World bank doing business in mauritius 2013

  • 842 views
Uploaded on

World bank doing business in mauritius 2013

World bank doing business in mauritius 2013

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
842
On Slideshare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
5
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Economy Profile: Mauritius
  • 2. Doing Business 2013 Mauritius 2© 2013 The International Bank for Reconstruction and Development /The World Bank1818 H Street NW, Washington, DC 20433Telephone: 202-473-1000; Internet: www.worldbank.orgAll rights reserved.1 2 3 4 15 14 13 12A copublication of The World Bank and the International Finance Corporation.This work is a product of the staff of The World Bank with external contributions.Note that The World Bank does not necessarily own each component of the contentincluded in the work. The World Bank therefore does not warrant that the use of thecontent contained in the work will not infringe on the rights of third parties. The riskof claims resulting from such infringement rests solely with you.The findings, interpretations, and conclusions expressed in this work do notnecessarily reflect the views of The World Bank, its Board of Executive Directors, orthe governments they represent. The World Bank does not guarantee the accuracy ofthe data included in this work. The boundaries, colors, denominations, and otherinformation shown on any map in this work do not imply any judgment on the part ofThe World Bank concerning the legal status of any territory or the endorsement oracceptance of such boundaries.Nothing herein shall constitute or be considered to be a limitation upon or waiver ofthe privileges and immunities of The World Bank, all of which are specificallyreserved.Rights and PermissionsThis work is available under the Creative Commons Attribution 3.0 Unported license(CC BY 3.0) http://creativecommons.org/licenses/by/3.0. Under the CreativeCommons Attribution license, you are free to copy, distribute, transmit, and adaptthis work, including for commercial purposes, under the following conditions:Attribution—Please cite the work as follows: World Bank. 2013. Doing Business 2013:Smarter Regulations for Small and Medium-Size Enterprises. Washington, DC: WorldBank Group. DOI: 10.1596/978-0-8213-9615-5. License: Creative CommonsAttribution CC BY 3.0Translations—If you create a translation of this work, please add the followingdisclaimer along with the attribution: This translation was not created by The WorldBank and should not be considered an official World Bank translation. The World Bankshall not be liable for any content or error in this translation.All queries on rights and licenses should be addressed to the Office of the Publisher,The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;e-mail: pubrights@worldbank.org.Additional copies of all 10 editions of Doing Business may be purchased atwww.doingbusiness.org.Cover design: Corporate Visions, Inc.
  • 3. Doing Business 2013 Mauritius 3CONTENTSIntroduction .................................................................................................................................. 4The business environment .......................................................................................................... 5Starting a business ..................................................................................................................... 14Dealing with construction permits ........................................................................................... 23Getting electricity ....................................................................................................................... 34Registering property .................................................................................................................. 41Getting credit .............................................................................................................................. 50Protecting investors ................................................................................................................... 57Paying taxes ................................................................................................................................ 66Trading across borders .............................................................................................................. 74Enforcing contracts .................................................................................................................... 83Resolving insolvency .................................................................................................................. 93Employing workers .................................................................................................................... 99Data notes ................................................................................................................................. 106Resources on the Doing Business website ............................................................................ 111
  • 4. Doing Business 2013 Mauritius 4INTRODUCTIONDoing Business sheds light on how easy or difficult it is the paying taxes indicators, which cover the periodfor 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. Otherregulations. It measures and tracks changes in areas important to business—such as an economy’sregulations affecting 11 areas in the life cycle of a proximity to large markets, the quality of itsbusiness: starting a business, dealing with construction infrastructure services (other than those related topermits, getting electricity, registering property, trading across borders and getting electricity), thegetting credit, protecting investors, paying taxes, security of property from theft and looting, thetrading across borders, enforcing contracts, resolving transparency of government procurement,insolvency and employing workers. macroeconomic conditions or the underlying strengthIn a series of annual reports Doing Business presents of institutions—are not directly studied by Doingquantitative indicators on business regulations and the Business. The indicators refer to a specific type ofprotection of property rights that can be compared business, generally a local limited liability companyacross 185 economies, from Afghanistan to Zimbabwe, operating in the largest business city. Becauseover 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 across24 in East Asia and the Pacific, 24 in Eastern Europe economies. The data not only highlight the extent ofand Central Asia, 19 in the Middle East and North obstacles to doing business; they also help identify theAfrica and 8 in South Asia, as well as 31 OECD high- source of those obstacles, supporting policy makers inincome 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. Doingworked, where and why. Business 2013 presents the indicators, analyzes theirThis economy profile presents the Doing Business relationship with economic outcomes and presentsindicators for Mauritius. To allow useful comparison, it business regulatory reforms. The data, along withalso 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 atthis report are current as of June 1, 2012 (except for http://www.doingbusiness.org.
  • 5. Doing Business 2013 Mauritius 5THE BUSINESS ENVIRONMENTFor policy makers trying to improve their economy’sregulatory environment for business, a good place to ECONOMY OVERVIEWstart is to find out how it compares with the regulatoryenvironment in other economies. Doing Businessprovides an aggregate ranking on the ease of doing Region: Sub-Saharan Africabusiness based on indicator sets that measure andbenchmark regulations applying to domestic small to Income category: Upper middle incomemedium-size businesses through their life cycle.Economies are ranked from 1 to 185 by the ease of Population: 1,286,051doing business index. For each economy the index iscalculated as the ranking on the simple average of its GNI per capita (US$): 8,240percentile rankings on each of the 10 topics included inthe index in Doing Business 2013: starting a business, DB2013 rank: 19dealing with construction permits, getting electricity,registering property, getting credit, protecting DB2012 rank: 24*investors, paying taxes, trading across borders, Change in rank: 5enforcing contracts and resolving insolvency. Theranking on each topic is the simple average of thepercentile rankings on its component indicators (see * DB2012 ranking shown is not last year’s publishedthe data notes for more details). The employing workers ranking but a comparable ranking for DB2012 thatindicators are not included in this year’s aggregate ease captures the effects of such factors as dataof doing business ranking, but the data are presented corrections and the addition of 2 economiesin 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 businessbenchmarks each economy’s performance on theindicators against that of all other economies in theDoing Business sample (figure 1.1). While this rankingtells much about the business environment in aneconomy, it does not tell the whole story. The ranking onthe ease of doing business, and the underlyingindicators, do not measure all aspects of the businessenvironment that matter to firms and investors or thataffect the competitiveness of the economy. Still, a highranking does mean that the government has created aregulatory environment conducive to operating abusiness.
  • 6. Doing Business 2013 Mauritius 6THE BUSINESS ENVIRONMENTFigure 1.1 Where economies stand in the global ranking on the ease of doing businessSource: Doing Business database.
  • 7. Doing Business 2013 Mauritius 7 THE BUSINESS ENVIRONMENT 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 businessSource: Doing Business database.
  • 8. Doing Business 2013 Mauritius 8THE BUSINESS ENVIRONMENTFigure 1.3 How Mauritius ranks on Doing Business topicsSource: Doing Business database.
  • 9. Doing Business 2013 Mauritius 9THE BUSINESS ENVIRONMENTJust as the overall ranking on the ease of doing business year Doing Business introduced the distance to frontiertells only part of the story, so do changes in that ranking. measure. This measure shows how far each economy isYearly movements in rankings can provide some indication from the best performance achieved by any economy sinceof 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 inmight change because of developments in other time allows users to assess how much the economy’seconomies. An economy that implemented business regulatory environment as measured by Doing Businessregulation reforms may fail to rise in the rankings (or may has changed over time—how far it has moved toward (oreven drop) if it is passed by others whose business away from) the most efficient practices and strongestregulation 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 widelyMoreover, year-to-year changes in the overall rankings do across the areas measured. They also may show that annot reflect how the business regulatory environment in an economy is relatively close to the frontier in some areaseconomy 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, lastFigure 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 anyeconomy on each Doing Business indicator since 2005. The measure is normalized to range between 0 and 100, with 100 representingthe best performance (the frontier). The overall distance to frontier is the average of the distance to frontier in the 9 indicator setsshown in the figure. See the data notes for more details on the distance to frontier measure.Source: Doing Business database.
  • 10. Doing Business 2013 Mauritius 10THE BUSINESS ENVIRONMENTThe absolute values of the indicators tell another part business regulation—such as a regulatory process thatof the story (table 1.1). The indicators, on their own or can be completed with a small number of proceduresin comparison with the indicators of a good practice in a few days and at a low cost. Comparison of theeconomy or those of comparator economies in the economy’s indicators today with those in the previousregion, 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) Cost (% of income per 28.5 30.6 172.7 211.9 1,116.9 110.9 25.3 Qatar (1.1) capita)
  • 11. Doing Business 2013 Mauritius 11 Best performer globally Madagascar DB2013 Seychelles DB2013 Botswana DB2013 Mauritius DB2013 Mauritius DB2012 Namibia DB2013Indicator Kenya DB2013 DB2013Getting 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)Cost (% of income per 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)*
  • 12. Doing Business 2013 Mauritius 12 Best performer globally Madagascar DB2013 Seychelles DB2013 Botswana DB2013 Mauritius DB2013 Mauritius DB2012 Namibia DB2013Indicator Kenya DB2013 DB2013Extent 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 EmiratesPaying Taxes (rank) 12 13 39 164 68 112 20 (1)Payments (number per Hong Kong SAR, China 7 7 32 41 23 37 27year) (3)* United Arab EmiratesTime (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)
  • 13. Doing Business 2013 Mauritius 13 Best performer globally 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 ofsuch factors as data corrections and the addition of 2 economies (Barbados and Malta) to the sample this year. The rankingmethodology for the paying taxes indicators changed in Doing Business 2013; see the data notes for details. For more informationon “no practice” marks, see the data notes. Data for the outcome of the resolving insolvency indicator are not available forDB2012.* Two or more economies share the top ranking on this indicator. A number shown in place of an economy’s name indicates thenumber 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).Source: Doing Business database.
  • 14. Doing Business 2013 Mauritius 14STARTING A BUSINESSFormal registration of companies has many WHAT THE STARTING A BUSINESSimmediate benefits for the companies and forbusiness owners and employees. Legal entities can INDICATORS MEASUREoutlive their founders. Resources are pooled asseveral shareholders join forces to start a company. Procedures to legally start and operate aFormally registered companies have access to company (number)services and institutions from courts to banks as Preregistration (for example, namewell as to new markets. And their employees can verification or reservation, notarization)benefit from protections provided by the law. Anadditional benefit comes with limited liability Registration in the economy’s largestcompanies. These limit the financial liability of business citycompany owners to their investments, so personal Postregistration (for example, social securityassets of the owners are not put at risk. Where registration, company seal)governments make registration easy, moreentrepreneurs start businesses in the formal sector, Time required to complete each procedurecreating more good jobs and generating more (calendar days)revenue for the government. Does not include time spent gatheringWhat do the indicators cover? informationDoing Business measures the ease of starting a Each procedure starts on a separate daybusiness in an economy by recording all Procedure completed once final document isprocedures officially required or commonly done in receivedpractice by an entrepreneur to start up andformally operate an industrial or commercial No prior contact with officialsbusiness—as well as the time and cost required to Cost required to complete each procedurecomplete these procedures. It also records the (% of income per capita)paid-in minimum capital that companies mustdeposit before registration (or within 3 months). Official costs only, no bribesThe ranking on the ease of starting a business is No professional fees unless services requiredthe simple average of the percentile rankings on by lawthe 4 component indicators: procedures, time, costand 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 beforebusiness 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 perand 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 perpay 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.
  • 15. Doing Business 2013 Mauritius 15STARTING A BUSINESSWhere 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-inAccording to data collected by Doing Business, starting minimum capital of 0.0% of income per capita (figurea business there requires 5 procedures, takes 6 days, 2.1).Figure 2.1 What it takes to start a business in MauritiusPaid-in minimum capital (% of income per capita): 0.0Note: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology ofthe starting a business indicators, see the Doing Business website (http://www.doingbusiness.org). For details on theprocedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
  • 16. Doing Business 2013 Mauritius 16STARTING A BUSINESSGlobally, Mauritius stands at 14 in the ranking of 185 regional average ranking provide other usefuleconomies on the ease of starting a business (figure information for assessing how easy it is for an2.2). 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 businessSource: Doing Business database.
  • 17. Doing Business 2013 Mauritius 17STARTING A BUSINESSWhat 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 fortoday, data over time show which aspects of the improvement is greatest.Table 2.1 The ease of starting a business in Mauritius over timeBy 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 lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and theaddition of 2 economies (Barbados and Malta) to the sample this year.Source: Doing Business database.
  • 18. Doing Business 2013 Mauritius 18STARTING A BUSINESSEqually helpful may be the benchmarks provided by a business (figure 2.3). These benchmarks help showthe 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 wheretime, 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)
  • 19. Doing Business 2013 Mauritius 19STARTING A BUSINESSCost (% of income per capita)Paid-in minimum capital (% of income per capita)Note: Ninety-one economies globally have no paid-in minimum capital requirement.Source: Doing Business database.
