January 02, 2024
DOING BUSINESS IN MAURITIUS
INTRODUCTION
Mauritius is among the most open, competitive and lowest tax economies in the world. Mauritius has a liberal investment policy. The foreign investor is allowed to invest in any sector of the economy subject to the provisions of the Non- Citizen Property Restriction Act, 1975 which generally restricts non-citizen from acquiring real estate. However, through the Integrated Resort Schemes (“IRS”) and Real Estate Scheme (“RES”), non-citizens can acquire luxury villas/property and gain resident/citizen status in Mauritius subject to conditions.
ADVANTAGES OF DOING BUSINESS IN MAURITIUS
- Mauritius has removed significant foreign investment barriers by lowering taxes, simplifying administrative procedures, keeping interest rates low, investing in education and training and by lowering trade barriers and maintaining the preferential access on the main markets.
- Business activities are allowed to start within 3 working days based on self-adherence to comprehensive guidelines and the authorities may check for compliance by exercising ex-post control.
- One shareholder company is permissible under local laws. Registration of firms, except those dealing in financial services, need to be done only with the one body-the Registrar of Companies.
- For operation in financial services, the approval of Financial Services Commission (“FSC”) and/or the Central Bank, the Bank of Mauritius (“BOM”) is required. The BOM is responsible for the licensing, regulation, and supervision of the banking sector whilst the Financial Services Commission is responsible for the non-banking sector.
MAURITUS COMPANIES
Mauritius different types of companies to meet the needs of both local and international businesses. The main types of companies in Mauritius are as follow:
- Global Business Companies (GBCs)
Global Business Companies are primarily used for international business activities and are regulated by the FSC.
GBC 1 (Global Business Corporation)
- Conducts business internationally but can also operate locally with approval.
- Investment holding, global trading, fund management, and consulting.
GBC 2 (Now Discontinued as of January 2019)
- Previously used for purely international activities and exempted from taxation. It has been replaced by Authorized Companies.
- AUTHORIZED COMPANIES
An Authorized Company in Mauritius is a business entity designed for non-residents to manage operations outside Mauritius. It is often used as a vehicle for offshore activities such as international trading, e-commerce, investment holding, and consultancy services.
- FREEPORT COMPANIES
Operates in Mauritius’ Freeport zones, focusing on international trade, warehousing, and logistics.
- LIMITED PARTNERSHIPS
In Mauritius, a Limited Partnership (’LP’’) is a versatile corporate organization that blends aspects of a corporation and a partnership. Because of its advantages for secrecy and tax efficiency, it is well-liked by venture capital, private equity firms, and investment holdings.
- SOLE PROPRIETORSHIPS
Sole proprietorship is the simplest and most common form of business structure in Mauritius. It is particularly suitable for small-scale entrepreneurs and freelancers who wish to run their business independently.
- NON-PROFIT ORGANIZATION
Mauritius also provides a supportive environment for non-profit organizations (“NPOs”) that contribute to social, cultural, and environmental development.
MAURITIUS’S MAJOR INDUSTRIES
Opportunities are available in Mauritius in a number of sectors are as follows
- Services for Finance: One of the top offshore financial hubs, Mauritius provides investors with international financial and commercial services.
The nation is a desirable location for fund management, private equity, and wealth management due to its open regulatory environment and network of Double Taxation Avoidance Agreement (“DTAAs”). - Travel and Hospitality: Mauritius continues to be a popular tourism destination worldwide because of its immaculate beaches, opulent resorts, and lively culture.
Adventure, medical, and ecotourism all present opportunities. - ICT and Innovation: Investments in technology parks and digital infrastructure are being propelled by the government’s Smart Mauritius Vision.
Mauritius is emerging as a fintech, software development, and IT services powerhouse in the area. - Sustainable Energy: To lessen its dependency on fossil fuels, Mauritius is investing in renewable energy projects, opening prospects in solar, wind, and biomass energy.
- Manufacturing Focused on Exports: The manufacturing sector includes textiles, agro-processing, and high-value-added products.
Export-oriented enterprises benefit from duty-free access to key markets through trade agreements.
HOW WE CAN HELP?
- Our team of experts specialized in assisting businesses with doing business in Mauritius.
- Our team can provide specialized solutions to satisfy business objectives because our team has an abundance of expertise working with foreign companies in Mauritius.
- Our team of professionals will offer advice on various corporate advising services, including portfolio management, asset management, nominee director, nominee shareholder, and other business formation processes.
- Our team can help connect with regional companies, professional organizations, and possible Mauritius partners. This can assist companies in forming beneficial connections and working together to grow their operations.
For more information or queries, please email us at
[email protected]
Key Contact
Surendra Singh Chandrawat
Managing Partner
