Economy Profile
Guyana
Guyana
Doing Business
2020
Page 1
Economy Profile of
Guyana
Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business
Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits
Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity
Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property
Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit
Movable collateral laws and credit information systems
Protecting minority investors
Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes
Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders
Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts
Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency
Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers
Flexibility in employment regulation and redundancy cost
Guyana
Doing Business
2020
Page 2
About Doing Business
The
project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
Doing Business
The
project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business
captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency.
also measures features of employing workers. Although
does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
Doing Business
Doing Business Doing Business
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
Doing Business
In addition,
offers detailed
, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that
has ranked.
Doing Business
subnational studies
Doing Business
The first
study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where
also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
Doing Business
Doing Business
To learn more about
please visit
Doing Business
doingbusiness.org
Guyana
Doing Business
2020
Page 3
Ease of Doing Business in
Guyana
Region
Latin America & Caribbean
Income Category
Upper middle income
Population
779,004
City Covered
Georgetown
134
DB RANK DB SCORE
55.5
Rankings on Doing Business topics -
Guyana
111
167
170
128
94
88
122
151
92
163
Starting
a
Business
Dealing
with
Construction
Permits
Getting
Electricity
Registering
Property
Getting
Credit
Protecting
Minority
Investors
Paying
Taxes
Trading
across
Borders
Enforcing
Contracts
Resolving
Insolvency
Topic Scores
85.6 52.5 45.9 55.7 55.0 56.0 65.7 58.3 57.9 22.4
(rank)
Starting a Business
111
Score of starting a business (0-100)
85.6
Procedures (number)
7
Time (days)
18
Cost (number)
9.4
Paid-in min. capital (% of income per capita)
0.0
(rank)
Dealing with Construction Permits
167
Score of dealing with construction permits (0-100)
52.5
Procedures (number)
18
Time (days)
208
Cost (% of warehouse value)
2.4
Building quality control index (0-15)
4.0
(rank)
Getting Electricity
170
Score of getting electricity (0-100)
45.9
Procedures (number)
8
Time (days)
82
Cost (% of income per capita)
423.8
Reliability of supply and transparency of tariff index (0-8)
0
(rank)
Registering Property
128
Score of registering property (0-100)
55.7
Procedures (number)
7
Time (days)
46
Cost (% of property value)
4.6
Quality of the land administration index (0-30)
7.5
(rank)
Getting Credit
94
Score of getting credit (0-100)
55.0
Strength of legal rights index (0-12)
3
Depth of credit information index (0-8)
8
Credit registry coverage (% of adults)
0.0
Credit bureau coverage (% of adults)
30.9
(rank)
Protecting Minority Investors
88
Score of protecting minority investors (0-100)
56.0
Extent of disclosure index (0-10)
5.0
Extent of director liability index (0-10)
5.0
Ease of shareholder suits index (0-10)
8.0
Extent of shareholder rights index (0-6)
4.0
Extent of ownership and control index (0-7)
2.0
Extent of corporate transparency index (0-7)
4.0
(rank)
Paying Taxes
122
Score of paying taxes (0-100)
65.7
Payments (number per year)
35
Time (hours per year)
256
Total tax and contribution rate (% of profit)
30.6
Postfiling index (0-100)
54.2
(rank)
Trading across Borders
151
Score of trading across borders (0-100)
58.3
Time to export
Documentary compliance (hours)
200
Border compliance (hours)
72
Cost to export
Documentary compliance (USD)
78
Border compliance (USD)
468
Time to import
Documentary compliance (hours)
156
Border compliance (hours)
84
Cost to import
Documentary compliance (USD)
63
Border compliance (USD)
265
(rank)
Enforcing Contracts
92
Score of enforcing contracts (0-100)
57.9
Time (days)
581
Cost (% of claim value)
27.0
Quality of judicial processes index (0-18)
7.5
(rank)
Resolving Insolvency
163
Score of resolving insolvency (0-100)
22.4
Recovery rate (cents on the dollar)
18.4
Time (years)
3.0
Cost (% of estate)
28.5
Outcome (0 as piecemeal sale and 1 as going
concern)
0
Strength of insolvency framework index (0-16)
4.0
Guyana
Doing Business
2020
Page 4
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies,
uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
Doing Business
The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally start and formally operate a company
(number)
Preregistration (for example, name verification or reservation,
notarization)
•
Registration in the economy’s largest business city
•
Postregistration (for example, social security registration,
company seal)
•
Obtaining approval from spouse to start a business or to leave
the home to register the company
•
Obtaining any gender specific document for company
registration and operation or national identification card
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day (2 procedures cannot
start on the same day)
•
Procedures fully completed online are recorded as ½ day
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
No professional fees unless services required by law or
commonly used in practice
•
Paid-in minimum capital (% of income per capita)
•
Funds deposited in a bank or with third party before registration
or up to 3 months after incorporation
Case study assumptions
To make the data comparable across economies, several assumptions about the business and the
procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
The business:
-Is a limited liability company (or its legal equivalent). If there is more than one type of limited
liability company in the economy, the limited liability form most common among domestic firms is
chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
-Performs general industrial or commercial activities such as the production or sale to the public of
goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
polluting production processes.
-Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
company shares, two owners have 20% of shares each, and two owners have 15% of shares
each.
-Is managed by one local director.
-Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
-Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
-Leases the commercial plant or offices and is not a proprietor of real estate.
-Has an annual lease for the office space equivalent to one income per capita.
-Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
The owners:
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
is no legal age of majority, they are assumed to be 30 years old.
-Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Guyana
Doing Business
2020
Page 5
Starting a Business - Guyana
Figure – Starting a Business in Guyana – Score
Procedures
64.7
Time
82.4
Cost
95.3
Paid-in min. capital
100.0
Figure – Starting a Business in Guyana and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
97.4: Jamaica (Rank: 6)
91.2: Puerto Rico (Rank: 59)
85.6: Guyana (Rank: 111)
85.4: Dominican Republic (Rank: 112)
79.6: Regional Average (Latin America & Caribbean)
36.4: Haiti (Rank: 189)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Standardized Company
Legal form
Private Limited Liability Company
Paid-in minimum capital requirement
No minimum
City Covered
Georgetown
Indicator
Best Regulatory
Performance
Procedure – Men (number)
7
8.1
4.9
1 (2 Economies)
Time – Men (days)
18
28.8
9.2
0.5 (New Zealand)
Cost – Men (% of income per capita)
9.4
31.4
3.0
0.0 (2 Economies)
Procedure – Women (number)
7
8.1
4.9
1 (2 Economies)
Time – Women (days)
18
28.8
9.2
0.5 (New Zealand)
Cost – Women (% of income per capita)
9.4
31.4
3.0
0.0 (2 Economies)
Paid-in min. capital (% of income per capita)
0.0
0.4
7.6
0.0 (120 Economies)
Guyana
Doing Business
2020
Page 6
Figure – Starting a Business in Guyana – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 4 * 5 * 6 * 7
0
2
4
6
8
10
12
14
16
18
Time (days)
0
1
2
3
4
5
6
7
8
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Guyana
Doing Business
2020
Page 7
Details – Starting a Business in Guyana – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Search for company name and reserve proposed name
: Companies Registry
Agency
Searching and reserving the proposed company name can be done on the same day.
1 day
GYD 175 (name search)
GYD 800 (reservation)
2
Obtain declaration of compliance
: Attorney at Law
Agency
The exception of the declaration of compliance must be signed by an attorney.
The declaration states that, to best of the declarer’s knowledge and belief, no signatory to the
company’s articles of incorporation is a person described in Section 4(2) of the Companies Act
(which states that persons under 18, of unsound mind, or with undischarged bankruptcies cannot
form or join in the formation of a company) and that all the requirements of the Companies Act
pertaining to the matters precedent to the registration of the company and incidental thereto have
been complied with. Section 4(3) states that if such a declaration is filed, it shall be conclusive of
the facts stated in it.
2 days
GYD 15,000
3
Register company with Registrar of Companies
: Registrar of Companies
Agency
The Registrar of Companies announces the issuance of the certificate of incorporation in the
Official Gazette, according to Section 479 of the Companies Act (although this is not a
precondition to registration).
To register with the Registrar, the company must provide the following documents:
- Declaration of compliance.
- Articles of incorporation.
- Notice and consent of directors.
- Notice and consent of secretary.
- Notice of registered office.
Since July 2008 fees and other charges to register company with Registrar of Companies are as
follows:
- Flat fee for certificate of incorporation: GYD 60,000.
- Fees for filing and certifying copies of notices (listed above) and declaration of compliance: GYD
13,000.
If the company chooses to file it with a practitioner, attorneys will charge approx. GYD$150,000
plus VAT for handling a company incorporation in addition to the registration fee.
7 days
GYD 60,000 (fixed
registration fee) + GYD
13,000 (fees for filing and
certifying copies of
documents)
4
File for tax identification number (TIN) with the Revenue Authority
: Guyana Revenue Authority
Agency
Since January 2008 the TIN has replaced the PAYE number, corporate income tax number, VAT
number and customs import number. In order to apply for the TIN, the following need to be
submitted:
- A copy of the Certificate of Incorporation
- A copy of two (2) Directors' valid identification
- A completed Company TIN Application Form.
1 day
no charge
5
Register for VAT
: Guyana Revenue Authority
Agency
Since January 1, 2007, the Value Added Tax (VAT) Act 2005 has been implemented in place of the
Consumption Tax Act. A separate department of the Guyana Revenue Authority has been
established to administer the Act. Applications should be made within 15 days of the start of
operations, and a certificate should be issued within 10 days after the application.
