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ALGERIA
BOTSWANA
ETHIOPIA
GUINEA
KENYA
MADAGASCAR
MALAWI
MAURITIUS
MOROCCO
MOZAMBIQUE
NIGERIA
RWANDA
SUDAN
TANZANIA
UGANDA
ZAMBIA
INVESTMENT GUIDE2017/2018
INVESTMENT GUIDE 2017/2018 | MAURITIUS i
About ALNALN is an alliance of leading corporate law firms currently in sixteen key African jurisdictions, including the continent’s
gateway economies. We have a presence in Francophone, Anglophone, Lusophone and Arabic speaking Africa: Algeria,
Botswana, Ethiopia, Guinea, Kenya, Madagascar, Malawi, Mauritius, Morocco, Mozambique, Nigeria, Rwanda, Sudan,
Tanzania, Uganda and Zambia. The firms are recognised as leading firms in their markets and many have advised on ground
breaking, first-of-a-kind deals. ALN also has a regional office in Dubai, UAE.
ALN firms work together in providing a one-stop-shop solution for clients doing business across Africa. ALN’s reach at the
local, regional and international levels, connectivity with key stakeholders, and deep knowledge of doing business locally and
across borders allows it to provide seamless and effective legal, advisory and transactional services across the continent.
Our high level of integration is achieved by adherence to shared values and an emphasis on excellence and collaboration. We
share sector-specific skills and regional expertise thus ensuring our clients benefit from the synergies of the alliance.
ALN won the “African Network/Alliance of the Year” award at the 2018 African Legal Awards, which recognised ALN as the
leader in the market having demonstrated continent-wide innovation, strategic vision, client care and business winning.
Chambers Global has consistently ranked the ALN alliance as Band 1 in the “Leading Regional Law Firm Networks – Africa-
wide” category
ALN In Mauritius
ALN Mauritius | BLC Robert & AssociatesBLC Robert & Associates is one of the leading independent business law firms in Mauritius. The firm has five partners
and over 30 locally and internationally trained fee earners. BLC Robert serves a diverse client base including regional and
international financial institutions, corporations, funds and public sector bodies, among others.
The core strength of BLC Robert is its unique and concurrent understanding of both the public and private sector, which
enables it to offer distinct service, with industry knowledge, commercial awareness and legal expertise under one roof.
The firm prides itself on offering practical commercial solutions to complex transactions and legal issues. BLC Robert is
committed to understanding its clients’ business as this is the key to providing commercially sound solutions.
As a testament to the excellence of its services, BLC Robert has been on the list of the Chambers and Partners prestigious
global ranking of law firms since 2008 and is now simultaneously ranked as a First Tier firm and a Band 1 firm, respectively,
by both IFLR and Chambers and Partners.
BLC Robert is described as ‘a top firm’ and its lawyers as being ‘thorough and professional’ and ‘attentive and responsive’.
According to Chambers Global, BLC Robert ‘enters the table on the back of stellar market recommendation’ and its strength
is its ‘in-depth experience of financial instruments, tax matters and corporate work’.
“A highly reputed firm with one of the largest teams on the island.” – Chambers Global 2018
CAPITAL CITY:Port Louis
POPULATION:1.264 Million (2017 World Bank
Data)
GDP:USD 13.338 Billion (2017 Word
Bank Data)
AREA:2,040 km2
PRESIDENTDr Ameenah Gurib-Fakim, G.C.S.K.,
C.S.K., Ph.D. D.Sc.
GOVERNMENT:Parliamentary Democracy
TIMEZONEGMT + 4
CURRENCYMauritian Rupee (MUR)
LANGUAGESEnglish, French, Creole, Bhojpuri
DRIVES ONThe Left
CALLING CODE+230
TOP LEVEL DOMAIN.mu
INVESTMENT GUIDE 2017/2018 | MAURITIUS iii
CONTENTS
OverviewPolitical Overview 1
Economic Overview 1
Bilateral & Multilateral Treaties 1
Regulatory Environment 2
Investment PromotionInstitutes Governing Investment Promotion 3
Investment Incentives 3
TaxPersonal Income Tax 4
Capital Gains Tax 5
Withholding Tax 5
Other tax 5
Stamp & Transfer Duty 5
Transfer Pricing & Thin Capitalisation 5
Doing BusinessAccounting Principles 6
Industrial Relations 6
Exchange Control 6
Imports and Exports 6
Corruption 6
Competition 7
Consumer Protection 7
Real Property 8
Legal Forms of Incorporation 9
Intellectual Property 12
Dispute Settlement 12
Industry SectorsAgriculture 13
Banking & Financial Services 13
Energy 14
Manufacturing 14
Mining 14
Telecommunications 14
Tourism 14
Key DevelopmentsFinancial Services 15
Natural Resources 15
Other Developments 15
INVESTMENT GUIDE 2017/2018 | MAURITIUS 1
Political OverviewMauritius is a parliamentary representative, democratic
republic. The President is the Head of State and the
Prime Minister is the Head of Government. Legislative
power is vested in both the government and a Unicameral
Parliament, and the Supreme Court is the highest judicial
authority. The Mauritian government is elected on a
five-year basis. The most recent elections took place on
10th December 2014. Mauritius has a long tradition of
political and social stability and is internationally recognised
for its well-established democracy. According to the
2017 Mo Ibrahim Index of African Governance, which
measures governance using a number of different variables,
Mauritius’ government earned the highest ranking among
African nations for safety and rule of law, sustainable
economic opportunity and human development, and
also earned the highest score in the index overall for the
eleventh consecutive time.
Economic OverviewMauritius has one of the most successful, competitive
and diversified economies in Africa. The country’s success
has been built on a free market economy. The economy
is based on tourism, textiles, sugar and financial services.
With one of the highest Gross Domestic Product (GDP)
per capita in Africa, Mauritius is one of only four African
nations with the highest Human Development Index rating.
