Doing Business 2018 Colombia Economy Pro le of Colombia 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 Colombia 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 Latin America & DB 2018 Rank Region 190 1 Caribbean Colombia Income Category Upper middle income 59 DB 2018 Distance to Frontier (DTF) Population 48,653,419 0 100 GNI Per Capita (US$) 6,320 69.41 City Covered Bogota DB 2018 Distance to Frontier (DTF) 0 100 69.45: Peru (Rank: 58) 69.41: Colombia (Rank: 59) 58.66: Regional Average (Latin America & Caribbean) 58.11: Argentina (Rank: 117) 57.83: Ecuador (Rank: 118) Page 3   aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Colombia Ease of Doing Business in Latin America & DB 2018 Rank Region 190 1 Caribbean Colombia Income Category Upper middle income 59 DB 2018 Distance to Frontier (DTF) Population 48,653,419 0 100 GNI Per Capita (US$) 6,320 69.41 City Covered Bogota DB 2018 Distance to Frontier (DTF) 0 100 69.45: Peru (Rank: 58) 69.41: Colombia (Rank: 59) 58.66: Regional Average (Latin America & Caribbean) 58.11: Argentina (Rank: 117) 57.83: Ecuador (Rank: 118) 56.45: Brazil (Rank: 125) 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 - Colombia 2 1 16 28 33 60 55 81 81 82 96 Rank 109 125 136 142 163 177 190 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 - Colombia 100 95.00 85.32 80 74.18 73.33 71.34 70.02 68.71 62.83 59.12 60 DTF 40 34.29 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.45 Change:+0.02 Change:0.00 Investors Change:+0.04 Borders Change:0.00 Change:-1.72 Change:+0.01 Permits Change:0.00 Change:0.00 Change:+0.10 Starting a Business Page 4   a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.45 Change:+0.02 Change:0.00 Investors Change:+0.04 Borders Change:0.00 Change:-1.72 Change:+0.01 Permits Change:0.00 Change:0.00 Doing Business 2018 Colombia Change:+0.10 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. Standardized Company Page 5   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 Colombia Standardized Company Legal form Sociedad por Acciones Simplificada (SAS) Paid-in minimum capital requirement COP 0 City Covered Bogota Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Procedure – Men (number) 8 8.4 4.9 1.00 (New Zealand) Time – Men (days) 11 31.7 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 14.0 37.5 3.1 0.00 (United Kingdom) Procedure – Women (number) 8 8.5 4.9 1.00 (New Zealand) Time – Women (days) 11 31.8 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 14.0 37.5 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 2.1 8.7 0.00 (113 Economies) Figure – Starting a Business in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 85.32: Colombia (Rank: 96) 83.39: Peru (Rank: 114) 78.09: Regional Average (Latin America & Caribbean) 75.15: Argentina (Rank: 157) 70.50: Ecuador (Rank: 168) 65.05: Brazil (Rank: 176) 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 Colombia – Procedure, Time and Cost Time Cost 16 10 14 ost (% of income per capita) 12 8 10 Time (days) 6 8 4 6 Page 6   4 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Colombia Figure – Starting a Business in Colombia – Procedure, Time and Cost Time Cost 16 10 14 Cost (% of income per capita) 12 8 10 Time (days) 6 8 4 6 4 2 2 0 0 1 2 3 4 *5 *6 *7 *8 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a 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 Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register with the Registry of Commerce and obtain a taxpayer ID (RUT) 3 days 0.7% of Capital Agency : Chamber of Commerce registration tax + Company A Sociedad por Acciones Simpli cada (SAS) is incorporated by the parties registration fee (COP through a private document (or by attorney, if that is the case) that is 1,006,000) + Business submitted to the Chamber of Commerce. There is no need for a public deed. establishment fee As an exception for this rule, if the procedure supposes the transference of (COP 124,000) + real property, it is mandatory to set up the company by public deed (Notary Public). Document registration fixed fee Since May 2008, applicants can go online to register all of the above at portal (COP 39,000) + www.dian.gov.co. The portal provides access to information and speeds up Registration form the process of starting a business. (COP 5,200) + Certificate of As a result of the process, a Business certi cate (Matricula) and the existence and legal Taxpayer's ID (RUT) from the Tax Authorities are provided. representative (COP 5,200) + Registration fee per book (COP 12,800). 2 Open a bank account for the company 1 day no charge Agency : Bank A bank account is needed to obtain an authorization for invoices from the Tax Authorities (DIAN). To open an account at a branch of a commercial bank, the owner encloses the certi cate of existence and legal representation, the NIT (tax ID), and a photocopy of the certi cate of Page 7   citizenship of the legal representative. Speci c requirements are requested (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Colombia Details – Starting a Business in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Register with the Registry of Commerce and obtain a taxpayer ID (RUT) 3 days 0.7% of Capital Agency : Chamber of Commerce registration tax + Company A Sociedad por Acciones Simpli cada (SAS) is incorporated by the parties registration fee (COP through a private document (or by attorney, if that is the case) that is 1,006,000) + Business submitted to the Chamber of Commerce. There is no need for a public deed. establishment fee As an exception for this rule, if the procedure supposes the transference of (COP 124,000) + real property, it is mandatory to set up the company by public deed (Notary Public). Document registration fixed fee Since May 2008, applicants can go online to register all of the above at portal (COP 39,000) + www.dian.gov.co. The portal provides access to information and speeds up Registration form the process of starting a business. (COP 5,200) + Certificate of As a result of the process, a Business certi cate (Matricula) and the existence and legal Taxpayer's ID (RUT) from the Tax Authorities are provided. representative (COP 5,200) + Registration fee per book (COP 12,800). 2 Open a bank account for the company 1 day no charge Agency : Bank A bank account is needed to obtain an authorization for invoices from the Tax Authorities (DIAN). To open an account at a branch of a commercial bank, the owner encloses the certi cate of existence and legal representation, the NIT (tax ID), and a photocopy of the certi cate of citizenship of the legal representative. Speci c requirements are requested by each bank. 3 Obtain an authorization for invoices and an electronic signature 1 day no charge Agency : Tax Authorities (Dirección de Impuestos y Aduanas Nacionales, DIAN) Business founders must visit DIAN's o ces to obtain an electronic signature for the company's legal representatives, along with an authorization for the company's invoices (Autorización de numeración de facturación). The authorization for invoices can also be requested online, by ling a form with the company information. Information is available at http://www.dian.gov.co/contenidos/otros/Facturacion_Numeracion.html. 4 Register with the Family Compensation Fund (Caja de Compensación 5 days no charge Familiar), the Governmental Learning Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Institute (Instituto Colombiano de Bienestar Familiar, ICBF) Agency : Family Compensation Fund (Caja de Compensación Familiar), the Governmental Learning Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Institute (Instituto Colombiano de Bienestar Familiar, ICBF) Article 3 of Decree 2390 of 2010 created a uni ed form to self-assess and pay social security and payroll contribution. The uni ed form can be submitted electronically but not in person to the Governmental Learning Service (Servicio Nacional de Aprendizaje, or SENA), the Colombian Family Institute Page 8   (Instituto Colombiano de Bienestar Familiar, or ICBF) and the Family the company information. Information is available at Doing http://www.dian.gov.co/contenidos/otros/Facturacion_Numeracion.html. Business 2018 Colombia 4 Register with the Family Compensation Fund (Caja de Compensación 5 days no charge Familiar), the Governmental Learning Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Institute (Instituto Colombiano de Bienestar Familiar, ICBF) Agency : Family Compensation Fund (Caja de Compensación Familiar), the Governmental Learning Service (Servicio Nacional de Aprendizaje, SENA) and the Colombian Family Institute (Instituto Colombiano de Bienestar Familiar, ICBF) Article 3 of Decree 2390 of 2010 created a uni ed form to self-assess and pay social security and payroll contribution. The uni ed form can be submitted electronically but not in person to the Governmental Learning Service (Servicio Nacional de Aprendizaje, or SENA), the Colombian Family Institute (Instituto Colombiano de Bienestar Familiar, or ICBF) and the Family Compensation Fund (Caja de Compensación Familiar). The term for payment of the monthly contributions to the Family Compensation Fund expires within the rst thirteen business days of each month depending on the last number of the Tax Identi cation Number (NIT) of the company. 5 Register the employees for public health coverage 6 days no charge Agency : EPS (simultaneous with previous To register employees for health coverage, the company must submit a form procedure) that indicates the a liation of its employees to the national health system (Plan Obligatorio de Salud, POS), be it through the public entity) or through a private ""promoter of health"" (EPS). Each employee has the right to choose a provider, and the company is obliged to submit the respective form to the provider designated by the employee. Normally, each company must make its submissions to at least one provider. In practice, it can take longer than assumed here, because the providers normally do not accept a liations immediately. The employer is obligated to complete and present di erent forms, enclosing the documents requested by each entity (which may vary), including the administrator of professional risks. 