Offshore Company: Why Foreign Investors Choose Mauritius

Foreign investors looking to do business consider Mauritius as a prominent jurisdiction for company registration. There are several reasons for this, but two key factors are the favourable tax regime and the easy process for company registration. In this article, we explore the reasons behind Mauritius’ popularity and look at some of the benefits that investors can enjoy when doing business in Mauritius.

 

Mauritius, one of Africa’s most business-friendly country

Located at the heart of the Indian Ocean, Mauritius is home to a diverse population and a thriving economy, and a home for over 20,000 international companies.

A number of factors make Mauritius an attractive business and investment destination. The island has a strong legal and regulatory system, a stable political environment, a well-developed infrastructure, and a skilled workforce. Additionally, the Mauritian government offers a number of business incentives (further described in the following sections).

Setting up an offshore company in Mauritius is an excellent option to consider and a popular destination for foreign investors – being one of the most business and investment-friendly countries in Africa:

  • Ease of doing business (World Bank)
  • Best Countries for Business (Forbes)
  • Good Governance (Mo Ibrahim Index of African Governance)
  • Democracy Index (Economist Intelligence Unit)
  • Global Peace Index (Institution for Economic Peace)

 

Mauritius, a conducive environment for setting up an offshore company

A renowned destination for investors looking to do business or expand their operations in Africa, Mauritius has a number of regulations and advantages in place to attract investment:

  • Protection of Intellectual Property
  • Easy company registration and set up procedures
  • Developing infrastructure (telecommunications, port, airport and Freeport)
  • Business- and investment-friendly ecosystem
  • Social, economic and political stability
  • Melting pot of cultures

 

A stable country for company registration

Mauritius has been steadily attracting more foreign investors in recent years, thanks to its political, economic, and social stability. The reasons that make Mauritius attractive destination for company registration include:

  • Mauritius has a stable democracy with a strong rule of law. This makes it a safe and predictable environment for businesses.
  • Mauritius has a strong economy, ranked as the easiest place for doing business in Africa, and open to foreign investment.
  • Mauritius is a peaceful and stable country with no ethnic or religious tensions.
  • The social infrastructure in Mauritius is excellent, with good healthcare, education, and transport. This makes it a convenient and comfortable place to live and work.

 

A comprehensive range of business structures

With a wide range of structures available, the Mauritius International Financial Centre is the ideal place for company registration. The corporate structures include:

  • Global Business Company
  • Authorised Company
  • Global Headquarters
  • Protected Cell Company
  • Variable capital Company
  • Trust
  • Foundation
  • The Private Trust Company
  • Investment Funds
  • Freeport Company
  • Trading Company

When setting up an offshore company in Mauritius, it is crucial to select the most befitting corporate structure to ensure the prosperity of your venture. Every type of enterprise has its own reason and upside. Obtaining professional advice will help you make the most appropriate decision for your company, and Mauritian business and advisory service providers can accompany you.

 

Offshore company in Mauritius: cost and lead-time

When incorporating a company in Mauritius, there are a number of costs to consider including incorporation fees, operational expenses, director fees and government charges. The overall cost will depend on the type of company structure you choose.

A local business and advisory services company can help you establish your business by tailoring a proposal and assisting with the administration of your corporate structure. This company can help you with the relocation process and permits, as well as counsel you to optimize your business.

Company registration in Mauritius typically takes between three and five working days, although this can vary depending on the type of corporate structure involved. Some types of companies take longer to establish than others.

 

Qualified and competitive workforce

One of the key reasons why foreign investors choose Mauritius for company registration is the country’s qualified and competitive workforce. Mauritius has a large pool of educated and skilled workers, which makes it an attractive destination for foreign companies looking to set up operations. Additionally, the cost of labour in Mauritius is relatively low compared to other countries in the region.

 

International trading platform ideally located between Africa and Asia

Mauritius has entered into a number of free trade agreements with other countries, making it easier for companies to export goods and services to other markets.

As part of the African Continental Free Trade Area (AfCFTA), Mauritius is expected to play an important role in strengthening intra-African trade and investment, support for economic diversification and industrialisation. The continent has a strong economic potential, with a market of 1.2 billion people and a Gross Domestic Product of US$3.5 trillion.

Investors coming from countries that are members of the AfCFTA will have preferential access to the markets of China and India, if they set up their offshore company in Mauritius. This will enable them to export goods and services to these countries, which have a combined population of more than 2 billion potential customers.

 

A fiscal regime favourable to foreign investors

Mauritius has positioned itself as a premier destination for foreign direct investment (FDI). The island country has a pro-business environment and a highly skilled workforce. Additionally, Mauritius has a favourable tax regime for foreign investors.

Mauritius has a corporate and personal tax rate of 15%. The country has a territorial tax system, which means that only income earned within the country is taxed. This is highly advantageous for foreign investors, in addition to Mauritius having Double Taxation Avoidance Agreements (DTAA) with a number of countries around the world.

Investors also benefit from a number of incentives that make Mauritius an even more attractive destination for foreign investment. These include:

  • 100% Foreign ownership
  • no capital gains tax
  • no withholding tax on dividends
  • tax holidays for certain activities
  • duty-free imports for certain business equipment
  • 15% Value-added tax (refundable)
  • 3% on some types of foreign income, subject to meeting specific requirements
  • no foreign exchange controls
  • free repatriation of profits, capital and dividends

 

Mauritius, an appealing destination for relocation

With a secure living environment, high quality of life, reliable healthcare and education systems, as well as an affordable cost of living, Mauritius is the ideal destination for investors, entrepreneur and businesspersons looking to relocate. For example, if you have online marketing agency or a travel agency, and can run your operation from anywhere in the world.

Mauritius is a beautiful country that offers a tropical and relaxed lifestyle. The weather is warm throughout the year, making it an ideal destination for those looking to enjoy outdoor activities. Additionally, there are regular flights to major African, Asian and European cities, making Mauritius easily accessible.

 

Real Estate Investment

Mauritius has become an increasingly popular destination for property investors in recent years, thanks to its stable political environment, favourable tax regime and good infrastructure. Property acquisition can be done through a company, under the Property Development Scheme in Mauritius.

Mauritius is an attractive destination for property investment. Prices are relatively affordable compared to other popular investment destinations. Rental income from property in Mauritius is exempt from income tax. Indeed, the Mauritian government offers a number of incentives, including a residency-by-investment programme for acquisitions of at least USD 375,000.