World bank doing business in mauritius 2013

Doing Business 2013 Mauritius 2

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CONTENTS

Introduction .................................................................................................................................. 4
The business environment .......................................................................................................... 5
Starting a business ..................................................................................................................... 14
Dealing with construction permits ........................................................................................... 23
Getting electricity ....................................................................................................................... 34
Registering property .................................................................................................................. 41
Getting credit .............................................................................................................................. 50
Protecting investors ................................................................................................................... 57
Paying taxes ................................................................................................................................ 66
Trading across borders .............................................................................................................. 74
Enforcing contracts .................................................................................................................... 83
Resolving insolvency .................................................................................................................. 93
Employing workers .................................................................................................................... 99
Data notes ................................................................................................................................. 106
Resources on the Doing Business website ............................................................................ 111


INTRODUCTION
Doing Business sheds light on how easy or difficult it is the paying taxes indicators, which cover the period
for a local entrepreneur to open and run a small to January–December 2011).
medium-size business when complying with relevant
The Doing Business methodology has limitations. Other
regulations. It measures and tracks changes in
areas important to business—such as an economy’s
regulations affecting 11 areas in the life cycle of a
proximity to large markets, the quality of its
business: starting a business, dealing with construction
infrastructure services (other than those related to
permits, getting electricity, registering property,
trading across borders and getting electricity), the
getting credit, protecting investors, paying taxes,
security of property from theft and looting, the
trading across borders, enforcing contracts, resolving
transparency of government procurement,
insolvency and employing workers.
macroeconomic conditions or the underlying strength
In a series of annual reports Doing Business presents of institutions—are not directly studied by Doing
quantitative indicators on business regulations and the Business. The indicators refer to a specific type of
protection of property rights that can be compared business, generally a local limited liability company
across 185 economies, from Afghanistan to Zimbabwe, operating in the largest business city. Because
over time. The data set covers 46 economies in Sub- standard assumptions are used in the data collection,
Saharan Africa, 33 in Latin America and the Caribbean, comparisons and benchmarks are valid across
24 in East Asia and the Pacific, 24 in Eastern Europe economies. The data not only highlight the extent of
and Central Asia, 19 in the Middle East and North obstacles to doing business; they also help identify the
Africa and 8 in South Asia, as well as 31 OECD high- source of those obstacles, supporting policy makers in
income economies. The indicators are used to analyze designing regulatory reform.
economic outcomes and identify what reforms have
More information is available in the full report. Doing
worked, where and why.
Business 2013 presents the indicators, analyzes their
This economy profile presents the Doing Business relationship with economic outcomes and presents
indicators for Mauritius. To allow useful comparison, it business regulatory reforms. The data, along with
also provides data for other selected economies information on ordering Doing Business 2013, are
(comparator economies) for each indicator. The data in available on the Doing Business website at
this report are current as of June 1, 2012 (except for http://www.doingbusiness.org.


THE BUSINESS ENVIRONMENT

For policy makers trying to improve their economy’s
regulatory environment for business, a good place to ECONOMY OVERVIEW
start is to find out how it compares with the regulatory
environment in other economies. Doing Business
provides an aggregate ranking on the ease of doing
Region: Sub-Saharan Africa
business based on indicator sets that measure and
benchmark regulations applying to domestic small to Income category: Upper middle income
medium-size businesses through their life cycle.
Economies are ranked from 1 to 185 by the ease of Population: 1,286,051
doing business index. For each economy the index is
calculated as the ranking on the simple average of its GNI per capita (US$): 8,240
percentile rankings on each of the 10 topics included in
the index in Doing Business 2013: starting a business, DB2013 rank: 19
dealing with construction permits, getting electricity,
registering property, getting credit, protecting DB2012 rank: 24*
investors, paying taxes, trading across borders,
Change in rank: 5
enforcing contracts and resolving insolvency. The
ranking on each topic is the simple average of the
percentile rankings on its component indicators (see * DB2012 ranking shown is not last year’s published
the data notes for more details). The employing workers ranking but a comparable ranking for DB2012 that
indicators are not included in this year’s aggregate ease captures the effects of such factors as data
of doing business ranking, but the data are presented corrections and the addition of 2 economies
in this year’s economy profile. (Barbados and Malta) to the sample this year. See
the data notes for sources and definitions.
The aggregate ranking on the ease of doing business
benchmarks each economy’s performance on the
indicators against that of all other economies in the
Doing Business sample (figure 1.1). While this ranking
tells much about the business environment in an
economy, it does not tell the whole story. The ranking on
the ease of doing business, and the underlying
indicators, do not measure all aspects of the business
environment that matter to firms and investors or that
affect the competitiveness of the economy. Still, a high
ranking does mean that the government has created a
regulatory environment conducive to operating a
business.



Figure 1.1 Where economies stand in the global ranking on the ease of doing business

Source: Doing Business database.


For policy makers, knowing where their economy relative to the regional average (figure 1.2). The
stands in the aggregate ranking on the ease of economy’s rankings on the topics included in the
doing business is useful. Also useful is to know how ease of doing business index provide another
it ranks relative to comparator economies and perspective (figure 1.3).

