Cost Of Doing Business Accounting Essay

Mauritius is a little island located in the Indian Ocean with a population of 1.3 million. The Island was inhabited until the Dutch came to colonise the island, unsuccessfully, in the seventeenth century. In 1710, the Gallic took ownership of the island in 1715 and ruled for the following hundred old ages conveying Malgash and other African people from the continent. As a consequence of France-Britain conflicts, Mauritius was colonized by Britain in 1810 and a big figure of Indians were brought to the island as labor at sugar and tea plantations. With a changeless inflow of Chinese workers get downing in the early twentieth century, Mauritius became a multiethnic society where the bulk was Hindu followed by Creole, Muslim, and Chinese. Ethnic and cultural diverseness has become a cardinal characteristic and plus of Mauritius to this day of the month, where every citizen speaks English and French every bit good as their native linguistic communication. Mauritius became independent in 1968 and has enjoyed comparative political stableness since so.

At the clip of independency, the economic system was dominated by sugar plantation which exported natural sugar to Europe. In the 1980s, Mauritius initiated economic development with steady advancement in structural transmutation. With its per capita GNI making US $ 8,240 in 2011 ( World Bank ) , by now the state is regarded as one of the most successful economic systems in Africa and extensively studied as theoretical account instances. Mauritius is besides ranked high in footings of investing clime, fight, clime and administration. For back-to-back old ages, the state has been ranked top in Africa in the World Bank ‘s Ease of Doing Business Report2. The World Economic Forum ‘s Global Competitiveness Index ranked Mauritius at 54 out of 133 states in 2011-12, behind lone South Africa in the Africa Region. The state scored the highest in the 2011 Ibrahim Index of African Governance.

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Over the past 15 old ages, Mauritius has emerged as a alone investing finish and as a great topographic point to make concern. The state enjoys a vivacious economic system, stable democracy and high life criterions. Since independency in 1968, it has determinedly moved from a little agricultural economic system to a dynamic secondary sector ( textile and touristry ) , to the services sector through Global Business activities and recently Business.

The fundamental law of the state, which is based on the British parliamentary democracy, establishes a rigorous separation of powers between the three weaponries of authorities – the Legislative, the Executive and the Judiciary. The President of the Republic, who is elected by the National Assembly, is the Head of State. Executive power remainders with the Prime Minister and a cabinet of around 20 Curates. The National Assembly is the supreme legislative organic structure. The chief beginnings of jurisprudence in Mauritius are the Constitution, the legislative acts ( including ordinances ) , the Criminal Code, the Civil Code, the Commercial Code, the Code of Civil Procedure, instance jurisprudence, and international pacts. Independence of the bench is guaranteed by the Constitution. The Supreme Court, which is the highest judicial authorization, is a superior tribunal of record and the chief tribunal of civil and condemnable legal power. The Constitution has maintained the right of entreaty against concluding judgements of the Supreme Court to the Judicial Committee of the Privy Council of UK, as Mauritius remains a member of the Commonwealth.

For any individual whether local or aliens both have some cost to pay to the Mauritanian authorities for making concern in the district of Mauritius whatever is the concern activities but legal one.


Malagasy republic

Malagasy republic, besides known as the Great Island or the Red Island, is located in the Indian Ocean about four 100 kilometers ( 400km ) off the Eastern seashores of the chief continent Africa, and is the 4th largest Island in the universe. Madagascar has an estimated population of 18 million people of African, Arab and Asian Origin. It is home to many African/Asian cultural groups, including: Malayo-Indonesian ( Merina and related Betsileo ) , Cotiers ( assorted African, Malayo-Indonesian, and Arab ancestry – Betsimisaraka, Tsimihety, Antaisaka, Sakalava ) , Gallic, Indian, Creole, and Comoran. There are two chief official linguistic communications: Malagasy and French. English has been late introduced as the 3rd official linguistic communication. The state besides claims several little islands including the Gallic ownerships of Juan de Nova Island, Europa Island, the Glorioso Islands, Tromelin Island, and Bassas da India. The capital and largest metropolis is Antananarivo.

The Economy and Business of Madagascar are centred on mineral resources. The market is ruled by diamonds. Other than diamond, the chief mineral resources are coal, bauxite, black lead, salt, industrial beryl, zircon, garnets and chromate. Vanilla, java, sugar, fabric besides have a good export market. About 50 % of the population of Madagascar lives below poorness line. The lowest rate of merchandise ingestion is 10 % :3 % and the highest rate is 10 % :29 % . In Madagascar the rising prices rate is 7.5 % . 7.3 million Labor force is at work. The budget of Madagascar shows that the outgo of the state is $ 1.079 billion while the grosss it earns are $ 783.7 million.

Agricultural merchandises like java, sugar cane, vanilla, cloves, rice, chocolate, beans, bananas, peanuts etc contribute to the Economy of Madagascar to a great extent. Economy of Madagascar earns net income from industries like meat processing, soap, breweries, tanneries, sugar, fabrics, glasswork, cement, paper, crude oil, car assembly works and touristry. The growing rate of the industrial merchandise of the state is 3 %

Madagascar has healthy concern dealingss with its neighbouring states. The foreign trade is little but effectual. Madagascar does concern with France, Italy, Japan, and United States. International bureaus every bit good as European Union provide aid to Madagascar. The unit of money in Madagascar is the Malagasy franc. Madagascar is one of the few states in the universe that does n’t utilize a denary currency ( the merely other state is Mauritania ) . The Malagasy currency uses a base 5 system ( 1 ariary = 5 Malagasy francs ) .

Cost of making concern

The Cost of Making Business Study has been a procedure of placing the dealing costs involved in puting up an endeavor in any peculiar state in the universe. Costss determine investing determination and location determines sustainability. Failure to cipher precise costs for the concern entity can turn potentially healthy investing chances into, for all purposes and intents, non-feasible. Traping down costs should be a sky-high precedence for every concern. Having a system that accurately and faithfully captures cost information is a demand, non merely for BOI but for investors.

