Doing business in Mauritius

2016
In association with:

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Contents
Introduction .........................................................................................................................................................................................3

– Country profile...........................................................................................................................................................................4

Legal overview ............................................................................................................................................................................ 5

Conducting business in Mauritius............................................................................................................................................. 10

Tax system ................................................................................................................................................................................ 15

Labour ....................................................................................................................................................................................... 19

Audit .......................................................................................................................................................................................... 22

Trade .......................................................................................................................................................................................... 23

Finance ...................................................................................................................................................................................... 27

Infrastructure ............................................................................................................................................................................. 28

This Guide has been prepared jointly by HSBC Bank (Mauritius) Limited and Grant Thornton for the purposes of providing a high-level general overview of the business
environment in Mauritius for the information of businesses who may be interested in transacting or investing in Mauritius. Any transaction or investment in Mauritius,
however, should only be undertaken based on professional advice specific to such transaction or investment.
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Introduction
Mauritius is an island situated in the centre of the Indian Ocean around 2,000 kilometres off the south east coast
of Africa. It is strategically located at the crossroads of Asia and Africa with easy access to both continents.
Since gaining independence in 1968, Mauritius has developed from a low-income, agriculturally-based economy
to a diversified economy that now comprises textiles, tourism, information and communications technology,
financial and business services, seafood and real estate.

Mauritius’s economy has achieved Mauritius, a Fast Track Committee • A well regulated and developed
steady and strong growth over the has been setup to expedite the financial sector
last few decades. The annual real processing of permits for all big
• Exchange control with free
GDP growth rate for 2015 was impact projects. Alongside a
repatriation of profits, dividends
forecast to be 3.46 per cent. At number of incentives offered by the
government, Mauritius offers the and capital
present, the economy is dominated
following advantages to investors: • An extensive network of
by services which comprise
73.4 per cent of GDP, while 43 tax treaties and 26 Investment
• Social, political and economic Promotion and Protection
the manufacturing industry and
stability Agreements
agriculture represent 22 and 4.5 per
cent respectively. • A strong and independent legal
system with the Privy Council as While this guide makes reference to
the ultimate Court of Appeal some of the most common issues
Mauritius pursues a liberal and open
economic policy that welcomes • A well-developed infrastructure investors might face, it must be
and encourages foreign investment including road, airports and IT noted that certain industries, such as
in the majority of sectors of the • A key member of regional sugar production and the television
economy. Furthermore, Mauritius economic blocs such as African broadcasting sector, are subject
ranked 32nd in the World Bank’s Union, Indian Ocean Rim, to special regulation and therefore
Ease of Doing Business Index for COMESA & SADC companies wishing to invest in this
2016 and first for Africa. Foreign • Skilled and bilingual labour force area should seek legal advice.
investors are afforded the same • A favourable time zone to service
rights as domestic investors and US, Europe, Middle East and The information in this publication is
to further facilitate investment in Asia markets current at January 2016.

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Country profile
Capital City Port Louis
Area 2,040 sq. km
Population 1.339 million
Language English is the official language, although French and Mauritian Creole are
also spoken.
Currency Mauritian Rupee (MUR)
International dialling code + 230
National Holidays 2016 1 January – New Year
2 January – New Year
24 January – Thaipoosam Cavadee
1 February – Abolition of Slavery
8 February – Chinese Spring Festival
7 March– Maha Shivaratree
12 March – National Day
8 April – Ugaadi
1 May – Labour Day
6 July – Eid-Ul-Fitr*
15 August – Assumption Day
6 September – Ganesh Chaturhi
30 - October – Divali
2 November – Arrival of Indentured Labourers
25 December – Christmas Day
* Muslim festivals are timed according to local sightings of the moon,
therefore the dates given above are approximations
Business and Banking hours Businesses: Monday to Friday – 08:30 to 17:00
Banks: Monday to Thursday – 0
 9:00 to 15:15pm and
09:00 to 17:00pm on Fridays
Stock exchanges Stock Exchange of Mauritius
Political structure Parliamentary democracy
Doing Business rank 2016 32

Ease of Doing Business

Topics 2016 rank 2015 rank Change in rank

Starting a business 37 29 -8
Licenses and Permits 35 74 39
Getting Electricity 41 39 -2
Registering property 99 98 -1
Financing 42 36 -6
Protecting Investors 29 27 -2
Paying Taxes 13 13 No change
Trading Across Borders 66 66 No change
Enforcing Contracts 27 28 1
Resolving Insolvency 39 36 -3

Source: World Bank Group (Doing Business)

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Legal overview
Political and legal system of appeal is the Judicial Committee
Mauritius is a Republic within the of Privy Council in England.
British Commonwealth. Mauritius
is a democracy based on the The main sources of law in Mauritius
Westminster model whereby are the Constitution, the statutes,
power is separated into three the Criminal Code, the Civil Code,
distinct branches, as set out by the Commercial Code, the Code
the Constitution of Mauritius: of Civil Procedure, case law and
the legislative, the executive and international treaties.
the judiciary.
Data protection
The executive branch comprises Data protection provisions in
the government of Mauritius. The
national government is made up of
Mauritius are governed by the
Data Protection Act 2004, which
The procedural
the Council of Ministers, who are
appointed and headed by the Prime
came into operation in February
2009. Compliance with the Data
law in criminal
Minister. The Prime Minister has full
executive power and is appointed by
Protection Act is regulated by the
Data Protection Office, which and civil litigation
the President. is also responsible for bringing
enforcement actions. The Data is based on the
The legislative branch comprises
the President, Vice President
Protection Act applies to all data
controllers present in Mauritius British common
and the speaker of the National
Assembly. The National Assembly
comprises 70 members of which
and the Data Protection Office
is headed by the Data Protection law while the
62 are elected by universal suffrage
every five years (60 from 20
Commissioner.
substantive
Under the Data Protection Act 2004,
three-member constituencies on
the island of Mauritius plus two
personal data is defined as “data law is derived
which relates to an individual who
from the single constituency of
Rodrigues). The President is the
can be identified from those data” from the French
or “other information, including an
Head of State who is elected by
a simple majority of the National
opinion forming part of a database, Napoleonic
whether or not recorded in a
Assembly; the President enjoys a
largely ceremonial role. material form about an individual code.
whose identity can be reasonably
The judicial branch comprises ascertained from the data,
the Supreme Court, the Court of information or opinion”.
Rodrigues, the Intermediate Court,
the Industrial Court, the District Sensitive personal data comprises
Courts, the Bail and Remand Court, information regarding a data
the Criminal and Mediation Court subject’s racial or ethnic origin,
and the Commercial Court. The political opinion or adherence,
Chief Justice is head of the judiciary. religious belief or other belief of
Independence of the judiciary a similar nature, membership of
is set out in the Constitution. a trade union, physical or mental
Mauritius has a ‘hybrid’ legal health, sexual preferences or
system; combining both the civil practices, the commission or
and common law practices. The alleged commission of an offence
procedural law in criminal and civil or any proceedings for an offence
litigation is based on the British committed or alleged to have been
common law while the substantive committed by him and the disposal
law is derived from the French of such proceedings or the sentence
Napoleonic code. The Highest Court of any court in such proceedings.