Figure 1.2 How Mauritius and comparator economies rank on the ease of doing business




Figure 1.3 How Mauritius ranks on Doing Business topics



Just as the overall ranking on the ease of doing business year Doing Business introduced the distance to frontier
tells only part of the story, so do changes in that ranking. measure. This measure shows how far each economy is
Yearly movements in rankings can provide some indication from the best performance achieved by any economy since
of changes in an economy’s regulatory environment for 2005 on each indicator in 9 Doing Business indicator sets.
firms, but they are always relative. An economy’s ranking
Comparing the measure for an economy at 2 points in
might change because of developments in other
time allows users to assess how much the economy’s
economies. An economy that implemented business
regulatory environment as measured by Doing Business
regulation reforms may fail to rise in the rankings (or may
has changed over time—how far it has moved toward (or
even drop) if it is passed by others whose business
away from) the most efficient practices and strongest
regulation reforms had a more significant impact as
regulations in areas covered by Doing Business (figure 1.4).
measured by Doing Business.
The results may show that the pace of change varies widely
Moreover, year-to-year changes in the overall rankings do across the areas measured. They also may show that an
not reflect how the business regulatory environment in an economy is relatively close to the frontier in some areas
economy has changed over time—or how it has changed and relatively far from it in others.
in different areas. To aid in assessing such changes, last

Figure 1.4 How far has Mauritius come in the areas measured by Doing Business?

Note: The distance to frontier measure shows how far on average an economy is from the best performance achieved by any
economy on each Doing Business indicator since 2005. The measure is normalized to range between 0 and 100, with 100 representing
the best performance (the frontier). The overall distance to frontier is the average of the distance to frontier in the 9 indicator sets
shown in the figure. See the data notes for more details on the distance to frontier measure.


The absolute values of the indicators tell another part business regulation—such as a regulatory process that
of the story (table 1.1). The indicators, on their own or can be completed with a small number of procedures
in comparison with the indicators of a good practice in a few days and at a low cost. Comparison of the
economy or those of comparator economies in the economy’s indicators today with those in the previous
region, may reveal bottlenecks reflected in large year may show where substantial bottlenecks persist—
numbers of procedures, long delays or high costs. Or and where they are diminishing.
they may reveal unexpected strengths in an area of

Table 1.1 Summary of Doing Business indicators for Mauritius

Best performer globally
Madagascar DB2013

Seychelles DB2013
Botswana DB2013
Mauritius DB2013

Mauritius DB2012

Namibia DB2013
Indicator
Kenya DB2013

DB2013
Starting a Business (rank) 14 12 99 126 17 133 117 New Zealand (1)

Procedures (number) 5 5 10 10 2 10 10 New Zealand (1)*

Time (days) 6 6 61 32 8 66 39 New Zealand (1)

Cost (% of income per
3.3 3.6 1.6 40.4 10.8 18.5 14.3 Slovenia (0.0)
capita)

Paid-in Min. Capital (% of
0.0 0.0 0.0 0.0 0.0 0.0 0.0 91 Economies (0.0)*
income per capita)

Dealing with Construction Hong Kong SAR, China
62 60 132 45 148 56 57
Permits (rank) (1)

Hong Kong SAR, China
Procedures (number) 16 16 22 9 16 12 17
(6)*

Time (days) 143 143 145 125 172 139 126 Singapore (26)

28.5 30.6 172.7 211.9 1,116.9 110.9 25.3 Qatar (1.1)
capita)


Madagascar DB2013

Seychelles DB2013
Botswana DB2013
Mauritius DB2013

Mauritius DB2012

Namibia DB2013
Indicator

Kenya DB2013

DB2013
Getting Electricity (rank) 44 44 90 162 183 87 144 Iceland (1)

Procedures (number) 4 4 5 6 6 7 6 Germany (3)*

Time (days) 84 91 121 146 450 38 147 Germany (17)

295.1 328.5 353.8 1,208.2 9,056.7 482.2 429.8 Japan (0.0)
capita)

Registering Property
60 66 51 161 147 169 66 Georgia (1)
(rank)

Procedures (number) 4 4 5 9 6 8 4 Georgia (1)*

Time (days) 15 22 16 73 74 46 33 Portugal (1)

Cost (% of property value) 10.6 10.6 5.1 4.3 10.5 13.8 7.0 Belarus (0.0)*

Getting Credit (rank) 53 80 53 12 180 40 167 United Kingdom (1)*

Strength of legal rights
6 6 7 10 2 8 4 Malaysia (10)*
index (0-10)

Depth of credit
5 3 4 4 0 4 0 United Kingdom (6)*
information index (0-6)

Public registry coverage
56.3 49.8 0.0 0.0 0.1 0.0 0.0 Portugal (90.7)
(% of adults)

Private bureau coverage United Kingdom
0.0 0.0 58.9 4.9 0.0 63.9 0.0
(% of adults) (100.0)*

Protecting Investors
13 13 49 100 70 82 70 New Zealand (1)
(rank)

Extent of disclosure index Hong Kong SAR, China
6 6 7 3 5 5 4
(0-10) (10)*


Madagascar DB2013

Seychelles DB2013
Botswana DB2013
Mauritius DB2013

Mauritius DB2012

Namibia DB2013
Indicator

Kenya DB2013

DB2013
Extent of director liability
8 8 8 2 6 5 8 Singapore (9)*
index (0-10)

Ease of shareholder suits
9 9 3 10 6 6 5 New Zealand (10)*
index (0-10)

Strength of investor
7.7 7.7 6.0 5.0 5.7 5.3 5.7 New Zealand (9.7)
protection index (0-10)

United Arab Emirates
Paying Taxes (rank) 12 13 39 164 68 112 20
(1)

Payments (number per Hong Kong SAR, China
7 7 32 41 23 37 27
year) (3)*

United Arab Emirates
Time (hours per year) 161 161 152 340 201 350 76
(12)

Trading Across Borders
15 16 147 148 112 140 33 Singapore (1)
(rank)

Documents to export
5 5 6 8 4 9 5 France (2)
(number)

Time to export (days) 10 10 27 26 21 25 16 Singapore (5)*

Cost to export (US$ per
660 737 2,945 2,255 1,197 1,800 876 Malaysia (435)
container)

Documents to import
6 6 7 7 9 7 5 France (2)
(number)

Time to import (days) 10 10 37 26 24 20 17 Singapore (4)

Cost to import (US$ per
695 689 3,445 2,350 1,555 1,905 876 Malaysia (420)
container)

