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Doing Business 2020Equatorial GuineaStarting a BusinessThis 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 andformally operate in each economy’s largest business city.To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement ofoperations, 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 onecompany 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 theirscores for starting a business. These scores are the simple average of the scores for each of the component indicators.The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.What the indicators measureProcedures 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 leavethe home to register the company Obtaining any gender specific document for companyregistration and operation or national identification cardTime required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure starts on a separate day (2 procedures cannotstart on the same day) Procedures fully completed online are recorded as ½ day Procedure is considered completed once final document isreceived No prior contact with officialsCost required to complete each procedure (% of income percapita) Official costs only, no bribes No professional fees unless services required by law orcommonly used in practicePaid-in minimum capital (% of income per capita) Funds deposited in a bank or with third party before registrationor up to 3 months after incorporationCase study assumptionsTo make the data comparable across economies, several assumptions about the business and theprocedures are used. It is assumed that any required information is readily available and that theentrepreneur will pay no bribes.The business:-Is a limited liability company (or its legal equivalent). If there is more than one type of limitedliability company in the economy, the limited liability form most common among domestic firms ischosen. Information on the most common form is obtained from incorporation lawyers or thestatistical office.-Operates in the economy’s largest business city. For 11 economies the data are also collected forthe second largest business city.-Performs general industrial or commercial activities such as the production or sale to the public ofgoods or services. The business does not perform foreign trade activities and does not handleproducts subject to a special tax regime, for example, liquor or tobacco. It is not using heavilypolluting 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 thecompany shares, two owners have 20% of shares each, and two owners have 15% of shareseach.-Is managed by one local director.-Has between 10 and 50 employees one month after the commencement of operations, all of themdomestic 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 thereis 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 inquestion (as may be the case in economies where there is legal plurality), the answer used will bethe one that applies to the majority of the population.Page 5

Doing Business 2020Equatorial GuineaStarting a Business - Equatorial GuineaStandardized CompanyLegal formLimited Liability Company (SARL)Paid-in minimum capital requirementXAF 1,000,000City fricaOECD highincomeBest RegulatoryPerformanceProcedure – Men (number)167.44.91 (2 Economies)Time – Men (days)3321.59.20.5 (New Zealand)Cost – Men (% of income per capita)59.136.33.00.0 (2 Economies)Procedure – Women (number)167.54.91 (2 Economies)Time – Women (days)3321.69.20.5 (New Zealand)Cost – Women (% of income per capita)59.136.33.00.0 (2 Economies)Paid-in min. capital (% of income per capita)22.89.37.60.0 (120 Economies)Figure – Starting a Business in Equatorial Guinea – Score11.867.370.594.3ProceduresTimeCostPaid-in min. capitalFigure – Starting a Business in Equatorial Guinea and comparator economies – Ranking and ScoreDB 2020 Starting a Business Score010091.6: Congo, Dem. Rep. (Rank: 54)86.3: Cameroon (Rank: 104)80.1: Regional Average (Sub-Saharan Africa)65.8: Congo, Rep. (Rank: 179)63.2: Central African Republic (Rank: 180)61.0: Equatorial Guinea (Rank: 183)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 ofthe scores for each of the component indicators.Page 6

Doing Business 2020Equatorial GuineaFigure – Starting a Business in Equatorial Guinea – Procedure, Time and CostTime (days)Cost (% of income per capita)2520Time (days)2520151510105Cost (% of income per capita)3050012345*6*7*89* 10* 11* 12* 13* 14* 15* 16Procedures (number)* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows thetime for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the proceduresreflected here, see the summary below.Page 7

