Investing in Africa and India through Mauritius
Since 2003, Healy Consultants PLC has been efficiently and effectively assisting our Clients conduct business and invest in emerging markets and regions, such as India and Africa, through optimal global investment structures, including Mauritius vehicles.
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Advantages of Mauritius company when investing in Africa
- Mauritius is the highest ranked country in Africa in important investment criteria, such as: i) Ease of Doing business ii) Index of Economic freedom and iii) Global Competitiveness Index;
- The country has entered into double taxation agreements (DTAA) with important African countries, including: i) Nigeria ii) Kenya iii) South Africa and iv) Tunisia. Consequently, dividend withholding taxes with most African countries are low i.e. range between 0-10%;
- Mauritius is a signatory to 15 investment promotion and protection agreements (IPPA) with African countries, guaranteeing: i) free capital repatriation ii) asset expropriation iii) favourable dispute settlements;
- Mauritius has signed an exclusive DTAA with Mozambique, allowing exclusive rights to capital gains tax deduction when selling shares of Mozambique companies;
- Chinese investors interested in investing in Africa can utilize a Mauritius holding companies, as dividends paid back to China will be fully tax exempt.
Advantages of Mauritius company when investing in India
- Mauritius and India have a double taxation agreement, allowing 50% capital tax exemption when selling Indian securities until 31st of March 2019. For example, Mauritius hedge funds will pay 7.5% capital gains tax on share transfer until the 31st of March and 15% thereafter;
- Under the double taxation treaty, dividend withholding taxation between India and Mauritius can be as low as 5%;
- Investment in Indian limited partnerships is allowed without any additional government approval;
- Investment protection is important consideration when doing business in India. Positively, both countries apply Bilateral Investment Protection Treaty, again guaranteeing: i) free capital repatriation ii) asset expropriation iii) favourable dispute settlements;
- There are no such treaties between India and other important holding company centres, such as i) Hong Kong ii) Cayman Islands or iii) BVI;
- Mauritius and India share significant economic and cultural ties, resulting in Mauritius being the largest investor in India with about 20% of FDI in 2016.
Healy Consultants PLC servicesHealy Consultants PLC will assist our Clients avail the above opportunities through setup of either a GBC1 or GBC2. Based on Client’s specific needs, our experts will enable our Clients to determine the optimum business structure. For further details, please refer to this webpage for a detailed table of comparison and professional fees.