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The Data Protection Act 2004 (DPA) data protection officer, for the to payment of any outstanding
shall apply to a Data Controller purposes of registration with the Mauritian taxes.
who (a) is established in Mauritius Commissioner, a compliance person
and processes data in the context will need to be consigned. Money laundering regulations
of that establishment or who (b) Mauritius has enacted anti-money
is not established in Mauritius but Data controllers are permitted to laundering/combating the financing
uses equipment in Mauritius for collect and process personal data of terrorism (AML/CFT) legislation to
processing data, other than for the provided the following conditions deal with corruption, fraud, financial
purpose of transit through Mauritius. are met: crime, money laundering and
terrorism activities. These include,
A data controller falling under (b) • The data subject provides consent namely, the Financial Intelligence
shall nominate, for the purpose • The data controller requires the and Anti Money Laundering Act
of the Data Protection Act 2004, data to enter into or carry out a 2002 (FIAMLA), the Prevention
a representative established in contract to which the data subject of Terrorism Act 2002 and the
Mauritius (a person who is ordinarily is a party Prevention of Corruption Act 2002.
a resident in Mauritius and who The Financial Intelligence Unit (FIU)
carries out data processing activities • The data controller requires the
was set up with enactment of the
through an office, branch or agency data in order to take the steps
FIAMLA in 2002.
in Mauritius). required by the data subject prior
to entering into a contract
Under Section 14 of the FIAMLA
There is a register of data controllers • The processing of the data (2002), banks, financial institutions,
(who have to register themselves) protects the data subject’s cash dealers or members of relevant
known as the data protection vital interests professions must report to the
register, which is maintained by the • The processing of the data is FIU on any transaction which they
Data Protection Office. required for a legal obligation have reason to believe may be a
• The processing of the data is suspicious transaction.
An application for registration as
required for the administration
a data controller shall be made in A suspicious transaction is defined
of justice
writing to the Commissioner and the as any transaction which:
person shall furnish such particulars • The processing of the data is for
as requested under section 35 public interest
• Gives rise to a reasonable
of the Data Protection Act 2004,
The processing of sensitive personal suspicion that it may involve:
including name and address, a
description of the personal data data is subject to an additional list of –– The laundering of money or the
being, or to be processed by or on conditions which include ensuring proceeds of any crime
behalf of the data controller, and of that processing does not involve –– Funds linked or related to, or to
the category of data subjects, to disclosure of the personal data. For be used for, terrorism or acts
which the personal data relate, the all types of information, the data of terrorism or by proscribed
purpose for which the personal data controller must, at least, inform the organisations, whether or
are being processed, etc. data subject of the identity of the not the funds represent the
data controller and the purposes of proceeds of a crime
Any data controller who knowingly the processing of his/her data. • Is made in circumstances of
supplies false information on unusual or unjustified complexity
application shall commit an Data controllers must implement
• Appears to have no economic
offence and be liable to a fine not appropriate security measures to
justification or lawful objective
exceeding MUR100,000 and to prevent the unauthorised access,
an imprisonment for a term not alteration, disclosure and destruction • Is made by or on behalf of a
exceeding two years. of any personal data. person whose identity has
not been established to the
The obligations of data controllers Exchange controls satisfaction of the person with
are clearly stipulated in the DPA Officially, Mauritius abolished whom the transaction is made
2004 as well as the rights of the exchange controls in 1994. • Gives rise to suspicion for any
data subjects. However, repatriation of foreign other reason
investment and the resulting profits
While there is no requirement can be subject to proof of the Financial institutions must take
for organisations to appoint a origin of money, and also subject reasonable measures to ensure

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that neither their institution nor not exceeding MUR2 million or a and Trademarks Act 2002, the
their services are capable of being term of imprisonment not exceeding layout Designs (Topographies)
used to commit or facilitate the 10 years. of Integrated Circuits Act 2002,
commission of a money laundering the Geographical Indications Act
offence. Furthermore, financial Intellectual Property Rights 2002. However the Layout Designs
institutions have a duty to verify In Mauritius, the legislative (Topographies) of Integrated Circuits
the true identity of the customers framework for Intellectual Property Act 2002 and the Geographical
and other persons with whom they Rights (IPR) comprises: the Indications Act 2002 have not yet
Copyright Act 1986, the Patent Act been proclaimed.
conduct transactions. In addition,
1875 and the Trademarks Act 1868
they are required to adopt internal
being the oldest legislation. The IPR The bodies responsible for the
reporting procedures, including
enforcement mechanism took a new enforcement of IPR comprise:
the appointment of a Money
turn in 1995 when the TRIPS (Trade the Industrial Property Office,
Laundering Reporting Officer and Related Aspects of Intellectual International Trade Division of
to implement internal controls Property Rights) Agreement of the the Ministry of Foreign Affairs,
and other procedures to combat World Trade Organisation came Regional Integration and
money laundering and the financing into effect. In order to conform the International Trade, Industrial
of terrorism. country’s legislation to the principles Property Tribunals, the Mauritius
and obligations laid down in the Society of Authors, the Ministry of
As per Part II of the FIAMLA (2002), TRIPS, new pieces of legislation Arts and Culture and the Customs
any person convicted of money were adopted, namely the Copyright Department of the Mauritius
laundering shall be liable to a fine Bill, the Patent, Industrial Designs Revenue Authority.

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COPYRIGHT
Copyright can protect both folklore and traditional cultural expressions. Folklore includes folk tales, folk poetry,
instrumental folk music, folk dances and plays, artistic forms or rituals and production of folk art. Traditional cultural
expressions include any form or artistic and literary expression in which traditional culture and knowledge are embodied
and which is intergenerational.

Protection Copyright is granted to eligible work automatically; there is no need for registration under Mauritian
granted law. Copyright does not protect ideas for work, it is only when the work itself is fixed that copyright
automatically protects it. Copyright provides the owner with moral and economic rights: namely
reproduction, distribution and performance rights, in addition to the right to claim authorship.

Enforcement Copyright is infringed by any person who, without permission from the owner, publishes,
reproduces, distributes, performs, communicates or broadcasts, imports or has in his possession
in the course of trade any apparatus used for the making of infringing copyrighted works, of
the material in question. Furthermore, an offence will be committed if someone intentionally or
recklessly deprives the copyright owner of his rights for gain.
On conviction, any person who commits an offence may be liable to a fine not exceeding
MUR300,000 and to imprisonment for a term not exceeding two years or on a second offence, a
fine not exceeding MUR500,000 and a term of imprisonment not exceeding eight years.

Duration Economic and moral rights are protected during the lifetime of the author and for 50 years after
his death.
For works of joint authorship, the rights are protected during the life of the last surviving author and
for 50 years after his death.
For audio-visual works, the rights are protected for 50 years from the date on which the work was
made or first made publicly available.
For anonymous works, the rights are protected for 50 years from the date on which the work was
made or first made publicly available by publication or by any other means, whichever date is the
latest, where the author’s identity is revealed or is no longer in doubt before the expiration of the
said period.
For a work of applied art, the rights shall be protected for 25 years from the making of the work.

PATENTS
Patents protect inventions which can be applied in an industrial environment. For a patent to be granted, the invention
must be new, have an inventive step which is not obvious to someone with experience in the subject and is capable of
being used in some kind of industry. Pure discoveries and scientific or mathematical formulae cannot be patented.

Protection Patent protection is obtained via a national filing; the application is subject to formal examination.
granted A patent gives its owner the ability to take legal action to stop others from: the making of a product
or the use of a process, which is the subject-matter of the patent, selling anything incorporating the
subject-matter of the patent or inducing third parties into any of the above, without the inventor’s
permission.

Infringement Patent protection is obtained via a national filing; the application is subject to formal examination.
A patent gives its owner the ability to take legal action to stop others from: the making of a product
or the use of a process, which is the subject-matter of the patent, selling anything incorporating the
subject-matter of the patent or inducing third parties into any of the above, without the inventor’s
permission.

Duration 20 years from the filing date. The maintenance of a patent is subject to annual maintenance fees,
payable to the Controller for each year, following the year of the filing date.

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TRADE MARKS
A trade mark must be a sign capable of distinguishing goods and services of one undertaking from those of another
undertaking. Those signs can be: words, personal names, designs, letters, numeral slogans, sounds, smells, signs and
distinctive colours.

Protection The owner can obtain protection in Mauritius by filing the trade mark at the Mauritius Industrial
granted Property Office through a local agent. The application procedure includes a formal examination of
the trademark and a trademark search. Following registration, the trademark is published in the
official gazette where there is an opposition period of three months.
Registration of a trademark provides the holder the exclusive right to use the trademark in the
territory of Mauritius.

Infringement Some examples of infringement of a trade mark are:

• Using an identical or similar trade mark for identical or similar goods and services to a registered
trade mark creating a likelihood of confusion on the part of the public
• Where a mark has a reputation, infringement may arise from the use of the same or a similar
mark which damages or takes unfair advantage of the registered mark

Duration 10 years (registration can be renewed for further periods of 10 years upon payment of a
renewal fee).

DESIGNS
In the Patent, Industrial Designs and Trademark Act 2002, a design is legally defined as being “any composition of lines
or colours or any three-dimensional form, or any material, whether or not associated with lines or colours... provided that
such composition, form or material – (a) gives a special appearance to a product of industry or handicraft, (b) can serve as
a pattern for a product of industry or handicraft; and (c) appeals to and is judged by the eye”.

Protection Registering a design gives the owner a property right over the design; it is protected if the design
granted in question is new and has individual character. Holding a design right provides the owner the
exclusive right to use it and to prevent any third party using it without consent.

Infringement A design right is infringed by an unauthorised person making an article exactly or substantially
similar to the protected design or by making a design document for the purpose of making
unauthorised copies.

Duration Once obtained, a design right is protected for a period of five years from the date of filing of the
application. It can then be renewed for another period of five years.