6 Register the employer and employees for pension with Colpensiones or 1 day no charge one of the private funds (simultaneous with Agency : Public fund (Colpensiones) or one of the private funds previous procedure) The company must a liate itself with a pension system. The company must then submit a form that indicates employee a liation to the pension system (a liation either to the public pension fund through Colpensiones or to a private pension and compensation fund). The employer cannot choose the pension fund on behalf of the employee. Each employee has the right to choose between the public or private pension fund, and the company must complete the respective submissions to the pension funds. 7 Register the company with the Labor Risks Administrator 1 day no charge (Administradora de Riesgos Laborales, ARL) (simultaneous with Agency : Labor Risks Administrator (Administradora de Riesgos Laborales, previous ARL) procedure) The company must submit a form listing its a liation and its employees to an administrator of labor risks (ARL), which covers workplace injury and professional illness. The employer chooses the ARL to which it a liates all employees and pays the monthly contributions. Coverage begins 24 hours Page 9   after submitting the form. Before a liating employees, some administrators choose between the public or private pension fund, and the company must Doing complete Businessthe respective 2018 submissions to the pension funds. Colombia 7 Register the company with the Labor Risks Administrator 1 day no charge (Administradora de Riesgos Laborales, ARL) (simultaneous with Agency : Labor Risks Administrator (Administradora de Riesgos Laborales, previous ARL) procedure) The company must submit a form listing its a liation and its employees to an administrator of labor risks (ARL), which covers workplace injury and professional illness. The employer chooses the ARL to which it a liates all employees and pays the monthly contributions. Coverage begins 24 hours after submitting the form. Before a liating employees, some administrators of professional risks request that they attend a short course. 8 Register the employees with a severance fund 1 day no charge Agency : Severance fund (simultaneous with previous The company is required to present a form that indicates employee procedure) a liation to the severance fund. Each employee has the right to freely choose the severance fund. Consequently, the company is obliged to complete the respective submission to the severance fund requested by the employee. Although 1 day is typically required to a liate an employee to a severance fund, the time frame may vary depending on the number of entities chosen by the employees. The employer must deposit the employee’s severance payment annually before February 15th. 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, 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 Page 10   stationery. Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Colombia 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. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Colombia Standardized Warehouse Estimated value of warehouse COP 871,313,132.60 City Covered Bogota Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Procedures (number) 13 15.7 12.5 7.00 (Denmark) Time (days) 132 191.8 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 7.2 3.2 1.6 0.10 (5 Economies) Building quality control index (0-15) 11.0 8.8 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.90: Peru (Rank: 61) 68.71: Colombia (Rank: 81) 66.32: Ecuador (Rank: 105) 63.59: Regional Average (Latin America & Caribbean) 49.83: Brazil (Rank: 170) 49.27: Argentina (Rank: 171) 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 Colombia – Procedure, Time and Cost Time Cost 3.5 120 3 Cost (% of warehouse value) 100 2.5 80 Time (days) 2 60 1.5 40 1 20 0.5 0 0 1 *2 3 4 5 6 7 8 *9 10 11 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 12   component indicators. Doing Business 2018 Colombia Figure – Dealing with Construction Permits in Colombia – Procedure, Time and Cost Time Cost 3.5 120 3 Cost (% of warehouse value) 100 2.5 80 Time (days) 2 60 1.5 40 1 20 0.5 0 0 1 *2 3 4 5 6 7 8 *9 10 11 12 13 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 Colombia and comparator economies – Measure of Quality 14 12.0 12 11.0 11.0 10 9.0 8.8 Index score 8.0 8 6 4 2 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Dealing with Construction Permits in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a soil test report 25 days USD 1,200 Agency : Private Laboratory According to Article H in Chapter 10 of the Reglamento Colombiano de Construccion Sismo Resistente NSR-10 20, it is a requirement to obtain a Soil Test Report. 2 Obtain a topographical plan 6 days USD 700 Agency : Private Engineer Based on Decree 564 of 2006 Article 19, a topographical survey is needed. 3 File for and obtain construction license (licencia de construcción) 42 days COP 12,555,259Page 13   Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Doing Business 2018 Colombia Details – Dealing with Construction Permits in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain a soil test report 25 days USD 1,200 Agency : Private Laboratory According to Article H in Chapter 10 of the Reglamento Colombiano de Construccion Sismo Resistente NSR-10 20, it is a requirement to obtain a Soil Test Report. 2 Obtain a topographical plan 6 days USD 700 Agency : Private Engineer Based on Decree 564 of 2006 Article 19, a topographical survey is needed. 3 File for and obtain construction license (licencia de construcción) 42 days COP 12,555,259 Agency : Curaduría Urbana (Urban Curator) Decree 1600 (2005) Decree 1600 (2005) was revoked and replaced by Decree 564 (2006) and further updated with Decree 1272 (2009). All these regulations were compiled into Decree 1077 of 2015. According to the regulations, any license application must be accompanied by the following documents: • Certi cate of good standing (copy). The certi cate’s date of issuance cannot be older than one month before the date of application. • Unique national format of application for a license (completed). This format was adopted by Resolution 0984 2005 of the Ministry of Environment, Housing, and Territorial Development • When the applicant for a license is a corporation, the existence and representation must be certi ed through the proper legal document. The certi cate’s date of issuance cannot be older than one month before the date of application. • Power of attorney, when needed • Payment receipt for real property tax of the plot for the past 5 years, stating the plot’s alphanumeric nomenclature or its identi cation. Whenever there is a payment agreement, the interested party will have to bring a certi cate of ful llment, issued by the Secretariat of Finance. • Plot location and identi cation plan • List of the adjoining plots (the real property contiguous to the project) • Manifestation whether the project under consideration will be assigned as a social interest dwelling. Such evidence must be recorded within the act that resolves the license. Article 21 of Decree 564 also establishes these additional documents for construction license applications: • Copy of (a) the report of the structural calculations and the structural designs; and (b) the reports of other nonstructural designs and of geotechnical and soil studies that determine the stability of the work, elaborated according to the norms in force at the moment of application, duly signed and labeled by professionals authorized for such purpose. These persons will be legally responsible for the designs and the information in them. • Heliographic and magnetic copy of the architectural project, elaborated according to the architectural and urban planning norms in force at the moment of application, duly signed and labeled by a registered architect who will be legally responsible for the design and the information contained therein. Page 14   • If the application is presented to a di erent authority than the one that • Heliographic and magnetic copy of the architectural project, elaborated according to the architectural and urban planning norms in force at the Business Doing moment 2018 Colombia of application, duly signed and labeled by a registered architect who will be legally responsible for the design and the information contained therein. • If the application is presented to a di erent authority than the one that issued the original license, the interested party will present the previous licenses. Decree 1272 (2009) introduces risk-based categories to determined the time to complete this process. The case study analyzed by Doing Business will be Category III (Medium complex between 500 sq. m. and 2,000 sq. m.) and should be approved by the Curator within 30 business days ( 42 calendar days). However, if it requests additional documentation, such requests suspend the 42-day term until the requesting party presents the additional documents. In addition to the suspension of the terms explained above, the urban curator may extend the original 42-day term -- only if correctly justi ed by written resolution -- up to 90 calendar days. If process has no delays, the "silent is consent" rule will apply and the license will be issued within 42 calendar days. The license cost is calculated by the formula below, de ned in Article 118 of Decree 1469, 2010: E = (Cf*i*m) (Cv*i*j*m) Where Cf = xed charge: 40% of minimum salary Cv = variable charge, according to the use and area: 80% of minimum salary. i = use and socioeconomic strati cation index, 4 (de ned by Article 118). m = town factor, according to market, 0.938 (for Bogotá, according to Article 119). j = Ratio between expenses and square meters, given by the formula assigned in Paragraph 3, Article 118. The variable j is calculated as 3.8/[0.12 (800/Q)], where Q is the total area in sq. m. Applying this formula, the "j" ratio is equal to 5.17. Article 118 of Decree No. 1469 (2010) speci es that licenses may not be granted by the urban curator without the previous payment of any taxes caused by the license procedure. BuildCo must also pay the urban delimitation and occupation tax (impuesto de delineación urbana y ocupación) at the local bank. The fees and taxes must be deposited at a designated account held by the district authorities at any bank in Bogotá. Direct costs are those related to materials, labor, and ancillary elements such as tools and so forth. Indirect costs relate to fees charged by the architects and the engineers and to ancillary payments related to such honoraria. It does not include costs for taxes, land acquisition, project nancing, or utility surcharges. According to Decrees 