Enforcing Contracts (rank) 58 56 68 149 156 41 83 Luxembourg (1)


Madagascar DB2013

Seychelles DB2013
Botswana DB2013
Mauritius DB2013

Mauritius DB2012

Namibia DB2013
Indicator

Kenya DB2013

DB2013
Time (days) 645 645 625 465 871 270 915 Singapore (150)

Cost (% of claim) 16.3 16.3 28.1 47.2 42.4 35.8 15.4 Bhutan (0.1)

Procedures (number) 36 36 28 44 38 33 37 Ireland (21)*

Resolving Insolvency
64 83 29 100 151 59 65 Japan (1)
(rank)

Time (years) 1.7 1.7 1.7 4.5 2.0 1.5 2.0 Ireland (0.4)

Cost (% of estate) 15 15 15 22 30 15 11 Singapore (1)*

Outcome (0 as piecemeal
sale and 1 as going 0 1 1 0 0 0
concern)

Recovery rate (cents on
40.9 35.1 64.8 29.5 12.9 42.3 39.6 Japan (92.8)
the dollar)

Note: DB2012 rankings shown are not last year’s published rankings but comparable rankings for DB2012 that capture the effects of
such factors as data corrections and the addition of 2 economies (Barbados and Malta) to the sample this year. The ranking
methodology for the paying taxes indicators changed in Doing Business 2013; see the data notes for details. For more information
on “no practice” marks, see the data notes. Data for the outcome of the resolving insolvency indicator are not available for
DB2012.
* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates the
number of economies that share the top ranking on the indicator. For a list of these economies, see the Doing Business website
(http://www.doingbusiness.org).


STARTING A BUSINESS
Formal registration of companies has many WHAT THE STARTING A BUSINESS
immediate benefits for the companies and for
business owners and employees. Legal entities can INDICATORS MEASURE
outlive their founders. Resources are pooled as
several shareholders join forces to start a company. Procedures to legally start and operate a
Formally registered companies have access to company (number)
services and institutions from courts to banks as
Preregistration (for example, name
well as to new markets. And their employees can
verification or reservation, notarization)
benefit from protections provided by the law. An
additional benefit comes with limited liability Registration in the economy’s largest
companies. These limit the financial liability of business city
company owners to their investments, so personal
Postregistration (for example, social security
assets of the owners are not put at risk. Where
registration, company seal)
governments make registration easy, more
entrepreneurs start businesses in the formal sector, Time required to complete each procedure
creating more good jobs and generating more (calendar days)
revenue for the government.
Does not include time spent gathering
What do the indicators cover? information

Doing Business measures the ease of starting a Each procedure starts on a separate day
business in an economy by recording all Procedure completed once final document is
procedures officially required or commonly done in received
practice by an entrepreneur to start up and
formally operate an industrial or commercial No prior contact with officials
business—as well as the time and cost required to Cost required to complete each procedure
complete these procedures. It also records the (% of income per capita)
paid-in minimum capital that companies must
deposit before registration (or within 3 months). Official costs only, no bribes
The ranking on the ease of starting a business is No professional fees unless services required
the simple average of the percentile rankings on by law
the 4 component indicators: procedures, time, cost
and paid-in minimum capital requirement. Paid-in minimum capital (% of income
per capita)
To make the data comparable across economies,
Doing Business uses several assumptions about the Deposited in a bank or with a notary before
business and the procedures. It assumes that all registration (or within 3 months)
information is readily available to the entrepreneur  Has a start-up capital of 10 times income per
and that there has been no prior contact with capita.
officials. It also assumes that the entrepreneur will
 Has a turnover of at least 100 times income per
pay no bribes. And it assumes that the business:
capita.
 Is a limited liability company, located in the
 Does not qualify for any special benefits.
largest business city.
 Does not own real estate.
 Has between 10 and 50 employees.
 Is 100% domestically owned.
 Conducts general commercial or industrial
activities.


STARTING A BUSINESS

Where does the economy stand today?
What does it take to start a business in Mauritius? costs 3.3% of income per capita and requires paid-in
According to data collected by Doing Business, starting minimum capital of 0.0% of income per capita (figure
a business there requires 5 procedures, takes 6 days, 2.1).

Figure 2.1 What it takes to start a business in Mauritius
Paid-in minimum capital (% of income per capita): 0.0

Note: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology of
the starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the
procedures reflected here, see the summary at the end of this chapter.


STARTING A BUSINESS
Globally, Mauritius stands at 14 in the ranking of 185 regional average ranking provide other useful
economies on the ease of starting a business (figure information for assessing how easy it is for an
2.2). The rankings for comparator economies and the entrepreneur in Mauritius to start a business.

Figure 2.2 How Mauritius and comparator economies rank on the ease of starting a business



STARTING A BUSINESS

What are the changes over time?
While the most recent Doing Business data reflect how process have changed—and which have not (table 2.1).
easy (or difficult) it is to start a business in Mauritius That can help identify where the potential for
today, data over time show which aspects of the improvement is greatest.

Table 2.1 The ease of starting a business in Mauritius over time
By Doing Business report year

Indicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013

Rank .. .. .. .. .. .. .. .. 12 14

Procedures
6 6 6 6 6 5 5 5 5 5
(number)

Time (days) 46 46 46 46 7 6 6 6 6 6

Cost (% of
income per 10.5 9.9 8.8 8.0 5.3 5.0 4.1 3.8 3.6 3.3
capita)
Paid-in Min.
Capital (% of
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
income per
capita)
Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not last
year’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and the
addition of 2 economies (Barbados and Malta) to the sample this year.


STARTING A BUSINESS
Equally helpful may be the benchmarks provided by a business (figure 2.3). These benchmarks help show
the economies that over time have had the best what is possible in making it easier to start a business.
performance regionally or globally on the procedures, And changes in regional averages can show where
time, cost or paid-in minimum capital required to start Mauritius is keeping up—and where it is falling behind.

