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Ease of Doing Business in

Solomon Islands

Solomon Islands Download Profile (1720.7KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 583,591
GNI Per Capita (US$) 1,940
City covered Honiara

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 104 105 up
1
59.17 58.79 down
0.38
Starting a Business 97 91 down
6
85.48 85.11 up
0.37
Dealing with Construction Permits 63 59 down
4
72.76 72.94 down
0.18
Getting Electricity 80 91 up
11
72.53 69.01 up
3.52
Registering Property 152 153 up
1
47.38 47.34 up
0.04
Getting Credit 82 78 down
4
50.00 50.00
-
Protecting Minority Investors 106 101 down
5
50.00 50.00
-
Paying Taxes 39 38 down
1
83.58 83.58
-
Trading across Borders 151 152 up
1
53.45 53.45
-
Enforcing Contracts 153 152 down
1
44.63 44.63
-
Resolving Insolvency 138 136 down
2
31.90 31.85 up
0.05

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

152

DB 2016 Rank:

153

Change in Rank:

up1

DB 2017 DTF (% points):

47.38

DB 2016 DTF (% points):

47.34

Change in DTF (% points):

up0.04

STANDARD PROPERTY TRANSFER
Property value SBD 781,121
City Honiara
Indicator Solomon Islands East Asia & Pacific OECD high income
Procedures (number) info_outline 10 5.4 4.7
Time (days) info_outline 86.5 74.4 22.4
Cost (% of property value) info_outline 4.7 4.5 4.2
Quality of the land administration index (0-30) info_outline 11 13.4 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Check for property ownership and encumbrances

    Agency: Land Department

    The department of lands and the Land Registry has an electronic database (not online) of titles, ownership and encumbrances. One document will provide all the relevant information on the property, the ownership and encumbrances.

    There is the possibility of obtaining a non-certified copy of the title, which has no value. According to Section IX of the Land and Titles Act [Cap 143] only certified copies has prima facie evidence.

    2 days SBD 30
    2

    Obtain tax and encumbrances clearance

    Agency: Registry of Titles Office

    Parties obtain tax clearance and assurance of no encumbrances or liens on the land from the Commissioner of Lands.

    1 day SBD 10
    3

    Confirm boundary maps of the property

    Agency: Survey Department at the Ministry of Land

    This is not mandatory but it is standard practice to confirm the boundary maps. Limits to the property are marked with cement "pegs", and It is necessary to verify them. Most properties in Honiara have property pegs.

    A letter is written to the Surveyor General to confirm the boundaries. The letter is passed on to the chief of surveyors, who will contact the person (by phone) to inform him/her when the identification of the boundaries will be conducted.

    Once the boundaries are confirmed, the report of the Chief of surveyor will be delivered to the office of the Surveyor General. This is done in accordance to the Land Survey Act [Cap 134].

    4 days No cost
    4

    Contract a surveyor to survey the land

    Agency: Survey Department at the Ministry of Land

    One may be able to hire staff from the Survey Department at the Ministry of Land, but there is a shortage of staff there so it is usually necessary to hire a private surveyor.

    20 days SBD 1000
    5

    Get consent for a transfer from the Commissioner of Lands

    Agency: Commissioner of Lands

    The Commissioner of Lands checks the files and authorizes the transfer. He cannot delegate his signature for transfers.

    25 days SBD 300
    6

    Prepare and sign transfer contract

    Agency: Lawyer

    Exchange of contracts is in accordance with the law. Lawyers must act for the Company. They will need to have checked the identification of boundaries and investigate the title. The parties choose the law firm and the lawyers act for the companies. The vendor company agents must either have the company seal or be authorized to sign on behalf of the company with a power of attorney. In Honiara, the transfer will refer to a leases or a fixed term estate (both last 25-50 years generally).

    1 day (simultaneous with procedure 7) 0.5% of the value of the transaction (legal fees)
    * 7

    Verify the registration of the vendor company

    Agency: Company Haus (online)

    Lawyers are instructed to ensure completion in accordance with the law and ensure the transfer of title.
    With the introduction of the online registration for companies, it is now possible to search for a company online at no cost, saved the proof as a pdf file.
    http://www.companyhaus.gov.sb
    The evidence of incorporation must be presented in accordance to
    Evidence of incorporation LN 85/1968
    An application for registration of a dealing whereby a corporation acquires an interest shall be accompanied by such evidence of incorporation as the Registrar may require.

    Less than a day (online procedure; simultaneous with procedure 6)

    No cost
    8

    Notarize the transfer contract

    Agency: Registry of Titles Office

    This contract must be witnessed or notarized by either a public notary, a solicitor or civil servant (surveyor above level 5 or land officers). Fees are not regulated and vary between SBD 10 and 50.

    1 day SBD 10 – 50
    9

    Pay the Stamp Duty at the Inland Revenue

    Agency: Inland Revenue Division

    Every document executed which is chargeable to duty under the Stamp Duty Act must be stamped within two months of execution.




    2 days Stamp duty on transfer of properties according to the following scale:
    a. where the consideration or amount exceeds
    $10,000 but does not exceed $25,000 - 2% of transaction value;
    b. where the consideration or amount exceeds
    $25,000 but does not exceed $50,000 - 3% of transaction value;
    c. where the consideration or amount exceeds
    $50,000 - 4% of transaction value.


    10

    Register the transfer

    Agency: Registry of Titles Office

    The time includes the delay in obtaining the final confirmation of registration.

    The registrar of titles covers all the country. It uses a Torrens system and records on paper the information related to a title (ownership, encumbrances …) Titles are scanned as a backup. A computer system records all the transactions requested about a parcel (encumbrances checking, title transfer request …). However, this computer system does not record ownership or encumbrances; it just records that someone registered a transfer.

    The owner is informed that the transaction is registered by the “Advice of registration of a dealing” sent by post.


    1 month SBD 100

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 11.0
    Reliability of infrastructure index (0-8) 0.0
    What is the institution in charge of immovable property registration? Ministry of Legal and Justice Affairs
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? No 0.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? No 0.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? No 0.0
    Transparency of information index (0–6) 1.5
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Anyone who pays the official fee 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, in person 0.0
    Link for online access:
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? No 0.0
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, in person 0.0
    Link for online access: Published in the National Gazette.
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 5.5
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? Yes 1.5
    Is the system of immovable property registration subject to a state or private guarantee? No 0.0
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Yes 0.5
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer.
    Does the legal system require verification of the identity of the parties to a property transaction? No 0.0
    If yes, who is responsible for verifying the identity of the parties? .
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? Magistrates' Court
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Less than a year 3.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0