On February 01, 2017 the Value-Added Tax (Amendment) Regulations came into operation and
the VAT rate was reduced from 16% to 14%. Additionally, the amendment provided for an increase
in the VAT threshold from $10,000,000 to $15,000,000 annually. This new measure made it
mandatory for businesses to register for VAT if their annual sales are equivalent to or exceeds the
threshold of fifteen million dollars ($15,000,000).
7 days on average
(simultaneous with
previous procedure)
no charge
Guyana
Doing Business
2020
Page 8
Takes place simultaneously with previous procedure.
6
Register for the Social Security
: National Insurance Scheme
Agency
Register with the social security office and obtain NIS employer number. The National Insurance
Scheme extends Social Insurance Coverage on a compulsory basis, to all persons between the
ages of sixteen (16) and sixty- (60) years who are engaged in Insurable Employment. Coverage is
also extended on a voluntary basis, to persons who cease such employment before reaching age
sixty- (60) years, until the attainment thereof. Employed Persons outside this age range who are in
Insurable Employment are also covered, but for Industrial Benefits only. However, Self-employed
Contributors are not covered for Industrial Benefits.
Both the Employer and Employee pay Contributions into the Scheme based on a 'Payroll System'.
The total Contribution for Employed Contributors is 14% of the actual Wage / Salary paid to the
Employee. This is derived from a 5.6% deduction from the Employee’s pay, and the remaining
8.4% paid by the Employer on behalf of the Employee. The actual wage / salary is, at present,
subjected to a ceiling of $220,000.00 per month or $50,769.00 per week for National Insurance
purposes.
Self-employed Persons contribute 12.5% of their declared Income as Contributions, while
Voluntary Contributors pay 9.3% of their Insurable Earnings as determined from the last two years
of their employment.
In order to apply, the following must be submitted:
- Certificate of Business Registration
- ID card.
7 days (simultaneous
with previous procedure)
no charge
7
Make a seal
: Commercial manufacturer of seals
Agency
The fee to make a company seal depends on whether an embossed or rubber seal is selected.
Most companies use a rubber stamp. Embossed seals are now currently made in Guyana and
delivered in a few days. These seals can cost about $30,000.
2 days on average
(simultaneous with
previous procedure)
GYD 2,000
Guyana
Doing Business
2020
Page 9
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Procedures to legally build a warehouse (number)
Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
•
Submitting all required notifications and receiving all necessary
inspections
•
Obtaining utility connections for water and sewerage
•
Registering and selling the warehouse after its completion
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Building quality control index (0-15)
Quality of building regulations (0-2)
•
Quality control before construction (0-1)
•
Quality control during construction (0-3)
•
Quality control after construction (0-3)
•
Liability and insurance regimes (0-2)
•
Professional certifications (0-4)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
The construction company (BuildCo):
- Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
business city. For 11 economies the data are also collected for the second largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
completion.
The warehouse:
- Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a licensed architect. If
preparation of the plans requires such steps as obtaining further documentation or getting prior
approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
requirements).
The water and sewerage connections:
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
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 flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Guyana
Doing Business
2020
Page 10
Dealing with Construction Permits - Guyana
Figure – Dealing with Construction Permits in Guyana – Score
Procedures
48.0
Time
47.6
Cost
87.9
Building quality control index
26.7
Figure – Dealing with Construction Permits in Guyana and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
71.9: Jamaica (Rank: 70)
70.7: Dominican Republic (Rank: 80)
63.2: Regional Average (Latin America & Caribbean)
59.6: Puerto Rico (Rank: 143)
52.5: Guyana (Rank: 167)
44.2: Haiti (Rank: 179)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Standardized Warehouse
Estimated value of warehouse
GYD 48,234,540.90
City Covered
Georgetown
Indicator
Best Regulatory
Performance
Procedures (number)
18
15.5
12.7
None in 2018/19
Time (days)
208
191.2
152.3
None in 2018/19
Cost (% of warehouse value)
2.4
3.6
1.5
None in 2018/19
Building quality control index (0-15)
4.0
9.0
11.6
15.0 (6 Economies)
Guyana
Doing Business
2020
Page 11
Figure – Dealing with Construction Permits in Guyana – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 * 2 3 4 * 5 * 6 * 7 8 9 10 11 12 13 14 15 * 16 * 17 * 18
0
50
100
150
200
Time (days)
0
0.2
0.4
0.6
0.8
1
1.2
Cost (% of warehouse value)
Time (days) Cost (% of warehouse value)
Guyana
Doing Business
2020
Page 12
Figure – Dealing with Construction Permits in Guyana and comparator economies – Measure of Quality
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
2
4
6
8
10
12
14
Index score
4.0
13.0
5.0
12.0 12.0
9.0
Details – Dealing with Construction Permits in Guyana – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Request and obtain a Soil Test
: Private laboratory
Agency
Based on Chapter 4 of the Guyana Standard Code of Practice for Buildings – Part 13:
Foundations for excavations GCP 9-13:2005, a soil test is required for the foundation of a
warehouse.
20 days
USD 1,000
2
Obtain a topographical map
: Private Engineer
Agency
Although a topographical study is not required by law it is performed in practice as a technical
requirement to have proper foundations.
15 days
USD 1,100
3
Request and obtain approval of the water and the septic plans
: Guyana Water Inc
Agency
According to Article 3.11.1, BuildCo must have the septic plans approved by the Guyana Water
Inc, which is obtained within two weeks with follow-Up.
14 days
no charge
4
Obtain building permit from Mayor and City Council
: Mayor and City Council
Agency
The Mayor and the City Council have the authority to issue the building permit. Three copies of
the plans must be submitted to the Mayor and City Council to begin the application process. The
copies are then forwarded to the Central Housing and Planning Authority and to the Public Health
Department. However, in practice, it is common for the applicant to contact the Central Housing
and Planning Authority separately. In fact, if the applicant does not follow up with both agencies,
the process can take longer than 3 months.
90 days
GYD 25,000
5
Obtain planning permit from Central Housing and Planning Authority
: Central Housing and Planning Authority
Agency
The Central Housing and Planning Authority revises the plans and forwards them to the Fire
Department and the Environmental Protection Agency. When the plans come back from both
agencies, the Board of the Central Housing and Planning Authority approves and issues the
planning permit. Follow-up is required with the Fire Department.
90 days
GYD 30,000
6
Follow up with Fire Department on building permit
: Fire Department
Agency
Because the Fire Department is not part of the Central Housing and Planning Authority, follow-up
is necessary to allow the Fire Department to make proposals or changes to the original plan.
90 days
no charge
7
Request partial project clearance from Environmental Protection Agency (EPA)
: Environmental Protection Agency (EPA)
Agency
A complete project clearance is not needed for the case study. However, it is common practice for
BuildCo to submit the required documents to the Environmental Protection Agency (EPA) for the
complete project clearance. After an examination the agency could rule that the project "will not
significantly affect the environment." This process usually takes 5 days and there is no charge
(also see Environmental Protection Act section 11 (2)).
5 days
no charge
8
Receive setting-out inspection
: Central Housing and Planning Authority
Agency
According to the Guyana Code Practice - Building Regulations, BuildCo must submit form 1A to
request the inspection for the setting-out. The submission must be made 2 days prior the
inspection and re-confirm 1 day before the inspection.
1 day
no charge
9
Request and receive excavation and foundation inspection
: Central Housing and Planning Authority
Agency
BuildCo must submit Form 1B to request this inspection. This request must be made 2 days prior
to the inspection and reconfirmed 24 hours prior to the inspection.
1 day
no charge
10
Request and receive ground floor slab inspection
: Central Housing and Planning Authority
Agency
BuildCo submits Form 1C to request this inspection 2 days prior and reconfirms it 24 hours before
it takes place.
1 day
no charge
Guyana
Doing Business
2020
Page 13
Takes place simultaneously with previous procedure.
11
Request and receive plumbing and electrical roughing-in inspection
: Central Housing and Planning Authority
Agency
BuildCo submits Form 1D to request this information 48 hours prior and reconfirms it 24 hours
before it takes place.
1 day
no charge
12
Request and receive walls, columns and beams inspection
: Central Housing and Planning Authority
Agency
Buildco completes and submits Form 1 E 48 hours prior to the inspection and must reconfirm 24
hours before the inspection takes place.
1 day
no charge
13
Request and receive the roof structure inspection
: Central Housing and Planning Authority
Agency
BuildCo submits form 1F to request this inspection
1 day
no charge
14
Receive inspection and obtain approval upon completion of project from Fire Department
: Fire Department
Agency
Once the series of phase inspections are finalized, BuildCo. can receive a final inspection from the
Fire Department.
60 days
no charge
15
Request and obtain the Occupancy Certificate
: Central Housing and Planning Authority
Agency
According to Article 10 of the Guyana Code of practice - Building regulations, BuildCo must sign
and issue the builder’s certificate attesting that he has carried out the construction in compliance
with the approved plans and the terms of the building permit. This form will be used by the Central
Housing and Planning Authority to issue the occupancy permit.
There will be no final inspection by the Central Housing and Planning Authority before issuing the
occupancy permit, unless there are doubts that the building is not in compliance.
14 days
no charge
16
Receive inspection prior to the installation of the septic tank and awaits approval
: Guyana Water Inc.
Agency
In periurban Georgetown, there is no access to sewerage. A construction such as the Doing
Business case study warehouse would use a septic tank, which can be built by BuildCo.
employees.
14 days
GYD 150,000
17
Obtain water connection from Guyana Water Inc.