The Cost-of-Doing-Business Index indicates each province ‘s comparative advantages or disadvantages in pulling and retaining concerns. Those provinces with a low cost of making concern have, on norm, greater occupation growing than those with high costs. The cost of making concern steps and paths alterations in 11 countries in the life rhythm of a concern: get downing a concern, covering with building licenses, acquiring electricity, registering belongings, acquiring recognition, protecting investors, paying revenue enhancements, trading across boundary lines, implementing contracts, deciding insolvency and using workers.

Company Incorporation


Any individual who wishes to integrate a company in Mauritius is required by jurisprudence to reserve a company name prior to incorporation or to reserve a name for a company ; an “ Application for Reservation of a Company Name ” must be completed and lodged with the Registrar of Companies who is responsible for the blessing and reserve of names. A new and more sophisticated concern environment is being put frontward in Mauritius through the Business Facilitation Act. It allows concerns to get down operations on the footing of self-adherence to comprehensive and clear guidelines. It besides aims at easing entry of foreign investors, every bit good as pulling foreign endowments, know-how, thoughts and engineering.

Business in Mauritius can be conducted as:

Exclusive bargainer

Commercial Partnership – Societe under the Code de Commerce

Company under Companies Act

Concerted society


Harmonizing to the processs of get downing up a concern in Mauritius ( Appendix 1 ) , it usually takes 1 to 15 yearss for integrating a company. The following are the costs incurred in the formation of a company.

Fee collectible


Matters in regard of which a fee shall be collectible

Within the due day of the month


In the instance of a little private company –

( a ) at the clip of its incorporation ; and

( B ) in regard of every subsequent twelvemonth

Rs 2,100

Rs 2,000


In the instance of a company keeping a Class 2 Global Business Licence

( a ) at the clip of its incorporation ; and

( B ) in regard of every subsequent twelvemonth

US $ 65

US $ 65


In the instance of a foreign company –

( a ) at the clip of its enrollment ; and

( B ) in regard of every subsequent twelvemonth

Rs 9,100

Rs 9,000


In the instance of a company

( a ) recorded by the Registrar as being a hibernating company ;

( B ) in regard of every subsequent twelvemonth.

Rs 2,000

Rs 2,000


In the instance of a public company –

( a ) at the clip of its incorporation ; and

( B ) in regard of every subsequent twelvemonth

Rs 9,100

Rs 9,000


In the instance of any other company –

( a ) at the clip of its incorporation ; and

( B ) in regard of every subsequent twelvemonth

Rs 2,000

Rs 6,000

Where a commercial partnership is formed, the title of formation of which are deposited with the Registrar of Companies, the undermentioned fees are collectible:

In the instance of a commercial partnership ( societe commerciale including societe commerciale de fait )

( a ) at the clip of its enrollment ; and

( B ) in regard of every subsequent twelvemonth

Rs 6,000

Rs 6,000

As per Business Registration Act 2002, every person transporting on a concern activity in Mauritius is required to register with the Registrar of Companies at the Companies Division.

Registration fees depend on the work force of the concern. Companies are exempt from the payment of enrollment fees. The Business Registration Card must be renewed every 3 old ages.

Number of employees

Amount ( Rs )

Not more than 10 individuals


Between 11 and 50 individuals


Between 51 and 100 individuals


Above 100 individuals


Furthermore, every person transporting a concern is required to pay a fee to the local authorization ( municipal or territory council ) where it is located, within 15 yearss of start-up.

Malagasy republic

Normally for any state there are some processs that should be taken into consideration before gap or get downing a concern. The processs, clip and costs are as follows:

The processs to lawfully get down and run a company are:

Pre-registration ( for illustration, name, confirmation or reserve )

Registration in the economic system ‘s largest concern metropolis

Post enrollment ( for illustration, societal security enrollment )

Time required to finish each process ( calendar yearss )

Does non include clip exhausted assemblage information

Each process starts on a separate twenty-four hours

Procedure completed one time concluding papers is received

No anterior contact with functionaries

Cost required to finish each process ( % of income per capita )

Official costs merely, no payoff

No professional fees unless services required by jurisprudence

Paid-in minimal capital ( % of income per capita )

Deposited in a bank or with a notary before enrollment ( or within 3 months )

The followers are associated costs for puting a concern:



Time to finish

Cost to finish

Registration Requirements:

Deposit registered statuts and use for licence ( carte professionnelle ) ,

and statistical designations


MGA 88,899


The k-bis, statistical card, revenue enhancement enrollment verification, commercial enrollment figure, and

professional card ( carte professionelle ) can be obtained in approximately 2 yearss. It takes on mean 4 to 8 yearss to acquire registered with the EDBM.

Fee agenda:

– Commercial enrollment fee: MGA 15,500.

– Institut National de la Statistique Malgache ( INSTAT ) : MGA 20,000.

– K-bis: MGA 2,000.

– Deed enrollment costs: MGA 9,100

– enrollment fees: 0.5 % of the start-up capital

– rental enrollment: 2 % of the rental

B )

File a notice of fundamental law to be published in a day-to-day newspaper in



MGA 15,000


The fee to print a notice of fundamental law in a day-to-day newspaper varies between MGA 10,000 and

MGA 20,000.

Comparing between Mauritius and Madagascar

Malagasy republic


Get downing a Business information








Procedure ( figure )




Time ( yearss )




Cost ( % per capita )




Minimal Capital ( % per capita )




Start-up processs are those needed to get down a concern, including interactions to obtain necessary licenses and licences and to finish all letterings, confirmations, and presentments to get down operations. The value for Start-up processs to register a concern ( figure ) in Mauritius was 5.00 as of 2010 and 2011 whereas for Madagascar it has increased from 2010 to 2011 as it can be noted from the tabular array above.

Time required to get down a concern is the figure of calendar yearss needed to finish the processs to lawfully run a concern. It can be noted from the above tabular array that clip required to get down a concern in Mauritius in the same for 2010 and 2011 that is it takes around 6 yearss whereas for Madagascar is takes about 7 yearss which is 1 twenty-four hours excess than that in Mauritius.

