Trading across Borders in Dhaka – Trade Documents Export Import Page 88   (USD) Doing Business 2018 Bangladesh Details – Trading across Borders in Dhaka – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 151.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 256.3 Import: Clearance and inspections required by customs authorities 153.2 515.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 778.1 Details – Trading across Borders in Dhaka – Trade Documents Export Import Bill of Lading Bill of lading Commercial Invoice Cargo release order (Gate Pass) Customs Export Declaration Certificate of origin Packing List Commercial invoice Certificate of origin Customs import declaration Terminal Handling Receipts Packing list Technical standards certificate Technical standard/Cleanliness certificate Cargo release order Terminal handling receipts Customs Transit Document Letter of credit Foreign exchange authorization SOLAS certificate Pre shipment inspection - clean report of findings Utilized Declaration for garments Letter of Credit SOLAS certificate Trading across Borders - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Time to export: Border compliance (hours) 100 59.4 12.7 0 (17 Economies) Page 89   Cost to export: Border compliance (USD) 408 369.8 149.9 0.00 (19 Economies) SOLAS certificate Doing Business 2018 Bangladesh Trading across Borders - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Time to export: Border compliance (hours) 100 59.4 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 408 369.8 149.9 0.00 (19 Economies) Time to export: Documentary compliance 147 77.0 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 225 179.5 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 183 113.8 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 1294 638.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 144 104.7 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 370 341.6 25.6 0.00 (30 Economies) Figure – Trading across Borders in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.29: Sri Lanka (Rank: 86) 58.56: India (Rank: 146) 41.94: Pakistan (Rank: 171) 34.86: Chittagong Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Chittagong – Time and Cost Time Cost 200 183 1294 1400 1200 147 144 150 1000 Time (hours) Cost (USD) 100 800 100 600 408 370 400 50 225 Page 90   200 Doing Business 2018 Bangladesh Figure – Trading across Borders in Chittagong – Time and Cost Time Cost 200 183 1294 1400 1200 147 144 150 1000 Time (hours) Cost (USD) 100 800 100 600 408 370 400 50 225 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Chittagong Characteristics Export Import Product HS 61 : Articles of apparel and clothing accessories, HS 8708: Parts and accessories of knitted or crocheted motor vehicles Trade partner Germany India Border Chittagong port Chittagong port Distance (km) 20 20 Domestic transport time 6 6 (hours) Domestic transport cost 77 77 (USD) Details – Trading across Borders in Chittagong – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 151.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 256.3 Import: Clearance and inspections required by customs authorities 153.2 515.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 778.1 Details – Trading across Borders in Chittagong – Trade Documents Export Import Page 91   (USD) Doing Business 2018 Bangladesh Details – Trading across Borders in Chittagong – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 151.9 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 72.0 256.3 Import: Clearance and inspections required by customs authorities 153.2 515.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 778.1 Details – Trading across Borders in Chittagong – Trade Documents Export Import Bill of lading Bill of lading Commercial invoice Cargo release order (Gate Pass) Customs Export Declaration Certificate of origin Packing List Commercial invoice Certificate of origin Customs import declaration Terminal Handling Receipts Packing list Technical standards certificate Technical standard/Cleanliness certificate Cargo release order Terminal handling receipts Customs Transit Document Letter of credit Foreign exchange authorization SOLAS certificate Pre shipment inspection - clean report of findings Utilized Declaration for Garments Letter of Credit SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. Page 92   SOLAS certificate Doing Business 2018 Bangladesh Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Enforcing Contracts - Dhaka Standardized Case Claim value BDT 421,874.00 Court name Joint District Judge City Covered Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Time (days) 1442 1101.6 577.8 164.00 (Singapore) Cost (% of claim value) 66.8 29.6 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 7.5 7.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 Page 93   43.49: Pakistan (Rank: 156) of judicial processes Quality Business Doing index (0-18) 2018 Bangladesh 7.5 7.