: Guyana Water Inc.
Agency
Upon obtaining for the Occupancy Certificate, BuildCo. can receive the water connection, which
runs in parallel with the construction of the septic tank.
14 days
GYD 40,000
18
Build septic tank
: Private firm
Agency
10 days
GYD 500,000
Guyana
Doing Business
2020
Page 14
Details – Dealing with Construction Permits in Guyana – Measure of Quality
Answer
Score
Building quality control index (0-15)
4.0
Quality of building regulations index (0-2)
1.0
How accessible are building laws and regulations in your economy? (0-1)
Available online; Free
of charge.
1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any
accessible website, brochure or pamphlet? (0-1)
List of required
documents; Fees to
be paid.
0.0
Quality control before construction index (0-1)
0.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing
building regulations? (0-1)
By law, there is no
need to verify plans
compliance; Civil
servant reviews
plans.
0.0
Quality control during construction index (0-3)
1.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2)
Inspections at various
phases.
1.0
Do legally mandated inspections occur in practice during construction? (0-1)
Mandatory
inspections are not
always done in
practice during
construction.
0.0
Quality control after construction index (0-3)
2.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved
plans and regulations? (0-2)
Yes, final inspection
is done by
government agency.
2.0
Do legally mandated final inspections occur in practice? (0-1)
Final inspection does
not always occur in
practice; Final
inspection occurs
most of the time.
0.0
Liability and insurance regimes index (0-2)
0.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use
(Latent Defect Liability or Decennial Liability)? (0-1)
No party is held liable
under the law.
0.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)
No party is required
by law to obtain
insurance .
0.0
Professional certifications index (0-4)
0.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans
or drawings are in compliance with existing building regulations? (0-2)
There are no specific
requirements.
0.0
What are the qualification requirements for the professional who supervises the construction on the ground? (0-
2)
There are no specific
requirements.
0.0
Guyana
Doing Business
2020
Page 15
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to obtain an electricity connection (number)
Submitting all relevant documents and obtaining all necessary
clearances and permits
•
Completing all required notifications and receiving all necessary
inspections
•
Obtaining external installation works and possibly purchasing
material for these works
•
Concluding any necessary supply contract and obtaining final
supply
•
Time required to complete each procedure (calendar days)
Is at least 1 calendar day
•
Each procedure starts on a separate day
•
Does not include time spent gathering information
•
Reflects the time spent in practice, with little follow-up and no
prior contact with officials
•
Cost required to complete each procedure (% of income per
capita)
Official costs only, no bribes
•
Value added tax excluded
•
The reliability of supply and transparency of tariffs index (0-8)
Duration and frequency of power outages (0–3)
•
Tools to monitor power outages (0–1)
•
Tools to restore power supply (0–1)
•
Regulatory monitoring of utilities’ performance (0–1)
•
Financial deterrents limiting outages (0–1)
•
Transparency and accessibility of tariffs (0–1)
•
Price of electricity (cents per kilowatt-hour)*
Price based on monthly bill for commercial warehouse in case
study
•
*Note:
measures the price of electricity, but it is
not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Doing Business
Case study assumptions
To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
The electricity connection:
- 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, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
network and is either overhead or underground, whichever is more common in the area where the
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
owners’ private property because the warehouse has access to a road.
- 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 panel or switchboard and the meter base.
The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
(assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
Guyana
Doing Business
2020
Page 16
Getting Electricity - Guyana
Figure – Getting Electricity in Guyana – Score
Procedures
16.7
Time
72.2
Cost
94.8
Reliability of supply and transparency of tariff index
0.0
Figure – Getting Electricity in Guyana and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
73.5: Puerto Rico (Rank: 92)
71.7: Regional Average (Latin America & Caribbean)
68.0: Dominican Republic (Rank: 116)
65.0: Jamaica (Rank: 120)
57.2: Haiti (Rank: 147)
45.9: Guyana (Rank: 170)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Guyana – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 4 5 * 6 7 8
0
10
20
30
40
50
60
70
80
Time (days)
0
50
100
150
200
250
300
Cost (% of income per capita)
Time (days) Cost (% of income per capita)
Standardized Connection
Name of utility
Guyana Power and Light Inc. (GPL)
Price of electricity (US cents per kWh)
32.8
City Covered
Georgetown
Indicator
Best Regulatory
Performance
Procedures (number)
8
5.5
4.4
3 (28 Economies)
Time (days)
82
66.8
74.8
18 (3 Economies)
Cost (% of income per capita)
423.8
407.2
61.0
0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8)
0
4.4
7.4
8 (26 Economies)
Guyana
Doing Business
2020
Page 17
reflected here, see the summary below.
Figure – Getting Electricity in Guyana and comparator economies – Measure of Quality
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
1
2
3
4
5
6
Index score
0
5
0
5
3
4.4
Guyana
Doing Business
2020
Page 18
Details – Getting Electricity in Guyana – Procedure, Time and Cost
Takes place simultaneously with previous procedure.
No.
Procedures
Time to Complete
Associated Costs
1
Obtain compliance certificate for internal wiring
: Ministry of Public Infrastructure
Agency
The customer has to obtain an internal wiring certificate from the Electrical Inspectorate Division
within the Ministry of Public Infrastructure.
4 calendar days
GYD 50,000
2
Submit application at the Commercial Office of Guyana Power and Light Inc. (GPL) and pay
security deposit
: Guyana Power and Light Inc. (GPL)
Agency
The customer submits the application for connection at the commercial office of the utility and
pays the security deposit. The following documents need to be attached: Proof of ownership, valid
form of identification and certificate of inspection of internal wiring.
1 calendar day
GYD 1,391,439.48
3
Receive external site inspection by GPL
: Guyana Power and Light Inc. (GPL)
Agency
An initial investigation is conducted to establish the availability of network infrastructure.
1 calendar day
GYD 0
4
Receive second external inspection and estimate by GPL
: Guyana Power and Light Inc. (GPL)
Agency
A second investigation is conducted if capital works are required, after which the fee estimate is
provided.
12 calendar days
GYD 0
5
Submit application for electricity supply to GPL and receive acceptance of offer form
: Guyana Power and Light Inc. (GPL)
Agency
A quotation is issued with an acceptance of offer form (AOF). The AOF is a document the client
signs agreeing to the terms of supply.
21 calendar days
GYD 0
6
Purchase distribution transformer and low-voltage lines
: Electrical Contractor
Agency
The customer or his/her contractor purchases the distribution transformer and takes the
transformer to the GPL Transformer workshop for testing. The customer/his electrical contractor
buys the LV lines. The utility company usually plants the pole with the transformer & H/V lines on
the side of the road where the customer's building is located. The secondary cable runs down the
pole in the customer's compound.
6 calendar days
GYD 2,611,992
7
Have transformer tested by GPL
: Guyana Power and Light Inc. (GPL)
Agency
The customer or his/her contractor takes the transformer to the GPL Transformer workshop for
testing. The Manufacturer specification document has to be submitted with the transformer. GPL
verifies that the transfomer complies with the norms and standards of GPL
1 calendar day
GYD 35,000
8
Receive external works and meter installation by GPL
: Guyana Power and Light Inc. (GPL)
Agency
All design for the external connection is done by the utility. The physical works of installing the
transformer and the primary lines are the responsibility of the utility. The meter is installed by the
utility at the same time of the connection works.
42 calendar days
GYD 0
Guyana
Doing Business
2020
Page 19
Details – Getting Electricity in Guyana – Measure of Quality
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Answer
Reliability of supply and transparency of tariff index (0-8)
0
Total duration and frequency of outages per customer a year (0-3)
0
System average interruption duration index (SAIDI)
113.0
System average interruption frequency index (SAIFI)
106.0
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI
5.0
Mechanisms for monitoring outages (0-1)
1
Does the distribution utility use automated tools to monitor outages?
Yes
Mechanisms for restoring service (0-1)
0
Does the distribution utility use automated tools to restore service?
No
Regulatory monitoring (0-1)
1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply?
Yes
Financial deterrents aimed at limiting outages (0-1)
1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap?
Yes
Communication of tariffs and tariff changes (0-1)
1
Are effective tariffs available online?
Yes
Link to the website, if available online
ttp://www.gplinc.net/under
stand_bill
Are customers notified of a change in tariff ahead of the billing cycle?
Yes
Guyana
Doing Business
2020
Page 20
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Procedures to legally transfer title on immovable property
(number)
Preregistration procedures (for example, checking for liens,
notarizing sales agreement, paying property transfer taxes)
•
Registration procedures in the economy's largest business city.
•
Postregistration procedures (for example, filling title with
municipality)
•
Time required to complete each procedure (calendar days)
Does not include time spent gathering information
•
Each procedure starts on a separate day - though procedures
that can be fully completed online are an exception to this rule
•
Procedure is considered completed once final document is
received
•
No prior contact with officials
•
Cost required to complete each procedure (% of property
value)
Official costs only (such as administrative fees, duties and
taxes).
•
Value Added Tax, Capital Gains Tax and illicit payments are
excluded
•
Quality of land administration index (0-30)
Reliability of infrastructure index (0-8)
•
Transparency of information index (0–6)
•
Geographic coverage index (0–8)
•
Land dispute resolution index (0–8)
•
Equal access to property rights index (-2–0)
•
Case study assumptions
To make the data comparable across economies, several assumptions about the parties to the
transaction, the property and the procedures are used.
The parties (buyer and seller):
- Are limited liability companies (or the legal equivalent).
- Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
area of the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- Are 100% domestically and privately owned.