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Conducting business
in Mauritius
Business entities • The name of the company if resolutions which would
There are different types of business • The class of shares held by otherwise require the holding of
entities that can be used to operate that person a meeting are passed by means
in Mauritius. Nevertheless, a of entry in the minute book of the
• The number of shares held by
company is the most common form company under section 117
used in Mauritius. The Companies that person
• Subject to its constitution,
Act 2001 applies to all companies
No person shall be appointed, or may remove a director from
whether domestic or those with
hold office, as a director of a public office by special resolution under
a global business licence. Other
types of business entities include company if he is over 70 years section 138(2)
partnerships, sole proprietorships, of age. • May dispense with the
foundations and foreign branches. provision of an annual report by
A person who is a director of a unanimous resolution
Company public company who has a relevant
• May by unanimous agreement
Companies can be formed as a interest in any shares issued by the
among the shareholders dispense
public company, a private company, company shall forthwith disclose
to the Board the number and class with the observance of any of the
a small private company or a one
of shares in which the relevant matters referred to in section 272
person company. Furthermore,
companies may be licensed as interest is held and the nature of the
relevant interest and ensure that the Small Private Company
a Domestic Company or Global
particulars disclosed to the Board A company shall be a “small private
Business Companies (GBC).
are entered in the interests register. company” where:
Types of company
Public Company Private Company • It is a private company; the
Every company shall be a public A private company: turnover of which, in respect of its
company unless it is stated in its last preceding accounting period,
application for incorporation or • Shall not have more than 25 is less than MUR10 million
its constitution that it is a private shareholders; • It is not a company holding a
company. Public companies cannot –– Where two or more of its Category 1 Global Business
have more than 25 shareholders. shareholders hold one or more Licence
shares jointly they shall be
The application for incorporation deemed to be one shareholder A small private company shall not
shall state the particulars of –– In computing the number be required to appoint a company
any business occupation and of 25, no account shall secretary.
directorships of any public company be taken of persons who
or subsidiary of a public company are in the employment of A small private company is required
held by each director. the company, and who, to file a financial summary or
having been formerly in the its financial statements with
A public company or subsidiary employment of the company the Registrar. However, a small
or holding company of a public were while in that employment private company is not required to
company shall maintain a register and have continued, after prepare and present its accounts in
of substantial shareholders. In the determination of that accordance with the International
this register, the company must employment, to be members of
enter the particulars in respect of Accounting Standards. A small
the company private company need not appoint
every share held by a substantial
shareholder or in which directly or an auditor or where it does appoint
• Shall not make any offer to the an auditor, that person need
indirectly he has an interest.
public to subscribe for its shares not be a qualified auditor unless
or debentures
A public company shall, within the resolution referred to in that
28 days, following the issue or • May provide in its constitution that subsection requires this.
registration of a transfer of shares the right to transfer its shares is
in the company send a share restricted One-Person Company
certificate to every holder of those • May dispense with the holding A company shall be a “one-person
shares stating: of shareholders meetings company” where:

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• It is a private company in which Global Business Companies (GBCs) carry out most business activities
the only shareholder is also the are classified into two categories but only with non-residents and in
sole director of the Company based on the type of licence – GBC1 currencies other than the Mauritian
• The single shareholder is not a and GBC2. rupee. However, it is not tax resident
corporation in Mauritius and therefore cannot
As per the Financial Services benefit from the DTA network. It
The application for incorporation Commission’s (FSC’s) definition, is completely exempt from paying
must provide the full name and the constitutive elements of global taxes in Mauritius.
residential address and occupation businesses are now:
of the person nominated by A GBC2 is subject to a flexible
the proposed director to be the • A resident corporation legal regime. Companies that are
secretary of the company in the • Conducting business outside engaged in invoicing, marketing and
event of the death or mental Mauritius international trading activities will
incapacity of the sole shareholder often use a GBC2 structure.
and director. If the nomination is not Establishing whether the business
made at the time of incorporation, is conducted exclusively outside Global Business companies are
this must be filed with the Registrar Mauritius is subject to a number of regulated by the Financial Services
within six months of the company requirements and tests. Commission which is mandated
being in operation. under the Financial Services Act
A Global Business Company 2007 to:
The person nominated by a one Category 1 (GBC 1) - A GBC1 can
person company shall assume office carry out any business activity, • Ensure the orderly administration
as secretary of the company upon including: asset management, of the financial services and global
the death of the sole shareholder credit finance, custodian services business activities
and director. They will have the (non-Collective Investment • Ensure the sound conduct of
responsibility of calling a meeting Schemes (CIS)), distribution of business in the financial services
of the heirs or other personal financial products, factoring, leasing, sector and in the global business
representative of the deceased for occupational pension schemes, sector
the purpose of appointing a new pension fund administration, • Elaborate policies which are
director or directors. pension scheme management, directed to ensure fairness,
retirement benefits schemes, efficiency and transparency of
Global Business Companies superannuation funds, registrar financial and capital markets in
Mauritius is recognised as a leading and transfer agencies, treasury Mauritius
regional financial centre. The country management and such other
• Study new avenues for
has embarked upon a new reform financial business activities as
development in the financial
programme underpinned by an open may be specified by the Financial
services sector, to respond to
economic philosophy. The objective Services Commission. A GBC1 is
new challenges and to take full
is to boost its appeal to international considered to be a tax resident in
advantage of new opportunities
investors and make Mauritius Mauritius and is entitled to claim
for achieving economic
the financial hub of the African benefits under the extensive Double
sustainability and job creation
region and an ideal springboard for Taxation Agreement (DTA) network
investment and doing business in of Mauritius. Income is taxable at • Ensure soundness and stability of
Africa, the Middle East and Asia. a maximum effective rate of three the financial system in Mauritius
With its specialist Global Business per cent. • Work out objectives, policies and
legislation, Mauritius enables priorities for the development of
corporate and commercial clients A Global Business Company the financial services sector and
to expand their global footprint. Category 2 (GBC 2) – A GBC2 can global business

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 GBC 1 GBC 2
Licensing Licensing conditions depend on the activity Standard licensing conditions
conditions
Financial Submission to FSC of Audited Financial To file with FSC, financial summary within six
statements Statements (AFS) required within six months months of financial year end
of financial year end or three months for those
holding certain types of financial services
activity licence
Taxation Taxable entity in Mauritius and may as such Not a taxable entity in Mauritius and
qualify for Tax Residence consequently not entitled to Tax
Certificate issued pursuant to DTAs to which Residence Certificate
Mauritius is a party
Beneficial Mauritian resident may hold beneficial interest Mauritian resident may not hold beneficial
interest interest. However, where a Mauritian resident
proposes to hold shares in a GBC 2, the latter
shall be required to demonstrate to the FSC,
that the Mauritian resident does not hold any
”management and control” in that GBC2
Management May not hold shares in a Management Company May not hold shares in a Management Company
company shares
Immoveable May hold immovable property in Mauritius if May not hold property in Mauritius
property appropriate approval has been obtained from
the Prime Minister’s Office pursuant to the
Non-Citizens (Property Restrictions) Act
Shares in May hold shares in a Category 2 Global Business May hold shares in a Category 1 Global
GBC 1/GBC 2 Company except where shareholders or Business Company
beneficial owners are Mauritian resident

The types of company that can be incorporated are as below:

Company limited The liability of its shareholders is limited by its constitution to any amount unpaid on the shares
by shares respectively held by the shareholder.
Company limited The liability of its members is limited by its constitution to such amount as the members may
by guarantee respectively undertake to contribute to the assets of the company in the event of it being wound up.
Company limited The liability of its members who are shareholders, is limited to the amount unpaid, if any, on the
by shares and shares respectively held by them and who have given a guarantee, limited to the respective amount
guarantee they have undertaken to contribute, from time to time, and in the event of it being wound up.
An unlimited No limit placed on the liability of its shareholders.
company
A foreign A body corporate that is incorporated outside Mauritius and that has a place of business or is
company carrying on business in Mauritius.
Limited life The constitution limits the life or duration of the company to a period not exceeding 50 years from
company the date of its incorporation. However, this period may be extended to a maximum of 150 years.