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 43.49: Pakistan (Rank: 156) 40.76: India (Rank: 164) 39.31: Sri Lanka (Rank: 165) 22.21: Dhaka Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Dhaka – Time and Cost Time Cost 1600 80 1442 1445 1400 66.8 1318 70 Cost (% of claim value) 1200 1071.2 1101.6 60 Time (days) 1000 50 800 40 31.0 577.8 29.6 600 22.8 30 21.5 20.5 400 20 200 10 0 0 Dhaka India OECD high income Pakistan South Asia Sri Lanka Figure – Enforcing Contracts in Dhaka and comparator economies – Measure of Quality Page 94   0 0 Dhaka India OECD high income Pakistan South Asia Sri Lanka Doing Business 2018 Bangladesh Figure – Enforcing Contracts in Dhaka and comparator economies – Measure of Quality Dhaka 3 1 0.5 3 India 2.3 1.5 2 4.5 Pakistan 2 1.2 0.5 2 Sri Lanka 2.5 0 0.5 4.5 OECD high income 2.5 2.9 2 3.6 South Asia 2.3 1.1 0.8 3.2 0 2 4 6 8 10 12 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Dhaka Indicator Time (days) 1442 Filing and service 30 Trial and judgment 1047 Enforcement of judgment 365 Cost (% of claim value) 66.8 Attorney fees 40 Court fees 8.3 Enforcement fees 18.5 Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 1.0 Court automation (0-4) 0.5 Alternative dispute resolution (0-3) 3.0 Details – Enforcing Contracts in Dhaka – Measure of Quality Page 95   Alternative dispute resolution (0-3) 3.0 Doing Business 2018 Bangladesh Details – Enforcing Contracts in Dhaka – Measure of Quality Answer Score Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 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) 1.0 1. Time standards 0.5 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? No 2. Adjournments 0.5 2.a. Does the law regulate the maximum number of adjournments that can be Yes granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) 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 No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.5 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 96   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Bangladesh 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 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 No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 3.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or 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 No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Enforcing Contracts - Chittagong Standardized Case Claim value BDT 421,874.00 Court name Joint District Judge City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Time (days) 1442 1101.6 577.8 164.00 (Singapore) Cost (% of claim value) 66.8 29.6 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 7.5 7.0 11.0 15.50 (Australia) Page 97   if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Bangladesh Enforcing Contracts - Chittagong Standardized Case Claim value BDT 421,874.00 Court name Joint District Judge City Covered Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Time (days) 1442 1101.6 577.8 164.00 (Singapore) Cost (% of claim value) 66.8 29.6 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 7.5 7.0 11.0 15.50 (Australia) Figure – Enforcing Contracts in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 43.49: Pakistan (Rank: 156) 40.76: India (Rank: 164) 39.31: Sri Lanka (Rank: 165) 22.21: Chittagong Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Chittagong – Time and Cost Time Cost 1600 80 1442 1445 1400 66.8 1318 70 Cost (% of claim value) 1200 1071.2 1101.6 60 Time (days) 1000 50 800 40 31.0 577.8 29.6 600 22.8 30 21.5 20.5 400 20 200 10 0 0 Chittagong India OECD high income Pakistan South Asia Sri Lanka Page 98   Figure – Enforcing Contracts in Chittagong and comparator economies – Measure of Quality 0 0 Chittagong India OECD high income Pakistan South Asia Sri Lanka Doing Business 2018 Bangladesh Figure – Enforcing Contracts in Chittagong and comparator economies – Measure of Quality Chittagong 3 1 0.5 3 India 2.3 1.5 2 4.5 Pakistan 2 1.2 0.5 2 Sri Lanka 2.5 0 0.5 4.5 OECD high income 2.5 2.9 2 3.6 South Asia 2.3 1.1 0.8 3.2 0 2 4 6 8 10 12 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Chittagong Indicator Time (days) 1442 Filing and service 30 Trial and judgment 1047 Enforcement of judgment 365 Cost (% of claim value) 66.8 Attorney fees 40 Court fees 8.3 Enforcement fees 18.5 Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 3.0 Case management (0-6) 1.0 Court automation (0-4) 0.5 Alternative dispute resolution (0-3) 3.0 Details – Enforcing Contracts in Chittagong – Measure of Quality Page 99   Alternative dispute resolution (0-3) 3.0 Doing Business 2018 Bangladesh Details – Enforcing Contracts in Chittagong – Measure of Quality Answer Score Quality of judicial processes index (0-18) 7.5 Court structure and proceedings (-1-5) 3.