BUSINESS ESTABLISHMENT PROCEDURES IN ST.LUCIA BUSINESS REGISTRATION, INVESTMENT APPROVALS, LICENSES AND PERMITS
2009
BUSINESS ESTABLISHMENT PROCEDURES IN ST.LUCIA BUSINESS REGISTRATION, INVESTMENT APPROVALS, LICENSES AND PERMITS
2009
Indefinite Quantity Contract No. AFP-I-00-04-00002-00 Task Order No. AFP-I-02-04-00002-01 Prepared for USAID/J-CAR Michael Taylor, Cognizant Technical Officer
The author’s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government.
CONTENTS EXECUTIVE SUMMARY........................................................................................................................ VI GENERAL RECOMMENDATIONS.....................................................................................................VII SECTION I: CURRENT BUSINESS REGISTRATION PROCESSES ....................................... VIII 1.
BUSINESS NAME SEARCH AND REGISTRATION PROCESS................................................................ X
2.
PROCESS FOR COMPANY INCORPORATION (DOMESTIC PROFIT‐MAKING).................................. XII
3.
PROCESS FOR COMPANY INCORPORATION (NON‐PROFIT‐MAKING) ........................................... XV
ACCOMPLISHMENTS.............................................................................................................................. XIX RECOMMENDATIONS ............................................................................................................................. XX NEW PROCESSES AT ROCIP............................................................................................................XX 1.
OBTAINING A TAX ACCOUNT NUMBER....................................................................................... XXII
RECOMMENDATIONS .......................................................................................................................... XXIV 2.
REGISTERING WITH NATIONAL INSURANCE CORPORATION (NIC) FOR SOCIAL SECURITY......... XXV
RECOMMENDATIONS ......................................................................................................................... XXVII SECTION II: CURRENT INVESTMENT APPROVAL, PERMIT AND LICENSING ADMINSTRATIVE PROCESSES ................................................................................................ XXVIII 1.
TRADE LICENSE ......................................................................................................................... XXVIII
RECOMMENDATIONS AND PROPOSED PROCESSES............................................................................ XXXI PROPOSED NEW PROCESSES .............................................................................................................. XXXII 1.
FISCAL INCENTIVES ................................................................................................................... XXXIV
2.
APPLICATION FOR DUTY FREE CONCESSIONS (MICRO AND SMALL ENTERPRISES) ............... XXXVIII
RECOMMENDATIONS ..............................................................................................................................XL 3.
TOURISM INCENTIVES APPROVAL.................................................................................................XLI
4.
SPECIAL DEVELOPMENT AREA CONCESSIONS.............................................................................XLIV
5.
ALIEN LAND HOLDING LICENSE ...................................................................................................XLVI
PERMITS ....................................................................................................................................................L WORK PERMIT APPROVAL PROCESS RECOMMENDATION ....................................................................LIII 2.
DEVELOPMENT CONTROL AUTHORITY (DCA) APPROVAL PROCESS .............................................LIV
DCA APPROVAL PROCESS RECOMMENDATIONS .................................................................................LXIII 3.
IMPORT PERMIT APPROVAL........................................................................................................LXIV iv
IMPORT LICENSE RECOMMENDATIONS AND PROPOSED NEW PROCESS: ..........................................LXVI 4.
LAND REGISTRATION .................................................................................................................LXVIII
LAND REGISTRATION RECOMMENDATIONS .........................................................................................LXX ANNEX 1: LIST OF INTERVIEWEES.............................................................................................LXXI
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Executive Summary The number of administrative procedures that an investor will face to establish a business in St.Lucia is not excessive but the approval process is often laborious, time-consuming, lacks transparency, highly discretionary, often unpredictable and redundant. There is a lack of information on the necessary steps for approvals. The institutional deficiencies and operational inefficiency are more apparent in some of the ministries and departments than others and there is little coordination, if not duplication, of efforts. This report seeks to identify the procedures that a business person will face when establishing a business. This report should provide a cross-agency understanding of the entire business establishment and operational process. The intention is that, the ministries, departments and agencies involved in the process will use the information provided to eliminate unnecessary or redundant steps in the administrative process. It is recommended that the Investment Facilitation Unit takes the lead in working with the MDA’s to implement a more streamline process. Once the detailed process flow is understood and mapped, then transparency, efficiency, and better process flow will be worked into the system. It is also recognized that in medium to long term, legal reforms will be required to ensure the success of this exercise. It is also hoped that the identification of the steps in the process will assist in automating the internal processes of the various agencies as was the case for Registry of Companies and Intellectual Property when the Online Company Registration System was developed, installed and launched in May 2009 by USAID-COTS Program. This report describes the step by step procedures and identifies opportunities for administrative reform in each of the fourteen (14) registration, license and approval processes. General recommendations for streamlining the process are included, however, it is up to the Government of St.Lucia to spend time analyzing and designing the streamlined processes in detail based on their first-hand knowledge of the environment and constraints. Some recommendations include streamlining the process, improving the required forms and making the transition to an electronic format and communicating the essential information for each process more effectively.
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General Recommendations Some general short-term recommendations to improve the administrative processes include: 1. Revise application forms and consolidate as many as possible to reduce the number of applications requiring duplicative information 2. Put all forms online and make them downloadable. Where possible create online forms and facilitate online submission 3. Integrate the various software within ministries and agencies to improve information sharing and reduce the time and cost of approvals 4. Launch the e-Government policy 5. Pass the following draft e-legislation which is currently with the Attorney-General’s Office:
a. Electronic Transaction Bill which allows for electronic signatures and encryption b. Freedom of Information Bill c. Data and Privacy Protection Bill d. Electronic Crimes Bill 6. Implement necessary e-framework to facilitate online payments and introduce epayments where possible once e-legislation is passed 7. Implement effective communications program on steps and procedures for establishing and operating a business in St.Lucia as well as revisions to the process
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SECTION I: Current BUSINESS registration processes A “company” is a corporation. A “business name” is the name under which business is carried on, whether individually or in partnership. The Company and Intellectual Property Registry is responsible for registering business names and incorporating a company. It is currently not automated; however, it is currently in discussions with the Computer Center Limited to develop a database and a system to automate its internal processes. USAID-COTS will support the Government of Saint Lucia in this initiative to make this a web-based system accessible by the public for online name search. World Bank Survey Results for Business Registration in St.Lucia: 2009
According to the World Bank, the 6 steps for Starting Business in St Lucia take a total of 20 days. St Lucia ranks 36th overall – a very good position. However, it could be ranked even higher if a few steps are eliminated. The 2009 Doing Business Report1 describes the process of Starting a Business in St. Lucia as follows: STANDARDIZED COMPANY: Legal Form: Private Limited Liability Company City: Castries N
Procedure
Time to Complete
Cost to Complete
2 days
XCD 25
1 day
XCD 2325
10 days
XCD 850
7 days 1 day (simultaneously with procedure 4) 1 day (simultaneously with procedure 4)
XCD 75 No charge
1
2 3 4 5
6
1
Search for a company name and reserve the proposed name Lawyer prepares incorporation documents Registration with the Commercial Registry Make a company seal Obtain tax payer identifier
Register as employer with social security institute
No charge
http://www.doingbusiness.org/ExploreTopics/StartingBusiness/Details.aspx?economyid=176
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Procedure 1: Search for a company name and reserve the proposed name Time to complete: 2 days Cost to complete: XCD 25 Comment: In practice, companies seldom search for the company name. The lawyer often simply fills out the request for name search form with the name of choice, and if there is a conflict at the registry, the registrar will reject the application. A name can be reserved for a 3-month period. Procedure 2: Lawyer prepares incorporation documents Time to complete: 1 day Cost to complete: XCD 2325 Comment: An attorney prepares the incorporation documents, which include (a) the articles of incorporation; (b) the notice of directors; (c) the notice of the company’s registered office; (d) and the notarized declaration swearing that the incorporator is mentally sound, is over 18 years of age and does not have the status of a bankrupt. Bylaws are not essential for forming the company but are required for filing after incorporation. [They are usually filed together with the other documents in this procedure and are included in the company formation fee.] According to the Company Registrar – “This is absolutely WRONG! Bye-Laws are filed after incorporation at a fee of $25.00. They are NEVER filed together with the incorporation documents and included in the company formation fee” Procedure 3: Registration with the Commercial Registry Time to complete: 4 days Cost to complete: XCD 850 Comment: When registering the company with the Commercial Registry, the promoters pay an administrative fee when presenting the documents for registration. The Registry issues a certification of incorporation once the registration process is finalized. Procedure 4: Make a company seal Time to complete: 7 days Cost to complete: XCD 75 Comment: A company can obtain a rubber-stamp seal locally in 7 days; the cost is XCD 75. If a more formal embossed seal is required, it can be obtained from overseas in 14 days; the cost is about XCD 260. Procedure 5: Obtain tax payer identification number Time to complete: 1 day (simultaneous with procedure 4) Cost to complete: no charge Comment: The competent authority is the Inland Revenue Department. Procedure 6: Register as employer with social security institute ix
Time to complete: 1 day (simultaneous with procedure 4) Cost to complete: no charge Comment: The competent authority is the National Insurance Corporation. Business Name Registration and Company Incorporation Based on the findings of USAID-COTS, the following outlines the steps in the process for business name registration and company incorporation at the Registry of Companies and Intellectual Properties (RCIP).
1. Business name search and registration process Registration of the business name is done by the individual business person. The Registry of Companies and Intellectual Property processes on average 15-20 name searches per day.
BUSINESS NAME SEARCH AND REGISTRATION PROCESS (Manual Process as at April 2009) LEGAL AUTHORITY
Registration of Business Names Act Chapter 13.03 of 31 Dec 2001 describes the registration process. The content of the forms are specified in the Rules of the Act.
PREREQUISITES
None
STEPS IN THE PROCESS As at March 1, 2009
Step 1:
The applicant may check the availability of the proposed name in the physical indexes located at the Registry of Companies and Intellectual Property (ROCIP) Note: this is optional.
Step 2:
The applicant completes a Name Search Form which is provided free of charge by the Company Registry
Step 3:
Applicant physically submits the form to the Registry Clerk at the Company Registry.
Step 4:
The Registry Clerk stamps the name search form as RECEIVED
Step 5:
The Registry Clerk passes the form onto the Assistant Registrar
Step 6:
The Assistant Registrar checks the International Business Companies database* to check the availability of the name.
Step 7:
The Assistant Registrar records the results on the form indicating the findings, that is, whether the name is available or if there are similar business names or companies registered Time taken:
Step 8*:
2 days
The Assistant Registrar returns the form to the Deputy Registrar for x
review Step 9:
The Deputy Registrar reviews the form, approves or refuses the application and stamps APPROVED or NOT APPROVED on the application form.
Step 10
The Deputy Registrar transfers the document back to the Registry Clerk
Step 11:
The name search form is collected by the applicant.
Step 12:
The applicant takes the approved name search form to an attorney-atlaw to get the Application for Business Registration and the Statutory Declaration prepared2 or may go to the Small Enterprise Development Unit (SEDU) located at the Ministry of Trade and Industry to have the documents prepared
Step 13:
Applicant returns with the documents – Approved Name Search Application, Application of Business Registration and the Statutory Declaration - and submits them to the Registry Clerk
Step 14
The Registry Clerk writes up a pay slip for EC$125 and hands it to the Applicant
Step 15
The applicant goes to the Cashier at ROCIP to pay
Step 16
Cashier STAMPS the pay slip PAID and issues a Cashier Receipt
Step 17
The Registry Clerk sends the documents to the Assistant Registrar for vetting.
Step 18
The Assistant Registrar vets the documents and if in order, assigns a Business Name Registration Number which is different to the company registration number.
Step 19
The Assistant Registrar passes the document to the Registry Clerk for entry into the Register and for preparation of the Certificate of Registration.
Step 20
The Registry Clerk prepares the Certificate of Registration
Step 21
The Registry Clerk gives the Certificate of Registration to the Deputy Registrar for action
Step 22
The Deputy Registrar reviews, signs and dates the Certificate of Registration if in order.
Step 23
The Deputy Registrar passes the signed Certificate of Registration to the Assistant Registrar for data entry into Pinnacle.
Step 24
The Assistant Registrar passes the Certificate of Registration to the Registry Clerk.
2
It should be noted that the applicant may complete the application for Business Registration on his own and an attorney‐at‐law or a justice of the peace is required to notarize the Statutory Declaration. xi
Step 25
The Registry Clerk affixes a Red Seal and an Impression Applicant picks up the Certificate of Registration Time taken: 2 days Total Time Taken: 4 days
REQUIRED FORMS
FEES
• • •
Application for Business Name approval Application of Business Name Registration Statutory Declaration
Business Name Registration Fee – EC$125
REQUIRED STAMPS
REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS NEXT STEPS
• • •
Received Approved FILED Red Seal and Impression
• •
Registry Clerk Assistant Registrar Deputy Registrar Registration with Inland Revenue Deprtment (tax registration) Registration with National Insurance Corporation (social security)
• Registrar (currently the Deputy Registrar)
• •
•
2. PROCESS FOR COMPANY INCORPORATION (DOMESTIC PROFIT MAKING) Company registrations are normally done by or with the guidance of a lawyer, rather than an individual business person. However, the lawyer is required to complete a statutory declaration. The “lawyer”, in the process below, often refers specifically to the lawyer’s representative – usually an office clerk.