Figure 2.3 Has starting a business become easier over time?
Procedures (number)

Time (days)


STARTING A BUSINESS
Cost (% of income per capita)

Paid-in minimum capital (% of income per capita)

Note: Ninety-one economies globally have no paid-in minimum capital requirement.


STARTING A BUSINESS
Economies around the world have taken steps making greater firm satisfaction and savings and more
it easier to start a business—streamlining procedures registered businesses, financial resources and job
by setting up a one-stop shop, making procedures opportunities.
simpler or faster by introducing technology and
What business registration reforms has Doing Business
reducing or eliminating minimum capital requirements.
recorded in Mauritius (table 2.2)?
Many have undertaken business registration reforms in
stages—and they often are part of a larger regulatory
reform program. Among the benefits have been

Table 2.2 How has Mauritius made starting a business easier—or not?

DB year Reform

Mauritius made starting a business faster by implementing a
DB2008 centralized database linking the company registry with tax,
social security, and local authorities.
On-line reforms further simplified registration process and
DB2009 formalities were streamlined, reducing the number of
procedures.

DB2010 No reform as measured by Doing Business.




Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reports
for these years, available at http://www.doingbusiness.org.


STARTING A BUSINESS

What are the details?
Underlying the indicators shown in this chapter for
STANDARDIZED COMPANY
Mauritius is a set of specific procedures—the
bureaucratic and legal steps that an entrepreneur
must complete to incorporate and register a new City: Port Louis
firm. These are identified by Doing Business
through collaboration with relevant local Legal Form: Private Limited Liability Company
professionals and the study of laws, regulations and Paid in Minimum Capital Requirement: None
publicly available information on business entry in
that economy. Following is a detailed summary of Start-up Capital: 10 times GNI per capita
those procedures, along with the associated time
and cost. These procedures are those that apply to
a company matching the standard assumptions
(the ―standardized company‖) used by Doing
Business in collecting the data (see the section in
this chapter on what the indicators measure).
Summary of procedures for starting a business in Mauritius—and the time and cost
Time to
No. Procedure Cost to complete
complete
Incorporate and register the business and search for compagny
name on line

Entreprenuers can form a company without having to go through
notary services. An annual registration fee of MUR 2000 is payable to
the Registrar of Companies by small private companies (compagnies
with a turnover of less than MUR 30 Million).
The company must also register with the Commercial Registry to get a
business registration card. Therefore, the company must complete an
application form (downloaded from the Internet :
http://www.boimauritius.com). The Commercial Registry automatically
informs the tax and local authorities, therefore, the company is not MUR 2,000 for
required to register separately with the Tax Office unless it intends to 2 days registration + MUR
1
import equipment and thus needs a tax account number. Otherwise,
100 for name search
registration at the Tax Office is automatic; the Registrar of Companies
sends the list of registered companies to the Mauritius Revenue
Authority, which then creates the tax account for these companies.
The entrepreneur must complete an application form and submit the
employment contracts, the employer registration, and of the certificate
of incorporation on the Central registration database (two copies). Data
is downloaded from the Central Business Registration Database system
located at the Registrar of Companies. Potential employers are
contacted by the Social Security Office. The social security is connected
to the online business registry and obtains all the relevant information
when a business is registered.

2 Receive inspection by local authorities about 4 days no charge


Time to
complete

The business licensing process was simplified. Once the company is
registered, the Commercial Registry provides relevant agencies with an
electronic notice about the newly registered business and the expected
start date of its business activities. These agencies including other
relevant ministries and the local authorities (the sanitary authority, the
police department, the fire services department, ministry of health,
ministry of the environment, and so forth). Subsequently, local
authorities will select those prospective businesses that intend to trade
within its jurisdiction and will communicate fees, relevant guidelines,
and any other provisions.

The relevant local authority will carry out ex-post control during
company operation to ensure compliance with its guidelines. Note that
business license application forms and guidelines can be found at the
municipality’s
Web site.
* Pay license fees

In addition to satisfying guidelines issued by the local authority, the
prospective company must pay license fees according to the trade 1 day, (simultaneous
3 classification published by the local authority. The fee for the current MUR 6,000
with procedure 2)
financial year must be paid in 15 days of the start of the business and
no later than January 15th in subsequent financial years. The authority
will levy a 50% surcharge on any unpaid amount within the prescribed
period.
* Register with the Social Security Office

The entrepreneur must complete an application form and submit the
employment contracts, the employer registration, and the certificate of
incorporation on the Central registration database (two copies). Data is 1 day, (simultaneous no charge
4
downloaded from the Central Business Registration Database system with procedure 2)
located at the Registrar of Companies. Potential employers are
contacted by the Social Security Office. Online registration for
socialsecurity at the time of registration is possible, however the system
is not completely operational.
* Make a company seal 1 day, (simultaneous
5 USD 12
with procedure 2)

* Takes place simultaneously with another procedure.


