Doing Business 2018 Mauritius Economy Pro le of Mauritius Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Mauritius Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Mauritius Income Category Upper middle income 25 Population 1,263,473 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 9,760 0 100 77.54 City Covered Port Louis DB 2018 Distance to Frontier (DTF) 0 100 82.22: United Kingdom (Rank: 7) 77.54: Mauritius (Rank: 25) 73.40: Rwanda (Rank: 41) 64.94: Botswana (Rank: 81) 50.43: Regional Average (Sub­Saharan Africa) Page 3   47.67: Madagascar (Rank: 162) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Mauritius Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Mauritius Income Category Upper middle income 25 Population 1,263,473 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 9,760 0 100 77.54 City Covered Port Louis DB 2018 Distance to Frontier (DTF) 0 100 82.22: United Kingdom (Rank: 7) 77.54: Mauritius (Rank: 25) 73.40: Rwanda (Rank: 41) 64.94: Botswana (Rank: 81) 50.43: Regional Average (Sub­Saharan Africa) 47.67: Madagascar (Rank: 162) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Mauritius 1 9 10 27 28 35 33 36 40 51 55 55 70 82 Rank 109 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Mauritius 100 92.00 90.85 82.45 82.03 77.89 79.90 80 69.58 69.06 65.00 66.67 60 DTF 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.06 Change:+15.07 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:0.00 Change:+0.35 Permits Change:0.00 Change:+1.23 Change:+4.24 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+0.06 Change:+15.07 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:0.00 Change:+0.35 Permits Change:0.00 Change:+1.23 Doing Business 2018 Mauritius Change:+4.24 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Mauritius Standardized Company Legal form Private Limited Liability Company Paid-in minimum capital requirement MUR 0 City Covered Port Louis Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Procedure – Men (number) 5 7.6 4.9 1.00 (New Zealand) Time – Men (days) 5 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 1.0 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 6 7.7 4.9 1.00 (New Zealand) Time – Women (days) 6 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 1.0 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 94.58: United Kingdom (Rank: 14) 92.00: Mauritius (Rank: 40) 87.76: Madagascar (Rank: 76) 87.66: Rwanda (Rank: 78) 76.82: Regional Average (Sub-Saharan Africa) 76.22: Botswana (Rank: 153) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Mauritius – Procedure, Time and Cost Time Cost 6 1 5 0.8 ost (% of income per capita) 4 Time (days) 0.6 3 0.4 2 Page 6   starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Mauritius Figure – Starting a Business in Mauritius – Procedure, Time and Cost Time Cost 6 1 5 0.8 Cost (% of income per capita) 4 Time (days) 0.6 3 0.4 2 0.2 1 0 0 1 2 3 *4 *5 *6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs  1 APPLIES TO WOMEN ONLY: Obtain marriage certi cate for national 1 day MUR 25 for a stamp identi cation card Agency : Central Civil Status O ce Under the National Identity Card Act, Art. 4, Registrar of Civil Status has the discretion to request additional documents such as marriage certi cates for married women as the Registrar deems t. Marriage certi cates may be requested by married woman either at the Central Civil Status O ce in Port Louis or at the civil status o ce where the wedding was celebrated. 2 Register the company 1 day MUR 3,000 in Agency : Registrar of Companies registration fees + MUR 100 for the To register, the entrepreneur completes the company incorporation form certificate of and the business registration form including the relevant business details incorporation for and submits them either online or to the Registrar of Companies after online registration payment of fees has been a ected either online or on-site. After registering online, a computer-generated certi cate is provided once the company is registered. Upon incorporation, the Registrar of Companies updates the online Central Business Registration Database with the details of the registered companies. The Mauritius Revenue Authority, Local Authority (Municipality) & the Ministry of Social Security are connected to the Central Business Registration Database system, which is located at the Registrar of Companies. Therefore, once a company is incorporated, it is automatically registered for taxes and Page 7   does not need to le a separate application at the Tax O ce. The (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Mauritius Details – Starting a Business in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs  1 APPLIES TO WOMEN ONLY: Obtain marriage certi cate for national 1 day MUR 25 for a stamp identi cation card Agency : Central Civil Status O ce Under the National Identity Card Act, Art. 4, Registrar of Civil Status has the discretion to request additional documents such as marriage certi cates for married women as the Registrar deems t. Marriage certi cates may be requested by married woman either at the Central Civil Status O ce in Port Louis or at the civil status o ce where the wedding was celebrated. 2 Register the company 1 day MUR 3,000 in Agency : Registrar of Companies registration fees + MUR 100 for the To register, the entrepreneur completes the company incorporation form certificate of and the business registration form including the relevant business details incorporation for and submits them either online or to the Registrar of Companies after online registration payment of fees has been a ected either online or on-site. After registering online, a computer-generated certi cate is provided once the company is registered. Upon incorporation, the Registrar of Companies updates the online Central Business Registration Database with the details of the registered companies. The Mauritius Revenue Authority, Local Authority (Municipality) & the Ministry of Social Security are connected to the Central Business Registration Database system, which is located at the Registrar of Companies. Therefore, once a company is incorporated, it is automatically registered for taxes and does not need to le a separate application at the Tax O ce. The information of the employer is electronically shared with the Ministry of Social Security (MSS). 3 Receive inspection by the local authorities 4 days on average no charge Agency : Local Authorities Once the company is registered, the Registrar of Companies provides relevant agencies with an electronic notice about the newly registered business and the expected start date of its business activities. These agencies include: the Sanitary Authority, the Police Department, the Fire Services Department, the Ministry of Health, the Ministry of Environment, and so forth. Subsequently, local authorities communicate fees, relevant guidelines, and other provisions with businesses that intend to trade within their jurisdiction. 4 Obtain an exemption certi cate for trade fees 1 day Exemption for trade Agency : Local Authorities (simultaneous with fees of MUR 5,000 previous and below Further to the amendments to the Finance (Miscellaneous provisions) Act procedure) No. 18 of 2016, Section 122 of the Local Government Act No. 36 of 2011 has been amended to provide for the suspension of trade fees of MUR 5,000 and below. As from January 2017 and for a period of three years, all Small and Medium Enterprises are exempt from paying trade fees for licences of MUR 5,000 and below. This is except for those engaged in activities such as gambling, sales of liquor and cigarettes. Page 8   guidelines, and other provisions with businesses that intend to trade within Doing their jurisdiction. Business 2018 Mauritius 4 Obtain an exemption certi cate for trade fees 1 day Exemption for trade Agency : Local Authorities (simultaneous with fees of MUR 5,000 previous and below Further to the amendments to the Finance (Miscellaneous provisions) Act procedure) No. 18 of 2016, Section 122 of the Local Government Act No. 36 of 2011 has been amended to provide for the suspension of trade fees of MUR 5,000 and below. As from January 2017 and for a period of three years, all Small and Medium Enterprises are exempt from paying trade fees for licences of MUR 5,000 and below. This is except for those engaged in activities such as gambling, sales of liquor and cigarettes. Instead, entrepreneurs obtain an exemption certi cate by the Municipal city council. 