The cost to register a concern is calculated by showing it as a per centum of gross national income ( GNI ) per capita. The cost of concern start-up processs in Madagascar has increased from 6.2 to 12.9 while in Mauritius it has reduced from 4.1 to 3.8. During these past 2 old ages at that place was no reform that Mauritius made in order to do get downing a concern more easier.



A company is resident in Mauritius if it is incorporated and has its cardinal direction and control in Mauritius. Broadly similar standards apply to find whether societes, trusts and other entities are resident in Mauritius. Nonaˆ?residents are capable to income revenue enhancement on income derived from beginnings in Mauritius. As from 2010, the financial twelvemonth or income twelvemonth in Mauritius runs from 01 January to 31 December.

Value Added Tax ( VAT )

Value Added Tax ( VAT ) is a revenue enhancement on goods and services. It is indictable on all nonexempt supplies of goods and services made in Mauritius by a nonexempt individual in the class or promotion of any concern carried on by him. VAT is besides collectible on the importing of goods into Mauritius, irrespective of whether the importer is a nonexempt individual or non.

The rate of VAT is 15 % .

A individual in concern becomes a nonexempt individual every bit shortly as turnover of his nonexempt supplies exceeds Rs 2 million or is engaged in concern specified in the Tenth Schedule of the VAT Act. It includes:



Ad Agent,


undertaking director,

Notary Public

VAT returns

Businesss with one-year nonexempt turnover of Rs 10 million or more have to subject monthly VAT returns and settle any VAT liability within 20 yearss of the terminal of the month. Businesss, with an one-year nonexempt turnover below Rs 10 million, submit quarterly returns and settle any VAT liability within 20 yearss of the terminal of the relevant one-fourth. Companies runing as polyclinics or supplying health care services, registered under the Investment Promotion Act, are exempted from VAT on the building of edifices to be used for supplying wellness services.

Zeroaˆ?rated and exempt supplies

The VAT Act sets out a long list of supplies which are either zeroaˆ?rated or exempt. Included, among zeroaˆ?rated supplies, are export of goods and services and services provided by Management Companies in the Global Business Sector. Exempt supplies include basic groceries, educational and preparation services and pharmaceuticals.

Income revenue enhancement rates

Companies, Trusts, Trustees of Unit Trust Schemes and Nonaˆ?Resident ‘Societes ‘ ( partnerships ) , are apt to revenue enhancement at the rate of 15 % .

Manufacturing companies are allowed to claim 25 % investing allowance on investings in stateaˆ?ofaˆ?theaˆ?art technological equipment.

Companies keeping an Investing Certificate ( ICT Scheme ) as at 30 September 2006 will pay revenue enhancement at a rate between 0 % and 15 % .

GBC1 are taxed at a maximal effectual rate of 3 % while GBC 2 ‘s are non apt to revenue enhancement in Mauritius. Freeport Operators and Private Freeport Developers, depending on the nature of their activities and the day of the month they were awarded a license, will pay revenue enhancement between 0 % and 15 % until 30 June 2011. Thereafter, such companies will be apt to revenue enhancement at the rate of 15 % .

Where a company owns a residential belongings, the company is required to pay the National Residential Property Tax ( NRPT ) harmonizing to the prescribed rates. A rate of Rs 10 per M2 for single abodes and Rs 30 per M2 for flat is applicable.

Income from concern and rental income

Persons deducing income from a concern activity or rental income are required to subject returns in regard of their indictable income and pay income revenue enhancement accruing thereon to the MRA on a quarterly footing during the income twelvemonth. The returns cover the quarters ended 30 September, 31 December and 31 March and any revenue enhancement due must be settled within three months of the terminal of the several quarters. The taxpayer must besides subject an one-year income revenue enhancement return covering the financial twelvemonth ended 30 June by 30 September and settle any farther revenue enhancement due ( if any ) at that clip.

Alternative Minimum Tax ( AMT )

Where the normal revenue enhancement payable for an income twelvemonth by a company is less than 7.5 % of its book net income, the company should pay either 7.5 % of its book net income or 10 % of dividends declared in regard of that twelvemonth, whichever is lesser.





Late entry of return

A punishment of Rs 2,000 per month or portion of the month up to a upper limit of Rs 20,000.

Late entry of return

Late payment of revenue enhancement

A punishment of 5 % of the sum of revenue enhancement excepting any punishment and involvement at the rate of 1 % per month or portion of the month during which the revenue enhancement remains unpaid.

Late payment of revenue enhancement

Malagasy republic

Malagasy republic revenue enhancement twelvemonth is normally the calendar twelvemonth that is either stoping 31 December or 30 June, although taxpayers who carry on a concern may elect a different revenue enhancement twelvemonth. A company by and large is deemed resident if it is incorporated or chiefly managed in Madagascar.

Resident companies are nonexempt on their domestic and foreign-source income. Non-residents are taxed merely on Madagascar beginning income.

Value-added tax

The VAT was introduced on August 1, 1994 by auxiliary budget No.94 019. This revenue enhancement replaced former gross revenues revenue enhancement, viz. Tax on dealing.VAT is mandatory for companies ( legal entities ) and persons with an one-year turnover sole of revenue enhancement higher than MGA 200 million. Companies ( legal entities ) and persons with one-year turnover, sole of revenue enhancement, of less than MGA 200 million may choose to be apt to VAT. The rate of VAT in Madagascar is 20 % . VAT returns are due on a monthly footing.

Persons, corporations and associations are apt for VAT if they realize:

1. a concern activity

2. domestic minutess

3. and an one-year turnover more than 250 million FMG

The undermentioned goods and services are non capable to the VAT:

1 ) Medicines, medical services and equipment, natural stuffs for doing medical specialties ;

2 ) Unprocessed or preliminarily processed merchandises of agribusiness and farm animal ;

3 ) Importing, gross revenues, printing of newspapers, magazines ;

4 ) Gross saless of books, copybooks, pens, particular bulletin etc ;

5 ) Supply of recreational athleticss services ;

6 ) Public services ;

7 ) Fees paid for instruction services at any degree

8 ) Life insurance ;

9 ) Electricity and H2O for domestic usage up to 80Kwh and10 m3 severally

Tax rates

There are merely 2 revenue enhancement rates:

aˆ? 0 % which is merely applied on exports

aˆ? 20 % ( normal rate ) applied on other goods and services.