According to the 2017 Index of Economic Freedom of the
U.S. based Heritage Foundation, Mauritius leads Sub-
Saharan Africa in economic freedom and is ranked 21st
worldwide with an overall score of 74.7.
Bilateral & Multilateral TreatiesMauritius is a member of the African Union,
Commonwealth of Nations, La Francophonie, the World
Trade Organisation (WTO), the African Caribbean Pacific-
European Union Cotonou Agreement, the Common Market
for Eastern and Southern Africa (COMESA), the Southern
African Development Community (SADC), the Indian Ocean
Rim - Association for Regional Cooperation and the Indian
Ocean Commission.
Mauritius has entered into bilateral trade agreements
with Pakistan, Turkey and USA, and it has 26 Investment
Promotion and Protection Agreements (IPPAs) currently
in force with Barbados, Belgium/Luxembourg Economic
Union, Burundi, China, Czech Republic, Egypt, Finland,
France, Germany, India, Indonesia, Kuwait, Madagascar,
Mozambique, Pakistan, Portugal, Republic of Congo,
Republic of Korea, Romania, Senegal, Singapore, South
Africa, Sweden, Switzerland, Tanzania, U.K. and Northern
Ireland. IPPAs with the following countries are awaiting
ratification: Benin, Cameroon, Comoros, Gabon, Ghana,
Guinea Republic, Kenya, Mauritania, Nepal, Rwanda,
Swaziland, Chad, Turkey, Zambia and Zimbabwe. These
IPPAs provide for free repatriation of investment capital
and returns and guarantee against expropriation. They
provide for a most favoured nation rule with respect to
treatment of investors, and compensation for losses in case
of war and armed conflict. They also include arrangements
for the settlement of disputes between investors and the
contracting states.
Mauritius has concluded 43 double taxation avoidance
treaties and is party to a series of treaties under
negotiation. The 43 treaties currently in force are with
Australia, Barbados, Belgium, Botswana, Croatia, Cyprus,
Egypt, Sri Lanka, France, Germany, Guernsey, India, Italy,
Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia,
Overview
OVERVIEW
INVESTMENT GUIDE 2017/2018 | MAURITIUS 2
Malta, Monaco, Mozambique, Namibia, Nepal, Oman,
Pakistan, Bangladesh, China, Rwanda, Senegal, Seychelles,
Singapore, South Africa, Qatar, Swaziland, Sweden,
Thailand, Tunisia, Uganda, United Arab Emirates, United
Kingdom, Zambia, Zimbabwe and Congo. Two tax treaties
with Ghana and Cape Verde have been ratified. Six tax
treaties, with Gabon, Kenya, Morocco, Jersey, Nigeria and
Russia are awaiting ratification; four treaties, with Cote
D’Ivoire, Gibraltar, Malawi and The Gambia, are awaiting
signature; and 19 treaties are being negotiated, with
Algeria, Canada, Czech Republic, Greece, Hong Kong,
Lesotho (new), Montenegro, North Sudan, Portugal, Iran,,
Saudi Arabia, Spain, St. Kitts & Nevis, Tanzania, Vietnam,
Zambia (New), Burkina Faso, Mali and Yemen.
Regulatory EnvironmentDuring the last five years, the government has significantly
reformed trade, investment, tariff and income tax
regulations, simplifying the framework for doing business.
Mauritius has a long-standing tradition of government and
private sector dialogue which allows the private sector to
effectively voice its views on the development strategy of
the country. The Joint Economic Council, the coordinating
body of the Mauritian private sector, is a key vehicle in this
regard. A Central Procurement Board, established under
the Public Procurement Act, of 2006 oversees all forms
of procurement by public bodies. The World Economic
Forum’s 2017-2018 Global Competitiveness Report places
Mauritius first in Africa and 45th in the world in terms of
competitiveness.
OVERVIEW
INVESTMENT GUIDE 2017/2018 | MAURITIUS 3
Investment Promotion
Institutes Governing Investment PromotionA transparent and well-defined investment code and
legal system have made the foreign investment climate in
Mauritius one of the best in the region. The foreign direct
investment for 2016 was at USD 350 million. Investment
in Mauritius is governed by the Investment Promotion
Act, 2000 (Investment Act). Investment regulations are
consistent with the WTO’s Agreement on Trade Related
Investment Measures. The Mauritius Board of Investment
(MBOI) is a government agency which aims to promote and
facilitate investment in Mauritius and acts as a one-stop
agency for business registration, and as the facilitator for
all forms of investment in Mauritius as well as guiding
investors through the necessary processes for doing
business in the country.
Investment IncentivesInvestment incentives are applied uniformly to both
domestic and foreign investors. Mauritius offers the
following incentives to investors:
‣ A flat corporate and income tax rate of 15 percent;
‣ Tax free dividends;
‣ No capital gains tax;
‣ Up to 100 percent foreign ownership;
‣ Exemption from customs duty on equipment;
‣ Free repatriation of profits, dividends, and capital;
‣ No minimum foreign capital required;
‣ Fifty percent annual allowance on declining balance
for the purchase of electronic and computer
equipment; and
‣ An extensive tax treaty network with several
countries.
‣ Eight-year income tax holiday to:
» Companies set up on or after 1 July 2017
involved in innovation-driven activities, in
respect of their income derived from intellectual
property assets developed in Mauritius.
» Companies incorporated after 8 June 2017
engaged in the manufacture of medical devices,
pharmaceutical and high tech products.
» Companies engaged in exploitation and use of
deep ocean water for providing air conditioning
installations, facilities and services.
‣ Exemption for a period of 5 income years as from the
income year in which a corporation was issued any of
the following licences, on or after 1 September 2016,
by the Financial Services Commission and subject to
conditions prescribed under the Income Tax Act 1995:
» a Global Treasury Activities Licence;
» a Global Legal Advisory Services Licence;
» an Investment Banking Licence;
» an Overseas Family Office (Single) Licence; or
» an Overseas Family Office (Multiple) Licence.