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 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) 1.0 1. Time standards 0.5 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? No 2. Adjournments 0.5 2.a. Does the law regulate the maximum number of adjournments that can be Yes granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) 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 No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.5 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 100   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Bangladesh 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 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 No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 3.0 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or 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 No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.5 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., Yes if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? 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 for the project was completed in June 2017. 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 Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 101   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Bangladesh 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 for the project was completed in June 2017. 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 Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. 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) Resolving Insolvency - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Recovery rate (cents on the dollar) 28.3 32.7 71.2 93.1 (Norway) Page 102   Creditor participation index (0-4) Doing Business 2018 Bangladesh Resolving Insolvency - Dhaka OECD high Indicator Dhaka South Asia income Overall Best Performer Recovery rate (cents on the dollar) 28.3 32.7 71.2 93.1 (Norway) Time (years) 4.0 2.6 1.7 0.4 (Ireland) Cost (% of estate) 8.0 9.9 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 4.0 4.9 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 45.83: Pakistan (Rank: 82) 44.99: Sri Lanka (Rank: 88) 40.75: India (Rank: 103) 27.71: Dhaka Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Dhaka – Time and Cost Time Cost 4.5 4.3 12 4.0 4 9.9 10.0 9.0 9.1 10 3.5 8.0 Cost (% of estate) 3 8 Time (years) 2.6 2.6 2.5 6 2 1.7 1.7 4.0 1.5 4 1 2 0.5 0 0 Dhaka India OECD high income Pakistan South Asia Sri Lanka Figure – Resolving Insolvency in Dhaka and comparator economies – Measure of Quality Page 103   Dhaka 2 2 0 0 0 Dhaka India OECD high income Pakistan South Asia Sri Lanka Doing Business 2018 Bangladesh Figure – Resolving Insolvency in Dhaka and comparator economies – Measure of Quality Dhaka 2 2 0 India 4.5 2 1 1 Pakistan 3 2 2 0 Sri Lanka 3 2.5 1 0.5 OECD high income 5.4 2.8 2.3 1.9 South Asia 2.6 2 0.9 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Dhaka and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 50 44.5 42.9 45 40 35 32.7 28.3 30 26.4 25 20 15 10 5 0 Dhaka India Pakistan Sri Lanka South Asia Details – Resolving Insolvency in Dhaka Indicator Answer Explanation Proceeding foreclosure After 90 days of automatic stay, the Bizbank would initiate foreclosure through Artha Rin Adalat Bankruptcy Court which is established under the Artha Rin Adalat Act 2003 for banks and non-banking financial institutions (NBFIs). Artha Rin Adalat Bankruptcy Court would then review the case and makes decision on Mirages's application. Once a decree has been passed against the entity, the bank files for execution of the decree and the Court conducts a piecemeal sale of Mirage's assets in a public auction. Outcome piecemeal sale No, the hotel will stop operating and Mirage assets will be sold piecemeal in a public auction conducted by the Artha Rin Courts after granting the order on the BizBank's foreclosure application. Time (in years) 4.0 A foreclosure procedure will approximately take 4 years in total. BizBank would initiate Page 104   foreclosure after the 90 days automatic stay, and after filing the application to the Artha Rin Dhaka India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Resolving Insolvency in Dhaka Indicator Answer Explanation Proceeding foreclosure After 90 days of automatic stay, the Bizbank would initiate foreclosure through Artha Rin Adalat Bankruptcy Court which is established under the Artha Rin Adalat Act 2003 for banks and non-banking financial institutions (NBFIs). Artha Rin Adalat Bankruptcy Court would then review the case and makes decision on Mirages's application. Once a decree has been passed against the entity, the bank files for execution of the decree and the Court conducts a piecemeal sale of Mirage's assets in a public auction. Outcome piecemeal sale No, the hotel will stop operating and Mirage assets will be sold piecemeal in a public auction