Mauritius which is officially known as The Republic of Mauritius is an island located about 2,000 km off the coast of Africa in the Indian Ocean. It is a popular tourist destination famed for its sandy white beaches.
The country used to depend on agriculture mainly sugar plantations and tourism to support its economy. However recently it has managed to improve tremendously from a low-income nation to an upper-middle-income economy with a per Capita GDP of USD 9,600 in 2016 as compared to USD 260 in the 1970s. This is largely due to the addition of manufacturing of textiles and apparel; IT-related activities and financial services.
Mauritius is also an attractive destination for businesses looking to set up companies to take advantage of its low corporate tax rate. Coupled with a stable political environment, it has encouraged more businesses to set up companies in the country.
Although there are some advantages and problems to setup business in Mauritius, so you will decide what will be good for you:
According to a World Bank report in 2016, Mauritius is ranked as 49th out of 189 countries for its Ease in Doing Business. Other advantage of setting up a company in Mauritius include-
Advantages of this companies:
There are many types of companies that you can set up in Mauritius. But here we only discuss about advantages of GBC 1 & GBC 2.
Global Business Companies 1 (GBC 1) – This type of company is also known as a resident company. It is set up mainly to take advantage of the low corporate tax rate in the country. This type of company can also do business with other local Mauritian companies or its residents such as financial or insurance services provided that they obtain the necessary approvals and permits to conduct the business.
Global Business Companies 2 (GBC 2) – GBC 2 are considered as foreign companies or offshore companies. This type of company mainly conducts its business dealings outside of Mauritius. The main purpose of setting up a GBC 2 company is also for tax purposes as they are not subject to the country’s corporate tax.
There is bound to be problems or challenges associated with setting up a business in Mauritius. More so if it’s in another country. Here are some of the challenges and possible solutions-
Articles might help you:
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Types of companies in Mauritius