Initially the revenue enhancement rate was 25 % . However, since 1996, it was reduced to 20 per centum due to the strong ailment of taxpayers ‘ association and politicians. Taxpayer is required to register returns monthly or quarterly, depending on the degree of the one-year turnover. So the taxpayers, who have an one-year turnover equal or more than 1 billion FMG are obliged to register revenue enhancement returns every month ; evidently the remainder must register them quarterly. This revenue enhancement is levied through the self-assessment system where taxpayers are required to cipher by themselves their revenue enhancement liability. Filing returns and payments must be done at the latest by the 20th of the month following the revenue enhancement period by agencies of the notice of revenue enhancement payment issued by the revenue enhancement office. The jurisprudence stipulates that in instance where taxpayers do non hold a revenue enhancement liability to pay, that is the end product revenue enhancement peers to input revenue enhancement or for other grounds, they are required to register returns, viz. “ Bordereau de state of affairs ” during the same period.

All companies are required to register an one-year revenue enhancement return, with the filing day of the month depending on the fiscal twelvemonth terminal of the company. Companies with a December year-end must register a return before 15 May the undermentioned twelvemonth and, if the taxpayer ‘s terminals on 30 June, filing must be made before 15 November of the same twelvemonth. Companies with a different year-end must register a return within 4 months.

Corporate income revenue enhancement rate

It is by and large taxed on all grosss realized by all companies in Madagascar either domestic or foreign companies except those which lawfully benefit the exoneration. Apart from the ordinary companies, the associations, partnership, group of individuals, public or private constitutions endowed with a legal entity or non fall within the range of the jurisprudence. Precisely, the term “ gross realized in Madagascar ” means all gross of companies holding a caput office in Madagascar. Corporate income revenue enhancement rate in Madagascar is 23 % .

Domestic and foreign companies are obliged to register returns before 1st of May of the undermentioned twelvemonth if the accounting period coincides with a calendar twelvemonth, before 1st of October if the accounting period closes on 30th of June. Payment of revenue enhancement must be made at the clip of filling of return. In instance of failure to register right returns within the needed day of the month, the taxpayers are punishable by all right 10 per centum for the 1st month of hold, and 5 per centum for each undermentioned months.

The undermentioned types of gross are exempted from corporate income revenue enhancement:

aˆ? Revenue realized by spiritual association, cultural association lawfully existed ;

aˆ? Revenue realized by nonprofit organisation taking entirely at advancing the little and moderate-sized companies ( PME: Petites et Moyennes Entreprises ) ;

aˆ? Interest paid by the Savings Bank ( Caisse d’Epargne de Madagascar ) .

Tax on edifices

Tax on edifices is levied on rental value of edifices and of immobile equipment. Tax officer through the declaration submitted yearly assesses the revenue enhancement liability. Buildings owned by authorities, local governments, public establishments, and charities are exempt. Certain revenue enhancement privileges are besides stipulated in the internal revenue enhancement gross ; so the new edifices are exempt for 5 old ages, from the day of the month of completion.

Tax rates on Buildings Owner-occupied



3 to 6 per centum


5 to 10 per centum

Land revenue enhancement

Land revenue enhancement is levied yearly on estimated productive value of land based on type of harvest usage. Land owned by authorities, local governments, public establishments, land used for wellness, and instruction or societal intent is for good exempt from revenue enhancement.

Tax rate

Ratess basically vary harmonizing to land usage ( per hectare ) :

a ) FMG 50-300 for croping land ;

B ) FMG500-1000 for industrial plantations ;

degree Celsius ) 1 per centum of intrinsic value for land in nonagricultural usage ;

vitamin D ) FMG400-800 for forests, woods, lakes, and swamps ;

Comparing Mauritius and Madagascar

Malagasy republic


Paying Taxes informations







Entire revenue enhancement rate ( % net income )




Payments ( figure per twelvemonth )




Time ( hours per twelvemonth )




Tax payments by concerns are the entire figure of revenue enhancements paid by concerns, including electronic filing. The revenue enhancement is counted as paid once a twelvemonth even if payments are more frequent. The Tax payments ( figure ) in Madagascar was reported at 23 in 2010 and 2011 compared to Mauritius whose revenue enhancement payments was 7.00 both in 2010 and 2011.It is well lower than that of Madagascar.

The Time to fix and pay revenue enhancements ( hours ) in Madagascar was at 201 and 161 in Mauritius as it can be noted form the tabular array above. Time to fix and pay revenue enhancements is the clip, in hours per twelvemonth, it takes to fix, file, and pay ( or withhold ) three major types of revenue enhancements: the corporate income revenue enhancement, the value added or gross revenues revenue enhancement, and labour revenue enhancements, including paysheet revenue enhancements and societal security parts. Mauritius is more efficiency compared to Madagascar.

Entire revenue enhancement rate is the entire sum of revenue enhancements collectible by concerns ( except for labour revenue enhancements ) after accounting for tax write-offs and freedoms as a per centum of net income. The Entire revenue enhancement rate ( % of net income ) in Madagascar has decreased from 39.2 to 37.7 whereas in Mauritius it has increased from 24.1 to 22.9. In 2011 Mauritius has introduced a new corporate societal duty revenue enhancement while Madagascar continued to cut down corporate revenue enhancement rates.



Building and Land Use Permit

As of October 1, 2006, every individual who intends to either start building work or do extended changes, add-ons or fixs to an bing edifice or transport out land development activities must use to the local authorization for a edifice and land-use license ( BLP ) . This is a individual license that replaces both the development license and the edifice license. Every application for a edifice and land-use license must in conformity with commissariats of the Building Act, the Town and Country Planning Act, and the Planning and Development Act of 2004.

