Mauritius Unveils Plans To Improve Business Environment

by Lorys Charalambous, Tax-News.com, Cyprus

16 June 2008

The Government of Mauritius last week outlined budget measures designed to facilitate business in the jurisdiction, announcing that it will continue with its policy to further open the economy to the rest of the world, through improvements in the ease of doing business, consolidation of productive sectors, and constructing new economic pillars.

The newly announced measures included:

• The Board of Investment, with the assistance of the World Bank, will streamline and simplify the system of business licensing to make compliance easier, less time consuming and less costly.
• All investors with businesses in Mauritius having an annual turnover exceeding Rs15mn for three consecutive years will now be able to apply for Permanent Residence. Up to now, this facility did not apply for investments made prior to October 2006.
• The time it takes to settle commercial disputes will be cut from around 2 years to 7 months, which is international best practice. A Commercial Division will be set up in the Supreme Court.
• The time it takes to register a property in Mauritius will be reduced from - in some cases - up to 210 days, to 15 working days. To make this possible, the necessary legislative amendments will be brought, along with the eventual introduction of the Land Administration, Valuation and Information Management Systems.
• Access to credit will be improved. The Bank of Mauritius Act will be amended to allow the Mauritius Credit Information Bureau to cover non-Bank financial institutions and utility companies in its database and to provide information to regulated service providers. The Banking Act will also be amended to allow for the setting up of private credit information bureaus.
• The processes for exports and imports will be significantly simplified. The aim is to reduce the number of permits relating to imports and exports to the essential minimum, by 1st July 2009.
• Provisions will be made to suspend as from 1 July 2009 all permits relating to imports and exports, except those that are considered essential. Any justification from an organisation for maintaining a permit will have to be substantiated before a special committee.
• The Morcellement Act 1990 will be amended so as to allow all developers to take reservations and deposits equivalent to the cost of infrastructural works by providing a bank guarantee equivalent to the amount of such works, including offsite works.

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