conducted by the Artha Rin Courts after granting the order on the BizBank's foreclosure application. Time (in years) 4.0 A foreclosure procedure will approximately take 4 years in total. BizBank would initiate foreclosure after the 90 days automatic stay, and after filing the application to the Artha Rin Bankruptcy Court, it usually takes another year to get a decree from the Artha Rin Bankruptcy Court (1-2 years). The execution of the decree until BizBank is repaid some or all of the money owed to it from the auction proceeds would take additional 1 to 2 years. Cost (% of 8.0 The costs associated with the case would amount to approximately 8% of the value of the estate) debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (1%), attorney fees (up to 5%), costs of notification and publication (1%), fees of accountants, assessors, inspectors and other professionals (1%), and auctioneer fees (1%). Recovery rate (cents on the 28.3 dollar) Details – Resolving Insolvency in Dhaka – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Page 105   dollar) Doing Business 2018 Bangladesh Details – Resolving Insolvency in Dhaka – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? No 0.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? N/A 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Page 106   Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment Doing Businessof the 2018insolvency representative? Bangladesh Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? 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”. Resolving Insolvency - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Recovery rate (cents on the dollar) 28.3 32.7 71.2 93.1 (Norway) Time (years) 4.0 2.6 1.7 0.4 (Ireland) Cost (% of estate) 8.0 9.9 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 4.0 4.9 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 45.83: Pakistan (Rank: 82) 44.99: Sri Lanka (Rank: 88) 40.75: India (Rank: 103) 27.71: Chittagong Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Chittagong – Time and Cost Time Cost 4.5 4.3 12 4.0 4 9.9 10.0 9.1 10 3.5 9.0 Page 107   8.0 te) the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Bangladesh Resolving Insolvency - Chittagong OECD high Indicator Chittagong South Asia income Overall Best Performer Recovery rate (cents on the dollar) 28.3 32.7 71.2 93.1 (Norway) Time (years) 4.0 2.6 1.7 0.4 (Ireland) Cost (% of estate) 8.0 9.9 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 4.0 4.9 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Bangladesh and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 45.83: Pakistan (Rank: 82) 44.99: Sri Lanka (Rank: 88) 40.75: India (Rank: 103) 27.71: Chittagong Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Chittagong – Time and Cost Time Cost 4.5 4.3 12 4.0 4 9.9 10.0 9.0 9.1 10 3.5 8.0 Cost (% of estate) 3 8 Time (years) 2.6 2.6 2.5 6 2 1.7 1.7 4.0 1.5 4 1 2 0.5 0 0 Chittagong India OECD high income Pakistan South Asia Sri Lanka Figure – Resolving Insolvency in Chittagong and comparator economies – Measure of Quality Page 108   0 0 Chittagong India OECD high income Pakistan South Asia Sri Lanka Doing Business 2018 Bangladesh Figure – Resolving Insolvency in Chittagong and comparator economies – Measure of Quality Chittagong 2 2 0 India 4.5 2 1 1 Pakistan 3 2 2 0 Sri Lanka 3 2.5 1 0.5 OECD high income 5.4 2.8 2.3 1.9 South Asia 2.6 2 0.9 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Chittagong and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 50 44.5 42.9 45 40 35 32.7 28.3 30 26.4 25 20 15 10 5 0 Chittagong India Pakistan Sri Lanka South Asia Details – Resolving Insolvency in Chittagong Indicator Answer Explanation Proceeding foreclosure After 90 days of automatic stay, the Bizbank would initiate foreclosure through Artha Rin Adalat Bankruptcy Court which is established under the Artha Rin Adalat Act 2003 for banks and non-banking financial institutions (NBFIs). Artha Rin Adalat Bankruptcy Court would then review the case and makes decision on Mirages's application. Once a decree has been passed against the entity, the bank files for execution of the decree and the Court conducts a piecemeal sale of Mirage's assets in a public auction. Outcome piecemeal sale No, the hotel will stop operating and Mirage assets will be sold piecemeal in a public auction conducted by the Courts after granting the order on the BizBank's foreclosure application. Time (in years) 4.0 A foreclosure procedure will approximately take 4 years in total. BizBank would initiate foreclosure after the 90 days automatic stay, and after filing the application to the Artha Rin Bankruptcy Court, it usually takes another year to get a decree from the Artha Rin Page 109   Chittagong India Pakistan Sri Lanka South Asia Doing Business 2018 Bangladesh Details – Resolving Insolvency in Chittagong Indicator Answer Explanation Proceeding