All programs must be signed by the draftsman for edifices of less than 250 sq. m. in floor country and must include the name and reference. For edifices of 250 sq. m. or more in floor country, all programs are to be signed by a registered professional designer, including the designer ‘s name, reference, VAT enrollment figure, and enrollment figure with the Professional Architects Council. The application signifier can be obtained from the Planning Department of any local authorization, Small Enterprises and Handicraft Development Authority ( SEHDA ) , the Board of Investment, or the Ministry of Local Government, or it can be downloaded from assorted Web sites. When the application is in conformity with the act and guidelines, the development and edifice licenses should, under the Chief Executive authorization, be issued within 2 hebdomads of the effectual day of the month of reception of the application. The processing fee for application for Building and Land Use Permit is Rs 500.

The undermentioned paperss are needed along with the application

– Transcript of the rubric title. – Transcript of the rental and be aftering clearance from the Ministry of Housing and Lands ( for province land ) . – Consent of proprietor and transcript of the proprietor ‘s national individuality card. – Transcript of the national individuality card of the applier. – Three sets of programs, consisting site and location programs, layout, lifts, and subdivisions. – Public presentment by manner of home base show and notice in two day-to-day newspapers ( for development within residential zones ) . – Consent of neighbors ( non required in this instance because it is industrial ) . Consent is required if the distance between the new edifice and neighbouring buildings is less than 1 metre for one-story edifices and 1.5 metres for two-story edifices.

Fees for issue of Building and Land Use Permit


Change of usage from one bunch to another bunch


Change of usage within same bunch ( where a Business and Land Use Permit is required )


Construction of edifice or portion of edifice, including extension to/ or transition of bing edifice –

a ) of a floor country of non more than 250 M2

B ) of a floor country of more than 250 M2s but non more than 500 M2

degree Celsius ) of a floor country of more than 500 M2

10/ M2 ( capable to a minimal fee of Rs 500 )

20/ M2

50/ M2

Development by little endeavor registered with the Small Enterprises and Handicraft Development Authority established under the Small Enterprises and Handicraft Development Authority Act 2005


Technology or other operations in, on, over and under the land ( including stone prey, golf class, marina )


Excision/subdivision of land among inheritors


Extensive changes, add-ons or fixs to an bing edifice


Land Conversion Permit

Where a land is classified as agricultural land and that land shall be used for non-agricultural intents, a land license is required. A land transition revenue enhancement at the undermentioned rates is paid except for the part of land where a golf class shall be developed:

Area of land converted

Ratess of land transition revenue enhancement ( Rs / hour angle ) Class 1

Ratess of land transition revenue enhancement ( Rs / hour angle ) Class 2

Less than 0.25 hectare



0.25 hectare but less than 0.50 hectare



0.50 hectare but less than 1.00 hectare



1.00 hectare but less than 5.00 hectares



5.00 hectares and above



Occupation Licenses

An business, which is a combination of a work and abode license, allows an eligible investor, freelance or professional to, in a more expeditious mode, work and unrecorded in Mauritius.

The eligibility standards are as follows:


The proposed concern activity should bring forth an one-year turnover transcending MUR 4 million + initial investing of $ 100,000.


The basic monthly wage of a professional under a contract of employment should transcend MUR 75,000


The one-year income fro the proposed concern activity should transcend MUR 600,000 + initial investing of $ 35,000.

Occupation Permit Fees


Investor and Self-employed ( cogency of license 3 year )

Rs.10, 000


Contract of 2 old ages or less

Contract of more than 2 old ages and less than or 3 old ages

Rs.6, 000.

Rs. 10,000.

Work Licenses

An employer based in Mauritius should use for a work license in regard of an exile who will be employed to make a specific occupation for the employer on a full-time footing. Work licenses are issued by the employment division of the Ministry of Labour, Industrial Relations and Employment and at the same clip a Residence Permit is to be sought by the applier.

The Work Permit fees are as follows:

Fees collectible on enlisting of foreign labor:

Application fees of Rs 500 for each single application

Work Permit fee in the EPZ sector: Rs 1,000 for first five old ages and Rs 10,000 thereafter

Bank warrant stand foring cost of return air ticket to state of beginning in regard of each exile.



Bet oning

Bet oning or other similar activity

50,000 per twelvemonth

Horse Rushing

Jockeies siting Equus caballuss in preparation work and in races

15,000 per term or any portion thereof

Jockeies siting Equus caballuss in developing work in races for a 2nd or subsequent racing season

30,000 per term or any portion thereof

Stipendiary Stewards employed for a first and 2nd racing season

50,000 per rushing season or any portion thereof

Stipendiary Stewards employed for a 3rd or

subsequent racing season

100,000 per rushing season or any portion thereof

Professional Entertainers

Professional entertainers for public presentation in group or in solo

Manufacturing Industry

Employment in any fabrication industry


Hotels and Restaurants

Employment in any hotel or eating house


Employment by any building house or contractor who has been awarded a contract by the NHDC for the building of lodging units for the lower income group


Information and Communication Technology


Any other employment

Malagasy republic

Acquire belongings enrollment certifications

Acquire belongings enrollment certification

Time to finish: 30 yearss

Cost to finish: MGA 2,000

Agency: Land Administration Department ( Service des Domaines )

Remark: BuildCo must obtain two transcripts of all the belongings enrollment paperss. This process normally takes a month. It might take 3 months if the necessary book is losing from the register, but this is non the regulation.

Obtain official topographical program of the secret plan

Time to finish: 7 yearss

Cost to finish: MGA 6,000

Agency: Topographical services ( Service Topographique )

Remark: Two transcripts of the official topographical program for the belongings with co-ordinates are needed. The cost of each transcript varies between MGA 5,000 and MGA 7,500.

Acquire batch program with municipal seal

Time to finish: 7 yearss

Cost to finish: no charge

Agency: City services at Anosipatrana ( Bureau de la Commune a Anosipatrana )

Remark: The paperss needed are completed layout signifiers with the Commune ‘s seal.