DEALING WITH CONSTRUCTION PERMITS

Regulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTION
public. But it needs to be efficient, to avoid
PERMITS INDICATORS MEASURE
excessive constraints on a sector that plays an
important part in every economy. Where complying
with building regulations is excessively costly in Procedures to legally build a warehouse
time and money, many builders opt out. They may (number)
pay bribes to pass inspections or simply build Submitting all relevant documents and
illegally, leading to hazardous construction that obtaining all necessary clearances, licenses,
puts public safety at risk. Where compliance is permits and certificates
simple, straightforward and inexpensive, everyone Completing all required notifications and
is better off. receiving all necessary inspections
What do the indicators cover? Obtaining utility connections for water,
Doing Business records the procedures, time and sewerage and a fixed telephone line
cost for a business to obtain all the necessary Registering the warehouse after its
approvals to build a simple commercial warehouse completion (if required for use as collateral or
in the economy’s largest business city, connect it to for transfer of the warehouse)
basic utilities and register the property so that it Time required to complete each procedure
can be used as collateral or transferred to another (calendar days)
entity.
The ranking on the ease of dealing with information
construction permits is the simple average of the
Each procedure starts on a separate day
percentile rankings on its component indicators:
procedures, time and cost. Procedure completed once final document is
received
Doing Business uses several assumptions about the No prior contact with officials
business and the warehouse, including the utility Cost required to complete each procedure (%
connections. of income per capita)
The business: Official costs only, no bribes
 Is a limited liability company operating in
 Will be connected to water, sewerage
the construction business and located in
(sewage system, septic tank or their
the largest business city.
equivalent) and a fixed telephone line. The
 Is domestically owned and operated. connection to each utility network will be 10
meters (32 feet, 10 inches) long.
 Has 60 builders and other employees.
 Will be used for general storage, such as of
The warehouse:
books or stationery (not for goods requiring
 Is a new construction (there was no special conditions).
previous construction on the land).
 Will take 30 weeks to construct (excluding all
 Has complete architectural and technical delays due to administrative and regulatory
plans prepared by a licensed architect. requirements).



What does it take to comply with the formalities to permits there requires 16 procedures, takes 143 days
build a warehouse in Mauritius? According to data and costs 28.5% of income per capita (figure 3.1).
collected by Doing Business, dealing with construction

Figure 3.1 What it takes to comply with formalities to build a warehouse in Mauritius

the dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details on
the procedures reflected here, see the summary at the end of this chapter.


Globally, Mauritius stands at 62 in the ranking of 185 other useful information for assessing how easy it is for
economies on the ease of dealing with construction an entrepreneur in Mauritius to legally build a
permits (figure 3.2). The rankings for comparator warehouse.
economies and the regional average ranking provide

Figure 3.2 How Mauritius and comparator economies rank on the ease of dealing with construction permits





While the most recent Doing Business data reflect how of the process have changed—and which have not
easy (or difficult) it is to deal with construction permits (table 3.1). That can help identify where the potential
in Mauritius today, data over time show which aspects for improvement is greatest.

Table 3.1 The ease of dealing with construction permits in Mauritius over time

Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013

Rank .. .. .. .. .. .. 60 62

Procedures (number) 17 17 16 16 16 16 16 16

Time (days) 185 185 143 143 143 143 143 143

Cost (% of income
14.7 13.4 43.3 41.0 35.5 32.3 30.6 28.5
per capita)
year’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and
the addition of 2 economies (Barbados and Malta) to the sample this year. For more information on ―no practice‖ marks, see the
data notes.


Equally helpful may be the benchmarks provided by possible in making it easier to deal with construction
the economies that over time have had the best permits. And changes in regional averages can show
performance regionally or globally on the procedures, where Mauritius is keeping up—and where it is falling
time or cost required to deal with construction permits behind.
(figure 3.3). These benchmarks help show what is

Figure 3.3 Has dealing with construction permits become easier over time?
Procedures (number)

Time (days)


Cost (% of income per capita)



Smart regulation ensures that standards are met while building safety while keeping compliance costs
making compliance easy and accessible to all. reasonable, governments around the world have
Coherent and transparent rules, efficient processes and worked on consolidating permitting requirements.
adequate allocation of resources are especially What construction permitting reforms has Doing
important in sectors where safety is at stake. Business recorded in Mauritius (table 3.2)?
Construction is one of them. In an effort to ensure

Table 3.2 How has Mauritius made dealing with construction permits easier—or not?

DB year Reform

Mauritius made obtaining construction permits easier by
combining procedures of getting development permit and
DB2008
building permit, and it also set up an official time frame to
process the permit application.






Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports
for these years, available at http://www.doingbusiness.org.



The indicators reported here for Mauritius are
BUILDING A WAREHOUSE
based on a set of specific procedures—the steps
that a company must complete to legally build a
warehouse—identified by Doing Business through City : Port Louis
information collected from experts in construction
licensing, including architects, construction
Estimated
lawyers, construction firms, utility service providers MUR 10,405,000
Warehouse Value :
and public officials who deal with building
regulations. These procedures are those that apply The procedures, along with the associated time and
to a company and structure matching the standard cost, are summarized below.
assumptions used by Doing Business in collecting
the data (see the section in this chapter on what
the indicators cover).
Summary of procedures for dealing with construction permits in Mauritius —and the time and cost
Time to
complete
Obtain plan approval from Central Electricity Board (CEB)

The procedure of obtaining plan approval consists of a notification and 15 days MUR 250
1
a check that all the requirements have been met, rather than an
approval per se. Approvals from the utilities and the Fire Department
are a prerequisite for the building and land-use permit.
* Obtain plan approval from Central Water Authority (CWA)

The procedure of obtaining plan approval is a notification and a check 15 days MUR 250
2
that all the requirements have been met, rather than an approval per
se. Approvals from the utilities and the Fire Department are a
prerequisite for the building and land-use permit.
* Obtain plan approval from WasteWater Management Authority
(WMA)

It is mandatory to obtain a building sewerage clearance before
requesting a building and land-use permit. 2 sets of building plan must
be submitted to either the Port-Louis Sewerage office for buildings in
Port-Louis and in the northern parts of the island or Beau-Bassin
3 sewerage office for buildings in upper and lower Plaines-Wilhems and 15 days MUR 250
southern parts of the island

An acknowledgement receipt will be issued upon deposit and clearance
will be issued within 15 days.

Obtain building and land use permit

4 21 days MUR 65,530
As of October 1, 2006, a single permit, the building and land-use permit
(BLP), has replaced both the development permit and the building


Time to
complete
permit. The authority for execution and enforcement of the Building
Act and of the Town and Country Planning Act is the local authority of
the town or district where the relevant establishment is to be built or
the land to be developed.