‣ Investors can obtain free-port licences under the
Investment Act, under which persons may be exempt
from income tax or subject to tax at 15 percent under
specified conditions. A non-citizen is eligible for a
residence permit upon the purchase of a villa under
the Property Development Scheme when he has
invested more than USD 500,000 or its equivalent in
any freely convertible foreign currency; and
‣ Investors, their spouses and dependents are granted
resident permits to live in Mauritius when a residential
property is acquired for a price exceeding USD
500,000.
INVESTMENT PROMOTION
INVESTMENT GUIDE 2017/2018 | MAURITIUS 4
Tax
Personal Income TaxResident companies and businesses are taxed on
worldwide income. Non-residents are taxed only on
Mauritius-source income. A company is resident if it is
incorporated in Mauritius or its central management and
control is in Mauritius. An individual is resident if domiciled
in Mauritius, spends at least 183 days of the tax year in the
country or has a combined presence of at least 270 days
in that tax year and the two preceding tax years. Losses
may be carried forward for five years, except for losses
arising from annual allowances on capital expenditure
incurred after 1st July 2006. The carry-back of losses is not
permitted.
No. Tax Rate
1 Corporate tax
‣ General
‣ Tax incentive companies
15%
2 Dividends Dividends paid by a Mauritian-resident company are exempt from
income tax. Foreign dividends are taxable
3 Interest Taxed as ordinary income
4 Royalties Taxed as ordinary income
5 Fees Taxed as ordinary income
No. Tax Rate
1 Corporate tax 15%
2 Category 1 Global Business Licence
(GBL) companies
3% maximum
3 Dividends Dividends paid by a Mauritian-resident company are exempt from
income tax
4 Interest Taxed as ordinary income, subject to available exemptions and tax
credits
5 Royalties Taxed as ordinary income, subject to available exemptions and tax
credits
Income tax is levied on resident companies as follows
Income tax is levied on non-residents as follows
TAX
INVESTMENT GUIDE 2017/2018 | MAURITIUS 5
No. Tax Rate
6 Fees
‣ director’s fees
‣ consultant’s fees
15% (Tax is withheld at source and is final)
15%
Capital Gains TaxNo capital gains tax is levied in Mauritius.
Withholding TaxInterest and royalties are taxed as ordinary income, withheld at the source, subject to available exemptions.
Other taxThe basic rate of Value Added Tax (VAT) is 15 percent.
Certain goods and services are subject to VAT at zero
rate and others are exempt from VAT. The registration
threshold is approximately USD 171,000 (MUR 6 million).
Employers are required to make pay-related social security
contributions.
Stamp & Transfer DutyStamp duty is levied on each document presented for
registration to the Registrar General or Conservator
of Mortgages. A duty of five percent is levied on share
transfers of a company which includes in its assets
any freehold or leasehold property while 20 percent is
charged when a company has leasehold rights on state
land. No duty is payable on the transfer of shares quoted
on the Stock Exchange of Mauritius and on the shares
of a Category 1 Global Business Licence (GBL) company.
Transfer duty of five percent and land transfer tax of five
percent is payable on the sale or transfer of immovable
property.
Transfer Pricing & Thin CapitalisationMauritius does not have transfer pricing regulations.
However, the Income Tax Act, 1995 (ITA), provides that
transactions between related parties should be at market
value. Similarly, Mauritius does not have thin capitalisation
rules but the ITA provides that the Director-General may
disallow interest expense payable to shareholders under
certain conditions.
TAX
INVESTMENT GUIDE 2017/2018 | MAURITIUS 6
Doing Business
Accounting PrinciplesMauritius applies International Accounting Standards and International Financing Reporting Standards.
Industrial RelationsThe Constitution and the law of Mauritius provide for the
right of workers to form and join unions of their choice
without prior authorisation or excessive requirements, and
workers exercise this right in practice.
The National Remuneration Board (NRB) sets minimum
wages for non-managerial workers, although most unions
negotiate wages higher than those set by the NRB. In
February 2009, the Employment Rights Act and the
Employment Relations Act came into force.
The new legislation provides for a Workfare Program
under which workers who have been laid off will benefit
from government financial assistance for up to twelve
months and opportunities for training to increase their
employability.
Mauritius participates actively in the annual International
Labour Organisation (ILO) conference in Geneva, and
adheres to ILO conventions protecting workers’ rights.
Work permits are required for expatriates seeking
employment in Mauritius. In general, work permits are
granted provided that a contract of employment is in
place and local citizens do not possess the necessary
expertise. An occupation permit giving a right to a three
year residence period can be granted to an investor setting
up business with an annual turnover exceeding USD
55,500 (approximately MUR 2 million). Investors investing a
minimum of USD 500,000 (approximately MUR 18 million),
in a qualifying business activity, are entitled to a permanent
residence permit valid for a period of ten years.
Exchange ControlExchange controls were suspended by the Finance Act,
1994, consequently, no approval is required for the
repatriation of profits, dividends and capital gains earned
by a foreign investor in Mauritius.
Imports and ExportsFrom 1 July 2009, all permits relating to imports and
exports, except those considered essential, were
suspended. The Mauritius Freeport (free-trade zone) was
established in 1992 as a customs-free zone for goods
destined for re-export.
CorruptionMauritius ranks 54th worldwide, and sixth in Africa as per
Transparency International’s Corruption Perceptions Index
for 2017 behind Botswana, Seychelles, Cape Verde Rwanda
and Namibia. The principal anti-corruption legislation in
Mauritius is the Financial Intelligence and Anti-Money
Laundering Regulations, 2003, Financial Intelligence and
DOING BUSINESS
INVESTMENT GUIDE 2017/2018 | MAURITIUS 7
Anti-Money Laundering Act, 2002 and the Prevention of
Corruption Act, 2002.
