Starting Business in Mauritius
Starting business in Mauritius may seem like a very good idea but without the proper guidance, it can be very difficult. The task becomes even more difficult when one has to do it in a foreign country. More often than not, foreign investors, especially individuals struggle with the concept of setting up a business. In a country like Mauritius where foreign investment is little, this can be a challenging task. However, if one knows the proper steps and has enough knowledge from beforehand then everything can be taken care of smoothly. With all that being said, listed below are 7 steps to starting a new business in Mauritius.
|Step One: Business Idea or Business Concepts:||
Quite often investors have the capital ready but they lack the idea of what to invest it in. This becomes an even bigger problem when the investment will be done in an island nation like Mauritius. Luckily for such investors, the Small and Medium Enterprise Development Authority in Mauritius, also known as the SMEDA, is a section of the Ministry of Business Enterprise and Cooperatives who deal with investors lacking in ideas. A whole list of project profiles are available in the SMEDA database which can help investor get a solid idea on what they want to start a business on.
|Step Two: Business Plan:||
Before starting business in Mauritius even anywhere in the world, the entrepreneur needs to submit a business plan. This business plan is a like a report that should contain every single detail regarding the company or type of business one wishes to implement. This will be done to attract potential investors or to give the local authorities an idea regarding what they can expect from the business. The name of the company, the number of directors, shareholders, type of business, management structure, products and services, target market, financial structure and everything else should be included here. The SMEDA website also has a format for a business plan which can be utilized to start a business in Mauritius.
|Step Three: Type of Business:||
It is crucial to know what kind of business one wishes to form before making any other key decisions. The business can be sole trader, private limited, public limited and joint venture and so on. It is worth mentioning that certain countries may not allow several types of businesses if they are owned by foreign investors. So it is wise to check out the types of businesses allowed by Mauritius before making this decision.
|Step Four: Choosing the location:||
Since Mauritius is an island nation there isn’t much area to choose from. Finding the ideal office location is crucial because it will be the focal point from where all the business operations will be taken care of. Furthermore it is also important to decide if the company would like to rent an office space, sign a lease for a building or even explore the possibilities of using virtual rent offices.
|Step Five: Registering the business:||
Arguably the most important aspect of starting business in Mauritius a foreign land like Mauritius is registering the business. It is of absolute importance that a company should be registered before they start their business operations. The registration process is a number of steps which are very easy and can be done without much fuss. The Registrar of Business is where companies can get registered. A couple of forms need to be filled out and a few businesses related documents need to be submitted before the business is registered.
|Step Six: Obtain land use permit||
Any business would require an office or even a factory where products would be manufactured. The use of such land and buildings require a special form of permit from the Mauritius government. Obtain the permit from the Planning Department of Municipality or even from the District Council. Once these government bodies are notified, they will send over officials who will check and inspect if the buildings and land are cleared for use or not. The government officials include the local police department, fire service department, and many more. Once all the bodies give the go ahead, the business can start their operations.
|Step Seven: Implementing||
Once all the above mentioned steps are taken care of, the company can begin its business. There are a few steps which should be taken care of including paying the trade fee to the local authorities. Then there is the step of buying machinery and supplies for the business to begin. Finally, the process of hiring employees and settling on a wage rate and contract needs to be taken care of. Step one to six are the ones most investors have a problem with, especially in Mauritius. But once they are done, step seven becomes very easy and the business can begin taking off.