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Formation and financial position of the the partners, setting out the affairs
In order to form a domestic company. All companies, except for of the partnership and the conduct
company, the following are required: domestic private companies with of its business. The general partner
turnover of less than MUR50 million has unlimited liability for the debts
• A name (the name must be must have their financial statements and obligations of the limited
available before incorporation) audited and subsequently file these partnership.
• One or more shares with the Registrar of Companies.
A limited partnership may hold
• One or more shareholders or
members Dissolution of a Company a GBL 1 or a GBL 2. A limited
A company which has already partnership holding a GBL 1 must
• One or more directors (at least
discharged all its liabilities and have a management company as its
one of which should be resident in
assets is dissolved through Section registered agent and must submit its
Mauritius)
309(1) (d) of the Companies Act audited financial statements within
2001. Otherwise, a liquidator is six months of its balance sheet date
Domestic companies are
appointed for voluntary winding up to the FSC.
incorporated within 24 hours of
of the company under Section 100
submission of application and the
(2) (b) of the Insolvency Act 2009. For a domestic partnership, an
required documents. Certificates
application for the formation of the
of incorporation for category 1
Branch of a foreign company partnership must be made to the
and category 2 Global Business
A foreign company must register Registrar of Limited Partnership
Companies are delivered after the
a branch in Mauritius within one whilst that for a GBL 1 or GBL 2 to
approval from the Financial Services
month of establishing a place of the Registrar and the FSC.
Commission is obtained. This
business in Mauritius. Registration
usually takes two working weeks
for a Category 1 Global Business
is obtained from the Registrar of Joint ventures
Companies upon submission of the They are usually governed by a
Company and usually three working
required documents. written agreement which may or
days for a Category 2 Global
Business Company. may not be drawn before a notary.
Sole proprietorships
Capital requirement It is a one person owned business. Trusts
There is no minimum capital Every person who carries on Trusts in Mauritius are governed
requirement in Mauritius. business in Mauritius must make by the Trust Act 2001, the
an application to the Registrar of Mauritian Civil Code and the
Management Business for registration of his common law. There are various
All companies are required to have a business name and for a Business types of trust which can be set
minimum of one director. A GBC 1 is registration Card. up such as discretionary trusts,
required to have a minimum of one charitable trusts, employee
director who is ordinarily resident Partnerships benefit trusts, asset protection
in Mauritius and is a natural person A partnership is an association trusts, non-charitable trusts and
whilst a GBC 2 is allowed to have a formed by two or more partners for purpose trusts amongst others.
non-resident and corporate director. a specific purpose. The duration of a trust other than a
However for a GBC1 to be able to purpose trust should not exceed 99
apply for a Tax Residence Certificate General partnerships years. However, the duration of a
there is a requirement to have at In a general partnership, the non-charitable purpose trust should
least two resident directors. partners have unlimited liability for not exceed 25 years and that of a
the debts and obligations of the charitable trust may be perpetual.
The Companies Act 2001 also partnership.
requires all companies other than A GBL 1 licensed trust has to
small private companies and a GBC Limited partnerships have its accounts audited and filed
2 to have a secretary and to be The limited partnership is governed within six months of year end. A
ordinarily resident in Mauritius. by the Limited Partnerships Act non-resident trust only needs to
2011. A limited partnership consists have its accounts prepared.
Filing requirements of one or more general partners
All companies must maintain and one or more limited partners. Foundations
statutory books and records that There must be a partnership Foundations are governed by the
adequately show the transactions agreement which is binding upon Foundations Act 2012. A foundation

13
may be used for charitable or Investment Schemes (CIS) and
non-charitable purposes, collection closed-end funds known as private
of royalties, pre-nuptial agreements equity funds.
and investment holdings amongst
others. It has a separate legal entity Open-ended funds
from the members of the foundation An open-ended fund also known as
if the Charter is registered with a CIS is a scheme constituted as a
the Registrar of Foundations. It is company, a trust or any other legal
mandatory for foundations to have a entity prescribed or approved by the
charter signed by all the founders. In Commission whose sole purpose
addition, all foundations are required is the collective investment of
to have a secretary who may either funds in a portfolio of securities, or
be a management company or
person resident in Mauritius and
other financial assets, real property
or non-financial assets as may …all foundations
who is authorised by the FSC. be approved by the Commission.
The operation of open-ended are required
Protected Cell Company funds is based on the principle
Protected cell companies (PCCs) of diversification of risk. The to have a
in Mauritius are governed by the participants in an open-ended fund
Protected Cell Companies Act 1999. do not have day to day control over secretary who
A PCC is a company which has a the management of the property.
single legal entity but which may may either be
be segregated into cells such that Closed-end funds
the assets and liabilities of each A closed-end fund, commonly a management
Cell are legally separate from the known as a private equity fund,
assets and liabilities of any other is an arrangement or a scheme, company or
cell. PCCs can only create new cells other than a CIS constituted in such
with the approval of the Financial legal form as may be approved by person resident
Services Commission. the commission and whose object
is to invest funds, collected from in Mauritius
PCCs are mainly used for subscribers during an offering made
the following activities: asset under the Securities Act or from and who is
holding, structured finance sophisticated investors, in a portfolio
business, collective investment
scheme and closed-end funds,
of securities, or in other financial
or non-financial assets, or real
authorised by
specialised collective investment
schemes and closed-end funds,
property, as may be approved by
the commission. Closed end funds
the FSC.
insurance business and external usually have a fixed share capital and
pension schemes. typically restrict investors rights to
call for their shares to be redeemed
A PCC may be structured as a fund. at net asset value by the fund.

The important feature of the PCC Unlike a CIS, a closed-end fund:

is that there is legal segregation
of assets and liabilities for each • May not allow redemption at
cell and the PCC is useful for any option of investors
investment entity with various • Need not operate on risk
investment portfolios where each diversification principle
has its own investment.
• May allow investors to
exercise control on day to day
Funds
management
The law in Mauritius provides
for two main categories of
funds in Mauritius: open-ended
funds also known as Collective

14
Tax system
The administration of Income Tax Annual depreciation allowances credit is limited to the amount of
is governed by the Income Tax rates range from five per cent to 50 Mauritius tax on that income.
Act 1995. The Mauritius Revenue per cent depending on the asset
Authority is the agency responsible type. 100 per cent allowance is Administration
for the management, operation and available on plant and machinery The tax year runs from 1 July to
enforcement of the revenue laws costing less than MUR50,000 and 30 June of the following year.
in Mauritius. on aircrafts and aircraft simulators Nevertheless, companies can opt
leased by a company engaged in to choose the accounting year;
Corporate Income Tax aircraft leasing. however, this must not exceed
Scope 12 months.
Corporate Income Tax is levied on Exempt income
all companies, trusts, trustees of • Dividends paid by a company All companies are required to submit
unit trust schemes and non-resident resident in Mauritius their income tax returns and pay the
societés (partnerships) based on income tax due six months after
• Bank interest on call and deposit
their residency. Residents are the accounting year end. It should
accounts received by a GBC from
taxed on worldwide income and however be noted that where the
a Mauritian bank
non-residents are taxed only on accounting period ends in the month
Mauritius-source income. However, • Income earned by companies of June, the due date for submission
all income derived from overseas by in Freeport Zone except income of the return and payment of tax
an individual resident in Mauritius is earned by these companies from is two days, excluding Saturdays
taxable to the extent it is remitted the local market and public holidays, before the end
to Mauritius. of December.
Capital gains
In Mauritius, there is a flat tax rate of No tax is levied on capital gains in In addition, all companies are
15 per cent on chargeable income. Mauritius. required to file quarterly returns
of income (APS) statements and
A Category 1 Global Business Groups pay tax accordingly. However,
Company (GBC 1) is subject to a There is no relief for group losses. companies which in the accounting
headline tax rate of 15 per cent on Furthermore, consolidated returns year immediately preceding the
chargeable income. However, there are not permitted. commencement of that APS
is a Presumed Tax Credit of 80 quarter, did not have gross income
per cent, resulting in a Maximum Losses exceeding MUR10 million or had no
Effective Tax Rate of three per cent. Unutilised business losses may chargeable income are not required
be carried forward for set-off to submit APS statements.
A Category 2 Global Business against future income (other than
Company (GBC 2) is exempt from emoluments) provided there is Withholding tax
tax as it is considered non-resident not more than 50 per cent change In certain cases, the payer is
for tax purposes and does not in shareholding. required to deduct tax at the time
qualify for treaty benefits. payment is made to or credited to
The limit to carry forward losses is the account of the payee. Different
Taxable income five years. However, the time limit withholding tax rates apply to
Chargeable income is computed of five years does not apply for different types of payments and
as the difference between gross the carry forward of any amount these range from 0.75 per cent to
income and allowable deductions. of loss which is attributable to 15 per cent. Reduced withholding
Allowable deductions include annual allowances. tax rates apply to treaty countries
expenses incurred in the production based on the respective Double
of income, losses, bad debts Dividend income Taxation Agreements.
written off (subject to certain Dividends paid by a
conditions) and annual allowances Mauritius-resident company are There is no withholding tax on
(in lieu of depreciation). It should be exempt from income tax. Foreign dividends paid by Mauritian
noted that not all expenses incurred dividends are taxable but foreign Companies. Moreover, GBC 1
are allowable by the Mauritius tax credit can be obtained for any companies are exempted from
Revenue Authority. foreign tax suffered. The foreign tax withholding tax on interest