- Perform general commercial activities.
The property (fully owned by the seller):
- Has a value of 50 times income per capita, which equals the sale price.
- Is fully owned by the seller.
- Has no mortgages attached and has been under the same ownership for the past 10 years.
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
- Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (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 good condition, has no heating system and complies with all safety standards,
building codes and legal requirements. The property, consisting of land and building, will be
transferred in its entirety.
- Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
industrial plants, waste storage or certain types of agricultural activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Guyana
Doing Business
2020
Page 21
Registering Property - Guyana
Figure – Registering Property in Guyana – Score
Procedures
50.0
Time
78.5
Cost
69.3
Quality of the land administration index
25.0
Figure – Registering Property in Guyana and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
67.2: Dominican Republic (Rank: 74)
65.3: Jamaica (Rank: 85)
55.7: Guyana (Rank: 128)
54.9: Regional Average (Latin America & Caribbean)
46.3: Puerto Rico (Rank: 161)
30.4: Haiti (Rank: 182)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
the scores for each of the component indicators.
Indicator
Best Regulatory
Performance
Procedures (number)
7
7.4
4.7
1 (5 Economies)
Time (days)
46
63.7
23.6
1 (2 Economies)
Cost (% of property value)
4.6
5.9
4.2
0.0 (Saudi Arabia)
Quality of the land administration index (0-30)
7.5
12.0
23.2
None in 2018/19
Guyana
Doing Business
2020
Page 22
Figure – Registering Property in Guyana – Procedure, Time and Cost
This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
*
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the
website (
). For details on the procedures
reflected here, see the summary below.
Doing Business
http://doingbusiness.org/en/methodology
Procedures (number)
1 2 3 * 4 5 6 7
0
5
10
15
20
25
30
35
40
45
Time (days)
0
0.5
1
1.5
2
2.5
3
Cost (% of property value)
Time (days) Cost (% of property value)
Guyana
Doing Business
2020
Page 23
Figure – Registering Property in Guyana and comparator economies – Measure of Quality
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
2
4
6
8
10
12
14
16
Index score
7.5
14.5
2.5
14.0
13.5
12.0
Details – Registering Property in Guyana – Procedure, Time and Cost
No.
Procedures
Time to Complete
Associated Costs
1
Lawyer executes sale-purchase agreement
: Lawyer
Agency
While not mandatory, it is common practice for a lawyer to advise the parties on the transfer
process, in addition to drafting and executing the sale-purchase agreement. The law states a fee
of 0.8% for both parties but in practice lawyers round it up to 1% and most of them charge 1% to
each of the two parties.
1 day
GYD 964,690.82; (2%
property value (1% for
seller+1% for buyer))
2
Obtain official valuation on the property
: Chief Valuation Office
Agency
Parties call the Chief Valuer Office to make an appointment. The valuator comes either the same
day or the following day to make an assessment and presents the parties with a document
attesting to the amount. It is important to note that the valuation may be completed by the state
valuation office or by a private valuator (in which case the cost would be higher). Although there is
no official cost attached to the valuation by a state valuation officer, it will be necessary to pay the
officer transportation fees - approximately 5,000 GYD.
5 days
GYD 48,234.54; (0.1% of
property value)
3
Obtain a Certificate of Compliance from the Inland Revenue Department
: Internal Revenue Department of the Guyana Revenue Authority
Agency
A Certificate of Compliance is obtained at the Inland Revenue Department certifying that all taxes
in relation to the parties have been paid, or that they pay any outstanding taxes at that time. In
case any capital gains arise, a 20% tax on capital gains will be applied to the transaction.
• A copy of the transport/lease/title deed;
• An agreement of sale and a current valuation for the property;
• Where the property was acquired prior to 1.1.1991, the valuation as at 1.1.1991 as well as
current valuation;
• A copy of the receipt of agent/commission fees or legal fees paid;
• A National Identification Card or valid Passport;
• A Power of Attorney, if acting on behalf of someone;
• Documentary evidence of capital improvement done after acquisition or 1.1.1991 value of asset
and other expenses incurred in the transaction.
In addition to the documents listed above, the taxpayer must submit to the Guyana Revenue
Authority (GRA) his/her Taxpayer Identification Number (TIN), his/her tax returns (including the
return for the preceding year of income) and a completed application form provided by the GRA.
After the documents listed above are submitted to the GRA to the satisfaction of the Authority, the
Certificate of Compliance can be issued.
5 days
no charge
4
Obtain a Certificate of Rates and Taxes from the relevant local tax authority
: Local Tax Authority - City council
Agency
A Certificate of Rates and Taxes is obtained from the relevant local tax authority certifying that all
rates and taxes in relation to the property have been paid in full. The certificate is necessary in
order to register.
2 days
GYD 1,500
Guyana
Doing Business
2020
Page 24
Takes place simultaneously with previous procedure.
5
Lawyer lodges the transfer instrument with the Registrar of Lands
: Registrar of Lands
Agency
The required documentation is lodged with the Registrar of Lands. Taxes and registration fees are
calculated. Lodging the documents with the registry takes one day but the time the lawyer needs
to prepare these documents brings it up to 3-4 days. The documentation shall include: (i) Transfer
instrument signed by an attorney (obtained in Procedure 1); (ii) “Affidavit of the vendor” in which
vendor confirms his ownership and that he sold the land for this amount. This is signed and sworn
before the Commission of Oaths, (iii) “Affidavit of the purchaser” in which purchaser confirms he
bought the land for this amount. This is also signed and sworn before the Commission of Oaths;
(iv) Compliance document from the Inland Revenue Authority (obtained in Procedure 3), (v)
"Rates and Taxes Certificate", which is the certificate of compliance with local taxes (obtained in
Procedure 4), and (vi) valuation of the land (obtained in Procedure No. 2).
The amount to be paid as filing fees and stamp duty at the Deed’s Registry is 2.5% of the value or
the purchase price of the property to be transferred. This amount is stipulated by statute so that
the parties can pay immediately upon the filing of the relevant documents. It is a common practice
for the staff at the Deed’s Registry to calculate the fees in your presence to verify the amount to be
paid. There is no document required to pay the stamp duty and filing fees. The fees can be paid
when the relevant documents are being filed since it is a fixed percentage.
4 days
GYD 1,205,863.52; (2%
property value (stamp
duty) + 0.5% of property
value (registration fee))
6
Search and typing of Certificate of Title
: Registrar of Lands
Agency
After the documents are filed and filing fees paid, the matter goes through a general query stage
where the staff of the Land Registry checks to ensure that the property is not encumbered,
affidavits are in order etc.
Once the documents are in order the matter is then sent to be advertised in the Official Gazette for
two (2) consecutive weeks and if there is no opposition raised it is then passed before the
Registrar of Deeds or the Deputy Registrar of Deeds.
The final deed can be uplifted at the Deed’s Registry approximately one (1) week after it is
passed.
30 days
Already paid in Procedure
5
7
Seller must inform the City Council of the change of ownership
: City Council
Agency
According to Section 211 of the Municipal and District Council Act, Chapter 28:01, the new owner
must inform the City Council of the change of ownership and submit a copy of the deed within
three months after the deed is registered.
1 day
no charge
Guyana
Doing Business
2020
Page 25
Details – Registering Property in Guyana – Measure of Quality
Answer
Score
Quality of the land administration index (0-30)
7.5
Reliability of infrastructure index (0-8)
1.0
Type of land registration system in the economy:
Dual system (Title &
Deed)
What is the institution in charge of immovable property registration?
There are two
registrations systems
and institutions in
Guyana: (i) Land
Registry (system
taken into account in
this section) (ii)
Deeds Registry
In what format land title certificates are kept at the immovable property registry of the largest business city of the
economy —in a paper format or in a computerized format (scanned or fully digital)?
Paper
0.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages,
restrictions and the like)?
No
0.0
Institution in charge of the plans showing legal boundaries in the largest business city:
Guyana Lands &
Surveys Commission
(GL&SC) (Land
Information and
Mapping Division)
In what format cadastral plans are kept at the mapping agency of the largest business city of the economy—in a
paper format or in a computerized format (scanned or fully digital)?
Paper
0.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information
(geographic information system)?
No
0.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency
kept in a single database, in different but linked databases or in separate databases?
Separate databases
0.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification
number for properties?
Yes
1.0
Transparency of information index (0–6)
3.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration
in the largest business city?
Anyone who pays the
official fee
1.0
Is the list of documents that are required to complete any type of property transaction made publicly available–
and if so, how?
Yes, online
0.5
Link for online access:
http://www.business.g
ov.gy/doing-
business/3-how-to-
get-property/
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property
registration in the largest business city made publicly available–and if so, how?
Yes, online
0.5
Link for online access:
http://www.business.g
ov.gy/wp-
content/uploads/2016
/05/Attachment-
4.1.pdf
Does the agency in charge of immovable property registration agency formally commit to deliver a legally
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?
No
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency
in charge of immovable property registration?
No
0.0
Contact information:
Guyana
Doing Business
2020
Page 26
Are there publicly available official statistics tracking the number of transactions at the immovable property
registration agency?
No
0.0
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city?
Anyone who pays the
official fee
0.5
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?
Yes, online
0.5
Link for online access:
https://www.business.
gov.gy/wp-
content/uploads/2016
/05/Attachment-
5.1.pdf
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and
if so, how does it communicate the service standard?
No
0.0
Link for online access:
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the
cadastral or mapping agency?
No
0.0
Contact information:
Geographic coverage index (0–8)
0.0
Are all privately held land plots in the largest business city formally registered at the immovable property
registry?