  • 20. Doing Business 2013 Mauritius 20STARTING A BUSINESSEconomies around the world have taken steps making greater firm satisfaction and savings and moreit easier to start a business—streamlining procedures registered businesses, financial resources and jobby setting up a one-stop shop, making procedures opportunities.simpler or faster by introducing technology and What business registration reforms has Doing Businessreducing or eliminating minimum capital requirements. recorded in Mauritius (table 2.2)?Many have undertaken business registration reforms instages—and they often are part of a larger regulatoryreform program. Among the benefits have beenTable 2.2 How has Mauritius made starting a business easier—or not?By Doing Business report yearDB year Reform Mauritius made starting a business faster by implementing aDB2008 centralized database linking the company registry with tax, social security, and local authorities. On-line reforms further simplified registration process andDB2009 formalities were streamlined, reducing the number of procedures.DB2010 No reform as measured by Doing Business.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 21. Doing Business 2013 Mauritius 21STARTING A BUSINESSWhat are the details?Underlying the indicators shown in this chapter for STANDARDIZED COMPANYMauritius is a set of specific procedures—thebureaucratic and legal steps that an entrepreneurmust complete to incorporate and register a new City: Port Louisfirm. These are identified by Doing Businessthrough collaboration with relevant local Legal Form: Private Limited Liability Companyprofessionals and the study of laws, regulations and Paid in Minimum Capital Requirement: Nonepublicly available information on business entry inthat economy. Following is a detailed summary of Start-up Capital: 10 times GNI per capitathose procedures, along with the associated timeand cost. These procedures are those that apply toa company matching the standard assumptions(the ―standardized company‖) used by DoingBusiness in collecting the data (see the section inthis 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
  • 22. Doing Business 2013 Mauritius 22 Time to No. Procedure Cost to complete 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.Source: Doing Business database.
  • 23. Doing Business 2013 Mauritius 23DEALING WITH CONSTRUCTION PERMITSRegulation of construction is critical to protect the WHAT THE DEALING WITH CONSTRUCTIONpublic. But it needs to be efficient, to avoid PERMITS INDICATORS MEASUREexcessive constraints on a sector that plays animportant part in every economy. Where complyingwith building regulations is excessively costly in Procedures to legally build a warehousetime and money, many builders opt out. They may (number)pay bribes to pass inspections or simply build Submitting all relevant documents andillegally, leading to hazardous construction that obtaining all necessary clearances, licenses,puts public safety at risk. Where compliance is permits and certificatessimple, straightforward and inexpensive, everyone Completing all required notifications andis better off. receiving all necessary inspectionsWhat do the indicators cover? Obtaining utility connections for water,Doing Business records the procedures, time and sewerage and a fixed telephone linecost for a business to obtain all the necessary Registering the warehouse after itsapprovals to build a simple commercial warehouse completion (if required for use as collateral orin 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 procedurecan be used as collateral or transferred to another (calendar days)entity. Does not include time spent gatheringThe ranking on the ease of dealing with informationconstruction permits is the simple average of the Each procedure starts on a separate daypercentile rankings on its component indicators:procedures, time and cost. Procedure completed once final document is receivedTo make the data comparable across economies,Doing Business uses several assumptions about the No prior contact with officialsbusiness 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 ofThe 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).
  • 24. Doing Business 2013 Mauritius 24DEALING WITH CONSTRUCTION PERMITSWhere does the economy stand today?What does it take to comply with the formalities to permits there requires 16 procedures, takes 143 daysbuild a warehouse in Mauritius? According to data and costs 28.5% of income per capita (figure 3.1).collected by Doing Business, dealing with constructionFigure 3.1 What it takes to comply with formalities to build a warehouse in MauritiusNote: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology ofthe dealing with construction permits indicators, see the Doing Business website (http://www.doingbusiness.org). For details onthe procedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
  • 25. Doing Business 2013 Mauritius 25DEALING WITH CONSTRUCTION PERMITSGlobally, Mauritius stands at 62 in the ranking of 185 other useful information for assessing how easy it is foreconomies on the ease of dealing with construction an entrepreneur in Mauritius to legally build apermits (figure 3.2). The rankings for comparator warehouse.economies and the regional average ranking provideFigure 3.2 How Mauritius and comparator economies rank on the ease of dealing with construction permitsSource: Doing Business database.
  • 26. Doing Business 2013 Mauritius 26DEALING WITH CONSTRUCTION PERMITSWhat are the changes over time?While the most recent Doing Business data reflect how of the process have changed—and which have noteasy (or difficult) it is to deal with construction permits (table 3.1). That can help identify where the potentialin 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 timeBy Doing Business report year 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)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year. For more information on ―no practice‖ marks, see thedata notes.Source: Doing Business database.
  • 27. Doing Business 2013 Mauritius 27DEALING WITH CONSTRUCTION PERMITSEqually helpful may be the benchmarks provided by possible in making it easier to deal with constructionthe economies that over time have had the best permits. And changes in regional averages can showperformance regionally or globally on the procedures, where Mauritius is keeping up—and where it is fallingtime or cost required to deal with construction permits behind.(figure 3.3). These benchmarks help show what isFigure 3.3 Has dealing with construction permits become easier over time?Procedures (number)Time (days)
  • 28. Doing Business 2013 Mauritius 28DEALING WITH CONSTRUCTION PERMITSCost (% of income per capita)Source: Doing Business database.
  • 29. Doing Business 2013 Mauritius 29DEALING WITH CONSTRUCTION PERMITSSmart regulation ensures that standards are met while building safety while keeping compliance costsmaking compliance easy and accessible to all. reasonable, governments around the world haveCoherent and transparent rules, efficient processes and worked on consolidating permitting requirements.adequate allocation of resources are especially What construction permitting reforms has Doingimportant in sectors where safety is at stake. Business recorded in Mauritius (table 3.2)?Construction is one of them. In an effort to ensureTable 3.2 How has Mauritius made dealing with construction permits easier—or not?By Doing Business report yearDB year Reform Mauritius made obtaining construction permits easier by combining procedures of getting development permit andDB2008 building permit, and it also set up an official time frame to process the permit application.DB2009 No reform as measured by Doing Business.DB2010 No reform as measured by Doing Business.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 30. Doing Business 2013 Mauritius 30DEALING WITH CONSTRUCTION PERMITSWhat are the details?The indicators reported here for Mauritius are BUILDING A WAREHOUSEbased on a set of specific procedures—the stepsthat a company must complete to legally build awarehouse—identified by Doing Business through City : Port Louisinformation collected from experts in constructionlicensing, including architects, construction Estimatedlawyers, construction firms, utility service providers MUR 10,405,000 Warehouse Value :and public officials who deal with buildingregulations. These procedures are those that apply The procedures, along with the associated time andto a company and structure matching the standard cost, are summarized below.assumptions used by Doing Business in collectingthe data (see the section in this chapter on whatthe indicators cover).Summary of procedures for dealing with construction permits in Mauritius —and the time and cost Time to No. Procedure Cost to complete 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
  • 31. Doing Business 2013 Mauritius 31 Time toNo. Procedure Cost to complete 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.
  • 32. Doing Business 2013 Mauritius 32 Time toNo. Procedure Cost to complete complete • MUR 50.00 per sq. m. for areas of more than 500 sq. m. Receive initial stage inspection5 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 inspection6 1 day no charge Inspections rarely occur in practice. Receive roof inspection7 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 Central8 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 charge9 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 1,75010 * 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 charge11 • 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
  • 33. Doing Business 2013 Mauritius 33 Time to No. Procedure Cost to complete 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.* Takes place simultaneously with another procedure.Source: Doing Business database.
  • 34. Doing Business 2013 Mauritius 34GETTING ELECTRICITYAccess to reliable and affordable electricity is vital WHAT THE GETTING ELECTRICITYfor businesses. To counter weak electricity supply,many firms in developing economies have to rely INDICATORS MEASUREon self-supply, often at a prohibitively high cost.Whether electricity is reliably available or not, the Procedures to obtain an electricityfirst step for a customer is always to gain access by connection (number)obtaining a connection. Submitting all relevant documents andWhat do the indicators cover? obtaining all necessary clearances and permitsDoing Business records all procedures required for Completing all required notifications anda local business to obtain a permanent electricity receiving all necessary inspectionsconnection and supply for a standardizedwarehouse, as well as the time and cost to Obtaining external installation works andcomplete them. These procedures include possibly purchasing material for these worksapplications and contracts with electricity utilities, Concluding any necessary supply contract andclearances from other agencies and the external obtaining final supplyand final connection works. The ranking on theease of getting electricity is the simple average of Time required to complete each procedurethe percentile rankings on its component (calendar days)indicators: procedures, time and cost. To make the Is at least 1 calendar daydata comparable across economies, severalassumptions are used. Each procedure starts on a separate dayThe 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.
  • 35. Doing Business 2013 Mauritius 35GETTING ELECTRICITYWhere does the economy stand today?What does it take to obtain a new electricity procedures, takes 84 days and costs 295.1% of incomeconnection in Mauritius? According to data collected per capita (figure 4.1).by Doing Business, getting electricity there requires 4Figure 4.1 What it takes to obtain an electricity connection in MauritiusNote: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology ofthe getting electricity indicators, see the Doing Business website (http://www.doingbusiness.org). For details on the proceduresreflected here, see the summary at the end of this chapter.Source: Doing Business database.
  • 36. Doing Business 2013 Mauritius 36GETTING ELECTRICITYGlobally, Mauritius stands at 44 in the ranking of 185 regional average ranking provide another perspectiveeconomies on the ease of getting electricity (figure in assessing how easy it is for an entrepreneur in4.2). 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 electricitySource: Doing Business database.
  • 37. Doing Business 2013 Mauritius 37GETTING ELECTRICITYEven more helpful than rankings on the ease of getting performers on these indicators may provide usefulelectricity may be the indicators underlying those benchmarks.rankings (table 4.1). And regional and global bestTable 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 theeffects 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).Source: Doing Business database.
  • 38. Doing Business 2013 Mauritius 38GETTING ELECTRICITYObtaining an electricity connection is essential to safety in the connection process while keepingenable a business to conduct its most basic operations. connection costs reasonable, governments around theIn many economies the connection process is world have worked to consolidate requirements forcomplicated by the multiple laws and regulations obtaining an electricity connection. What reforms ininvolved—covering service quality, general safety, getting electricity has Doing Business recorded intechnical standards, procurement practices and Mauritius (table 4.2)?internal wiring installations. In an effort to ensureTable 4.2 How has Mauritius made getting electricity easier—or not?By Doing Business report yearDB year ReformDB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Source: Doing Business database.
  • 39. Doing Business 2013 Mauritius 39GETTING ELECTRICITYWhat are the details?The indicators reported here for Mauritius are based OBTAINING AN ELECTRICITY CONNECTIONon a set of specific procedures—the steps that anentrepreneur must complete to get a warehouseconnected to electricity by the local distribution City: Port Louisutility—identified by Doing Business. Data are collectedfrom the distribution utility, then completed and Name of Utility: Central Electricity Boardverified by electricity regulatory agencies and (C.E.B.)independent professionals such as electrical engineers, The procedures are those that apply to a warehouseelectrical contractors and construction companies. The and electricity connection matching the standardelectricity distribution utility surveyed is the one assumptions used by Doing Business in collecting theserving the area (or areas) in which warehouses are data (see the section in this chapter on what thelocated. If there is a choice of distribution utilities, the indicators cover). The procedures, along with theone 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 No. Procedure Cost to complete 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 customers 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 clients electrical contractor carries out the civil work for the transformer 3 The clients 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
  • 40. Doing Business 2013 Mauritius 40 Time to No. Procedure Cost to complete 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.* Takes place simultaneously with another procedure.Source: Doing Business database.
  • 41. Doing Business 2013 Mauritius 41REGISTERING PROPERTYEnsuring formal property rights is fundamental. WHAT THE REGISTERING PROPERTYEffective administration of land is part of that. If INDICATORS MEASUREformal property transfer is too costly orcomplicated, formal titles might go informalagain. And where property is informal or poorly Procedures to legally transfer title onadministered, 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 businessDoing Business records the full sequence of cityprocedures necessary for a business to purchaseproperty from another business and transfer the Postregistration (for example, filing title with the municipality)property title to the buyer’s name. The transactionis considered complete when it is opposable to Time required to complete each procedurethird parties and when the buyer can use the (calendar days)property, use it as collateral for a bank loan or Does not include time spent gatheringresell it. The ranking on the ease of registering informationproperty is the simple average of the percentilerankings on its component indicators: procedures, Each procedure starts on a separate daytime and cost. Procedure completed once final document is receivedTo make the data comparable across economies,several assumptions about the parties to the No prior contact with officialstransaction, the property and the procedures are Cost required to complete each procedureused. (% 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-storyThe 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.
  • 42. Doing Business 2013 Mauritius 42REGISTERING PROPERTYWhere does the economy stand today?What does it take to complete a property transfer in procedures, takes 15 days and costs 10.6% of theMauritius? According to data collected by Doing property value (figure 5.1).Business, registering property there requires 4Figure 5.1 What it takes to register property in MauritiusNote: Time shown in the figure above may not reflect simultaneity of procedures. For more information on the methodology ofthe registering property indicators, see the Doing Business website (http://www.doingbusiness.org). For details on theprocedures reflected here, see the summary at the end of this chapter.Source: Doing Business database.
  • 43. Doing Business 2013 Mauritius 43REGISTERING PROPERTYGlobally, Mauritius stands at 60 in the ranking of 185 regional average ranking provide other usefuleconomies on the ease of registering property (figure information for assessing how easy it is for an5.2). 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 propertySource: Doing Business database.
  • 44. Doing Business 2013 Mauritius 44REGISTERING PROPERTYWhat are the changes over time?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 fortoday, data over time show which aspects of the improvement is greatest.Table 5.1 The ease of registering property in Mauritius over timeBy Doing Business report year 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 10.6Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year. For more information on ―no practice‖ marks, seethe data notes.Source: Doing Business database.