15
payments and royalties to non-residents not carrying out Special levy for banks
any business in Mauritius. All banks are required to pay a special levy. The special
levy on income derived from banking transactions with
A typical 15 per cent withholding tax applies to interest non-residents and GBC 1 are as shown below:
unless specifically exempted. The rate of withholding tax
on royalties is as follows: Year of Assessment Special Levy Rates
commencing from
• Royalties payable to a resident 10 per cent
1 January 2014 and 3.4 per cent on book
• Royalties payable to a non-resident 15 per cent
1 January 2015 profit and 1.0 per cent on
operating income
Transfer pricing
There are no specific transfer pricing regulations in 1 July 2015 to 3.4 per cent on book
Mauritius. However, transactions between related parties 1 July 2017 profit and 1.0 per cent on
should be at arm’s length. operating income

Thin capitalisation The special levy on income derived from sources other
There are no specific thin capitalisation rules in than from the above transactions is as follows:
Mauritius. However, the Income Tax Act 1995 contains
anti-avoidance provisions. If a company has issued Year of Assessment Special Levy Rates
debentures to its shareholders and paid interests on those commencing from
debentures to the latter, the interest will be deemed to be 1 January 2014 and 10 per cent of chargeable
dividend paid. 1 January 2015 income

Controlled foreign companies (CFC) 1 July 2015 to 10 per cent of chargeable

There is no controlled foreign company legislation. 1 July 2017 income

Corporate Social Responsibility (CSR) As from Year of Assessment commencing on 1 July 2018
All companies except for GBC 1 are required to set up and in respect of every subsequent year of assessment,
a CSR fund equivalent to two per cent of its chargeable levy shall be calculated as 1.70 per cent on book profit and
income of the preceding year to implement an approved 0.50 per cent on operating income.
programme or to finance an approved NGO. Where the
amount spent is less than the amount provided under Foreign tax credits
the Fund, the difference should be paid to the Mauritius Unilateral credit relief
Revenue Authority (MRA) at the time the company Residents of Mauritius are eligible to a tax credit in respect
submits its income tax return.. of foreign tax paid on their foreign source income. The
foreign tax credit includes tax sparing credit and in the
case of dividends credit is also granted for underling tax
CSR is not applicable to:
charged on profits out of which the dividends are paid.
• A GBC 1
Tax sparing credit
• A bank in respect of income derived from When provisions have been introduced in the law of
Non-Residents or GBC the foreign country with a view to promoting industrial,
• An IRS company commercial, scientific, educational or other development
• A non-resident society, trust or a trustee of a unit in that country and, under those provisions, a lower rate
of tax has been imposed or income has been exempted
trust scheme

16
from tax, credit is allowed for the amount of foreign tax In addition to the above, by 1 January 2015, all GBC1s will
which would have been chargeable in the absence of have to meet at least one of the following criteria to satisfy
those provisions. the FSC that it is controlled and managed in Mauritius:

Tax treaties • The corporation has or shall have office premises

Relief for double taxation can also be claimed under any in Mauritius
tax treaty in place. • The corporation employs or shall employ at least one
person who shall be resident in Mauritius on a full time
All resident domestic companies are eligible to the various basis at administrative/technical level
tax reliefs that are available through these tax treaties. • The corporation’s constitution contains a clause
whereby all disputes arising out of the constitution shall
A GBC 1 may also benefit from these treaties upon be resolved by way of arbitration in Mauritius
obtaining a Tax Residence Certificate (“TRC”) from the
• The corporation holds or is expected to hold within
Mauritius Revenue Authority. In order to be considered a the next 12 months, assets (excluding cash held in a
tax resident, a GBC 1 must show that its central control bank account or shares/interests in another corporation
and management is in Mauritius. The requirements holding a Global Business License) which are worth at
considered by the FSC are as follows: least USD100,000 in Mauritius
• The corporation’s shares are listed on a securities
• The corporation has as at least two directors, resident in
exchange licensed by the FSC
Mauritius, of sufficient calibre to exercise independence
of mind and judgement • It has or is expected to have a yearly expenditure in
Mauritius which can be reasonably expected from any
• The corporation maintains its principal bank account in similar corporation which is controlled and managed
Mauritius at all times from Mauritius
• The corporation keeps and maintains, at all times,
accounting records at its registered office in Mauritius Personal Income Tax (PIT)
• The corporation prepares statutory financial statements Scope
and has such financial statements audited in Mauritius Mauritius residents are taxed on their worldwide income.
Non-residents are taxed only on Mauritius-source income.
• The corporation provides for meetings of directors to
Gross income includes wages, annuities, pensions,
include at least two directors from Mauritius
income from business, income from property, foreign
• The corporation which is authorised/licensed dividends, royalties, and interest. Allowable deductions
as a collective investment scheme, closed end include expenditure incurred in the production of
fund or external pension scheme, is administered income, losses, bad debts, annual allowances (instead
from Mauritius of depreciation).

17
A resident individual is entitled to an income exemption directly to the tax authorities. Nevertheless, all other types
threshold during an income year. The income exemption of income are self-assessed and individuals must make
thresholds in respect of income year from 1 July 2015 to quarterly payments and file annual tax returns.
30 June 2016 are as follows:
Returns have to be submitted by 30 September together
with remittance of amount payable. If returns are filed
Category Amount (MUR)
electronically, an extended delay up to 15 October is
Category A – An individual with 285,000 applicable. Separate assessments are compulsory for
no dependent married couples.

Category B – An individual with 395,000 Other taxes

one dependent Value Added Tax (VAT)
Category C – An individual with 455,000 VAT is a tax on the supply of goods and provision of
two dependents services. The standard rate of VAT is 15 per cent. The
threshold for VAT registration is an annual taxable turnover
Category D – An individual with 495,000 of MUR2 million. However, certain business activities
three dependents and professions (eg accountants, consultants, lawyers
or quantity surveyors) are required to register for VAT
Category E – A retired / 335,000
regardless of their turnover. In addition, a company may
disabled person with no dependent
also choose to apply for voluntary registration.
Category F – A retired / 445,000
disabled person with one dependent The filing requirement for VAT is as follows:

Individuals liable to Mauritian tax Annual Turnover of Returns Submission

A resident individual is defined as an individual who Taxable supplies
satisfies one of the following conditions: >MUR 10 million Monthly (within one month
of month end and return
• Has his domicile in Mauritius unless his permanent should be submitted
place of abode is outside Mauritius electronically)
• Has been present in Mauritius in that income year for a < MUR 10 million Quarterly (within 20 days
period of, or an aggregate period of, 183 days or more from end of quarter or
• Has been present in Mauritius in that income year and within 1 month from quarter
the two preceding income years for an aggregate period end where the return is
of 270 days or more electronically submitted)

Tax rates Inheritance tax

In Mauritius, there is a flat tax rate of 15 per cent on There is no inheritance tax in Mauritius.
chargeable income.
Land transfer tax
Tax returns Land transfer tax is levied on a deed of transfer of
Generally, tax on employment income is withheld monthly immoveable property at the rate specified in Part A of the
by the employer under the PAYE system and remitted second schedule of Land (Duties and Taxes) Act.