foreclosure After 90 days of automatic stay, the Bizbank would initiate foreclosure through Artha Rin Adalat Bankruptcy Court which is established under the Artha Rin Adalat Act 2003 for banks and non-banking financial institutions (NBFIs). Artha Rin Adalat Bankruptcy Court would then review the case and makes decision on Mirages's application. Once a decree has been passed against the entity, the bank files for execution of the decree and the Court conducts a piecemeal sale of Mirage's assets in a public auction. Outcome piecemeal sale No, the hotel will stop operating and Mirage assets will be sold piecemeal in a public auction conducted by the Courts after granting the order on the BizBank's foreclosure application. Time (in years) 4.0 A foreclosure procedure will approximately take 4 years in total. BizBank would initiate foreclosure after the 90 days automatic stay, and after filing the application to the Artha Rin Bankruptcy Court, it usually takes another year to get a decree from the Artha Rin Bankruptcy Court (1-2 years). The execution of the decree until BizBank is repaid some or all of the money owed to it from the auction proceeds would take additional 1 to 2 years. Cost (% of 8.0 The costs associated with the case would amount to approximately 8% of the value of the estate) debtor's estate. Cost incurred during the entire insolvency process mainly include court or government agency fees (1%), attorney fees (up to 5%), costs of notification and publication (1%), fees of accountants, assessors, inspectors and other professionals (1%), and auctioneer fees (1%). Recovery rate (cents on the 28.3 dollar) Details – Resolving Insolvency in Chittagong – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 Page 110   dollar) Doing Business 2018 Bangladesh Details – Resolving Insolvency in Chittagong – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 4.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 2.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? No 0.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? N/A 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Page 111   Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment Doing Businessof the 2018insolvency representative? Bangladesh Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? 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”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. 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 due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity Page 112   leave; (iv) whether employees on maternity leave the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Bangladesh Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. 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 due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Labor Market Regulation - Dhaka Details – Labor Market Regulation in Dhaka Answer Page 113   days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Bangladesh Labor Market Regulation - Dhaka Details – Labor Market Regulation in Dhaka Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0 Ratio of minimum wage to value added per worker 0.0 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 5.5 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) 100.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 17.0 Paid annual leave for a worker with 5 years of tenure (working days) 17.0 Paid annual leave for a worker with 10 years of tenure (working days) 17.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 17.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Page 114   Third-party Doing cation if Bangladesh noti 2018 Business 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? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 5.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 25.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 50.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 26.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 112.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Labor Market Regulation - Chittagong Details – Labor Market Regulation in Chittagong Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Page 115   Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0 Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Bangladesh Labor Market Regulation - Chittagong Details – Labor Market Regulation in Chittagong Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 0.0 Ratio of minimum wage to value added per worker 0.0 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 5.5 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) 100.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 17.0 Paid annual leave for a worker with 5 years of tenure (working days) 17.0 Paid annual leave for a worker with 10 years of tenure (working days) 17.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 17.