  • 45. Doing Business 2013 Mauritius 45REGISTERING PROPERTYEqually helpful may be the benchmarks provided by (figure 5.3). These benchmarks help show what isthe economies that over time have had the best possible in making it easier to register property. Andperformance regionally or globally on the procedures, changes in regional averages can show wheretime 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)
  • 46. Doing Business 2013 Mauritius 46REGISTERING PROPERTYCost (% of property value)Source: Doing Business database.
  • 47. Doing Business 2013 Mauritius 47REGISTERING PROPERTYEconomies worldwide have been making it easier for have cut the time required substantially—enablingentrepreneurs to register and transfer property—such buyers to use or mortgage their property earlier. Whatas by computerizing land registries, introducing time property registration reforms has Doing Businesslimits 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?By Doing Business report yearDB year Reform Mauritius made registering property cheaper by reducing theDB2008 property registration fee. Mauritius abolished two procedures, the requirement toDB2009 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 aDB2010 statutory time limit of 15 days to obtain the final property title from the Land Registry.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business. Mauritius made property transfers faster by implementing anDB2013 electronic information management system at the Registrar- General’s Department.Note: For information on reforms in earlier years (back to DB2005), see the Doing Businessreports for these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 48. Doing Business 2013 Mauritius 48REGISTERING PROPERTYWhat are the details?The indicators reported here are based on a set of STANDARD PROPERTY TRANSFERspecific procedures—the steps that a buyer andseller must complete to transfer the property to thebuyer’s name—identified by Doing Business City: Port Louisthrough information collected from local property Property Value: MUR 12,839,419lawyers, notaries and property registries. Theseprocedures are those that apply to a transaction The procedures, along with the associated time andmatching the standard assumptions used by Doing cost, are summarized below.Business in collecting the data (see the section inthis chapter on what the indicators cover).Summary of procedures for registering property in Mauritius—and the time and cost Time to No. Procedure Cost to complete complete * Notary checks for encumbrances at the Registrar General The notary public consults the register of transcriptions and the list of deeds which are waiting for transcription in order to ascertain the title of the seller, the status of encumbrances, charges, liens, etc. The notary 2 days 1 pays an annual subscription to the Registrar General, which enables him (simultaneous with no cost to check the registers free of charge. He may however pass the cost to Procedure 2) the client as part of the fees charged for the whole transaction. (Note: The annual fee paid by the notary to the Registrar General is Rs12,000 since last budget). * A land surveyor prepares a new survey plan and a situation plan 4-8 days 2 (simultaneous with MUR 1,500 The seller must obtain a situation plan done by a Land Surveyor. Procedure 1) Notary’s fees according to the following cumulative schedule: A notary prepares and notarizes the deed of sale Value of property (in The notary prepares the sale deed. The seller is responsible for giving all MUR): Notary Fees the required documentation to the notary. The deed is signed by the 4 days • Up to MUR 3 parties and the notary. According to the law (Registration Duty act and Notaries Act), the notary 250,000: 2% has up to 7 days from date of deed to submit the deed at the Land (minimum MUR 100) Registry. • From 250,000 to 750,000: 1.5% • From 750,000 to 1,750,000: 1% • Excess over MUR 1,750,000: 0.5%
  • 49. Doing Business 2013 Mauritius 49 Time to No. Procedure Cost to complete complete The notary deposits the signed deed for registration and transcription The notary will deliver the signed deed + one copy of the deed to the Registrar-General for registration. The notary will pay the registration fee, the stamp duty and the transfer tax on behalf of the seller when applying for registration at the Registrar General’s office. As from January 2012 the transfer tax is as follows : • 5% of the property value if the seller has owned the property for more than 5 years • 10% of the property value if the seller has owned the property for less than 5 years 5% of property value • The stamp duty amounts to MUR 1,000 (transfer tax) + 5% of • The registration fee is equal to 5% of the property value property value 4 2-5 days (registration fee) + Once payment is made, the Conservator of Mortgages will enter the MUR 1,000 (stamp transaction in the book and will give a Transcription Number (TN) to the duty) notary. Once this TN number is available at the Registrar General, the property is opposable to third parties. The notary will then issue the "Copie authentique" to the buyer. There is a statutory time of 48 hours for the Registrar General to complete the transcription and give the Transcription Number (TN) to the notary. After the TN has been issued, the Land registry will verify and re-assess the transaction through internal processes. The Notary will subsequently pick up the registered deed and will keep the document for 40 years and then transmit it to the Chief Archivist, National Archives Department for safe keeping. If this time limit is not respected, there is a penalty of 50% to be paid.* Takes place simultaneously with another procedure.Source: Doing Business database.
  • 50. Doing Business 2013 Mauritius 50GETTING CREDITTwo types of frameworks can facilitate access to WHAT THE GETTING CREDIT INDICATORScredit and improve its allocation: credit information MEASUREsystems and the legal rights of borrowers andlenders in collateral and bankruptcy laws. Creditinformation systems enable lenders to view a Strength of legal rights index (0–10)potential borrower’s financial history (positive or Protection of rights of borrowers and lendersnegative)—valuable information to consider when through collateral lawsassessing risk. And they permit borrowers to Protection of secured creditors’ rights throughestablish a good credit history that will allow easier bankruptcy lawsaccess to credit. Sound collateral laws enablebusinesses to use their assets, especially movable Depth of credit information index (0–6)property, as security to generate capital—while Scope and accessibility of credit informationstrong creditors’ rights have been associated with distributed by public credit registries andhigher ratios of private sector credit to GDP. private credit bureausWhat do the indicators cover? Public credit registry coverage (% of adults)Doing Business assesses the sharing of credit Number of individuals and firms listed ininformation and the legal rights of borrowers and public credit registry as percentage of adultlenders with respect to secured transactions populationthrough 2 sets of indicators. The depth of credit Private credit bureau coverage (% of adults)information index measures rules and practices Number of individuals and firms listed inaffecting the coverage, scope and accessibility of largest private credit bureau as percentage ofcredit information available through a public credit adult populationregistry or a private credit bureau. The strength oflegal rights index measures whether certain featuresthat facilitate lending exist within the applicablecollateral and bankruptcy laws. Doing Business usescase scenarios to determine the scope of the  Has 100 employees.secured transactions system, involving a secured  Is 100% domestically owned, as is the lender.borrower and a secured lender and examining legal The ranking on the ease of getting credit is based onrestrictions on the use of movable collateral. These the percentile rankings on the sum of its componentscenarios assume that the borrower: indicators: the depth of credit information index and  Is a private, limited liability company. the strength of legal rights index.  Has its headquarters and only base of operations in the largest business city.
  • 51. Doing Business 2013 Mauritius 51GETTING CREDITWhere does the economy stand today?How well do the credit information system and Globally, Mauritius stands at 53 in the ranking of 185collateral and bankruptcy laws in Mauritius facilitate economies on the ease of getting credit (figure 6.1).access to credit? The economy has a score of 5 on the The rankings for comparator economies and thedepth of credit information index and a score of 6 on regional average ranking provide other usefulthe strength of legal rights index (see the summary of information for assessing how well regulations andscoring at the end of this chapter for details). Higher institutions in Mauritius support lending andscores indicate more credit information and stronger borrowing.legal rights for borrowers and lenders.Figure 6.1 How Mauritius and comparator economies rank on the ease of getting creditSource: Doing Business database.
  • 52. Doing Business 2013 Mauritius 52GETTING CREDITWhat are the changes over time?While the most recent Doing Business data reflect how institutions and regulations have been strengthened—well the credit information system and collateral and and where they have not (table 6.1). That can helpbankruptcy laws in Mauritius support lending and identify where the potential for improvement isborrowing today, data over time can help show where greatest.Table 6.1 The ease of getting credit in Mauritius over timeBy Doing Business report year Indicator DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 Rank .. .. .. .. .. .. .. 80 53 Strength of legal rights 6 6 6 6 6 6 6 6 6 index (0-10) Depth of credit 0 0 2 2 3 3 3 3 5 information index (0-6) Public registry n.a. 0.0 10.2 n.a. 20.6 36.8 49.8 49.8 56.3 coverage (% of adults) Private bureau n.a. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 coverage (% of adults)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year.Source: Doing Business database.
  • 53. Doing Business 2013 Mauritius 53GETTING CREDITOne way to put an economy’s score on the getting shows the number of economies with this score incredit indicators into context is to see where the 2012 as well as the regional average score. Figure 6.3economy stands in the distribution of scores across shows the same thing for the depth of crediteconomies. Figure 6.2 highlights the score on the information index.strength of legal rights index for Mauritius in 2012 andFigure 6.2 How strong are legal rights for borrowers Figure 6.3 How much credit information is shared—and lenders? and how widely?Number of economies with each score on strength of legal Number of economies with each score on depth of creditrights index (0–10), 2012 information index (0–6), 2012Note: Higher scores indicate that collateral and bankruptcy Note: Higher scores indicate the availability of more creditlaws are better designed to facilitate access to credit. information, from either a public credit registry or a privateSource: Doing Business database. credit bureau, to facilitate lending decisions. Regional averages for the depth of credit information index exclude economies with no public registry or private bureau. Source: Doing Business database.
  • 54. Doing Business 2013 Mauritius 54GETTING CREDITWhen economies strengthen the legal rights of lenders credit information, they can increase entrepreneurs’and borrowers under collateral and bankruptcy laws, access to credit. What credit reforms has Doingand increase the scope, coverage and accessibility of Business recorded in Mauritius (table 6.2)?Table 6.2 How has Mauritius made getting credit easier—or not?By Doing Business report yearDB year ReformDB2008 No reform as measured by Doing Business. The public credit registry in Mauritius eliminated the minimum loan requirement threshold to report credits in March 2007. TheDB2009 credit registry now captures information on all credits extended by the financial system. Mauritius has strengthened access to credit information by allowing the licensing of private credit information bureaus,DB2010 and by expanding the coverage of the bureau to all credit facilities.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business. Mauritius improved access to credit information by starting toDB2013 collect payment information from retailers and beginning to distribute both positive and negative information.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 55. Doing Business 2013 Mauritius 55GETTING CREDITWhat are the details?The getting credit indicators reported here for The data on the legal rights of borrowers and lendersMauritius are based on detailed information collected are gathered through a survey of financial lawyers andin that economy. The data on credit information verified through analysis of laws and regulations assharing are collected through a survey of a public well as public sources of information on collateral andcredit registry or private credit bureau (if one exists). bankruptcy laws. For the strength of legal rights index,To construct the depth of credit information index, a a score of 1 is assigned for each of 8 aspects related toscore of 1 is assigned for each of 6 features of the legal rights in collateral law and 2 aspects inpublic credit registry or private credit bureau (see bankruptcy law.summary of scoring below).Summary of scoring for the getting credit indicators in Mauritius Sub-Saharan OECD high income Indicator Mauritius Africa average average Strength of legal rights index (0-10) 6 6 7 Depth of credit information index (0-6) 5 3 5 Public registry coverage (% of adults) 56.3 7.7 31.5 Private bureau coverage (% of adults) 0.0 25.6 74.6Note: In cases where an economy’s regional classification is ―OECD high income,‖ regional averages above are only displayedonce. Regional averages for the depth of credit information index exclude economies with no public registry or private bureau.Regional averages for the public registry coverage exclude economies with no public registry. Regional averages for the privatebureau coverage exclude economies with no private bureau. Strength of legal rights index (0–10) Index score: 6 Can any business use movable assets as collateral while keeping possession of the assets; No and any financial institution accept such assets as collateral ? Does the law allow businesses to grant a non possessory security right in a single category Yes of movable assets, without requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of Yes its assets, without requiring a specific description of collateral? May a security right extend to future or after-acquired assets, and may it extend Yes automatically to the products, proceeds or replacements of the original assets ? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; and can the collateral agreement Yes include a maximum amount for which the assets are encumbered? Is a collateral registry in operation, that is unified geographically and by asset type, with an Yes electronic database indexed by debtors names?
  • 56. Doing Business 2013 Mauritius 56 Strength of legal rights index (0–10) Index score: 6 Are secured creditors paid first (i.e. before general tax claims and employee claims) when a No debtor defaults outside an insolvency procedure? Are secured creditors paid first (i.e. before general tax claims and employee claims) when a No business is liquidated? Are secured creditors either not subject to an automatic stay or moratorium on enforcement procedures when a debtor enters a court-supervised reorganization procedure, or the law No provides secured creditors with grounds for relief from an automatic stay or Does the law allow parties to agree in a collateral agreement that the lender may enforce its Yes security right out of court, at the time a security interest is created? Private credit Public credit Depth of credit information index (0–6) Index score: 5 bureau registry Are data on both firms and individuals distributed? No Yes 1 Are both positive and negative data distributed? No Yes 1 Does the registry distribute credit information from retailers, trade creditors or utility companies as well No Yes 1 as financial institutions? Are more than 2 years of historical credit information No No 0 distributed? Is data on all loans below 1% of income per capita No Yes 1 distributed? Is it guaranteed by law that borrowers can inspect No Yes 1 their data in the largest credit registry?Note: An economy receives a score of 1 if there is a "yes" to either private bureau or public registry.Coverage Private credit bureau Public credit registryNumber of firms 0 29,708Number of individuals 0 487,830Source: Doing Business database.