5 Register with the Social Security O ce 1 day no charge Agency : Social Security O ce (simultaneous with procedure 3) The entrepreneur must submit a completed Social Security Registration application form on the Central Business Registration Database, along with the following documents: 1. Employer registration 2. Certi cate of incorporation (2 copies) 3. Copy of the Business Registration Card 4. List of the company's Directors Data is downloaded from the Central Business Registration Database system located at the Registrar of Companies. Potential employers are contacted by the Social Security O ce. Employers should submit a monthly return of contributions either electronically or by lling in forms provided by the Ministry of Social Security (MSS). As of January 2013, legal amendments have been made to Section 46 of the National Pension Act to allow employers with 50 or more employees to electronically submit the monthly return of contributions to the Ministry of Social Security (MSS). 6 Make a company seal 1 day USD 12 Agency : Sealmaker (simultaneous with procedure 3) The Certi cate of Incorporation of the company along with a letter requesting them to make the company seal have to be submitted to the seal maker. A company seal has not been a legal requirement since 2008, but they are commonly used in business operations. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Page 9   Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Mauritius Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. Building quality control index (0-15) - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 10   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Mauritius Standardized Warehouse Estimated value of warehouse MUR 17,099,885.30 City Covered Port Louis Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Procedures (number) 15 14.8 12.5 7.00 (Denmark) Time (days) 98 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 0.6 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 14.0 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 82.45: Mauritius (Rank: 9) 80.39: United Kingdom (Rank: 14) 72.27: Botswana (Rank: 59) 65.56: Rwanda (Rank: 112) 56.91: Regional Average (Sub-Saharan Africa) 35.88: Madagascar (Rank: 183) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Mauritius – Procedure, Time and Cost Time Cost 0.4 0.35 80 Cost (% of warehouse value) 0.3 60 0.25 Time (days) 0.2 40 0.15 0.1 20 0.05 0 0 1 *2 *3 *4 5 6 7 8 *9 10 * 11 12 13 14 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 11   component indicators. Doing Business 2018 Mauritius Figure – Dealing with Construction Permits in Mauritius – Procedure, Time and Cost Time Cost 0.4 0.35 80 Cost (% of warehouse value) 0.3 60 0.25 Time (days) 0.2 40 0.15 0.1 20 0.05 0 0 1 *2 *3 *4 5 6 7 8 *9 10 * 11 12 13 14 15 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Mauritius and comparator economies – Measure of Quality 16 14.0 14.0 14 12 10.5 Index score 10 9.0 8.0 8 6 5.0 4 2 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Dealing with Construction Permits in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain plan approval from the Central Water Authority (CWA) 15 days MUR 250 Agency : Central Water Authority (CWA) In this procedure BuildCo. submits the drawings and the volume required for the water installation. As it is the rst procedure, it cannot be simultaneous with any other one. 2 Obtain plan approval from the WasteWater Management Authority 15 days MUR 800 (WMA) Agency : WasteWater Management Authority (WMA) It is mandatory to obtain a building sewerage clearance before requesting a building and land-use permit. Two sets of building plans must be submitted Page 12   Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Doing Business 2018 Mauritius Details – Dealing with Construction Permits in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain plan approval from the Central Water Authority (CWA) 15 days MUR 250 Agency : Central Water Authority (CWA) In this procedure BuildCo. submits the drawings and the volume required for the water installation. As it is the rst procedure, it cannot be simultaneous with any other one. 2 Obtain plan approval from the WasteWater Management Authority 15 days MUR 800 (WMA) Agency : WasteWater Management Authority (WMA) It is mandatory to obtain a building sewerage clearance before requesting a building and land-use permit. Two sets of building plans must be submitted to either the Port-Louis Sewerage o ce for buildings in Port-Louis and in the northern parts of the island or Beau-Bassin sewerage o ce for buildings in upper and lower Plaines-Wilhems and the southern parts of the island. An acknowledgement is issued upon receipt of the documents and a clearance will be issued within 15 days. Since this procedure is processed in a di erent institution as the previous one, it can be a simultaneous one. 3 Obtain re safety clearance 14 days MUR 250 Agency : Fire Department This procedure is cleared by the Central Electrical Board (CEB). Since this procedure is processed in a di erent institution as the previous one, it can be a simultaneous one. 4 Obtain plan approval from the Central Electricity Board (CEB) 10 days MUR 375 Agency : Central Electricity Board (CEB) The procedure of obtaining the plan approval consists of a noti cation and a check that all the requirements have been met, rather than an approval per se. Approvals from the utility companies and the Fire Department are a prerequisite for the building and land-use permit. Since this procedure is processed in a di erent institution as the previous one, it can be a simultaneous one. 5 Obtain building and land use permit 21 days MUR 65,530 Agency : Local Authority (Municipality) As of October 1, 2006, a single permit, the building and land-use permit (BLP), has replaced both the development permit and the building 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 required in addition to the application: Page 13   Every application for a building and land-use permit must be in accordance Business Doing with of theMauritius 2018 provisions Building Act, the Town and Country Planning Act, and the Planning and Development Act of 2004. The following documents are required in addition to 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 noti cation 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 larger ones with a potential environmental impact. Neither applies to the warehouse assessed in the Doing Business case study. • All plans must be signed by the draughtsman for buildings of less than 250 sq. m. in oor area and must include the name and address. The total oor area is to be indicated on the site plan, while the oor area for each level is to be indicated on the corresponding oor plans • For buildings of 150 sq. m. or more in oor 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 oor area is to be indicated on the site plan, while the oor area for each level is to be indicated on the corresponding oor 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 should be reviewed within 14 working days of the date of receipt of the application. Upon approval of the Executive Committee, the building and land use permit is issued. The costs associated with the application for the dual permit include an application fee of MUR 500, plus 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. • MUR 50.00 per sq. m. for areas of more than 500 sq. m. This procedure is processed at the same institution as the previous one, for that reason it cannot be a simultaneous one. 6 Notify the Local Authority of commencement of work 1 day no charge Agency : Local Authority (Municipality) On March 15, 2013, Mauritius implemented the Building Control Act 2012, gazetted on June 16, 2012 and implemented by Proclamation Nº10. According to Art. 17, a noti cation of commencement of work must be sent to the issuing permit authority. This procedure is processed at the same Page 14   Doing Business 2018 Mauritius 6 Notify the Local Authority of commencement of work 1 day no charge Agency : Local Authority (Municipality) On March 15, 2013, Mauritius implemented the Building