The Mauritian Financial Intelligence Unit (the FIU) was
established under the Financial Intelligence and Anti-
Money Laundering Act, 2002. It is the central Mauritian
agency for the request, receipt, analysis and dissemination
of financial information regarding suspected proceeds of
crime and alleged money laundering offences as well as
the financing of any activities or transactions related to
terrorism to relevant authorities.
The FIU also plays an integral part in the investigation and
detection of financial crimes. It collects, processes, analyses
and interprets all information disclosed to and obtained
by it in the process of combating money laundering and
terrorist financing. The FIU became a member of the
Egmont Group in July 2003 and has since been frequently
elected as the regional representative of African FIUs on
the Egmont Committee.
In 2002, the Government adopted the Prevention
of Corruption Act, which led to the setting up of an
Independent Commission Against Corruption (ICAC).
ICAC consists of an anti-corruption unit, an anti-money
laundering unit and a corruption prevention and education
division. It has the power to investigate any act of
corruption and any matter that may involve the laundering
of money or suspicious transaction referred to it by the FIU
and can confiscate the proceeds of corruption and money
laundering.
CompetitionThe Mauritius Competition Act, 2007, regulates
competition law in Mauritius, and is aimed at preventing
monopolistic pricing and restricting collusion in consumer
markets. The Competition Commission (the Commission)
reviews mergers in three instances:
‣ Where all the parties to the merger, supply or acquire
goods or services of any description, and will following
the merger, together supply or acquire 30 percent or
more of all those goods or services in the market;
‣ Where one of the parties to the merger alone supplies
or acquires, prior to the merger, 30 percent or more of
goods or services of any description in the market; or
‣ Where the Commission has reasonable grounds to
believe that the creation of the merger situation
has resulted in, or is likely to result in, a substantial
lessening of competition within any market for goods
or services.
Where the merger falls within the above categories, parties
should apply to the Commission for guidance. There are no
filing fees..
Consumer ProtectionConsumer protection in Mauritius is regulated by the
Consumer Protection (Price and Supplies Control) Act and
the Consumer Protection Act. The Fair Trading Act also
makes provisions with respect to measures to ensure fair
trading in Mauritius and the prevention of practices that
mislead or confuse consumers. The Consumer Protection
Unit (CPU) is a specialised section within the Ministry of
Commerce and Consumer Protection of Mauritius which
caters for the protection of consumers.
The CPU enforces Mauritius’ various consumer protection
laws, and aims to provide overall consumer satisfaction and
security, through:
‣ Educating consumers on their rights and
responsibilities through print media, public
discussions, etc.;
‣ Settling disputes between traders and consumers by
mutual agreement or through the court process; and
‣ Amending existing legislation and preparing new
legislation where necessary.
DOING BUSINESS
INVESTMENT GUIDE 2017/2018 | MAURITIUS 8
Real PropertyThe real estate market in Mauritius has emerged as a
sector with competitive opportunities for investors, small
landowners and non-citizens wishing to reside in the
country. The legal environment guarantees protection of
the rights of sellers and purchasers. Effective administration
has simplified and facilitated the ease of business
transactions related to residence permits and acquisition
of property. Coupled with a low tax regime, political, and
financial stability, the country provides investors with a
secure platform for property development. The real estate
sector in Mauritius provides an array of opportunities for
both commercial and residential purposes.
Commercial Property
The commercial property market in Mauritius allows for the
development of different property types such as:
‣ Hotels
‣ Shopping malls and duty free shops
‣ Office buildings
‣ Business and industrial parks
When acquiring property for business purposes or for the
lease of immovable property for a period exceeding 20
years for business purposes, the investor needs to apply for
approval from the MBOI. A ‘business purpose’ is considered
to be the acquisition of property for:
‣ Development of active commercial buildings;
‣ Property Development Scheme (PDS); or
‣ Any activity carried out with the purpose of profit
excluding residential properties not developed under
the PDS and the acquisition for lease, resale or rental
of a bare or serviced land.
Residential Property
The residential real estate market is also expanding through
the development of luxury residential properties.
The PDS
In Mauritius, this market is now developed under PDS. The
PDS which has replaced the Integrated Resort Scheme (IRS)
and the Real Estate Scheme (RES) allows the development
of a mix of residences for sale to non-citizens, citizens and
members of the Mauritian diaspora.
The PDS provides for:
‣ The development of luxurious residential units on
freehold land of an extent of at least 0.4220 hectare
(1 arpent);
‣ The development of at least six residential properties
of high standing; high quality public spaces that helps
promote social interaction and a sense of community;
‣ High-class leisure, commercial amenities and facilities
intended to enhance the residential units; and
‣ Day-to-day management services to residents
including security, maintenance, gardening, solid
waste disposal and household services; and social
contribution in terms of social amenities, community
development and other facilities for the benefit of the
community.
A non-citizen is eligible for a residence permit upon the
purchase of a villa under the PDS scheme when he has
invested more than USD 500,000 or its equivalent in
any freely convertible foreign currency. The PDS is also
a demarcation from the IRS and RES in as much as it
does not differentiate between small and big landowners
and harmonizes the registration duty to a single rate of
5percent instead of USD 70,000 on registration of a deed
under IRS and USD 25,000 under RES.
The Invest Hotel Scheme (IHS)
The IHS allows hotel developers to finance the
development of a hotel project by allowing them to sell
villas, suites, rooms or other components that form part of
the hotel to individual buyers.
The IHS provides:
‣ For the development of a hotel on either freehold or
leasehold land of more than one hectare where units,
villas, suites or other parts of the hotel can be sold;
‣ That the buyer of a unit enters into a lease agreement
by which the property is leased back to the seller; and
‣ That the unit leased to the seller may be used and
occupied by the unit owner or any person on his
behalf for a total of not more than 45 days in any
period of 12 months.
There is no minimum amount of investment that is required
for the acquisition of a room, suite or other part of the
hotel; however, a minimum of USD 500,000 is required for
a stand-alone villa.