  • 57. Doing Business 2013 Mauritius 57PROTECTING INVESTORSInvestor protections matter for the ability of WHAT THE PROTECTING INVESTORScompanies to raise the capital they need to grow, INDICATORS MEASUREinnovate, diversify and compete. If the laws do notprovide such protections, investors may be reluctantto invest unless they become the controlling Extent of disclosure index (0–10)shareholders. Strong regulations clearly define Who can approve related-party transactionsrelated-party transactions, promote clear and efficient Disclosure requirements in case of related-disclosure requirements, require shareholder party transactionsparticipation in major decisions of the company andset clear standards of accountability for company Extent of director liability index (0–10)insiders. Ability of shareholders to hold interestedWhat do the indicators cover? parties and members of the approving body liable in case of related-party transactionsDoing Business measures the strength of minority Available legal remedies (damages, repaymentshareholder protections against directors’ use of of profits, fines, imprisonment and rescissioncorporate assets for personal gain—or self-dealing. of the transaction)The indicators distinguish 3 dimensions of investorprotections: transparency of related-party Ability of shareholders to sue directly ortransactions (extent of disclosure index), liability for derivativelyself-dealing (extent of director liability index) and Ease of shareholder suits index (0–10)shareholders’ ability to sue officers and directors for Access to internal corporate documentsmisconduct (ease of shareholder suits index). The (directly or through a government inspector)ranking on the strength of investor protection index isthe simple average of the percentile rankings on Documents and information available duringthese 3 indices. To make the data comparable across trialeconomies, a case study uses several assumptions Strength of investor protection index (0–10)about the business and the transaction. Simple average of the extent of disclosure,The business (Buyer): extent of director liability and ease of shareholder suits indices  Is a publicly traded corporation listed on the economy’s most important stock exchange (or at least a large private company with multiple the company purchase used trucks from another shareholders). company he owns.  Has a board of directors and a chief executive  The price is higher than the going price for used officer (CEO) who may legally act on behalf of trucks, but the transaction goes forward. Buyer where permitted, even if this is not specifically required by law.  All required approvals are obtained, and all required disclosures made, though the transactionThe transaction involves the following details: is prejudicial to Buyer.  Mr. James, a director and the majority  Shareholders sue the interested parties and the shareholder of the company, proposes that members of the board of directors.
  • 58. Doing Business 2013 Mauritius 58PROTECTING INVESTORSWhere does the economy stand today?How strong are investor protections in Mauritius? The index (figure 7.1). While the indicator does noteconomy has a score of 7.7 on the strength of investor measure all aspects related to the protection ofprotection index, with a higher score indicating minority investors, a higher ranking does indicate thatstronger protections (see the summary of scoring at an economy’s regulations offer stronger investorthe end of this chapter for details). protections against self-dealing in the areas measured.Globally, Mauritius stands at 13 in the ranking of 185economies on the strength of investor protectionFigure 7.1 How Mauritius and comparator economies rank on the strength of investor protection indexSource: Doing Business database.
  • 59. Doing Business 2013 Mauritius 59PROTECTING INVESTORSWhat are the changes over time?While the most recent Doing Business data reflect how ranking on the strength of investor protection indexwell regulations in Mauritius protect minority investors over time shows whether the economy is slippingtoday, data over time show whether the protections behind other economies in investor protections—orhave been strengthened (table 7.1). And the global surpassing them.Table 7.1 The strength of investor protections in Mauritius over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 Rank .. .. .. .. .. .. 13 13 Extent of disclosure 6 6 6 6 6 6 6 6 index (0-10) Extent of director liability index (0- 8 8 8 8 8 8 8 8 10) Ease of shareholder 9 9 9 9 9 9 9 9 suits index (0-10) Strength of investor protection 7.7 7.7 7.7 7.7 7.7 7.7 7.7 7.7 index (0-10)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year.Source: Doing Business database.
  • 60. Doing Business 2013 Mauritius 60PROTECTING INVESTORSOne way to put an economy’s scores on the protecting shows the number of economies with this score ininvestors indicators into context is to see where the 2012 as well as the regional average score. Figure 7.3economy stands in the distribution of scores across shows the same thing for the extent of director liabilityeconomies. Figure 7.2 highlights the score on the index, and figure 7.4 for the ease of shareholder suitsextent of disclosure index for Mauritius in 2012 and index.Figure 7.2 How strong are disclosure requirements? Figure 7.3 How strong is the liability regime for directors? Number of economies with each score on extent ofNumber of economies with each score on extent of director liability index (0–10), 2012disclosure index (0–10), 2012 Note: Higher scores indicate greater liability of directors.Note: Higher scores indicate greater disclosure. No economy receives a score of 10 on the extent ofSource: Doing Business database. director liability index. Source: Doing Business database.
  • 61. Doing Business 2013 Mauritius 61PROTECTING INVESTORSFigure 7.4 How easy is access to internal corporate documents?Number of economies with each score on ease ofshareholder suits index (0–10), 2012Note: Higher scores indicate greater powers of shareholdersto challenge the transaction.Source: Doing Business database.
  • 62. Doing Business 2013 Mauritius 62PROTECTING INVESTORSThe scores recorded over time for Mauritius on the changes over time in the regional average score onstrength of investor protection index may also be this index.revealing (figure 7.5). Equally interesting may be theFigure 7.5 Have investor protections become stronger over time?Strength of investor protection index (0–10)Note: The higher the score, the stronger the investor protections.Source: Doing Business database.
  • 63. Doing Business 2013 Mauritius 63PROTECTING INVESTORSEconomies with the strongest protections of minority time. So reforms to strengthen investor protectionsinvestors from self-dealing require more disclosure may move ahead on different fronts—such as throughand define clear duties for directors. They also have new or amended company laws or civil procedurewell-functioning courts and up-to-date procedural rules. What investor protection reforms has Doingrules that give minority investors the means to prove Business recorded in Mauritius (table 7.2)?their case and obtain a judgment within a reasonableTable 7.2 How has Mauritius strengthened investor protections—or not?By Doing Business report yearDB year ReformDB2008 No reform as measured by Doing Business.DB2009 No reform as measured by Doing Business.DB2010 No reform as measured by Doing Business.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reports forthese years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 64. Doing Business 2013 Mauritius 64PROTECTING INVESTORSWhat are the details?The protecting investors indicators reported here for shareholder suits indices, a score is assigned for eachMauritius are based on detailed information collected of a range of conditions relating to disclosure, directorthrough a survey of corporate and securities lawyers as liability and shareholder suits in a standard case studywell as on securities regulations, company laws and transaction (see the notes at the end of this chapter).court rules of evidence. To construct the extent of The summary below shows the details underlying thedisclosure, extent of director liability and ease of scores for Mauritius.Summary of scoring for the protecting investors indicators in Mauritius Sub-Saharan OECD high incomeIndicator Mauritius Africa average averageExtent of disclosure index (0-10) 6 5 6Extent of director liability index (0-10) 8 4 5Ease of shareholder suits index (0-10) 9 5 7Strength of investor protection index (0-10) 7.7 4.5 6.1Note: In cases where an economy’s regional classification is ―OECD high income,‖ regional averages above are only displayedonce. Score Score description Extent of disclosure index (0-10) 6 What corporate body provides legally sufficient Board of directors and Mr. James is 2 approval for the transaction? not allowed to vote Whether disclosure of the conflict of interest by Mr. Existence of a conflict without any 1 James to the board of directors is required? specifics Whether immediate disclosure of the transaction to 0 No disclosure obligation the public and/or shareholders is required? Whether disclosure of the transaction in published Disclosure on the transaction and Mr. 2 periodic filings (annual reports) is required? James conflict of interest Whether an external body must review the terms of 1 Yes the transaction before it takes place? Extent of director liability index (0-10) 8 Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller transaction 1 Yes causes to the company?
  • 65. Doing Business 2013 Mauritius 65 Score Score description Whether shareholders can hold Mr. James liable for Liable for unfair/oppressive the damage that the Buyer-Seller transaction causes 2 transaction or prejudicial to minority to the company? shareholders Whether shareholders can hold members of the approving body liable for the damage that the Buyer- 1 Liable for negligence Seller transaction causes to the company? Whether a court can void the transaction upon a Possible when the transaction is unfair 2 successful claim by a shareholder plaintiff? or entails a conflict of interest Whether Mr. James pays damages for the harm caused to the company upon a successful claim by 1 Yes the shareholder plaintiff? Whether Mr. James repays profits made from the transaction upon a successful claim by the 1 Yes shareholder plaintiff? Whether fines and imprisonment can be applied 0 No against Mr. James? Ease of shareholder suits index (0-10) 9 Whether shareholders owning 10% or less of Buyers shares can inspect transaction documents before 0 No filing suit? Whether shareholders owning 10% or less of Buyers shares can request an inspector to investigate the 1 Yes transaction? Whether the plaintiff can obtain any documents from Any information that may lead to the 4 the defendant and witnesses during trial? discovery of relevant information Whether the plaintiff can request categories of documents from the defendant without identifying 1 Yes specific ones? Whether the plaintiff can directly question the 2 Yes, without approval from the judge defendant and witnesses during trial? Whether the level of proof required for civil suits is 1 Yes lower than that of criminal cases? Strength of investor protection index (0-10) 7.7Source: Doing Business database.
  • 66. Doing Business 2013 Mauritius 66PAYING TAXESTaxes are essential. They fund the public amenities, WHAT THE PAYING TAXES INDICATORSinfrastructure and services that are crucial for a MEASUREproperly functioning economy. But the level of taxrates needs to be carefully chosen—and needless Tax payments for a manufacturing companycomplexity in tax rules avoided. According to in 2011 (number per year adjusted forDoing Business data, in economies where it is more electronic or joint filing and payment)difficult and costly to pay taxes, larger shares ofeconomic activity end up in the informal sector— Total number of taxes and contributions paid,where businesses pay no taxes at all. including consumption taxes (value added tax, sales tax or goods and service tax)What do the indicators cover? Method and frequency of filing and paymentUsing a case scenario, Doing Business measures Time required to comply with 3 major taxesthe taxes and mandatory contributions that a (hours per year)medium-size company must pay in a given year aswell as the administrative burden of paying taxes Collecting information and computing the taxand contributions. This case scenario uses a set of payablefinancial statements and assumptions about Completing tax return forms, filing withtransactions made over the year. Information is proper agenciesalso compiled on the frequency of filing and Arranging payment or withholdingpayments as well as time taken to comply with taxlaws. The ranking on the ease of paying taxes is Preparing separate tax accounting books, ifthe simple average of the percentile rankings on requiredits component indicators: number of annual Total tax rate (% of profit before all taxes)payments, time and total tax rate, with a threshold 1 Profit or corporate income taxbeing applied to the total tax rate. To make thedata comparable across economies, several Social contributions and labor taxes paid byassumptions about the business and the taxes and the employercontributions are used. Property and property transfer taxes  TaxpayerCo is a medium-size business that Dividend, capital gains and financial started operations on January 1, 2010. transactions taxes  The business starts from the same financial Waste collection, vehicle, road and other taxes position in each economy. All the taxes  Taxes and mandatory contributions include and mandatory contributions paid during corporate income tax, turnover tax and all the second year of operation are recorded. labor taxes and contributions paid by the  Taxes and mandatory contributions are company. measured at all levels of government.  A range of standard deductions and exemptions are also recorded.1 The threshold is defined as the highest total tax rate among the top 15% of economies in the ranking on the total tax rate. It is calculated andadjusted on a yearly basis. The threshold is not based on any economic theory of an ―optimal tax rate‖ that minimizes distortions or maximizesefficiency in the tax system of an economy overall. Instead, it is mainly empirical in nature, set at the lower end of the distribution of tax rateslevied on medium-size enterprises in the manufacturing sector as observed through the paying taxes indicators. This reduces the bias in theindicators toward economies that do not need to levy significant taxes on companies like the Doing Business standardized case study companybecause they raise public revenue in other ways—for example, through taxes on foreign companies, through taxes on sectors other thanmanufacturing or from natural resources (all of which are outside the scope of the methodology). This year’s threshold is 25.7%.
  • 67. Doing Business 2013 Mauritius 67PAYING TAXESWhere does the economy stand today?What is the administrative burden of complying with Globally, Mauritius stands at 12 in the ranking of 185taxes in Mauritius—and how much do firms pay in economies on the ease of paying taxes (figure 8.1). Thetaxes? On average, firms make 7 tax payments a year, rankings for comparator economies and the regionalspend 161 hours a year filing, preparing and paying average ranking provide other useful information fortaxes and pay total taxes amounting to 28.5% of profit assessing the tax compliance burden for businesses in(see the summary at the end of this chapter for Mauritius.details).Figure 8.1 How Mauritius and comparator economies rank on the ease of paying taxesNote: DB2013 rankings reflect changes to the methodology. For all economies with a total tax rate below the threshold of25.7% applied in DB2013, the total tax rate is set at 25.7% for the purpose of calculating the ranking on the ease of payingtaxes.Source: Doing Business database.
  • 68. Doing Business 2013 Mauritius 68PAYING TAXESWhat are the changes over time?While the most recent Doing Business data reflect how the process have changed — and which have noteasy (or difficult) it is to comply with tax rules in (table 8.1). That can help identify where the potentialMauritius today, data over time show which aspects of for easing tax compliance is greatest.Table 8.1 The ease of paying taxes in Mauritius over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 Rank .. .. .. .. .. .. 13 12 Payments (number per 7 7 7 7 7 7 7 7 year) Time (hours per year) 161 161 161 161 161 161 161 161 Total tax rate (% profit) 26.2 26.0 24.2 25.8 26.0 27.2 28.5 28.5Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year. DB2013 rankings reflect changes to themethodology. For all economies with a total tax rate below the threshold of 25.7% applied in DB2013, the total tax rate is set at25.7% for the purpose of calculating the ranking on the ease of paying taxes.Source: Doing Business database.
