Top 10 challenges of doing business in Mauritius

Mauritius is one of the most developed countries in Africa thanks to its free-market policies and its attractive tax regime, but doing business can be a challenge without having local help on board.

With one of the highest GDP in Africa, Mauritius is an economic fortress nestled in a flourishing continent. Built on liberal economic principles, the country is recognized as a favorable investment destination in the global business scene, ranking first in most African indices, such as the Mo Ibrahim African Governance Index and The Wall Street Journal & The Heritage Foundation Index. of economic freedom.

Manufacturing is the dominant sector in Mauritius, and with a large, young and well-educated workforce, companies find that the island's economy is an ideal base for expansion. Successive governments have improved the attractiveness of Mauritius as an investment destination, and now it is seen globally as a solid, diversified economy driven by innovation that leads to business growth.

But despite the many calls to expand or settle in Mauritius, the complex fiscal, legal and regulatory environment can be difficult to navigate without the help of local staff.

To start a business

If you are in Mauritius or a Mauritian/Investor planning on how to start a business in Mauritius and which business to start profitable business opportunities in Mauritius you can start with little capital

Newly formed companies are required to register and enter the business before searching for a company name online. Once this procedure has been completed, a license fee and registration with the Social Security The office is also required. 

Construction Permit Management

Due to environmental considerations, the application for building permits can be a lengthy process. There are several government authorities that must be consulted, most of which must conduct inspections before any work can begin. Once all relevant departments have been contacted, the Ministry of Local Government will issue an occupancy permit.

Get electricity

Electrical connections are made by Central Electricity Board (CEB), which performs internal and external internal inspections, as well as routine inspections of civil works and the installation of the meter. The CEB does not carry out civil works, which must be performed by an electrical contractor.

Property registration

A notary is required when registering the property and the surveyor is also needed to prepare new building plans. Once the sale is completed, a signed deed can be deposited for registration and transcription, ending the registration of the property.

Get credit and protect investors

Although there is no coverage of a private office, Mauricio is well placed in all other indices tracked by the World Bank and the International Finance Corporation (IFC) to facilitate credit. It also works well in all areas in terms of investor protection.

Paying taxes

Tax rates are very competitive in Mauritius, although they can be quite heavy. Seven payments must be made each year, which takes an average of 161 hours for the company to appear. The contributions paid by the employer to the National Pension Fund (NPF) are among the aspects that require more time, as well as the corporate income tax (fixed rate of 15%) and VAT, which is charged at the same level.

Cross-border trade

As an island economy, international trade is a crucial component of the business procedure.

The cost of exporting and importing goods is very cheap, although the goods may take some time to cross borders.

Reinforcement contracts

It takes more than two years to enforce contracts and requires 36 procedures to navigate. The presentation and the service can take almost a month to complete before the long judicial process can begin.

Resolving insolvencies

Solving insolvency is a similar process, which takes 1.7 years to complete. The recovery rate is also quite low, although it is higher than in other economies in sub-Saharan Africa.