Benefits of Mauritius business registry in 2021
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Benefits of doing business in Mauritius
Ease of setting up a business in Mauritius
- Registering a Mauritius offshore company can be completed within two weeks, with a minimum of one shareholder and one director of any nationality, who both can be residing elsewhere than Mauritius. The minimum paid-up capital is US$1, you will be able to register a new business in Mauritius without travelling to the island;
- Entrepreneurs investing in Mauritius can take advantage of several incentives available in Mauritius Export Processing Zones: their resident company can get an exemption from corporate tax for up to 10 years and custom duties on capital goods and selected raw materials;
- Registering a Captive Insurance Savings company can offer several benefits including:
- Direct access to the wholesale reinsurance market which has more lucrative commissions and profits compared to retail reinsurance;
- A CIS license company is a lot less bureaucratic than a traditional insurance carrier.
Favorable legal and tax environment
- Mauritius offers free repatriation of capital, no control on foreign exchange, and a sound banking framework;
- Mauritius Global Business Companies (formerly GBC1) allows their founders to legally minimize taxation on their global earnings because:
- Mauritius GBC companies are considered as resident companies for tax purposes but benefit from a low corporate tax at an attractive rate of 3% on their global earnings;
- Dividends remitted to a GBC are legally exempted from withholding tax. As such companies have access to Mauritius’ 46 double tax avoidance agreements signed with countries including i) Germany ii) Italy iii) the UK iv) China v) France vi) India vii) Malaysia viii) Singapore and ix) the United Arab Emirates;
- Mauritius GBC does not have to pay withholding tax in Mauritius on interest earned and dividends remitted abroad to both corporate and individual owners;
- A Mauritius GBC can conduct business internationally and locally as long as at least 51% of its revenue is generated from offshore clients.
- A wide range of industries are entitled to enjoy numerous tax incentives in Mauritius, including:
- An exemption from corporate taxes for a period of 8 years on profits derived from innovation activities for the development of intellectual property assets. This incentive is applicable only to companies that have been incorporated after July 2017;
- All businesses working towards development of a Marina are entitled to an exemption from corporate taxes for a period of 8 years;
- A 5-year tax relief for all P2P lending businesses (approved by FSC) and EDB certified e-commerce businesses.
- Mauritius is the ideal investment gateway to Africa, as it has a conducive business environment, low tax rates, low levels of corruption and bureaucracy as compared to its neighbors;
- Mauritius offshore company formation is relatively easier to set up as compared to other jurisdictions.
Attractive location for e-commerce business
- Mauritius has been actively working towards promoting the country as the headquarters for e-commerce activities in Africa and developing a centre for Green Finance through its increased efforts in developing i) a Textile City in Madagascar; ii) an Industrial and Development Park in Naivasha, Kenya and iii) initiatives in the SEZs of Senegal, Cote d’Ivoire and Ghana.
Best uses for a Mauritius business registry
- Mauritius is a great location to form a holding company, especially for businessmen running businesses in Africa as they will then be able to make use of the numerous double taxation avoidance agreements signed between Mauritius and this part of the world. Those interested by the same should then opt to form a GBC;
- Mauritius is an emerging hub for Business Process Outsourcing units and call centers, thanks to low labor costs and a multilingual workforce, fluent in French, English and also often able to communicate in Hindi and Tamil.
Healy Consultants Group PLC does not recommend our Clients establish a business in Mauritius, due to the poor business environment provided by the Mauritius Government and Financial Services Commission to multi-national organisations. Healy Consultants Group PLC instead recommends our Clients establish their businesses in these reputable zero tax jurisdictions.