  • 69. Doing Business 2013 Mauritius 69PAYING TAXESEqually helpful may be the benchmarks provided by possible in easing the administrative burden of taxthe economies that over time have had the best compliance. And changes in regional averages canperformance regionally or globally on the number of show where Mauritius is keeping up—and where it ispayments or the time required to prepare and file falling behind.taxes (figure 8.2). These benchmarks help show what isFigure 8.2 Has paying taxes become easier over time?Payments (number per year)Time (hours per year)
  • 70. Doing Business 2013 Mauritius 70PAYING TAXESTotal tax rate (% of profit)Source: Doing Business database.
  • 71. Doing Business 2013 Mauritius 71PAYING TAXESEconomies around the world have made paying taxes concrete results. Some economies simplifying taxfaster and easier for businesses—such as by payment and reducing rates have seen tax revenueconsolidating filings, reducing the frequency of rise. What tax reforms has Doing Business recorded inpayments or offering electronic filing and payment. Mauritius (table 8.2)?Many have lowered tax rates. Changes have broughtTable 8.2 How has Mauritius made paying taxes easier—or not?By Doing Business report yearDB year Reform Mauritius reduced the tax burden for companies by reducingDB2008 CIT.DB2009 No reform as measured by Doing Business.DB2010 No reform as measured by Doing Business.DB2011 Mauritius introduced a new corporate social responsibility tax.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 72. Doing Business 2013 Mauritius 72PAYING TAXESWhat are the details?The indicators reported here for Mauritius are LOCATION OF STANDARDIZED COMPANYbased on a standard set of taxes and contributionsthat would be paid by the case study companyused by Doing Business in collecting the data (see City: Port Louisthe section in this chapter on what the indicatorscover). Tax practitioners are asked to reviewstandard financial statements as well as a standardlist of transactions that the company completed The taxes and contributions paid are listed in theduring the year. Respondents are asked how much summary below, along with the associated number ofin taxes and mandatory contributions the business payments, time and tax rate.must pay and what the process is for doing so.Summary of tax rates and administrative burden in Mauritius Sub-Saharan OECD high incomeIndicator Mauritius Africa average averagePayments (number per year) 7 39 12Time (hours per year) 161 319 176Profit tax (%) 11.6 19.0 15.2Labor tax and contributions (%) 9.6 13.3 23.8Other taxes (%) 7.3 25.5 3.7Total tax rate (% profit) 28.5 57.8 42.7Note: In cases where an economy’s regional classification is ―OECD high income,‖ regional averages above are only displayedonce. Total tax Tax or mandatory Payments Notes on Time Statutory Notes on Tax base rate (% of contribution (number) payments (hours) tax rate total tax rate profit) taxable Corporate income tax 1 online filing 36 15% 10.4 profit Employer paid - Contributions gross to National Pension Fund 1 online filing 61 6% 6.1 salaries (NPF) Property transfer tax 1 0 10% sale price 6.1
  • 73. Doing Business 2013 Mauritius 73 Total tax Tax or mandatory Payments Notes on Time Statutory Notes on Tax base rate (% of contribution (number) payments (hours) tax rate total tax rate profit) Employer paid - Contributions gross to National Savings Fund 0 online filing 0 3% 2.4 salaries (NSF) Council tax 1 0 MUR 100,000 fixed fee 1.2 Corporate social responsibility chargeable 0 paid jointly 0 2% 1.2 tax income gross Employer paid - Training tax 0 online filing 0 1% 1.1 salaries Road tax 1 0 various rates 0.1 Value added tax (VAT) 1 online filing 64 15% value added 0 not included number of MUR 15 per Stamp duty 1 0 pages of 0 small amount page contract Totals 7 161 28.5Source: Doing Business database.
  • 74. Doing Business 2013 Mauritius 74TRADING ACROSS BORDERSIn today’s globalized world, making trade between WHAT THE TRADING ACROSS BORDERSeconomies easier is increasingly important for INDICATORS MEASUREbusiness. Excessive document requirements,burdensome customs procedures, inefficient portoperations and inadequate infrastructure all lead to Documents required to export and importextra costs and delays for exporters and importers, (number)stifling trade potential. Research shows that Bank documentsexporters in developing countries gain more from Customs clearance documentsa 10% drop in their trading costs than from asimilar reduction in the tariffs applied to their Port and terminal handling documentsproducts in global markets. Transport documentsWhat do the indicators cover? Time required to export and import (days)Doing Business measures the time and cost Obtaining, filling out and submitting all the(excluding tariffs and the time and cost for sea documentstransport) associated with exporting and importing Inland transport and handlinga standard shipment of goods by sea transport,and the number of documents necessary to Customs clearance and inspectionscomplete the transaction. The indicators cover Port and terminal handlingprocedural requirements such as documentation Does not include sea transport timerequirements and procedures at customs and otherregulatory agencies as well as at the port. They also Cost required to export and import (US$ percover trade logistics, including the time and cost of container)inland transport to the largest business city. The All documentationranking on the ease of trading across borders isthe simple average of the percentile rankings on its Inland transport and handlingcomponent indicators: documents, time and cost Customs clearance and inspectionsto export and import. Port and terminal handlingTo make the data comparable across economies, Official costs only, no bribesDoing Business uses several assumptions about thebusiness and the traded goods.The business:  Is of medium size and employs 60 people.  Do not require refrigeration or any other special environment.  Is located in the periurban area of the economy’s largest business city.  Do not require any special phytosanitary or environmental safety standards other than  Is a private, limited liability company, accepted international standards. domestically owned, formally registered and operating under commercial laws and  Are one of the economy’s leading export or regulations of the economy. import products.The traded goods:  Are transported in a dry-cargo, 20-foot full container load.  Are not hazardous nor do they include military items.
  • 75. Doing Business 2013 Mauritius 75TRADING ACROSS BORDERSWhere does the economy stand today?What does it take to export or import in Mauritius? Globally, Mauritius stands at 15 in the ranking of 185According to data collected by Doing Business, economies on the ease of trading across bordersexporting a standard container of goods requires 5 (figure 9.1). The rankings for comparator economiesdocuments, takes 10 days and costs $660. Importing and the regional average ranking provide other usefulthe same container of goods requires 6 documents, information for assessing how easy it is for a businesstakes 10 days and costs $695 (see the summary of in Mauritius to export and import goods.procedures and documents at the end of this chapterfor details).Figure 9.1 How Mauritius and comparator economies rank on the ease of trading across bordersSource: Doing Business database.
  • 76. Doing Business 2013 Mauritius 76TRADING ACROSS BORDERSWhat are the changes over time?While the most recent Doing Business data reflect how process have changed—and which have not (table 9.1).easy (or difficult) it is to export or import in Mauritius That can help identify where the potential fortoday, data over time show which aspects of the improvement is greatest.Table 9.1 The ease of trading across borders in Mauritius over timeBy Doing Business report year Indicator DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 Rank .. .. .. .. .. .. 16 15 Documents to export 5 5 5 5 5 5 5 5 (number) Time to export (days) 13 13 14 14 11 10 10 10 Cost to export (US$ per 683 683 728 725 737 737 737 660 container) Documents to import 7 7 6 6 6 6 6 6 (number) Time to import (days) 13 13 13 13 11 10 10 10 Cost to import (US$ per 683 683 673 677 689 689 689 695 container)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections andthe addition of 2 economies (Barbados and Malta) to the sample this year.Source: Doing Business database.
  • 77. Doing Business 2013 Mauritius 77TRADING ACROSS BORDERSEqually helpful may be the benchmarks provided by These benchmarks help show what is possible inthe economies that over time have had the best making it easier to trade across borders. And changesperformance regionally or globally on the documents, in regional averages can show where Mauritius istime or cost required to export or import (figure 9.2). keeping up—and where it is falling behind.Figure 9.2 Has trading across borders become easier over time?Documents to export (number)Time to export (days)
  • 78. Doing Business 2013 Mauritius 78TRADING ACROSS BORDERSCost to export (US$ per container)Documents to import (number)
  • 79. Doing Business 2013 Mauritius 79TRADING ACROSS BORDERSTime to import (days)Cost to import (US$ per container)Source: Doing Business database.
  • 80. Doing Business 2013 Mauritius 80TRADING ACROSS BORDERSIn economies around the world, trading across borders systems. These changes help improve the tradingas measured by Doing Business has become faster and environment and boost firms’ internationaleasier over the years. Governments have introduced competitiveness. What trade reforms has Doingtools to facilitate trade—including single windows, Business recorded in Mauritius (table 9.2)?risk-based inspections and electronic data interchangeTable 9.2 How has Mauritius made trading across borders easier—or not?By Doing Business report yearDB year Reform Mauritius eased trading across borders by implementing aDB2008 new computerized risk management system for inspections.DB2009 No reform as measured by Doing Business. Mauritius introduced the electronic submission of the customsDB2010 declaration and bill of lading without requirement of physical copies, thus speeding up trade process.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2006), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 81. Doing Business 2013 Mauritius 81TRADING ACROSS BORDERSWhat are the details?The indicators reported here for Mauritius are LOCATION OF STANDARDIZED COMPANYbased on a set of specific procedural requirementsfor trading a standard shipment of goods by oceantransport (see the section in this chapter on what City: Port Louisthe indicators cover). Information on theprocedures as well as the required documents andthe time and cost to complete each procedure is The procedural requirements, and the associated timecollected from local freight forwarders, shipping and cost, for exporting and importing a standardlines, customs brokers, port officials and banks. shipment of goods are listed in the summary below, along with the required documents.Summary of procedures and documents for trading across borders in Mauritius Sub-Saharan OECD high incomeIndicator Mauritius Africa average averageDocuments to export (number) 5 8 4Time to export (days) 10 31 10Cost to export (US$ per container) 660 1,990 1,028Documents to import (number) 6 9 5Time to import (days) 10 37 10Cost to import (US$ per container) 695 2,567 1,080Note: In cases where an economy’s regional classification is ―OECD high income,‖ regional averages above are only displayedonce.Procedures to export Time (days) Cost (US$)Documents preparation 5 285Customs clearance and technical control 1 75Ports and terminal handling 2 175Inland transportation and handling 2 125Totals 10 660Procedures to import Time (days) Cost (US$)Documents preparation 5 295Customs clearance and technical control 2 100
  • 82. Doing Business 2013 Mauritius 82Procedures to import Time (days) Cost (US$)Ports and terminal handling 2 175Inland transportation and handling 1 125Totals 10 695 Documents to export Documents to import Bill of lading Bill of lading Certificate of origin Cargo release order Commercial invoice Certificate of origin Customs export declaration Commercial invoice Packing list Customs import declarationSource: Doing Business database. Packing list
  • 83. Doing Business 2013 Mauritius 83ENFORCING CONTRACTSWell-functioning courts help businesses expand WHAT THE ENFORCING CONTRACTStheir network and markets. Without effective INDICATORS MEASUREcontract enforcement, people might well dobusiness only with family, friends and others withwhom they have established relationships. Where Procedures to enforce a contract throughcontract enforcement is efficient, firms are more the courts (number)likely to engage with new borrowers or customers, Any interaction between the parties in aand they have greater access to credit. commercial dispute, or between them and the judge or court officerWhat do the indicators cover? Steps to file and serve the caseDoing Business measures the efficiency of thejudicial system in resolving a commercial dispute Steps for trial and judgmentbefore local courts. Following the step-by-step Steps to enforce the judgmentevolution of a standardized case study, it collects Time required to complete proceduresdata relating to the time, cost and procedural (calendar days)complexity of resolving a commercial lawsuit. Theranking on the ease of enforcing contracts is the Time to file and serve the casesimple average of the percentile rankings on its Time for trial and obtaining judgmentcomponent indicators: procedures, time and cost. Time to enforce the judgmentThe dispute in the case study involves the breachof a sales contract between 2 domestic businesses. Cost required to complete procedures (% ofThe case study assumes that the court hears an claim)expert on the quality of the goods in dispute. This No bribesdistinguishes the case from simple debt Average attorney feesenforcement. To make the data comparable acrosseconomies, Doing Business uses several Court costsassumptions about the case: Enforcement costs  The seller and buyer are located in the economy’s largest business city.  The buyer orders custom-made goods,  The dispute on the quality of the goods then fails to pay. requires an expert opinion.  The seller sues the buyer before a  The judge decides in favor of the seller; there competent court. is no appeal.  The value of the claim is 200% of income  The seller enforces the judgment through a per capita. public sale of the buyer’s movable assets.  The seller requests a pretrial attachment to secure the claim.
  • 84. Doing Business 2013 Mauritius 84ENFORCING CONTRACTSWhere does the economy stand today?How efficient is the process of resolving a commercial Globally, Mauritius stands at 58 in the ranking of 185dispute through the courts in Mauritius? According to economies on the ease of enforcing contracts (figuredata collected by Doing Business, enforcing a contract 10.1). The rankings for comparator economies and thetakes 645 days, costs 16.3% of the value of the claim regional average ranking provide other usefuland requires 36 procedures (see the summary at the benchmarks for assessing the efficiency of contractend of this chapter for details). enforcement in Mauritius.Figure 10.1 How Mauritius and comparator economies rank on the ease of enforcing contractsSource: Doing Business database.
