Mauritius is one of the major business hubs in African countries with the most successful, competitive and diversifying business environment. The capital of the country is Port Louis with a population of 1.3 million.
The major language used in the country is English, French, Creole, and Bhojpuri. The country got a parliamentary republic system with the economy based on tourism, textile, sugar, and different financial services.
The country got the fourth largest GDP per capita among the African countries. In this article, we are going to discuss the business opportunities in Mauritius in details.
Bilateral and Multilateral Treaties in Mauritius
Mauritius got bilateral and multilateral business treaties with different nations and this is one of the major factors contributing the business opportunities in Mauritius.
The country is the member of the African Union, Commonwealth of Nations, World Trade Organizations, The Common Market of Eastern and Southeast African (COMSEA), South African Development Community (SADC), Indian Ocean Rim.
Mauritius got a bilateral agreement with countries such as Central African Republic, Hungary, Egypt, Madagascar, Pakistan, India, Turkey, and Zimbabwe.
Also, the country has investment protection and promotion agreement with twenty-four countries and with this agreement Mauritius enjoys several benefits.
One of the major benefits is that the IPPA provides free respiration for the investment of the capital & return and also provide a guarantee against expropriation.
Additionally, the treaties proved the arrangement for any types of settlements of the dispute between the investing parties and the contracting states.
Double Taxation Avoidance Treaties for the Mauritius business
Mauritius signed double taxation avoidance treaties with the following countries:
These are Australia, Barbados, Belgium, Botswana, Croatia, Cyprus, Srilanka, France, Germany, Guernsey, India, Italy, Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia, Monaco, Mozambique, Namibia, Nepal, Oman, Pakistan, Bangladesh, China, Rwanda, Senegal, Seychelles, Singapore, South Africa, Qatar, Swaziland, Sweden, Thailand, Tunisia, Uganda, United Arad Emirates, United Kingdom, Zambia, Zimbabwe and finally Congo.
There is more double tax avoidance treaties are awaiting for ratifications and this provides good export based business opportunities in Mauritius.
Investment opportunities in Mauritius
The business-friendly government of Mauritius provides various benefits and incentives for the foreign direct investment in Mauritius.
The guidelines for these benefits are mentioned in the document of the Investment Promotion Act 2000 which is also known as the investment act.
The Mauritius Board of Investment (MBOI) acts as the one-stop solution for the business registration and also provides all form of facilitation for any types of business and investment in the country.
This agency also provides necessary guidelines for the new investors to find out proper links and also assist them to choose the suitable field of investment. In Mauritius, the investors enjoy several benefits and one of the major benefits is that there is a flat 15% corporate and income tax rate.
Also, the tax-free dividends option is available along with no capital gain tax for the investors in Mauritius. Up to 100%, foreign ownership company is allowed in Mauritius and there’s also exemption on the customs duty for the equipment. Free respiration of profits, dividends and also capital and there is no minimum foreign capital requirements.
For the investors in Mauritius, there are 50% annual allowances on declining balance and the country got an extensive tax treaty network with many countries.
Mauritius is also a suitable place in terms of personal tax benefits. For the resident companies in Mauritius, they have to pay tax for their home and worldwide income, while the nonresident companies only have to pay for their income in Mauritius source.
Please note that the company shall be regarded as the resident company if it is incorporated in Mauritius and their head office for management is situated inside Mauritius. Other than that, there is also a value-added tax (VAT) which is 15% is applicable for certain goods and services.
Property Acquisition for business in Mauritius
The real estate sector in Mauritius is one of the emerging sectors and provides competitive business opportunities in Mauritius.
The legal system of Mauritius protects the right of both sellers and also the purchaser.
There are different types of commercial property available in Mauritius for sale and rent and these include hotels, shopping malls, duty-free shops, office buildings, business, and industrial parks etc.
dditionally the residential property sector of the country is also expanding through the development of luxury apartments.
The IRS department of the country is monitoring the construction and sales of luxurious apartments and residential properties for the foreigners who got high purchasing power.
The required investment period for IRS is very short and there is no minimum restriction on the selling price and also it provides tax residency to the investors, investor’s spouse and dependents.
On another hand, if any foreigner wishes to buy immovable land in Mauritius then he/she must obtain permission either from the Prime Minister Office or from MBOI.
The Non-citizen may get the permission if they become the shareholder of a company who is free holding or lease holding immovable property or lease on an immovable property for residence for more than 4 years of time period.