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Ease of Doing Business in

Venezuela, RB

Venezuela, RB Download Profile (1771.6KB, pdf)
Region Latin America & Caribbean
Income Category Upper middle income
Population 31,108,083
GNI Per Capita (US$) 12,082
City covered Caracas

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 187 185 down
2
33.37 36.33 down
2.96
Starting a Business 189 187 down
2
32.94 38.91 down
5.97
Dealing with Construction Permits 137 133 down
4
61.65 62.12 down
0.47
Getting Electricity 186 170 down
16
16.85 39.60 down
22.75
Registering Property 129 129
-
52.36 52.67 down
0.31
Getting Credit 118 109 down
9
40.00 40.00
-
Protecting Minority Investors 175 176 up
1
31.67 31.67
-
Paying Taxes 185 185
-
22.49 22.33 up
0.16
Trading across Borders 187 187
-
7.93 7.93
-
Enforcing Contracts 137 137
-
48.97 48.97
-
Resolving Insolvency 165 165
-
18.80 19.05 down
0.25

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

DB 2017 Rank: 189

DB 2016 Rank: 187

Change in Rank: down2

DB 2017 DTF (% points): 32.94

DB 2016 DTF (% points): 38.91

Change in DTF (% points): down5.97

Standardized Company
Legal form: Sociedad Anónima (SA)
Paid-in minimum capital requirement: VEF 0
City: Caracas
Indicator Venezuela, RB Latin America & Caribbean OECD high income
Procedure – Men (number) info_outline 20.0 8.3 4.8
Time – Men (days) info_outline 230.0 31.6 8.3
Cost – Men (% of income per capita) info_outline 136.4 31.5 3.1
Procedure – Women (number) info_outline 20.0 8.3 4.8
Time – Women (days) info_outline 230.0 31.6 8.3
Cost – Women (% of income per capita) info_outline 136.4 31.5 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 2.3 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Reserve company name

    Agency: Commercial Registry

    To reserve a company name, founders must buy the name search form (busqueda de la denominación) at the Registro Mercantil.

    The cost for the name search is 0.5 UT and the cost for the name reservation is 2 UT. As of February 2015, the new value of the U.T. increased from VEF 127 to VEF 150 on February, 25th 2015 (Official Gazzete N° 40.608)
    4 days VEF 88.5 (0.5 UT name search) + VEF 354 (2 UT name reservation)
    2

    Obtain an approval of the company name

    Agency: Commercial Registry

    After reserving the company name, the applicant must pay the cited fee at a bank and return to the Registry 3 days later to show the bank deposit slip and obtain the company name approval.
    3 days no charge
    3

    Lawyer must prepare and legalize the company’s constitutive documents and social statutes

    Agency: Lawyer

    Legal assessment is required in the procurement of the company incorporation documents; the assessment must follow all formalities cited in Articles 211 to 215 of the Code of Commerce.
    5 days VEF 50,000 to VEF 100,000
    4

    Open bank account

    Agency: Bank

    The Mercantile Registry requires evidence of a bank account. Although founders commonly deposit 20% of declared capital, there is no minimum amount; by law, the Registrar determines the required amount.
    1 day no charge
    5

    Register at the local mercantile registry (Registro Mercantil)

    Agency: Commercial Registry

    Founders must register with the local mercantile registry. This procedure must be done within 30 days of name reservation. The employer must fill out and submit a registration (derechos registrales) form.

    The company registration and incorporation fees are linked to a measure called the tax unit (UT), which the government updates at least once a year. The Tax Unit increased to VEF 177 on February, 25th 2015 (Official Gazette N° 40.608)

    Fee schedule for company registration and incorporation:
    1% of the capital + VEF 1062 (6 UT fixed fee) + VEF 885 (5 UT fiscal rights) + VEF 88.5 (0,05 UT per page) + VEF 30 (per page stamp tax for original document, registry copy and company copy).
    34 days see comments
    * 6

    Publish articles in a local newspaper (Gaceta Forense del Registro Mercantil)

    Agency: Local Newspaper

    The company's articles of association must be published in a local newspaper.
    3 days (simultaneous with previous procedure) VEF 250
    * 7

    Register company books

    Agency: Commercial Registry

    Companies must purchase the books and register corporate books (Shareholders' Book, Shareholders’ Meeting Minutes Book and, if applicable, Board of Directors Minutes Book) and accounting books (Inventory Book, Daily Book and Ledger).
    1 day (simultaneous with previous procedure) VEF 140 per each book + VEF 26.55 (0.03 UT) fixed fee + 88.5 VEF (0.001 UT per page per registration, each book has 100 pages)
    8