Doing Business 2020Equatorial GuineaDetails – Starting a Business in Equatorial Guinea – Procedure, Time and CostNo.12ProceduresTime to CompleteAssociated CostsNotarize the company's articles of associationAgency : Notary or One-Stop-ShopAlthough it is not required by law, in practice lawyers prepare company statutes. By law, however,a public notary must legalize the statutes and execute the public deed. There is one notary inMalabo (capital city, insular region), that works at the Malabo Notary’s office and at the VUE inMalabo, and one in Bata (mainland).9 days on averageRegister the company at the Commercial RegistryAgency : Commercial Registry (Registro de la Propiedad y Mercantil)For registration, the entrepreneur must provide the notarized copies of the articles of association.By law, the company must use a unique company name, but in practice, they do not verify thename beforehand. The registry simply refuses the application if the name already exists.2 days on averageCFA 1,000,0001% of the company'scapitalPer Art. 261 of the OHADA Uniform Act on Commercial Companies, a notice of companyincorporation shall be published at a legal journal within 15 days of registration. This is usually notcomplied with in practice.3Open a bank account and obtain a bank certificate (atestación de solvencia bancaria)Agency : BankLegally, the company must deposit the minimum capital before company registration. However,this is not possible in practice because copies of the legalized statutes and the registrationcertificate are required to open a bank account.1 dayno charge4Obtain a certificate of solvency from the Ministry of FinanceAgency : Ministry of FinanceA certificate of solvency must be obtained at the Ministry of Finance.2 daysCFA 10,000 – 15,000Apply for registration with the Department of Business and Private Investment at theMinistry of CommerceAgency : Ministry of CommerceEntrepreneurs must register a company at the Department of Business and Private Investment atthe Ministry of Commerce. An annual fee is charged and it varies by company.1 dayCFA 100,000Apply for registration with the Department of Commerce at the Ministry of CommerceAgency : Ministry of CommerceEntrepreneurs must register a company at the Department of Commerce at the Ministry ofCommerce. This annual fee varies by company.1 day (simultaneous withCFA 150,000Apply for tax registrationAgency : Public Treasury or One-Stop-ShopCompanies must be registered with the Tax Authorities. Registration with the Tax authorities isalso available at the One-Stop-Shop. The documents required to apply for tax registration includethe notarized statutes. The fees are paid at the bank into an account of the Public Treasury. Afterobtaining the Treasury’s confirmation of receipt of payment, the applicant returns to the taxauthorities to obtain the tax identification number. To save time, the applicant (or a designatedagent) would first visit all agencies (tax administration, labor, social security, etc.) to apply for therespective authorization or document, make all bank payments, and obtain the confirmation fromthe Treasury. The applicant would then visit all agencies again to obtain the final authorization.1 day (simultaneous with2% of the company'sprevious procedure)share capital capitalApply for registration with the Ministry of LaborAgency : Ministry of LaborFees for registering with the Ministry of Labor are paid to the Treasury through a private bank.Upon application, the employer obtains an inspection book and labor calendar. Once operational,the employer pays 1% of salaries to the Workers Protection Fund (Fondo de Protección delTrabajador). Employees pay 0.5% of their salary. Although the indicated fees are official fees, feesmight be higher in practice.1 day (simultaneous withCFA 300 (form) CFAprevious procedure)6,750 (for registration ofPay fees to the Treasury’s bank accountAgency : BankAll payments to public institutions, including Ministries, must be made directly to the PublicTreasury’s bank account through any commercial bank. The bank slip issued by the bank showingthat payment was made is taken to the Public Treasury’s office for acknowledgment of receipt.The Public Treasury’s acknowledgment of receipt is taken, after its issuance, to the relevantauthorities to obtain the corresponding license/certificate of registration.1 dayObtain a confirmation from Treasury for receipt of paymentAgency : Public TreasuryAll new businesses must obtain a confirmation from the Treasury for receipt of payment in order toobtain a license from the Ministry of Commerce.4 days on average5(stamps)Additional registrations with other Ministries are required depending on the company's sector ofactivity.678910previous procedure)small enterprises) or CFA12,500 (medium-sizedenterprises)included in procedures 7and 8no charge(simultaneous withprevious procedure)Page 8

Doing Business 202011Equatorial GuineaProvide a confirmation of payment and obtain a license from the Department of Businessand Private Investment at the Ministry of CommerceAgency : Ministry of CommerceAll new businesses must provide a confirmation of payment and obtain a license from Departmentof Business and Private Investment.14 days (simultaneousProvide a confirmation of payment and obtain a license from the Department of Commerceat the Ministry of CommerceAgency : Ministry of CommerceAll new businesses must provide a confirmation of payment and obtain a license from theDepartment of Commerce.14 days (simultaneousObtain the tax identification number (NIF)Agency : Ministry of Finance or One-Stop-ShopThe company must obtain a tax identification number (NIF) at the Ministry of Finance.2 days (simultaneous13Obtain a registration number from the Ministry of LaborAgency : Ministry of LaborAll new businesses must obtain their registration number at the Ministry of Labor.1 day (simultaneous with14Obtain a Social Security number for the company's employeesAgency : Social Security Institute (INSESO)All new businesses must ensure that their employees have their social security numbers.1 day (simultaneous with15Register the company's employees with Social SecurityAgency : Social Security Institute (INSESO)The company must register its employees for social security in the first month that the employeesreceive a salary. Social security payments are 21.5% of salary for the employer and 4.5% for theemployee. To register for social security, the company must purchase special forms to list allemployees.1 day (simultaneous with1216no chargewith previous procedure)no chargewith previous procedure)included in procedure 7with previous procedure)included in procedure 8previous procedure)no chargeprevious procedure)CFA 300 per pageprevious procedure)Takes place simultaneously with previous procedure.Page 9