18
Labour
Labour in Mauritius is primarily may begin on any day of the week,
governed by the Employment Rights whether or not on a public holiday.
Act (ERA 2008). Nevertheless,
sector specific provisions are set out Overtime is defined as any time
in Remuneration Orders issued by worked beyond normal working
the Ministry of Labour. The Ministry hours. Overtime must be agreed
of Labour, Industrial Relations with the employee and an advance
and Employment is the supreme notice of 24 hours should be
authority which regulates labour given. Payment for overtime is
laws in Mauritius. calculated over a fortnight. Overtime
rates become applicable once
Employment agreement the employee has worked over
Employers and employees
will normally sign a contract
90 hours in a fortnight; overtime
is remunerated at 1.5 times the
After one year
of employment prior to the
commencement of an employment
notional rate per hour of work
performed and two times for work
of continuous
engagement. This should include job
title, duration of contract, conditions
on public holidays. If more than two service with
hours’ extra work is performed after
of work, wages, benefits, hours the normal days’ work, an adequate an employer, a
of work, annual leave, probation free meal or meal allowance (as
period, travel allowance and place specified in the Third Schedule of worker is entitled
of work. The written particulars the ERA 2008) is required.
of a work agreement (Section 8, to 22 days’ paid
ERA 2008) will be governed by the A worker shall be entitled to a
Second Schedule which prescribes rest day of at least 24 hours in annual leave and
additional specifications pertaining every period of seven consecutive
to the nature of activity, sex of days and where, by nature of 15 days’ paid
worker, date of birth of worker, place its operational requirements, an
of work, grade, class or category of employer operates on a seven day sick leave.
employment, etc. week, the rest day shall, at least
twice a month, be a Sunday unless
Minimum wage otherwise agreed by the worker and
There are no national minimum the employer.
wages applicable in Mauritius.
However, sector specific Every worker shall be entitled to a
Remuneration Orders may stipulate rest of not less than 11 consecutive
minimum wages for the different hours in any day.
category of workers in employment
in such sectors. After one year of continuous service
with an employer, a worker is
Not all sectors have a Remuneration entitled to 22 days’ paid annual leave
Order; in this case, there is no and 15 days’ paid sick leave.
minimum wage applicable and
no mandatory sector specific After six months of continuous
conditions of work. employment without absence
with the same employer, a worker
Working time and leave shall be entitled to one day of paid
The normal day’s work of an annual leave and one day of paid
employee, other than a part-time sick leave during each subsequent
worker or a watchperson shall month up to the twelfth month of
consist of 8 hours’ actual work and continuous employment.

19
There are 15 public holidays a year. Remuneration for • Wages earned for overtime under section 16
working on a public holiday is twice the notional rate per • Wages paid under sections 17,24, 27(1), (2), (2A) and
hour for every hour performed. (3),28, 30(1), (4) and (5)(a) and 31

In Mauritius, women are entitled to 12 weeks’ paid • Any sum of money, excluding commission, by whatever
maternity leave, while fathers are entitled to five days’ paid name called, paid to a worker, in respect of any work
paternity leave. performed by him, in addition to the basic wages agreed
upon between him and the employer and which is
Healthcare and benefits related to productivity. In Mauritius, the provision of an
Healthcare end of year bonus is compulsory by law
While there is no mandatory provision to provide medical
insurance to employees, every company that employs
No. of months of End of year bonus
10 or more workers shall make appropriate arrangements
continuous employment
for the medical and health requirements of the employees.
12 One month of salary based
Where a worker suffers injury or illness at work on December salary
necessitating his removal to his home or to a hospital
or other similar institution, the employer shall promptly <12 No. of months worked X
and at his own expense provide an appropriate means of Last Month Salary /12
conveyance for the worker.
Probation
Transport allowance
There is no specific provision in Mauritian labour law
In accordance with the Employment Rights Act 2008, if
pertaining to probationary periods.
the distance between a worker’s residence and his place
of work exceeds three kilometres, free transport or the
Dismissal
equivalent of the return bus fare must be provided.
Employment contracts can be terminated unilaterally,
or on agreement between employer and employee,
An employer shall, irrespective of the distance between
providing the correct notice periods are given.
a worker’s residence and his place of work, provide the
worker with free transport from the worker’s residence Furthermore, the employer can dismiss an employee on
to his place of work and from the worker’s place of work grounds of gross misconduct.
to his residence, where the worker is required by his
employer to attend or cease work at a time when no Notice period
public bus service is available. The typical notice period is 30 days, unless otherwise
specified in the employment contract. No notice period is
Where an employer provides a worker with a means of required in the case of dismissal for gross misconduct.
transport, the employer shall pay to the worker wages at
the normal rate in respect of any waiting time exceeding Employment protection legislation
45 minutes after he has stopped work. Various legislations exist for the protection of employees
including the Employment Rights Act 2008, the
End of year bonus Employment Relations Act 2008, the Occupation Safety &
Every worker that fulfils the following conditions is entitled Health Act 2005, the Data Protection Act 2004, the Equal
to an end of year bonus equivalent to one-twelfth of his Opportunities Act 2008 and sector specific Remuneration
earnings for that year: Orders amongst a few others.

• Takes employment during the course of a year Social security

• Is still in employment as at 31 December Social security in Mauritius is based on contributions
• Has performed a number of normal days’ work with to the National Pension Funds and the National
that employer, equivalent to not less than 80 per cent of Solidarity Fund.
the number of working days, during his employment in
that year National Pension Fund
Standard rate of contribution by employer = six per cent of
Under the provision, “earnings” means basic wages basic salary. Standard rate of contribution by employee =
and includes: three per cent of basic salary.

20
 National Savings Fund
The National Savings Fund provides a lump sum to every employee upon his/her
retirement at the age of 65, or earlier, or on his/her death or on medical grounds
or redundancy.

Every employer must pay a monthly contribution of 2.5 per cent of the basic
wage or salary of every employee, aged between 18 and 60. The employee
contributes one per cent towards “transitional unemployment benefit” in the
case that she/he loses their job.

Employment of non-resident employees

A work permit is a type of permit that allows a non-national only to work in

After one year Mauritius. As such, the non-citizen is also required to have a valid residence
permit. Applications for both a work permit and a residence permit should
therefore be made concurrently. Certain expatriates such as those employed at
of continuous Ministries, Embassies, University of Mauritius, etc. may be granted a Certificate
of Exemption for working in Mauritius. The categories of expatriates who are
service with exempted from a work permit are regulated by the Employment (Non-Citizens)
(Restriction) Exemptions Regulations 1970.
an employer, a
Exceptionally for investors, professionals or self-employed persons who meet
worker is entitled the criteria below, there is a type of permit (known as the Occupation Permit)
which allows them to both live and work in Mauritius without having to apply for
to 22 days’ paid two separate permits.

annual leave and Type Criteria

15 days’ paid Investor Business Activity should generate turnover >MUR4

million annually
sick leave. Initial investment of USD100,000 per investor or
equivalent in freely convertible foreign currency. In case
there is more than one investor, the turnover criteria
should apply in respect of each applicant (ie MUR8
million for two applicants, MUR12 million for three
applicants, and so on)
Professional Basic salary >MUR 60,000 monthly
For ICT sector: Basic salary >MUR30,000 monthly. For
all applications submitted prior to 31 October 2015, the
salary threshold of MUR45,000 still applies.
Self-employed Income from business activity >MUR600,000 annually
for the first two years of activity with initial investment
of USD35,000 or equivalent in freely convertible foreign
currency
The annual income will be increased from MUR600,000
to MUR1.2 million as from the third year of activity.

Trade unions
The establishment of trade unions is governed by the Employment Relations
Act 2008. Every employee has the right to establish or join a trade union without
authorisation from his/her employer. Furthermore, every employee has the right
to strike provided that a strike ballot has been taken and notice of strike has been
given to the Ministry of Labour.

21
Audit
The Companies Act 2001 and
Financial Reporting Act 2004
provide for the accounting reporting
frameworks for companies.

Accounting standards
All companies are required to
prepare financial statements in
accordance with the International
Financial Reporting Standards
(IFRS). Small private companies and
GBC 2 companies are exempted
from preparing full financial
statements but are required to
prepare a financial summary
A small private company shall file
its annual return and the financial All companies
comprising the statement of
comprehensive income and the
summary containing the information
set out in the Ninth Schedule of the are required to
statement of financial position. Companies Act 2001 with the ROC.
prepare financial
Statements and reports
The board of directors of a company
Listed companies are required to
file a copy of the annual report with statements in
the Stock Exchange of Mauritius
is required to hold an annual
meeting of shareholders not later within 90 days but not later than six accordance
months after its balance sheet date.
than six months after the end of the
reporting period and not later than with the
A GBC 1 is required to file its
15 months after the previous annual
meeting. The first annual meeting audited financial statements whilst International
a GBC 2 is required to file its
of a company must be held within
18 months of its incorporation. financial summary with the Financial Financial
Services Commission.
The board of every company shall Reporting
ensure that within six months Accounting records
after the balance sheet date of the All companies must maintain Standards
company, the financial statements statutory books and records
are dated and signed on behalf that accurately show the (IFRS).
of the board by two directors transactions and financial position
of the company or, where the of the company.
company has only one director, by
that director. Audit requirements
All companies are required to
Every company, other than small appoint a licensed auditor to audit
private companies, shall ensure that their financial statements except for
within 28 days after the financial small private companies and GBC 2.
statements of the Company and
group financial statements are The auditing profession is regulated
required to be signed, copies of by the Financial Reporting Act
those statements together with 2004 which sets out that statutory
a copy of the auditor’s report on audits must be carried out in
those statements are filed with the accordance with International
Registrar of Companies. Standards on Audit.

