There are various considerations for setting up a business in Mauritius.
This post, in particular, will explore:
- How to open a business in Mauritius
- Setting up a business in Mauritius cost
- Why do companies register in Mauritius?
- Pros and cons of starting a business in Mauritius as a foreigner
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How to open a business in Mauritius
The Business Registration Act of 2002 governs business registration and is applicable to all companies operating in the country.
Global Business Companies, partnerships, and sole proprietorships are among the several corporate structures Mauritius provides for the establishment of businesses.
Notably, majority of business categories have no minimum capital threshold.
Certain government bodies offer online registration services for new businesses.
You must provide certain documents as part of the registration procedure, including:
- proof of identity
- a proposed name for the business
- a registered address
- a business strategy
To operate lawfully after registering, you must get a trading license from the Industry, Commerce, and Consumer Protection Ministry.
It usually takes less than a week to complete the registration and licensing procedures, based on the kind of business you are creating.
A registration fee, which varies depending on the number of employees in the business, is necessary for persons registering as individuals.
Setting up a business in Mauritius cost
Subject to the services and the kind of business structure selected, the cost to form a firm in Mauritius can vary from about $800 to just under $4,000.
Setting up an offshore company is accessible to business owners with little initial expenditure since there is no minimum capital specifications.
Why do companies register in Mauritius?
Competitive company tax rates in Mauritius are reportedly 15%; however, for some operations, primarily export-related ones, they might be as low as 3%.
Comparing this to many other countries where there can be additional taxes like capital gains tax or higher tax rates makes it advantageous.
Yet, establishing a company in other well-known offshore hubs, such as Panama, may come with more complicated legal requirements and initial setup expenses.
Mauritius imposes renewal charges of about $2,600 following the initial year, which cover compliance audits and secretarial upkeep for the company.
This may be less than continuing expenses in other locations where more severe regulatory standards may result in greater yearly charges.
Pros and cons of starting a business in Mauritius as a foreigner
Benefits of Setting Up a Business in Mauritius
- Thanks to advantageous double tax deals with numerous nations, Mauritius enjoys a low tax system with no capital gains tax.
- Situated in the Indian Ocean, it provides access to Asia, Africa, and the Middle East.
- Foreign investment finds the nation appealing due to its reputation for a stable economy and helpful government.
- Multilingual experts are readily available, and English is a commonly spoken language.
Risks of Setting Up a Business in Mauritius
- The small size of the island nation limits the potential for expansion for several sorts of businesses due to the confined market.
- The economy is mostly dependent on tourism, agriculture, and textiles. These are all quite susceptible to changes in the state of the world economy.
- Despite the usually simple process, firms still need to navigate local laws and secure the required permits, which might take some time.
- Despite advancements, certain infrastructure sectors might not match the benchmarks of more developed nations, which could have an impact on operations and logistics.
- Cultural differences and regional business customs may present difficulties for foreign business owners and could have an influence on operations.
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Adam es un autor reconocido internacionalmente en temas financieros, con más de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.