    Register at the local Servicio Nacional Integrado de Administración Aduanera y Tributaria (SENIAT) with Registro Unico de Información Fiscal (RIF) to obtain fiscal number

    Agency: SENIAT

    SENIAT is the National integrated service of customs and tax administration and RIF is the Fiscal Registry. The Company must file an electronic form which is downloaded from SENIAT’s Web page (www.seniat.gov.ve). Such form must be filed along with the required documentation. SENIAT now also requires that Company's shareholders, directors and legal representative must be registered with the RIF prior to obtaining the Company's RIF.
    1 day no charge
    9

    Obtain tax clearance certificate at municipal level (Instituto Municipal de Aseo Urbano)

    Agency: Electricidad de Caracas

    A tax clearance certificate must be obtained.
    1 day VEF 35 (2% Tax Unit)
    10

    Register for social security at a local regional fund

    Agency: Social Security

    Registering for social security can take up to 6 months. Since 2015, the applicants can register online at http://registro.ivss.gov.ve/home.htm. The application must then be filed in person before the Social Security along with the required attachments.
    130 days no charge
    * 11

    Register at National Bank for Housing and Habitat - Banco Nacional de Vivienda y Habitat (BANAVIH)

    Agency: BANAVIH

    The employers must register with BANAVIH through its website: www.banavih.gov.ve. Employers must verify their list of employees monthly and pay the contribution.
    1 day (simultaneous with previous procedure) no charge
    * 12

    Register at the National Institute of Socialist Cooperation & Education

    Agency: National Institute of Socialist Cooperation & Education

    Employers with a minimum of five employees must register at the National Educational Co-operation Institute; the employees’ social security numbers are required.
    1 day (simultaneous with previous procedure) no charge
    13

    Register with the Ministry of Labor

    Agency: Ministry of Labor

    The Company and the company employees have to register with the Ministry of Labor. The Registration also includes the Statistics Register and the Department of Hygiene and Safety. The applicants can register online at www.mintra.gob.ve. The application must then be filed in person before the Ministry of Labor along with the required attachments.
    1 day no charge
    14

    Go through a labor inspection (by the Labor Inspectorate)

    Agency: Labor Inspector Office

    The Labor Inspectorate inspects the business premises.
    14 days VEF 17.7 (0.1 UT stamp cost)
    * 15

    Obtain fire approval and undergo an inspection

    Agency: Fire Department

    It takes 8 days for assignment of an operating inspector and 15–20 days for a response. Once the inspector is assigned, he/she will perform an inspection at the place of business to establish whether all security requirements are met. After inspection, an approval from the Agency will be obtained if all the requirements are met.
    28 days (simultaneous with previous procedure) no charge
    * 16

    Obtain conformity of use certificate (zoning permit)

    Agency: Municipality

    Documents required are the mercantile registration, external building maps, and a photo of the premises.
    15 days (simultaneous with previous procedure) VEF 885 (5 UT) + VEF 3.5 (0.02 UT) stamp
    * 17

    Obtain industrial or commercial license from competent municipality

    Agency: Municipality

    To obtain an industrial or commercial license from a competent municipality, the founders must file copies of registration, a sanitation certificate, the lease of the premises, the latest balance sheet, and a declaration of the number of employees.
    50 days (simultaneous with previous procedure) VEF 1770 (10 UT) + VEF 3.5 (0.02 UT)
    * 18

    Register at the National Commission for People with Disabilities

    Agency: National Council for People with Disabilities (CONAPDIS)

    In order to register companies must complete the form provided on line at http://sistemaspruebas.conapdis.gob.ve/publico/deseo_registrarme_empresa.
    In order to access the website, companies need to obtain a login and username. Once that is done, registration is done immediately.
    1 day No charge
    * 19

    Register at the National Superintendence for the Defense of Socioeconomic Rights (SUNDEE)

    Agency: National Superintendence for the Defense of Socio-Economic Rights

    The Organic Law of Fair Prices (November, 2014) established an obligatory sole registry of Venezuelan individuals and legal entities who develop economic and commercial activities in Venezuela (RUPDAE).
    The registration can be done online at the following site: http://rupdae.superintendenciadepreciosjustos.gob.ve/usuarios/inscripcion or in person.The website is often not working, so the majority of companies go in person to agency to register.
    1 day No charge
    * 20

    Register at the National Institute of Prevention, Occupational Health and Safety (INPSASEL)

    Agency: National Institute of Prevention, Occupational Health and Safety (INPSASEL)

    Companies must register online at the following site.
    http://usuarios.inpsasel.gob.ve/login/registro
    The procedures provides a registration number which companies will use in further interactions with government after it starts operations.
    1 day No charge

    * Takes place simultaneously with previous procedure.