Business Facilitation II: New bill in the making

The business climate in Mauritius will see another impulse early next year with the introduction of a new Business Facilitation Act. The new legislation will further streamline administrative procedures and eliminate bottlenecks and red tape that stifle investment in the country. 

Mauritius losing 17 places in the latest Doing Business Survey by the World Bank has prompted the authorities to work out a new Business Facilitation Bill in order to address issues affecting the smooth process of setting up business on the island. The new Bill is likely to be introduced in March 2017. The poor performance of Mauritius in the last Ease of Doing Business report is the direct consequence of lengthy administrative procedures that have remained unchecked over the years. 

Investors and entrepreneurs have always highlighted the negative impact of bureaucracy on investment, business operations, productivity and costs. Red tape also affects common citizens in their day to day interactions with relevant authorities which are often marked by lengthy paper forms. In 2006, the advent of the Business Facilitation Act cleared much of the administrative hurdles that created obstacles to development. A decade later, the investment climate needs another major overhaul to further improve administrative systems and processes. Indeed, new sectors have emerged as well as new niche markets within existing sectors and the administrative system needs to keep pace with the country’s economic evolution.

Improving business facilitation is one of the 10 strategies of the last Budget. Online services are gradually becoming the norm. Two public institutions that are well advanced in online services are the Mauritius Revenue Authority (MRA) and the Companies Division. The MRA offers most of its services online, including filing of annual tax returns. The MRA now allows the public to bid online for the purchase of seized goods.

The Companies Division is also allowing the filing of companies’ annual returns online as well as fees for the incorporation of companies, including the submission of documents on its portal. One major improvement could however be that of linking both systems so that a company needs to make only one combined return simultaneously to both institutions. It is also possible to effect searches on existing companies through the website of the Companies Division. This is a very useful tool as entrepreneurs can thus find out about the shareholders and directors of a company and even its last financial statement, before deciding whether to engage in business transactions with the company. As from January 2017, the payment of Company Licence fees can also be made online.

Respect Economic Forum

The ‘Respect Economic Forum’, an active group on Facebook that consists of economists and young minds of the country, says that many institutions have a wrong notion of ‘online’ services. “An online service must be simple, efficient and cost-effective. Unfortunately, many public services have simply transited the paper system online, without reviewing the procedures and eliminating non-value adding steps. For example, one is required to scan and upload whole lots of documents.” The Respect Economic Forum is engaged in various economic debates which are of interest to businessmen, investors and entrepreneurs. The forum wants to have its say in economic reforms. 

E-Visa

Mauritius wants to issue electronic visas in the future. The Prime Minister recently stated that it is time to adopt new technologies to issue visas online to tourists. The e-visa will thus put an end to the lengthy procedure and is likely to boost tourism. Currently, extending a visa in Mauritius is a hassle as the applicant has to visit the office of the Immigration service and submit a pack of documents. Economist Arvind Nilmadhub says that simplifying the procedure for visa extension application may see a surge in extension of stays, thus resulting in thousands of more nights spent in the country by tourists, thereby boosting revenues. 

Trade Licence

The beginning of a new year is the time when business owners and entrepreneurs need to renew their Trade Licence. Every year, local councils witness long queues of people coming to pay the Trade Fee. The deadline for payment is 31 January and online payment is not yet popular, though some municipal councils do have such facility. However, the online payment process is cumbersome, as the council requires the applicant to first register for online payment, and to register, one must download a form, print, fill and then submit along with required documents. It should be noted that, as from 1st January 2017, all Trade Licences of Rs 5,000 or less will be exempted from payment. However, it is not yet known whether the holders will still have to queue up at their respective councils to obtain the Trade Fee document. 

Decentralisation

Decentralisation of services is now on the agenda, starting with the National Transport Authority (NTA). The NTA is opening sub offices across the island to offer some of its services, so that people do not need to travel to its head office in Port Louis for simple transactions. The NTA is also considering revamping the road tax disc by adopting a QR code format, so that inspection officers and policemen doing routine checks could simply scan the code with their readers. However, economist Arvind Nilmadhub argues that the best initiative would have been to simply abolish the road tax and incorporate it in the price of fuel, thus saving on administrative costs as well. 

Expert Skills Scheme

An Expert Skills Scheme will be set up to comlement the human resource capabilities of Ministries/Departments and public bodies, and facilitate the enlistment of the services of experts and specialised professionals for the timely design, implementation and operationalisation of public sector policies, projects and schemes. Under the Scheme, experts and professionals from the private sector may be invited to bring their contribution to policy formulation. 

The PIN

In 2011, a ‘Parcel Identification Number’ (PIN) was introduced. This is basically a unique number allotted to each plot of land in Mauritius. The authorities will soon proclaim section 22(5)(a) and (b) of the Cadastral Survey Act 2011 to allow for the smooth transition to the new land survey framework and the establishment and maintenance of a Digital Cadastral Database. Regulations will also be promulgated for the use of Parcel Identification Number (PIN) in deeds of sale. The Registration Duty (Site Plan) Regulations 1991 would be repealed.