Control Act 2012, gazetted on June 16, 2012 and implemented by Proclamation Nº10. According to Art. 17, a noti cation of commencement of work must be sent to the issuing permit authority. This procedure is processed at the same institution as the previous one, for that reason it cannot be a simultaneous one. 7 Receive random inspection by Local Authority 1 day no charge Agency : Local Authority (Municipality) A random inspection is carried out without any notice at any time. This procedure is processed at the same institution as the previous one, and can only be requested, upon construction is already started, for that reason it cannot be a simultaneous one. 8 Request and receive re inspection 1 day MUR 100 Agency : Government Fire Services After completion of construction and before starting up business operations, BuildCo informs the Fire Department, which sends out inspectors and issues a re certi cate immediately after the inspection has been completed. This procedure is processed at the same institution as the previous one, for that reason it cannot be a simultaneous one. 9 Request and receive inspection for the compliance certi cate from the 1 day no charge Municipality Agency : Municipality At the end of construction, the principal agent of BuildCo (architect or structural engineer) will apply for the certi cate of compliance at the Municipality. A clearance certi cate signed by the principal agent must be submitted when applying for the certi cate of compliance. The Municipality will then inspect the building although a representative of BuildCo does not need to be present. Since this procedure is processed in a di erent institution as the previous one, it can be a simultaneous one. 10 Obtain compliance certi cate from the Municipality 10 days no charge Agency : Municipality The issuance of the certi cate of compliance will ensure that the building is registered for tax purposes. The ndings of this inspection are then sent to the Evaluation O ce of the Ministry of Finance. This o ce assesses the municipal tax which can take another 10 days. This procedure can only be done once the certi cate is given, for that reason it cannot be a simultaneous one. Receive inspection from the Central Water Authority (CWA) 1 day no charge 11 Agency : Central Water Authority (CWA) The application for a new water connection can now be submitted by email with all the required documents: • ID card / passport • Title deed • A copy of the constitution of the corporate body or societé and the name of the directors/associés authorized to sign on behalf of the corporate body Page 15   • Site plan / location plan done once the certi cate is given, for that reason it cannot be a Doing simultaneous one. Business 2018 Mauritius Receive inspection from the Central Water Authority (CWA) 1 day no charge 11 Agency : Central Water Authority (CWA) The application for a new water connection can now be submitted by email with all the required documents: • ID card / passport • Title deed • A copy of the constitution of the corporate body or societé and the name of the directors/associés authorized to sign on behalf of the corporate body • Site plan / location plan • Front elevation drawing • Existing water supply (if any) • Water requirement (in m3 daily) New applications are processed within one month.Since this procedure is processed in a di erent institution as the previous one, it can be a simultaneous one. 12 Obtain water connection from the Central Water Authority (CWA) 14 days MUR 26,450 Agency : Central Water Authority (CWA) Reception of the water connection. This procedure is processed at the same institution as the previous one, for that reason it cannot be a simultaneous one. 13 Apply for sewage connection with the WasteWater Management 1 day no charge Authority (WMA) Agency : WasteWater Management Authority (WMA) BuildCo applies for a sewage connection with the WasteWater Management Authority (WMA). The following documents must be submitted with the application: • National identity card • Recent CWA bill • Title deed • Building Permit • Sewerage clearance (optional) An acknowledgement receipt, bearing a reference number is issued upon application. This procedure can only be done after the water connection is granted. 14 Receive inspection for project feasibility and awaits project design 14 days no charge Agency : WasteWater Management Authority (WMA) The WasteWater Management Authority (WMA) has now outsourced survey, design and construction works to 5 private companies, one of which will conduct a survey of the lot to verify the feasibility of this project. Once the survey is completed, a report is made and the design process starts. Once this design is completed, the applicant will be noti ed as to when the installation will be completed. 15 Obtain sewage connection from WasteWater Management Authority 18 days MUR 1,750 (WMA) Page 16   installation will be completed. Doing Business 2018 Mauritius 15 Obtain sewage connection from WasteWater Management Authority 18 days MUR 1,750 (WMA) Agency : WasteWater Management Authority (WMA) The sub-contracted company informs WasteWater Management Authority (WMA) of completion of works, and WMA subsequently commissions the connection and completes connection to public sewage system. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Mauritius – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Page 17   Takes place simultaneously with previous procedure. Doing Business 2018 Mauritius Details – Dealing with Construction Permits in Mauritius – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections by 1.0 construction? (0-2) in-house engineer; Unscheduled inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, in-house 2.0 accordance with the approved plans and regulations? (0-2) engineer submits report for nal inspection. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 2.0 Which parties (if any) are held liable by law for structural aws or problems in the Professional in 1.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) charge of the supervision; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover Construction 1.0 possible structural aws or problems in the building once it is in use (Latent Defect company; Liability Insurance or Decennial Insurance)? (0-1) Insurance is commonly taken Page 18   in practice. Construction Doing Business 2018 Mauritius company. Which parties (if any) are required by law to obtain an insurance policy to cover Construction 1.0 possible structural aws or problems in the building once it is in use (Latent Defect company; Liability Insurance or Decennial Insurance)? (0-1) Insurance is commonly taken in practice. Professional certi cations index (0-4) 4.0 What are the quali cation requirements for the professional responsible for verifying Minimum 2.0 that the architectural plans or drawings are in compliance with existing building number of years regulations? (0-2) of experience; University degree in architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the Minimum 2.0 construction on the ground? (0-2) number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure square - Has two stories with a total surface area of approximately 1,300.6 Page 19   (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 architect or engineer. Doing Business 2018 Mauritius Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 20   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Mauritius Standardized Connection Price of electricity (US cents per kWh) 23.1 Name of utility Central Electricity Board (C.E.B.) City Covered Port Louis Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Procedures (number) 4 5.3 4.7 2 (United Arab Emirates) Time (days) 81 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 229.4 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 6 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.29: United Kingdom (Rank: 9) 82.03: Mauritius (Rank: 51) 60.69: Rwanda (Rank: 119) 59.38: Botswana (Rank: 124) 45.91: Regional Average (Sub-Saharan Africa) 21.07: Madagascar (Rank: 184) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Mauritius – Procedure, Time and Cost Time Cost 80 140 70 120 Cost (% of income per capita) 60 100 50 Time (days) 80 40 60 30 40 20 10 Page 21   20 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Mauritius