Mauritius - Next global destination for your business
The Mauritius government, particularly the Ministry of Investment, Trade and Industry, has established a number of business-friendly laws to attract entrepreneurs to start enterprises or relocate existing operations.
Mauritius Economy
Real GDP growth rose to an estimated 8.7% in 2022, up from 3.4% in 2021, spurred by sustained policy support and the lifting of travel restrictions and buoyed by recovery in the tourism sector.
Foreign Direct Investments
Foreign Direct Investment in Mauritius averaged 16927.38 MUR Million from 2007 until 2022, reaching an all time high of 27658.00 MUR Million in 2022 and a record low of 8793.00 MUR Million in 2009.
Opportunity Mapping
Mauritius offers incredible business opportunities in a variety of sectors, including agro industries, logistics and distribution services, manufacturing and light engineering, seafood and aquaculture, IT & BPO, financial services.
India in Mauritius
India has close, longstanding relations with Mauritius, an island nation in the Western Indian Ocean, owing to historic, demographic and cultural reasons. A key reason for the special ties is the fact that Indian origin people comprise nearly 70% of the island’s population of 1.2 million (28% Creole, 3% Sino-Mauritian, 1% Franco-Mauritian). More than 68% of the Mauritian population are of Indian origin, most commonly known as Indo-Mauritians. India and Mauritius co-operate in combating piracy.
Corporate Structure
The principal statute governing the formation and operation of Mauritius companies is the Companies Act 2001, which has been regularly amended to keep pace with changes in respect of Mauritius incorporated companies and international good practice.
Limited Liability Partnership
An LLP can be set up by two or more partners. There are no restrictions on the residency of the partners and a partner can be an individual, an entity or an unincorporated body. It can be used to offer professional or consultancy services under a Global Legal Advisory Services Licence.
Domestic Company
It is the best way to conduct business with Mauritian residents and is the preferred vehicle for investing in Mauritius. A company incorporated in Mauritius can be 100% foreign-owned and there is no minimum capital requirement.
Global Business Company
A Global Business Company (GBC) in Mauritius is a company that has its main business operations principally carried on from within Mauritius, with persons who are resident outside of Mauritius. A GBC incorporated in Mauritius can be a branch of a foreign company.
Foreign Entities in Mauritius
A new license, termed a Global Business License (GBL), will be mandatory if a foreign-controlled company wishes to conduct its business principally outside Mauritius or with such category of persons as may be specified by the FSC. A GBL holder will be required to carry out its income generating activities in or from Mauritius though the direct and indirect employment of suitably qualified persons and should incur a minimum level of expenditure in accordance with its level of activities.
Taxation System
Mauritius has assented to the Organization for Economic Co-operation and Development (OECD) Convention on Mutual Administrative Assistance in Tax Matters.
Corporate Tax
Corporations are liable to income tax on their net income, currently at a flat rate of 15%. Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to exports based on a prescribed formula.
Dividend Tax
Companies, whether resident or not, are exempt from tax on dividends received from resident companies. Dividend income received from abroad by a company resident in Mauritius is subject to tax at the rate of 15%.
VAT
VAT is charged at the standard rate of 15% on all goods and services supplied by them in Mauritius. An entity should register for VAT if turnover exceeds MUR 6 million a year. However, certain service providers (e.g. accountants and auditors, attorneys) should register irrespective of their turnover.
Taxation of Non Resident entities
A company not incorporated in Mauritius is resident in Mauritius only if it is centrally managed and controlled in Mauritius. A non-resident corporation is liable to tax on any Mauritius-source income, subject to any applicable tax treaty provisions. Mauritius has a credit system of taxation whereby foreign tax credit is given on any foreign-source income declared in Mauritius on which foreign tax of a similar character to Mauritian tax has been imposed.
Foreign entity options
Mauritius boasts an Attractive and Flexible Tax System. This is because of strong government commitment to doing their best in creating an investor-friendly environment for both local and international companies.
Authorized Company
An Authorized Company is a type of company whose majority of operations and the effective place of management are outside Mauritius. Income from such company shall be taxable in the territory of its operation and only Mauritius sourced income taxed domestically.
Global Business Company
A Global Business Company (GBC) is the successor of the former GBC 1 company. The shareholders can be non resident of Mauritius and requires minimum of one shareholder. At least two directors must be appointed who are resident in Mauritius.
Protected Cell Company
A Protected Cell Company is a single legal entity within which may be established various cells. The PCC's legal segregation of assets and liabilities allows it to be utilized in situations where a group structure of multiple companies was previously required.
Mauritius Business
Mauritius is among the most open, competitive and lowest tax economies in the world. It 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.It 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.
