ABOUT MAURITIUS

Mauritius, officially the Republic of Mauritius, is an island nation located in the Indian Ocean, approximately 2,000 kilometers off the southeastern coast of East Africa. It is a small but highly developed country known for its stable economy and attractive business environment. The capital and most populous city of Mauritius is Port Louis. According to the World Bank, Mauritius has successfully transitioned from a low-income, mono-crop producer to an Upper Middle-Income diversified economy. The currency of Mauritius is the Mauritian Rupee (MUR). At the time of writing, 1 Indian Rupee is approximately 0.53 Mauritian Rupee. As an island nation, Mauritius does not share land borders with other countries; its closest neighbors are other islands in the Indian Ocean, such as Reunion and Rodrigues Island (which is part of Mauritius). The de facto official languages of Mauritius are English and French, while Mauritian Creole is widely spoken. Hinduism is the most practiced religion, followed by Christianity and Islam, with other faiths also present. Mauritius has one main international airport, Sir Seewoosagur Ramgoolam International Airport, offering regular flights to various parts of the world, providing excellent air connectivity. The country also has two key commercial seaports, Port Louis Harbour and Port Mathurin, which are crucial for handling all import and export trade and significantly contribute to the island nation’s growing economy.

The corporate tax rate in Mauritius is a flat 15%. However, certain activities or Global Business Companies (GBCs) may benefit from an 80% exemption on specific income streams, effectively reducing the tax rate to 3% on these. Establishing a business in Mauritius is facilitated by a robust legal framework designed to attract foreign investment. Foreign investors can register various company types, including Global Business Companies (GBC) and Authorized Companies, which are popular choices due to their tax benefits and flexibility. The Limited Liability Company (LLC) structure is also available and allows foreign investors to own 100% of the company.

Opesh Group of companies can assist foreign investors throughout the due diligence process, including financial planning, company registration, exploring business options, and even finding suitable rental properties for office spaces in Mauritius. We also provide guidance on the specific procedures for establishing LLCs or corporate business setups in the country.

Types of Business which can be started in Mauritius:

• Financial Services: Mauritius has established itself as a leading international financial center, offering a robust regulatory framework and a wide range of services including banking, insurance, fund management, and global business activities. This sector offers significant opportunities for investment and growth.
• Tourism & Hospitality: As a prime tourist destination, the tourism sector remains a cornerstone of the Mauritian economy, attracting millions of visitors annually. There are continuous opportunities in hotel development, eco-tourism, luxury resorts, and related services.
• Manufacturing: The manufacturing sector, particularly textiles and apparel, has historically been a key contributor. Diversification into other areas like food processing, medical devices, and high-tech manufacturing offers new avenues for investment.
• Information & Communication Technologies (ICT) / Business Process Outsourcing (BPO): Mauritius is positioning itself as a regional ICT hub. The availability of a skilled workforce and government incentives make it an attractive location for IT services, software development, and BPO operations.
• Real Estate & Property Development: The government has introduced various schemes (such as the Property Development Scheme – PDS, and Smart City Scheme) that allow foreign investors to purchase property and, in some cases, obtain a residence permit. This creates significant opportunities in luxury villas, residential complexes, and commercial properties.
• Healthcare & Education: There is a growing demand for quality healthcare services and specialized educational institutions. Investment in hospitals, clinics, medical tourism, and private educational facilities can cater to both local and regional needs.
• Renewable Energy: With a strong focus on sustainable development, Mauritius is actively promoting renewable energy sources like solar and wind power to reduce its reliance on fossil fuels. This sector offers significant investment potential.
• Aquaculture & Seafood Processing: Leveraging its rich marine resources, there are opportunities to invest in sustainable aquaculture, fish farming, and value-added seafood processing for both domestic consumption and export.

Advantages of Starting Business in Mauritius:

• Political Stability: Mauritius boasts a highly stable political environment and a strong democratic tradition, ensuring a secure and predictable business climate.
• Favorable Business Environment: Consistently ranked high in ease of doing business, Mauritius offers a transparent and efficient regulatory framework, making it attractive for local and foreign investors.
• Strategic Gateway: Its strategic location in the Indian Ocean serves as a natural bridge between Africa and Asia, facilitating trade and investment flows across continents. It has excellent air and sea connectivity.
• Attractive Tax Regime: Mauritius offers a low corporate tax rate, no capital gains tax, no inheritance tax, and a vast network of Double Taxation Avoidance Agreements (DTAs) with over 46 countries, making it a tax-efficient jurisdiction.
• Skilled Workforce: The country has a well-educated and multilingual workforce, with English and French being commonly spoken, making it easier for international businesses to operate.
• Sound Legal System: Mauritius operates under a hybrid legal system, combining English common law and French civil law, providing a reliable and robust legal framework for businesses.
• Quality of Life: The high quality of life, pleasant climate, and beautiful natural environment make Mauritius an attractive destination for expatriates and their families.

Business Opportunities for Indians in Mauritius:

Mauritius has long been a significant partner for India, particularly due to historical ties, a large population of Indian origin, and robust economic cooperation, including the Comprehensive Economic Cooperation and Partnership Agreement (CECPA). This creates numerous opportunities for Indian investors.

• Financial Services: Indian financial institutions can leverage Mauritius’s position as an international financial center for wealth management, fund administration, and corporate structuring, especially for investments flowing into and out of Africa.

• Manufacturing: Opportunities exist for Indian companies to set up manufacturing units in Mauritius, particularly in areas like pharmaceuticals, textiles, light engineering, and food processing, serving both the local market and as a base for exports to Africa.

• ICT & Digital Services: Indian IT and BPO companies can establish operations in Mauritius, capitalizing on the skilled workforce and favorable business environment to serve regional and international clients.

• Healthcare & Education: Investment in specialized medical facilities, hospitals, and educational institutions (including technical and vocational training) can cater to the needs of Mauritius and potentially other African countries.

• Infrastructure: Indian companies can explore opportunities in infrastructure development, including smart city projects, renewable energy infrastructure, and public works.

• Tourism & Hospitality: Indian investors can look into developing hotels, resorts, and tourism-related services, catering to the growing number of tourists, including those from India.

• Imports & Exports: There is significant scope for increasing bilateral trade. Indian businesses can explore exporting a wider range of goods to Mauritius and importing specific products.

  • Major items which can be exported from Mauritius to India: Seafood and fish preparations, Sugar and confectionery, Knitted apparel and accessories, Medical devices, Vanilla, Aluminum alloys.
  • Major items which can be imported in Mauritius from India: Petroleum products, Pharmaceuticals, Cereals (e.g., rice), Cotton, Machinery, Electronic equipment, Spices, Iron or steel products.

Key Economic Indicators (Approximate, as of recent reports):

• GDP: ~$10 – $12 billion
• GDP Growth: ~4.5% – 7% (projected for 2024-2025, subject to global conditions)
• Ease of doing business rank: Historically very high (ranked 13th globally among 190 economies in terms of ease of doing business in prior reports)
• GDP per Capita: ~$9,000 – $10,000

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