Obtain preliminary blessing from the urban municipality

Time to finish: 1 twenty-four hours

Cost to finish: no charge

Agency: Commune of Antananarivo ( Commune D’Antananarivo )

Obtain a edifice license a edifice license

Time to finish: 90 yearss

Cost to finish: MGA 1,170,540

Agency: Commune of Antananarivo ( Commune D’Antananarivo )

Remark: After blessing by the Urban Commune of Antananarivo, the file is forwarded to the undermentioned services: – Agency of the Commune at Anosipatrana ( 15 yearss ) . – Municipal Bureau of Sanitation ( Bureau Municipal d’Hygiene, BMH ) ( 15 yearss ) . – SPAT ( 2 months ) . After SPAT has checked the information in the file with the land proprietor ( see Procedure 7 ) , it issues its blessing of the file, so prepares the file for send oning to the Directorate of Land Development ( at the Ministerial Commission ) ( 15 yearss ) . Two months subsequently, SPATissues the edifice license to BuildCo. The cost is calculated based on the volume of the edifice before SPAT gives its sentiment. The cost can change from MGA 1,000 to MGA 2,000 per three-dimensional metre.

Obtain an tenancy certification

Time to finish: 7 yearss

Cost to finish: no charge

Agency: Commission

Comparing Madagascar and Mauritius

The clip taken to obtain a license varies about 130 to 136 yearss in Mauritius. There are around 16 processs that need to be taken into consideration for any individual who intends to either start building work or do extended changes, add-ons or fixs to an bing edifice. While in Madagascar the clip taken to obtain a license takes about 178 yearss, 42 yearss extra than that of Mauritius with the same figure of processs that is 16.

During these past few old ages at that place has been a changeless lessening in the cost ( % of income per capita ) from 35.5 to 32.3 in Mauritius while in Madagascar there has been an increased from 1298 to 1250. No reform was brought in this sector neither in Mauritius or Madagascar in the twelvemonth 2010 and 2011.

There are assorted factors that affect the economic system of Madagascar that discouraged investors or house to get down concern in the economic system like political instability, corruptness, and hapless direction and trade Torahs. Mauritius is classified as an economic system with safe and stable legal power and political stableness and supply tonss of inducements for house to get down concern.

Property Registration


Guaranting formal belongings rights is cardinal. Effective disposal of land is portion of that. If formal belongings transportation is excessively dearly-won or complicated, formal rubrics might travel informal once more. And where belongings is informal or ill administered, it has small opportunity of being accepted as collateral for loans-limiting entree to finance.

Notary cheques for burdens at the Registrar General

The notary public consults the registry of written texts and the list of workss which are waiting for written text in order to determine the rubric of the marketer, the position of burdens, charges, liens, etc. The notary wages an one-year subscription to the Registrar General, which enables him to look into the registries free of charge. He may nevertheless go through the cost to the client as portion of the fees charged for the whole dealing. ( Note: The one-year fee paid by the notary to the Registrar General is Rs12,000 since last budget ) .

Time to finish: 2 yearss ( coincident with processs 2 )

Cost to finish: no cost

A land surveyor prepares a new study program and a state of affairs program

The marketer must obtain a state of affairs program done by a Land Surveyor.

Time to finish: 4-8 yearss ( coincident with processs 1 )

Cost to finish:

A notary prepares and notarizes the title of sale

The notary prepares the sale title. The marketer is responsible for giving all the needed certification to the notary. The title is signed by the parties and the notary. Harmonizing to the jurisprudence ( Registration Duty act and Notaries Act ) , the notary has up to 7 yearss from day of the month of title to subject the title at the Land Registry

Time to finish: 4 yearss

Cost to finish: Notary ‘s fees harmonizing to the undermentioned cumulative agenda: Value of belongings ( in MUR ) Notary Fees up to MUR 250,000 2 % ( minimal MUR 50 )

The notary deposits the signed title for enrollment and written text

The notary will present the signed title + one transcript of the title to the Registrar-General for enrollment. The notary will pay the enrollment fee, the cast responsibility and the transportation revenue enhancement on behalf of the marketer when using for enrollment at the Registrar General ‘s office. As of January 2011 the transportation revenue enhancement is as follows: 5 % of the belongings value if the marketer has owned the belongings for more than 5 old ages and 10 % of the belongings value if the marketer has owned the belongings for less than 5 old ages. The Seller must now pay a Capital Gains revenue enhancement if the net income from the sale is Rs 2,000,000 or more. The cast responsibility sums MUR 1000. The enrollment fee is equal to 5 % of the belongings value. Once payment is made, the Land Registry will come in this dealing in the book and will give a Transcription Number ( TN ) to the notary. Once this TN figure is available at the land register, the belongings is apposable to 3rd parties. The notary will so publish the aˆ•Copie authentiqueaˆ- to the purchaser. The Finance Bill Act 2008 set up a statutory clip of 15 yearss for the Registrar to finish the written text and give a Transcription Number ( TN ) to the notary ( Section 37 of written text and Mortgage Act amended by the Finance Bill Act 2008 ) . After the TN has been issued, the Land register will verify and re-assess the dealing through internal procedures. The original title is available for pick-up by the notaries in 15 yearss. The notary will maintain the papers for 40 old ages and so convey it to the Chief Archivist, National Archives Department for safe maintaining. If this hold is non respected, there is a punishment of 50 % to be paid.

Time to finish: 11 yearss

Cost to finish: 5 % of belongings value ( reassign revenue enhancement ) =5 % of belongings value ( registration fee ) +MUR1000

Malagasy republic

Request two transcripts of the certification of enrollment and the legal state of affairs of the land at the Registrar of the Property Registry

This certification is an infusion from the belongings register books and must hold been obtained in the past three months maximal. It gives the state of affairs of the ( yesteryear ) enrollments on the Registry books and indicates the individuality of the owner of the land who has registered his rights to it. It besides indicates any burdens on the land.