Figure – Getting Electricity in Mauritius – Procedure, Time and Cost Time Cost 80 140 70 120 Cost (% of income per capita) 60 100 50 Time (days) 80 40 60 30 40 20 10 20 0 0 1 2 3 4 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Mauritius and comparator economies – Measure of Quality 9 8 8 7 6 6 Index score 5 4 3 2 0.9 1 0 0 0 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Getting Electricity in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to CEB and await estimate 15 calendar days MUR 36,446.82 Agency : Central Electricity Board (CEB) An application can be submitted in person, by letter, by email, by fax or online. The following documents have to be attached: • location plan • site plan • national identity card or passport nr. of the company's director Page 22   • list of company's directors holding more than 10% of shares Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Doing Business 2018 Mauritius Details – Getting Electricity in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application to CEB and await estimate 15 calendar days MUR 36,446.82 Agency : Central Electricity Board (CEB) An application can be submitted in person, by letter, by email, by fax or online. The following documents have to be attached: • location plan • site plan • national identity card or passport nr. of the company's director • list of company's directors holding more than 10% of shares • building permit • trade license from local authority • title deed of land acquisitioned or lease agreement (need to be notarized) • load details • business regulation number Payment of the estimate is done at the utility. 2 Receive external and visual internal inspection by CEB 7 calendar days MUR 0 Agency : Central Electricity Board (CEB) An external inspection of the site is done by the utility. Someone from the customer's party has to be present. An internal inspection (visual 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 certi cate from the contractor (the wiring certi cate is recommended but not required by law) 3 Have electrical contractor carry out civil works for transformer 30 calendar days MUR 325,000 Agency : Electrical Contractor The client's electrical contractor carries out the civil works for the 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 placing of poles, construction of transformer room. 4 Receive external inspection, external connection works and meter 29 calendar days MUR 423,000 installation by CEB Agency : Central Electricity Board (CEB) An inspector from the utility carries out a routine check to verify compliance of the civil works with details provided by the utility. The utility is in charge of the design of the connection and the physical 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 Page 23   ducts in trenches, construction of concrete pillars, draw pits, supply and Doing placing Businessof poles, 2018 construction Mauritiusof transformer room. 4 Receive external inspection, external connection works and meter 29 calendar days MUR 423,000 installation by CEB Agency : Central Electricity Board (CEB) An inspector from the utility carries out a routine check to verify compliance of the civil works with details provided by the utility. The utility is in charge of the design of the connection and the physical 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 owing from the moment the connection is done. Takes place simultaneously with previous procedure. Details – Getting Electricity in Mauritius – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.6 System average interruption frequency index (SAIFI) 0.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://ceb.intnet.mu / Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. Page 24   Takes place simultaneously with previous procedure. Doing Business 2018 Mauritius Details – Getting Electricity in Mauritius – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 6 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.6 System average interruption frequency index (SAIFI) 0.5 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 0 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages Yes exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://ceb.intnet.mu / Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Page 25   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Mauritius Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value MUR 17,099,885.30 City Covered Port Louis Page 26   Sub-Saharan OECD high Doing Business 2018 Mauritius Standard Property Transfer Property value MUR 17,099,885.30 City Covered Port Louis Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Procedures (number) 5 6.2 4.6 1.00 (4 Economies) Time (days) 17 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 0.6 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 17.0 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.26: Rwanda (Rank: 2) 77.89: Mauritius (Rank: 35) 74.51: United Kingdom (Rank: 47) 65.45: Botswana (Rank: 81) 51.71: Regional Average (Sub-Saharan Africa) 44.63: Madagascar (Rank: 161) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Mauritius – Procedure, Time and Cost Time Cost 0.7 16 0.6 14 Cost (% of property value) 12 0.5 Time (days) 10 0.4 8 0.3 6 0.2 4 0.1 2 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 27   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Mauritius Figure – Registering Property in Mauritius – Procedure, Time and Cost Time Cost 0.7 16 0.6 14 Cost (% of property value) 12 0.5 Time (days) 10 0.4 8 0.3 6 0.2 4 0.1 2 0 0 1 *2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Mauritius and comparator economies – Measure of Quality 30 28.0 24.5 25 20 Index score 17.0 15 10.0 10 8.5 8.6 5 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Registering Property in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 A land surveyor prepares a new survey plan and a situation plan 5 to 7 days to MUR 4000 to MUR Agency : Land Surveyor prepare a new 6000 survey The seller must obtain a situation plan done by a Land Surveyor and apply plan(simultaneous for the PIN (Parcel Identi cation Number). with Procedure 2) 2 Notary checks for encumbrances at the Registrar General 1 day no cost Agency : Registrar General (simultaneous with Procedure 1) 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 pays an annual Page 28   subscription to the Registrar General, which enables him to check the Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Doing Business 2018 Mauritius Details – Registering Property in Mauritius – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 A land surveyor prepares a new survey plan and a situation plan 5 to 7 days to MUR 4000 to MUR Agency : Land Surveyor prepare a new 6000 survey The seller must obtain a situation plan done by a Land Surveyor and apply plan(simultaneous for the PIN (Parcel Identi cation Number). with Procedure 2) 2 Notary checks for encumbrances at the Registrar General 1 day no cost Agency : Registrar General (simultaneous with Procedure 1) 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 pays an annual subscription to the Registrar General, which enables him to check the registers free of charge. He may however pass the cost to 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 Rs24,000 since last budget). 3 A notary prepares and notarizes the deed of sale 4 days Notary’s fees Agency : Notary according to the following cumulative The notary prepares the sale deed. The seller is responsible for giving all the schedule: required documentation to the notary. The deed is signed by the parties and the notary. Notary Fees According to the law (Registration Duty act and Notaries Act), the notary has up to 7 days from date of deed to submit the deed at the Land Registry. Up to MUR 250,000: 2% (minimum MUR 100) From 250,000 to 750,000: 1.5% From 750,000 to 1,750,000: 1% Excess over MUR 1,750,000: 0.5% 4 Obtain certi cate from the Board of Investment that the building will be 3 days No cost used primarily as a warehouse. Agency : Board of Investment A certi cate from the Board of Investment needs to be obtained in order to exempt the transfer from the payment of the Registration Duty. The buyer needs to present evidence to the Board of Investment to prove the building will be used as a warehouse. 