No
0.0
Are all privately held land plots in the economy formally registered at the immovable property registry?
No
0.0
Are all privately held land plots in the largest business city mapped?
No
0.0
Are all privately held land plots in the economy mapped?
No
0.0
Land dispute resolution index (0–8)
3.5
Does the law require that all property sale transactions be registered at the immovable property registry to make
them opposable to third parties?
Yes
1.5
Legal basis:
Land Registry Act,
Cap 5:02
Is the system of immovable property registration subject to a state or private guarantee?
Yes
0.5
Type of guarantee:
State guarantee
Legal basis:
Section 128 of the
Land Registry Act,
Cap 5:02
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Yes
0.5
Legal basis:
See Section 127 and
128 of the Land
Registry Act, Cap
5:02
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g.,
checking the compliance of contracts with requirements of the law)?
Yes
0.5
If yes, who is responsible for checking the legality of the documents?
Registrar; Lawyer;
Does the legal system require verification of the identity of the parties to a property transaction?
Yes
0.5
If yes, who is responsible for verifying the identity of the parties?
Registrar; Lawyer;
Is there a national database to verify the accuracy of government issued identity documents?
No
0.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located
in the largest business city?
The High Court
Guyana
Doing Business
2020
Page 27
How long does it take on average to obtain a decision from the first-instance court for such a case (without
appeal)?
More than 3 years
0.0
Are there publicly available statistics on the number of land disputes at the economy level in the first instance
court?
No
0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)
0.0
Do unmarried men and unmarried women have equal ownership rights to property?
Yes
Do married men and married women have equal ownership rights to property?
Yes
0.0
Guyana
Doing Business
2020
Page 28
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019.
.
See the methodology for more information
What the indicators measure
Strength of legal rights index (0–12)
Rights of borrowers and lenders through collateral laws (0-10)
•
Protection of secured creditors’ rights through bankruptcy laws
(0-2)
•
Depth of credit information index (0–8)
Scope and accessibility of credit information distributed by
credit bureaus and credit registries (0-8)
•
Credit bureau coverage (% of adults)
Number of individuals and firms listed in largest credit bureau
as a percentage of adult population
•
Credit registry coverage (% of adults)
Number of individuals and firms listed in credit registry as a
percentage of adult population
•
Case study assumptions
assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
information index measures rules and practices affecting the coverage, scope and accessibility of
credit information available through a credit registry or a credit bureau. The strength of legal rights
index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
secured transactions system exists. Then two case scenarios, case A and case B, are used to
determine how a nonpossessory security interest is created, publicized and enforced according to
the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
secured lender, BizBank.
Doing Business
In some economies the legal framework for secured transactions will allow only case A or case B
(not both) to apply. Both cases examine the same set 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.
Guyana
Doing Business
2020
Page 29
Getting Credit - Guyana
Figure – Getting Credit in Guyana – Score
Score - Getting Credit
55.0
Figure – Getting Credit in Guyana and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
95.0: Puerto Rico (Rank: 4)
85.0: Jamaica (Rank: 15)
55.0: Guyana (Rank: 94)
52.0: Regional Average (Latin America & Caribbean)
45.0: Dominican Republic (Rank: 119)
35.0: Haiti (Rank: 144)
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Indicator
Best Regulatory
Performance
Strength of legal rights index (0-12)
3
5.3
6.1
12 (5 Economies)
Depth of credit information index (0-8)
8
5.1
6.8
8 (53 Economies)
Credit registry coverage (% of adults)
0.0
14.6
24.4
100.0 (2 Economies)
Credit bureau coverage (% of adults)
30.9
47.6
66.7
100.0 (14 Economies)
Guyana
Doing Business
2020
Page 30
Figure – Legal Rights in Guyana and comparator economies
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
2
4
6
8
10
12
14
Index Score
3
1
2
9
12
5.3
Guyana
Doing Business
2020
Page 31
Details – Legal Rights in Guyana
Strength of legal rights index (0-12)
3
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents
to security interests in movable assets exist in the economy?
No
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description
of collateral?
No
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of
collateral?
Yes
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the
original assets?
No
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties;
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Yes
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an
electronic database indexed by debtor's name?
No
Does a notice-based collateral registry exist in which all functional equivalents can be registered?
No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third
party?
No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?
No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?
No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
No
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Yes
Figure – Credit Information in Guyana and comparator economies
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
1
2
3
4
5
6
7
8
9
Index Score
8 8
5
8
7
5.1
Guyana
Doing Business
2020
Page 32
Details – Credit Information in Guyana
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.
Depth of credit information index (0-8)
Credit bureau
Credit 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 - distributed?
Yes
No
1
Are at least 2 years of historical data distributed? (Credit bureaus and registries
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Yes
No
1
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, through an online platform, a system-to-system connection or
both)?
Yes
No
1
Are bureau or registry credit scores offered as a value-added service to help
banks and financial institutions assess the creditworthiness of borrowers?
Yes
No
1
Total Score ("yes" to either public bureau or private registry)
8
Coverage
Credit bureau
Credit registry
Number of individuals
156,712
0
Number of firms
1,977
0
Total
158,689
0
Percentage of adult population
30.9
0.0
Guyana
Doing Business
2020
Page 33
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019.
.
See the methodology for more information
What the indicators measure
: Disclosure, review, and
approval requirements for related-party transactions
•
Extent of disclosure index (0–10)
: Ability of minority
shareholders to sue and hold interested directors liable for
prejudicial related-party transactions; Available legal
remedies (damages, disgorgement of profits, disqualification
from managerial position(s) for one year or more, rescission of
the transaction)
•
Extent of director liability index (0–10)
: Access to internal
corporate documents; Evidence obtainable during trial and
allocation of legal expenses
•
Ease of shareholder suits index (0–10)
Sum of
the extent of disclosure, extent of director liability and ease of
shareholder suits indices
•
Extent of conflict of interest regulation index (0-30):
: Shareholders’ rights
and role in major corporate decisions
•
Extent of shareholder rights index (0-6)
: Governance
safeguards protecting shareholders from undue board control
and entrenchment
•
Extent of ownership and control index (0-7)
: Corporate
transparency on ownership stakes, compensation, audits and
financial prospects
•
Extent of corporate transparency index (0-7)
: Sum
of the
extent of shareholders rights, extent of ownership and control
and extent of corporate transparency indices
•
Extent of shareholder governance index (0–20)
: Sum
of the extent of conflict of interest regulation and extent of
shareholder governance indices
•
Strength of minority investor protection index (0–50)
Case study assumptions
To make the data comparable across economies, a case study uses several assumptions about
the business and the transaction.
- Is a publicly traded corporation listed on the economy’s most important stock exchange.
- Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
Buyer where permitted, even if this is not specifically required by law.
- Has a supervisory board in economies with a two-tier board system on which Mr. James
appointed 60% of the shareholder-elected members.
- Has not adopted bylaws or articles of association that go beyond the minimum requirements.
Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
The business (Buyer):
- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
Buyer’s five-member board.
- Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
- Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
Buyer’s assets and is higher than the market value.
- The proposed transaction is part of the company’s principal activity and is not outside the
authority of the company.
- Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
made—that is, the transaction was not entered into fraudulently.
- The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
directors that approved the transaction.
The transaction involves the following details:
Guyana
Doing Business
2020
Page 34
Protecting Minority Investors - Guyana
Figure – Protecting Minority in Guyana – Score
Score - Protecting Minority Investors
56.0
Figure – Protecting Minority Investors in Guyana and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
62.0: Jamaica (Rank: 61)
56.0: Guyana (Rank: 88)
56.0: Puerto Rico (Rank: 88)
47.3: Regional Average (Latin America & Caribbean)
34.0: Dominican Republic (Rank: 143)
18.0: Haiti (Rank: 183)
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Stock exchange information
Stock exchange
Guyana Stock Exchange
Stock exchange URL
http://www.gasci.com
Listed firms with equity securities
12
City Covered
Georgetown
Indicator
Best Regulatory
Performance
Extent of disclosure index (0-10)
5.0
4.1
6.5
10 (13 Economies)
Extent of director liability index (0-10)
5.0
5.2
5.3
10 (3 Economies)
Ease of shareholder suits index (0-10)
8.0
6.7
7.3
10 (Djibouti)
Extent of shareholder rights index (0-6)
4.0
3.0
4.7
6 (19 Economies)
Extent of ownership and control index (0-7)
2.0
2.3
4.5
7 (9 Economies)
Extent of corporate transparency index (0-7)
4.0
2.3
5.7
7 (13 Economies)
Guyana
Doing Business
2020
Page 35
Figure – Protecting Minority Investors in Guyana and comparator economies – Measure of Quality
the Co-operative Republic of Guyana
Dominican Republic
Haiti
Jamaica
Puerto Rico
OECD high income
Latin America & Caribbean
0 5 10 15 20 25 30 35 40
Sub-Indicator Score
4 5 5 2 4 8
0 4 5 00 8
0 3 2 00 4
5 8 4 4 5 5
5 6 7 1 1 8
5.6 5.6 6.6 4.3 4.5 7.4
2.5 5.4 4.4 2.5 3.2 6.5
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
Guyana
Doing Business
2020
Page 36
Details – Protecting Minority Investors in Guyana – Measure of Quality
Answer
Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10)
5.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3)
Shareholders or
board of directors
including interested
parties
1.0
Must an external body review the terms of the transaction before it takes place? (0-1)
No
0.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2)
Full disclosure of all
material facts
2.0
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2)
Disclosure on the
transaction and on
the conflict of interest
2.0
Must Buyer immediately disclose the transaction to the public? (0-2)
No disclosure
obligation
0.0
Extent of director liability index (0-10)
5.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to
Buyer? (0-1)
Yes
1.0
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2)
Liable if negligent
1.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2)
Liable if negligent
1.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1)
Yes
1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1)
Yes
1.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1)
No
0.0
Can a court void the transaction upon a successful claim by shareholders? (0-2)
Only in case of fraud
or bad faith
0.0
Ease of shareholder suits index (0-10)
8.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents?
