Mauritius Business Facilitation Act 2017
As part of the Mauritian government’s business friendly policies the Business Facilitation (Miscellaneous Provisions) Act 2017 came into effect in May 2017. The Act augments the existing provisions of the earlier Business Facilitation Act 2006 that introduced a number of reforms to simplify and streamline administrative procedures with the aim of boosting business with the removal of government red tape.The legislation was a success and is recognised as being one of the motivating factors has seen Mauritius enjoy sustained growth over the last ten years. With other jurisdictions improving their competitiveness Mauritius has introduced the 2017 Act to maintain its position as a leading international business friendly economy.
The Act seeks to improve the business operating environment for entrepreneurs in seven key areas:
Business Start-Up: companies can be formed and business started in one day, with an online application and the issue of an e-Certificate of Incorporation. Certain fees and requirement to complete registrations have been removed.
Property Registration: by moving to an electronic system, access has been given to notaries who can register deeds in two hours, with public access to summarised deeds. As a further boost to business transactions of warehouses for business use are exempt from both Land Transfer Tax and Registration Duty.
Paying Taxes: a fast track system of VAT refunds has been introduced, less than seven days in certain cases and direct payment of social contributions.
Other areas include resolving insolvency, issuance of construction permits, exit procedures and cross border trade with the simplification of processes to eliminate duplication and ensuring deadlines are respected.
These steps are part of the wider Business Facilitation Programme to automate the issuing of permits and licences and review of the wider regulatory framework, including regulatory impact assessment. It is expected that moving to a web based system of administration will speed applications and remove unnecessary bureaucracy, while maintaining transparency. Rosemont Mauritius can assist you with the completion of the business applications and with process of obtaining the appropriate licences.
For more information about the types of business licences necessary in Mauritius read more here http://www.rosemont.mu/worldwide-location/business-licences-in-mauritius/
Business licences in Mauritius
Business activities in Mauritius are regulated by different authorities and subject to differing licenses:
I. Banking services under the license of the Central Bank of Mauritius "Bank of Mauritius"
II. The non-banking financial sector, under the Financial Services Commission (FSC)
III. Providers of Internet access, under ICTA
IV. The activities of the ‘Port Franc’ under the Board of Investment and Mauritius Revenue Authority
V. Tourism activities under license from the Tourist Authority
The Central Bank of Mauritius "Bank of Mauritius" issues bank licenses, controls and supervises licensees under the Bank of Mauritius Act 2004. The application covers the banking license, the foreign exchange license and the Islamic bank license. On July 21 Bank of Mauritius issued a guide on the application for a private bank license.
The Financial Services Commission classifies license applications by type of activity:
• FS-1 /1 to 13 Financial Services Activity: eg Asset Managers (license FS1.1), Single Family Office (license S.1.12). As an example, to constitute a multi-family office, the current cost of the first year license is USD1,000 (1st family then USD500 per additional family);
• FS-2/3 to11 the activity of specialized financial institutions and services. eg: leasing: the cost of license in first year is USD1,000. The license of Corporate Service Provider (CSP). The CSP license will depend on the type of services provided by the CSP:
1. Services with companies such as Global Business License (costs in the range of depend on the number of entities managed from 1-50 entities , 51-250 entities, 251-500 and 501 plus);
2. Agent of Global Business License 2 the annual tariff again depends on the number of companies formed (1-50, 51-250, 251-500);
3. The services of Trustee
• FS-5 Self-Regulated Organization
• FS-6: Business Banking license
For illustration of the procedures involved, the constitution of a multi-family office requires a business plan including the history on the founder, shareholder, details of the services provided; Details of client families, source of funds, financial projection, internal manual, such as measures taken in the event of conflicts of interest, means for combating money laundering and the fight against terrorism.
The license of ICTA - The Information and Communication Technologies is regulated by the Law of 2001 and the application of license under the Law 2003 allows applicants who wish to operate on the communication and information networks with a right of admission of 2,000 RS . There are several categories including that of the infrastructure network provider. The annual fee is 100,000 RS for the first year and 50,000 RS for the following years. Or the provider of network services allowing international internet traffic services to the public. The annual fee is 2,000,000 RS in the first year and the following years.
The authorities of Mauritius have extremely well structured requests for licenses by typology and by supervisory body. Rosemont Mauritius can accompany you in your requests for licencing.