PROCESS FOR INCORPORATING PROFIT-MAKING COMPANIES (Manual Process as at April 2009) LEGAL AUTHORITY
Companies Act Chapter 13.01 of 31 Dec 2001 describes the registration process. The content of the forms are specified in regulations of the Act.
PREREQUISITES
Approval of Company Name or Reservation
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STEPS IN THE PROCESS As at March 1, 2009
Step 1:
The applicant may check the availability of the proposed name in the physical indexes located at the Registry of Companies and Intellectual Property (ROCIP). Note: this is optional.
Step 2:
The applicant completes a Request for Name Search and Name Reservation Form. This form is not provided by the Company Registry. They are drawn up by an Attorney-at-law based on the prescribed forms in the Companies Regulations.
Step 3:
Applicant physically submits the form to the Registry Clerk at the Company Registry
Step 4:
The Registry Clerk stamps the request for name search form as RECEIVED. If the name is to be reserved, the Registry Clerk writes up a pay slip for EC$25
Step 5:
The applicant takes the pay slip to the Cashier at ROCIP and pays the fee.
Step 6:
Cashier STAMPS the pay slip PAID and issues a Cashier Receipt and gives the receipt to the Registry Clerk and the form is stamped ‘FILED’ The Registry Clerk gives the form to the Assistant Registrar
Step 7:
The Assistant Registrar checks the International Business Companies database3 to check the availability of the name. The Assistant Registrar records the results on the form (Form 26) indicating the findings of the search, that is, whether the name is available or if there is a similar name in use and returns the form to the Deputy Registrar
Step 8:
The Deputy Registrar reviews the form and stamps the form APPROVED or NOT APPROVED on the application form. The Deputy Registrar passes the document back to the Assistant Registrar
Step 9:
The Assistant Registrar checks whether application is approved or denied. If approved and the name is to be reserved, the Assistant Registrar reserves the name in the IBC database. A company name may be reserved for up to 90 days. Time taken: 2 days
Step 10
The lawyer will return to the Registry to pick up the approved Request for Name Search form
Step 11:
The lawyer will return to the Registry again to submit the following forms and documents to the Registry Clerk for processing:
3
It should be noted that under Caribbean Single Market Economy, this search should include all companies registered within the trading community, not just St. Lucia. There is currently no facility to search all CARICOM companies.
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• • • • •
The approved Request for Name Search and Name Registration form (Form 26) Articles of Incorporation (Form 1) Notice of Address or Change of Address (Form 4) Notice of Directors or Change of Directors (Form 9) Statutory Declaration confirming that applicant(s) is of legal age, sound mind and not bankrupt. This is signed by a different attorney)
Step 12:
The Registry Clerk STAMPS the documents as RECEIVED and sends them to the Assistant Registrar for review to ensure accuracy.
Step 13:
The Assistant Registrar will check the documents for typographical errors, missing or inconsistent information and signatures, inconsistent figures and corresponding words etc. If there are errors, the Assistant Registrar attaches a note to the forms indicating the errors.
Step 14
The lawyer collects the forms for correction and if documents are in order, the Assistant Registrar completes a pay Slip for EC$850 Time taken: 2 days
Step 15
The lawyer returns to the Registry to pick up the pay slip for EC$850 from the Registry Clerk
Step 16
The applicant takes the pay slip to the Cashier and pays the amount.
Step 17
The Cashier STAMPS the cashier slip PAID and issues a Cashier Receipt The Assistant Registrar assigns a Company Number and returns the documents to the Registry Clerk
Step 18
The Registry Clerk enters the information in the Register and prepares the Certificate of Incorporation and send the Certificate of Incorporation to the Registrar.
Step 19
The Registrar signs and dates the Certificate of Incorporation and sends it back to the Assistant Registrar
Step 20
The Assistant Registrar enters the Company Name, Number and Date of Incorporation into the IBC database
Step 21
The Certificate of Incorporation is given to the Registry Clerk who affixes a Red Seal and an Impression Time taken: 2 days. Total Time Taken: 6 days at the Registry of Companies xiv
REQUIRED FORMS
•
• •
FEES REQUIRED STAMPS
REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS
• Received • Approved • Filed • Approved or Not Approved • Received • Paid • Red Seal and Impression Registrar (currently the Deputy Registrar) • •
• NEXT STEPS
The approved Request for Name Search and Name Reservation form (Form 26) • Articles of Incorporation (Form 1) • Notice of Address or Change of Address (Form 4) • Notice of Directors or Change of Directors (Form 9) • Statutory Declaration • Pay Slip • Cashier Receipt Company Name Reservation – EC$25 (this is optional) Incorporation fee – EC$850
•
•
Registry Clerk Assistant Registrar Registrar/Deputy Registrar Registration with Inland Revenue Department (tax registration) Registration with National Insurance Corporation (social security)
3. PROCESS FOR COMPANY INCORPORATION (NONPROFITMAKING) The process to incorporate a non-profit making company is similar to that of a profitmaking company except that the applicant must obtain prior approval from the Office of the Attorney General.
PROCESS FOR INCORPORATING NON-PROFIT-MAKING COMPANIES LEGAL AUTHORITY
Companies Act Chapter 13.01 of 31 Dec 2001 describes the registration process. The content of the forms are specified in regulations of the Act.
PREREQUISITES
Approval of Company Name or Reservation The applicant may check the availability of the proposed name in the Step 1: physical indexes located at the Registry of Companies and Intellectual Property (ROCIP). Note: this is optional.
STEPS IN THE PROCESS As at March 1, 2009
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Step 2:
The applicant completes a Request for Name Search and Name Reservation Form. This form is not provided by the Company Registry. They are drawn up by an Attorney-at-law based on the prescribed forms in the Companies Regulations.
Step 3:
Applicant physically submits the form to the Registry Clerk at the Company Registry
Step 4:
The Registry Clerk stamps the application form as RECEIVED. If the name is to be reserved, the Registry Clerk writes up a pay slip for EC$25 The applicant takes the pay slip to the Cashier at ROCIP and pays the fee.
Step 5:
Cashier STAMPS the pay slip PAID and issues a Cashier Receipt
Step 6:
The receipt is given to the Registry Clerk and the form is stamped ‘FILED’ The Registry Clerk gives the form to the Assistant Registrar
Step 7:
The Assistant Registrar checks the International Business Companies database* to check the availability of the name.
Step 8:
The Assistant Registrar records the results on the form (Form 26) indicating the findings of the search, that is, whether the name is available or if there is a similar name in use
Step 9:
The Assistant Registrar returns the form to the Deputy Registrar Step 10 Step 11:
Step 12:
Step 13: Step 14
The Deputy Registrar reviews the form, approves or refuses the application and stamps APPROVED or NOT APPROVED on the application form. The Deputy Registrar passes the document back to the Assistant Registrar The Assistant Registrar checks whether application is approved or denied. If approved and the name is to be reserved, the Assistant Registrar reserves the name in the IBC database. A company name may be reserved for up to 90 days. The lawyer will return to the Registry to pick up the approved Request for Name Search form
Step 15 [Time taken:
2 days]
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Step 16
The lawyer prepares the incorporation documents and submits them with the approved name search application form with a cover letter to the Attorney General’s Chambers for approval. (This is a separate process which could take months)
Step 17
Time taken: months
Step 18
Upon approval, the Attorney General’s Chambers sends the documents directly to the Registry of Companies and Intellectual Property with a cover letter stating that the application for the company to operate as a non-profit making company has been approved.
Step 19
The Registry Clerk STAMPS the documents as RECEIVED.
Step 20
The Registry Clerk sends the documents to the Assistant Registrar for review to ensure accuracy.
Step 21
The Assistant Registrar will check the documents for typographical errors, missing or inconsistent information and signatures, inconsistent figures and corresponding words etc
Step 22
If there are errors, the Assistant Registrar attaches a note to the forms indicating the errors.
Step 23
The lawyer collects the forms for correction or if documents are in order, the Assistant Registrar completes a pay Slip for EC$850
Step 24
Time taken: 2 days The lawyer returns to the Registry to pick up the pay slip for EC$850 from the Registry Clerk
Step 25
The applicant takes the pay slip to the Cashier and pays the amount.
Step 26
The Cashier STAMPS the cashier slip PAID and issues a Cashier Receipt
Step 27
The Assistant Registrar assigns a Company Number.
Step 28
Documents are returned to the Registry Clerk
Step 29
The Registry Clerk prepares the Certificate of Incorporation
Step 30
The Certificate of Incorporation is sent to the Registrar to be signed and dated
Step 31
The Registrar sends it back to the Assistant Registrar
Step 32
The Assistant Registrar enters the Company Name, Number and Date of Incorporation into the IBC database xvii
The Certificate of Incorporation is given to the Registry Clerk The Registry Clerk affixes a Red Seal and an Impression Time taken: 2 days Total Time Taken: 6 days at the Registry of Companies
REQUIRED FORMS
FEES REQUIRED STAMPS
REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS
•
The approved Request for Name Search and Name Reservation form (Form 26) • Articles of Incorporation (Form 1) • Notice of Address or Change of Address (Form 4) • Notice of Directors or Change of Directors (Form 9) • Statutory Declaration • Pay Slip • Cashier Receipt • Company Name Reservation – EC$25 (this is optional) • Incorporation fee – EC$250 • Received • Approved • Filed • Approved or Not Approved • Received • Paid • Red Seal and Impression Registrar (currently the Deputy Registrar) • •
• CONNECTION TO OTHER MINISTRIES NEXT STEPS
Registry Clerk Assistant Registrar Registrar/Deputy Registrar
Attorney General’s Chambers •
•
Registration with Inland Revenue Department (tax registration) Registration with National Insurance Corporation (social security)
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ACCOMPLISHMENTS USAID-COTS has developed and launched an Online Company Registration at the Registry of Companies and Intellectual Property (ROCIP) – www.rocip.gov.lc on 13 May 2009. This system automated the internal processes at the Registry and provides an online facility for public users to search, reserve and register business names as well as incorporate companies and file post-incorporation documents. The new system has significantly reduced the time it takes to incorporate a company in St. Lucia from 20 days to a maximum of 3 days, and will contribute to improving the country’s ranking in the World Bank Doing Business Survey. The number of steps in the process was reduced by as many as 15 steps for business name search, reservation and registration from 25 to 10 steps as follows: Manual Process at ROCIP
Business Name Search, Reservation and Registration Incorporation of companies
Automated Process at ROCIP
Number of Steps
Number of Days
Number of Steps
Number of Days
25
4
10
Less than 1 day
23
10
12
1 – 2 days
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RECOMMENDATIONS It is recommended that the Government of Saint Lucia also takes the following actions to improve the administrative efficiency of the business registration process in St.Lucia: 1. Consolidate the three application forms for business registration and company incorporation into one form so that one process will be automated rather than three. The applicant will be required to complete only the appropriate section. 2. Put a computer in the search room to allow the applicant to search for the availability of the proposed business name online. This could reduce the time to one day. 3. Allow online access by other relevant government authorities to company and business registration data. 4. Communicate the application process to the public in a brochure and on a website. 5. Establish a one stop shop at the National Development Corporation as suggested by participants at a workshop held at the beginning of the consultancy. 6. Enact e-legislation to facilitate acceptance of e-signatures to remove the requirement for physical submission of documents and for credit card payments 7. Prepare new job descriptions to reflect new duties and responsibilities of staff at the Company Registry as it relates to the new OCRS 8. Digitize company records
NEW PROCESSES AT ROCIP BUSINESS NAME SEARCH AND REGISTRATION (Automated Process as at May 2009 – Online Company Registration System) LEGAL AUTHORITY
Registration of Business Names Act Chapter 13.03 of 31 Dec 2001 describes the registration process. The content of the forms are specified in the Rules of the Act.
PREREQUISITES
None Business Name Search
STEPS IN THE PROCESS Step 1:
Client submits business name search via web-site or via the case officer at ROCIP
Step 2:
Case officer enters applicant’s request into the system.
Step 3:
Assistant Registrar checks the availability of the business name by searching the OCRS for similar names and records findings in the system for review by Registrar.
Step 4:
Registrar approves or rejects applicant’s name search in the system. xx
Step 5:
Case officer checks OCRS and issues name search to the applicant if approved by Registrar Business Name Registration
Step 6:
Applicant submits registration documents via website or via the case officer at ROCIP.
Step 7:
Applicant pays registration fee to ROCIP cashier and the Cashier issues receipt to applicant.
Step 8:
Assistant Registrar checks OCRS, reviews registration documents and clears for approval by Registrar.
Step 9:
Registrar approves application in the system and prints and signs certificate.
Step 10
Case officer issues certificate of registration to applicant. Time taken: less than 1 day
INCORPORATING PROFIT-MAKING DOMESTIC COMPANIES (Automated Process as at May 2009 – Online Company Registration System) LEGAL AUTHORITY
Companies Act Chapter 13.01 of 31 Dec 2001 describes the registration process. The content of the forms are specified in regulations of the Act.