Doing Business 2020Equatorial GuineaDealing with Construction PermitsThis 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 buildingquality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professionalcertification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more informationWhat the indicators measureProcedures to legally build a warehouse (number) Submitting all relevant documents and obtaining all necessaryclearances, licenses, permits and certificates Submitting all required notifications and receiving all necessaryinspections Obtaining utility connections for water and sewerage Registering and selling the warehouse after its completionTime required to complete each procedure (calendar days) Does not include time spent gathering information Each procedure starts on a separate day—though proceduresthat can be fully completed online are an exception to this rule Procedure is considered completed once final document isreceived No prior contact with officialsCost required to complete each procedure (% of income percapita) Official costs only, no bribesBuilding 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 assumptionsTo make the data comparable across economies, several assumptions about the constructioncompany, 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 largestbusiness 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 alicensed architect and a licensed engineer, both registered with the local association of architectsor engineers. BuildCo is not assumed to have any other employees who are technical or licensedexperts, such as geological or topographical experts.- Owns the land on which the warehouse will be built and will sell the warehouse upon itscompletion.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 1,300.6square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will belocated 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. Ifpreparation of the plans requires such steps as obtaining further documentation or getting priorapprovals from external agencies, these are counted as procedures.- Will take 30 weeks to construct (excluding all delays due to administrative and regulatoryrequirements).The water and sewerage connections:- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no waterdelivery infrastructure in the economy, a borehole will be dug. If there is no sewerageinfrastructure, 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 flowof 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day anda 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 1inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.Page 10

Doing Business 2020Equatorial GuineaDealing with Construction Permits - Equatorial GuineaStandardized WarehouseEstimated value of warehouseXAF 219,012,780City fricaOECD highincomeBest RegulatoryPerformanceProcedures (number)1315.112.7None in 2018/19Time (days)144145.4152.3None in 2018/19Cost (% of warehouse value)4.18.91.5None in 2018/19Building quality control index (0-15)1.08.911.615.0 (6 Economies)Figure – Dealing with Construction Permits in Equatorial Guinea – Score68.066.079.46.7ProceduresTimeCostBuilding quality control indexFigure – Dealing with Construction Permits in Equatorial Guinea and comparator economies – Ranking and ScoreDB 2020 Dealing with Construction Permits Score010061.3: Congo, Rep. (Rank: 134)59.5: Congo, Dem. Rep. (Rank: 144)58.5: Regional Average (Sub-Saharan Africa)56.5: Cameroon (Rank: 154)55.0: Equatorial Guinea (Rank: 162)34.1: Central African Republic (Rank: 184)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 scoresare the simple average of the scores for each of the component indicators.Page 11

Doing Business 2020Equatorial GuineaFigure – Dealing with Construction Permits in Equatorial Guinea – Procedure, Time and CostTime (days)Cost (% of warehouse value)31202.5Time (days)100802601.5401200.50Cost (% of warehouse value)3.514001234567*8910111213Procedures (number)* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows thetime for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the proceduresreflected here, see the summary below.Page 12

Doing Business 2020Equatorial GuineaFigure – Dealing with Construction Permits in Equatorial Guinea and comparator economies – Measure of Quality13.014Index Sub-SaharanAfricaDetails – Dealing with Construction Permits in Equatorial Guinea – Procedure, Time and CostNo.ProceduresTime to CompleteAssociated Costs1Buy stamped paperAgency : MunicipalityBuilding permit and water connection applications to the Municipality must be made on stampedpaper.1 dayXAF 4,0002Request authorization for building permit at the MunicipalityAgency : MunicipalityThe permit application includes all architectural and building plans, measurements, and costassessments. The application must be submitted on stamped paper. The file is forwarded forreview to the Technical Office and subsequently passed to the mayor for signature. If the TechnicalOffice has doubts that the proposed project budget fits the project size and nature, a site visitmight be undertaken. This can only be done with the stamped paper.15 daysno charge3Pay fees at the bank and obtain payment receiptAgency : Commercial BankPayment can be made only after the approval of the dossier.1 dayXAF 2,190,1284Deposit payment receipt at the MunicipalityAgency : MunicipalityAfter the payment is done, the voucher should be presented at the Municipality.1 dayno charge5Obtain building permitAgency : MunicipalityAfter the Municipality receives the payment receipt, the dossier is authorized again and finallysigned by the mayor.30 daysno charge6Receive inspection from the MunicipalityAgency : MunicipalityInspections are random and occur during construction. A final inspection or occupancy permit isnot required. However, it is important to stress that this can only happen during the constructionperiod, once the building permit was granted.1 dayno charge7Request authorization for water connectionAgency : MunicipalityThe water connection is undertaken by the Municipality. As with the building permit application, theapplication must be made on stamped paper. This request is done once the construction isfinalized.14 daysXAF 75,000Pay for water connectionAgency : Commercial BankA payment receipt is required to obtain authorization for the water connection. This procedure isenabled whenever the request has been made. It can be paid at a commercial bank, not at theMunicipality.1 dayno charge9Deposit proof of payment and obtain final payment receipt from MunicipalityAgency : MunicipalityThe payment is made only after the request is made.1 dayno charge10Obtain authorization for water connectionAgency : MunicipalityAfter the fees are paid, the Mayor's office approves the application for water connection.14 daysno charge11Receive connection to water servicesAgency : Mun

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 wa