  • 85. Doing Business 2013 Mauritius 85ENFORCING CONTRACTSWhat are the changes over time?While the most recent Doing Business data reflect how identify which areas have changed and where theeasy (or difficult) it is to enforce a contract in Mauritius potential for improvement is greatest (table 10.1).today, data on the underlying indicators over time helpTable 10.1 The ease of enforcing contracts in Mauritius over timeBy Doing Business report year Indicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013Rank .. .. .. .. .. .. .. .. 56 58Time (days) n.a. 750 750 750 750 750 720 645 645 645Cost (% of claim) n.a. 16.3 16.3 16.3 16.3 16.3 16.3 16.3 16.3 16.3Procedures (number) n.a. 37 37 37 37 37 36 36 36 36Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not last year’spublished rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and the addition of2 economies (Barbados and Malta) to the sample this year.Source: Doing Business database.
  • 86. Doing Business 2013 Mauritius 86ENFORCING CONTRACTSEqually helpful may be the benchmarks provided by help show what is possible in improving the efficiencythe economies that over time have had the best of contract enforcement. And changes in regionalperformance regionally or globally on the number of averages can show where Mauritius is keeping up—steps, time or cost required to enforce a contract and where it is falling behind.through the courts (figure 10.2). These benchmarksFigure 10.2 Has enforcing contracts become easier over time?Time (days)Cost (% of claim)
  • 87. Doing Business 2013 Mauritius 87ENFORCING CONTRACTSProcedures (number)Source: Doing Business database.
  • 88. Doing Business 2013 Mauritius 88ENFORCING CONTRACTSEconomies in all regions have improved contract often work on reducing backlogs by introducingenforcement in recent years. A judiciary can be periodic reviews to clear inactive cases from the docketimproved in different ways. Higher-income economies and by making procedures faster. What reformstend to look for ways to enhance efficiency by making it easier (or more difficult) to enforce contractsintroducing new technology. Lower-income economies has Doing Business recorded in Mauritius (table 10.2)?Table 10.2 How has Mauritius made enforcing contracts easier—or not?By Doing Business report yearDB year ReformDB2008 No reform as measured by Doing Business.DB2009 No reform as measured by Doing Business. Mauritius set up a specialized commercial division of itsDB2010 Supreme Court, thus improving contract enforcement. Mauritius speeded up the resolution of commercial disputesDB2011 by recruiting more judges and adding more courtrooms.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 89. Doing Business 2013 Mauritius 89ENFORCING CONTRACTSWhat are the details?The indicators reported here for Mauritius are COMPETENT COURTbased on a set of specific procedural stepsrequired to resolve a standardized commercialdispute through the courts (see the section in this City: Port Louischapter on what the indicators cover). Theseprocedures, and the time and cost of completing The procedures for resolving a commercial lawsuit, andthem, are identified through study of the codes of the associated time and cost, are listed in the summarycivil procedure and other court regulations, as well below.as through surveys completed by local litigationlawyers (and, in a quarter of the economiescovered by Doing Business, by judges as well).Summary of procedures for enforcing a contract in Mauritius—and the time and cost Sub-Saharan OECD high income Indicator Mauritius Africa average average Time (days) 645 649 510 Filing and service 25 Trial and judgment 380 Enforcement of judgment 240 Cost (% of claim) 16.3 50.1 20.1 Attorney cost (% of claim) 14.0 Court cost (% of claim) 1.7 Enforcement Cost (% of claim) 0.6 Procedures (number) 36 39 31Note: In cases where an economy’s regional classification is ―OECD high income,‖ regional averages above are only displayedonce.
  • 90. Doing Business 2013 Mauritius 90ENFORCING CONTRACTS No. Procedure Filing and service: 1 Plaintiff requests payment: Plaintiff or his lawyer asks Defendant orally or in writing to comply with the contract. 2 Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to represent him before the court. Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in * writing. * Plaintiff’s payment of court fees: Plaintiff pays court duties, stamp duties, or any other type of court fee. Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a 3 reference number to the lawsuit or court case. Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, * automated system, ruling of an administrative judge, court officer, etc. Delivery of summons and complaint to person authorized to perform service of process on Defendant: The 4 judge or a court officer delivers the summons to a summoning office, officer, or authorized person (including Plaintiff), for service of process on Defendant. Mailing of summons and complaint: Court or process server, including (private) bailiff, mails summons and * complaint to Defendant. First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is 5 successful in the majority of cases. * Proof of service: Plaintiff submits proof of service to court. Application for pre-judgment attachment: Plaintiff submits an application in writing for the attachment of * Defendants property prior to judgment. (see assumption 5) Decision on pre-judgment attachment: The judge decides whether to grant Plaintiff’s request for pre-judgment * attachment of Defendant’s property and notifies Plaintiff and Defendant of the decision. This step may include requesting that Plaintiff submit guarantees or bonds to secure Defendant Guarantees securing attached property: Plaintiff typically submits guarantees or bonds to secure Defendant 6 against possible damages to attached property. (see assumption 5) Pre-judgment attachment.: Defendants property is attached prior to judgment. Attachment is either physical or 7 achieved by registering, marking, debiting or separating assets. (see assumption 5) Custody of assets attached prior to judgment: Defendants attached assets are put under enforcement officers or 8 (private) bailiffs care. (see assumption 5) Hearing on pre-judgment attachment: A hearing takes place to resolve the question of whether Defendant’s 9 assets can be attached prior to judgment. This process may include the submission of separate summons and petitions. (see assumption 5) Trial and judgment:
  • 91. Doing Business 2013 Mauritius 91No. Procedure Judge’s resolution on preliminary exemptions: Judge decides on preliminary exemptions separately from the10 merits of the case. Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his11 defense or answer on the merits of the case. Defendants written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori Deadline for Plaintiff to answer Defendants defense or answer: Judge sets the deadline by which Plaintiff will be12 allowed to answer Defendants defense or answer. Filing of pleadings: Plaintiff and Defendant file written pleadings and submissions with the court and transmit13 copies of the written pleadings or submissions to one another. The pleadings may or may not include witness statements or expert (witness) statements. Adjournments: Court procedure is delayed because one or both parties request and obtain an adjournment to14 submit written pleadings. Court appointment of independent expert: Judge appoints, either at the parties request or at his own initiative, * an independent expert to decide whether the quality of the goods Plaintiff delivered to Defendant is adequate. (see assumption 6-b of this case) Delivery of expert report by court-appointed expert: The independent expert appointed by the court delivers his * or her expert report to the court. (see assumption 6-b of this case) * Setting of date(s) for oral hearing or trial: The judge sets the date(s) for the oral hearing or trial. * List of (expert) witnesses: The parties file a list of (expert) witnesses with the court. (see assumption 6-a) Summoning of (expert) witnesses: The court summons (expert) witnesses to appear in court for the oral hearing15 or trial. (see assumption 6-a) Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment to16 prepare for the oral hearing or trial. Oral hearing (prevalent in civil law): The parties argue the merits of the case at an oral hearing before the judge.17 Witnesses and a court-appointed independent expert may be heard and questioned at the oral hearing. Trial (prevalent in common law): The parties argue the merits of the case at (an) oral session(s) before the court.18 Witnesses and expert witnesses are questioned and cross-examined during trial. Adjournments: Court proceedings are delayed because one or both parties request and obtain an adjournment19 during the oral hearing or trial, resulting in an additional or later trial or hearing date. * Request for closing of the evidence period: Plaintiff or Defendant requests the judge to close the evidence period.20 Closing of the evidence period: The court makes the formal decision to close the evidence period. Order for submission of final arguments: The judge sets the deadline for the submission of final factual and legal21 arguments. Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation * or by a written submission.22 Judgment date: The judge sets a date for delivery of the judgment.
  • 92. Doing Business 2013 Mauritius 92 No. Procedure 23 Notification of judgment in court: The parties are notified of the judgment at a court hearing. 24 Writing of judgment: The judge produces a written copy of the judgment. Court notification of availability of the written judgment: The court notifies the parties that the written 25 judgment is available at the courthouse. Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. 26 Defendant decides not to appeal. Judgment becomes final the day the appeal period ends. Reimbursement by Defendant of Plaintiffs court fees: The judgment obliges Defendant to reimburse Plaintiff for 27 the court fees Plaintiff has advanced, because Defendant has lost the case. Enforcement of judgment: Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to enforce the judgment or continues to be represented by a * lawyer during the enforcement of judgment phase. Plaintiffs approaching of court enforcement officer or (private) bailiff to enforce the judgment: To enforce 28 the judgment, Plaintiff approaches a court enforcement officer such as a court bailiff or sheriff, or a private bailiff. Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order (seal on * judgment). 29 Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment. Delivery of enforcement order: The courts enforcement order is delivered to a court enforcement officer or a * (private) bailiff. Request to Defendant to comply voluntarily with judgment: Plaintiff, a court enforcement officer or a (private) 30 bailiff requests Defendant to voluntarily comply with the judgment, giving Defendant a last chance to comply voluntarily with the judgment. Identification of Defendants assets for attachment by court official or Defendant: Judge, a court enforcement 31 officer, a (private) bailiff or the Defendant himself identifies Defendants movable assets for attachment. 32 Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets). Report on execution of attachment: A court enforcement officer or private process server delivers a report on the 33 attachment of Defendants movable goods to the judge. Enforcement disputes before court: The enforcement of the judgment is delayed because Defendant opposes 34 aspects of the enforcement process before the judge. 35 Sale through public auction: The Defendant’s movable property is sold at public auction. Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiffs enforcement fees which Plaintiff 36 had advanced previously. 37 Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.* Takes place simultaneously with another procedure.Source: Doing Business database.
  • 93. Doing Business 2013 Mauritius 93RESOLVING INSOLVENCYA robust bankruptcy system functions as a filter, WHAT THE RESOLVING INSOLVENCYensuring the survival of economically efficientcompanies and reallocating the resources of INDICATORS MEASUREinefficient ones. Fast and cheap insolvencyproceedings result in the speedy return of Time required to recover debt (years)businesses to normal operation and increase Measured in calendar yearsreturns to creditors. By improving the expectationsof creditors and debtors about the outcome of Appeals and requests for extension areinsolvency proceedings, well-functioning includedinsolvency systems can facilitate access to finance, Cost required to recover debt (% of debtor’ssave more viable businesses and thereby improve estate)growth and sustainability in the economy overall. Measured as percentage of estate valueWhat do the indicators cover? Court feesDoing Business studies the time, cost and outcome Fees of insolvency administratorsof insolvency proceedings involving domesticentities. It does not measure insolvency Lawyers’ feesproceedings of individuals and financial Assessors’ and auctioneers’ feesinstitutions. The data are derived from survey Other related feesresponses by local insolvency practitioners andverified through a study of laws and regulations as Recovery rate for creditors (cents on thewell as public information on bankruptcy systems. dollar)The ranking on the ease of resolving insolvency is Measures the cents on the dollar recoveredbased on the recovery rate, which is recorded as by creditorscents on the dollar recouped by creditors through Present value of debt recoveredreorganization, liquidation or debt enforcement Official costs of the insolvency proceedings(foreclosure) proceedings. The recovery rate is a are deductedfunction of time, cost and other factors, such aslending rate and the likelihood of the company Depreciation of furniture is taken intocontinuing to operate. accountTo make the data comparable across economies, Outcome for the business (survival or not)Doing Business uses several assumptions about the affects the maximum value that can be recoveredbusiness and the case. It assumes that thecompany:  Is a domestically owned, limited liability company operating a hotel.  Has 201 employees, 1 main secured creditor  Operates in the economy’s largest business and 50 unsecured creditors. city.  Has a higher value as a going concern—and the efficient outcome is either reorganization or sale as a going concern, not piecemeal liquidation.
  • 94. Doing Business 2013 Mauritius 94RESOLVING INSOLVENCYWhere does the economy stand today?Speed, low costs and continuation of viable businesses piecemeal sale. The average recovery rate is 40.9 centscharacterize the top-performing economies. How on the dollar.efficient are insolvency proceedings in Mauritius? Globally, Mauritius stands at 64 in the ranking of 185According to data collected by Doing Business, economies on the ease of resolving insolvency (figureresolving insolvency takes 1.7 years on average and 11.1). The rankings for comparator economies and thecosts 15% of the debtor’s estate, with the most likely regional average ranking provide other usefuloutcome being that the company will be sold as benchmarks for assessing the efficiency of insolvency proceedings in Mauritius.Figure 11.1 How Mauritius and comparator economies rank on the ease of resolving insolvencySource: Doing Business database.
  • 95. Doing Business 2013 Mauritius 95RESOLVING INSOLVENCYWhat are the changes over time?While the most recent Doing Business data reflect the changed—and where it has not (table 11.1). That canefficiency of insolvency proceedings in Mauritius help identify where the potential for improvement istoday, data over time show where the efficiency has greatest.Table 11.1 The ease of resolving insolvency in Mauritius over timeBy Doing Business report year Indicator DB2004 DB2005 DB2006 DB2007 DB2008 DB2009 DB2010 DB2011 DB2012 DB2013 Rank .. .. .. .. .. .. .. .. 83 64 Time (years) n.a. 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 Cost (% of estate) n.a. 15 15 15 15 15 15 15 15 15 Recovery rate (cents on the n.a. 34.3 34.3 34.3 34.3 33.6 33.6 35.1 35.1 40.9 dollar)Note: n.a. = not applicable (the economy was not included in Doing Business for that year). DB2012 rankings shown are not lastyear’s published rankings but comparable rankings for DB2012 that capture the effects of such factors as data corrections and theaddition of 2 economies (Barbados and Malta) to the sample this year. ―No practice‖ indicates that in each of the previous 5 yearsthe economy had no cases involving a judicial reorganization, judicial liquidation or debt enforcement procedure (foreclosure). Thismeans that creditors are unlikely to recover their money through a formal legal process (in or out of court). The recovery rate for―no practice‖ economies is 0.Source: Doing Business database.