22
Trade
Foreign Direct Investment agro-industrial development to
Mauritius is welcoming of diversify the industry. Opportunities
foreign direct investment and are available in: agricultural
through its membership to the biotechnology, agro-processing,
International Court of Justice, bio farming, dairy farming, seed
the International Centre for the production and technology-based
Settlement of Investment Disputes farming.
as the Multilateral Investment
Guarantee Agency, the country Aquaculture
has a framework in place to ensure Mauritius offers investment
the effective protection of foreign opportunities in: lagoon cage culture
investors’ rights and interests. with a production range of 300 to
500 tonnes per production unit,
Mauritius’ economy is largely open
to foreign investment. Nevertheless,
offshore lagoon cage culture with
an approximate production capacity
The Government
there are some industries that are
still subject to foreign investment
of 2,000 tonnes per production
unit, inland aquaculture farms, tuna
has put in
restrictions. In the television
broadcasting sector, foreign capital
ranching & fattening in cages and
hi-tech production techniques such
place a number
participation needs to be less
than 20 per cent and the share of
as aqua pods.
of business
foreign members on the board of
directors should not exceed 20 per
Education
Mauritius offers investment development
cent. Sugar production and certain
activities in the tourism sector are
opportunities for the setting up of:
world-class pre-primary, primary and programmes to
also regulated in Mauritius. secondary schools, pre-vocational
and vocational schools and aid in the growth
In addition to these overt legal university campuses, business and
restrictions, sectors such as professional schools. of business.
electricity transmission and
distribution, waste management Financial Services
and recycling, and port and airport Mauritius has a well-developed
operations are characterised by and sophisticated financial services
monopolistic market structures, industry. It is recognised as one
with one dominating publicly owned of the leading financial centres
enterprise, making it difficult for of the region. Opportunities exist
foreign companies to invest. in banking in setting up: private
banking, investment and cross
Mauritius is transforming itself border investment/global business
into a hub and an international banking and Islamic banking.
jurisdiction for investors. The Furthermore, investors can take
economy has shifted from a advantage of using Mauritius as
mono-agricultural model to a the base to set up Regional Head
diversified, innovation-driven Quarters (RHQ) and Regional
and knowledge-based economy, Treasury Centres (RTCs).
underpinned by a broad spectrum
of business activities. The Board Healthcare
of Investment has identified Investment opportunities in the
a number of sectors with healthcare sector exist in the
investment opportunities. setting up of: multispecialty and
super-specialty centres
Agro-Industry
The government is actively • Specialised diabetes research and
encouraging agricultural and treatment centres

23 23
• Specialised centres for elderly A company investing in the ICT-BPO
care and rehabilitative medicine development of a smart city and/or The ICT-BPO sector has grown into
• Specialised centres for novel its components is exempted from one of the country’s leading sectors
treatments stem-cell therapies payment of: for employment and contribution to
GDP. Investment opportunities exist
• Plastic reconstructive • Income Tax for a period of eight
surgery clinics in the following sectors:
years from the issue of the SCS
• Clinics for dental surgery and Certificate provided that the • BPO Voice – Call Centres
dento-facial orthopaedics income is derived from an activity
pertaining to the development • BPO Non-Voice – Back Office,
• Convalescence and pain clinics
and sale, rental or management of Payroll, Finance & accounting
providing specialised care to
immovable property outsourcing, Legal Process
patients suffering from acute and
• Value Added Tax paid on Outsourcing
chronic conditions
capital goods • Information Technology
• Wellness centres and
• Customs duty on import or Outsourcing – software
health resorts
purchase of any dutiable goods, development, Mobile apps
other than furniture, to be used development, Web development,
Hospitality & Property
in infrastructure works and E-commerce, Multimedia
Development
construction of building within
The government introduced the • IT Services – Data Centres,
the Scheme
Property Development Scheme Disaster Recovery, Training,
• Land Transfer Tax and Registration
which aims to attract investment Consultancy
Duty on transfer of land to a SPV
from abroad for the development • Telecommunication
provided that the transferor holds
of a mix of residences for sale to
shares in the SPV equivalent • ICT Trade – retail and wholesale
non-citizens, citizens and members
to at least the value of the
of the Mauritian Diaspora. land transferred Life Sciences
• Land Conversion Tax in respect The life sciences sector has
Opportunities for investment in
of the land area earmarked opportunities in: pharmaceuticals,
Real Estate include: business/
for the development of medical devices, clinical research,
industrial parks, shopping malls,
non-residential components agricultural biotechnology and
office buildings and mixed-use
• Morcellement Tax for the marine biotechnology.
development projects.
subdivision of land.
Opportunities for investment Logistics
Other tax incentives The logistics and distribution sector
identified in the hospitality sector
• First-time Mauritian buyers and offers the following investment
include: hotel development, the buyers under the Mauritian
Investment Hotel Scheme, marinas, opportunities:
Diaspora Scheme acquiring a
leisure/amusement parks, health residential unit will be exempted
tourism, heritage tourism and • Warehousing and storage
from registration duty
green tourism. • Breaking bulk, sorting, grading,
• Full recovery of VAT in terms of
input tax allowable in terms of cleaning and mixing
Smart Cities
capital goods (building structure), • Labelling, packing, re-packing and
The Government of Mauritius has plant, machinery and equipment repackaging
set up the Smart City Scheme to
• Accelerated annual allowance • Manufacturing
provide an enabling framework and
granted at a rate of 50 per
a package of attractive fiscal and • Minor processing and Light
cent of the costs in respect of
non-fiscal incentives to investors assembly
capital expenditure incurred by
for the development of smart cities any company operating within • Storage, maintenance and repairs
across the island. the Smart City Scheme on of empty containers
energy-efficient equipment and • Ship building, repairs and
The smart-city concept is about green technology. maintenance of ships and aircrafts
providing investors, nationals and
foreigners, with options for living Investors will also be provided • Freight forwarding services
in sustainable, convenient and with land purchase, residency and • Quality control and inspection
enjoyable urban surroundings. citizenship rights. services

24
Manufacturing require Government approval; all • No minimum foreign capital
The manufacturing sector of other renewable energy projects required
Mauritius offers investment are only considered under a • Free repatriation of profits,
opportunities in: textiles and tender exercise. dividends and capital
garment making, non-textiles
• No capital gains tax
comprising light engineering, Opportunities exist for Energy
food and seafood processing • Tax free dividends
Efficiency Projects targeting
and high-precision engineering Large Energy Consumers and
comprising products such as Furthermore, Mauritius has
Energy Audit, Management and
watches and jewellery, medical entered into various trade
Advisory Services.
devices, pharmaceuticals, electronic agreements and international
components and products, parts cooperation agreements:
Opportunities for collaboration
for the aerospace and automotive exist for the use of the waters of
industries, amongst others. • COMESA (Common Market of
Mauritius as a test base for marine
Eastern and Southern Africa) –
renewable energies.
Film Industry 20 member states – free
The Mauritian government believes trade area
The government has also identified
that are many opportunities for the following Transformational • SADC (Southern African
film-production in Mauritius. The Energy Projects as opportunities Development Community)
Film Rebate Scheme offers a cash for investment: • ACP (Cotonou agreement for
rebate of 30 per cent on local preferential access to EU market)
Qualifying Production Expenditures • DOWA that exploit deep sea • AGOA (duty free and quota free
(QPEs) for projects comprising water currents for cooling and access to the US market)
feature films, television dramas, other uses.
documentaries and high-end • IOC (Indian Ocean Commission)
• Geothermal energy, currently
commercials.
under study, taps into the potential Alongside the sectors identified
of heat generated by the earth as having significant investment
Ocean Economy
Transforming Mauritius into an • Offshore wind farms which, opportunities, the Government has
ocean state was one of the main following preliminary results by put in place a number of business
pillars of development in the the Mauritius Research Council, development programmes to aid in
Mauritian Government Programme demonstrate the potential for large the growth of business. The main
2015. In order to achieve this, scale developments in the waters ones include:
a Ministry of Ocean Economy, of both Mauritius and Rodrigues.
Marine Resources, Fisheries, Offshore wave farms for which • Mauritius Business Growth
Shipping and Outer Island preliminary studies from the Scheme - provides grants on a
dedicated to ocean related activities Mauritius Research Council have cost-sharing principle to bring
demonstrated conclusive results in outside expert services or
has been created. In addition, the
technical assistance
legal and regulatory frameworks to
monitor ocean economy operators Seafood • Leasing Equipment Modernisation
will be established. The seafood sector is founded on Scheme (LEMS)
the development of value-added • AFD Green Lending Scheme
Key investment opportunities fisheries and seafood-related
• Schemes under the Development
include: seabed exploration for activities. The sector offers
Bank of Mauritius
hydrocarbons and minerals, opportunities in: fishing,
• SME Partnership Fund - a fund
fishing, seafood processing and transhipment, storage and
of MUR200 million to promote
aquaculture, Deep Ocean Water warehousing and light processing
the creation, restructuring and
Applications (DOWA), marine such as sorting, grading, cleaning,
consolidation of SME’s
services, seaport-related activities, filleting, loining and canning.
marine renewable energies and • Mauritius-Africa Fund
ocean knowledge. Government incentives • Payback “Start-ups
Mauritius offers various incentives Entrepreneurship” Scheme
Renewable Energy to foreign investors: – provides a basic monthly
Private sector initiatives in the allowance of MUR20,000 for one
renewable energy sector do not • 100 per cent foreign ownership year to creative entrepreneurs