5 The notary deposits the signed deed for registration and transcription 4 days MUR 1,000 (stamp Agency : Registrar General duty) 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 Page 29   General’s o ce. needs to present evidence to the Board of Investment to prove the building Doing will as a warehouse. be used 2018 Business Mauritius 5 The notary deposits the signed deed for registration and transcription 4 days MUR 1,000 (stamp Agency : Registrar General duty) 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 o ce. It is now also possible to submit documents, pay fees and receive the registered deed online through the eRegistry system which was launched on 30 June, 2015. Once stamp duty is paid, the Conservator of Mortgages will enter the transaction in the book and will give a Transcription Number (TN) to the 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 previous procedure. Details – Registering Property in Mauritius – Measure of Quality Answer Score Quality of the land administration index (0-30) 17.0 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? Registrar General Department (RGD) In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Cadastre Unit, Ministry of Housing and Lands In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 Page 30   Takes place simultaneously with previous procedure. Doing Business 2018 Mauritius Details – Registering Property in Mauritius – Measure of Quality Answer Score Quality of the land administration index (0-30) 17.0 Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? Registrar General Department (RGD) In what format are the majority of title or deed records kept in the largest business city Computer/Fully 2.0 —in a paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for checking for encumbrances (liens, mortgages, Yes 1.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Cadastre Unit, Ministry of Housing and Lands In what format are the majority of maps of land plots kept in the largest business city— Computer/Scann 1.0 in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 4.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://registrar. mof.govmu.org/E nglish/legislation s/Pages/default.a spx Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://registrar. mof.govmu.org/E nglish/legislation Page 31   s/Pages/default.a immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Mauritius Link for online access: http://registrar. mof.govmu.org/E nglish/legislation s/Pages/default.a spx Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://registrar. mof.govmu.org/E nglish/servicesre gistrar/Documen ts/time%20frame %20for%20regist ration.pdf Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: http://registrar. mof.govmu.org/E nglish/Pages/def ault.aspx Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the o cial fee Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://housing.g ovmu.org/Englis h/DeptOrg/Docu ments/Cadastre/ schpin1.pdf Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://housing.g ovmu.org/Englis h/DeptOrg/Divisi ons/Pages/Land- Information- System-Unit.aspx Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred at the cadastral or mapping agency? Contact information: Page 32   Geographic coverage index (0–8) 2.0 Is there a speci c and separate mechanism for ling complaints about a problem that Yes 0.5 occurred Doing at the cadastral Business or mapping agency? 2018 Mauritius Contact information: Geographic coverage index (0–8) 2.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Notary. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a Supreme Court property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy Page 33   laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Mauritius Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Strength of legal rights index (0-12) 6 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Page 34   Credit registry coverage (% of adults) 86.1 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Mauritius Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Strength of legal rights index (0-12) 6 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 86.1 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Rwanda (Rank: 6) 75.00: United Kingdom (Rank: 29) 65.00: Mauritius (Rank: 55) 55.00: Botswana (Rank: 77) 40.73: Regional Average (Sub-Saharan Africa) 35.00: Madagascar (Rank: 133) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Mauritius and comparator economies 12 10 10 8 Index score 7 6 6 5 5.1 4 2 2 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Legal Rights in Mauritius Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 35   Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Doing Business 2018 Mauritius Details – Legal Rights in Mauritius Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically Yes and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Mauritius and comparator economies 10 8 8 8 7 Index score 6 6 5 4 3.0 2 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Credit Information in Mauritius Page 36   0 Mauritius Doing Business 2018 Botswana Mauritius Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Credit Information in Mauritius Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No Yes 1 Are both positive and negative credit data distributed? No Yes 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No Yes 1 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No Yes 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No Yes 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No Yes 1 Can banks and financial institutions access borrowers’ credit information online (for example, No Yes 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 722,403 Number of firms 0 51,494 Total 0 773,897 Percentage of adult population 0.0 86.1 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 37   transactions; Available legal remedies (damages, Percentage of adult population 0.0 86.1 Doing Business 2018 Mauritius Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 7.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 4.0 6.4 Page 38   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Mauritius Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 7.7 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 75.00: United Kingdom (Rank: 10) 73.33: Rwanda (Rank: 16) 66.67: Mauritius (Rank: 33) 56.67: Botswana (Rank: 76) 51.67: Madagascar (Rank: 96) 43.72: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Mauritius and comparator economies – Measure of Quality Mauritius 7 8 6 3 7 9 Botswana 7 8 7 3 6 3 Madagascar 4 6 7 5 4 5 Rwanda 7 9 7 8 8 5 United Kingdom 8 7 10 5 7 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 50 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Mauritius – Measure of Quality Answer Score Page 39   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Mauritius Details – Protecting Minority Investors in Mauritius – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 7.7 Extent of disclosure index (0-10) 6 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 2.0 the transaction and on the con ict of interest Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 8 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if unfair or 2.0 caused to Buyer? (0-2) prejudicial Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by Yes 1.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 9 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Page 40   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Mauritius Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without Yes 1.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5.7 Extent of shareholder rights index (0-10) 7 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require Yes 1.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 3 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising No 0.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Page 41   Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% Yes 1.0 of Buyer? Doing Business 2018 Mauritius Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 7 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? No 0.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? No 0.