Benefits of Business Setup in Mauritius : It takes just 2 weeks time to register offshore company in Mauritius, with minimum one director and one shareholder of any nationality. However, both are allowed to reside elsewhere besides Mauritius. US $1 is the least paid-up capital and new business is permissible to be registered in Mauritius without you requiring to travel to this island.

Investments in Mauritius can offer entrepreneurs with innumerous incentive benefits that are available at the Export Processing Zones in Mauritius. Corporate tax exemption is provided to their resident company to about 10 years including custom duties upon selected raw materials and capital goods.

Favorable tax & legal environment in Mauritius

High levels of confidentiality offered in Mauritius combined with free capital repatriation, sound banking framework and no control over foreign exchange.

Mauritius in July 2019 got removed from OECD report with regards to harmful tax practices, with the abolishment of GBL 1 (Global Business License-1) & GBL2 regime. But PER (Partial Exemption Regime) replacing GBL companies are subjected to economic substance needs, including:

• Performing CIGA (core income-generating activities), from or in Mauritius.
• Hiring local staffs for conducting CIGA.
• Incurring expenses that are proportional to related activities.

Mauritius as per OECD is considered to be a tax compliant jurisdiction enjoying positive ratings over Luxembourg, the USA and the UK. Recently, BEPS multi-lateral agreement has been signed by the country, while adopting CRS to promote information exchange between countries.

Founders as per Mauritius GBC1 (Global Business Companies) can reduce taxation legally on global earnings due to:

• GBC companies in Mauritius for tax purpose are regarded as resident companies, however, enjoy benefits derived from low corporate tax of 3 percent on global earnings.
• GBC remitted dividends and interests are exempted legally from withholding tax. Such companies do have better access to agreements to 44 double tax avoidance that has been signed with other countries including Italy, Germany, China, UK, India, France, United Arab Emirates, Singapore, Malaysia
• Withholding tax need not be paid by Mauritius GBC in Mauritius on dividends that are remitted abroad to individual and corporate owners alike and on interest earned.
• Business is allowed to be conducted by Mauritius GBC with local customers, to offer insurance and financial services, provided relevant license is obtained with Financial Services Commission in Mauritius.

Several tax incentives are offered to different types of industries in Mauritius, including:

• Corporate tax exemption for 8 year period on profits availed from innovation activities to develop intellectual property assets. Companies registered after July 2017 is only eligible to derive such incentives.
• All businesses that carry out work to develop a Marina are considered for corporate tax exemption for 8 year period.
• All P2P lending firms (FSC approved) and certified e-commerce businesses by EDB can enjoy tax relief for 5 year period.

Strategic Location

• Being the investment gateway to the African continent, Mauritius is considered to be an ideal destination. It does offer conducive business environment, has low corruption levels, low tax rates and bureaucracy, when compared to its surrounding neighbors.
• Formation of offshore company in Mauritius is quite easy when compared to setting up in other jurisdictions.

Ecommerce business: Alternative location

Mauritius is found to work actively towards promoting this country as Africa’s headquarters for all ecommerce activities, while creating a Green Finance center through increased efforts to develop:

• Development & Industrial Park at Naivasha, Kenya
• Textile City, Madagascar
• SEZ initiatives in Senegal, Ghana and Cote d’Ivoire

Mauritius business registry & its uses

Mauritius can be termed to be a wonderful destination to incorporate a holding company. This is more so for those entrepreneurs who run businesses in Africa, since they can benefit from double tax avoidance agreements that are signed by Mauritius and countries belonging to this region. The interested may opt to create a GBC.

Mauritius is also noticed to be an emerging hub to develop call centers and BPO (Business Process Outsourcing) units due to the presence of multilingual workforce who are fluent in English, French and also communicate in Tamil and Hindi combined with low labor costs.

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