Create a company in Mauritius: 10 reasons why

When it comes to create a company in Mauritius, there are many reasons why this jurisdiction is attractive to entrepreneurs. From the preferential tax regime and the rigorous regulatory environment, to the ease of doing business and strong infrastructure, Mauritius offers a number of advantages to businesses of all sizes. Here is why to create a company in Mauritius.

Among the African countries most conducive to business and investment

Mauritius has a population of just over 1.3 million people and an economy that is dominated by the service sector. The island nation is well known for being one of the most business and investment-friendly countries in Africa. Mauritius is consistently ranked as one of the easiest places in the world to do business, due in large part to its strong legal and regulatory system. In fact, the country ranks first in Africa for:

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

All these incentives are among the reasons why foreign investors are looking to create a company in Mauritius.

A government supportive of foreign investment

Mauritius is one of the most popular investment destinations in Africa, for good reasons. The Mauritian government understands that foreign investment is vital to the country’s economy and has enacted a number of policies to make the nation more attractive to investors, such as:

• A well-developed infrastructure, including telecommunications, ports, Freeport and airports
• A pro-business environment, with a competitive corporate tax rate
• Robust intellectual property protection
• Political and economic stability
• Easy registration procedures for businesses
• A cosmopolitan population and cultural scene

For these reasons, Mauritius has become a popular destination for investors looking to set up or expand their business operations in Africa.

Mauritius: A stable, well-regulated and diversified economy

Mauritius is a stable and well-regulated economy with a strong focus on good governance, democracy, human rights and the rule of law. Mauritius is an attractive destination for foreign investment due to its political and economic stability. Furthermore, it has successfully built a robust legal and regulatory framework.

The Mauritian government has placed great emphasis on economic development and has created a favourable environment for businesses to operate, which plays an important role in asset protection. The main economic sectors of its diversified economy include financial services, tourism, textiles, ICT and agro-processing. Mauritius has been successful in attracting foreign investment and has built up a strong service, tourism and manufacturing sector. Foreign investors are therefore offered various opportunities to create a company in Mauritius.

A variety of structures to fit your business needs

Mauritius offers a wide range of business structures to suit your requirements:

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

When starting a business in Mauritius, it is crucial to select the most appropriate corporate structure in order to ensure the success of your venture. Each type of business has its own purpose and benefit. Being rightly advised will help you make the best decision for your company, and local business and advisory service providers can help you.

A favourable tax regime to create a company in Mauritius

Mauritius offers a preferential tax regime for foreign investors. The Mauritius International Financial Centre (IFC) is an excellent facility that provides an environment where international business can be conducted in a secure and efficient manner. The IFC’s prudential supervision is the responsibility of the Financial Services Commission (FSC).

Mauritius offers a favourable tax regime to foreign investors. The Double Taxation Avoidance Agreement (DTAA) allows for a full exemption from capital gains tax, no withholding tax on dividends, and a corporate and personal income tax of 15%. In addition, there are no property nor inheritance taxes in Mauritius. Other incentives include:

• 100% Foreign ownership
• 15% Value-added tax (refundable)
• Some types of foreign income are taxed of 3%, subject to meeting specific requirements
• No foreign exchange controls
• Repatriation of profits, capital and dividends at no cost

A location that is strategic and close to key markets of Africa and Asia

Mauritius has signed a number of free trade agreements with other countries, which makes it easier for companies to export goods and services to other countries.

Mauritius forms part of the AfCFTA (African Continental Free Trade Area); a trade agreement that is expected to boost intra-African trade and investment, and support economic diversification and industrialisation across the continent. The AfCFTA has the potential to create a single unified market of 1.2 billion people and a gross domestic product of US$3.5 trillion.

Investors from AfCFTA member states, and who create a company in Mauritius, will also benefit from preferential access to the Chinese and Indian markets, which have a combined population of more than 2 billion potential customers. This will enable them to export goods and services to China and India.

A highly skilled and bilingual workforce

The country is known for its natural beauty, and its people are considered to be among the most skilled and bilingual in Africa. Mauritius has a highly educated workforce, with more than 60% of the population holding a tertiary degree. Mauritius is an attractive destination for companies looking to set up operations in Africa because the majority of the population speaks English and French.

Affordable cost of living and doing business

Mauritius is a popular tourist destination, and it is an increasingly popular destination for expatriates looking for an affordable cost of living as well as a favourable business environment. The country offers excellent value for money, with a high standard of living and a very reasonable cost of doing business. Mauritius is therefore an attractive destination for businesses and investors.

Property investment in Mauritius

Over the past few years, Mauritius has become a popular destination for property investors, due to its stable political environment, favourable tax regime and good infrastructure.

Property investment in Mauritius is a sound proposition. Firstly, the price of property in Mauritius is still relatively affordable, compared to other popular investment destinations such as Singapore or Dubai. Secondly, the rental income from property in Mauritius is exempt from income tax. Finally, the Mauritanian government offers a wide range of investment incentives, including a residency-by-investment programme for acquisitions of at least USD 375,000.

Mauritius: a popular destination for relocation

Mauritius is a top destination for those looking to relocate. The country boasts a high quality of life, with excellent healthcare and education systems, as well as a relatively affordable cost of living compared to other developed countries. The island’s affordable cost of living makes it an appealing destination for those who want to enjoy all the benefits of a developed country without spending a lot of money.

Expats living in Mauritius enjoy the tropical relaxed lifestyle, and the weather is warm all year round. Mauritius is a beautiful country with plenty of opportunities for outdoor activities. There are also plenty of flights to major cities around the world, so it is easy to get to Mauritius.