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with Page 42   post ling processes. Information is also compiled on frequency of ling Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Mauritius Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Payments (number per year) 8 37.2 10.9 3 (Hong Kong SAR, China) Page 43   return, but within the tax assessment period. Doing Business 2018 Mauritius Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Payments (number per year) 8 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 152 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 21.9 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 87.65 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.85: Mauritius (Rank: 10) 86.70: United Kingdom (Rank: 23) 84.60: Rwanda (Rank: 31) 80.01: Botswana (Rank: 47) 62.70: Madagascar (Rank: 131) 57.49: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Mauritius and comparator economies – Measure of Quality 100 87.65 90 82.70 80 71.00 70 63.68 Index score 60 54.39 50 40 30 21.84 20 10 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Paying Taxes in Mauritius Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Page 44   Corporate income tax 1 online 36 15% taxable profit 10.35 Doing Business 2018 Mauritius Figure – Paying Taxes in Mauritius and comparator economies – Measure of Quality 100 87.65 90 82.70 80 71.00 70 63.68 Index score 60 54.39 50 40 30 21.84 20 10 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Paying Taxes in Mauritius Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate Notes contribution (number) Payments (hours) tax rate Tax base (% of profit) on TTR Corporate income tax 1 online 36 15% taxable profit 10.35 Employer paid - Contributions 1 online 48 6% gross salaries 4.37 to National Pension Fund (NPF) Property transfer tax 1 5% sale price 3.03 Employer paid - Contributions 0 online 2.5% gross salaries 1.82 to National Savings Fund and (NSF) jointly Employer paid - Training tax 0 online 1.5% gross salaries 1.69 and jointly Council tax 1 MUR fixed fee 0.62 100,000 Road tax 1 various 0.06 rates Stamp duty 1 MUR 15 number of 0.00 small per page pages of amount contract Value added tax 1 online 68 15% value added 0.00 not included Employee paid - Contributions 0 jointly 3% gross salaries 0.00 withheld to National Pension Fund (NPF) Corporate social 0 jointly 2% chargeable 0.00 responsibility tax income of preceding year fuel tax 1 retail fuel price 0.00 Page 45   small to National Pension Fund (NPF) Business 2018 Doing Mauritius Corporate social 0 jointly 2% chargeable 0.00 responsibility tax income of preceding year fuel tax 1 retail fuel price 0.00 small amount Totals 8 152 21.9 Details – Paying Taxes in Mauritius – Tax by Type Taxes by type Answer Profit tax (% of profit) 10.4 Labor tax and contributions (% of profit) 7.9 Other taxes (% of profit) 3.7 Details – Paying Taxes in Mauritius – Measure of Quality Answer Score Post ling index (0-100) 87.65 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 7.0 86 Time to obtain a VAT refund (weeks) 19.2 69.18 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 4.0 95.41 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. Page 46   The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named Doing Business corporate 2018 income tax Mauritius in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Page 47   Relevant government agencies include customs, port authorities, road a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Mauritius Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 48   of agriculture or industry, national security agencies and any other Doing Business 2018 Mauritius government authorities. Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Time to export: Border compliance (hours) 38 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 303 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 9 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 128 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 41 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 372 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 9 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 166 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.76: United Kingdom (Rank: 28) 86.65: Botswana (Rank: 50) 79.90: Mauritius (Rank: 70) 72.44: Rwanda (Rank: 87) 60.95: Madagascar (Rank: 134) 52.56: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Mauritius – Time and Cost Time Cost 45 41 372 400 40 38 350 303 35 300 30 Time (hours) Cost (USD) 250 25 166 200 20 128 150 15 9 9 100 10 5 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 49   Doing Business 2018 Mauritius Figure – Trading across Borders in Mauritius – Time and Cost Time Cost 45 41 372 400 40 38 350 303 35 300 30 Time (hours) Cost (USD) 250 25 166 200 20 128 150 15 9 9 100 10 5 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Mauritius Characteristics Export Import Product HS 61 : Articles of apparel and clothing accessories, HS 8708: Parts and accessories of knitted or crocheted motor vehicles Trade partner United Kingdom Japan Border Port Louis port Port Louis port Distance (km) 5 5 Domestic transport time 2 2 (hours) Domestic transport cost 196 196 (USD) Details – Trading across Borders in Mauritius – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 28.0 90.6 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 38.0 212.0 Import: Clearance and inspections required by customs authorities 24.0 115.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 38.0 256.5 Details – Trading across Borders in Mauritius – Trade Documents Export Import Page 50   (USD) Doing Business 2018 Mauritius Details – Trading across Borders in Mauritius – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 28.0 90.6 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 38.0 212.0 Import: Clearance and inspections required by customs authorities 24.0 115.6 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 38.0 256.5 Details – Trading across Borders in Mauritius – Trade Documents Export Import Bill of lading Bill of lading Commercial invoice Cargo release order Custom Export Declaration Commercial invoice Packing list Customs import declaration EUR 1 - Certificate of origin Packing list SOLAS certificate SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) Page 51   - The seller sues the buyer before the court with jurisdiction over SOLAS certificate SOLAS certificate Doing Business 2018 Mauritius Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value MUR 633,306.00 Court name Supreme Court of Mauritius, Commercial Division City Covered Port Louis Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Time (days) 519 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 25.0 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 12.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 68.69: United Kingdom (Rank: 31) 58.62: Rwanda (Rank: 85) Page 52   of judicial processes Quality Business Doing index (0-18) 2018 Mauritius 12.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 69.58: Mauritius (Rank: 27) 68.69: United Kingdom (Rank: 31) 58.62: Rwanda (Rank: 85) 49.99: Botswana (Rank: 133) 48.14: Regional Average (Sub-Saharan Africa) 42.85: Madagascar (Rank: 158) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Mauritius – Time and Cost Time Cost 1000 82.7 90 871 80 Cost (% of claim value) 800 70 660 656.8 577.8 60 Time (days) 600 519 44.0 45.7 50 39.8 437 33.6 40 400 25.0 30 21.5 230 200 20 10 0 0 Botswana Madagascar Mauritius OECD high income Rwanda Sub-Saharan Africa United Kingdom Figure – Enforcing Contracts in Mauritius and comparator economies – Measure of Quality Mauritius 2.5 2 3 5 Botswana 2 2.5 0 2.5 Madagascar 2.5 0 2.5 Rwanda 2.5 4.5 4 3 United Kingdom 2 5 3.5 4.5 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 Page 53   16 0 0 Botswana Madagascar Mauritius OECD high income Rwanda Sub-Saharan Africa United Kingdom Doing Business 2018 Mauritius Figure – Enforcing Contracts in Mauritius and comparator economies – Measure of Quality Mauritius 2.5 2 3 5 Botswana 2 2.5 0 2.5 Madagascar 2.5 0 2.5 Rwanda 2.5 4.5 4 3 United Kingdom 2 5 3.5 4.5 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Mauritius Indicator Time (days) 519 Filing and service 15 Trial and judgment 325 Enforcement of judgment 179 Cost (% of claim value) 25.0 Attorney fees 22 Court fees 2 Enforcement fees 1 Quality of judicial processes index (0-18) 12.5 Court structure and proceedings (-1-5) 5.0 Case management (0-6) 2.0 Court automation (0-4) 3.0 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Mauritius – Measure of Quality Page 54   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Mauritius Details – Enforcing Contracts in Mauritius – Measure of Quality Answer Score Quality of judicial processes index (0-18) 12.5 Court structure and proceedings (-1-5) 5.