DOING BUSINESS
INVESTMENT GUIDE 2017/2018 | MAURITIUS 9
Acquisition of Property by a Non-Citizen
Any foreigner who wishes to hold or acquire freehold or
leasehold immovable property in Mauritius must obtain
authorisation from either the Prime Minister’s Office or the
MBOI. Non-citizens must obtain authorisation from the
Prime Minister’s office in respect of:
‣ Acquisition of shares in a company holding freehold or
leasehold immovable property;
‣ Acquisition of immovable property by a person not
registered as an investor with BOI;
‣ Lease of immovable property for more than 20 years
by a person not registered as Investor with BOI; or
‣ Lease of immovable property for residence for a
period exceeding four years.
The non-citizen shall first make a written application to the
Prime Minister’s office or the MBOI to be delivered with
a certificate authorising him to acquire the property. Such
approval is also required in respect of an acquisition of
shares in a Mauritian entity which has, amongst its assets,
any freehold or leasehold property in Mauritius.
Under the Non-Citizen Property Restriction Act, such
approval would also be required where a non-citizen
acquires shares in a company which in turn holds shares
in a subsidiary whose assets include freehold or leasehold
property in Mauritius. However, no certificate is required
where a non-citizen acquires shares in a Mauritian entity
that holds any leasehold property, if such property is the
subject of a lease agreement for industrial or commercial
purposes for a term not exceeding 20 years.
The Prime Minister’s approval is not required, when the
property is held or acquired in the following instances:
‣ Acquisition of immovable property for business
purposes;
‣ Acquisition of residential property by holders of
permanent resident permit;
‣ Acquisition of residential units under Integrated
Resort Scheme, Real Estate Scheme, Property
Development Scheme or Invest Hotel Scheme; or
‣ Lease of immovable property for more than 20 years
for business purposes.
In the above circumstances, non-citizens must obtain
authorisation from the MBOI. No authorisation is required
in case of a non-citizen who:
‣ Holds immovable property for commercial purposes
under a lease agreement not exceeding 20 years;
‣ Holds shares in companies which do not own
immovable property;
‣ Holds immovable property by inheritance or effect of
marriage;
‣ Holds shares in companies listed on the stock
exchange; or
‣ Invests through a unit trust scheme or any collective
investment vehicle.
All non-citizens who have acquired a property under the
PDS where the value of the residential property is not less
than USD 500,000 or its equivalent in any other freely
convertible foreign currency in Mauritius are granted
residence permits for themselves and any spouses or
dependents. The permits remain valid so long as the non-
citizen still possesses the residence or until the company
terminates the residency.
Legal Forms of IncorporationBusinesses can be conducted in Mauritius in several forms,
such as a:
‣ Private limited liability company;
‣ Public limited liability company;
‣ Sole-proprietorship;
‣ Branch of a foreign company;
‣ Société;
‣ Limited partnership; or
‣ Foundation.
The Companies Act, 2001 (the Act), governs incorporation
of companies. The Act incorporates international best
practices and promotes accountability, openness and
fairness. The Business Facilitation (Miscellaneous
Provisions) Act 2017 simplified the business licensing
process for business start-ups and allows businesses
to start operations expeditiously and certificate of
incorporation can be issued within one (1) working day.
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INVESTMENT GUIDE 2017/2018 | MAURITIUS 10
The Act creates several types and categories of companies,
such as domestic companies, companies holding a Category
1 GBL and companies holding a Category 2 GBL.
These companies may be in the form of:
a. A company limited by guarantee; A company limited
by guarantee limits the liability of its members to such
amounts as the members may respectively undertake
to contribute to the assets of the company in the
event of it being wound up.
b. A company limited by shares; A company limited
by shares limits the liability of its members to any
amount unpaid on the shares respectively held by the
shareholder.
c. A company limited by shares and by guarantee; A
company limited by shares and by guarantee means a
company formed on the principle of having the liability
of its members:
i. who are shareholders, limited to the amount
unpaid, if any, on the shares respectively held by
them; and
ii. who have given a guarantee, limited to the
respective amount they have undertaken to
contribute, from time to time, and in the event of
it being wound up.
d. An unlimited company; An unlimited company
imposes no limit on the liability of its shareholders.
Public Company / Private Company
A company incorporated under the Companies Act may be
a public company or a private company. If it is not specified
that the company is a private company, it will be deemed to
be a public company.
A private company is one which specifically states in its
application for incorporation or its constitution that it
is a private company. The private company may restrict
the transfer of its shares, which cannot be offered to the
public. A private company must have a minimum of 1 and
a maximum of 25 shareholders. Where the number of
shareholders exceeds 25, it will be deemed to be a public
company.
Limited Life Company
A company of any of the types of companies referred
to in (a – d) above may be registered as a limited life
company where its constitution limits its life to a period
not exceeding 50 years from the date of its incorporation.
However, this company may by resolution alter its
constitution extending the duration of the company
to a maximum period of 150 years from the date of
incorporation of the company.
Global Business Licences (GBL) Companies
A public or private company set up under the Companies
Act, 2001 may apply to the Financial Services Commission
(FSC) for a licence to carry on global business. The FSC
issues two types of licences namely GBL 1 and 2.
A GBL 1 company is a company registered in Mauritius and
considered as resident in Mauritius for tax purposes. A GBL
1 company can conduct business both within and outside
Mauritius and deal with a person resident in Mauritius.
The central management and control of a GBL 1 company
must be vested in Mauritius. A GBL 1 company will also
benefit from Double Tax Avoidance (DTA) treaties between
Mauritius and other states, subject to possession of a
Tax Residency Certificate. It will also have to file audited
financial statements with the FSC. A GBL 1 Company is
taxed at a flat rate of 15 percent, although foreign tax
credits will be allowed for taxes suffered at source where
this can be evidenced.