PREREQUISITES
Approval of Company Name or Reservation
STEPS IN THE PROCESS
Business Name Search/Name Reservation Step 1:
Client submits request for name search/name reservation via the website or via the case officer at ROCIP.
Step 2:
If name is to be reserved, case officer selects accordingly.
Step 3:
Applicant pays reservation fee to Cashier at ROCIP and Cashier issues applicant receipt.
Step 4:
Assistant Registrar checks the availability of the business name by searching the OCRS for similar names.
Step 5:
Assistant Registrar records findings in the system for review by Registrar.
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Step 6:
Registrar approves or rejects applicant’s name search in the system.
Step 7:
Case officer issues approved name search to the applicant. Company Incorporation
Step 8:
Applicant submits incorporation documents via website or via case officer at ROCIP.
Step 9:
Applicant pays registration fee to Cashier and Cashier issues applicant receipt.
Step 10
Assistant Registrar reviews incorporation documents and clears for approval by Registrar.
Step 11:
Registrar approves application in the system and prints and signs the certificate of incorporation.
Step 12:
Case officer issues certificate of incorporation Time Taken: 1-2 days
1. OBTAINING A TAX ACCOUNT NUMBER Companies must register at Inland Revenue Department to obtain a taxpayer identification to pay taxes. The Registry of Companies and Intellectual Property does not proactively inform newly registered businesses and companies that they must go to Inland Revenue and “register” with that office, as well, to pay taxes. All companies are supposed to register. Some do not because they say they are only holding companies (with no revenue and therefore pay no taxes). The Inland Revenue website www.irdstlucia.gov.lc includes instructions for registering and for paying taxes. It also includes downloadable forms.
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INCOME TAX REGISTRATION PROCESS LEGAL AUTHORITY
•
Income Tax Act
PREREQUISITES
•
Certificate of Incorporation if a company because of registration number…this number is input into Customs system
•
STEPS IN THE PROCESS
Step 1:
Step 2:
Step 3: Step 4:
Client (or their representative) comes to the Inland Revenue office to pick up and completes either of the following: • Individual Enterprise Registration Form (green) – sole proprietor • Non-Individual Enterprise Registration Form (pink) – company or partnership The Tax Roll Officer checks the database to see if this company has registered already – to avoid duplication. If there is any deviation in names e.g. minor name variations e.g. spelling, must ensure that it is not the same by looking at company number If not registered, Tax Roll Officer enters data into the Standard Integrated Government Tax Administration System (SIGTAS) and a Tax Identification Number (TIN) is generated. Tax Roll Officer fills out a form with name of company, tax account number and addressed. Officer signs and stamps form If foreign companies is registering as a branch in St.Lucia – same process The registration process is complete and only takes a few minutes.
FEES REQUIRED STAMPS
Total Time Taken: 5 minutes Individual Enterprise Registration Form (green) – sole proprietor Non-Individual Enterprise Registration Form (pink) – company or partnership Free of Charge Inland Revenue
REQUIRED SIGNATURES
Tax Roll Officer
OFFICERS INVOLVED IN THE PROCESS CONNECTION TO OTHER MINISTRIES NEXT STEPS
Tax Roll Officer
REQUIRED FORMS
• •
Company Registry Customs and Excise Department After registering businesses must send their employees to register at the Inland Revenue Department so that they can pay their Pay As You Earn (P.A.Y.E.) taxes and obtain a tax code. Inland Revenue will send the employer a P.A.Y.E remittance form monthly basis which must be used when remitting to the Inland Revenue Department deductions in respect of P. A.Y.E. from the payments to employees. To register and obtain a tax code, the applicant completes a Tax Declaration Form (TD1) and submits it to the Tax Roll Unit of the Inland Revenue Department. In some cases the employee will be required to complete an Individual Registration Form. This is a critical requirement for SIGTAS.
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RECOMMENDATIONSÂ Â 1. ROCIP should provide a list of newly registered business and companies to Inland Revenue Department, Ministry of Commerce and Industry and National Insurance Corporation on a weekly or monthly basis to improve compliance relevant laws and regulations. 2. The Inland Revenue Department assigns each company a TAN (Tax Identification Number). Inland Revenue should explore using the same number as that of Customs or the Business Number as a move towards developing a single identification number for companies and businesses in St.Lucia. 3. Inland Revenue should request a business registration certificate from sole proprietors for tax registration as is done for companies or collaborate with ROCIP to establish a mechanism to facilitate automatic registration of a company or business with IRD at the time of business registration/company incorporation
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2. REGISTERING WITH NATIONAL INSURANCE CORPORATION (NIC) FOR SOCIAL SECURITY Employers are required to register for social security with the National Insurance Corporation (NIC). Individuals who are not registered as a company or steadily employed are encouraged to register voluntarily and contribute toward their retirement. The minimum monthly contribution is $50 EC. Individuals who are not regularly employed are encouraged to contribute toward their retirement. The process is simpler with the completion of an Application for Registration Voluntary Contributors (Form VC-1). According to the World Bank this process takes only 1 day. The registration service is efficient and well organized. The customer queuing system is easily accessible and functioning. Brochures explaining the benefits are readily available and the registration and benefit processes are automated. There are three cashier booths. The website, http://www.stlucianis.org is clear and well organized and includes a copy of the National Insurance Corporation Act. The most important form, the C3, is downloadable and can be submitted electronically.
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NATIONAL INSURANCE REGISTRATION PROCESS LEGAL AUTHORITY
•
National Insurance Corporation Act. No 18 of 2000
PREREQUISITES
•
Certificate of Incorporation if a company
STEPS IN THE PROCESS
Step 1:
Employer/Self-employed comes to NIC and goes to Customer Service Agent
Step 2:
Customer Service agent gives the applicant the R1 form and explains the documents required to register. These include: • Copy of Certificate of Registration (if a Business) • Copy of Certificate of Incorporation (if a Company) • Notice of Directors (if a Company) • Notice of Registered Office (if a Company)
Step 3:
Employer fills out the application form and returns to NIC with the above documents.
Step 4:
The Customer Service Representative reviews the form and enters the application data directly into the computer system and a registration number is generated automatically.
Step 5
The Customer Service Representative STAMPS the form - RECEIVED. This form is a back-up copy
Step 6
The Customer Service Representative gives the employer the registration number and a blank C3 Form to enter the names of the employees. Time taken: 1 day
REQUIRED FORMS
• • •
Application for Registration by Employer (Form R1) Self Employed Persons Application for Registration. (Form SE-1) C3 Form
FEES
Free of Charge
REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS CONNECTION TO OTHER MINISTRIES NEXT STEPS
Applicant Tax Roll Officer Company Registry The computer system will generate a C3 form every month for the employer with the names of the employees. An NIC clerk mails the C3 to the employer. The employer fills in the monthly contribution amounts for each employee and prepares a cheque for the total amount. The employer sends the C3 and the cheque to the NIC on or before 7th of the month. If the contribution arrives after the 7th a late a fee is assessed. The fee amount is clearly stated on the C3. An NIC Cashier receives the C3 and the check every month. The NIC Clerk enters the employee data into the computer system.
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RECOMMENDATIONSÂ Â 1. The downloadable registration form should be placed on the NIC website. 2. NIC should collaborate with ROCIP to establish a mechanism to facilitate automatic registration of a company or business with NIC at the time of business registration/company incorporation
xxvii
SECTION II: Current INVESTMENT APPROVAL, PERMIT AND LICENSING adminstrative processes
1. TRADE LICENSE A trade license is required by non-nationals or foreign-owned companies wishing to operate a business in St.Lucia.
A trade license is not usually granted to foreign
companies wishing to operate a type of business which is reserved for nationals.
When a Trade License application is being reviewed by the Ministry of Trade a ministry representative can, in theory, review the list of companies – either using the manual indexes or the on-line IBC database. In practice this does not happen. We recommend that the Ministry of Trade seeks the permission of IBC to access the data, until the Registry database is operational, to ensure that companies/businesses that are granted a Trade License are properly registered.
There is an annual license fee which expires on 31 December in the year. This fee is not prorated and an applicant might pay the full license fee even if the application is approved in December of that year. Trade license must be renewed annually thereafter.
New Applications can be submitted at any time. However, the annual license fee is $1000 EC and it is not prorated. Trade License should be exhibited at the place of business.
The Board currently consists of: Chairman, PS Ministry of Trade, Secretary, Trade Officer, St. Lucia Trade Union Federation representative, Royal St. Lucia Police Force representative, Chamber of Commerce representative, St. Lucia Coalition of Service Industries Inc. representative, Ministry of Labor representative, M&C Home depot Customs broker representative
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TRADE LICENSE APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
• •
Trade License Act No. 5 of 1985 and No. 4 of 1997 Aliens (Licensing Act) #20 of 2002 - Part III, Alien Companies
PREREQUISITES
Certificate of Incorporation
STEPS IN THE PROCESS
Step 1:
Applicant or their representative (lawyer, accounting firm or the National Development Corporation, NDC) obtains copies of the Trade License Application form at the National Printing Corporation at the cost of $150 or the form can also be downloaded from the Ministry of Trade website at (www.commerce.gov.lc).
Step 2:
Applicant or their representative submits the Trade License Application Form to the Ministry of Trade. In some instances, the Secretary may assist with filling out the application and answer questions
Step 3:
The receptionist accepts the form, date stamp the form
Step 4:
The receptionist gives the form to the Secretary of the Advisory Board/Ag Director of Commerce and Industry Section for review.
Step 5:
The Secretary will check that the business type is not reserved for nationals according to Cabinet Conclusion 1984: Areas of Business Reserved for Nationals. If it is, the Secretary will advise the client accordingly. The applicant may withdraw the application or ask that it is submitted to the Board. The Secretary will number the form and identify whether it is a new application or renewal and assigns a number to it accordingly. He records the application and number in a book.
Step 6:
The Secretary of the Board gives the application to his secretary who makes copies of all new applications and she will circulate them to the Chairman and members of Trade License Advisory Board before the Board meeting every month. It is circulated within a week before the Board meeting. Renewal applications are not copied and circulated but submitted to the Board members at the meeting. The Trade License Advisory Board should meet the first Thursday of every month to consider new and renewal applications. Time taken: Up to 4 weeks
Step 7:
If the Board requires additional information from the applicant, the application is deferred until the information is provided at which time the application will be reconsidered at the next Board meeting. The Secretary of the Board will call the applicant. If there are concerns, Inland Revenue and Police Force representatives may investigate conduct their own investigations without informing the applicant. The Board may defer a decision on applications for renewals pending clearance from Inland Revenue Department that taxes have been paid.
Step 8:
The Secretary to the Board, based on records and minutes of meeting will xxix
indicate on each application, the Board’s recommendation for approval or not and sends it to the Permanent Secretary/Chairman of the Board. Step 9:
The Permanent Secretary/Chairman reviews the applications and sends them to the Minister for final decision.
Step 10
The Minister reviews the application and the decisions of the Board. The Minister may accept the Board’s recommendation and may approve or not approve the application or he may request further clarification or additional information before making his final decision. S/he writes her decision approved or not approved, etc - in the appropriate section of the application form and signs it. The Minister returns the signed application to his/her secretary.
Step 11:
Time Taken: 2 -4 weeks (Could take longer if the Minister is out of office)
Step 12:
The Minister’s secretary returns the application form to Secretary of the Board.
Step 13:
The Secretary of the Board waits for the applicant to call regarding the status of the application before any further action is taken. If the application was not approved, the applicant may seek clarification from the Secretary of the Board and if not satisfied will seek audience with the Chairman/Permanent Secretary. The Chairman may ask the applicant to resubmit the application for re-consideration.
Step 14 Step 15
If the application is approved, the Secretary of the Board prepares Form A in duplicate for the applicant. The applicant takes the Form A to the Accountant General Department (Treasury Department) and makes the payment and submits proof of payment to the Secretary either in person or by fax.
Step 16
The Secretary of the Board records the receipt number and amount in book indicating that payment has been made. He gives his secretary, the application, the receipt and the Form A.
Step 17
The secretary to the Secretary of the Board prepares the Trade License Certificate and gives it to the Secretary of the Board
Step 18
The Secretary of the Board signs the certificate and records the license number in another notebook.
Step 19
The secretary of the Secretary of the Board calls the applicant to inform him or her that the license is ready. She prepares a letter to Inland Revenue Department indicating the name on the license etc for signature by the Secretary of the Board Time Taken: up to 1 week after the applicant calls
REQUIRED FORMS
FEES
• • •
Application for Trade License Form A for payment Trade License Certificate
Fixed Annual License fee – EC$1,000 which is not prorated xxx
REQUIRED STAMPS
License is stamped with name of Ministry
REQUIRED SIGNATURES
Minister of Trade, Chairman of the Board and Secretary of the Board
OFFICERS INVOLVED IN THE PROCESS CONNECTION TO OTHER MINISTRIES NEXT STEPS
Secretary of the Board Secretary Inland Revenue Department, Police The same process applies for renewal of application for a trade license.