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, automatic 1.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 2.0 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? No 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the No 0.0 competent court? 5. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court Yes 1.0 for use by lawyers? Court automation (0-4) 3.0 1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 55   1. Can the initial complaint be led electronically through a dedicated platform within Yes 1.0 Businesscourt? the competent Doing 2018 Mauritius 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 56   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Mauritius Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Recovery rate (cents on the dollar) 67.4 20.3 71.2 93.1 (Norway) Time (years) 1.7 2.9 1.7 0.4 (Ireland) Page 57   Cost (% of estate) 14.5 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Mauritius Sub-Saharan OECD high Indicator Mauritius Africa income Overall Best Performer Recovery rate (cents on the dollar) 67.4 20.3 71.2 93.1 (Norway) Time (years) 1.7 2.9 1.7 0.4 (Ireland) Cost (% of estate) 14.5 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 10.5 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Mauritius and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 80.24: United Kingdom (Rank: 14) 69.06: Mauritius (Rank: 36) 47.79: Rwanda (Rank: 78) 47.76: Botswana (Rank: 79) 34.24: Madagascar (Rank: 133) 30.28: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Mauritius – Time and Cost Time Cost 3.5 35 3.0 29.0 2.9 3 30 2.5 2.5 22.7 25 Cost (% of estate) Time (years) 2 1.7 18.0 1.7 1.7 20 14.5 1.5 15 9.1 1.0 1 8.5 10 6.0 0.5 5 0 0 Botswana Madagascar Mauritius OECD high income Rwanda Sub-Saharan Africa United Kingdom Figure – Resolving Insolvency in Mauritius and comparator economies – Measure of Quality Mauritius 4 3 3 0.5 Page 58   Botswana 1 3 0 0 0 Botswana Madagascar Mauritius OECD high income Rwanda Sub-Saharan Africa United Kingdom Doing Business 2018 Mauritius Figure – Resolving Insolvency in Mauritius and comparator economies – Measure of Quality Mauritius 4 3 3 0.5 Botswana 1 3 0 Madagascar 5.5 2 1 0.5 Rwanda 6 3 3 0 United Kingdom 5 3 2 1 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Mauritius and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 90 85.2 80 67.4 65.5 70 60 50 40 30 19.1 20.3 20 11.4 10 0 Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Details – Resolving Insolvency in Mauritius Indicator Answer Explanation Proceeding receivership BizBank has a floating charge on all assets of Mirage, in addition to the hotel itself as security for the loan. BizBank, in its capacity of chargee, can appoint a receiver if the charge document allows it to do so, or alternatively, make an application for the court to appoint a receiver over the assets of Mirage (Sections 185 and 186 of the Insolvency Act). Under section 204 of the Insolvency Act, BizBank, as secured creditor, will be reimbursed after payment of receiver's fees. The receiver has the power, as per section 190 of the Insolvency Act, to sell the hotel and reimburse Bizbank after reimbursing the receiver's fees (section 204 of the Insolvency Act). It is worth noting that liquidation is not in the interest of BizBank because it will take longer to recoup the amount due by Mirage. In addition, in liquidation, the provisions of the Fourth Schedule of the Insolvency Act would apply, whereby the creditors would be paid according to their rank. BizBank would be paid 5th. Outcome going concern Page 59   According to the Eighth Schedule of the Insolvency Act (section 1), further to the recovery of Mauritius Botswana Madagascar Rwanda United Kingdom Sub-Saharan Africa Doing Business 2018 Mauritius Details – Resolving Insolvency in Mauritius Indicator Answer Explanation Proceeding receivership BizBank has a floating charge on all assets of Mirage, in addition to the hotel itself as security for the loan. BizBank, in its capacity of chargee, can appoint a receiver if the charge document allows it to do so, or alternatively, make an application for the court to appoint a receiver over the assets of Mirage (Sections 185 and 186 of the Insolvency Act). Under section 204 of the Insolvency Act, BizBank, as secured creditor, will be reimbursed after payment of receiver's fees. The receiver has the power, as per section 190 of the Insolvency Act, to sell the hotel and reimburse Bizbank after reimbursing the receiver's fees (section 204 of the Insolvency Act). It is worth noting that liquidation is not in the interest of BizBank because it will take longer to recoup the amount due by Mirage. In addition, in liquidation, the provisions of the Fourth Schedule of the Insolvency Act would apply, whereby the creditors would be paid according to their rank. BizBank would be paid 5th. Outcome going concern According to the Eighth Schedule of the Insolvency Act (section 1), further to the recovery of the hotel by the receiver, the latter may sell the asset in order to reimburse Bizbank and the buyer will be able to continue operating the business. Time (in years) 1.7 According to our estimations, it takes 20 months to complete the receivership procedure in Port Louis. The main steps are as follows: (i) The receiver will communicate its appointment through the press 7 days after its appointment and inform the regulators; (ii) The directors are required to submit to the receiver the statement of accounts of Mirage 14 days after the notice by the receiver. Within 28 days after receipt of the above statement of accounts, the receiver will submit a copy of the statement of accounts to the Director of the Insolvency Service; (iii) The receiver prepares its first report 2 months after its appointment. Then, it will submit the report to the regulator; (iv) Within 2 months after his appointment, the receiver prepares his report on the state of affairs with respect to the property in receivership; (v) Every 6 months, the receiver will prepare a further report after the first report stating the revenues and payments as well as other steps undertaken during the period; (vi) The receiver will find a buyer and negotiate the sale. It must also agree with the buyer to take over the employees; (vii) The sale of the business as a going concern will take place; (viii) At the end of the receivership, the receiver shall notify in writing to the regulator and the Director of the Insolvency Service that the receivership has ceased, not later than 10 working days after the receivership ceases. Cost (% of 14.5 According to our estimations, the receivership procedure will cost 4,247,000 MUR (15% of the estate) value of Mirage´s estate). Major expenses include: fees of lawyers (5%), fees of the receiver (5%), fees of auctioneers, accountants and other professionals (4%), and other costs – notification and publication costs, court fees – (1%). Recovery rate (cents on the 67.4 dollar) Details – Resolving Insolvency in Mauritius – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 10.5 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both Page 60   liquidation and dollar) Doing Business 2018 Mauritius Details – Resolving Insolvency in Mauritius – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 10.5 Commencement of proceedings index (0-3) 3.0 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (a) Yes, a creditor 1.0 may le for both liquidation and reorganization What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit Yes 1.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 Page 61   Creditor Doing participation Business 2018 index (0-4) Mauritius 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial Yes 1.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to Yes 1.