Business Facilitation Act: E-Licensing:Process re-engineering and regulatory review

A decade ago, Business Facilitation Act 2006 spearheaded a new era of economic progress after major administrative reforms greatly improved the business climate.  The new legislation further opened Mauritius to the world, introduced measures to cut down on paper work and waiting time and also introduced the Silent Agreement Principle in applications processing, whereby, if an applicant does not hear from the authorities, the application is deemed to have been approved.

The second Business Facilitation Act voted in Parliament last week is like a sequel to the first one, further streamlining procedures and cutting down red tapism.  The objective is to give a new impulse to investment by eliminating regulatory and administrative bottlenecks, according to Board of Investment MD, Ken Poonoosamy. “In line with the government’s objective to improve the business environment, the Business Facilitation Act (BFA) is a potent vehicle which addresses seven key areas, namely Starting a Business, Registering Property, Paying Taxes, Resolving Insolvency, Construction Permits, Exit Procedures and Cross Border Trade. The BFA promotes the use of information technology in various areas, such as the issuance of e-certificate of incorporation which allows businesses to start their operations expeditiously. Other improvements relate to the process for registering property and initiatives undertaken to enhance transparency. The Act, coupled with other significant amendments to regulations, facilitates international trade by substantially streamlining the process for import permits, eliminating duplications and ensuring the respect of deadlines,” writes Ken Poonoosamy in his latest newsletter. 

Other measures have been announced that will give a significant boost to the construction sector. These will have ripple effects across other sectors. For instance, the land transfer tax and registration duty are being waived for the transfer of land to construct warehouses or for the transfer of warehouses for business purposes.  Also, where no Building and Land Use Permit (BLUP) and/or regulatory license are required, businesses will be able to start their operations immediately after registration of the business activity with the Corporate and Business Registration Department (part of the Companies Division).

“Improving the business climate is a continuous exercise. Over and above these regulatory reforms, several other administrative processes are being streamlined to enhance service delivery. Our flagship project is the E-licensing Platform which will act as a single point of entry for applications for permits and licenses. Several such initiatives are going ahead. By further strengthening the collaborative approach being adopted by both the public and private sectors, the competitiveness of Mauritius as an investment destination of choice will be enhanced,” concludes Ken Poonoosamy.

Paying taxes

• Businesses will be able to pay their social contributions (NPF, NSF and Training Levy) directly to the Mauritius Revenue Authority
• There is an online Fast Track System for processing VAT refunds
• Since January 2017, all amended corporate tax returns must be submitted through the e-filing system of the MRA
• An Alternative Tax Dispute Resolution has been introduced as a faster way to resolve tax litigation with the MRA

Registering property

• Notaries can register a deed in two hours through the Mauritius eRegistry platform.
• Service standard published by the Registrar General Department to register a deed within two hours
• Notaries and professionals will have online access to the registry of the Registrar General Department
• Notaries will file a summary file of the deed with the Register General Department
• The Registrar General will publish monthly statistics
• Members of the public will have access to a summarized version of deeds
• Notaries will have a maximum of eight days to issue either a certified copy or an authenticated copy of the deed ‘expedition’ from the date of the registration of the deed with the Registrar General and to deposit the deed of erasure with the Conservator of Mortgages.
• Property transactions involving warehouses for business use are exempted from Land Transfer Tax and Registration Duty

Projects requiring an Environmental Impact Assessment

• Proposed outline can be submitted at least one month prior to submission of application
• Within two weeks, the Director of Environment will submit his/her views
• An application for a morcellement permit accompanied with an EIA/PER has been streamlined. The timeframe has been reduced by three weeks

Exit procedures

• The timeframe for stakeholders to object with evidence against the removal of a company from the register has been reduced from six to two weeks. 
• The rates of remuneration payable to receivers will now be regulated
• The Director of Insolvency will now be able to sanction non-compliant insolvency practitioners
• The Insolvency Practitioner will have to report on cases of bankruptcy to keep the CBRD’s register up to date

Pre-market approval has been eliminated for 29 classes of items, except those listed below

• Any novel food
• Baby feed bottle, teat, nipple and baby mug
• Canned food for infant
• Edible fat and oil
• Irradiated food
• Bottled water

Single window portal for import and export applications

• No import permit is required for the following items: Second-hand motor vehicle part and accessories; other used, scrapped and second-hand goods
• No import permit is required for the following items. The Mauritius Standards Bureau will issue an electronic conformity report to MRA Customs:
• Cement
• Tubes and hoses
• Motorcyclists helmets
• Outboard motors (above 15 HP)
• Low pressure, non-adjustable regulators for use with butane and liquefied petroleum gas
• Electric water heaters
• Automatic circuit breakers with residual current devices
• Residual current switches
• Armoured electric cable
• Electric cable insulated with plastic materials
• Pocket lighters, gas fueled, refillable and non-refilable

New procedures for the National Plant Protection Office

• Plant import permit fees have been waived
• Permit issued within five working days
• Risk-based inspection introduced
• Export permit from the Ministry of Industry, Commerce and Consumer Protection are being removed except for six commodities, namely: Wheat or meslin flour, sand, limestone, Portland cement, textile exports to USA and rough diamonds.

Note: The e-licensing platform will be operational as from May 2018.