Djibouti Doing Business Report 2018

 

Starting a Business: Djibouti made starting a business easier by creating a one-stop shop for business start-up.

Registering Property: Djibouti made property transfer easier and more transparent by reducing registration fees, implementing strict deadlines to register the sale agreement with the tax authority, scanning the majority of land titles for Djibouti-Ville and by requiring by law that all property sales transactions be registered at the land registry to become opposable to third parties.

Getting Credit: Djibouti strengthened access to credit by introducing the possibility of granting a nonpossessory security right in a single category of movable assets without requiring a specific description of the collateral. Future assets can now be used to secure a loan and security interests automatically extend to the products, proceeds and replacements of the original assets. All debts and obligations can be secured between parties and described in general. Secured creditors are now given absolute priority over other claims, such as labor and tax, outside of bankruptcy proceedings.

Protecting Minority Investors: Djibouti strengthened minority investor protections by requiring greater disclosure of transactions with interested parties, strengthening remedies against interested directors, extending access to corporate information before trial, increasing shareholder rights and role in major corporate decisions, clarifying ownership and control structures and requiring greater corporate transparency.

Enforcing Contracts: Djibouti made enforcing contracts easier by establishing a dedicated division within the court of first instance to resolve commercial cases and by adopting a new Code of Civil Procedure that regulates voluntary conciliation and mediation proceedings, as well as time standards for key court events.

Resolving Insolvency: Djibouti made resolving insolvency easier by making insolvency proceedings more accessible for creditors and granting them greater participation in the proceedings.

Source: World Bank