With its stable political and economic environment, favourable tax regime, strategic location, and well-educated workforce, Mauritius is an attractive destination for businesses looking to expand their operations. This article explores why doing business in Mauritius enables your enterprise to thrive.

 

Economic & Political Environment in Mauritius

Mauritius is a small island nation in the Indian Ocean with a population of approximately 1.27 million people. It’s considered one of Africa’s most politically and economically stable countries, making it an ideal location for business ventures.

Stable Political Environment

Mauritius operates as a parliamentary democracy, with a president as the head of state and a prime minister as the head of government. The country has a long tradition of political stability, respect for human rights, and a multi-party system, ensuring consistent policies and predictable economic conditions. This stability reduces risks for businesses, allowing for long-term planning and informed investment decisions.

Growing Economy

Mauritius boasts a diverse and thriving economy, characterized by robust growth and resilience. In 2023, the GDP growth rate was projected at 6.8%, reflecting ongoing recovery efforts and economic resilience, particularly in sectors like tourism and construction​ (Stats Mauritius)​​ (World Bank)​. The GDP was estimated to be around 12 billion US dollars in 2022​ (World Bank)​. This economic growth has been driven by increased investment in public infrastructure projects and a resurgence in tourism, which is approaching pre-pandemic levels.

Favourable Tax Regime

Mauritius offers one of the world’s lowest corporate tax rates at 15%, which can be reduced to 3% for export-oriented businesses. Additional benefits include no inheritance tax, tax-free dividends, and no property or capital gains tax for offshore entities. The country has signed over 45 double taxation avoidance treaties, reducing withholding tax rates and protecting enterprises from double taxation. These agreements make Mauritius an attractive location for international business.

Strategic Location

Mauritius is strategically located in the Indian Ocean, serving as a gateway to Africa and Asia. This location is ideal for businesses looking to expand globally, with excellent port facilities and access to major shipping lanes. The deep-water port and modern telecommunications infrastructure facilitate efficient trade and logistics.

Skilled Workforce

Mauritius has a well-educated and multilingual workforce, with strong emphasis on education and vocational training. This skilled labor force is a valuable asset for businesses, providing high-quality work that meets international standards. Competitive labor costs further enhance Mauritius’s appeal, offering businesses a cost-effective yet highly productive workforce.

Infrastructure

Mauritius has a modern telecommunications network with reliable internet services, high-quality office spaces, and an efficient transportation system. The country’s infrastructure supports business operations with advanced technology, secure facilities, and comprehensive transport options.

Sustainability

Mauritius is committed to sustainability, investing in renewable energy sources like solar and wind power. This commitment reduces reliance on fossil fuels and promotes a cleaner environment, benefiting businesses that prioritize sustainability.

 

Setting Up a Company in Mauritius

Forming a company in Mauritius involves several steps:

  1. Choose a Business Structure: Decide between an Authorized Company (AC) for offshore operations or a Global Business Company (GBC) for both local and international business.
  2. Reserve a Name: Optionally, submit an application for name reservation to the Registrar of Companies.
  3. Register the Business: Submit necessary documents, including the memorandum and articles of association, to the Registrar of Companies.
  4. Obtain a Certificate of Incorporation: After compliance with regulations and payment of fees, receive your Electronic Certificate of Incorporation.

Consulting with a local lawyer or business advisor is recommended to navigate specific requirements and regulations.

Conclusion

Mauritius offers numerous advantages for businesses, including a favourable tax regime, strategic location, political stability, skilled workforce, and excellent infrastructure. These factors make it a premier destination for business expansion and investment. For practical advice on incorporation or any questions regarding doing business in Mauritius, contact our team via the chat box or send a message to contact@clarityadvisorygroup.com . We’re here to help you succeed.

Frequently Asked Questions

Can a foreigner start a business in Mauritius?

Yes, foreigners are allowed to start a business in Mauritius. The government of Mauritius actively encourages foreign investment and has put in place policies and regulations to facilitate and attract foreign entrepreneurs to invest in the country.

It is advisable to seek the assistance of a local attorney or business consultant, who can guide you through the legal and regulatory requirements for starting a business in Mauritius.

Is it easy to incorporate a Mauritius business?

Incorporating a business in Mauritius will be a straightforward process if you have all the necessary information and document, and if you follow the proper procedures.

Here are some steps of incorporating a Mauritius business: choose a business structure, decide on a name, register the business with the Registrar of Companies, pay necessary fees, receive your Certificate of Incorporation, and start operating while complying with legal regulations.

What key factors make Mauritius a good business place?

Mauritius is a popular jurisdiction due to its strategic location, stable political and economic environment, skilled workforce, business-friendly policies, modern infrastructure, and high quality of life. These factors make it an attractive location for companies looking to expand into Africa, Asia, and beyond.