RECOMMENDATIONS AND PROPOSED PROCESSES General Recommendations 1. The Trade License Application form should be downloadable from Ministry of Trade website at (www.commerce.gov.lc). 2. Amend legislation to: a. Confer power to the Minister to issue penalties prescribed by law for noncompliant companies so that there is an incentive to obtain a trade license and renew it on time annually. However, the non-compliant rate needs to be determined to justify this action b. State criteria for issuing a trade license 3. Prepare a checklist for administering the approval process. 4. The Minister could delegate this authority to make the final decision to the Permanent Secretary. Objection to the decision could be made to the Minister. This will improve transparency and eliminate the highly discretionary element in the process 5. Ministry of Trade should have access to the database of the Online Company Registration System. 6. If the Ministry of Trade could consider accepting payment at the Ministry so that the applicant is not required to pick up the notice of approval from the Ministry, go to the Treasury Department to make payment and return to pick up the Certificate.
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7. The Government should consider eliminating the need to acquire a trade license as it is discriminates against foreign companies and against WTO rules
Proposed New Processes The future Trade License approval process could look like this: STEPS IN THE PROCESS
Step 1:
Client or their representative downloads a copy of the Trade License Application the Ministry of Trade website at (www.commerce.gov.lc) or obtain a copy at the Ministry of Trade
Step 2:
Client or their representative submits the Trade License Application to receptionist at the Ministry of Trade physically. Or, the client submits the application form via email directly to the Secretary of the Board who will confirm receipt via email.
Step 3:
The receptionist gives the form to the Secretary of the Advisory Board
Step 4:
The Secretary reviews the applications according to set criteria and makes recommendations to the Trade Licence Advisory Board.
Step 5:
The Secretary compiles the applications electronically round robin for approval.
and
circulates
them
Time Taken: 1 day Step 6:
The Board members may approve the applications during this process which should take no more than 2 days. If there are any queries or issues regarding an application, it will be referred to the Secretary to obtain additional information if required and to the Board for discussion the next Board meeting Time taken: 2 days
Step 7:
If application is approved by the Board during the round robin: Upon receipt of approved applications, the Secretary prepares a memorandum to the Permanent Secretary seeking final approval for the application.
Step 8:
If the application is not approved and requires additional information, the Secretary will make request the additional information or clarification in writing from the applicant. If the application needs to be discussed at a Board meeting, the Secretary will prepare the necessary documentation for the next Board meeting which is usually held once a month. Depending on the number of applications and the urgency of the application, the Secretary a meeting could be called sooner. Time taken: 1 day
Step 9:
Upon receipt the recommendation for approval by the Board, the Secretary submits this electronically with the scanned application to the xxxii
Permanent Secretary. Step 10 Step 11: Step 12:
Step 13: Step 14
The Permanent Secretary reviews the application and returns the application to the Secretary electronically stating whether it is approved or not approved giving reasons for non-approval. For approved applications: The Secretary of the Board informs the applicant and prepares and prints the Certificate for signature by the Minister. Minster signs the Certificate and returns it to the Secretary of the Board. Time taken: 2 days The Secretary gives the receptionist the Certificates The applicant pays the receptionist who issues a receipt and the Certificate to the applicant.
Total Time Taken for applications not requiring discussion at the Board Meeting: 6 days Should the applicant query the non-approval of his application, he may seek audience with the Chairman of the Board or the Permanent Secretary. If he is not satisfied, he may then seek recourse to the Minister of Trade and Industry. If necessary, the applicant may resubmit his application for consideration.
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1. Fiscal Incentives Medium- and Large Manufacturing Companies Under the Fiscal Incentives Act No 15 of 1974, the Government of Saint Lucia grants fiscal incentives to local enterprises in the manufacturing sector. Enterprises manufacturing an approved product by an approved enterprise as declared by Order of Cabinet may be granted: • • • •
A Tax Holiday for period up to fifteen (15) years Waiver of import duties and consumption tax on imported plant, machinery and equipment Waiver of Import Duty and Consumption Tax on imported raw materials and packaging materials An export allowance which is tax relief on export earnings
The range of fiscal incentives granted is dependent on the potential value of exports outside Caricom, the local value added content and the total investment and employment generated. In order to qualify for fiscal incentives, the enterprise must be incorporated in St.Lucia, contribute to the economic development of the country, utilize local human and natural resources including training of local personnel. Special consideration is given to export oriented companies and those that form linkages with other economic sectors. For enterprises that do not qualify for fiscal incentives under the Fiscal Incentives Act, the government may, upon application, grant duty free concessions on plant, machinery, equipment raw material and packaging. In addition, enterprises may be exempt from the payment of service charge under the Service Charge Amendment Act 1999) and from the payment of the environmental levy on raw and packaging materials. Other concessions available to manufacturing enterprises include a credit of 20%-60% on consumption tax paid the previous year for retooling; an income tax allowance for hiring university graduates. In addition, companies with annual sales of up to $250,000 will be exempted from paying taxes.
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FISCAL INCENTIVE APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
Fiscal Incentives Act No. 15 of 1974
PREREQUISITES
Certificate of Incorporation Trade license approval if required
STEPS IN THE PROCESS
Step 1: Step 2:
An applicant fills out and submits an Application for Fiscal Incentives along with a cover letter addressed to the Permanent Secretary to the receptionist at the Ministry of Trade.
Step 3:
The receptionist forwards the application to the Permanent Secretary’s secretary (unopened).
Step 4:
The Permanent Secretary’s secretary opens the request, logs it into an electronic register and forwards it to the Permanent Secretary.
Step 5: Step 6:
The Permanent Secretary reviews the request to decide which department it goes to (SEDU or Commerce and Industry and indicate additional considerations) and forwards it to the Director of the Commerce and Industry or SEDU or Investment Facilitation Officer The Director reviews the request and determines the appropriate sector and forwards it to the officer assigned to that sector for processing For new applications, the officer then reviews the application and if additional information is required, the officer will request it.
Step 7: Step 8: Step 9:
Step 10 Step 11: Step 12: Step 13:
Step 14
For renewal of applications: The officer reviews the application and the applicant history recording in the company files. The Officer visits the site if necessary. The officer prepares a Memorandum to Cabinet with recommendations for incentives in accordance with criteria set in the Fiscal Incentives Act (could be zero tax holiday) The Memo is submitted to the Director for review and agreement on recommendations. If in agreement, the Director forwards the application to the Permanent Secretary. If not in agreement, the Director makes his own corrections/recommendations on the memo The Permanent Secretary reviews it and may make corrections and include recommendations on the memo and returned to the Director of Commerce or SEDU to be incorporated in memorandum. If the Permanent Secretary is in agreement, the file is forwarded to the Minister via his secretary for review. The Minister reviews the file, memo and may make his own recommendations in xxxv
consultation with the officer who prepared the memo. If in agreement, the Minister signs the memorandum to cabinet. Step 15 Step 16 Step 17 Step 18 Step 19
The Minister returns the file to the Permanent Secretary via his secretary and the Permanent Secretary’s secretary If signed by the Minister, the Permanent Secretary sends the memo to the receptionist via his secretary. If not approved, the Permanent Secretary returns the memo to the Director via his secretary for revision incorporating the minister’s comments The receptionist makes 25 copies (one for each Minister of Cabinet, Cabinet Secretary, Governor General and Attorney General and for filing) The receptionist sends the Memorandum and the company file to the Cabinet Secretary at the Office of the Prime Minister
Step 20
The Cabinet Secretary includes the Memorandum on the agenda for approval the next weekly Cabinet meeting
Step 21
Depending on whether there is sufficient time, the memorandum will be discussed and approved, denied or deferred to another meeting. Additional information may be required and returned to the Cabinet Secretary to be returned to the Ministry of Trade
Step 22 Step 23
If approved, the decision is ratified at another Cabinet meeting.
Step 24
The Cabinet Secretary prepares the Cabinet Conclusion and sends it to his secretary.
Step 25
The secretary forwards a copy of the cabinet conclusion to the Minister of Trade. The company files are later returned to the Ministry mainly upon request.
Step 26
The receptionist accepts the correspondence and forwards it to the Minister’s Secretary
Step 27
The Minister’s Secretary records the correspondence and forwards it to the Permanent Secretary via his secretary. The Permanent Secretary’s secretary records it.
Step 28
The Minister sends the cabinet conclusion to the Permanent Secretary via his secretary and the Permanent Secretary’s secretary The Permanent Secretary forwards the cabinet conclusion to the Director of Commerce or SEDU through his secretary The Director of Commerce sends it back to his secretary who prepares letters to: i. The Inland Revenue Department, Customs and Excise Department informing them of the decision. Note a copy of the conclusion is not sent, however, the Customs Department normally requests it. ii. The applicant including the cabinet conclusion number and year of approval iii. Attorney General’s Department for preparation of a Statutory Instrument in the form of a Fiscal Incentive order if the application is for fiscal incentives (NB: fiscal incentives can only be awarded upon publication of this fiscal incentive order xxxvi
Secretary informs officer that of the conclusion The Attorney General’s Department prepares the Statutory Instrument. The prepared statutory instrument is sent to the Ministry of Trade for vetting and Ministry sends it back to the Attorney-General’s Office who sends it to the Office of the Prime Minister for signature by the Prime Minister. The Office of the Prime Minister sends the statutory instrument to the National Printing Corporation for publication in two consecutive issues of the weekly Official Gazette. Total Time Taken: 6 weeks to several months REQUIRED FORMS
Application for Fiscal Incentives (not same as used by NDC or Tourism)
FEES
Free of Charge None
REQUIRED STAMPS REQUIRED SIGNATURES CONNECTION TO OTHER MINISTRIES
NEXT STEPS
Minister • Attorney General Office • Inland Revenue Department • Customs Department • Sectoral Ministries • Office of Prime Minister • National Printing Corporation Inform Customs and Excise Department and Inland Revenue Department of the duty free concessions and the tax incentives granted. The letter will include the Number and Year of the Cabinet Conclusion.
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2. APPLICATION FOR DUTY FREE CONCESSIONS (Micro and Small Enterprises) In St.Lucia, a micro-enterprise is a locally-owned business with five or less persons employed with an annual turnover of less than $100 0000, net assets of less than $75,000. A small enterprise is one with 20 or less employees, an annual turnover of less than $500,000 with net assets of $250,000 and must be owned by nationals. Enterprises under this category may apply to the Ministry of Trade and Industry for duty free concessions on plant, equipment, raw and packaging materials.
DUTY FREE CONCESSIONS APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
Policy
PREREQUISITES STEPS IN THE PROCESS
Step 1:
An applicant completes and submits two copies of an Application for Fiscal Incentives along with a cover letter addressed to the Permanent Secretary to the receptionist at the Ministry of Trade.
Step 2:
The receptionist forwards the application to the Permanent Secretary’s secretary (unopened).
Step 3:
The Permanent Secretary’s secretary opens the request, logs it into an electronic register and forwards it to the Permanent Secretary.
Step 4:
The Permanent Secretary reviews the request and forwards it to the Director of the Commerce and Industry.
Step 5:
The Director reviews the request and forwards it to the relevant officer for processing
Step 6:
For new applications, the officer then reviews the application and if additional information is required, the officer will request it.
Step 7:
For renewal of applications: The officer reviews the application and the applicant history recordED in the company files.
Step 8:
The Officer visits the site if necessary.
Step 9:
The officer prepares a Memorandum to Cabinet with recommendations for incentives in accordance with criteria set in the Fiscal Incentives Act.
Step 10
The Memo is submitted to the Director for review and agreement on recommendations. xxxviii
Step 11:
If in agreement, the Director forwards the application to the Permanent Secretary. If not in agreement, the Director makes his own corrections/recommendations on the memo
Step 12:
The Permanent Secretary reviews it and may make his own corrections/ recommendations on the memo and returned to the Director of Commerce to incorporate in memorandum.
Step 13:
If the Permanent Secretary is in agreement, the file is forwarded to the Minister via his secretary for review and agreement.
Step 14
The Minister reviews the file, memo and recommendations and make his own recommendations if necessary. If in agreement, the Minister stamps signs the memorandum to cabinet.
Step 15
The Minister returns the file to the Permanent Secretary via his secretary and the Permanent Secretary’s secretary
Step 16
If signed by the Minister, the Permanent Secretary sends the memo to the receptionist via his secretary. If not approved, the Permanent Secretary returns the memo to the Director via his secretary for revision incorporating the minister’s comments
Step 17
The receptionist makes 25 copies (one for each Minister of Cabinet, Cabinet Secretary, Governor General and Attorney General)
Step 18
The receptionist sends the Memorandum to the Cabinet Secretary at the Office of the Prime Minister
Step 19
The Cabinet Secretary includes the Memorandum on the agenda for approval the next weekly Cabinet meeting Depending on whether there is sufficient time, the memorandum will be discussed and approved, denied or deferred to another meeting. Additional information may be required and returned to the Cabinet Secretary to be returned to the Ministry of Trade If approved, the decision is ratified at another Cabinet meeting.