1272 of 2009 and 1469 of 2010, in cities with more than 500,000 inhabitants, the presentation of documents by a license applicant which contain information available through virtual or remote inquiry is no longer necessary. Urban curators must check by these means the information at the time of ling of the application. This is why the following documents are no longer required to be obtained by the entrepreneur: • Legal representation certi cate (Certi cado de Exsitencia y Representación Legal) • Certi cate of good standing (Certi cado de libertad y tradición) • Proof of municipal tax payment (Paz y salvo de impuesto predial) 4 Pay tax on urban delineation (impuesto de delineación urbana) at the 1 day COP 27,194,911Page 15   bank • Certi cate of good standing (Certi cado de libertad y tradición) Proof of municipal Doing •Business 2018 tax payment (Paz y salvo de impuesto predial) Colombia 4 Pay tax on urban delineation (impuesto de delineación urbana) at the 1 day COP 27,194,911 bank Agency : Commercial Bank This is a one-time payment. The fees and taxes must be deposited at a designated account held by the district authorities at any bank in Bogotá. This tax is payable once the license has been approved, and it is a precondition for the issuance of the approved license. Urban delimitation and occupation tax for the warehouse is calculated at a rate of 2.6% over the minimum building direct completion costs. Among the documents required by Bogotá's tax authority to estimate the tax to be paid by BuildCo. are the approved construction license or its initial lling. Therefore, payment of the urban delineation tax should go after the approval of the construction license. If at the end of the construction the actual costs surpass the estimated ones, BuildCo must pay an additional 3% of the di erence. Minimum building direct completion costs (MBDCC)* - estimated by DANE (National Statistics Department): COP 804,212.00 per sq. m. (only direct costs) x 1300.6 sq. m. = COP 828,482,200.00 x 2.6% = COP 27,194,911.31 * MBDCC in 2009 was COP 637,000.00 but it was updated by DANE in January 2011 to COP 804,212.00 (details in Resolucion 0087 January 31, 2011). 5 Receive random inspection 1 day no charge Agency : Municipality Mandatory inspections during construction are based on Art. 2.2.6.1.4.11 of Decree 1077 of 2015 of the Ministry of Environment, Housing and Territorial Development to describe the details of the procedure, since it is mandatory by law. 6 Request water connection approval from EAAB and receive water 4 days no charge inspection Agency : Empresa de Acueducto y Alcantarillado de Bogotá (EAAB) EAAB undertakes supervision, control, and evaluation of construction according to regulations. It takes place during the whole construction process. The water connection approval from EAAB only happens after the inspection is conducted, which usually takes 3 to 4 business days. From the time the inspection takes place, it takes another 6 days for the approval to be processed. 7 Receive water connection approval from EAAB 6 days COP 1,845,300 Agency : Empresa de Acueducto y Alcantarillado de Bogotá (EAAB) The owner of the plot (or a representative) must request a water connection by providing Bogotá’s public water utility (Empresa de Acueducto y Alcantarillado de Bogotá, EAAB) with copies of the following documents: • Nomenclature certi cate (boletín de nomenclatura) of the plot where the warehouse will be located • Certi cate of free transferability of the plot • Authorization of the plot owner for the installation service request, if the owner is not requesting the service directly • Description of the warehouse purpose (whether commercial or industrial) According to Resolution 1281 from August 2008 the cost is: COP 1,123,520.00 for connection fee, COP 699,120.00 to install the meters and COP 22,660.00 Page 16   for meter veri cation. EAAB has 21 points of service at the di erent service inspection takes place, it takes another 6 days for the approval to be Doing processed. Business 2018 Colombia 7 Receive water connection approval from EAAB 6 days COP 1,845,300 Agency : Empresa de Acueducto y Alcantarillado de Bogotá (EAAB) The owner of the plot (or a representative) must request a water connection by providing Bogotá’s public water utility (Empresa de Acueducto y Alcantarillado de Bogotá, EAAB) with copies of the following documents: • Nomenclature certi cate (boletín de nomenclatura) of the plot where the warehouse will be located • Certi cate of free transferability of the plot • Authorization of the plot owner for the installation service request, if the owner is not requesting the service directly • Description of the warehouse purpose (whether commercial or industrial) According to Resolution 1281 from August 2008 the cost is: COP 1,123,520.00 for connection fee, COP 699,120.00 to install the meters and COP 22,660.00 for meter veri cation. EAAB has 21 points of service at the di erent service centers that the local government has established throughout Bogotá. 8 Obtain water connection from EAAB 10 days no charge Agency : Empresa de Acueducto y Alcantarillado de Bogotá (EAAB) 9 Receive inspection from authorized contractor 1 day no charge Agency : Codensa S.A. ESP No later than 20 days after requesting the connection, Codensa must send a service agent that will review the construction. 10 Request and awaits nal inspection from the Mayor’s O ce 25 days no charge Agency : Mayor’s O ce (Alcaldía Distrital) Through its agents, the Mayor’s O ce (Alcaldía Distrital) is the entity in charge of monitoring and controlling construction projects in Bogotá. The inspections are carried out to con rm that the construction has been completed according to the construction license. 11 Obtain occupancy permit 10 days no charge Agency : Mayor’s O ce (Alcaldía Distrital) According to Decree 1469 of 2010, (Art. 2.2.6.1.2.3.6, item 5 y Art. 2.2.6.1.4.1 of Decree 1077 of 2015 of the Ministry of Environment, Housing and Territorial Development). BuildCo must obtain an occupancy permit. Once the approved project has been completed, the owner or builder who is responsible for the works requests the occupancy permit from the authority responsible for executing the urban control and subsequent works. 12 Obtain a public deed from the notary 1 day COP 2,738,189 Agency : Public Notary In order to register the warehouse with the public registry so that it can be used as collateral or be sold, it is necessary to submit a public deed prepared by a public notary. This public deed is referred to as "denuncia de la construcción". Once the building is completed, it is necessary to formalize the public deeds of “Declaration of the Building” at a Public Notary. The public deeds must be Page 17   registered at the Public O ce of Registration after having been updated by a Doing Business 2018 Colombia 12 Obtain a public deed from the notary 1 day COP 2,738,189 Agency : Public Notary In order to register the warehouse with the public registry so that it can be used as collateral or be sold, it is necessary to submit a public deed prepared by a public notary. This public deed is referred to as "denuncia de la construcción". Once the building is completed, it is necessary to formalize the public deeds of “Declaration of the Building” at a Public Notary. The public deeds must be registered at the Public O ce of Registration after having been updated by a notary. Per Decree No. 0451 January 20th 2017 of Notary fees and con rmation with the registering property Indicator Team COP 17,800 for the rst COP 150,000 of the property value + 0.3% of the property value above 150,000 + COP 52,800 for the deed (COP 3,300 per page for the original and three authentic copies) + COP 19,300 for the Superintendency of Notary and Registry + COP 19,300 for the National Notary Fund. 13 Register building at Real Estate Registry 7 days COP 13,069,697 Agency : Public O ce of Registration Registration of the building is required for it to be registered as collateral. Once the building is completed, it is necessary to formalize the public deeds of “Declaration of the Building” at a Public Notary in order to Register the building. Time for registration at the Registry can vary from 1 to 2 weeks, depending on the location in the city. The registry where the warehouse is located takes on average one week. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Colombia – Measure of Quality Answer Score Building quality control index (0-15) 11.0 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 Page 18   engineer. Takes place simultaneously with previous procedure. Doing Business 2018 Colombia Details – Dealing with Construction Permits in Colombia – Measure of Quality Answer Score Building quality control index (0-15) 11.0 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) 0.0 What types of inspections (if any) are required by law to be carried out during Unscheduled 0.0 construction? (0-2) inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0 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, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. 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) 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Architect or 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Professional in charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 1.0 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 Page 19   insurance ; Construction Doing Business 2018 Colombia company. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 1.0 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 ; Insurance is commonly taken in practice. Professional certi cations index (0-4) 3.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in 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. 