A system of deemed foreign tax credits of 80 percent
effectively reduces the income tax rate to 3 percent on
the qualifying income of the company. The tax payable
in Mauritius can be less than 3 percent, where the actual
foreign taxes are more than 12 percent.
A GBL 2 company is tax exempt in Mauritius and does
not need to have audited financial statements nor
have a company secretary. It, however, does not have
access to the tax treaties network. The FSC provides
certain restrictions on the business activities that may
be conducted by a GBL 2 company. No application for a
GBL 2 company shall be made by a company registered in
Mauritius, unless it is a private company and proposes to
conduct business activity other than the following:
i. banking;
ii. financial services;
iii. carrying out business of holding or managing or
otherwise dealing with a collective investment fund or
scheme as a professional functionary;
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INVESTMENT GUIDE 2017/2018 | MAURITIUS 11
iv. provision of registered office facilities, nominee
services, directorship services, secretarial services or
other services for corporations; or
v. providing trusteeship services by way of business.
The Companies Act contains specific provisions applicable
to both GBL 1 and GBL 2 companies. The Act also contains
specific exemptions for each type of company.
Foreign Company
The Companies Act enables the registration of a foreign
company if it has a place of business or is carrying on
business in Mauritius. It also provides for the migration of
companies registered under the Companies Act to other
jurisdictions.
Before starting operations, businesses must register
with the Registrar of Companies. For a limited number of
regulated activities in such sectors as tourism, sugar and
broadcasting, an application for the appropriate permit or
licence must be made to the competent authorities prior to
start of operations. It is worthwhile to note that Mauritius
ranked 25th out of 190 countries in the World Bank
Group’s Ease of Doing Business Report 2018.
Société
A société can be set up under the provision of the Civil
Code or Commercial Code. The participants’ interests
are referred to as “parts sociales”. A société is fiscally
transparent and the liability of the “limited partners” can
be limited. A “société commerciale” needs to be registered
with the Registrar of Companies.
Limited Partnership
Since 2011, with the enactment of the Limited Partnerships
Act, limited partnerships can now be used to structure
investments. A limited partnership can elect to have a legal
personality and is required to have at least one general
partner who is liable for all the debts and obligations of the
limited partnership, and one limited partner who is liable
only up to the maximum amount of its commitment.
A limited partnership may elect to have a separate legal
personality. Irrespective of whether a limited partnership
has elected for legal personality, it retains its pass-through
attribute such that the partners are liable for debts of the
partnership (general partners having unlimited liability
whereas limited partners are liable to the extent of their
contribution or as they have agreed). Further, limited
partnerships are fiscally transparent and in effect, a limited
partnership will not be liable to tax (irrespective of whether
or not it elects to have legal personality) but each partner
will be liable to tax with its share of the income of the
partnership. However, a limited partnership which holds a
GBL may opt to be fiscally opaque.
Limited Liability Partnership
A limited liability partnership (LLP) introduced by the
Limited Liability Partnerships Act 2016 is the new type
of partnership vehicle. It combines features of both a
company and a limited partnership. It can be used for
offering professional or consultancy services and also
legal services through the holding of a Global Legal
Advisory Services Licence issued by the Financial Services
Commission.
An LLP can be set up by two or more partners. The Limited
Liability Partnerships Act 2016 also provides for the
conversion of an existing entity or unincorporated body to
an LLP and the re-domiciliation of foreign LLPs or Mauritian
LLPs to and from Mauritius.
There are no restrictions on the residency of the partners
and a partner can be an individual, an entity or an
unincorporated body.
The LLP is required to appoint a manager resident in
Mauritius at all times which should be a local management
company if the LLP holds a Category 1 Global Business
Licence or a person qualified as a secretary if such is not
the case.
The LLP should be registered with the Registrar of LLP.
A partnership agreement should be put in place by the
partners which will provide for the governance of the LLP
and the rights and duties of the partners. The LLP can hold
a Category 1 Global Business Licence if it would conduct a
major part of its business outside Mauritius. In such case,
the LLP Act provides for public records of the LLP not to be
available for inspection, and its audited financial statements
to be filed with the FSC.
Foundation
Foundations are set up to benefit persons, a class of
persons or to carry out a purpose which can be charitable,
non-charitable or both. It is an ideal vehicle for succession
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INVESTMENT GUIDE 2017/2018 | MAURITIUS 12
planning and private wealth management. A foundation
is managed by a council which carries out the objectives
and purposes of the foundation. It must have at least one
member ordinarily resident in Mauritius. Similar to Trustees,
a Council may have the power to appoint new beneficiaries
and determine the extent and nature of beneficial rights.
There is no requirement for that member to be a licensed
trust company. It requires a secretary in Mauritius who
needs to be licensed and needs to have their registered
office in Mauritius. Foundations are governed by the
Foundations Act, 2012.
Intellectual PropertyMauritius is a member of the World Intellectual Property
Organisation and party to the Paris and Berne conventions
for the protection of industrial property and the Universal
Copyright Convention. Intellectual property rights are
protected by the Copyrights Act 2014 and the Patents,
Industrial Designs and Trade Marks Act 2002, which are
both in line with international norms and comply with
the WTO’s Trade Related Aspects of Intellectual Property
Rights Agreement.
Trademark protection is available in Mauritius for both
goods and services. A trademark is initially registered for
10 years and may be renewed for successive periods of 10
years. This protection may be cancelled if the trademark
protection is not used for a period of three years or more
from the date it is granted.
On the sale of a business in Mauritius, trademark
protection is assignable, but to the extent of goodwill
only. Well-known international trademarks are protected,
regardless of whether they are registered in Mauritius.
As far as patents go, a patent is granted for 20 years and
cannot be renewed.
Dispute SettlementThe Mauritian legal system is largely based on English
common law and French civil law. The domestic legal
system is generally non-discriminatory and transparent.
Members of the judiciary are independent of the legislature
and the Government. The highest court of appeal is
the judicial committee of the Privy Council of England.
