Mauritius which is also officially known as the Republic of Mauritius is an island nation which is situated in the Indian ocean. The island is among other islands such as Rodrigues, Agalega and St Brandon. Mauritius largest city and the capital is Port Louis which is geographic location of the main island in the country. The population of the country consists around 1,265,577. The economy of the country as staged from low-income to agriculture-based economy which is an upper middle-income of the country’s economy which is diversified.
The country’s economy depends on tourism, sugar and financial services. There is also investment done from locals and foreign investors who invest in sectors such as seafood, hospitality, information and communication, healthcare, renewable energy, property development and education. These are the sectors which are attracted by the citizens of the country and are encouraged by the government.
Why Mauritius for business?
The country is ranked in high terms for its economy competencies, free economy, friendly climate investment and good governance. According to ‘The World’s Bank’ 2019 it is stated that Mauritius is a recommended to place to start a business with ease and it is ranked in the 20th place out of 190 economies in the world. The country is ranked 8th most free economy in the world and for the investment freedom it has the highest score.
Mauritius in one of the most developed country in Africa because of its tax system and free market policy. The country has the highest GDP is Africa. Due to its strong economy function it is favorable for foreigners or anyone to do invest business in Mauritius. Starting a business includes complex tax, legal and regulatory environment.
Business formation in Mauritius:
Companies which are newly formed are required to register and incorporate the business before naming the company. Once the process is over then a license fee and registration with the Social Security Office is required to be done by the applicant.
Dealing with Construction Permits: After the company application process dealing with the business place takes a long process. There are several government places to be consulted most of which it is required to carry out inspections before any construction works begins. After the contact of the relevant department, an occupancy permit will be released by the Ministry of Local Government.
Getting Electricity: This is responsible but the Central Electricity Board (CEB) which is the work of internal and external inspections of civil works and meter installation. This should mainly be functioned by electrical contractor.
Registering Property: A notary is required when registering property and land surveyor is needed for the new plans of the building. Once the sale is completed a deed is signed for the registration and transcription can be deposited, finalizing property registration.
Receiving Credit and Protecting Investors: There is specifically no private bureau coverage. The country as a good rank for its good performance in this specific function. It also performs well in the board among the investor protection.
Tax Payment: The tax payments in Mauritius is very competitive and also quiet burdening. Each year a person is required to make 7 payments. Employer paid contributions to the National Pension Fund which takes away a lot of time which includes the corporate income tax of flat rate 15% and VAT.
Trading Across Borders: The international trade system in a business is quite crucial but the cost of exporting and importing goods are cheaper though it consumes time for goods to move from one country to another.
Enforcing Contracts: It takes over 2 years to finalize the contract along with it has 36 procedures. Filling and services take alone a month to complete before there is any other judicial process.
Resolving Insolvency: This is similar to drawn-out process which takes 1 year and 7 months to complete the process. The recovery rate in this case is quite low.
Office Culture: The country prefers formal type of business and it is more concerned about the business details. The culture of a company should be formal and systematic in the country. In a punctual meeting it is necessary for the company to present their business cards, brochures and price list. There is a specialized position and departments in a business and therefore lunches and dinners are the time to use and work for networking.
TMF Group: Locals in the country helps in navigating the minefields. If a foreign investor wants to setup the business in the country, there will be locals to help and guide them.
Types of companies in the country
According to the Companies Act 2001 there are 4 different types of companies:
- Private Company where the company cannot be given to public and where the shareholders count cannot be more than 25.
- Public Company which is listed with the stock exchange markets and there is no limited number for shareholders.
- Sole-person Company is company where only 1 shareholder can be in a company. This type of company automatically becomes a private company.
- Global Business Company is a company which involves in the offshore sectors.
Read Also: Process of Company Registration in Mauritius
Is it recommended to start a business in Mauritius?
Yes! It is the best country to invest business and also due to it developing and stable economy there are high chances to gain profit by starting a business in this country.
What type of businesses can be done in the country?
There are various options such as health and hospitality, agriculture, etc.
Is it necessary to have local guidance to start a business in Mauritius?
Yes! It is necessary to have a local person to help and guide a foreign investor.