(0-1)
Yes
1.0
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3)
Any relevant
document
3.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1)
No
0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2)
Yes
2.0
Is the level of proof required for civil suits lower than that of criminal cases? (0-1)
Yes
1.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2)
Yes if successful
1.0
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6)
4.0
Does the sale of 51% of Buyer's assets require shareholder approval?
Yes
1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders?
Yes
1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares?
No
0.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares?
No
0.0
Do shareholders elect and dismiss the external auditor?
Yes
1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve?
Yes
1.0
Extent of ownership and control index (0-7)
2.0
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors?
No
0.0
Guyana
Doing Business
2020
Page 37
Must the board of directors include independent and nonexecutive board members?
No
0.0
Can shareholders remove members of the board of directors without cause before the end of their term?
Yes
1.0
Must the board of directors include a separate audit committee exclusively comprising board members?
No
0.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer?
Yes
1.0
Must Buyer pay declared dividends within a maximum period set by law?
No
0.0
Is a subsidiary prohibited from acquiring shares issued by its parent company?
No
0.0
Extent of corporate transparency index (0-7)
4.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%?
No
0.0
Must Buyer disclose information about board members’ primary employment and directorships in other
companies?
No
0.0
Must Buyer disclose the compensation of individual managers?
Yes
1.0
Must a detailed notice of general meeting be sent 21 days before the meeting?
No
0.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda?
Yes
1.0
Must Buyer's annual financial statements be audited by an external auditor?
Yes
1.0
Must Buyer disclose its audit reports to the public?
Yes
1.0
Guyana
Doing Business
2020
Page 38
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018).
See
the
methodology
for
more
information
.
What the indicators measure
Tax payments for a manufacturing company in 2018 (number
per year adjusted for electronic and joint filing and payment)
Total number of taxes and contributions paid or withheld,
including consumption taxes (value added tax, sales tax or
goods and service tax)
•
Method and frequency of filing and payment
•
Time required to comply with 3 major taxes (hours per year)
Collecting information, computing tax payable
•
Preparing separate tax accounting books, if required
•
Completing tax return, filing with agencies
•
Arranging payment or withholding
•
Total tax and contribution rate (% of commercial profits)
Profit or corporate income tax
•
Social contributions, labor taxes paid by employer
•
Property and property transfer taxes
•
Dividend, capital gains, financial transactions taxes
•
Waste collection, vehicle, road and other taxes
•
Postfiling Index
Time to comply with VAT refund (hours)
•
Time to obtain VAT refund (weeks)
•
Time to comply with a corporate income tax correction (hours)
•
Time to complete a corporate income tax correction (weeks)
•
Case study assumptions
Using a case scenario,
records taxes and mandatory contributions a medium size
company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
filing and payments, time taken to comply with tax laws, time taken to comply with the
requirements of postfiling processes and time waiting.
Doing Business
To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
ceramic flowerpots and sells them at retail.
Taxes and mandatory contributions are measured
at all levels of government.
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
VAT in June 2018.
All taxes and contributions recorded are paid in the
second year of operation (calendar year 2018).
The VAT refund process:
- An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
The corporate income tax audit process:
Guyana
Doing Business
2020
Page 39
Paying Taxes - Guyana
Figure – Paying Taxes in Guyana – Score
Payments
46.7
Time
68.0
Total tax and contribution rate
93.8
Postfiling index
54.2
Figure – Paying Taxes in Guyana and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
65.7: Guyana (Rank: 122)
64.9: Jamaica (Rank: 124)
60.5: Regional Average (Latin America & Caribbean)
57.6: Haiti (Rank: 149)
57.4: Dominican Republic (Rank: 150)
52.0: Puerto Rico (Rank: 163)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Indicator
Best Regulatory
Performance
Payments (number per year)
35
28.2
10.3
3 (2 Economies)
Time (hours per year)
256
317.1
158.8
49 (3 Economies)
Total tax and contribution rate (% of profit)
30.6
47.0
39.9
26.1 (33 Economies)
Postfiling index (0-100)
54.2
47.5
86.7
None in 2018/19
Guyana
Doing Business
2020
Page 40
Figure – Paying Taxes in Guyana and comparator economies – Measure of Quality
Guyana Dominican
Republic
Haiti Jamaica Puerto
Rico
Latin
America
&
Caribbean
0
10
20
30
40
50
60
Index score
54.2
10.7
48.2
19.7
13.8
47.5
Guyana
Doing Business
2020
Page 41
Details – Paying Taxes in Guyana
Tax or
mandatory
contribution
Payments
(number)
Notes on
Payments
Time (hours)
Statutory tax
rate
Tax base
Total tax and
contribution
rate (% of
profit)
Notes on TTCR
Corporate
income tax
5.0
41.0
27.5%
taxable profits
18.62
Employer paid -
Social security
contributions
12.0
48.0
8.4%
gross salaries
9.19
Property tax
central authority
1.0
0.5% and 0.75%
equity
1.39
Capital gains tax
1.0
20%
capital gains
1.01
Property tax local
authority
1.0
various rates
assessed
property value
0.29
Vehicle
registration tax
1.0
G$30,000
fixed fee
0.07
Value added tax
12.0
167.0
14%
value added
0.00
not included
Stamp duty
1.0
G$ 1 per G$
1,000
transaction value
0.00
Fuel tax
1.0
included into fuel
price
0.00
small amount
Employee paid -
Social security
contributions
0.0
jointly
5.2%
gross salaries
0.00
withheld
Totals
35
256
30.6
Guyana
Doing Business
2020
Page 42
Details – Paying Taxes in Guyana – Tax by Type
Taxes by type
Answer
Profit tax (% of profit)
19.6
Labor tax and contributions (% of profit)
9.2
Other taxes (% of profit)
1.7
Guyana
Doing Business
2020
Page 43
Details – Paying Taxes in Guyana – Measure of Quality
Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Notes:
Answer
Score
Postfiling index (0-100)
54.2
VAT refunds
Does VAT exist?
Yes
Does a VAT refund process exist per the case study?
Yes
Restrictions on VAT refund process
none
Percentage of cases exposed to a VAT audit (%)
25% - 49%
Is there a mandatory carry forward period?
Yes
Time to comply with VAT refund (hours)
20.0
60.0
Time to obtain VAT refund (weeks)
34.0
40.8
Corporate income tax audits
Does corporate income tax exist?
Yes
Percentage of cases exposed to a corporate income tax audit (%)
50% - 74%
Time to comply with a corporate income tax correction (hours)
30.5
46.8
Time to complete a corporate income tax correction (weeks)
9.8
69.4
Guyana
Doing Business
2020
Page 44
Trading across Borders
records
the
time
and
cost
associated
with
the
logistical
process
of
exporting
and
importing
goods.
measures
the
time
and
cost
(excluding
tariffs)
associated
with
three
sets
of
procedures—documentary
compliance,
border
compliance
and
domestic
transport—within
the
overall
process
of
exporting
or
importing
a
shipment
of
goods.
The
most
recent
round
of
data
collection
for
the
project
was
completed
in
May
2019.
.
Doing Business Doing Business
See
the
methodology
for
more
information
What the indicators measure
Documentary compliance
Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
origin economy
•
Obtaining, preparing and submitting documents required by
destination economy and any transit economies
•
Covers all documents required by law and in practice, including
electronic submissions of information
•
Border compliance
Customs clearance and inspections
•
Inspections by other agencies (if applied to more than 20% of
shipments)
•
Handling and inspections that take place at the economy’s port
or border
•
Domestic transport
Loading or unloading of the shipment at the warehouse or
port/border
•
Transport between warehouse and port/border
•
Traffic delays and road police checks while shipment is en
route
•
Case study assumptions
To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
Time:
Insurance cost and informal payments for which no receipt is issued are excluded from the
costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
Contributors are private sector experts in international trade logistics and are informed about
exchange rates.
Cost:
- For all 190 economies covered by
, it is assumed a shipment is in a warehouse in
the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
its natural import partner—the economy from which it imports the largest value (price times
quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
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 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.