Step 20
The Cabinet Secretary prepares the Cabinet Conclusion and sends it to the secretary
Step 21
The secretary forwards a copy of the cabinet conclusion and the memorandum to the Minister of Trade
Step 22
The receptionist accepts the correspondence and forwards it to the Minister’s Secretary
Step 23
The Minister’s Secretary records the correspondence and forwards it to the Minister of Trade
Step 24
The Minister sends the cabinet conclusion and memo to the Permanent Secretary via his secretary and the Permanent Secretary’s secretary
Step 25
The Permanent Secretary forwards the cabinet conclusion and the memo to the Director of Commerce xxxix
Step 26
The Director of Commerce forwards the cabinet conclusion and the memo to the officer responsible
Step 27
The officer prepares the following letters to: i. The Inland Revenue Department, Customs and Excise Department informing them of the decision. Note a copy of the conclusion is not sent, however, the Customs Department normally requests it. ii. The applicant including the cabinet conclusion number and year of approval Total Time Taken: 6 weeks to several months
REQUIRED STAMPS
None
REQUIRED SIGNATURES CONNECTION TO OTHER MINISTRIES NEXT STEPS
Minister Attorney General Office Inform Customs and Excise Department and Inland Revenue Department of the duty free concessions and the tax incentives granted. The letter will include the Number and Year of the Cabinet Conclusion.
RECOMMENDATIONSÂ 1. Amend legislation to confer power to Minister to approve duty free concession/tax incentives up to certain level of investment 2. The Minister could establish a board to review and approve applications for duty free concessions up to a certain level 3. A checklist with strict criteria should be established for considering duty free concessions/incentives 4. The decision of the board may be ratified by Cabinet periodically
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3. TOURISM INCENTIVES APPROVAL The Government awards tourism incentives (income tax holidays and customs duty exemptions) to tourist developments and tourism-related activities in St.Lucia.
In
addition to the fiscal incentives proposal package the Ministry of Tourism may also recommend exemptions on Property Tax, Vendor Tax, Alien Land Holding license and work permits.
TOURISM INCENTIVES APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY PREREQUISITES
STEPS IN THE PROCESS
Tourism Incentive Act No. 7 of 1996 •
Certificate of incorporation
Step 1:
The applicant submits an application letter with business plan and development plans to the receptionist at the Ministry of Tourism
Step 2:
The receptionist passes it on to the Permanent Secretary’s secretary
Step 3:
The Permanent Secretary’s secretary logs into the book and stamps RECEIVED and submits it to the Permanent Secretary for review
Step 4:
The Permanent Secretary reviews the application and sends it to the Deputy Permanent Secretary
Step 5:
The Deputy Permanent Secretary reviews the application and returns it to the Permanent Secretary’s secretary to determine whether the application is eligible for tourism incentives under the Tourism Act or whether it should be forwarded to another ministry
Step 6:
The Permanent Secretary returns it to his secretary for appropriate action. The secretary prepares a letter of acknowledgment of receipt to the applicant and indicates any additional documents that might be required. If the application is to be processed by the Ministry, the secretary sends the application to the Secretary of the Policy Administration and Investment Facilitation Unit of the Ministry of Tourism.
Step 7:
The secretary logs the application as received and indicates which officer is assigned to the case
Step 8:
The Officer reviews the application. Steps 1- 8: Time Taken = 3 days.
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Step 9:
The Officer sends a letter to applicant acknowledging receipt of the application. The letter requests that the applicant begins preparing the Bill of Quantity (which identifies the specific items that would be duty free) and a complete set of plans submitted to the DCA. Step 9 takes 2 days.
Step 10
Officer will interview the applicant and perhaps conduct a site visit. Step 10: Time Taken = 5 days.
Step 11
Officer prepares a Cabinet Memo (the proposal for Cabinet) using a standard form and sends it to the Secretary of the Unit.
Step 12
The secretary of the unit logs the Cabinet Memo as received.
Step 13
The Head of the Unit (Xavier) reviews the Cabinet Memo.
Step 14
Step Head of the Unit submits the Cabinet Memo to the PS.
Step 15
PS reviews the Cabinet Memo and sends it to the Minister.
Step 16
Minister reviews the Cabinet Memo. If he approves he will sign the Cabinet Memo.
Step 17
Minister gives the Cabinet Memo to his Secretary.
Step 18
Secretary to the Minster (or the PS) makes 25 copies of the Cabinet Memo and sends them to the Cabinet Secretary.
Step 19
Cabinet Secretary places the Cabinet Memo on the agenda of the next Cabinet meeting (every Thursday).
Step 20
Cabinet reviews the Cabinet Memo during their meeting. They can approve it, deny it or defer a decision.
Step 21
If Cabinet approves the application, the Cabinet will issue an Early Release notification.
Step 22
At the next cabinet meeting (the following Thursday) the approval decision will be ratified.
Step 23
The Secretary to the Cabinet sends a copy of the Cabinet Conclusion to the Minister of Tourism
Step 24
Minister of Tourism sends the Cabinet Conclusion through his secretary to the Permanent Secretary
Step 25
The Permanent Secretary sends a copy of the Cabinet Conclusion to the Tourism Officer
Step 26
The Officer informs that applicant that the application has been approved and requests copies of the Bill of Quantity and the DCA drawings. The Officer also writes to Customs, Inland Revenue and the Ministry of Tourism informing them that the Memo has been approved. xlii
Step 27
Applicant sends copies of the Bill of Quantity and the DCA drawings to the Officer.
Step 28
Ministry of receives the documents and STAMPS them APPROVED. The Officer sends the approved documents to Customs via the receptionist
REQUIRED FORMS FEES
Application Form: $100
REQUIRED STAMPS
RECEIVED
REQUIRED SIGNATURES
Minister of Tourism and Civil Aviation or Permanent Secretary
CONNECTION TO OTHER MINISTRIES
Police Record required from Police Headquarters Trade License required from Ministry of Commerce Work Permit or Certificate of Exemption is sent to the Immigration Audit Department National Development Corporation may facilitate the process Full approval by DCA (is still REQUIRED) Customs must input the Bill of Quantity into ASYCUDA Register the company with the Registry
NEXT STEPS
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4. SPECIAL DEVELOPMENT AREA CONCESSIONS
The Special Development Areas Act No.2 of 1998 was passed with the intention to promote balanced spatial and economic development in St.Lucia and as such focuses on areas outside the capital, Castries. Under the Special Development Areas Act 1998, an investor/developer of specific business types may apply for incentives or concessions if an investment project will be located in a geographic area designated by the Act as a Special Development Area. These business types include: •
conference centers,
•
residential complexes,
•
commercial and industrial buildings including office complexes,
•
businesses directed at expansion of tourism services,
•
water-based activities,
•
heritage and eco-tourist projects,
•
arts and cultural investments,
•
agricultural based activities,
•
fisheries-based activities
Unlike other incentives, cabinet approval is not required. The Office of Private Sector Reform (OPSR) is responsible for administering the process is under the Ministry of Commerce but the Minister of Finance grants final approval. A company may apply for incentives under the Special Development Areas Act as well as the Fiscal Incentives Act if it is a manufacturing concern.
Companies may qualify for the following: •
Import duty, stamp duty and consumption tax for the construction of new buildings and the renovation of existing buildings
•
Land and house tax
•
Stamp duty payable by vendors and purchasers on the initial purchase of the property
•
Lower corporate tax
•
Higher tax allowances/accelerated depreciation
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SPECIAL DEVELOPMENT AREA INCENTIVES APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
Special Development Areas Act No 2 of 1998
PREREQUISITES
Certificate of Incorporation
STEPS IN THE PROCESS
Step 1:
Applicant completes an “Application for Concessions Under the Special Development Areas Act. No.2 of 1998.” This form is available and downloadable from the OPSR website, www.opsr.org.lc
Step 2:
Applicant submits the form to the Executive Assistant of the Office of Private Sector Reform
Step 3:
The Executive Assistant reviews the application and consults with the OPSR Director
Step 4:
The Executive Assistant sends the application to the Director
Step 5:
Director assess the application and the project benefits to the area in terms of employment and/or investment
Step 6:
Prepares a memo to the Minister stating her recommendation and sends it to the Minister of Commerce. Director also prepares official responses (3 originals) to the applicant to be signed by the Minister if application is approved
Step 7:
The Minister reviews the application and memo and approves, denies or defers a decision on the application. Minister signs the 3 copies of responses if application is approved.
Step 8:
Minister of Finance returns the application form to the Director via his secretary
Step 9:
The secretary keeps a copy at the Ministry and 2 copies sent to OPSR.
Step 10
The Executive Assistant files one copy and sends the other to applicant
REQUIRED FORMS REQUIRED STAMPS REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS CONNECTION TO OTHER MINISTRIES NEXT STEPS
“Application for Concessions Under the Special Development Areas Act. No.2 of 1998.” None Minister of Finance on official response 1. Executive Assistant 2. Director of OPSR 3. Minister of Finance National Development Corporation (NDC) Publication of the Statutory Order in the Official Gazette
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5. Alien Land Holding License Non-nationals wishing to purchase or lease property in St.Lucia require an Alien Landholding License. The Prime Minister must approval the transaction because leasing or selling land to a foreigner is considered an issue of national sovereignty.
• A local lawyer must register the license • It is a permanent license which does not require renewal • The license is granted for a specific property or plot of land and is not transferable • The cost of the license upon grant is EC$5,000.00, increasing for properties larger than one (1) acre in extent Below are the fees for the license according to the size of the land: Up to 1 acre of land
US$1,859.00
ECD $5,000.00
Over 1 acre and up to 10 acres
US$3,718.00
ECD $10,000.00
Over 10 acres and up to 20 acres US$7,435.00
ECD $20,000.00
Over 20 acres and up to 50 acres US$11,153.00
ECD $30,000.00
Over 50 acres and up to 100 acres
US$14,870.00
ECD $40,000.00
100 acres and over
US$18,588.00
ECD $50,000.00
Once granted the License is registered at the Land Registry of St Lucia where it is given an Instrument Number. This number and the details of the License are then entered on the Deed of Sale being the Instrument drawn up and executed by the parties to give effect to the actual Conveyance. Upon registration of the Deed of Sale, Stamp Duty of 2% of the purchase price is payable by the Purchaser. Incidental registration charges amount to approximately EC$150.00. The Vendor is subject to the payment of Vendor’s Tax being up to 5% of the agreed sales price for a local purchaser and a flat rate of 10% for a non-national. Legal Fees range between 3% - 5% of the purchase price, and is usual payable by the purchaser in two (2) installments. With many of the current Developments underway, a panel of lawyers is selected who for an agreed set fee offer their services to purchasers of units at the development. These fees depend upon the cost of the units at the development and the number of potential purchasers each panel lawyer will receive, and have thus far ranged from US$5,000 to US$8,000 for the various developments currently under construction.
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Some purchasers opt to purchase the property through the vehicle of a Company due to the tax savings upon sale of 9.5%. Costs inclusive of Legal fees to form a local Company are approximately EC$4,250.00. If the ownership/directorship of the company is such that 50% or more are non-national, then the Company will require an Aliens License in the above manner.
ALIEN LICENSE APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
•
Aliens (Licensing Act) #20 of 2002
PREREQUISITES
• • •
If a company, certified copy of the Articles of Incorporation If a company, certified copy of the Certificate of Incorporation If a company, Certificate of Good Standing (from the Registry of Companies and Intellectual Property) Alien License if non-national owns more than 50% of shares. See administrative process below
•
STEPS IN THE PROCESS
Step 1:
Applicant or his/her representative, fills out an application form for License to Hold Land as Owner/Lessee in St. Lucia
Step 2:
Applicant or his/her representative pays a non-refundable application fee of $1,500 to the Treasury.
Step 3:
Applicant or his/her representative submits the application with a cover letter and the following documents/information to the Senior Executive Officer at the Ministry of Physical Development: • Receipt for $1,500 non-refundable application fee • Profession or employment status (short form CV/Resume) • Statutory Declaration as to character of the applicant • Passport and Citizenship details (Copy Data pages of Passport) • 4 color photographs of the foreign directors • 1 complete set of fingerprints of foreign directors • 1 copy of the passport of each foreign director • Bank reference for foreign directors • Profile of applicant/Directors of Company – • Land Registry Map Sheet showing the property • Certified copy of • Certified copy of the Articles of Incorporation • Certified copy of the Certificate of Incorporation • Certificate of Good Standing • Purchase Price of the Property
Step 4:
Senior Executive Officer checks that documents are submitted. If not, the application is returned to the applicant or his or her representative. If all is in order, the Senior Executive Officer gives the application to the Secretary xlvii
Step 5:
The secretary records the application and date in manual index.
Step 6:
Secretary returns the application to Senior Executive Officer.
Step 7:
The Senior Executive Officer prepares the following: • Memo to the Prime Minister (if the application is for ½ acre or less) or to Cabinet (if the land is over ½ acre) with recommendations • Memo to Police Commissioner • Letter to applicant or his or her representative informing them that application has gone to Prime Minister or Cabinet
Step 8:
The letter is sent to the Head of the Section for signature and returned to Senior Executive Officer upon signature. Letter is sent to the applicant/representative
Step 9:
Memo is sent to Permanent Secretary to sign off via the Permanent Secretary’s secretary. The Permanent Secretary reviews the memo and if approved by the Permanent Secretary, he or she returns the application to the Secretary who sends it to the Minister of Physical Development for signature via the Minister’s Secretary
Step 10
Letter of Approval from Prime Minister or Cabinet Conclusion is received by Permanent Secretary
Step 11:
Permanent Secretary sends the Letter of Approval by the Minister or copy of Cabinet Conclusion to the Senior Executive Officer. Senior Executive Officer sends letter back to secretary
Step 12:
Letter is typed by Secretary informing the attorney of the approval.