  • 96. Doing Business 2013 Mauritius 96RESOLVING INSOLVENCYEqually helpful may be the benchmarks provided by possible in improving the efficiency of insolvencythe economies that over time have had the best proceedings. And changes in regional averages canperformance regionally or globally on the time or cost show where Mauritius is keeping up—and where it isof insolvency proceedings or on the recovery rate falling behind.(figure 11.2). These benchmarks help show what isFigure 11.2 Has resolving insolvency become easier over time?Time (years)Cost (% of estate)
  • 97. Doing Business 2013 Mauritius 97RESOLVING INSOLVENCYRecovery rate (cents on the dollar)Note: Regional averages on time and cost exclude economies with a “no practice” mark.Source: Doing Business database.
  • 98. Doing Business 2013 Mauritius 98RESOLVING INSOLVENCYA well-balanced bankruptcy system distinguishes change. Many recent reforms of bankruptcy laws havecompanies that are financially distressed but been aimed at helping more of the viable businesseseconomically viable from inefficient companies that survive. What insolvency reforms has Doing Businessshould be liquidated. But in some insolvency systems recorded in Mauritius (table 11.2)?even viable businesses are liquidated. This is starting toTable 11.2 How has Mauritius made resolving insolvency easier—or not?By Doing Business report yearDB year Reform Mauritius adopted legislation that made the process of sale ofDB2008 immovable property after default on a credit agreement more efficient and less susceptible to abuse by creditors.DB2009 No reform as measured by Doing Business. A new insolvency law in Mauritius introduces a rehabilitation procedure for companies as an alternative to winding up, andDB2010 defines the rights and obligations of creditors and debtors and sanctions for those who abuse the system.DB2011 No reform as measured by Doing Business.DB2012 No reform as measured by Doing Business.DB2013 No reform as measured by Doing Business.Note: For information on reforms in earlier years (back to DB2005), see the Doing Business reportsfor these years, available at http://www.doingbusiness.org.Source: Doing Business database.
  • 99. Doing Business 2013 Mauritius 99EMPLOYING WORKERSDoing Business measures flexibility in the regulation of Particular data for Mauritius are presented hereemployment, specifically as it affects the hiring and without scoring.redundancy of workers and the rigidity of workinghours. From 2007 to 2011 improvements were made to To make the data on employing workers comparablealign the methodology for the employing workers across economies, several assumptions about theindicators with the letter and spirit of the International worker and the business are used.Labour Organization (ILO) conventions. Only 4 of the188 ILO conventions cover areas measured by Doing The worker:Business: employee termination, weekend work,holiday with pay and night work. The Doing Business  Earns a salary plus benefits equal to themethodology is fully consistent with these 4 economy’s average wage during the entireconventions. The ILO conventions covering areas period of his employment.related to the employing workers indicators do not  Has a pay period that is the most common forinclude the ILO core labor standards—8 conventions workers in the economy.covering the right to collective bargaining, the  Is a lawful citizen who belongs to the sameelimination of forced labor, the abolition of child labor race and religion as the majority of theand equitable treatment in employment practices. economy’s population.  Resides in the economy’s largest business city.Between 2009 and 2011 the World Bank Group worked  Is not a member of a labor union, unlesswith a consultative group—including labor lawyers, membership is mandatory.employer and employee representatives, and expertsfrom the ILO, the Organisation for Economic Co- The business:operation and Development, civil society and theprivate sector—to review the employing workers  Is a limited liability company.methodology and explore future areas of research.  Operates in the economy’s largest business city.A full report with the conclusions of the consultative  Is 100% domestically owned.group is available at http://www.doingbusiness.org/  Operates in the manufacturing sector.methodology/employing-workers.  Has 60 employees.  Is subject to collective bargaining agreementsDoing Business 2013 does not present rankings of in economies where such agreements covereconomies on the employing workers indicators or more than half the manufacturing sector andinclude the topic in the aggregate ranking on the ease apply even to firms not party to them.of doing business. The report does present the data on  Abides by every law and regulation but doesthe employing workers indicators in an annex. Detailed not grant workers more benefits thandata collected on labor regulations are available on the mandated by law, regulation or (if applicable)Doing Business website (http://www.doing business.org). collective bargaining agreement.
  • 100. Doing Business 2013 Mauritius 100EMPLOYING WORKERSWhat do some of the data show?One of the employing workers indicators is the worker in his or her first job. Doing Business data showdifficulty of hiring index. This measure assesses, among the trend in the minimum wage applied by Mauritiusother things, the minimum wage for a 19-year-old (figure 12.1).Figure 12.1 Has the minimum wage for a 19-year-old worker or an apprentice increased over time?Minimum wage (US$ per month)Note: A horizontal line along the x-axis of the figure indicates that the economy has no minimum wage.Source: Doing Business database.
  • 101. Doing Business 2013 Mauritius 101EMPLOYING WORKERSEmployment laws are needed to protect workers from past 4 years did so in ways that increased labor marketarbitrary or unfair treatment and to ensure efficient flexibility. What changes did Mauritius adopt thatcontracting between employers and workers. Many affected the Doing Business indicators on employingeconomies that changed their labor regulations in the workers (table 12.1)?Table 12.1 What changes did Mauritius make in employing workers in 2012?ReformNo reform as measured by Doing Business.Source: Doing Business database.
  • 102. Doing Business 2013 Mauritius 102EMPLOYING WORKERSWhat are the details?The data on employing workers reported here for lawyers and public officials. Employment laws andMauritius are based on a detailed survey of regulations as well as secondary sources are reviewedemployment regulations that is completed by local to ensure accuracy.Rigidity of employment indexThe rigidity of employment index measures 3 areas of labor regulation: difficulty of hiring, rigidity of hours anddifficulty of redundancy.Difficulty of hiring indexThe difficulty of hiring index measures whether fixed- worker. (The average value added per worker is theterm contracts are prohibited for permanent tasks; the ratio of an economy’s gross national income per capitamaximum cumulative duration of fixed-term contracts; to the working-age population as a percentage of theand the ratio of the minimum wage for a trainee or total population.)first-time employee to the average value added per Difficulty of hiring index Data Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single fixed-term contract (months) No limit Maximum length of fixed-term contracts, including renewals (months) No limit Minimum wage for a 19-year old worker or an apprentice (US$/month) 166.3 Ratio of minimum wage to value added per worker 0.17Source: Doing Business database.
  • 103. Doing Business 2013 Mauritius 103EMPLOYING WORKERSRigidity of hours indexThe rigidity of hours index has 5 components: whether respond to a seasonal increase in production; andthere are restrictions on night work; whether there are whether the average paid annual leave for a workerrestrictions on weekly holiday work; whether the with 1 year of tenure, a worker with 5 years and aworkweek can consist of 5.5 days or is more than 6 worker with 10 years is more than 26 working days ordays; whether the workweek can extend to 50 hours or fewer than 15 working days.more (including overtime) for 2 months a year to Rigidity of hours index Data 8 hours. Section 14 ( 1)(a) Employment Standard workday in manufacturing (hours) Act 2008 50-hour workweek allowed for 2 months a year in case of a seasonal Yes increase in production? Maximum working days per week 6.0 Premium for night work (% of hourly pay) in case of continuous 0% operations Premium for work on weekly rest day (% of hourly pay) in case of 100% continuous operations Major restrictions on night work in case of continuous operations? No Major restrictions on weekly holiday in case of continuous operations? No Paid annual leave for a worker with 1 year of tenure (in working days) 22.0 Paid annual leave for a worker with 5 years of tenure (in working days) 22.0 Paid annual leave for a worker with 10 years of tenure (in working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in 22.0 working days)Source: Doing Business database.
  • 104. Doing Business 2013 Mauritius 104EMPLOYING WORKERSDifficulty of redundancy indexThe difficulty of redundancy index has 8 components: worker; whether the employer needs approval from awhether redundancy is disallowed as a basis for third party to terminate a group of 9 redundantterminating workers; whether the employer needs to workers; whether the law requires the employer tonotify a third party (such as a government agency) to reassign or retrain a worker before making the workerterminate 1 redundant worker; whether the employer redundant; whether priority rules apply forneeds to notify a third party to terminate a group of 9 redundancies; and whether priority rules apply forredundant workers; whether the employer needs reemployment.approval from a third party to terminate 1 redundant Difficulty of redundancy index Data Dismissal due to redundancy allowed by law? Yes Third-party notification if 1 worker is dismissed? Yes Third-party approval if 1 worker is dismissed? No Third-party notification if 9 workers are dismissed? Yes Third-party approval if 9 workers are dismissed? No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? NoSource: Doing Business database.
  • 105. Doing Business 2013 Mauritius 105EMPLOYING WORKERSRedundancy costThe redundancy cost indicator measures the cost of notice requirements and severance paymentsadvance notice requirements, severance payments and applicable to a worker with 1 year of tenure, a workerpenalties due when terminating a redundant worker, with 5 years and a worker with 10 years is used toexpressed in weeks of salary. The average value of assign the score. Redundancy cost indicator Data Notice period for redundancy dismissal (for a worker with 1 year of tenure, in salary 4.3 weeks) Notice period for redundancy dismissal (for a worker with 5 years of tenure, in 4.3 salary weeks) Notice period for redundancy dismissal (for a worker with 10 years of tenure, in 4.3 salary weeks) Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years 4.3 of tenure, in salary weeks) Severance pay for redundancy dismissal (for a worker with 1 year of tenure, in 0.4 salary weeks) Severance pay for redundancy dismissal (for a worker with 5 years of tenure, in 4.3 salary weeks) Severance pay for redundancy dismissal (for a worker with 10 years of tenure, in 14.3 salary weeks) Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years 6.3 of tenure, in salary weeks)Source: Doing Business database.
  • 106. Doing Business 2013 Mauritius 106DATA NOTESThe indicators presented and analyzed in DoingBusiness measure business regulation and the ECONOMY CHARACTERISTICSprotection of property rights—and their effect onbusinesses, especially small and medium-size domesticfirms. First, the indicators document the complexity of Gross national income per capitaregulation, such as the number of procedures to start abusiness or to register and transfer commercial Doing Business 2013 reports 2011 income per capitaproperty. Second, they gauge the time and cost of as published in the World Bank’s World Developmentachieving a regulatory goal or complying with Indicators 2012. Income is calculated using the Atlas method (current US$). For cost indicators expressedregulation, such as the time and cost to enforce a as a percentage of income per capita, 2011 grosscontract, go through bankruptcy or trade across national income (GNI) in U.S. dollars is used as theborders. Third, they measure the extent of legal denominator. GNI data were not available from theprotections of property, for example, the protections World Bank for Afghanistan; Australia; The Bahamas;of investors against looting by company directors or Bahrain; Barbados; Brunei Darussalam; Cyprus;the range of assets that can be used as collateral Djibouti; Guyana; the Islamic Republic of Iran;according to secured transactions laws. Fourth, a set of Kuwait; Malta; New Zealand; Oman; Puerto Ricoindicators documents the tax burden on businesses. (territory of the United States); Sudan; Suriname; theFinally, a set of data covers different aspects of Syrian Arab Republic; Timor-Leste; West Bank andemployment regulation. Gaza; and the Republic of Yemen. In these cases GDP or GNP per capita data and growth rates fromThe data for all sets of indicators in Doing Business the International Monetary Fund’s World Economic 22013 are for June 2012. Outlook database and the Economist Intelligence Unit were used. Region and income groupMethodology Doing Business uses the World Bank regional andThe Doing Business data are collected in a income group classifications, available atstandardized way. To start, the Doing Business team, http://data.worldbank.org/about/country-with academic advisers, designs a questionnaire. The classifications. The World Bank does not assignquestionnaire uses a simple business case to ensure regional classifications to high-income economies.comparability across economies and over time—with For the purpose of the Doing Business report, high-assumptions about the legal form of the business, its income OECD economies are assigned the ―regional‖size, its location and the nature of its operations. classification OECD high income. Figures and tablesQuestionnaires are administered through more than presenting regional averages include economies9,600 local experts, including lawyers, business from all income groups (low, lower middle, upperconsultants, accountants, freight forwarders, middle and high income).government officials and other professionals routinely Populationadministering or advising on legal and regulatory Doing Business 2013 reports midyear 2011requirements. These experts have several rounds of population statistics as published in Worldinteraction with the Doing Business team, involving Development Indicators 2012.conference calls, written correspondence and visits bythe team. For Doing Business 2013 team membersvisited 24 economies to verify data and recruit The Doing Business methodology offers severalrespondents. The data from questionnaires are advantages. It is transparent, using factual informationsubjected to numerous rounds of verification, leading about what laws and regulations say and allowingto revisions or expansions of the information collected. multiple interactions with local respondents to clarify potential misinterpretations of questions. Having2 The data for paying taxes refer to January – December 2011.