Assumptions of the case study:
Doing Business
Guyana
Doing Business
2020
Page 45
Trading across Borders - Guyana
Figure – Trading across Borders in Guyana – Score
Time
to
export:
Border
compliance
55.3
Cost
to
export:
Border
compliance
55.9
Time
to
export:
Documentary
compliance
0.0
Cost
to
export:
Documentary
compliance
80.6
Time
to
import:
Border
compliance
70.3
Cost
to
import:
Border
compliance
77.9
Time
to
import:
Documentary
compliance
35.1
Cost
to
import:
Documentary
compliance
91.1
Figure – Trading across Borders in Guyana and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
83.5: Dominican Republic (Rank: 66)
81.9: Puerto Rico (Rank: 70)
76.9: Haiti (Rank: 85)
69.1: Regional Average (Latin America & Caribbean)
61.5: Jamaica (Rank: 136)
58.3: Guyana (Rank: 151)
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Indicator
Best Regulatory
Performance
Time to export: Border compliance (hours)
72
55.3
12.7
1 (19 Economies)
Cost to export: Border compliance (USD)
468
516.3
136.8
0 (19 Economies)
Time to export: Documentary compliance (hours)
200
35.7
2.3
1 (26 Economies)
Cost to export: Documentary compliance (USD)
78
100.3
33.4
0 (20 Economies)
Time to import: Border compliance (hours)
84
55.6
8.5
1 (25 Economies)
Cost to import: Border compliance (USD)
265
628.4
98.1
0 (28 Economies)
Time to import: Documentary compliance (hours)
156
43.2
3.4
1 (30 Economies)
Cost to import: Documentary compliance (USD)
63
107.3
23.5
0 (30 Economies)
Guyana
Doing Business
2020
Page 46
Figure – Trading across Borders in Guyana – Time and Cost
Export
-
Border
Compliance
Export
-
Documentary
Compliance
Import
-
Border
Compliance
Import
-
Documentary
Compliance
0
50
100
150
200
250
Time (hours)
0
100
200
300
400
500
Cost (USD)
72
468
200
78
84
265
156
63
Time (hours) Cost (USD)
Guyana
Doing Business
2020
Page 47
Details – Trading across Borders in Guyana
Characteristics
Export
Import
Product
HS 10 : Cereals
HS 8708: Parts and accessories of motor vehicles
Trade partner
United Kingdom
United States
Border
Georgetown port
Georgetown port
Distance (km)
20
20
Domestic transport time (hours)
2
2
Domestic transport cost (USD)
244
175
Details – Trading across Borders in Guyana – Components of Border Compliance
Time to Complete (hours)
Associated Costs (USD)
Export: Clearance and inspections required by
customs authorities
72.0
190.0
Export: Clearance and inspections required by
agencies other than customs
10.7
127.8
Export: Port or border handling
72.0
150.0
Import: Clearance and inspections required by
customs authorities
84.0
100.0
Import: Clearance and inspections required by
agencies other than customs
24.0
0.0
Import: Port or border handling
84.0
165.0
Guyana
Doing Business
2020
Page 48
Details – Trading across Borders in Guyana – Trade Documents
Export
Import
Bill of Lading/ Shipping Bill
Bill of Lading
Packing list
Commercial invoice
Commercial invoice
Customs import declaration
Customs export declaration
Technical standards certificate
Export license
Packing list
Phytosanitary certificate
Cargo release order
Police clearance
Tax certificate
SOLAS certificate
SOLAS certificate
Guyana
Doing Business
2020
Page 49
Enforcing Contracts
.
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019.
See the methodology for more information
What the indicators measure
Time required to enforce a contract through the courts
(calendar days)
Time to file and serve the case
•
Time for trial and to obtain the judgment
•
Time to enforce the judgment
•
Cost required to enforce a contract through the courts (% of
claim value)
Average attorney fees
•
Court costs
•
Enforcement costs
•
Quality of judicial processes index (0-18)
Court structure and proceedings (-1-5)
•
Case management (0-6)
•
Court automation (0-4)
•
Alternative dispute resolution (0-3)
•
Case study assumptions
The dispute in the case study involves the breach of a sales contract between two domestic
businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
To make the data on the time and comparable across economies, several assumptions about the
case are used:
- The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
located in the economy’s largest business city. For 11 economies the data are also collected for the
second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
adequate quality.
- The value of the dispute is 200% of the income per capita or the equivalent in local currency of
USD 5,000, whichever is greater.
- The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
was not adequate.
- The judge decides in favor of the seller; there is no appeal.
- The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
Guyana
Doing Business
2020
Page 50
Enforcing Contracts - Guyana
Figure – Enforcing Contracts in Guyana – Score
Time
62.2
Cost
69.7
Quality of judicial processes index
41.7
Figure – Enforcing Contracts in Guyana and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
61.8: Puerto Rico (Rank: 70)
57.9: Guyana (Rank: 92)
53.7: Jamaica (Rank: 119)
53.5: Regional Average (Latin America & Caribbean)
51.6: Haiti (Rank: 127)
50.6: Dominican Republic (Rank: 133)
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
the scores for each of the component indicators.
Standardized Case
Claim value
GYD 1,942,192
Court name
Georgetown High Court, Commercial Division
City Covered
Georgetown
Indicator
Best Regulatory
Performance
Time (days)
581
774.2
589.6
120 (Singapore)
Cost (% of claim value)
27.0
32.0
21.5
0.1 (Bhutan)
Quality of judicial processes index (0-18)
7.5
8.8
11.7
None in 2018/19
Guyana
Doing Business
2020
Page 51
Figure – Enforcing Contracts in Guyana – Time and Cost
Dominican
Republic
Guyana Haiti Jamaica Latin
America
&
Caribbean
OECD
high
income
Puerto
Rico
0
100
200
300
400
500
600
700
800
900
Time (days)
0
10
20
30
40
50
60
Cost (% of claim value)
590
40.9
581
27.0
530
42.6
550
50.2
774.2
32.0
589.6
21.5
630
30.2
Time (days) Cost (% of claim value)
Guyana
Doing Business
2020
Page 52
Figure – Enforcing Contracts in Guyana and comparator economies – Measure of Quality
the Co-operative Republic of Guyana
Dominican Republic
Haiti
Jamaica
Puerto Rico
OECD high income
Latin America & Caribbean
0 2 4 6 8 10 12 14
Sub-Indicator Score
2 1.5 0 4
2.5 0.5 0 3.5
2 0.5 0 4
2.5 2 0.5 4.5
2 3.5 2.5 3
2.5 3.2 2.4 3.6
2.4 2.2 1 3.6
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Guyana
Indicator
Time (days)
581
Filing and service
21
Trial and judgment
240
Enforcement of judgment
320
Cost (% of claim value)
27.0
Attorney fees
24
Court fees
2
Enforcement fees
1
Quality of judicial processes index (0-18)
7.5
Court structure and proceedings (-1-5)
4.0
Case management (0-6)
1.5
Court automation (0-4)
0.0
Alternative dispute resolution (0-3)
2.0
Guyana
Doing Business
2020
Page 53
Details – Enforcing Contracts in Guyana – Measure of Quality
Answer
Score
Quality of judicial processes index (0-18)
7.5
Court structure and proceedings (-1-5)
4.0
1. Is there a court or division of a court dedicated solely to hearing commercial cases?
Yes
1.5
2. Small claims court
1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?
Yes
2.b. If yes, is self-representation allowed?
Yes
3. Is pretrial attachment available?
Yes
1.0
4. Are new cases assigned randomly to judges?
No
0.0
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 granted?
No
2.b. Are adjournments limited to unforeseen and exceptional circumstances?
No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?
n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii)
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
No
0.0
4. Is a pretrial conference among the case management techniques used before the competent court?
Yes
1.0
5. Are there any electronic case management tools in place within the competent court for use by judges?
No
0.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?
No
0.0
Court automation (0-4)
0.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?
No
0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?
No
0.0
3. Can court fees be paid electronically within the competent court?
No
0.0
4. Publication of judgments
0.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public
through publication in official gazettes, in newspapers or on the internet or court website?
No
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
No
Alternative dispute resolution (0-3)
2.0
1. Arbitration
1.0
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all its aspects?
Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy—
that cannot be submitted to arbitration?
No
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?
No
Guyana
Doing Business
2020
Page 54
2. Mediation/Conciliation
1.0
2.a. Is voluntary mediation or conciliation available?
Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, designation of mediator/conciliator, initiation of the
process, principles governing the process, enforcement)?
Yes
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
No
Guyana
Doing Business
2020
Page 55
Resolving Insolvency
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,
uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019.
.
Doing Business
Doing Business
See the methodology for more
information
What the indicators measure
Time required to recover debt (years)
Measured in calendar years
•
Appeals and requests for extension are included
•
Cost required to recover debt (% of debtor’s estate)
Measured as percentage of estate value
•
Court fees
•
Fees of insolvency administrators
•
Lawyers’ fees
•
Assessors’ and auctioneers’ fees
•
Other related fees
•
Outcome
Whether business continues operating as a going concern or
business assets are sold piecemeal
•
Recovery rate for creditors
Measures the cents on the dollar recovered by secured
creditors
•
Outcome for the business (survival or not) determines the
maximum value that can be recovered
•
Official costs of the insolvency proceedings are deducted
•
Depreciation of furniture is taken into account
•
Present value of debt recovered
•
Strength of insolvency framework index (0- 16)
Sum of the scores of four component indices:
•
Commencement of proceedings index (0-3)
•
Management of debtor’s assets index (0-6)
•
Reorganization proceedings index (0-3)
•
Creditor participation index (0-4)
•
Case study assumptions
To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
- A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
- The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
The hotel cannot pay back the loan, but makes enough money to operate otherwise.
In addition,
evaluates the quality of legal framework applicable to judicial
liquidation and reorganization proceedings and the extent to which best insolvency practices have
been implemented in each economy covered.
Doing Business
Guyana
Doing Business
2020
Page 56
Resolving Insolvency - Guyana
Figure – Resolving Insolvency in Guyana – Score
Recovery rate
19.8
Strength of insolvency framework index
25.0
Figure – Resolving Insolvency in Guyana and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
83.3: Puerto Rico (Rank: 10)
70.1: Jamaica (Rank: 34)
39.2: Regional Average (Latin America & Caribbean)
38.0: Dominican Republic (Rank: 124)
22.4: Guyana (Rank: 163)
0.0: Haiti (Rank: 168)
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Indicator
Best Regulatory
Performance
Recovery rate (cents on the dollar)
18.4
31.2
70.2
92.9 (Norway)
Time (years)
3.0
2.9
1.7
0.4 (Ireland)
Cost (% of estate)
28.5
16.8
9.3
1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern)
0
..