25
• Mentoring & Coaching – the hold a Business Registration Card Prohibited goods
Mauritius Business Growth from the Companies Division. Prohibited goods are those goods
Scheme offers free “mentoring” Registration with the Mauritius whose importation have been
or “coaching” or “hand-holding” Revenue Authority is compulsory for completely banned for reasons
services to potential and existing companies with an annual turnover linked to health, environment,
entrepreneurs exceeding MUR2 million.
protection of endangered species of
Use of land flora and fauna, security, legislation
Import restrictions
Under the Non-Citizens (Property Imports of goods requiring etc. These items will be seized on
Restriction Act), a non-citizen clearances from the relevant the spot by customs and a receipt
investor may not acquire property authorities: issued to the importer. Prohibited
without prior approval of the goods cannot be cleared from
relevant authorities. • Foodstuffs – Ministry of Health & customs but in some cases the
Quality of Life seized/detained items can be
Competition rules
• Agricultural Items (fruits, exported (eg underwater fishing
The Competition Act 2007
vegetables, flowers, seeds) – guns). After the required customs
regulates competition in Mauritius.
Ministry of Agro Industries and formalities and procedures, the
It defines several restrictive
Food Security
business practices, namely abuse seized prohibited items will be
of monopoly situation, collusive • Pharmaceutical products – destroyed to prevent their use/
agreements like Horizontal Government Pharmacist
consumption locally. The below is
agreements, bid-rigging, vertical • Live Animals – Veterinary/ not an exhaustive list:
agreements involving resale price Quarantine Services
maintenance, anti-competitive • Tobacco Products – National • Ball valve bottles
agreements, merger situation, Agricultural Products Regulatory
share of supply criteria and • Explosive caps
Office (NAPRO)
provides for measures of control • Fire crackers of a type commonly
of such practices. • Tea – NAPRO
known as “pétards rapés”
• Toys and other consumer
products (iron bars, electric cables • Underwater fishing guns
Competition Commission Rules
of Procedure 2009 etc)-Mauritius Standards Bureau • Ivory and Tortoise Shell
These rules shall apply to a merger, • Second-hand motor vehicle spare
a monopoly situation, collusive An import permit is required for
parts and accessories
agreements and any other restrictive goods listed in the First Schedule of
business practice falling under the the Consumer Protection (Control • Toy pistols and guns with
Competition Act 2007. of Import) Regulation 1999. Some projectiles
goods are listed below: • Electric Water Heaters with
The Protection against Unfair bare element and parts and
Practices (Industrial Property Rights) • Wheat or meslin flour accessories thereof
Act 2002 provides for protection • Palm oil and its fractions
against unfair practices involving
• Sunflower seeds Customs duties
use of a trademark, trade name, a
business identifier, the appearance • Rape, colza or mustard oil and Customs duty is levied on the
of a product, the presentation of their fractions transaction value of goods imported,
products and services or a celebrity • Maize (corn) oil excluding VAT. If the goods are
or a well-known fictional character. • Salt not imported as accompanied
baggage and there are freight and/
The Fair Trading Act 1979 provides • Petroleum Oil
or insurance charges, these costs
for better control of trade practices • Broken & Basmati Rice
will also form part of the value of the
and related matters. • Fireworks goods. Nevertheless, businesses
• Articles of asbestos cement in the Mauritius Freeport involved
Imports
Mauritius pursues a free trade • Articles of asbestos fibres and in the production of goods destined
policy. Any person wishing to import mixtures for re-export are exempt from
goods on a commercial basis must • Gold and diamond customs duties.

26
Finance
Capital markets The Development Bank of Mauritius
The Stock Exchange of Mauritius (DBM) provides loan assistance
(SEM) is a full-fledged member of and concession finance facilities to
the World Federation of Exchanges. individuals or groups of persons for
It operates two markets: the Official implementing projects or carrying
Market and the Development & out businesses against varied forms
Enterprise Market (DEM). The key of guarantees for loan repayments.
differences between the Official DBM also provide incentives for
Market and the DEM are the lower households to take up a loan in
costs, lower level of compliance order to buy solar water heaters and
and simpler and cheaper listing personal computers.
documentation in the DEM. The
DEM is meant for Small and
Medium-sized Enterprises (SME) and
Insurance industry
The Mauritian insurance industry
The Mauritian
newly set-up companies that have a
good growth potential.
is one of the most developed in
the sub-Saharan Africa region.
insurance
Listing enables companies to raise
The industry is governed by the
FSC which is responsible for
industry is one
capital in an organised and related
market to fund their future growth,
licensing, regulating, monitoring
and supervising activities in the
of the most
improve liquidity in their shares,
obtain an objective market valuation
insurance sector.
developed in
of their shares and enhance their
overall corporate image.
The Insurance industry can be
classified into three business
the sub-Saharan
The market is regulated by the
lines; life, general and reinsurance.
According to the Insurance Act 2005,
Africa region.
Financial Services Commission. the insurance business is a business
The market is fully open to which undertakes, by way of
foreign investors. insurance or reinsurance, under long
term insurance policies or general
Banking system insurance policies, and might also
The Bank of Mauritius is the include external insurance business
Central Bank and is the regulatory and the business of a professional
body of the banking system in re-insurer. Furthermore, insurance
Mauritius. The Mauritian Banking companies in Mauritius offer various
Industry comprises 22 banks services and products which include
including a number of banks with an property and casualty insurance,
international presence. motor insurance, financial risks,
aviation insurance amongst others.
These banks provide facilities such
as short term financing through Investment management
bank overdrafts, medium to industry
long-term loans, refinancing of loans, Funds can be set up as any legal
leasing, factoring services, letters entity prescribed or approved by
of credit, bank guarantees, equity the FSC and may take the form of a
financing, etc. local fund or a global fund structured
as a GBL 1.
Bank accounts can be opened in all
major foreign currencies, alongside
Mauritian rupees.

27 27
Infrastructure
The overall quality and reliability of The main port in Mauritius is
infrastructure is a critical factor for Port Louis. It is the only official
businesses across all sectors. port of entry and exit for sea vessels
in Mauritius.
Mauritius’s transport infrastructure
is well developed. It is characterised
by a network of roadways, ports
The country also has a highly
developed information and
While, at
and airports. communication technology
infrastructure. Mauritius ranked 45th
present, there
The road network is highly efficient.
There are 2,070 kilometres of roads,
in the world in the World Economic
Forum Network Readiness Index
are no railways
98 per cent of which are paved and
this includes at least 30 kilometres
2015. This was a shift upwards
of seven places and largely
in Mauritius,
of motorways and 940 kilometres of
main roads.
attributed to improvements in ICT
infrastructure and skills base and
the government
While, at present, there are
higher levels of individual usage.
has been
no railways in Mauritius, the
government has been considering
The Network Readiness Index also
states that the government’s vision
considering
a Monorail network which would
primararily link the major towns.
to develop ICT as a key sector to
support the economic development a Monorail
Mauritius’ state-owned Sir
of the island, coupled with a positive
political and regulatory environment, network which
Seewoosagur Ramgoolam
International Airport is served by
have resulted in improvements in
an affordable ICT infrastructure and would primarily
16 airlines with around 150 flights a
week. The airport offers extensive
higher levels of ICT users, even if
less than half of its population uses link the major
international air links, offering more
than 90 international flights a week.
the Internet or has a computer with
an Internet connection at home. towns.

28
This document is issued by HSBC Bank (Mauritius) Limited (the Bank). This guide is a joint project with Grant Thornton. It is not intended as an offer or solicitation for business to anyone in any
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