Reforms in Latin America, 2008-09

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Argentina

Argentina made it more difficult to register property by requiring declarations for all transactions over AR$300,000. Business start-up was eased with an expedited publication process.

Areas of Reform: Starting a business, Registering property (making it more difficult)
Rank in Doing Business 2010: 118

Belize

In Belize, no major reform was recorded.

Rank in Doing Business 2010: 80

Bolivia

In Bolivia, no major reform was recorded.

Rank in Doing Business 2010: 161

Brazil

Brazil eased the process of starting a business by removing the requirement to obtain a fire brigade license and inspection before obtaining an operational license from a municipality.

Areas of Reform: Starting a business
Rank in Doing Business 2010: 129

Chile

In Chile, no major reform was recorded.

Rank in Doing Business 2010: 49

Colombia

Colombia passed several decrees continuing its efforts to regulate the profession of insolvency administrators. The government eased the construction permit process with a new construction decree that categorizes building projects based on risk and allows electronic verification for certain documents. Access to credit improved thanks to a new credit information law that guarantees the right of borrowers to inspect their own data and new rules that make it mandatory for credit providers to consult and share information with credit bureaus. The tax burden on businesses was eased with the introduction of electronic tax filing and payment, and some payments were reduced. An amendment to the Company Law strengthened investor protections by making it easier to sue directors in cases of prejudicial transactions between interested parties. Property registration was made easier by making it possible to obtain required certificates online and by making standard preliminary sale agreements available free of charge. Business start-up was made easier by creating a public-private health provider that enables faster affiliation of employees and through a tool that allows online pre-enrollment with the social security office. Implementation of an electronic declaration system has expedited customs clearance.

Areas of Reform: Starting a business, Dealing with construction permits, Registering property, Getting credit (information), Protecting investors, Paying taxes, Trading across borders, Closing a business
Rank in Doing Business 2010: 37

Costa Rica

Costa Rica, improved contract enforcement. It authorized new modes for service of process and simplified auction procedures by allowing publication of a single auction notice.

Areas of Reform: Enforcing contracts
Rank in Doing Business 2010: 121

Ecuador

In Ecuador, no major reform was recorded.

Rank in Doing Business 2010: 138

El Salvador

In El Salvador, no major reform was recorded.

Rank in Doing Business 2010: 84

Guatemala

Guatemala eased the construction permit process with a new land management plan that simplified approvals based on risk assessments, while mixed zoning regimes made the approval process much faster. The credit information system was strengthened with the adoption of a decree on access to public information that guarantees the right of borrowers to inspect their own data in any public institution. Access to credit and the regime for secured transactions were strengthened with a new collateral registry for movable assets that applies to all such assets and all types of creditors and debtors, and is searchable by debtor name. The government eased payment of and filing for value added and corporate income taxes by increasing electronic compliance thresholds and extending the electronic system to most banks. Property registration was eased by centralizing more procedures at the cadastre, reorganizing operations, and making greater use of electronic services.

Areas of Reform: Dealing with construction permits, Registering property, Getting credit (information, legal rights), Paying taxes
Rank in Doing Business 2010: 110

Guyana

Guyana eased business start-up by applying a flat registration fee for all companies, regardless of their capital amount, and removing the duty payable on incorporation. It also streamlined registration with the tax authorities with the introduction of a single tax identification number for corporate, value added, and labor taxes. Implementation of an electronic declaration system reduced customs clearance times for exports and imports.

Areas of Reform: Starting a business, Trading across borders
Rank in Doing Business 2010: 101

Honduras

Honduras eased the construction permit process through various administrative reforms that shortened the process by 19 days. The government increased severance pay, making dismissals more costly. It also passed a resolution that enhances the operations of the public credit bureau; it classifies debtors into several groups and is designed to help banks manage risk. Business start-up was eased by creating a one-stop shop to make registration more efficient, improving the process of registering for taxes, and eliminating the need for lawyers’ services to obtain a municipal license.

Areas of Reform: Starting a business, Dealing with construction permits, Employing workers (making it more difficult), Getting credit (information)
Rank in Doing Business 2010: 141

Mexico

Mexico eased taxpaying by introducing electronic payment systems for payroll, property, and social security taxes. Business start-up was eased by establishing an electronic platform for company registration, substantially reducing the number of days for registration, and eliminating the requirement to register with the statistical office.

Areas of Reform: Starting a business, Paying taxes
Rank in Doing Business 2010: 51

Nicaragua

In Nicaragua, no major reform was recorded.

Rank in Doing Business 2010: 117

Panama

Panama eased the construction permit process by eliminating and simplifying some procedures. A certificate of good standing from the tax agency can now be obtained online, reducing the time required to transfer property in Panama.

Areas of Reform: Dealing with construction permits, Registering property
Rank in Doing Business 2010: 77

Paraguay

Paraguay saw a reduction in trading times with the implementation of an electronic export system and improvements to the risk-based inspection system.

Areas of Reform: Trading across borders
Rank in Doing Business 2010: 124

Peru

Peru has made labor regulation more flexible through new rules for micro and small enterprises that reduce severance payments and mandatory paid annual leave. The government eased contract enforcement by introducing deadlines for filing evidence and contesting enforcement procedures. In addition, electronic judicial notices are permissible in lieu of publication in the official gazette. Taxpaying was made easier with the use of software, distributed free of charge, for value added taxes. Peru also eased the cash flow of businesses by reducing the check tax and accelerating depreciation. Registering property has become easier with faster electronic processing and with an online connection between the tax agency and notaries that facilitates payment of municipal taxes. Business start-up was simplified by allowing submission of electronic payroll books online at no cost and making company forms available online. Additional cranes have expedited port and terminal handling activities.

Areas of Reform: Starting a business, Employing workers, Registering property, Paying taxes, Trading across borders, Enforcing contracts
Rank in Doing Business 2010: 56

Suriname

Suriname implemented new valuation requirements to ensure proper tax payments at the land registry, which increased the procedures, cost, and time required to register property.

Areas of Reform: Registering property (making it more difficult)
Rank in Doing Business 2010: 155

Uruguay

Uruguay enacted an insolvency law aimed at keeping distressed companies operating as going concerns. New online procedures make it easier to transfer property, but a new law assigned preemption rights to the municipality of Montevideo, adding a procedure to property transfers.

Areas of Reform: Registering property (making it more difficult), Closing a business
Rank in Doing Business 2010: 114

The República Bolivariana de Venezuela

The República Bolivariana de Venezuela introduced two new taxes, increasing the tax burden on businesses.

Areas of Reform: Paying taxes (making it more difficult)
Rank in Doing Business 2010: 177