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 Page 20   time. architect or engineer. Doing Business 2018 Colombia 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 Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out 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 21   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Colombia Standardized Connection Price of electricity (US cents per kWh) 14.4 Name of utility CODENSA City Covered Bogota Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Procedures (number) 5 5.5 4.7 2 (United Arab Emirates) Time (days) 106 66.0 79.1 10 (United Arab Emirates) Cost (% of income per capita) 542.3 927.4 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 4.2 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.46: Brazil (Rank: 45) 79.01: Peru (Rank: 63) 74.18: Colombia (Rank: 81) 72.16: Ecuador (Rank: 85) 70.45: Regional Average (Latin America & Caribbean) 70.01: Argentina (Rank: 95) 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 Colombia – Procedure, Time and Cost Time Cost 600 100 500 Cost (% of income per capita) 80 400 Time (days) 60 300 40 200 20 100 Page 22   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Colombia Figure – Getting Electricity in Colombia – Procedure, Time and Cost Time Cost 600 100 500 Cost (% of income per capita) 80 400 Time (days) 60 300 40 200 20 100 0 0 1 2 *3 *4 5 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 Colombia and comparator economies – Measure of Quality 8 7 7 6 6 6 5.4 5 Index score 5 4.2 4 3 2 1 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Getting Electricity in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Codensa and await feasibility study and cost 9 calendar days COP 0 estimate Agency : Codensa The customer submits his service application to Codensa. This can be done online (https://www.codensa.com.co/empresas/nuevas- conexiones/solicitud-de-servicio), by telephone or through one of the o ces of Codensa. The application has to indicate the electricity load required and include a number of supporting documents. Codensa will conduct an internal study to assess whether the new connection is feasible or not. In simple cases, Page 23   Codensa will just authorize the connection. In more complicated cases, the Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Doing Business 2018 Colombia Details – Getting Electricity in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to Codensa and await feasibility study and cost 9 calendar days COP 0 estimate Agency : Codensa The customer submits his service application to Codensa. This can be done online (https://www.codensa.com.co/empresas/nuevas- conexiones/solicitud-de-servicio), by telephone or through one of the o ces of Codensa. The application has to indicate the electricity load required and include a number of supporting documents. Codensa will conduct an internal study to assess whether the new connection is feasible or not. In simple cases, Codensa will just authorize the connection. In more complicated cases, the utility will request a design of the works necessary to do the connection rst. The client will receive a letter summarizing the availability of electricity in the area in question and the works that will be required for the connection. The approved application has a validity of one year, which means that the customer has one year from the moment of approval to nalize the relevant procedures needed to obtain an electricity connection from Codensa. 2 Hire private rm to design and carry out external works 60 calendar days COP 89,000,000 Agency : Authorized electric engineer or construction company If the customer choose a private company to do the external connection works, the rm will rst have to prepare a design of the planned works. According to the regulations, only an electrical engineer (ingeniero electricista) is allowed to prepare the design for the external connection works. The actual works can be later carried out by an electrician (técnico con matricula). In the majority of the cases, the construction rm that built the building will also do the connection works of installing a dedicated distribution transformer or a small sub-station. During the design preparation phase, the company can also request an excavation permit from the IDU. Once the design is ready and the permit is provided, the connection works can be carried out. The actual works take only a few days. 3 Obtain permit for construction of new connection 45 calendar days COP 750,000 Agency : IDU and Secretaria de Transito As the design of connection works are being prepared, the company will also have to obtain the relevant excavation permit from the Instituto de Desarollo Urbano (IDU). Once the permit is obtained, the sub-contractor can carry out the need connection works. 4 Obtain certi cation of internal wiring by registered rm 7 calendar days COP 1,600,000 Agency : Firm accredited with ONAC (Organismo Nacional De Acreditación) or the Superintendencia de Industria y Comercio (SIC) The customer has to request an inspection of the internal wiring installations from a rm registered with the ONAC (Organismo Nacional De Acreditación) or the Superintendencia de Industria y Comercio (SIC). The rm will assess whether the internal wiring installations comply with the Page 24   Desarollo Urbano (IDU). Once the permit is obtained, the sub-contractor can Doing carry out the Business need connection 2018 Colombia works. 4 Obtain certi cation of internal wiring by registered rm 7 calendar days COP 1,600,000 Agency : Firm accredited with ONAC (Organismo Nacional De Acreditación) or the Superintendencia de Industria y Comercio (SIC) The customer has to request an inspection of the internal wiring installations from a rm registered with the ONAC (Organismo Nacional De Acreditación) or the Superintendencia de Industria y Comercio (SIC). The rm will assess whether the internal wiring installations comply with the standards of the RETIE (Reglamento Técnico de Instalaciones Eléctricas) and issue an inspection certi cate to the customer. The inspection certi cate has to be submitted to Codensa before the electricity supply is turned on. Since the internal wiring installations are completed, they can be veri ed in parallel with the excavation permit and connection works. 5 Receive inspection of external works, meter installation and electricity 37 calendar days COP 3,156,237 ow Agency : Codensa After the completion of connection works, Codensa carries out a technical visit, which consists in an inspection of such works. If the works are approved, Codensa installs the meter and initiates supply. Takes place simultaneously with previous procedure. Details – Getting Electricity in Colombia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 1 System average interruption duration index (SAIDI) 6.3 System average interruption frequency index (SAIFI) 5.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Page 25   Are e ective tari s available online? Yes Takes place simultaneously with previous procedure. Doing Business 2018 Colombia Details – Getting Electricity in Colombia – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 1 System average interruption duration index (SAIDI) 6.3 System average interruption frequency index (SAIFI) 5.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes 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.codensa. com.co/hogar/tarifa s 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. Page 26   What the indicators measure Case study assumptions 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 Colombia 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) Standard Property Transfer Property value COP 871,313,132.60 City Covered Bogota Page 27   Latin America & OECD high Doing Business 2018 Colombia Standard Property Transfer Property value COP 871,313,132.60 City Covered Bogota Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Procedures (number) 7 7.2 4.6 1.00 (4 Economies) Time (days) 15 63.3 22.3 1.00 (3 Economies) Cost (% of property value) 1.9 5.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 16.5 12.0 22.7 29.00 (Singapore) Figure – Registering Property in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 74.90: Peru (Rank: 44) 71.34: Colombia (Rank: 60) 66.18: Ecuador (Rank: 74) 56.75: Argentina (Rank: 117) 55.36: Regional Average (Latin America & Caribbean) 52.60: Brazil (Rank: 131) 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 Colombia – Procedure, Time and Cost Time Cost 1.6 14 1.4 12 Cost (% of property value) 1.2 10 1 Time (days) 8 0.8 6 0.6 4 0.4 2 0.2 0 0 1 *2 *3 *4 5 *6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 28   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Colombia Figure – Registering Property in Colombia – Procedure, Time and Cost Time Cost 1.6 14 1.4 12 Cost (% of property value) 1.2 10 1 Time (days) 8 0.8 6 0.6 4 0.4 2 0.2 0 0 1 *2 *3 *4 5 *6 7 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a 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 Colombia and comparator economies – Measure of Quality 20 17.5 18 16.5 16.5 16 13.5 13.8 14 12.0 Index score 12 10 8 6 4 2 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Registering Property in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 A study of the titles of the property is done by a lawyer 5 days COP 1,113,000 Agency : Lawyer's o ce A lawyer will make a study of the past titles of the property and about the history of the owners to carry out the transaction. The study of the titles is not mandatory, but it takes place almost always for property transactions. The lawyer should be provided with (i) the certi cate of good standing, (ii) The Real Estate Registry Certi cate; (iii) the title of acquisition of the property by the seller; (iv) any other document corresponding to inscriptions made in the Real Estate Registry Certi cate within the past ten years (such as mortgages, attachment, etc.); (v) a copy of the minutes of the meeting of the Board of Quota holders or Board of Directors (if applicable) in which the Page 29   Company's Legal Representative is authorized to carry out the transaction. Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Doing Business 2018 Colombia Details – Registering Property in Colombia – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 A study of the titles of the property is done by a lawyer 5 days COP 1,113,000 Agency : Lawyer's o ce A lawyer will make a study of the past titles of the property and about the history of the owners to carry out the transaction. The study of the titles is not mandatory, but it takes place almost always for property transactions. The lawyer should be provided with (i) the certi cate of good standing, (ii) The Real Estate Registry Certi cate; (iii) the title of acquisition of the property by the seller; (iv) any other document corresponding to inscriptions made in the Real Estate Registry Certi cate within the past ten years (such as mortgages, attachment, etc.); (v) a copy of the minutes of the meeting of the Board of Quota holders or Board of Directors (if applicable) in which the Company's Legal Representative is authorized to carry out the transaction. 