Time to finish

Cost to finish

7 yearss ( coincident with Procedures 1 and 3 )

MGA 2,000 ( MGA 1,000 per transcript )

Request two topographical infusions with co-ordinates at the ‘Service de la Topographie ‘

These co-ordinates allow the marker of the belongings and are expressed in aˆ-x ‘ and aˆ-y ‘ . This program is to be signed by both parties and is annexed to the petition for mandate of the existent estate dealing. This infusion can besides be traced by a pledged surveyor to specify the portion of the land to be ceded, in instance the dealing does non yield the belongings in its entireness. The cost and clip noted here are for a simple program, intended for a transportation whereby the purchaser is non be aftering on doing alterations or buildings to the belongings. For more complex utilizations of the belongings, a more elaborate program would hold to be drawn, bing between MGA 5000 and 15000, depending on whether a authorities or private surveyor was used.

Time to finish

Cost to finish

5 yearss ( coincident with Procedures 2 and 3 )

MGA 1,000 per program

Request mandate to carry on a existent estate dealing at the Ministry of Urban Planning ( Ministere de l’Urbanisme )

This petition is for an administrative papers that indicates, by manner of a study on the urban program, if the belongings is located in specific zones and if it has districting issues or burdens. It is necessary to attach the certification of the legal state of affairs ( less than 3 months old ) and 5 transcripts of the program. Merely the Director of the Urban Planning Department is authorized to O.K. the file. Sometimes, if the Director is off, this can do holds.

Time to finish

Cost to finish

3 yearss ( coincident with Procedures 1 and 2 )

no cost

Notary bill of exchange and notarise the sale understanding

In 2007, Madagascar adopted a new jurisprudence: “ Loi 2007.026 du 12/12/2007 portant statut du notariat a Madagascar ” . This jurisprudence, published in the Official gazette N° 3181 on April 14th, 2008, makes it compulsory to utilize the services of a notary for all belongings dealing for a value above 15 000 000 MGA. It is no longer required to the signatures of both parties to be legalized at the Municipality by either the Mayor or an authorised employee. Notary fees are assessed as follows, per l’arrete nA°30286/2011 of October 17, 2011: aˆ? 3 % on the first 20,000,000 MGA of the belongings value aˆ? 2.5 % on the following 20,000,000 MGA of the belongings value aˆ? 1 % on any part of the belongings value beyond 40,000,000 MGA

Time to finish

Cost to finish

2 – 7 yearss

Notary fees are assessed as follows: 3 % on the first 20,000,000 MGA of the belongings value 2.5 % on the following 20,000,000 MGA of the belongings value 1 % on any part of the belongings value beyond 40,000,000 MGA

Registration of sale understanding at the Office of Property Registry

This measure is a financial Procedure, in visible radiation of paying the enrollment fees on the belongings and the revenue enhancement on the grasp of the belongings. Capital additions revenue enhancement for companies reassigning belongings is no longer applicable harmonizing to the Loi diethylstilbestrols Fundss 2007.

Time to finish

Cost to finish

4 yearss

6 % belongings value for enrollment fees

Request transportation to be recorded in the books at the Registrar of the Property Registry

This is the most of import Procedure in the procedure. The belongings right on a land is non transferred until it has been transcribed onto the books at the Registry. When the notary or the purchaser file for enrollment at the Land register, the “ Duplicata ” must be attached to the sale and purchase understanding punctually notarized. Once the written text is done, the Registrar will give the “ Duplicata ” to the new purchaser with his name written as the new proprietor of the belongings.

Time to finish

Cost to finish

60 yearss

2 % belongings value ( reassign revenue enhancement ) + MGA 15,000 ( fixed fee )

Comparing Mauritius and Madagascar

Malagasy republic







Procedures ( figure )




Time ( yearss )




Cost ( % of belongings value )




Time required to register belongings is the figure of calendar yearss needed for concerns to procure rights to belongings. There is a great fluctuation in the figure of yearss between Mauritius and Madagascar that is in Mauritius it takes around 26 yearss whereas in Madagascar it takes about 74 yearss.

Number of processs to register belongings is the figure of processs required for a concern to procure rights to register. As shown on the tabular array below the figure of processs needed to register belongings is 4 in Mauritius while in Madagascar it ‘s about 6 for both 2010 and 2011.

Historical Data Chart

Cost of electricity


Class of consumer

Average gross revenues monetary value per Kwh


Average gross revenues monetary value per Kwh














The procedure for application to acquire electricity connexion is really easy, at a really low cost and has remained the same for the twelvemonth 2010 and 2011. While making an application, the applier has to do a security sedimentation merely which varies agreement to category of consumer. For Domestic it is between Rs 200 to Rs 1200 because of different duties, for commercial Rs 500 and for industry it is Rs 400. This is the lone cost that appliers have to pay and connexion is done within 1 hebdomad.

The cost per kWh for both commercial and industry usage has increased by merely 7.9 % from 2010 to 2011. This was to merely alter that we have experience in the cost of electricity in Mauritius

Malagasy republic

Jiro sy rano Malagasy is the manufacturer of electricity in Madagascar. The process and cost of electricity are as follows ;

The client applies for electricity connexion and awaits estimation of connexion fees from Jiro sy rano Malagasy ( JIRAMA )

15 calendar yearss

no charge

The client obtains external review by Jiro sy rano Malagasy ( JIRAMA )

1 calendar twenty-four hours

no charge

The client obtains right of manner from the local authorization ( Commune )

50 calendar yearss

MGA 60,000/

RS 816

The client buys the stuff for the external plants from a local shop

18 calendar yearss

no charge

The client obtains proving of stuff and external plants by Jiro sy rano malagasy ( JIRAMA )

19 calendar yearss

MGA 55,748,923/



The client marks a supply contract with, pays an progress on ingestion to, and awaits concluding connexion from JIRAMA