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Page 116   Third-party Doing cation if Bangladesh noti 2018 Business 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? Yes Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 5.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 25.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 50.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 26.7 Job quality Equal remuneration for work of equal value? No Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 112.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Bangladesh In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Bangladesh implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Bangladesh made starting a business more expensive by increasing the cost of business registration at the Registrar of Joint Stock Companies and Firms. This reform applies to both Chittagong and Dhaka. DB2017 VAT Paying Taxes: Bangladesh made paying taxes more complicated for companies by increasing the time it takes to preparePage 117   and corporate income tax returns. This reform applies to both Chittagong and Dhaka. Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Bangladesh Business Reforms in Bangladesh In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Bangladesh implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Bangladesh made starting a business more expensive by increasing the cost of business registration at the Registrar of Joint Stock Companies and Firms. This reform applies to both Chittagong and Dhaka. DB2017 Paying Taxes: Bangladesh made paying taxes more complicated for companies by increasing the time it takes to prepare VAT and corporate income tax returns. This reform applies to both Chittagong and Dhaka. DB2016 Paying Taxes: Bangladesh made paying taxes less costly for companies by reducing the corporate income tax rate. This reform applies to both Chittagong and Dhaka. DB2015 Trading across Borders: Bangladesh made trading across borders easier by introducing a fully automated, computerized customs data management system, ASYCUDA (Automated System for Customs Data) World. This reform applies to both Chittagong and Dhaka. DB2014 Starting a Business: Bangladesh made starting a business easier by automating the registration process and reducing the time required to obtain a trading license and to complete the tax and value added tax registration. DB2013 Getting Electricity: Bangladesh made getting electricity more di cult by requiring all customers to meet 7% of their electricity needs through solar energy, making it necessary to install solar panels. Getting Credit: Bangladesh improved access to credit information by establishing an online platform for sharing such information. DB2012 Getting Electricity: Bangladesh made getting electricity more di cult by imposing a moratorium on new electricity connections from April 2010 to March 2011 because of an electricity supply shortage. This moratorium has led to long delays for customers and has increased the time to obtain an electricity connection. DB2011 Starting a Business: Bangladesh made business start-up easier by eliminating the requirement to buy adhesive stamps and further enhancing the online registration system. Registering Property: Bangladesh reduced the property transfer tax to 6.7% of the property value. DB2010 Starting a Business: Bangladesh made starting a business easier by launching a full- edged online business name clearance and registration process. Paying Taxes: Bangladesh made paying taxes less costly for companies by reducing the corporate income tax rate—though it also increased the capital gains tax rate. Page 118   Trading across Borders: Bangladesh reduced the time required to clear goods by automating customs clearance procedures at registration process. Doing Business Paying 2018 Bangladesh Taxes: Bangladesh made paying taxes less costly for companies by reducing the corporate income tax rate—though it also increased the capital gains tax rate. Trading across Borders: Bangladesh reduced the time required to clear goods by automating customs clearance procedures at the Chittagong port. DB2009 Starting a Business: Bangladesh simpli ed business registration formalities, reducing the time, cost and number of procedures to start a business. Registering Property: Bangladesh speeded up property registration by increasing e ciency at the municipal deed registry o ce. DB2008 Starting a Business: Bangladesh made starting a business more complicated by introducing an additional process for verifying the payment stamp duty Paying Taxes: Bangladesh made paying taxes more costly for companies by increasing the corporate income tax rate. Page 119   the payment stamp duty Paying Doing Taxes: Bangladesh Business made paying taxes more costly for companies by increasing the corporate income tax rate. 2018 Bangladesh Page 120