  • 107. Doing Business 2013 Mauritius 107representative samples of respondents is not an issue; 2013 would differ from the recollection ofDoing Business is not a statistical survey, and the texts entrepreneurs reported in the World Bank Enterpriseof the relevant laws and regulations are collected and Surveys or other perception surveys.answers checked for accuracy. The methodology isinexpensive and easily replicable, so data can becollected in a large sample of economies. Because Subnational Doing Business indicatorsstandard assumptions are used in the data collection, This year Doing Business completed subnationalcomparisons and benchmarks are valid across studies for Indonesia, Kenya, Mexico, the Russianeconomies. Finally, the data not only highlight the Federation and the United Arab Emirates. Each ofextent of specific regulatory obstacles to business but these countries had already asked to have subnationalalso identify their source and point to what might be data in the past, and this year Doing Business updatedreformed. the indicators, measured improvements over time andInformation on the methodology for each Doing expanded geographic coverage to additional cities orBusiness topic can be found on the Doing Business added additional indicators. Doing Business alsowebsite at http://www.doingbusiness.org/methodology/. published regional studies for the Arab world, the East African Community and member states of the Organization for the Harmonization of Business Law inLimits to what is measured Africa (OHADA).The Doing Business methodology has 5 limitations that The subnational studies point to differences inshould be considered when interpreting the data. First, business regulation and its implementation—as well asthe collected data refer to businesses in the economy’s in the pace of regulatory reform—across cities in thelargest business city (which in some economies differs same economy. For several economies subnationalfrom the capital) and may not be representative of studies are now periodically updated to measureregulation in other parts of the economy. To address change over time or to expand geographic coveragethis limitation, subnational Doing Business indicators to additional cities. This year that is the case for all thewere created (see the section on subnational Doing subnational studies published.Business indicators). Second, the data often focus on aspecific business form—generally a limited liabilitycompany (or its legal equivalent) of a specified size— Changes in what is measuredand may not be representative of the regulation on The ranking methodology for paying taxes wasother businesses, for example, sole proprietorships. updated this year. The threshold for the total tax rateThird, transactions described in a standardized case introduced last year for the purpose of calculating thescenario refer to a specific set of issues and may not ranking on the ease of paying taxes was updated. Allrepresent the full set of issues a business encounters. economies with a total tax rate below the thresholdFourth, the measures of time involve an element of (which is calculated and adjusted on a yearly basis)judgment by the expert respondents. When sources receive the same ranking on the total tax rateindicate different estimates, the time indicators indicator. The threshold is not based on any economicreported in Doing Business represent the median theory of an ―optimal tax rate‖ that minimizesvalues of several responses given under the distortions or maximizes efficiency in the tax system ofassumptions of the standardized case. an economy overall. Instead, it is mainly empirical inFinally, the methodology assumes that a business has nature, set at the lower end of the distribution of taxfull information on what is required and does not rates levied on medium-size enterprises in thewaste time when completing procedures. In practice, manufacturing sector as observed through the payingcompleting a procedure may take longer if the taxes indicators. This reduces the bias in the indicatorsbusiness lacks information or is unable to follow up toward economies that do not need to levy significantpromptly. Alternatively, the business may choose to taxes on companies like the Doing Businessdisregard some burdensome procedures. For both standardized case study company because they raisereasons the time delays reported in Doing Business public revenue in other ways—for example, through
  • 108. Doing Business 2013 Mauritius 108taxes on foreign companies, through taxes on sectors investors, paying taxes, trading across borders,other than manufacturing or from natural resources enforcing contracts, and resolving insolvency. The(all of which are outside the scope of the employing workers indicators are not included in thismethodology). Giving the same ranking to all year’s aggregate ease of doing business ranking. Ineconomies whose total tax rate is below the threshold addition to this year’s ranking, Doing Business presentsavoids awarding economies in the scoring for having a comparable ranking for the previous year, adjustedan unusually low total tax rate, often for reasons for any changes in methodology as well as additions of 3unrelated to government policies toward enterprises. economies or topics.For example, economies that are very small or that are Construction of the ease of doing business indexrich in natural resources do not need to levy broad-based taxes. Here is one example of how the ease of doing business index is constructed. In Finland it takes 3 procedures, 14 days and 4% of annual income per capita in fees toData challenges and revisions register a property. On these 3 indicators Finland ranks in the 6th, 16th and 39th percentiles. So on averageMost laws and regulations underlying the Doing Finland ranks in the 20th percentile on the ease ofBusiness data are available on the Doing Business registering property. It ranks in the 30th percentile onwebsite at http://www.doingbusiness.org. All the th starting a business, 28 percentile on getting credit,sample questionnaires and the details underlying the 24th percentile on paying taxes, 13th percentile onindicators are also published on the website. Questions enforcing contracts, 5th percentile on trading acrosson the methodology and challenges to data can be borders and so on. Higher rankings indicate simplersubmitted through the website’s ―Ask a Question‖ regulation and stronger protection of property rights.function at http://www.doingbusiness.org. The simple average of Finland’s percentile rankings on all topics is 21st. When all economies are ordered byEase of doing business and distance to their average percentile rankings, Finland stands at 11frontier in the aggregate ranking on the ease of doing business.Doing Business 2013 presents results for 2 aggregatemeasures: the aggregate ranking on the ease of doing More complex aggregation methods—such asbusiness and the distance to frontier measure. The principal components and unobserved components—ease of doing business ranking compares economies yield a ranking nearly identical to the simple average 4with one another, while the distance to frontier used by Doing Business. Thus, Doing Business usesmeasure benchmarks economies to the frontier in the simplest method: weighting all topics equally and,regulatory practice, measuring the absolute distance tothe best performance on each indicator. Bothmeasures can be used for comparisons over time. 3 In case of revisions to the methodology or corrections to the underlying data, the data are back-calculated to provide aWhen compared across years, the distance to frontier comparable time series since the year the relevant economy or topicmeasure shows how much the regulatory environment was first included in the data set. The time series is available on thefor local entrepreneurs in each economy has changed Doing Business website (http://www.doingbusiness.org). Six topicsover time in absolute terms, while the ease of doing and more than 50 economies have been added since the inceptionbusiness ranking can show only relative change. of the project. Earlier rankings on the ease of doing business are therefore not comparable.Ease of doing business 4 See Simeon Djankov, Darshini Manraj, Caralee McLiesh and Rita Ramalho, ―Doing Business Indicators: Why Aggregate, and How toThe ease of doing business index ranks economies Do It‖ (World Bank, Washington, DC, 2005). Principal componentsfrom 1 to 185. For each economy the ranking is and unobserved components methods yield a ranking nearlycalculated as the simple average of the percentile identical to that from the simple average method because bothrankings on each of the 10 topics included in the index these methods assign roughly equal weights to the topics, since the pairwise correlations among indicators do not differ much. Anin Doing Business 2013: starting a business, dealing alternative to the simple average method is to give different weightswith construction permits, getting electricity, to the topics, depending on which are considered of more or lessregistering property, getting credit, protecting importance in the context of a specific economy.
  • 109. Doing Business 2013 Mauritius 109within each topic, giving equal weight to each of the ability of different government agencies to deliver 5topic components. tangible results in their area of responsibility.If an economy has no laws or regulations covering a Economies that improved the most across 3 or morespecific area—for example, insolvency—it receives a Doing Business topics in 2011/12―no practice‖ mark. Similarly, an economy receives a Doing Business 2013 uses a simple method to calculate―no practice‖ or ―not possible‖ mark if regulation exists which economies improved the most in the ease ofbut is never used in practice or if a competing doing business. First, it selects the economies that inregulation prohibits such practice. Either way, a ―no 2011/12 implemented regulatory reforms making itpractice‖ mark puts the economy at the bottom of the easier to do business in 3 or more of the 10 topicsranking on the relevant indicator. 6 included in this year’s ease of doing business ranking.The ease of doing business index is limited in scope. It Twenty-three economies meet this criterion: Benin,does not account for an economy’s proximity to large Burundi, Costa Rica, the Czech Republic, Georgia,markets, the quality of its infrastructure services (other Greece, Guinea, Kazakhstan, Korea, the Lao People’sthan services related to trading across borders and Democratic Republic, Liberia, Mongolia, thegetting electricity), the strength of its financial system, Netherlands, Panama, Poland, Portugal, Serbia, thethe security of property from theft and looting, Slovak Republic, Slovenia, Sri Lanka, Ukraine, themacroeconomic conditions or the strength of United Arab Emirates and Uzbekistan. Second, Doingunderlying institutions. Business ranks these economies on the increase in their ranking on the ease of doing business from theVariability of economies’ rankings across topics previous year using comparable rankings.Each indicator set measures a different aspect of the Selecting the economies that implemented regulatorybusiness regulatory environment. The rankings of an reforms in at least 3 topics and improved the most ineconomy can vary, sometimes significantly, across the aggregate ranking is intended to highlightindicator sets. The average correlation coefficient economies with ongoing, broad-based reformbetween the 10 indicator sets included in the programs.aggregate ranking is 0.37, and the coefficientsbetween any 2 sets of indicators range from 0.19 Distance to frontier measure(between dealing with construction permits and A drawback of the ease of doing business ranking isgetting credit) to 0.60 (between starting a business that it can measure the regulatory performance ofand protecting investors). These correlations suggest economies only relative to the performance of others.that economies rarely score universally well or It does not provide information on how the absoluteuniversally badly on the indicators. quality of the regulatory environment is improvingConsider the example of Canada. It stands at 17 in the over time. Nor does it provide information on howaggregate ranking on the ease of doing business. Its large the gaps are between economies at a singleranking is 3 on starting a business, and 4 on both point in time.resolving insolvency and protecting investors. But its The distance to frontier measure is designed toranking is only 62 on enforcing contracts, 69 on address both shortcomings, complementing the easedealing with construction permits and 152 on getting of doing business ranking. This measure illustrates theelectricity. distance of an economy to the ―frontier,‖ and theVariation in performance across the indicator sets is change in the measure over time shows the extent tonot at all unusual. It reflects differences in the degree which the economy has closed this gap. The frontier isof priority that government authorities give to a score derived from the most efficient practice orparticular areas of business regulation reform and the highest score achieved on each of the component indicators in 9 Doing Business indicator sets (excluding5 6 A technical note on the different aggregation and weighting Doing Business reforms making it more difficult to do business aremethods is available on the Doing Business website subtracted from the total number of those making it easier to do(http://www.doingbusiness.org). business.
  • 110. Doing Business 2013 Mauritius 110the employing workers and getting electricity The maximum (max) and minimum (min) observedindicators) by any economy since 2005. In starting a values are computed for the 174 economies includedbusiness, for example, New Zealand has achieved the in the Doing Business sample since 2005 and for allhighest performance on the time (1 day), Canada and years (from 2005 to 2012). The year 2005 was chosenNew Zealand on the number of procedures required as the baseline for the economy sample because it was(1), Slovenia on the cost (0% of income per capita) and the first year in which data were available for theAustralia and 90 other economies on the paid-in majority of economies (a total of 174) and for all 9minimum capital requirement (0% of income per indicator sets included in the measure. To mitigate thecapita). Calculating the distance to frontier for each effects of extreme outliers in the distributions of theeconomy involves 2 main steps. First, individual rescaled data (very few economies need 694 days toindicator scores are normalized to a common unit: complete the procedures to start a business, but many thexcept for the total tax rate. To do so, each of the 28 need 9 days), the maximum (max) is defined as the 95component indicators y is rescaled to (max − y)/(max percentile of the pooled data for all economies and all− min), with the minimum value (min) representing the years for each indicator. The exceptions are the gettingfrontier—the highest performance on that indicator credit, protecting investors and resolving insolvencyacross all economies since 2005. For the total tax rate, indicators, whose construction precludes outliers.consistent with the calculation of the rankings, the Take Ghana, which has a score of 67 on the distance tofrontier is defined as the total tax rate corresponding th frontier measure for 2012. This score indicates that theto the 15 percentile based on the overall distribution economy is 33 percentage points away from theof total tax rates for all years. Second, for each frontier constructed from the best performanceseconomy the scores obtained for individual indicators across all economies and all years. Ghana was furtherare aggregated through simple averaging into one from the frontier in 2005, with a score of 54. Thedistance to frontier score. An economy’s distance to difference between the scores shows an improvementfrontier is indicated on a scale from 0 to 100, where 0 over time.represents the lowest performance and 100 thefrontier. The distance to frontier measure can also be used for comparisons across economies in the same year,The difference between an economy’s distance to complementing the ease of doing business ranking.frontier score in 2005 and its score in 2012 illustrates For example, Ghana stands at 64 this year in the easethe extent to which the economy has closed the gap to of doing business ranking, while Peru, which is 29the frontier over time. And in any given year the score percentage points from the frontier, stands at 43.measures how far an economy is from the highestperformance at that time.
  • 111. Doing Business 2013 Mauritius 111RESOURCES ON THE DOING BUSINESS WEBSITECurrent features Doing Business reformsNews on the Doing Business project Short summaries of DB2013 business regulationhttp://www.doingbusiness.org reforms, lists of reforms since DB2008 and a ranking simulation toolRankings http://www.doingbusiness.org/reforms/How economies rank—from 1 to 185http://www.doingbusiness.org/rankings/ Historical data Customized data sets since DB2004Data http://www.doingbusiness.org/custom-query/All the data for 185 economies—topic rankings,indicator values, lists of regulatory procedures and Law librarydetails underlying indicators Online collection of business laws and regulationshttp://www.doingbusiness.org/data/ relating to business and gender issues http://www.doingbusiness.org/law-library/Reports http://wbl.worldbank.org/Access to Doing Business reports as well assubnational and regional reports, reform case Contributorsstudies and customized economy and regional More than 9,600 specialists in 185 economies whoprofiles participate in Doing Businesshttp://www.doingbusiness.org/reports/ http://www.doingbusiness.org/contributors/doing- business/MethodologyThe methodologies and research papers NEW! Entrepreneurship dataunderlying Doing Business Data on business density for 130 economieshttp://www.doingbusiness.org/methodology/ http://www.doingbusiness.org/data/exploretopics/e ntrepreneurshipResearchAbstracts of papers on Doing Business topics and More to comerelated policy issues Coming soon—information on good practices andhttp://www.doingbusiness.org/research/ data on transparency and on the distance to frontier
  • 112. Doing Business 2013 Mauritius 112