366 calendar yearss

MGA 29,063,035.3/



The above cost and processs was the same for the twelvemonth 2010 and 2011

Current exchange rate Rs 1-MGA 73.5

Comparing Madagascar and Mauritius

Comparing the cost of electricity for Mauritius and Madagascar, it clearly seems that in Mauritius electricity is much cheaper and quicker than that of Madagascar. In Mauritius an industrial consumer has to pay merely the security sedimentation which is Rs 400 to acquire electricity in its premises ( lone external connexion ) . But Madagascar it is wholly different after the application to the Jiro by rano Malagasy ( provider of electricity in Madagascar ) , the applicant must obtain a right of manner from the ‘Commune ‘ before paying the estimation so that the public-service corporation can transport out the external plants of spread outing the operating expense web which cost Rs 816 ( Mauritanian rupees ) , than he/she must pay the connexion fee at the public-service corporation ‘s office which is Rs 758,488 ( Mauritanian rupees ) and the applier once more has to do a concluding wage of Rs 395,415 ( Mauritanian rupees ) when the consumer marks the supply contract with Jiro sy rano Malagasy and this payment is an progress on ingestion. Furthermore the clip which an applier must wait to acquire electricity is 469 yearss in Madagascar while in Mauritius everything things are done within one or two hebdomads. Furthermore, the stuff for a 140-kVA connexion is normally non available in the public-service corporation ‘s stock. The client can so take to either purchase the stuff from a local shop or inquire the public-service corporation to obtain it. Most frequently than non, the client opts to purchase the stuff to salvage clip.

From the above, we can reason than acquiring electricity in Madagascar is really dearly-won in term of money and clip besides as you must wait for 469 yearss as in Mauritius a payment of Rs 400 and you get connected within maximal 2 hebdomads

Cost of H2O


Class of use











Hotels, Guests Houses












Acquired/concessionary prises






Non-treated H2O



For application for H2O domestic appliers do non hold to do security sedimentation. Such industrial and agribusiness appliers have to do a security sedimentation of Rs 500 merely. Other fees are as follows and this has remain the same for the twelvemonth 2010 and 2011

Meter rent

Size of metre ( millimeter )


12 or 18












Greater than 100


Other charges and fees

Type of Service


Connection charge ( basic )


Meter proving


Reconnection at metre


Reconnection on chief


Switching of supply


Switching of metre


Expansion of tapping

Clearance certification ( Residential )


Clearance certification ( Commercial )


Water oiler service ( CWA oiler )


Water oiler ( private oiler )


The cost of H2O per was lessening in Mauritius for all class of use, for the commercial and industrial use the lessening was 0.8 % for both and all other cost have remain unchanged for both old ages.

Malagasy republic

Apply for H2O connexions

1 twenty-four hours

no charge

Receive an review by JIRAMA to fix an estimation

1 twenty-four hours

no charge

Obtain H2O connexions

21 yearss

MGA 1.5 million/

Rs 20,408

The connexion cost has remained the same for both years.If we cost between Mauritius and Madagascar, the connexion fee in Madagascar is 7.2 times more dearly-won comparison to Mauritius. For Mauritius the connexion cost is merely Rs 2750 while for Madagascar it is Rs 20,408.



In Mauritius we have three operators viz. Mauritius telecom, Emtel and Mahanagar Telephone Mauritius Ltd ( MTML ) which provide services on telephone, Mobile and cyberspace.

Fixed Telephone Network suppliers in Mauritius are:

1. Mauritius Telecom ( MT )

2. Mahanagar Telephone Mauritius Ltd ( MTML )

Mobile phone and Internet Network suppliers:

1. Mauritius Telecom ( MT )

2. Mahanagar Telephone Mauritius Ltd ( MTML )

3. Emtel Mauritius Ltd

Merely Mauritius telecom offers these services to concern sector. All cost associated to these services has remained the same for the twelvemonth 2010 and 2011 and the as follows:

Mauritius Telecom

New conventional telephone line

Security sedimentation

Business Rs 2000

Installation Fee

Business Rs 2000

Cost of setup for both residential and concern Rs 1000

Local Call Duty

Monetary value for concerns

1s indivisible minute

Addition second

Monthly Duty





Calls- off extremum hours

( 20h30-06h30 )



International Call

On norm for

1st 30 sec

Per second




Off extremum



Internet –

Business Customers

Tariffs – ADSL PRO and ADSL Business Plans



ADSL Business 256K

ADSL Business 512K

ADSL Business 1M

ADSL Business 2M

Download ( kbps )







Upload ( kbps )







Monthly Rental exc. VAT ( Rs )







Max. indictable sum ( Rs )







Use Allowance







For the twelvemonth 2010 and 2011, all cost have remain unchanged

Malagasy republic

Apply for a telephone line

1 twenty-four hours

no charge

Receive an review by Malagasy Telecom to fix an estimation

1 twenty-four hours

no charge

Obtain a telephone connexion

30 yearss

MGA 100,000/

Roentgen 1360

The connexion cost has remained the same for both old ages.

Comparing the connexion fee of Mauritius and that to Madagascar, from the above we can see that the entire connexion in Madagascar is merely Rs 1360 ( Mauritanian rupees ) while for Mauritius it is a small spot expensive Rs 5000. An application for concern intent, the applicant must pay Rs 2000 each for security sedimentation and for installing fee and Rs 1000 for the setup which is optional the applier can utilize it ain setup.

Business loan in Mauritius and Madagascar

Lending involvement rate %


Lending involvement rate %





Malagasy republic



In Mauritius we have 19 commercial Bankss which provide concern loan installations. On top we have an establishment name Development Bank of Mauritius which provide loan up to 5 million rupees and for big sum funding we have a company name CIM Finance. The mean lending involvement rate in Mauritius for 2010 was 8.92 % and in 2011 it was the same. Contrary to Madagascar the loaning adoption rate for 2010 was 49 % and for 2011 it was 52.50 % . This clearly shows than cost of borrowing in Madagascar is really expensive comparison to Mauritius. Furthermore if we look at the ranking of acquiring recognition for Mauritius and for Madagascar, we will make same decision. For both twelvemonth Mauritius is ranked 89th while Madagascar is ranked 176th.


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