Every application for a building and land-use permit must be in
accordance with provisions of the Building Act, the Town and Country
Planning Act, and the Planning and Development Act of 2004. The
following documents are needed along with the application:
• Copy of the title deed or Copy of the lease and planning clearance
from the Ministry of Housing and Lands if for state land
• Consent of owner and copy of the owner’s national identity card
• Copy of the national identity card of the applicant
• Three sets of plans, comprising site and location plans, layout,
elevations, and sections.
• Public notification by way of plate display and notice in two daily
newspapers (for development within residential zones)
• Consent of neighbors (not required in this case because it is
industrial). Consent is required if the distance between the new building
and neighboring constructions is less than 1 meter for one-story
buildings and 1.5 meters for two-story buildings
• PER/environmental impact assessment (EIA) LICENSE for SCHEDULED
undertakings: the PER is for small projects, while the EIA is for bigger
ones with a potential environmental impact. Neither applies to a
warehouse, as considered here
• All plans must be signed by the draughtsman for buildings of less
than 250 sq. m. in floor area and must include the name and address.
The total floor area is to be indicated on the site plan, while the floor
area for each level is to be indicated on the corresponding floor plans
• For buildings of 250 sq. m. or more in floor area, all plans are to be
signed by a registered professional architect, including the architect’s
name, address, VAT registration number, and registration number with
the Professional Architects Council. The total floor area is to be
indicated on the site plan, while the floor area for each level is to be
indicated on the corresponding floor plans. The application form can
be obtained from the Planning Department of any local authority, Small
Enterprises and Handicraft Development Authority (SEHDA), the Board
of Investment, or the Ministry of Local Government, or it can be
downloaded from various Web sites, including the Web sites of the
agencies mentioned above

In accordance with the Local Government Act 2011, applications for the
building and land-use permit that are in accordance with the act and
guidelines the development and building permits should, within 14
working days of the effective date of receipt of the application, and
after approval of the Executive Committee, issue the Building and Land
Use permit.

The costs associated with the application for the dual permit include an
application fee of MUR 500 + charges computed based on land area as
follows:
• MUR 10.00 per sq. m. for areas of 250 sq. m. or less
• MUR 20.00 per sq. m. for areas ranging from 251 to 500 sq. m.


Time to
complete
• MUR 50.00 per sq. m. for areas of more than 500 sq. m.

Receive initial stage inspection

5 By law, the company must notify the municipal authority in writing that 1 day no charge
it plans to begin construction activities. In reality, this does not happen,
and inspections are rarely carried out.
Receive foundation level inspection
6 1 day no charge
Inspections rarely occur in practice.
Receive roof inspection
7 1 day no charge
Inspections rarely occur in practice.
* Request and receive fire inspection

BuildCo needs a series of clearances in order to apply for a building
permit, such as a fire clearance and clearances from the Central
8 Electricity Board, Central Water Authority, and sewerage authorities. 1 day MUR 100
After completion of construction and before starting up business
operations, BuildCo informs the Fire Department, which sends out
inspectors and issues a fire certificate immediately after the inspection
has been completed.
Receive sewerage clearance from the WasteWater Management
Authority (WMA)

For the Building sewerage clearance you must deposit 2 sets of
Building Plan to:

• Port-Louis Sewerage office for buildings in Port-Louis and in the 1 day no charge
9
northern parts of the island
• Beau-Bassin sewerage office for buildings in Upper and Lower Plaines
Wilhems and Southern parts of the island.

An acknowledgement receipt will be issued upon deposit and
Clearance will be issued within 15 days.

Obtain sewage connection from WasteWater Management
Authority (WMA) 60 days MUR 1,750
10

* Receive inspection from the Central Water Authority (CWA)

The application for a new water connection can now be submitted by
email with all the required documents, which are:

• ID Card / Passport 1 day no charge
11
• Title Deed
• A copy of the constitution of the body corporate or societé and the
name of the Directors/Associés authorized to sign on behalf of the
body Corporate/Societé
• Site Plan / Location Plan
• Front Elevation Drawing


Time to
complete
• Existing Water Supply (if any)
• Water Requirement (in m3 daily)

The minimum fee is MUR 1,300.00 for the registration and a non-
refundable processing fee of MUR 500.00 (for non-domestic supply).

New applications are processed within one month.

Obtain water connection from CWA
12 14 days MUR 1,800

Obtain phone connection from Mauritius Telecom
13 10 days MUR 3,000

* Notify municipality of the completion of construction and receive
final inspection

At the end of the construction, BuildCo contacts the municipality to
14 apply for an occupancy permit. The municipality conducts the final 1 day no charge
inspection within 10 days. The findings of this inspection are then sent
to the Evaluation Office of the Ministry of Local Government. This office
assesses the occupancy permit fee. This assessment takes another 10
days.
* Obtain fire safety clearance

The procedure of obtaining plan approval is a notification and a check 14 days MUR 250
15
that all the requirements have been met, rather than an approval per
se. Approvals from the utilities and the Fire Department are a
prerequisite for the building and land-use permit.
Issuance of occupancy permit by the Ministry of Local Government

16 There is no need to register the building at the end of this process 10 days no charge
because the building is registered for tax purposes through the
issuance of an occupancy permit.