Step 13:
Letter is sent to Permanent Secretary for signature.
Step 14
Letter is posted to lawyer and copies are sent to: • Registrar of Lands • Commissioner of Police • Commissioner of Crown Lands • Attorney General • Comptroller of Inland Revenue
Step 15
The lawyer prepares a draft license which is forwarded to Attorney General.
Step 16
The Attorney General sends the draft license to Survey and Mapping.
Step 17
Survey and Mapping compares the draft license to the Survey Plan and Map sheet and ensures that the price quoted agrees with the price in the Statutory Declaration.
Step 18
Survey and Mapping returns the draft license to the Attorney General.
Step 19
Attorney General’s Office informs the lawyer that the licenses are to be prepared on the proper paper and that duty payment should be made to Inland Revenue. xlviii
Step 20
Attorney pays duty at Inland Revenue.
Step 21
Attorney General’s Office sends the license to the Prime Minister office.
Step 22
Prime Minister’s office sends the license to the Governor General’s Office .
Step 23
Governor General’s Office affixes a seal.
Step 24
Governor General’s Office returns the license to the Prime Minister’s Office.
Step 25
Prime Minister’s Office returns the license to the Ministry of Physical Development.
Step 26
The lawyer collects the license from the Ministry of Physical Development. Total Time Taken: 6 weeks to 3 months or more
REQUIRED FORMS
Application by Investor for License to Hold Land as Owner/Lessee in St. Lucia
FEES
Fixed Annual License fee – EC$1,000 which is not prorated
REQUIRED STAMPS
Governor General’s seal
REQUIRED SIGNATURES
• • • • •
Permanent Secretary, Minister of Physical Development, Head of Section Prime Minister Governor General
OFFICERS INVOLVED IN THE PROCESS
• • • • • • • • • • • • •
Senior Executive Officer Permanent Secretary Minister of Physical Planning Prime Minister Letter to client - ??? Rejection letter Approval letter - 3 months or more Registrar of Lands Commissioner of Police Commissioner of Crown Lands Attorney General’s Chambers Comptroller of Inland Revenue Land Registry
TIMELINE FOR GOVERNMENT REPLY TO BUSINESS CLIENT CONNECTION TO OTHER MINISTRIES
NEXT STEPS
Registration of license at the Land Registry where it is given an Instrument Number
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PERMITS 1. WORK PERMITS Work permits are required for foreign nationals wishing to work in Saint Lucia. Upon approval, a work permit is issued to a specific individual, working for specific company or doing a specific job. The Ministry of Labor provides a step by step guide of the process to applicants. This work permit must be renewed annually. The effective date of an application is the application date. Renewal applications should be submitted one month prior to the anniversary of the effective date. The potential employer is required to advertise the position in the newspaper to ensure that no locals can do the job. This requirement, if not completed before the application, could delay the process. If the applicant is the owner of the company, a copy of the trade license must be submitted.
l
WORK PERMIT APPROVAL ADMINISTRATIVE PROCESS LEGAL AUTHORITY
Chapter 16.13 FOREIGN NATIONALS AND COMMONWEALTH CITIZENS (EMPLOYMENT) ACT Revised Edition showing the law as at 31 December 2001
PREREQUISITES
Offer of employment in St.Lucia; valid passport
STEPS IN THE PROCESS
Step 1:
Applicant obtains following from the receptionist at Ministry of Labor: I. Guide to application process II. Form 25 with instructions to pay $100.00 for form at the Treasury Department
Step 2:
Applicant takes the form to Treasury Department and pays $100 and receives a Treasury receipt Time taken: 1 day
Step 3:
Client returns to Ministry of Labor, presents receipt to the receptionist and receives an Application form for the Work Permit. Each application form has a unique number
Step 4:
Applicant and potential employer completes the application form
Step 5:
Applicant returns to the Ministry of Labor and submits the following to the Clerk: For new applications: i. Completed application form ii. Letter from the potential employer. Letter should be on company letterhead and state the name of applicant, justification for employing a foreign national and duration of employment iii. Police record from country where applicant last resided Copies of certified documentary proof of qualifications iv. Copy of Trade License, if any v. Copies of advertisement for the posts vi. One passport size photo vii. Expired work permit (if it is an application for renewal) For renewals: i. Completed application form ii. Letter from the potential employer iii. Police record from the St.Lucia Royal Police Force iv. Letter from Inland Revenue Department indicating status of taxes
li
Step 6:
Clerk reviews the application form and the documents. The clerk will contact the applicant for missing information and documents. If all is in order, the Clerk sends the application and the documents to the Work Permit Unit
Step 7:
The officer sends the application with recommendations to the Minister Time taken (Steps 1-5) : 3 -4 days
Step 8:
Minister approves the application and returns it to the Permanent Secretary Time Taken: Depends on Minister (Average time:
Step 9:
The Permanent Secretary sends it to the officer. At the Work Permit Unit
Step 10
The clerk types the letter indicating approval or rejection of application. If approved, and the applicant is not exempt from payment of fees, the letter will include the work permit fees and instructions for payment. A Form 25 is attached for payment at the Treasury Department
Step 11
The clerk faxes the letter etc to the applicant
Step 12
If applicant is exempt from paying fees, a Certificate of Exemption (Form 4 – blue form) is prepared If fees are to be paid, the applicant goes to the Treasury Department, pays fees and receives a Treasury receipt
REQUIRED FORMS
Step 13
Applicant returns to the Ministry to pick up Certificate of Exemption or to present Treasury Receipt
Step 14
The Clerk prepares the Work Permit (Form 3 – green form) for applicant and sends the Work Permit Certificate to the Permanent Secretary for signature
Step 15
The Permanent Secretary reviews and signs and stamps the Certificate is all is in order
Step 16
Permanent Secretary returns application form to the Work Permit Unit
Step 17
The clerk sends the original Work Permit/Certificate of Exemption to the applicant, sends a copy to the Immigration Audit Unit and files another copy
i. Work Permit Application ii. Treasury Receipt (for application fee) iii. Treasury Receipt (for permit fee) iv. Work Permit (Form 3) [Green Form] lii
v. Certificate of Exemption (Form 4) [Blue Form] FEES REQUIRED STAMPS
Application Form: $100 Work Permit Fees: Permanent Secretary
REQUIRED SIGNATURES
Permanent Secretary/Minister of Labor
CONNECTION TO OTHER MINISTRIES
Police Record required from Police Headquarters Trade License required from Ministry of Commerce Work Permit or Certificate of Exemption is sent to the Immigration Audit Department National Development Corporation may facilitate the process Applicant takes passport and letter to Immigration Department to get a stamp in the passport
NEXT STEPS
Work Permit Approval Process Recommendation 1. Eliminate or reduce process fee as this requires unnecessary steps in the process. This fee could be part of the work permit fees. 2. Make forms available on government website and communicate process to the public
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2. DEVELOPMENT CONTROL AUTHORITY (DCA) APPROVAL PROCESS
The Development Control Authority (DCA) is a Board. It has the mandate to protect the environment and manage development. Permission must be obtained from the DCA before carrying out any kind of development of land such as residential, commercial, subdivision, change of use, etc. The Development Control Interim Act of 1971 established the DCA. The 2005 revision makes the provision for eliminating the Board and gives the approval power to the Head of Physical Planning and Development Division, also called the Chief Planner, but the provision has not been enforced. In addition to the DCA, a developer may need the approval of several other agencies to develop a property and construct or renovate a building. There are several prerequisites to seeking the approval of the DCA and the DCA itself may also required an Environmental Impact Assessment (EIA) which will require from a host of additional agencies and ministries. The approval processes are long and complex. Developers will often hire private firms to manage the process. Like many other GOSL agencies the DCA is in the process of developing and installing a new website and an automated system. The website will allow users to download forms and information. The DCA has a brochure that outlines the process and the documents for obtaining approval. Developers can apply for an Approval in Principle. The process is exactly the same except the prerequisite documents are not submitted. Only a cover letter, Survey Plan and Site Plan are required. The Approval in Principle lets the developer know that it is worth the effort to do the full design and collect the required documents. The Board may give an Approval in Principle and require an Environmental Impact Assessment (EIA). This process is coordinated by the DCA. They hold a meeting with all the relevant agencies discuss the proposal and incorporate the responses into the EIA. This process can be very lengthy.
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MAJOR DEVELOPMENT CONSTRUCTION PERMIT PROCESS LEGAL AUTHORITY
PREREQUISITES
STEPS IN THE PROCESS
• •
Physical Planning Development Act No. 29 of 2001 and 2005 Development Control Interim Act of 1971
For Commercial Development the applicant must collect the following docs: • Cover letter • Land Register extract (1 copy) from Land Registry Dept. • Survey Plan (1 copy) • Building forms (2 copies) from Lands &Surveys Dept • Location Plan (1 copy) and Land Registry Titling Project (known as an LRTP) map extract from Lands &Surveys Dept. • Architectural drawings (3 copies) • All drawing certified by a locally registered engineer • Project Brief • Recommendation from Fire Department • Recommendation from Public Health approval or Water and Sewer Company (WASCO) approval if connecting to an existing system • Electrical approval from the Electrical Department of the Ministry of Communications and Works & Transport Developer presents application to DCA clerk who enters the basic information into a manual log and assigns the next available reference Step 1: number. The clerk calculates the fee, completes a Form A and gives it to the applicant. Step 2:
Step 3: Step 4: Step 5:
Applicant goes to the Cashier, another section at the Ministry of Physical Development and the Environment (Survey Section), pays the fee and receives a receipt. Applicant returns to the DCA clerk with the receipt. DCA clerk takes the receipt and gives the applicant a payment acknowledgement slip with the reference number on it. If the application is for a major development (touristic, commercial, mining, quarrying and industrial) or small sub-division applications s/he sends it to the Ag Deputy Chief Physical Planning via the secretary. If it is a residential application, crusade tents etc, s/he sends it to the Development Control Officer Development projects: Ag Deputy Chief Planner assigns the application to a Physical Planning Officers. Residential: The Development Control Officer assigns the application to a Building Officers based on the zones
Step 6:
The Physical Planning Officer/Development Control Officer conducts an lv
Step 7:
Step 8: Step 9: Step 10
Step 11:
appraisal which involves reviewing the documents, calling the developer, site visits and perhaps a legal review. Officer prepares an appraisal document and gives it to the Chief Planner via the Administrative Secretary for vetting. Appraisal may include a recommendation for an Environmental Impact Assessment. In the absence of the Chief Planner, the document will be sent to the Ag Deputy Chief Planner. Chief Planner/Ag Deputy Chief Planner vets the application. If there are queries, typographical errors or discussion is needed on any issues, the Chief Planner/Ag Deputy Chief Planner will return the application to the Physical Planning Officer via the Administrative Secretary. When the appraisal is completed, the Physical Planning Officer sends the application for review at the Planning Review Committee Meeting (all Planning Officers and Senior Building Officer and Engineer) which meets every Tuesday. The Planning Review Committee reviews applications to ensure they meet all DCA standards and issues and will try to resolve issues before going to the Board. Committee may request referral from agencies such as National Trust, Fisheries, Health, CEHI (mainly for applications requiring EIA). For sub-divisions – A Small Sub-division Review meeting is held every Thursday to review applications and discuss issues. After the meeting, the Physical Planning Officer writes to the Developer regarding the issues raised. If requested, the Physical Planning Officers will write to the referral agencies for their input. Step 1 – 9
Step 12:
Step 13:
Time Taken: 2 – 4 weeks depending on backlog
Chief Planner returns the application which s/he had dated and signed to Administrative Secretary who sends it to the Planning Officers. If there are no issues and queries, the Planning Officers will copy and paste it in Secretary of the DCA Board’s folder on the shared drive. The Officers makes physical copies of the application and location plan for all 23 members of the Board and send them to the Secretary of the Board of DCA. The Board usually meets every 3 weeks. Only board members approve, rejects or defers on the proposal/ application. The DCA Board‘s approval and that is final. For urgent applications, there is a round-robin process. The Secretary prepares a cover form which includes board members’ names, decision, application number and copy of appraisal. Five signatures in agreement are required for an application to be approved.
Step 14 Step 15
Step 16
The Secretary to the Chief Planner/Secretary of the DCA Board prepares a decision sheet for each application reviewed at the board sitting and passes it to the Chief Planner for vetting. Chief Planner vets applications and passes it on to the Secretary to the Chief Planner/Secretary to the DCA Board. The Board of the DCA meets and approves, rejects or defers application pending additional information or results of an environmental impact of assessment lvi
After the Board Meeting, the Secretary puts list on the Secretary to the DCA’s folder on the hard-drive. Step 17
Step 18 Step 19 Step 20
The DCA Clerk accesses the folder on the shared drive and stamps each page of the application APPROVED or REJECTED. DCA Clerk will send applications to the Chief Planner for signature. The Physical Planning Officers access this folder and prepares decision letters to developers. If the Board approves the recommendation or requests an EIA, this is included in the letter also indicating that 12 electronic copies of the proposal on CD is required by the Ministry to be sent to agencies. The Officers places the letters in the dip of the Secretary to the Chief Planner The Secretary passes the letters onto the Chief Planner or Deputy in her absence. The Chief Planner or Deputy vets it and if acceptable, writes OK and date and signs underneath. She sends it back to her secretary. The Chief Planner’s secretary forwards the letters to the Planning Officers.