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 62   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Mauritius Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Mauritius Answer Hiring Page 63   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Mauritius Details – Labor Market Regulation in Mauritius Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) 24.0 Maximum length of xed-term contracts, including renewals (months) 24.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 236.8 Ratio of minimum wage to value added per worker 0.2 Maximum length of probationary period (months) n.a. Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 17.0 Paid annual leave for a worker with 5 years of tenure (working days) 17.0 Paid annual leave for a worker with 10 years of tenure (working days) 17.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 17.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 64   Third-party Doing approval Business 2018 if nine workers are dismissed? Mauritius No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? Yes Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 13.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 65.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 130.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 69.3 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 98.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 6.0 Business Reforms in Mauritius In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Mauritius implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Mauritius made starting a business easier by exempting trade fees for licenses below MUR 5,000 and introducing the electronic certi cate of incorporation. Dealing with Construction Permits: Mauritius made dealing with construction permits faster by outsourcing the design and construction of sewerage connection works. Registering Property: Mauritius made it easier to transfer property by eliminating the transfer tax and registration duty, implementing a complaint mechanism and publishing service standards. Page 65   Trading across Borders: Mauritius made trading across borders easier by improving the Cargo Community System, introducing Minimum contribution period for unemployment protection (months)? 6.0 Doing Business 2018 Mauritius Business Reforms in Mauritius In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Mauritius implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Starting a Business: Mauritius made starting a business easier by exempting trade fees for licenses below MUR 5,000 and introducing the electronic certi cate of incorporation. Dealing with Construction Permits: Mauritius made dealing with construction permits faster by outsourcing the design and construction of sewerage connection works. Registering Property: Mauritius made it easier to transfer property by eliminating the transfer tax and registration duty, implementing a complaint mechanism and publishing service standards. Trading across Borders: Mauritius made trading across borders easier by improving the Cargo Community System, introducing advanced electronic document submission and updating the risk-based inspection system. DB2017 Registering Property: Mauritius made registering property easier by digitizing its land records. DB2016 Dealing with Construction Permits: In Mauritius the time required for dealing with construction permits was reduced by the hiring of a more e cient subcontractor to establish sewerage connections. DB2015 Starting a Business: Mauritius made starting a business easier by reducing trade license fees. Enforcing Contracts: Mauritius made enforcing contracts easier by introducing an electronic ling system for court users. Labor Market Regulation: Mauritius reduced the maximum duration of xed-term contracts. DB2014 Getting Credit: Mauritius improved access to credit information by expanding the scope of credit information and increasing the coverage of the historical data distributed from 2 years to 3. Enforcing Contracts: Mauritius made enforcing contracts easier by liberalizing the profession of court ushers, including by allowing registered ushers to serve as baili s in carrying out enforcement proceedings. Resolving Insolvency: Mauritius made resolving insolvency easier by introducing guidelines for out-of-court restructuring and standardizing the process of registration, suspension and removal of insolvency practitioners. DB2013 Registering Property: Mauritius made property transfers faster by implementing an electronic information management system at the Registrar-General’s Department. Getting Credit: Mauritius improved access to credit information by starting to collect payment information from retailers and beginning to distribute both positive and negative information. DB2011 Paying Taxes: Mauritius introduced a new corporate social responsibility tax. Enforcing Contracts: Mauritius speeded up the resolution of commercial disputes by recruiting more judges and adding more courtrooms. Page 66   Paying Taxes: Mauritius introduced a new corporate social responsibility tax. Doing Business Enforcing 2018 Contracts: Mauritius Mauritius speeded up the resolution of commercial disputes by recruiting more judges and adding more courtrooms. DB2010 Registering Property: Mauritius made registering property easier by setting a statutory time limit of 15 days for issuance of the nal property title by the land registry. Getting Credit: Mauritius improved access to credit information by allowing the licensing of private credit information bureaus and by expanding the coverage of the Mauritius Credit Information Bureau to all institutions o ering credit facilities. Trading across Borders: Mauritius reduced the time for trading across borders by introducing electronic submission for customs declarations and bills of lading with no requirement for physical copies. Enforcing Contracts: Mauritius made enforcing contracts easier by setting up a specialized commercial division in its supreme court. Resolving Insolvency: Mauritius enhanced its insolvency system through a new law introducing a rehabilitation procedure for companies as an alternative to winding up, de ning the rights and obligations of creditors and debtors and setting out sanctions for those who abuse the system. Labor Market Regulation: Mauritius increased mandatory paid annual leave, eliminated the requirement to seek prior approval for redundancy dismissals and reduced redundancy costs. DB2009 Starting a Business: Mauritius made starting a business easier by further simplifying the registration process, including through online facilities, and streamlining formalities. Registering Property: Mauritius made transferring property easier by abolishing 2 procedures previously required—obtaining a clearance certi cate from the Waste Water Authority and obtaining a tax clearance certi cate for municipal taxes. Getting Credit: Mauritius’s public credit registry eliminated the minimum threshold for credits that must be reported to its database—and now captures information on all credits extended by the nancial system. DB2008 Starting a Business: Mauritius made business start-up faster by implementing a centralized database linking the company registry with tax, social security and local authorities. Dealing with Construction Permits: Mauritius made dealing with construction permits easier by combining procedures for getting a development permit and building permit and by setting an o cial time limit for processing the dual permit application. Registering Property: Mauritius made registering property less costly by reducing the property registration fee. Paying Taxes: Mauritius made paying taxes less costly for companies by reducing the corporate income tax rate. Trading across Borders: Mauritius made trading across borders easier by implementing a new computerized risk management system for customs inspections. Resolving Insolvency: Mauritius enhanced its insolvency process through legislation making the process of sale of immovable property after default on a credit agreement more e cient and less susceptible to abuse by creditors. Page 67   Resolving Insolvency: Mauritius enhanced its insolvency process through legislation making the process of sale of immovable property after default Doing Business on a credit 2018 agreement more e cient and less susceptible to abuse by creditors. Mauritius Page 68