GETTING ELECTRICITY
Access to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITY
for businesses. To counter weak electricity supply,
many firms in developing economies have to rely INDICATORS MEASURE
on self-supply, often at a prohibitively high cost.
Whether electricity is reliably available or not, the Procedures to obtain an electricity
first step for a customer is always to gain access by connection (number)
obtaining a connection.
Submitting all relevant documents and
What do the indicators cover? obtaining all necessary clearances and permits
Doing Business records all procedures required for Completing all required notifications and
a local business to obtain a permanent electricity receiving all necessary inspections
connection and supply for a standardized
warehouse, as well as the time and cost to Obtaining external installation works and
complete them. These procedures include possibly purchasing material for these works
applications and contracts with electricity utilities, Concluding any necessary supply contract and
clearances from other agencies and the external obtaining final supply
and final connection works. The ranking on the
ease of getting electricity is the simple average of Time required to complete each procedure
the percentile rankings on its component (calendar days)
indicators: procedures, time and cost. To make the Is at least 1 calendar day
data comparable across economies, several
assumptions are used. Each procedure starts on a separate day

The warehouse: Does not include time spent gathering
information
 Is located in the economy’s largest
business city, in an area where other Reflects the time spent in practice, with little
warehouses are located. follow-up and no prior contact with officials

 Is not in a special economic zone where Cost required to complete each procedure
the connection would be eligible for (% of income per capita)
subsidization or faster service. Official costs only, no bribes
 Has road access. The connection works Excludes value added tax
involve the crossing of a road or roads but
are carried out on public land.
 Is 150 meters long.
 Is a new construction being connected to
 Is to either the low-voltage or the medium-
electricity for the first time.
voltage distribution network and either overhead
 Has 2 stories, both above ground, with a or underground, whichever is more common in
total surface of about 1,300.6 square the economy and in the area where the
meters (14,000 square feet), and is built on warehouse is located. The length of any
a plot of 929 square meters (10,000 square connection in the customer’s private domain is
feet). negligible.
The electricity connection:  Involves installing one electricity meter. The
monthly electricity consumption will be 0.07
 Is a 3-phase, 4-wire Y, 140-kilovolt-ampere
gigawatt-hour (GWh). The internal electrical
(kVA) (subscribed capacity) connection.
wiring has been completed.


GETTING ELECTRICITY

What does it take to obtain a new electricity procedures, takes 84 days and costs 295.1% of income
connection in Mauritius? According to data collected per capita (figure 4.1).
by Doing Business, getting electricity there requires 4

Figure 4.1 What it takes to obtain an electricity connection in Mauritius

the getting electricity indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the procedures
reflected here, see the summary at the end of this chapter.


GETTING ELECTRICITY
Globally, Mauritius stands at 44 in the ranking of 185 regional average ranking provide another perspective
economies on the ease of getting electricity (figure in assessing how easy it is for an entrepreneur in
4.2). The rankings for comparator economies and the Mauritius to connect a warehouse to electricity.

Figure 4.2 How Mauritius and comparator economies rank on the ease of getting electricity



GETTING ELECTRICITY
Even more helpful than rankings on the ease of getting performers on these indicators may provide useful
electricity may be the indicators underlying those benchmarks.
rankings (table 4.1). And regional and global best

Table 4.1 The ease of getting electricity in Mauritius

Best performer in
Best performer
Indicator Mauritius DB2013 Mauritius DB2012 Sub-Saharan Africa
globally DB2013
DB2013

Rank 44 44 Mauritius (44) Iceland (1)

Procedures
(number) 4 4 Comoros (3) Germany (3)*

Time (days) 84 91 Rwanda (30) Germany (17)

Cost (% of income
per capita) 295.1 328.5 Mauritius (295.1) Japan (0.0)

Note: DB2012 rankings shown are not last year’s published rankings but comparable rankings for DB2012 that capture the
effects of such factors as data corrections and the addition of 2 economies (Barbados and Malta) to the sample this year.
* Two or more economies share the top ranking on this indicator. For a list of these economies, see the Doing Business website
(http://www.doingbusiness.org).


GETTING ELECTRICITY
Obtaining an electricity connection is essential to safety in the connection process while keeping
enable a business to conduct its most basic operations. connection costs reasonable, governments around the
In many economies the connection process is world have worked to consolidate requirements for
complicated by the multiple laws and regulations obtaining an electricity connection. What reforms in
involved—covering service quality, general safety, getting electricity has Doing Business recorded in
technical standards, procurement practices and Mauritius (table 4.2)?
internal wiring installations. In an effort to ensure

Table 4.2 How has Mauritius made getting electricity easier—or not?

DB year Reform





GETTING ELECTRICITY

The indicators reported here for Mauritius are based
OBTAINING AN ELECTRICITY CONNECTION
on a set of specific procedures—the steps that an
entrepreneur must complete to get a warehouse
connected to electricity by the local distribution City: Port Louis
utility—identified by Doing Business. Data are collected
from the distribution utility, then completed and
Name of Utility: Central Electricity Board
verified by electricity regulatory agencies and
(C.E.B.)
independent professionals such as electrical engineers,
The procedures are those that apply to a warehouse
electrical contractors and construction companies. The
and electricity connection matching the standard
electricity distribution utility surveyed is the one
assumptions used by Doing Business in collecting the
serving the area (or areas) in which warehouses are
data (see the section in this chapter on what the
located. If there is a choice of distribution utilities, the
indicators cover). The procedures, along with the
one serving the largest number of customers is
associated time and cost, are summarized below.
selected.
Summary of procedures for getting electricity in Mauritius—and the time and cost
Time to
complete
Submit application with Central Electricity Board (CEB) and await
estimate

An application can be submitted in person, by letter, fax or online. The
following documents have to be attached: • location plan
• site plan
1 • national identity card or passport nr. 25 calendar days MUR 34,897.4
• building permit
• trade license from local authority
• title deed of land acquisitioned or lease agreement (need to be
notarized)
• load details.
Payment of the estimate is done at the utility.
* Central Electricity Board (CEB) carries out external and visual
internal inspection