Step 21
If OK, the Physical Planning Officers puts the letters in the Secretary’s folder marked Matter for Letterhead and brings a physical copy to secretary. The secretary types it on letterhead and sends it to the Chief Planner for signature. The Chief Planner signs the letter and sends it back to her secretary.
Step 22
Her secretary puts the letters in a secretary’s pool to be placed in envelops and sent to the developers Step 17 – 24 Time Taken: 1 week
Step 23
Applications requiring an Environmental Impact Assessment: The developer sends the CDs containing the EIA proposal to the DCA Clerk or secretary who sends them to the Physical Planning Officers The Physical Planning Officers sends the CDs to the referral agencies asking them the provide input for developing the terms of reference for the EIA and giving them a deadline, usually 2 weeks. However, this could take 4 weeks or longer. When all input and recommendations received by the DCA Clerk or secretary, s/he sends them to the Chief Planner.
Step 24
The Chief Planner makes note saying for the attention of Planning Officer and sends them back to her secretary for distribution to relevant officers. The Physical Planning Officers collates the issues to be addressed in the terms of reference (TOR) and any mitigating measures necessary to reduce risk and impact.
Step 25
The Physical Planning Officer sends the TOR to the Chief Planner via the lvii
secretary. Step 26
If the Chief Planner approves, s/he sends it to the secretary for transmission to Board of DCA
Step 27
The Secretary to the Chief Planner/Secretary of the DCA Board prepares a decision sheet for each application reviewed at the board sitting and passes it to the Chief Planner for vetting.
Step 28
Chief Planner vets applications and passes it on to the Secretary to the Chief Planner/Secretary to the DCA Board.
Step 29
The Board of the DCA meets and approves, rejects or defers application pending additional information or results of an environmental impact of assessment
Step 30
After the Board Meeting, the Secretary puts list on the Secretary to the DCA’s folder on the hard-drive.
Step 31
The Physical Planning Officer accesses the shared drive to find out the decision. If Board ratifies decision, s/he prepares a letter and terms of reference and sends it to the developer
Step 32
The Officers places the letters in the dip of the Secretary to the Chief Planner
Step 33
The Secretary passes the letters onto the Chief Planner or Deputy in her absence.
Step 34
The Chief Planner or Deputy vets it and if acceptable, writes OK and date and signs underneath. She sends it back to her secretary.
Step 35
The Chief Planner’s secretary forwards the letters to the Planning Officers.
Step 36
If OK, the Physical Planning Officers puts the letters in the Secretary’s folder marked Matter for Letterhead and brings a physical copy to secretary.
Step 37
The secretary types it on letterhead and sends it to the Chief Planner for signature.
Step 38
The Chief Planner signs the letter and sends it back to her secretary.
Step 39
Her secretary puts the letters in a secretary’s pool to be placed in envelops and sent to the developers
Step 40
When the EIA is received by the Planning Officers, it is sent to the referral agencies with a cover letter to confirm that all issues are addressed. Response time could be between….. and …….
Step 41
If the referral agencies have indicated that all issues are addressed, the Physical Planning Officers will prepare an appraisal document making recommendations.
Step 42
When the appraisal is completed, the Physical Planning Officer sends the application for review at the Planning Review Committee Meeting (all Planning Officers and Senior Building Officer and Engineer) which meets lviii
every Tuesday. The Planning Review Committee reviews applications to ensure they meet all DCA standards and issues and will try to resolve issues before going to the Board Step 43
After the meeting, the Physical Planning Officer writes to the Developer regarding the issues raised, if any
Step 44
Chief Planner returns the application which s/he dates and signs to Administrative Secretary who sends it to the Physical Planning Officers.
Step 45
If there are no issues and queries, the Planning Officers will copy and paste it in Secretary of the DCA Board’s folder on the shared drive. The Officers makes physical copies of the application and location plan for all 23 members of the Board and send them to the Secretary of the Board of DCA.
Step 46
The Secretary to the Chief Planner/Secretary of the DCA Board prepares a decision sheet for each application reviewed at the board sitting and passes it to the Chief Planner for vetting.
Step 47
Chief Planner vets applications and passes it on to the Secretary to the Chief Planner/Secretary to the DCA Board.
Step 48
The Board of the DCA meets and approves, rejects or defers application pending additional information or results of an environmental impact of assessment
Step 49
After the Board Meeting, the Secretary puts list on the Secretary to the DCA’s folder on the hard-drive.
Step 50
The DCA Clerk accesses the folder on the shared drive and stamps each page of the application APPROVED or REJECTED. DCA Clerk will send applications to the Chief Planner for signature.
Step 51
The Physical Planning Officers access this folder and prepares decision letters to developers and places them in the dip of the Secretary to the Chief Planner
Step 52
The Secretary passes the letters onto the Chief Planner or Deputy in her absence.
Step 53
The Chief Planner or Deputy vets it and if acceptable, writes OK and date and signs underneath. She sends it back to her secretary.
Step 54
The Chief Planner’s secretary forwards the letters to the Planning Officers.
Step 55
If OK, the Physical Planning Officers puts the letters in the Secretary’s folder marked Matter for Letterhead and brings a physical copy to secretary.
Step 56
The secretary types it on letterhead and sends it to the Chief Planner for signature.
Step 57
The Chief Planner signs the letter and sends it back to her secretary.
Step 58
Her secretary puts the letters in a secretary’s pool to be placed in envelops and sent to the developers lix
If all the issues are not addressed:
REQUIRED FORMS
FEES REQUIRED STAMPS REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS TIMELINE FOR GOVERNMENT REPLY TO BUSINESS CLIENT/Ministry of Physical Planning CONNECTION TO OTHER MINISTRIES
Step 59
If all issues are not addressed, the Physical Planning Officer writes a letter to the developer requesting an addendum to the EIA listing the issues that must be addressed. The referral agencies would have agreed to issues in the addendum.
Step 60
To expedite the process, the Physical Planning Officer may set up a meeting with all the referral agencies so that the developer can present the project. The agencies will indicate the issues that need to be addressed. However, an official letter from the agency is required before the proposal can be finalized. This usually takes one week or more. Developer presents project…agencies indicate issues that need to be addressed. Need official letters from the agencies.
Step 61
Approval in principle is often given based on conceptual drawing using the same process as above
Total Time Taken: 4 – 12 weeks or more. Delays may be due to delay in response from referral agencies Building Form for residential, commercial and industrial buildings Cover letter for conceptual drawings Form A Treasure Department Receipt See schedule DCA Stamp Executive Secretary of DCA for approved drawing • • • •
Senior Executive Officer Permanent Secretary Minister of Physical Planning Prime Minister • Approximate times for prerequisites: • Health Department (30 days) • Fire Department (3-4 days) • WASCO (7 days) • Electrical (7 days) All of these approvals can be sought at the same time. • Health Department • Fire Department • WASCO • LUCELEC/Electrical Department • National Development Corporation (for NDC lands) • Owner of land • Registered Civil Engineer • Ministry of Tourism • SLASPA • Ministry of Civil Aviation • Ministry of Trade - manufacturing • Referral agencies: CEHI, Ministry of Agriculture, Lands, Forestry and Fisheries, Health, WASCO, LUCELEC, Sustainable Section, Commissioner of Crown Lands, St.Lucia National Trust, SLASPA, Ministry of lx
Communications, Works, Transport and Public Utilities
BUILDING APPLICATIONS ADMINISTRATIVE PROCESS LEGAL AUTHORITY
• •
Physical Planning Development Act No. 29 of 2001 and 2005 Development Control Interim Act of 1971
PREREQUISITES
For Residential Development the applicant must collect the following docs: • Architectural drawings (3 copies) • Land Register (1 copy) from Land Registry • Health Department approval (for septic tanks) • Notarized letter of consent • Survey Plan (1 copy) • Location Plan (1 copy) and Land Registry Titling Project (known as an LRTP) map extract from Lands &Surveys Dept. • Building forms (2 copies) from Lands &Surveys Dept • Public Health approval or Water and Sewer Company (WASCO) approval if connecting to an existing system
STEPS IN THE PROCESS
Step 1:
Developer presents application to DCA clerk who enters the basic information into a manual log and assigns the next available reference number. The clerk calculates the fee, completes a Form A and gives it to the applicant.
Step 2:
Applicant goes to the Cashier, another section at the Ministry of Physical Development and the Environment (Survey Section), pays the fee and receives a receipt.
Step 3:
Applicant returns to the DCA clerk with the receipt.
Step 4:
DCA clerk takes the receipt and gives the applicant a payment acknowledgement slip with the reference number on it and sends it to the Development Control Officer
Step 5:
The Development Control Officer assigns the application to a Building Officers based on the zones
Step 6:
The Building Officer conducts an appraisal which involves reviewing the documents, calling the developer, site visits and perhaps a legal review. Officer prepares an appraisal document and gives it to the Development Control Officer
Step 7:
The applications are reviewed at a Building Review Committee held every Friday.
Step 8:
The Development Control Officer vets the application. If there are queries, typographical errors or discussion is needed on any issues, s/he will return the application to the Building Officer via the Administrative Secretary. lxi
Step 9:
The Administrative Secretary types a list of applications and sends it with the applications and to the Chief Planner who is also the Executive Secretary of the Board of the DCA. The Administrative Secretary will also attach a decision form to the list.
Step 10
The Executive Secretary reviews the applications, notes his decision on the form and signs it.
Step 11:
Chairman of the Board of DCA comes in weekly to ratify the decision of the Executive Secretary by signing next to each application on the form and a signature at the end of the list.
Step 12:
The Executive Secretary signs and dates the list again and gives it to her secretary.
Step 13:
The Secretary copies the decision list and forwards it to the DCA Clerk and Building Officers. The DCA Clerk will stamp approved applications and put for signature by Chief Planner/ or designee Time taken: 2-4 days
Step 14
The DCA Clerks stamps each page of the application - APPROVED or REJECTED and sends the applications to the Chief Planner for signature.
Step 15
The Chief Planner returns the signs applications to the DCA Clerk
Step 16
The applicant picks up the approved drawings. Total Time Taken: 1-2 weeks
REQUIRED FORMS FEES REQUIRED STAMPS REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS TIMELINE FOR GOVERNMENT REPLY TO BUSINESS CLIENT/Ministry of Physical Planning
CONNECTION TO OTHER
Building Form for residential, commercial and industrial buildings Cover letter for conceptual drawings Form A Treasure Department Receipt See schedule DCA Stamp Executive Secretary of DCA for approved drawings • • • • • •
Senior Executive Officer Permanent Secretary Minister of Physical Planning Letter to client - ??? Rejection letter Approval letter - 3 months or more • Approximate times for prerequisites: • Health Department (30 days) • Fire Department (3-4 days) • WASCO (7 days) • Electrical (7 days) All of these approvals can be sought at the same time. • Health Department • Fire Department • WASCO lxii
MINISTRIES
• • • • • • • • •
LUCELEC/Electrical Department National Development Corporation (for NDC lands) Owner of land Registered Civil Engineer Ministry of Tourism SLASPA Ministry of Civil Aviation Ministry of Trade - manufacturing Referral agencies: CEHI, Ministry of Agriculture, Lands, Forestry and Fisheries, Health, WASCO, LUCELEC, Sustainable Section, Commissioner of Crown Lands, St.Lucia National Trust, SLASPA, Ministry of Communications, Works, Transport and Public Utilities
DCA Approval Process Recommendations 1. The DCA already has a brochure that outlines the process and the documents for obtaining approval. It is a very good start. It can be improved and branded so that it looks like a GOSL document and is easier to read. 2. Have the applicant pay at the DCA rather than the Treasure department. This will save the 2 office visits. 3. Increase the number of staff by three or four Planning Officers to clear backlog of applications for major developments and prevent backlog from building up 4. If EIA proposal is required, the terms of reference for the EIA could be drafted at the meeting and ratified later rather than after letters are received from agencies stating their contributions to the terms of reference. 5. All of these approvals from WASCO, Fire, Health etc can be sought at the same time. 6. Develop or customize off the shelf software to automate the process to reduce the time for approval 7. Reduce to time it takes between drafting and sending the letter to the applicant. The draft could be sent via email or placed in a folder on the shared drive to the Chief Planner etc for vetting and printing rather than making physical copies. The ‘track changes’ function in Microsoft Word could be used when reviewing and editing the document. The draft could be copied and pasted to the letterhead, printed, signed by the Chief Planner and placed in the envelope by the secretary.
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3.
IMPORT PERMIT APPROVAL
An import license is required to import restricted goods into St.Lucia under the External Trade Act of 1968. The importer should obtain approval from the Ministry of Trade and Industry prior to the goods being shipped to St.Lucia. Upon approval of application of import license, importer is given 3 months for the goods to arrive in St.Lucia. Applications for import license for fresh vegetables are submitted directly to the Ministry of Agriculture for approval. This was delegated to the Ministry of Agriculture.