Mauritius is a member of the International Court of Justice.
The country is also a member of the International Centre
for the Settlement of Investment Disputes. A Commercial
Court was set up in early 2009 to expedite the settlement
of commercial disputes.
International Arbitration
The International Arbitration Act came into force in
January 2009 and sets out the rules applicable to an
international arbitration based on the UNCITRAL Model
Law on International Commercial Arbitration. The regime
brought about under the International Arbitration Act is
distinct from that of domestic arbitration which is primarily
governed By the Mauritian Code on Civil Procedure.
The main objective of the International Arbitration
Act is to promote Mauritius as an arbitration forum
endowed with a comprehensive modern legal framework
in international arbitration. This Act gives an important
role to the Permanent Court of Arbitration of The Hague
and also allows the parties to be represented by foreign
law practitioners. In July 2011, the Government of
the Republic of Mauritius, the LCIA and the Mauritius
International Arbitration Centre Limited (MIAC) entered
into an agreement for the establishment and operation the
LCIA-MIAC Arbitration Centre.
In line with the international consumer protection
standards, the International Arbitration Act provides for
specific consumer consent to arbitration agreements. The
New York Convention, 1958 implemented in Mauritian
laws by the Convention on Recognition and Enforcement
of Foreign Arbitral Awards Act, 2001 (proclaimed in 2004),
will apply to any award delivered under the Act. Given the
role of Mauritius as an offshore regional business hub, the
International Arbitration Act also makes specific allowances
to global business companies and their shareholders.
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Industry Sectors
AgricultureSince independence in 1968, Mauritius has moved away
from being an agriculture-based economy. At one stage,
sugar production was the backbone of the Mauritian
economy; however, the economy has since diversified
significantly. Agriculture as at 2016 made up 3.6 percent of
the GDP of Mauritius.
Sugarcane remains the dominant crop, extending over 90
percent of the cultivated land surface of the country. 15
percent of export earnings come from sugarcane. Other
crops include tea, tobacco, vegetables, fruits, flowers, cattle
and fishing.
Banking & Financial ServicesMauritius has a well-developed and modern banking
system, with 22 banks currently licensed to undertake
banking business comprising of 5 local banks,10 foreign-
owned subsidiaries,1 joint venture, 4 branches of foreign
banks and 2 licensed as private banks. The Banking Act,
2004, provides for banking business to be conducted under
a single banking licence regime. Accordingly, all banks are
free to conduct business in all currencies, including the
MUR. There are also several non-bank financial institutions
which are authorised to conduct deposit-taking business.
Financial and Insurance services account for 12.1 percent
of GDP.
The Bank of Mauritius - the Central Bank, carries out the
supervision and regulation of banks as well as non-bank
financial institutions authorised to accept deposits. The
Central Bank has endorsed the Core Principles for Effective
Banking Supervision, as set out by the Basel Committee
on Banking Supervision. The financial system has not
been involved in sub-prime lending or any activity deriving
directly or indirectly from that asset class. The sector is
well regulated and has proven to be quite solid and highly
profitable.
As at December 2017, the Stock Exchange of Mauritius
(SEM) had 94 listed issuers on the Official Market and 47
listed issuers on the Development and Enterprise Market
(which is designed for small and medium enterprises).
The SEM won for the fourth time in seven years the “Most
Innovative African Stock Exchange of the year Award” at
the Ai Institutional Investment Summit and Capital Markets
Index Series Awards 2017 organised by Africa investor (Ai),
a leading international research and communication group.
The SEM is a member of the World Federation of
Exchanges, which reports that the SEM adheres to industry
business standards. In November 2007, the SEM was
included in the new Morgan Stanley Capital International
Frontier Markets Indices, which is designed to track the
performance of a range of equity markets that are now
more accessible to global investors. Mauritius was among
four countries in Africa to be included in the new indices.
The SEM has also been included in the DOW Jones SAFE
100 Index which was launched in March 2009 by the South
Asian Federation of Exchanges. The SEM was opened
to foreign investors following the lifting of the foreign
exchange controls in 1994.
No approval is required for the trading of shares by foreign
investors unless the investment will result in the foreign
investors holding15 percent or more of the voting capital in
a sugar company.
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EnergyMauritius is dependent on imported fossil fuels to meet its
energy needs. The Central Electricity Board is a parastatal
body wholly owned by the Government of Mauritius,
reporting to the Ministry of Energy and Public Utilities. It
produces around 40 percent of the country’s total power
requirements, the remaining 60 percent being purchased
from independent power producers. Besides the traditional
forms of energy production, the Government is also
encouraging the use of more environmental friendly energy
sources such as solar farms and wind farms.
ManufacturingManufacturing accounts for 17 percent of GDP in
Mauritius. Most goods are manufactured for the export
market. The sector primarily incorporates the manufacture
of labor-intensive goods including: textiles and clothing;
light engineering goods; watches and clocks; jewellery;
optical goods; toys and games and cut flowers.
MiningThere are few mineral resources in Mauritius. Historically,
mineral output consists of basalt construction stone, coral
sand, lime for coral and solar-evaporated sea salt.
TelecommunicationsMauritius has a small telecommunications system with
good service. There were 568,700 internet users and
1,485,800 mobile phone subscriptions (surpassing 100
percent) in 2012. The main mobile operators in Mauritius
are Orange, Emtel and Mahanagar Telephone (Mauritius)
Ltd. There is a strong legislative framework governing the
Mauritian telecommunication sector with the Information
and Communication Technologies Authority regulating the
sector.
TourismTourism is a big foreign exchange earner for Mauritius.
The sector accounts for 7.7 percent of GDP and revenues
for the year 2016 amounted to USD 1.6 Billion (Rs
55.9billion). Most of the visitors come from Europe, South
Africa and Reunion Island. The Government has also been
encouraging tourists from new emerging markets such as
China, Russia, India, Australia and UAE.