2 Obtain ownership history and no-lien certi cate (certi cado de tradición Less than a day COP 13,912 (COP y libertad) at the Registry O ce (online procedure 14,800 - 6% of Agency : Ventanilla Unica de Registro and simultaneous discount for on-line with previous ) payment) The certi cate carries information on the legal provisions of the property as well as the current and previous owners. The process is supported by Law 1579 of 2012, and the fee is based on the Resolution 0727 of 2016. Any person can request the issuance of this certi cate through the website of the Superintendencia de Notariado y Registro, VUR: http://www.supernotariado.gov.co, which contains the legal information of the properties from all over the country. To access the information contained in the VUR, a prior online registration is required. The certi cate has a cost of COP 14,800 and a discount of 6% for online payment. 3 A certi cate of good standing ("Existencia y Representacion legal") of the Less than a day COP 5,164 (0.70% of company must be obtained at the Chamber of Commerce (online procedure the minimum wage) Agency : Bogotá Chamber of Commerce and simultaneous with previous In order to carry out the transaction when the parties are companies, a procedure) certi cate of good standing of the company (“Certi cado de Existencia y Representación legal de la Compañía”) must be requested at the Chamber of Commerce. This certi cate does not have an expiration date for its validity, but some entities, such banks or authorities, request for certi cates issued with less than three months in order to obtain updated information. Electronic Certi cates of Existence and Legal Representation can also be obtained online since 2010. The certi cate can be requested, paid and obtained online. Payment can be paid by credit card. The certi cate provides real time information of the company (Bogota Chamber of Commerce: http://linea.ccb.org.co/certi cadoselectronicos).The value of the Certi cate of Existance and Legal Representation is updated once a year according to the increase of the minimum monthly legal wage. The amount to pay is approximately 0.70% of the minimum monthly legal wage. 4 Obtain tax certi cates ("predial" and "valorizacion") Less than a day no cost Agency : Ventanilla Unica de Registro (or CADE) (online procedure simultaneous with From the VUR website, it is now possible to see and obtain online the previous Page 30   "certi cado de paz y salvo predial" (stating municipal property taxes have procedure) the increase of the minimum monthly legal wage. The amount to pay is Doing approximately Business 2018 of the minimum monthly legal wage. 0.70% Colombia 4 Obtain tax certi cates ("predial" and "valorizacion") Less than a day no cost Agency : Ventanilla Unica de Registro (or CADE) (online procedure simultaneous with From the VUR website, it is now possible to see and obtain online the previous "certi cado de paz y salvo predial" (stating municipal property taxes have procedure) been paid, issued by the Secretaría de Hacienda del Distrito) and the "certi cado de paz y salvo de valorización" (taxes related to increases in the value of the property due to constructions, roads, etc. issued by the Instituto de Desarrollo Urbano or IDU). For properties with no liens, the certi cates obtained and printed out from the internet at the notary's o ces can now be submitted to the Land Registry. Notaries have a special login to access these certi cates. This certi cate has no cost if requested online and can be obtained by submitting the "chip catastral". The VUR website is: http://www.vur.gov.co/ 5 The notary prepares the public deed 3 days COP 18.800 on the Agency : Notary first COP 150,000 + 0.3% of the contract The notary public will prepare the nal public deed with all the ´s value above documentation previously obtained by the parties. The notary will also check COP150,000 (in this the Board of directors' minutes authorizing the sale and purchase of each case COP 24,381,376) property respectively for each limited liability company. + COP 3,500 for each page of the 3 The participation of a notary in the preparation of the public deed is mandatory by law, and his/her fees are also established by law (0.3% of authentic copies of property value + other indicated fees). Notary fees change on a yearly basis. the Public Deed + COP 20,650 for the The deed or ("minuta") establishes the terms of the sale between the parties. National Notary It is not mandatory, but it is normally prepared by a lawyer. If parties prepare Fund + COP 20,650 the minuta, the notary will review it while preparing the public deed. for the Superintendency of Notary and Registry + COP 5,400 for biometric identification of fingerprint and signature 6 The notary pays transfer tax and registration fee online Less than a day 1% of property value Agency : Registry O ce (O cina de Registro de Instrumentos Públicos) (online procedure (Registry Tax) + 0.5% and simultaneous of property value The “registry tax” or “Impuesto de Registro” can be paid at the registry o ce with Procedure 5) (Registration Fee) in the city of Bogotá and other large cities, where the commercial bank in charge of collection of this tax has installed a branch for this purpose. The payment can also be made online at the website https://www.abcpagos.com/instrumentos_publicos/. The “Impuesto de Registro” is a tax that goes to nance state-level programs on public health. It is not a fee for a service but a tax. 7 The public deed must be registered at the Registry O ce 7 days already paid in Agency : Registry O ce (O cina de Registro de Instrumentos Públicos) Procedure 6 After the “registry tax” and the registration fee are paid, the public deed prepared by the notary must be registered at the Registry O ce for its Page 31   validity. After registration, the new public deed is automatically sent (internal The “Impuesto de Registro” is a tax that goes to nance state-level programs Doing on public health. Business 2018 not a fee for a service but a tax. It is Colombia 7 The public deed must be registered at the Registry O ce 7 days already paid in Agency : Registry O ce (O cina de Registro de Instrumentos Públicos) Procedure 6 After the “registry tax” and the registration fee are paid, the public deed prepared by the notary must be registered at the Registry O ce for its validity. After registration, the new public deed is automatically sent (internal procedure) to the O ce of the Cadaster to register the change of ownership. Takes place simultaneously with previous procedure. Details – Registering Property in Colombia – Measure of Quality Answer Score Quality of the land administration index (0-30) 16.5 Reliability of infrastructure index (0-8) 6.0 What is the institution in charge of immovable property registration? O cina de Registro de Instrumentos Públicos de Bogotá In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Unidad Administrativa Especial de Catastro In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked 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) 3.5 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, online 0.5 made publicly available–and if so, how? Link for online access: Page 32   Takes place simultaneously with previous procedure. Doing Business 2018 Colombia Details – Registering Property in Colombia – Measure of Quality Answer Score Quality of the land administration index (0-30) 16.5 Reliability of infrastructure index (0-8) 6.0 What is the institution in charge of immovable property registration? O cina de Registro de Instrumentos Públicos de Bogotá In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Unidad Administrativa Especial de Catastro In what format are the majority of maps of land plots kept in the largest business city— Computer/Fully 2.0 in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked 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) 3.5 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, online 0.5 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, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: https://www.sup ernotariado.gov. co/PortalSNR/Sh owProperty? nodeId=%2FSNR Content%2FWLS Page 33   WCCPORTAL0110 immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Colombia Link for online access: https://www.sup ernotariado.gov. co/PortalSNR/Sh owProperty? nodeId=%2FSNR Content%2FWLS WCCPORTAL0110 6403%2F%2FidcP rimaryFile&revisi on=latestrelease d Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 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: http://www.snrb otondepago.gov. co:8080/PORTAL/ faces/jsp/politica s.jsp 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? Freely accessible 0.5 by anyone Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://mapas.bo gota.gov.co/port almapas/ 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) 2.0 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? Page 34   Are all privately held land plots in the economy formally registered at the immovable No 0.0 property Doing registry? Business 2018 Colombia 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? Yes 2.0 Land dispute resolution index (0–8) 5.0 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; Notary. 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; Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Juez Civil del property worth 50 times gross national income (GNI) per capita and located in the Circuito de largest business city, what court would be in charge of the case in the rst instance? Bogotá How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 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 Page 35   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Colombia 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. Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Strength of legal rights index (0-12) 12 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Page 36   Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Colombia Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Strength of legal rights index (0-12) 12 5.3 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 4.8 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 14.0 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 94.5 43.1 63.7 100.00 (23 Economies) Figure – Getting Credit in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 95.00: Colombia (Rank: 2) 80.00: Peru (Rank: 20) 55.00: Argentina (Rank: 77) 50.94: Regional Average (Latin America & Caribbean) 45.00: Brazil (Rank: 105) 45.00: Ecuador (Rank: 105) 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 Colombia and comparator economies 14 12 12 10 Index score 8 8 6 5.3 4 3 2 2 1 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Legal Rights in Colombia Strength of legal rights index (0-12) 12 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes 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? Page 37   Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Doing Business 2018 Colombia Details – Legal Rights in Colombia Strength of legal rights index (0-12) 12 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and Yes 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 Yes 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? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be Yes 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 Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised Yes 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 Colombia and comparator economies 10 8 8 8 8 7 7 Index score 6 4.8 4 2 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Credit Information in Colombia Page 38   0 Colombia Doing Business 2018 Argentina Colombia Brazil Ecuador Peru Latin America & Caribbean Details – Credit Information in Colombia Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - Yes No 1 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? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 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 Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 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 30,524,514 0 Number of firms 1,104,988 0 Total 31,629,502 0 Percentage of adult population 94.5 0.0 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 39   transactions; Available legal remedies (damages, Percentage of adult population 94.5 0.0 Doing Business 2018 Colombia 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. Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 8 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.7 4.1 6.4 Page 40   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Colombia Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Extent of conflict of interest regulation index (0- 8 5.3 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 6.7 4.1 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.33: Colombia (Rank: 16) 63.33: Argentina (Rank: 43) 63.33: Brazil (Rank: 43) 61.67: Peru (Rank: 51) 47.24: Regional Average (Latin America & Caribbean) 46.67: Ecuador (Rank: 124) 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 Colombia and comparator economies – Measure of Quality Colombia 6 7 9 8 6 8 Argentina 7 2 7 7 9 6 Brazil 8 8 5 6 7 4 Ecuador 3 5 2 3 9 6 Peru 5 6 9 3 8 6 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Latin America & Caribbean 4.1 5.4 4.4 3.4 5.6 6.5 0 5 10 15 20 25 30 35 40 45 50 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 Colombia – Measure of Quality Answer Score Page 41   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Colombia Details – Protecting Minority Investors in Colombia – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 8 Extent of disclosure index (0-10) 9 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his 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- Disclosure on 2.0 2) the transaction and on the con ict of interest 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 unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) 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) 8 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 Page 42   shareholder Ease ofBusiness Doing suits index 2018 (0-10) Colombia 8 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 Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 6.7 Extent of shareholder rights index (0-10) 6 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 No 0.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 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 No 0.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 8 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? Yes 1.0 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 Page 43   of Buyer? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Colombia 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? Yes 1.0 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 Yes 1.0 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 Yes 1.0 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%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 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 Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 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 44   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 No 0.0 audited by an external auditor? Doing Business 2018 Colombia 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. Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Payments (number per year) 12 28.0 10.9 3 (Hong Kong SAR, China) Page 45   return, but within the tax assessment period. Doing Business 2018 Colombia Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Payments (number per year) 12 28.0 10.9 3 (Hong Kong SAR, China) Time (hours per year) 239 332.1 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 69.7 46.6 40.1 18.47% (32 Economies) Postfiling index (0-100) 48.17 47.50 83.45 99.38 (Estonia) Figure – Paying Taxes in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 65.81: Peru (Rank: 121) 60.16: Regional Average (Latin America & Caribbean) 59.12: Colombia (Rank: 142) 58.39: Ecuador (Rank: 145) 49.34: Argentina (Rank: 169) 32.97: Brazil (Rank: 184) 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 Colombia and comparator economies – Measure of Quality 60 48.17 47.94 49.54 47.50 50 40 Index score 30 19.24 20 10 7.80 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Paying Taxes in Colombia Tax or Total tax and mandatory Payments Notes on Time Statutory contribution rate (% of Notes on contribution (number) Payments (hours) tax rate Tax base profit) TTR Page 46   Municipal tax 1 online 1.104% turnover 19.52 Doing Business 2018 Colombia Figure – Paying Taxes in Colombia and comparator economies – Measure of Quality 60 48.17 47.94 49.54 47.50 50 40 Index score 30 19.24 20 10 7.80 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Paying Taxes in Colombia Tax or Total tax and mandatory Payments Notes on Time Statutory contribution rate (% of Notes on contribution (number) Payments (hours) tax rate Tax base profit) TTR Municipal tax 1 online 1.104% turnover 19.52 Corporate 1 online 86 25% taxable profit 16.33 income tax Social security 1 online 87 12% gross salaries 14.12 contributions Financial 1 0.4% withdrawals 6.51 transactions tax from bank account Income Tax for 1 online 9% taxable profit 5.88 Equity - CREE Payroll tax 0 online and 4% gross salaries 4.51 jointly Real estate tax 1 1% assessed real 1.48 estate value Urban Boundary 1 2.6% Project budget 0.79 Tax Net Wealth Tax 1 online 0.15%-1.0% Net wealth 0.29 Vehicle tax 1 2.5% 0.26 Welfare security 0 online and 8.5% gross salaries 0.00 included in system jointly other taxes Value added tax 1 online 66 16% value added 0.00 not (VAT) included Stamp duty 1 0.00 small amount Labor risk 0 online and 0.522% gross salaries 0.00 included in Page 47   insurance jointly other taxes Stamp duty 1 0.00 small Doing Business 2018 Colombia amount Labor risk 0 online and 0.522% gross salaries 0.00 included in insurance jointly other taxes Fuel tax 1 6% consumption 0.00 small value amount Employee 0 8% - 10% 0.00 not contributions included Totals 12 239 69.7 Details – Paying Taxes in Colombia – Tax by Type Taxes by type Answer Profit tax (% of profit) 22.2 Labor tax and contributions (% of profit) 18.6 Other taxes (% of profit) 28.9 Details – Paying Taxes in Colombia – Measure of Quality Answer Score Post ling index (0-100) 48.17 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? No Restrictions on VAT refund process Restricted to international traders Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT refund 0 per case study scenario Time to obtain a VAT refund (weeks) No VAT refund 0 per case study scenario Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 5.5 92.66 Page 48   Percentage Doing of cases Business 2018exposed to a corporate income tax audit (%) Colombia 0% - 24% Time to comply with a corporate income tax audit (hours) 5.5 92.66 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario 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. 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) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while 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 Page 49   largest purchaser of this product. Shipment value is assumed to be a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Colombia 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) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while 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 50   of agriculture or industry, national security agencies and any other Doing Business 2018 Colombia government authorities. Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Time to export: Border compliance (hours) 112 62.5 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 545 526.5 149.9 0.00 (19 Economies) Time to export: Documentary compliance 60 53.3 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 90 110.4 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 112 64.