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Ease of Doing Business in

Tonga

Tonga Download Profile (1694.5KB, pdf)
Region East Asia & Pacific
Income Category Lower middle income
Population 106,170
GNI Per Capita (US$) 4,067
City covered Nukualofa

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 85 76 down
9
63.58 63.83 down
0.25
Starting a Business 55 48 down
7
90.85 90.75 up
0.10
Dealing with Construction Permits 14 7 down
7
80.96 83.79 down
2.83
Getting Electricity 67 64 down
3
76.29 76.26 up
0.03
Registering Property 158 156 down
2
44.64 44.64
-
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 123 118 down
5
45.00 45.00
-
Paying Taxes 80 78 down
2
73.76 73.76
-
Trading across Borders 100 98 down
2
68.20 68.20
-
Enforcing Contracts 92 91 down
1
57.32 57.32
-
Resolving Insolvency 132 131 down
1
33.82 33.60 up
0.22

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

DB 2017 Rank:

14

DB 2016 Rank:

7

Change in Rank:

down7

DB 2017 DTF (% points):

80.96

DB 2016 DTF (% points):

83.79

Change in DTF (% points):

down2.83

STANDARDIZED WAREHOUSE
Estimated value of warehouse TOP 428,190
City Nukualofa
Indicator Tonga East Asia & Pacific OECD high income
Procedures (number) info_outline 13 15.0 12.1
Time (days) info_outline 77 134.1 152.1
Cost (% of warehouse value) info_outline 1.9 2.1 1.6
Building quality control index (0-15) info_outline 12 8.7 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Request and obtain official copy of site plan from the Ministry of Land

    Agency: Ministry of Land

    Depending on the location of the land, obtaining a site plan may take as long as one year (if the project is outside Nuku’alofa).

    3 days TOP 16
    2

    Request and obtain building permit

    Agency: Ministry of Infrastructure

    A new building code has been partially introduced. Since August 2005, in practice, BuildCo submits all plans for approval to the Ministry of Infrastructure. BuildCo must submit 3 sets of drawing (the specifications are provided in the law). One copy will be distributed to each department at the same time for approval:
    1. Fire Services Department -- checking for safety regulations
    2. With the implementation of the Environmental Impact Assessment 2010 – BuildCo must submit Form 1 for Assessment.
    3. Ministry of Health -- checking the septic tank, whether it is the Ministry of Infrastructure's standard septic tank. Normally all architects have the standard specifications and the check list.
    Once approved by the various departments, the plans are sent back to the Ministry of Infrastructure for final approval.
    The time it takes to obtain the approval depends on the persistence of BuildCo in following up. The official time limit is 21 working days (under Article 11 -- Issue of a Building Permit -- Building Control and Standards Regulations 2005) or 30 calendar days:
    • The Ministry of Infrastructure has 10 working days to verify the sets of plans and forward all the documents to the relevant departments.
    • All 3 departments have 10 working days to provide their response.
    • The Ministry of Infrastructure has 1 working day to issue the permit.

    30 days TOP 7,163
    3

    Pay registration fees for the environmental assessment Form 1 at the Lands Office

    Agency: Lands Office

    Once the building permit is obtained, BuildCo must pay for Form 1 for the Environmental Assessment at the Lands Office. The building permit and Form 1 must be submitted at time of payment. The officer at the Lands office will verify that the building permit has been issued and that Form 1 was properly assessed.

    1 day TOP 10
    4

    Submit Form1 and the Building permit to the Environmental Unit

    Agency: Ministry of Lands, Environment, Climate Change and Natural Resources

    According to Schedule 1 of the Environmental Impact Assessment Regulations 2010, the environmental unit will assess if the warehouse will require a full Environmental Impact Assessment or a simple assessment. If no EIA is not needed, the Environmental Unit will issue Form 2 so that Build Co can proceed with the construction.

    14 days no charge
    5

    Request and receive foundation inspection from the Ministry of Infrastructure

    Agency: Ministry of Infrastructure

    According to Article 19 of the Building Control and Standards Act 2002- Sectioni 19 - BuildCo must inform the Ministry of Infrastructure of the various stages completed and request an inspections (foundations, walls, pouring of concrete, etc). In practice, there may be about three inspections or none. The inspections must be requested but this can be done over the telephone.

    1 day no charge
    6

    Request and receive inspection prior to pouring of concrete

    Agency: Ministry of Infrastructure

    BuildCo must request the inspection 36 hours prior to the date (under Article 19 of the Building Control and Standards Regulations 2005). This can be done by phone, email or in person.

    1 day no charge
    7

    Request and receive inspection of framing material

    Agency: Ministry of Infrastructure

    1 day no charge
    8

    Request and receive inspection of plumbing and sanitary work

    Agency: Ministry of Infrastructure

    1 day no charge
    * 9

    Request water connection

    Agency: Tonga Water Board

    In practice, unless water supply is already available at the site, many companies use rainwater.

    1 day TOP 900
    10

    Receive site inspection for water connection

    Agency: Tonga Water Board

    1 day no charge
    11

    Obtain water connection

    Agency: Tonga Water Board

    21 days no charge
    * 12

    Request and receive final inspection

    Agency: Ministry of Infrastructure

    According to Article 22 of the Building Control and Standards Act 2002, the builder will inform the Building Comptroller of the MOW either by phone, email or in person. A date for the inspection is proposed by the builder. The inspector will come on the premises and do the final inspection.

    5 days no charge
    13

    Receive certificate of completion

    Agency: Ministry of Infrastructure

    Two days after the final inspection, the Ministry of Infrastructure will issue the certificate of completion.

    2 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 1.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  Architect or engineer; Professional in charge of the supervision. 1.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 3.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) University degree in engineering, construction or construction management; Being a registered architect or engineer. 1.0