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Key Developments
Financial Services
Launch by the African Export – Import Bank (“Afreximbank”) of an equity offering in Mauritius through Depositary ReceiptsAfreximbank, in 2017, launched a US$300 million equity
offering in Mauritius through the listing on the Stock
Exchange of Mauritius of its fully paid up Class D Shares,
in the form of Depositary Receipts. The listing of the
Depositary Receipts represents a big first for the equity
capital markets of Africa and the first time a supranational
bank has issued Depositary Receipts through an African
stock exchange. The rationale for the Depositary Receipts
issuance for Afreximbank was the need to enhance its
capitalization in order to narrow the trade financing gap in
Africa and meet its strategic objective of growing intra-
African trade in all regions of the continent, including island
economies.
Natural Resources
The Development of Mauritius’ Ocean EconomyThe Mauritius Government Programme of 2015 reflects
the vision of the Government to transform Mauritius into
an ocean state by promoting its ocean economy as one of
its main pillars of development. The plan is to better utilise
the country’s oceanic Exclusive Economic Zone (EEZ),
measuring 2.3 million square kilometres to create jobs
and boost tourism. This is meant to diversify the economy
and protect it from future external blows, as well as drive
growth. It is expected to unlock investments of about USD
600 million and create about 25,000 jobs. The Mauritius
Government has already initiated several measures aimed
at tapping into these opportunities, namely the creation
of a Ministry dedicated to the set-up of a National Ocean
Council for implementation of developmental projects,
a Continental Shelf, Maritime Zones Administration
and Exploration Department to develop the offshore
hydrocarbon and minerals sector of Mauritius, and a
High Powered Committee and Joint Public-Private Sector
Steering Committee to closely monitor project facilitation
and implementation. Business opportunities that are
expected under an ocean economy are seabed exploration
for hydrocarbons and mineral; fishing and seafood
processing; marine services including marine tourism
and marine pharmaceuticals; petroleum, minerals and
ocean energies; fisheries and aquaculture; seaport related
activities and deep ocean water applications (DOWA),
which include a plan to pump cold water of approximately
5 C from depths of around 1,000 meters to the surface to
cool buildings.
Other DevelopmentsIn October 2016, the “regulatory sandbox licence” (“RSL”)
was introduced following amendments to the Investment
Promotion Act 2000. The RSL allows eligible companies
to invest in innovative projects within an agreed set of
terms and conditions. It offers the possibility for an investor
to conduct a business activity for which there exists no
legal framework, or adequate provisions under existing
legislation in Mauritius. With the introduction of the RSL,
Mauritius put itself on equal footing with countries like the
UK, Singapore and Australia, who have applied the concept
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INVESTMENT GUIDE 2017/2018 | MAURITIUS 16
of RSL. The RSL will speed up strategic investments in
innovative projects in the absence of a formal licensing
framework.
The Economic Development Board (EDB) has been set
up following the Economic Development Board Act 2017
enacted on 19 July 2017. The EDB will integrate the Board
of Investment, Enterprise Mauritius, the Financial Services
Promotion Agency and the Mauritius Africa Fund to ensure
greater coherence and effectiveness in implementing
policies and actions and will facilitate both inward and
outward investment and ensure a conducive business
environment in Mauritius. The EDB which will be the
main business licensing agency in Mauritius will comprise
of three directorates namely: National and Sectoral
Economic Development Planning; Investment and Export
Promotion (Integration of BOI, EM, FSPA and MAF); and
Business Licensing Agency (Implementation of e-Licensing
business platform). It will also collaborate in the creation
of a Regional Fintech Association to create links with other
international institutions such as Innovate Finance London
and Fintech Circle.
In October 2017, a new category of Occupation Permit
was introduced following amendments to the Investment
Promotion Act 2000: the Innovator Occupation Permit
(Innovator OP) to expand the eligibility criteria for an
Occupation Permit. Foreign nationals willing to invest in
Mauritius and conduct Research and Development (R&D)
projects in innovative sectors may apply for an Innovator
OP through the Board of Investment.
The eligibility criteria to obtain an Innovator OP includes:
a. Investors will be required to make an initial investment
of at least USD 40,000.
b. The R&D expense component should constitute at
least 20% of total operational expenditure during the
research phase.
Moreover, with a view to encourage innovation and
the introduction of state-of-the-art technologies by
investors, the eligibility criteria for investors applying for
an Occupation Permit with a minimum investment of USD
100,000 have been expanded to allow the importation of
high-tech machinery and equipment as part of the required
USD 100,000 investment. The minimum cash investment
shall be USD 25,000 while the balance in of high-tech
machinery and equipment should worth USD 75,000.
The World Bank Group in its Doing Business 2018 report,
ranked Mauritius highest in Africa, with a World rank of
25. The annual report on the state of health of economies,
ranks countries around the world on the ease of doing
business in them and the 2018 report presents data for
190 economies and has reported improvements in ranking
in 8 out of 10 indicators namely Starting a Business,
Dealing with Construction Permits, Getting Electricity,
Registering Property, Paying taxes, Trading Across Borders,
Enforcing contracts and Resolving Insolvency. Mauritius is
among the league of top 10 countries in the Dealing with
Construction Permits and Paying taxes indicator. According
to the Doing Business 2018 Report, the best performing
economies have been those with good regulation that
allow efficient and transparent functioning of business
and markets while protecting public interest. In addition,
the economies ranking high on the Doing Business
indicators also tend to perform well in other international
data sets, such as the Global Competitiveness Index and
Transparency International’s Corruption Perceptions Index.
KEY DEVELOPMENTS
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BLC Robert & Associates2nd Floor, The Axis, 26 Cybercity, Ebene 72201, Mauritius
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The information contained in this report is of a general nature and is not intended to address the circumstances of any particular individual or entity. While the information is accurate as at date hereof, there can be no guarantee that the information is accurate as of the date it
is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
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