..
..
Strength of insolvency framework index (0-16)
4.0
7.2
11.9
None in 2018/19
Guyana
Doing Business
2020
Page 57
Figure – Resolving Insolvency in Guyana – Time and Cost
Dominican
Republic
Guyana No
Practice
Haiti
Jamaica Latin
America
&
Caribbean
OECD
high
income
Puerto
Rico
0
0.5
1
1.5
2
2.5
3
3.5
4
Time (years)
0
5
10
15
20
25
30
35
40
Cost (% of estate)
3.5
38.0
3.0
28.5
1.1
18.0
2.9
16.8
1.7
9.3
2.5
11.0
Time (years) Cost (% of estate)
Guyana
Doing Business
2020
Page 58
Figure – Resolving Insolvency in Guyana and comparator economies – Measure of Quality
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.”
the Co-operative Republic of Guyana
Dominican Republic
Haiti
Jamaica
Puerto Rico
OECD high income
Latin America & Caribbean
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
2 2 00
5.5 2.5 2 0.5
0 2 1 0
4.5 2.5 3 1
6 3 3 3
5.3 2.8 2.1 1.9
3.7 2.4 1.9 0.8
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Figure – Resolving Insolvency in Guyana and comparator economies – Recovery Rate
Guyana Dominican Republic Haiti Jamaica Puerto Rico Latin America & Caribbean
0
10
20
30
40
50
60
70
80
Recovery rate(cents on the dollar)
18.4
9.6
No Practice
66.4
67.7
31.2
Guyana
Doing Business
2020
Page 59
Details – Resolving Insolvency in Guyana
Indicator
Score
Proceeding
receivership
BizBank would initiate receivership to exercise the security interest over the hotel property through filing an application
with the Commercial Court division of the High Court. Mirage would then file an Affidavit of Defense, followed by
BizBank's filing if necessary. The case then goes to case management and trial until the decision is made by the
Court. As for the enforcement of the judgment, Mirage's business will be sold piecemeal and the sale proceeds will be
paid to BizBank.
Outcome
piecemeal sale
The hotel will stop operating and Mirage's assets will be sold piecemeal by the auctioneer appointed by the Court. This
is because the bank would try to get its money as soon as possible.
Time (in years)
3.0
After the Civil Procedure Rules (CPR 2016) were adopted, it is generally observed that the court procedural steps
relating to receivership have become more efficient in Guyana. However, because the new legislation came into force
in January 2017, the Doing Business team still awaits more information about the cases of receivership, which were
completed entirely according to the new rules. Such information is necessary to provide a new time estimate that
would reflect accurately the new developments.
Cost (% of estate)
28.5
The costs associated with the case would amount to approximately 28.5% of the value of the debtor's estate. The main
components of the costs incurred include attorney fees and insolvency representative fees.
Recovery rate
(cents on the dollar)
18.4
Guyana
Doing Business
2020
Page 60
Details – Resolving Insolvency in Guyana – Measure of Quality
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.”
Note:
Answer
Score
Strength of insolvency framework index (0-16)
4.0
Commencement of proceedings index (0-3)
2.0
What procedures are available to a DEBTOR when commencing insolvency proceedings?
(b) Debtor may file for
liquidation only
0.5
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?
(b) Yes, but a creditor
may file for liquidation
only
0.5
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a)
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value
of its assets
(a) Debtor is
generally unable to
pay its debts as they
mature
1.0
Management of debtor's assets index (0-6)
2.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the
debtor?
No
0.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?
Yes
1.0
Does the insolvency framework allow avoidance of preferential transactions?
Yes
1.0
Does the insolvency framework allow avoidance of undervalued transactions?
No
0.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of
insolvency proceedings?
No
0.0
Does the insolvency framework assign priority to post-commencement credit?
(c) No priority is
assigned to post-
commencement
creditors
0.0
Reorganization proceedings index (0-3)
0.0
Which creditors vote on the proposed reorganization plan?
N/A
0.0
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as
what they would obtain in a liquidation?
No
0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote
separately and are creditors in the same class treated equally?
No
0.0
Creditor participation index (0-4)
0.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency
representative?
No
0.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?
No
0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency
representative?
No
0.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting
creditors' claims?
No
0.0
Guyana
Doing Business
2020
Page 61
Employing Workers
presents detailed data for the employing workers indicators on the
website (
). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
Doing Business Doing Business
http://www.doingbusiness.org
The most recent round of data collection was completed in May 2019.
.
See the methodology for more information
What the indicators measure
(i) whether fixed-term contracts are prohibited for permanent
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum
wage;(v) ratio of minimum wage to the average value added per
worker.
Hiring
(i) maximum number of working days allowed per week; (ii)
premiums for work: at night, on a weekly rest day and overtime;
(iii) whether there are restrictions on work at night, work on a
weekly rest day and for overtime work; (iv) length of paid annual
leave.
Working hours
(i) whether redundancy can be basis for terminating workers; (ii)
whether employer needs to notify and/or get approval from third
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy rules
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
Redundancy cost
Case study assumptions
To make the data comparable across economies, several assumptions about the worker and the
business are used.
- Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
- Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
The worker:
- Is a limited liability company (or the equivalent in the economy).
- Operates a supermarket or grocery store in the economy’s largest business city. For 11
economies the data are also collected for the second largest business city.
- Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
food retail sector and they apply even to firms that are not party to them.
- Abides by every law and regulation but does not grant workers more benefits than those
mandated by law, regulation or (if applicable) collective bargaining agreements.
The business:
Guyana
Doing Business
2020
Page 62
Employing Workers - Guyana
Details – Employing Workers in Guyana
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks?
No
Maximum length of a single fixed-term contract (months)
No limit
Maximum length of fixed-term contracts, including renewals (months)
No limit
Minimum wage applicable to the worker assumed in the case study (US$/month)
218.1
Ratio of minimum wage to value added per worker
0.4
Maximum length of probationary period (months)
n.a.
Working hours
Standard workday
7.8
Maximum number of working days per week
5.5
Premium for night work (% of hourly pay)
0.0
Premium for work on weekly rest day (% of hourly pay)
0.0
Premium for overtime work (% of hourly pay)
50.0
Restrictions on night work?
Yes
Restrictions on weekly holiday?
Yes
Restrictions on overtime work?
Yes
Paid annual leave for a worker with 1 year of tenure (working days)
12.0
Paid annual leave for a worker with 5 years of tenure (working days)
12.0
Paid annual leave for a worker with 10 years of tenure (working days)
12.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days)
12.0
Redundancy rules
Dismissal due to redundancy allowed by law?
Yes
Third-party notification if one worker is dismissed?
Yes
Third-party approval if one worker is dismissed?
No
Third-party notification if nine workers are dismissed?
Yes
Third-party approval if nine workers are dismissed?
No
Retraining or reassignment obligation before redundancy?
No
Priority rules for redundancies?
No
Priority rules for reemployment?
No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
4.3
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
4.3
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary)
1.0
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary)
5.0
Guyana
Doing Business
2020
Page 63
Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary)
15.0
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary)
7.0
Unemployment protection after one year of employment?
No
Guyana
Doing Business
2020
Page 64
Business Reforms in
Guyana
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
have been implemented by economies in all regions. The following are reforms implemented since
2008.
Doing Business Doing Business
DB2020
Trading across Borders:
Guyana made trading across borders more expensive by increasing the fees for mandatory inspection through scanners for exports, thereby
increasing the cost of export border compliance.
DB2018
Registering Property:
Guyana made it easier to transfer property by decreasing the time to transfer a property by allocating higher resources in infrastructure and
personnel
Enforcing Contracts:
Guyana made enforcing contracts easier by adopting a new code of civil procedure regulating time standards for key court events.
DB2017
Registering Property:
Guyana made registering property easier by increasing the transparency of the Lands & Survey Commission.
Getting Credit:
Guyana improved access to credit information by expanding the coverage of the credit bureau.
DB2016
Getting Credit:
Guyana improved access to credit information by establishing a new credit bureau.
DB2014
Paying Taxes:
Guyana made paying taxes easier for companies by reducing the corporate income tax rate.
DB2012
Starting a Business:
Guyana eased the process of starting a business by reducing the time needed for registering a new company and for obtaining a tax identification
number.
Getting Electricity:
Guyana made getting electricity more expensive by tripling the security deposit required for a new connection.
Registering Property:
In Guyana transferring property became slower because of a lack of personnel at the deed registry.
DB2011
Starting a Business:
Guyana eased business start-up by digitizing company records, which speeded up the process of company name search and reservation.
Getting Credit:
Guyana enhanced access to credit by establishing a regulatory framework that allows the licensing of private credit bureaus and gives borrowers the
right to inspect their data.
Trading across Borders:
Guyana improved its risk profiling system for customs inspection, reducing physical inspections of shipments and the time to trade.
DB2010
Starting a Business:
Guyana made starting a business easier by applying a flat registration fee for all companies, regardless of capital amount; eliminating the duty
payable upon incorporation; and streamlining tax registration through the introduction of a unique tax identification number (TIN) system.
Trading across Borders:
Guyana reduced the time for exporting and importing by implementing a system allowing customs brokers to submit documents electronically.
undefined:
=
reform making it easier to do business.
= Change making it more difficult to do business.
Doing Business
Guyana
Doing Business
2020
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Guyana
Doing Business
2020
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