An external inspection of the site is done by the utility. Someone from
2 the customer's party has to be present. An internal inspection (visual 7 calendar days no charge
inspection only without tests) is done after completion of the internal
wiring. It is requested by calling, over the counter, mail, email, fax. The
customer’s electrical contractor is doing the internal wiring. The utility
requests an installation wiring certificate from the contractor.
The client's electrical contractor carries out the civil work for the
transformer

3 The client's electrical contractor carries out the civil works for the 30 calendar days MUR 300,000.0
transformer. Trench details and transformer room details are provided by
the utility. The works consist of the excavation of trenches, laying of pipe
ducts in trenches, construction of concrete pillars, draw pits, supply and


Time to
complete
placing of poles, construction of transformer room.
Central Electricity Board (CEB) carries out a routine inspection of the
civil works, external connection works and meter installation

An inspector from the utility carries out a routine check to verify
compliance of the civil works with details provided by the utility. The
4 utility is in charge of the design of the connection and the physical 29 calendar days MUR 423,000.0
works. The external connection works can be done within one month.
Material is always available. The customer does not have to buy material.
The meter gets installed at the same time as when the connection is
done by the utility. Electricity starts flowing from the moment the
connection is done.


REGISTERING PROPERTY

Ensuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTY
Effective administration of land is part of that. If
INDICATORS MEASURE
formal property transfer is too costly or
complicated, formal titles might go informal
again. And where property is informal or poorly Procedures to legally transfer title on
administered, it has little chance of being immovable property (number)
accepted as collateral for loans—limiting access to Preregistration (for example, checking for liens,
finance. notarizing sales agreement, paying property
transfer taxes)
What do the indicators cover?
Registration in the economy’s largest business
Doing Business records the full sequence of city
procedures necessary for a business to purchase
property from another business and transfer the Postregistration (for example, filing title with
the municipality)
property title to the buyer’s name. The transaction
is considered complete when it is opposable to Time required to complete each procedure
third parties and when the buyer can use the (calendar days)
property, use it as collateral for a bank loan or
resell it. The ranking on the ease of registering information
property is the simple average of the percentile
rankings on its component indicators: procedures, Each procedure starts on a separate day
time and cost. Procedure completed once final document is
received
several assumptions about the parties to the No prior contact with officials
transaction, the property and the procedures are
Cost required to complete each procedure
used.
(% of property value)
The parties (buyer and seller):
Official costs only, no bribes
 Are limited liability companies, 100% No value added or capital gains taxes included
domestically and privately owned.
 Are located in the periurban area of the
economy’s largest business city.  Has no mortgages attached and has been
under the same ownership for the past 10
 Have 50 employees each, all of whom are
years.
nationals.
 Consists of 557.4 square meters (6,000 square
 Perform general commercial activities.
feet) of land and a 10-year-old, 2-story
The property (fully owned by the seller): warehouse of 929 square meters (10,000
 Has a value of 50 times income per capita. square feet). The warehouse is in good
The sale price equals the value. condition and complies with all safety
standards, building codes and legal
 Is registered in the land registry or requirements. The property will be transferred
cadastre, or both, and is free of title in its entirety.
disputes.
 Is located in a periurban commercial zone,
and no rezoning is required.



What does it take to complete a property transfer in procedures, takes 15 days and costs 10.6% of the
Mauritius? According to data collected by Doing property value (figure 5.1).
Business, registering property there requires 4

Figure 5.1 What it takes to register property in Mauritius

the registering property indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the
procedures reflected here, see the summary at the end of this chapter.


Globally, Mauritius stands at 60 in the ranking of 185 regional average ranking provide other useful
economies on the ease of registering property (figure information for assessing how easy it is for an
5.2). The rankings for comparator economies and the entrepreneur in Mauritius to transfer property.

Figure 5.2 How Mauritius and comparator economies rank on the ease of registering property




While the most recent Doing Business data reflect how process have changed—and which have not (table 5.1).
easy (or difficult) it is to register property in Mauritius That can help identify where the potential for
today, data over time show which aspects of the improvement is greatest.

Table 5.1 The ease of registering property in Mauritius over time

Indicator DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013

Rank .. .. .. .. .. .. .. 66 60

Procedures
(number) 6 6 6 6 4 4 4 4 4

Time (days) 210 210 210 210 210 26 26 22 15

Cost (% of property
value) 15.7 15.7 15.8 10.8 10.8 10.7 10.6 10.6 10.6

year’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and
the addition of 2 economies (Barbados and Malta) to the sample this year. For more information on ―no practice‖ marks, see
the data notes.


Equally helpful may be the benchmarks provided by (figure 5.3). These benchmarks help show what is
the economies that over time have had the best possible in making it easier to register property. And
performance regionally or globally on the procedures, changes in regional averages can show where
time or cost required to complete a property transfer Mauritius is keeping up—and where it is falling behind.

Figure 5.3 Has registering property become easier over time?
Procedures (number)

Time (days)


Cost (% of property value)



Economies worldwide have been making it easier for have cut the time required substantially—enabling
entrepreneurs to register and transfer property—such buyers to use or mortgage their property earlier. What
as by computerizing land registries, introducing time property registration reforms has Doing Business
limits for procedures and setting low fixed fees. Many recorded in Mauritius (table 5.2)?

Table 5.2 How has Mauritius made registering property easier—or not?

DB year Reform

Mauritius made registering property cheaper by reducing the
DB2008
property registration fee.
Mauritius abolished two procedures, the requirement to
DB2009 obtain clearance certificate from the Waste Water Authority
and to obtain a tax clearance certificate for municipal taxes.
Mauritius has made it easier to register property by setting a
DB2010 statutory time limit of 15 days to obtain the final property title
from the Land Registry.



Mauritius made property transfers faster by implementing an
DB2013 electronic information management system at the Registrar-
General’s Department.
Note: For information on reforms in earlier years (back to DB2005), see the Doing Business
reports for these years, available at http://www.doingbusiness.org.

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