Why Mauritius? Top 5 Benefits of Setting Up a Company in Mauritius for Foreign Investors 

• Mauritius ranks among the best countries with open investment policies and an excellent business environment. This jurisdiction is being one of the favorites among foreign investors interested in setting up a company in Mauritius. In fact, the country is known to be the most open and competitive economy along with being low tax in the world, having welcomed foreign investments into various sectors. Foreign investors can invest in nearly every sector except for a few restrictions and even purchase luxury properties under schemes like Integrated Resort Schemes (IRS) and Real Estate Scheme (RES).  

• Mauritius has reduced some major foreign investment barriers through reducing taxes, making the administration process simple, maintaining low interest rates, investing in education and training, lowering trade barriers, and giving access to major markets with preferences. Business activities can begin within three working days, and registration, except for financial services, is primarily conducted through the Registrar of Companies, which makes it easy to register company in Mauritius.  

• The Heritage Foundation ranks Mauritius 19th out of 184 countries in its latest Index of Economic Freedom ranking. The Mauritian government has created several initiatives to attract foreign investments, one of which is the Economic Development Board (EDB), offering one-stop-shop facilitation for investors who wish to register company in Mauritius. In this blog, we at Tetra Consultants will outline you about the top benefits of setting up a company in Mauritius. 

5 benefits of setting up a company in Mauritius 

Tax friendly environment  

• Mauritius is a low-tax jurisdiction with several advantages for foreign companies1. There are no inheritance taxes, and the government provides significant tax credits to offshore companies, substantially reducing their business operational costs. Dividends paid by companies in Mauritius are tax-exempt, and there is no capital gains tax. Companies also have access to the free repatriation of dividends, capital, and profits.  

• There is a value added tax of 15% and it is only charged on machinery, which, along with exemptions from customs duties, tend to reduce costs. Mauritius has Double Tax Avoidance Agreements with 34 countries, which makes the operating of foreign companies with fewer taxes difficult and impossible to achieve.  

• The corporate and personal income taxes are at 15%, and import-export oriented businesses enjoy duty-free privileges for inputs and equipment. If the company is managed and controlled outside Mauritius, non-resident companies would be exempt from corporate tax, withholding tax, interest, royalties, and capital gains tax. 

Convenient and easy business registration 

• Mauritius is easy to set up business in. Foreign entrepreneurs can set up companies within three working days and can have up to 100% foreign ownership. No minimum foreign capital is required to set up a company and begin operations. Thus, new businesses that may not have sufficient initial capital are possible.  

• The government has reduced bureaucracy and streamlined the registration and operation processes. It is relatively straightforward to comply with regulatory and business requirements, including a business permit and registration with the Registrar of Companies. 

Security and protection for investors 

• Mauritius is also a signatory to the 1958 New York Convention, International Court of Justice of the Hague, and the International Centre for RoID (Regulation of Investment Dispute), thus offering protection to foreign business entrepreneurs. Such access to these legal frameworks is given for the foreign investor seeking security as he aims to start up a business venture in the country.  

• Mauritius is one of those politically stable and economically secure countries ranked first in Africa in ease of doing business. There are laws that ensure that the environment continually remains business-friendly, such as the Companies Act of 2001, Business Registration Act 2002, Financial Services Act 2007, and the Business Facilitation Act of 2019. 

Open and free economy 

• Mauritius has one of the fastest-growing economies in sub-Saharan Africa, which promotes a very entrepreneurial culture. The government encourages foreign investors and facilitates their settlement and becoming operational as soon as possible.  

• Mauritius is part of various trade organizations, including SADC, COMESA, the African Union, and the African Continental Free Trade Area. The World Bank lists this country as an upper-middle-income economy, and as the richest African country per capita, it is considered a good jurisdiction for establishing a business. 

Access to international markets and skilled workforce 

• Mauritius is strategically positioned as a gateway to both Africa and Asia, providing a direct route to high-growth markets. This gives investors a location advantage to expand regionally and internationally. The country has a highly competent and bilingual workforce, with proficiency in English and French, which has many of its professional’s graduate from internationally accredited institutions.  

• It boasts a developed digital network infrastructure with excellent telecommunication facilities, high bandwidth, and high-speed internet. The airport and harbor satisfy the needs of cargo and passenger traffic, with regular air and sea connections to the rest of the world. 

Conclusion 

• Setting up a company in Mauritius presents an attractive destination for foreign investors as it offers an excellent location in which to set up and develop a business, taking into consideration its tax advantages, streamlined process of business registration, robust protection for investors, open economy, and access to international markets.  

• For assistance and guidance in navigating the process of setting up a company in Mauritius, clients can seek services from Tetra Consultants. We have different business services such as the corporate bank account opening, nominee director and shareholder services, offshore financial licenses, accounting and tax services and many more. Tetra Consultants provides company registration assistance to international clients to ensure the easy and streamlined setup process of the company 

• Contact us to know more about setting up a company in Mauritius and our team will revert back in 24 hours.