IMPORT LICENSE ADMINISTRATIVE PROCESS LEGAL AUTHORITY
• • • •
PREREQUISITES STEPS IN THE PROCESS
•
External Trade Act No. 5 of 1968 Section 3.1 gives the Minister authority to prepare the Statutory Instrument which lists the goods which require an import license SI #31 of 1996 lists the goods OECS Agreement and CARICOM Agreement reduce restrictions on import of goods from within the trading community None
Step 1:
Importer purchases form from National Printing Corporation or downloads it from website, the requisite number of application forms for Import License or downloads one from the Ministry of Trade and Industry’s website: • 2 copies for dry goods • 4 copies for meat, fish and/or fruits and fresh vegetables – Now Ministry of Agriculture authorized (by Ministry of Trade) to issue an import license for fresh vegetables on Ministry’s behalf. The Ministry of Trade now deals with only frozen vegetables
Step 2:
The applicant also submits a pro forma invoice (but the Ministry will accept a Commercial Invoice if the goods are already in country but this should not be the rule) to the Import License Assistant at the Ministry of Trade The Import License Assistant stamps (Officially Received), writes the date and a tracking number on the forms. She records the name of the importer next to a number on the log book. The Import License Assistant hands the forms to the Complaints and Investigations Officer.
Step 3:
If the application is for fish, the applicant takes the stamped import license application with the tracking number to the Fisheries Department for approval and returns to the Ministry of Trade. The same applies for the importation of meats except approval is sought from the Veterinary Division of the Ministry of Agriculture
Step 4:
The Complaints and Investigations Officer reviews the application, confirms that the HS number on the form is correct, and decides whether the goods can be imported based on the legislative lxiv
restrictions. The Complaints and Investigations Officer, ticks the decision box on the application which corresponds to the official decision. The decisions include: 1. All goods can be imported 2. Some allowed and goods not crossed out can be order 3. Application not approved The Complaints and Investigation Officer returns the application to the Import License Assistant Time taken: 2 days Step 5:
If application is not approved, the Complaints and Investigations Officer or Import License Assistant will notify the applicant of the decision and return one copy to the importer and one is kept on file. If approve, the Import License Assistant calls the importer if he or she has not called. If the commercial invoice is attached, she prepares the import license in triplicate (one copy for Customs, one for applicant and one for filing at the Ministry. Otherwise, she will wait for commercial invoice before preparing import license. The Import License Assistant sends the License to the Complaints and Investigations Officer.
Step 6:
The Complaints and Investigations Officer signs the License and returns it to the Import License Assistant. In his absence, the permits are submitted to the Permanent Secretary or the Deputy Permanent Secretary or the Chief Redress Officer for signature.
Step 7
The Import License Assistant records the license number, date and importer name in a book and send a physical copy of is taken to Customs Department by Office Assistant. Time taken: 2 days from submission of commercial invoice Client comes to the Ministry to pick up their copy of the Import License.
REQUIRED FORMS AND DOCUMENTS FEES REQUIRED STAMPS
• • • None • •
REQUIRED SIGNATURES OFFICERS INVOLVED IN THE PROCESS CONNECTION TO OTHER MINISTRIES
Total Time Taken: 4 days Application for Import License Pro Forma Invoice Commercial Invoice Stamp of approval or not the application form from the Ministry of Agriculture for meats Stamp of approval from Ministry of Fisheries for fish
Complaints and Investigations Officer, or the Permanent Secretary or Deputy Permanent Secretary or Chief Redress Officer. Import License Assistant Complaints and Investigations Officer Permanent Secretary, Deputy Permanent Secretary, Chief Redress Officer if Complaints and Investigations Officer is not available. • Customs and Excise Department after import • For fresh vegetables, the Ministry of Trade has authorized the Ministry of Agriculture (Fish or Veterinary Department)
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NEXT STEPS
•
Send a copy of application to Customs Department to facilitate the immediate clearance of fish and meats. • Send a copy of import license to Customs Department Customs: • Broker picks up the Import permit from the Ministry of Trade • Broker submits the Import Permit to Customs • Customs releases the shipment
Import License Recommendations and Proposed New Process: Integration with Customs 1. Improve intra-agency coordination – Ministry of Trade, Customs and Excise
2.
3. 4.
5.
4
Department, Ministry of Agriculture and Ministry of Fisheries to reduce the time for obtaining approvals. This could include integrating with Customs ASYCUDA++ system to facilitate online approval of import permit and approval of duty free concessions on imports of goods under the fiscal incentive regime. The ASYCUDA++ system currently has the capacity to automate this process. To date, Customs has provided a written proposal for automating processes at the Ministry of Trade4 and has provided training to the Ministry of Trade on how to send documents electronically to speed up the processing, make it more efficient and reduce opportunities for corruption (at Customs). In the meantime, the import permit could be scanned and sent electronically to Customs. It should be noted that the customs brokers are already or will be inputting Customs declaration directly to ASYCUDA so they should also be able to input import permit applications. It would simply need to be approved by the Complaints and Investigations Officer before the shipment would be released by Customs. Implement an electronic platform for information-sharing and approvals such as Biznet Single Window for Trade and Investment similar to the Singapore model. SGS Limited through USAID-COTS has submitted a high level design proposal to the St.Lucia government for approval Put a downloadable import permit application form on the ministry’s website. This could be submitted electronically Revisit the position titles of Complaints and Investigations Officer/Assistant as it connotes a negative impression. The government could consider Import Monitoring Officer/Assistant This Import Monitoring Unit should not be part of Consumer Affairs Department but a separate unit under the Ministry of Trade headed by the Import Monitoring Officer reporting directly to the Permanent Secretary
New Procedures for the Approval of Concessions Using ASYCUDA ++ Feb 2006 lxvi
6. The Government could consider a service fee to be collected by Customs on
behalf of the Ministry of Trade. This fee could be a percentage of shipment CIF value. The Future Proposed Import Process
STEPS IN THE PROCESS
Step 1:
Applicant downloads the Import Permit form from the Ministry of Trade website or pick up a hard copy from the Ministry.
Step 2:
Client fills out the application and submits the Import Permit form electronically (or in hard copy).
Step 3:
The Complaints and Investigations Assistant receives the Import Permit template and assigns a tracking number to it. .
Step 4:
The Complaints and Investigations Officer reviews the Import Permit template, confirms the HS number is correct, and decides if the goods can be imported based on the legislative restrictions.
Step 5:
If approved the Officer cuts data out of the electronic document and pastes it into ASYCUDA. If not approved the client is notified by the Complaints and Investigations Officer or Assistant. Note: This would be an interim process until the Ministry of Trade allows the applicant to use the ASYCUDA interface directly to enter the Import Permit data. Brokers already input Customs declaration directly to ASYCUDA so they should also be able to input Import Permit applications.
Step 6:
If the application is for perishable goods the Client takes the application to the Ministry of Agriculture and get their approval (from either the veterinary or fish department) and bring that approval to the Ministry of Trade before the application will be approved by the Ministry of Trade. (Start with Import License group and Customs then automate the link with Agriculture).
Step 7:
The Assistant notifies the applicant that the Import Permit was approved but if the applicant has direct access to ASYCUDA this will not be necessary.
Step 8:
The permit is issued online and printed by the applicant. The applicant may pick up a hard copy at the Ministry of Trade. .
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4. LANDÂ REGISTRATIONÂ
The Land Registry Department within the Ministry of Physical Development is responsible for maintaining the record of land ownership. The Land Registration Titling Project (1984-97) provided the first and baseline cadastral survey and a record of ownership for all land parcels. There are currently 66,000 parcels of land registered in the Registry. The Land Registry plans to automate their process. During the first phase, all existing and new documents will be scanned followed by the second phase which will fully automate the internal processes. The Ministry has a website http://www.stlucia.gov.lc/agencies/ministry_of_housing_urban_renewal_and_local_gove rnment.htm but it lacks some of the basic information that would make it useful.
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LAND REGISTRATION PROCESS LEGAL AUTHORITY PREREQUISITES
Land Registration Act ch5 • • •
STEPS IN THE PROCESS
Certificate of Good Standing (from the Registry of Companies and Intellectual Property) Notarized instrument (Title, Transfer of Land, Succession document) Cashier receipt
Step 1:
Client, or their representative, prepares the “instrument” (transaction document). The transaction is often managed by a lawyer.
Step 2:
The Client gets the instrument notarized (authenticated) and makes 2 copies.
Step 3:
Client submits the instrument (and copies) to the Land Registry Cashier to Pay the processing fee.
Step 4:
The Cashier determines the processing fee by referencing Schedule 4 of the Land Registration Act ch5.01 Dec 2001. The fees are posted at the office but not on the Ministry website.
Step 5:
Client pays the processing fee.
Step 6:
Cashier issues a receipt.
Step 7:
Cashier gives the documents to the Executive Officer.
Step 8:
Executive Officer reviews the documents, assigns an Instrument Number (the next number in a physical log), logs the entry, signs and dates the instrument.
Step 9:
Executive Officer gives the documents to the Typist who locates the Land Register (the physical forms held by the Registry) and updates it by crossing out the old owner and entering the name of the new owner.
Step 10
Executive Officer sends the Land Register along with the original instrument and 2 copies to the Registrar for signature.
Step 11
Registrar signs the original instrument and the 2 copies.
Step 12
Registrar returns the original instrument and the 2 copies to the Executive Officer.
Step 13
Executive Officer keeps 1 copy for the Registry file and sends 2 copies to the lawyer.
Step 14
The lawyer receives 2 copies, keeps a copy and sends one to the client.
REQUIRED FORMS lxix
FEES
Application Form: $100
REQUIRED STAMPS REQUIRED SIGNATURES
RECEIVED
CONNECTION TO OTHER MINISTRIES NEXT STEPS
Minister of Agriculture • •
Inland Revenue (for land and house taxes) Development Control Authority
The client may now request a copy of the Land Certificate. However, the Registry does not recommend this. The Certificate is simply a reference to a record that is in the file at the Land Registry. The Registry will issue a certified copy of the record with a date stamp (to demonstrate it is current) upon request.
Land Registration Recommendations
1. Implement the World Bank Doing Business Survey recommendations which include: a. The introduction of a standard sale-purchase contract and b. Computerization of all records at the land registry, deeds department and the cadastral system. c. Introduction of a fixed fee for stamp duty (vendor’s tax) 2. Seek design recommendations from land administration experts such as International Lands Systems and proposals from land administration software development experts to develop this highly specialized software
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Annex 1: List of interviewees
Company and Business Registration Processes Desma Charles, Deputy Registrar/Acting Registrar, Registry of Companies and Intellectual Property, dchalres@gosl.gov.lc 758-468-3233
Inland Revenue Process Adria Sonson, Deputy Controller, Inland Revenue Department dcir@candw.lc 758-468-4704 National Insurance Registration Process Theresa Cox, Customer Service Manager, National Insurance Corporation
Trade License Process Emmanuel Gerald, Trade Officer, Secretary of the Advisory Board, Ministry of Trade 758-468 4112 Import Permit Process Kenneth Goolaman, Complaints and Investigations Officer, Ministry of Trade Cynthia Cyril, Complaints and Investigations Assistant, Ministry of Trade
Customs Processes Terence Leonard, Comptroller, Customs & Excise Dept, Ministry of Finance tleonard@customsslu.com , 758-468-4801
Ministry of Tourism Fiscal Incentives Process Jacinta Francis, Policy Administration and Investment Facilitation Unit, Ministry of Tourism jfrancis@gosl.gov.lc 758 468-4619 Anne Margaret Xavier, Policy Administration and Investment Facilitation Unit, Ministry of Tourism
NDC Fiscal Incentives Process O’Donavan Yarde, Int’l Investment Development Officer, National Development Corp. odyarde@stluciandc.com 758-452-3614 Cindy Petersen, Investment Services Officer National Development Corp. cpeterson@stluciandc.com 758-452-3614 Dorn Lafeuillee, Research Officer National Development Corp. dlafeuillee@stluciandc.com 758-452-3614 lxxi
Work Permit Process Barnabas Annius, Deputy Permanent Secretary, Ministry of Labour, Information and Broadcasting agencyadmin@gosl.gov.lc 758-468-2702
SDA Approval Process Jacqueline Emmanuel, Director, Office of Private Sector Relations (OPSR), Special Development Agency (SDA), Ministry of Commerce, Director.opsr@candw.lc 758-468-2108
DCA Construction Permit Approval Process Karen Augustine, Development Control Authority, Physical Planning Section, Ministry of Physical Development augustinkaren7@gmail.com, 758-468-4444
Land Registration Christopher Demais, Chief Surveyor, Land Registry, Ministry of Physical Development Paul Popo, Land Registry, Ministry of Physical Development landpolice90@hotmail.com, 758-468-4496
Alien Land Registration Contact: Mrs. Marie Piper-Charles, Senior Executive Officer, Land Registry, Ministry of Physical Development 468-5020
e-Government Task Force Marlin Narcisse, e-Government Unit, Ministry of Public Service director@ict.gov.lc
Private Sector Edward Harris, St. Lucia Industrial and Small Business Association Fabiana Chedy, Professional Confidential Service Paula Calderon, SMA Andre Chastant, Chamber of Commerce Brian Louisy, Chamber of Commerce Roston Taylor, SMA Martin Satney, SLISBA
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