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 545 684.0 111.6 0.00 (27 Economies) Time to import: Documentary compliance 64 79.9 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 50 119.5 25.6 0.00 (30 Economies) Figure – Trading across Borders in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.45: Peru (Rank: 92) 68.71: Regional Average (Latin America & Caribbean) 68.65: Ecuador (Rank: 102) 65.36: Argentina (Rank: 116) 62.83: Colombia (Rank: 125) 59.78: Brazil (Rank: 139) 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 Colombia – Time and Cost Time Cost 120 112 112 600 545 545 100 500 80 400 Time (hours) Cost (USD) 64 60 60 300 40 200 90 20 50 100 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 51   Doing Business 2018 Colombia Figure – Trading across Borders in Colombia – Time and Cost Time Cost 120 112 112 600 545 545 100 500 80 400 Time (hours) Cost (USD) 64 60 60 300 40 200 90 20 50 100 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Colombia Characteristics Export Import Product HS 09 : Coffee, tea, matï and spices HS 8708: Parts and accessories of motor vehicles Trade partner United States United States Border Cartagena port Cartagena port Distance (km) 1035 1035 Domestic transport time (hours) 44 44 Domestic transport cost (USD) 1525 1525 Details – Trading across Borders in Colombia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 36.0 175.0 Export: Clearance and inspections required by agencies other than customs 36.3 0.0 Export: Port or border handling 112.0 370.0 Import: Clearance and inspections required by customs authorities 48.0 175.0 Import: Clearance and inspections required by agencies other than customs 40.0 0.0 Import: Port or border handling 112.0 370.0 Details – Trading across Borders in Colombia – Trade Documents Export Import Phytosanitary Certificate Bill of lading National Coffee Exporter's Federation certificate (Certificado de Exportadores de Café /Certificado de Page 52   Cargo Release Order Domestic transport cost (USD) 1525 1525 Doing Business 2018 Colombia Details – Trading across Borders in Colombia – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 36.0 175.0 Export: Clearance and inspections required by agencies other than customs 36.3 0.0 Export: Port or border handling 112.0 370.0 Import: Clearance and inspections required by customs authorities 48.0 175.0 Import: Clearance and inspections required by agencies other than customs 40.0 0.0 Import: Port or border handling 112.0 370.0 Details – Trading across Borders in Colombia – Trade Documents Export Import Phytosanitary Certificate Bill of lading National Coffee Exporter's Federation certificate (Certificado de Exportadores de Café /Certificado de Cargo Release Order Repeso) ICA Zoosanitary certificate (CeZa/ Certificado Zoosanitario para Exportacion) Certificate of origin Antinarcotic Inspection Report Commercial invoice Certificate of Origin Customs Import Declaration Commercial Invoice Packing list Customs Export Declaration Pre-Inspection Report Packing List Terminal Handling Receipts Bill of Lading SOLAS certificate Export License ü 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. What the indicators measure Case study assumptions Page 53   Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract SOLAS certificate Doing Business 2018 Colombia 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. Standardized Case Claim value COP 32,508,503.00 Court name Bogota Civil Municipal Court City Covered Bogota Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Time (days) 1288 767.1 577.8 164.00 (Singapore) Cost (% of claim value) 45.8 31.4 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 9.0 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.00: Brazil (Rank: 47) 60.70: Peru (Rank: 63) 59.38: Ecuador (Rank: 75) Page 54   of judicial processes Quality Business Doing index (0-18) 2018 Colombia 9.0 8.4 11.0 15.50 (Australia) Figure – Enforcing Contracts in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 66.00: Brazil (Rank: 47) 60.70: Peru (Rank: 63) 59.38: Ecuador (Rank: 75) 55.66: Argentina (Rank: 102) 53.13: Regional Average (Latin America & Caribbean) 34.29: Colombia (Rank: 177) 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 Colombia – Time and Cost Time Cost 1400 1288 45.8 50 1200 Cost (% of claim value) 995 35.7 40 1000 31.4 Time (days) 731 27.2 767.1 30 800 22.5 22.0 577.8 21.5 600 523 426 20 400 10 200 0 0 Argentina Brazil Colombia Ecuador Latin America & OECD high income Peru Caribbean Figure – Enforcing Contracts in Colombia and comparator economies – Measure of Quality Colombia 2.5 1.5 1.5 3.5 Argentina 2 4 1 4.5 Brazil 3 3 3 4.1 Ecuador 2.5 3 0 2 Peru 2.5 2.5 0 3.5 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 Page 55   14 Argentina Brazil Colombia Ecuador Latin America & OECD high income Peru Caribbean Doing Business 2018 Colombia Figure – Enforcing Contracts in Colombia and comparator economies – Measure of Quality Colombia 2.5 1.5 1.5 3.5 Argentina 2 4 1 4.5 Brazil 3 3 3 4.1 Ecuador 2.5 3 0 2 Peru 2.5 2.5 0 3.5 OECD high income 2.5 2.9 2 3.6 Latin America & Caribbean 2.4 2 0.9 3.5 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Colombia Indicator Time (days) 1288 Filing and service 68 Trial and judgment 855 Enforcement of judgment 365 Cost (% of claim value) 45.8 Attorney fees 23.2 Court fees 10.5 Enforcement fees 12.1 Quality of judicial processes index (0-18) 9.0 Court structure and proceedings (-1-5) 3.5 Case management (0-6) 1.5 Court automation (0-4) 1.5 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Colombia – Measure of Quality Page 56   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Colombia Details – Enforcing Contracts in Colombia – Measure of Quality Answer Score Quality of judicial processes index (0-18) 9.0 Court structure and proceedings (-1-5) 3.5 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, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.5 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 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) Yes 1.0 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) 1.5 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 Yes 1.0 competent court? Page 57   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Colombia 2. Is it possible to carry out service of process electronically for claims led before the Yes 1.0 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) 2.5 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 1.0 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., No 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 58   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 Colombia 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) Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 66.2 30.8 71.2 93.1 (Norway) Time (years) 1.7 2.9 1.7 0.4 (Ireland) Page 59   Cost (% of estate) 8.5 16.8 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Colombia Latin America & OECD high Indicator Colombia Caribbean income Overall Best Performer Recovery rate (cents on the dollar) 66.2 30.8 71.2 93.1 (Norway) Time (years) 1.7 2.9 1.7 0.4 (Ireland) Cost (% of estate) 8.5 16.8 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 11.0 7.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Colombia and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.02: Colombia (Rank: 33) 47.46: Brazil (Rank: 80) 45.69: Peru (Rank: 84) 41.24: Argentina (Rank: 101) 38.95: Regional Average (Latin America & Caribbean) 25.01: Ecuador (Rank: 157) 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 Colombia – Time and Cost Time Cost 6 20 5.3 18.0 16.5 16.8 5 4.0 15 4 12.0 Time (years Co (% of est 2.9 3.1 3 8.5 9.1 10 2.4 7.0 1.7 1.7 Cost 2 5 1 0 0 Argentina Brazil Colombia Ecuador Latin America & OECD high income Peru Caribbean Figure – Resolving Insolvency in Colombia and comparator economies – Measure of Quality Colombia 5.5 3 1 1.5 Page 60   Argentina 4 2.5 1 2 Argentina Brazil Colombia Ecuador Latin America & OECD high income Peru Caribbean Doing Business 2018 Colombia Figure – Resolving Insolvency in Colombia and comparator economies – Measure of Quality Colombia 5.5 3 1 1.5 Argentina 4 2.5 1 2 Brazil 5.5 2.5 3 2 Ecuador 2 2 1 0 Peru 3.5 2.5 3 0.5 OECD high income 5.4 2.8 2.3 1.9 Latin America & Caribbean 3.7 2.4 1.9 0.8 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Colombia and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 70 66.2 60 50 40 29.7 30.8 30 21.5 20 17.4 12.7 10 0 Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Details – Resolving Insolvency in Colombia Indicator Answer Explanation Proceeding reorganization The most likely procedure in the case of Mirage would be reorganization (art. 9.2 Law 1116) given the operating loss and the circumstance that the company is in a situation in which is unable to pay its debts (imminent default). By filing for a reorganization procedure it would be possible for Mirage to negotiate a reorganization plan that will include instruments of debt rescheduling and will allow the Mirage can continue to operate based on its current financial situation. By commencing the reorganization procedure BizBank wouldn't be in a position to start foreclosure or any type of debt enforcement procedure. Outcome going concern The goal of reorganization procedure is that the company continues to operate at the end of the proceedings and that the hotel business can be profitable. The objective of Colombia’s insolvency system is for the company to survive. Time (in years) 1.7 It would take approximately 20 months for a reorganization procedure before the Page 61   Colombia Argentina Brazil Ecuador Peru Latin America & Caribbean Doing Business 2018 Colombia Details – Resolving Insolvency in Colombia Indicator Answer Explanation Proceeding reorganization The most likely procedure in the case of Mirage would be reorganization (art. 9.2 Law 1116) given the operating loss and the circumstance that the company is in a situation in which is unable to pay its debts (imminent default). By filing for a reorganization procedure it would be possible for Mirage to negotiate a reorganization plan that will include instruments of debt rescheduling and will allow the Mirage can continue to operate based on its current financial situation. By commencing the reorganization procedure BizBank wouldn't be in a position to start foreclosure or any type of debt enforcement procedure. Outcome going concern The goal of reorganization procedure is that the company continues to operate at the end of the proceedings and that the hotel business can be profitable. The objective of Colombia’s insolvency system is for the company to survive. Time (in years) 1.7 It would take approximately 20 months for a reorganization procedure before the Superintendency of Companies in Bogotá. Once the procedure starts, the phase of advertising, elaborating the creditor list and negotiating the agreement would take approximately 1 year. The time to resolve oppositions is included in this estimate. Once this period finished, it would take approximately 6 months more to judicially validate the agreement. This estimate takes into account the relative simplicity of the case because there is only one secured creditor and the liabilities are less than 1,200 million of pesos, so the time necessary to resolve is less than the average of 2.88 years estimated by the Superintendency of Companies for all the reorganization cases in Colombia. Cost (% of 8.5 The costs associated with the reorganization would amount to 8.4% of the estate. The main estate) component are lawyer fees (5%). The remaining costs would be the fees of the promoter (2.4%, taking into account art. 39 of Law 1380 of 2010, 0.2% of the assets of the insolvent company for each month of negotiation). And the remaining 1% is for the court and notification fees related to the process, and the fees of accountants and other professionals. Recovery rate (cents on the 66.2 dollar) Details – Resolving Insolvency in Colombia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization 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 Page 62   as they mature dollar) Doing Business 2018 Colombia Details – Resolving Insolvency in Colombia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization 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) 5.5 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 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? