|**1**<br>**Authentication of documentation overseas**<br>**Figure 15. Average time required to comply with additional procedures worldwide (in days)**|
|---|
|**2**<br>**Other additional procedures (generally tax-related)**|
|**8**<br>**International trade licence (import/export)**|
|**11**<br>**Authorization/registration of imported capital**|
|**15**<br>**Foreign investment approval/declaration**|
|0<br>2<br>4<br>6<br>8<br>10<br>12<br>14|

_Source:_ FDI Regulations database 2012 _Note_ : for methodological purposes, the time required to complete the _authentication of documentation overseas_ procedural step is counted as 1 day, although the process in practice can be much longer depending on the originating country.

Those economies that are not party to the Apostille Convention impose a burdensome and lengthy process for the recognition of foreign public documentation in their territory (from civil registry to Ministry of Justice, to ministry of foreign affairs and then to the relevant consulate at the state of production, etc.). In addition, when there is no diplomatic representation in the country of origin, the party interested in authenticating the public documents must identify the nearest consulate that has jurisdiction over the country where the documents are intended to be used. In Saudi Arabia for example, a parent company (and parent company nominee shareholder) wishing to invest in Riyadh must do the following: translate its incorporation documentation into Arabic, authenticate and legalize said documentation at the Saudi consulate in its country of incorporation and then at the Ministry of Foreign Affairs and Ministry of Justice in the Kingdom of Saudi Arabia, before being able to submit the documentation and start the incorporation process.

# _Foreign investment approval/declaration requirement_

The lengthiest additional procedure required of foreign companies is the foreign investment approval (Figure 15). When applicable, the foreign investment screening requirement can either take the form of an a priori approval and can take up to 180 days to complete, or can consist of a mere declaration/notification to the appropriate authority (i.e. approval is automatic, consists of only one step; usually takes only one day to complete). The notification requirement is usually for statistical purposes, and does not hinder the establishment process or operation as is the case for example, in Croatia and France where the declaration of the initial foreign investment must be submitted for statistical purposes within 30 days of incorporation.

The rationale for screening is that governments need to decide whether a specific foreign investment is desirable. In general, the screening process involves an assessment of the investment’s potential economic benefits for the host country (World Bank Group, 2010).

In EAP, 40% of the economies impose an a priori approval requirement, meaning foreign companies will not be able to move forward with their investment project without said approval. In other regions, like ECA and LAC, the requirement mostly takes the form of a registration with a government agency. In MENA, when required, this procedural step can range from a mere declaration/notification to a procedure that takes as long as 6 months. In Morocco and Tunisia, only a declaration is needed, whereas in Algeria for example, an approval is required from the “Conseil National de l’Investissement” and takes somewhere between 90 and 180 days.

19