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all 0.5 pre- commencement creditors, secured or unsecured Reorganization proceedings index (0-3) 1.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 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 Yes 1.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 1.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Page 63   Creditor Doing participation Business 2018 index (0-4) Colombia 1.0 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? 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 Yes 1.0 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 Page 64   work of equal value and nondiscrimination based on 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 Colombia 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. Details – Labor Market Regulation in Colombia Answer Hiring Page 65   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Colombia Details – Labor Market Regulation in Colombia Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) 36.0 Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 267.5 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 2.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 35.0 Premium for work on weekly rest day (% of hourly pay) 75.0 Premium for overtime work (% of hourly pay) 25.0 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) 15.0 Paid annual leave for a worker with 5 years of tenure (working days) 15.0 Paid annual leave for a worker with 10 years of tenure (working days) 15.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 15.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 66   Third-party Doing approval Business 2018 if nine workers are dismissed? Colombia No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 0.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 0.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 0.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 0.0 Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.3 Severance pay for redundancy dismissal for a worker with 5 years of tenure 15.7 Severance pay for redundancy dismissal for a worker with 10 years of tenure 30.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 16.7 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)? 126.0 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? Yes Minimum contribution period for unemployment protection (months)? 12.0 Business Reforms in Colombia 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 Colombia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Labor Market Regulation: Colombia increased the mandatory length of paid maternity leave. DB2017 Starting a Business: Colombia made starting a business easier by streamlining registration procedures. DB2016 Paying Taxes: Colombia made paying taxes less costly for companies by reducing the payroll tax rate and introducing Page 67   Minimum contribution period for unemployment protection (months)? 12.0 Doing Business 2018 Colombia Business Reforms in Colombia 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 Colombia implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Labor Market Regulation: Colombia increased the mandatory length of paid maternity leave. DB2017 Starting a Business: Colombia made starting a business easier by streamlining registration procedures. DB2016 Paying Taxes: Colombia made paying taxes less costly for companies by reducing the payroll tax rate and introducing exemptions for health care contributions paid by employers. DB2015 Registering Property: Colombia made transferring property easier by eliminating the need for a provisional registration. Getting Credit: Colombia improved access to credit by adopting a new secured transactions law that establishes a functional secured transactions system and a centralized, notice-based collateral registry. The law broadens the range of assets that can be used as collateral, allows a general description of assets granted as collateral, establishes clear priority rules inside bankruptcy for secured creditors, sets out grounds for relief from a stay of enforcement actions by secured creditors during reorganization procedures and allows out-of-court enforcement of collateral. Paying Taxes: Colombia made paying taxes more complicated for companies by introducing a new pro t tax (CREE), though it also reduced the corporate income tax rate and payroll taxes. DB2014 Getting Electricity: Colombia made getting electricity easier by opening a one-stop shop for electricity connections and improving the e ciency of the utility’s internal processes. Enforcing Contracts: Colombia made enforcing contracts easier by simplifying and speeding up the proceedings for commercial disputes. DB2013 Starting a Business: Colombia made starting a business easier by eliminating the requirement to purchase and register accounting books at the time of incorporation. DB2012 Starting a Business: Colombia reduced the costs associated with starting a business, by no longer requiring upfront payment of the commercial license fee. Paying Taxes: Colombia eased the administrative burden of paying taxes for rms by establishing mandatory electronic ling and payment for some of the major taxes. Resolving Insolvency: Colombia amended regulations governing insolvency proceedings to simplify the proceedings and reduce their time and cost DB2011 Starting a Business: Colombia eased the process of Starting a Business by reducing the number of days to register with the Social Security System. Dealing with Construction Permits: Colombia eased construction permitting by improving the electronic veri cation of Page 68   DB2011 Doing Business Starting 2018 a Business: Colombia Colombia eased the process of Starting a Business by reducing the number of days to register with the Social Security System. Dealing with Construction Permits: Colombia eased construction permitting by improving the electronic veri cation of prebuilding certi cates. DB2010 Starting a Business: Colombia made starting a business easier by establishing a new public-private health provider (Nueva EPS) that enables faster enrollment of employees and by introducing online preenrollment with the Social Security Institute (Instituto de Seguro Social). Dealing with Construction Permits: Colombia made dealing with construction permits easier by introducing regulations that categorize building projects on the basis of risk and allow electronic veri cation for certain documents. Registering Property: Colombia made transferring property easier by making certi cates required for the process available online and providing a standard preliminary sale agreement free of charge, online and in notary o ces. Getting Credit: Colombia improved access to credit information by guaranteeing borrowers’ right to inspect their own data and by making it mandatory for credit providers to consult and share information with credit bureaus. Protecting Minority Investors: Colombia strengthened investor protections by making it easier to sue directors when a related- party transaction harms the company. Paying Taxes: Colombia made paying taxes easier and less costly for companies by introducing electronic ling and payment and reducing some payments. Trading across Borders: Colombia speeded up the customs clearance process by implementing the electronic data interchange system MUISCA. Resolving Insolvency: Colombia enhanced its insolvency process through several decrees regulating the profession of insolvency administrators. DB2009 Starting a Business: Colombia reduced the time, cost and number of procedures to start a business by introducing online company registration and simplifying other registration formalities. Dealing with Construction Permits: Colombia made dealing with construction permits easier by fully adopting the “silence is consent” rule and by introducing a new uni ed application form for building permits. Paying Taxes: Colombia made paying taxes easier for companies by integrating and unifying electronic forms for tax payments and making electronic payment mandatory for companies with more than 30 employees. Trading across Borders: Colombia reduced the time for exporting and importing through the implementation of risk management procedures, electronic data interchange and electronic payment of customs duties and through improvements in the banking sector. Resolving Insolvency: Colombia improved its insolvency process by introducing 2 new proceedings—a reorganization procedure to restructure insolvent companies and a mandatory liquidation procedure—and tightening the time limits for negotiating reorganization agreements. DB2008 Protecting Minority Investors: Colombia strengthened investor protections by increasing disclosure requirements for related- party transactions in the annual report. Paying Taxes: Colombia made paying taxes easier for companies through the di usion of electronic facilities—though it also increased employers’ social security contribution rate. Trading across Borders: Colombia made trading across borders easier by extending operating hours for customs and the port in Cartagena. Page 69   Trading across Borders: Colombia made trading across borders easier by extending operating hours for customs and the port in Cartagena. Doing Business 2018 Colombia Page 70