1. RESEARCHATSASHWAAT
ARTICLE
2011
research mehariaSearching for Truth
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Sashwaat Society of
Education & Research
http://www.researchatsashwaat.com, http://www.meharia.in © 2011 Sashwaat Society of Education & Research, all rights reserved
Piyush Meharia,B.A. LLB. Senior Associate
piyush.m@meharia.in
Article Published date : 6th October 2011
Subject :
Investment Opportunities in Mauritius

2. page. 02
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Investment Opportunities in Mauritius
A Law and Applied Research based report from the wings of SSER
Mauritius is considered one of the developed economies in semi urban Africa. Mauritius is an
independent and sovereign country with a population of 1.2 million inhabitants, who are bilingual in
French and English. It is advantageously located in the Indian Ocean region, at the junction of
investments. For the past twenty years, it has enjoyed exceptional socio-economic development and
an average economic growth of 5%. It rests on a flexible economy and is set to become the main
financial and business hub. The growth of Mauritius can be attributed to its economic governance,
good financial and business infrastructure and reputation for efficiency, reliability and probity.
Here at SSER, we have put our heads into the thoughts, gone deep into the predicament and have
analyzed the issues. The following few lines is our endeavor to highlight the essential issues and their
implication related to the matter. We expect this Article will reach out to the parlor of common man
those who are directly or indirectly connected with the issues and for whom our Legal Research
Service is extended.
Investment Opportunities
In the past few years, a degree of optimism has been seen in property development as several
international flagship hotels, luxury villas and commercial malls have invested extensively in Mauritius.
In fact, a new wave has started in landmark property development that is setting new standards
regarding quality and design of build. Investors are invited by the Board of Investment to obtain
benefits of opportunities in sectors that are emerging, under-exploited or needs expansion. On the
other hand, investors are also showing a steady interest in the sector of luxury residence. The
integrated resort schemes of the government are held responsible for driving this interest among the
investors. It bestows on the foreigners residency rights and title to their own homes.
Their investment opportunities are in areas like development of upmarket business and tourist hotels,
building of residential housing and resorts, setting up of spas, wellness centres and amusement parks,
building of duty free shops and shopping malls and development of industry and business parks and
new office space. Investment opportunities are also there in various other fields like Agro-business,
Life Sciences, International Business Service and Emerging Sectors.
Agro-business like sugar cane cultivation offers various investment opportunities to investors as it is
Mauritius’s main agricultural activity. The industry is planning on diversification, with the end of the
quota free access and guaranteed price for its sugar in the European market. The country was a net
importer of food and housed a small-scale floriculture and horticulture industry. Presently, the country
is devising ways of growing its own food. The investment opportunities serve both export and local
markets and include value-added processing, cultivation of a wider range of produce and livestock
keeping.
Mauritius aims to become a major competitor in fields of clinical trials, biomedical research, pharma-
ceuticals and medical devices. In fact, it has all the conditions for a fast-growing and strong life
sciences industry such as cutting-edge technologies, entrepreneurial spirit, highly skilled workforce,
intellectual and strong property protection regime and academic excellence. It offers investment
opportunities in pre-clinical trials, basic research, process and product development, clinical
development and manufacturing of pharmaceutical products and medical devices.
Owing to its location, Mauritius plays an important role in serving value-added business services to
Asia, Africa and rest of the world. The inherent qualities of the country like global connectivity and
state-of-the-art infrastructure can lead it to become the region’s new economic powerhouse. More
than 40 international flights operate daily from Mauritius to major Asian, African and European cities.
The International Business Service provides investment opportunities in fields such as human resource
and knowledge development services, information management and telecommunications services,
professional services, provision of financial services, BPO and IT services, provision of distribution and
logistics services and design, digital entertainment and media services.
http://www.researchatsashwaat.com,
http://www.meharia.in
© 2011 Sashwaat Society of Education & Research, all rights reserved
RESEARCHATSASHWAAT
ARTICLE
2011
Subject:
Investment Opportunities in Mauritius
Author :
Piyush Meharia,
B.A. LLB. Senior Associate
piyush.m@meharia.in

3. page. 03
research mehariaSearching for Truth
TM
In Mauritius, the emerging sectors evolve around the environment, ocean, water conservation and
management, telecommunications, renewable energy and creative arts. The business opportunities in the
emerging sectors are considered to be capable of creating new jobs, new investments and economic
growth.
Legal Framework leading to Economic Growth of Mauritius
Besides agriculture sector, up-market tourism and textile production forms the larger part of the economy
of Mauritius. By passing a series of user-friendly and modern legislation, the fiscal and legal framework has
been consolidated in Mauritius. All this has led to the rise of the country as a famous offshore financial
services centre and added another aspect to the country’s economic prosperity.
While preparing the new legislation, the‘best practice’principles were adopted by the Government to
make Mauritius the ideal destination for structuring and holding global investments. The legal framework
of Mauritius that governs companies and trusts is perhaps the most contemporary of all jurisdictions. With
a view to combat terrorism financing and track money laundering, the country has not only stuck to the
innovative international requirements but also passed suitable legislation in this respect. The country
joined the Egmont Group in 2003, which is a membership that enhances the quality image and prestige of
the jurisdiction.
The Mauritius Advantage
Mauritius has a large number of graduates and certified and qualified accountants and lawyers. It includes
an international stock exchange and well established banking institutions. Its strategic time zone enables it
to do business in the morning with the Far East, in around mid-day with Europe and in late afternoon with
U.S.A. Its Parliamentary Democracy is founded on the model of Westminster and guarantees political
stability. Even, the administrative and living costs are quite low in this country. The legal system of the
country is hybrid and is based on French and English laws. U.K’s Privy Council is the Highest Court of
Appeal. It also has the membership of the International Centre for Settlements of Investment Disputes, the
International Court of Justice and the Multilateral Investment Guarantee Agency.
Mauritius is known for its regulated financial services centre that is devoted to the protection of the
investor. It has a progressive regulatory framework that is based on the‘best practice’principles of the
industry and is obedient to internationally accepted supervision norms, including Basle Committee’s
norms on Banking Supervision. The country also has a committed jurisdiction that cooperates with
organizations like FATF, OECD and the United Nations and its agencies. It provides assured confidentiality
to those people who are engaged in lawful business by means of express provisions and traditional laws
governing relationships between customers and banks and between clients and professionals. It provides
repatriation of profits for free, without withholding tax on royalties, dividends and interests. Its modern
telecommunication facilities are linked to the SAFE fibre optic network and profound investments are
being made to develop Mauritius into a cyber island. A number of Investment Promotion and Protection
Agreements (IPPAs) have also been concluded by the country.
Fiscal Incentives
The Fiscal Incentives include tax exemption of GBC2; no tax on capital gains; GBC1 subjected to low tax
rates; no withholding tax on royalties, interest, dividends and remittance of branch profits; no inheritance,
wealth, estate duty or gift taxes and no limit on carrying forward the tax losses. The list also includes a 10%
investment tax credit for capital expenditure and no registration duties, stamp duties and levy. In Category
2 banks, the interest paid on deposits are tax exempted and for GBL1 employed expatriate staff, a reduced
personal income tax rate is at 12.5%. For global business transactions, it provides a zero rated Value Added
Tax. Royalties, service fees and interest owed to foreign affiliates are approved as expenses on the
condition that they correspond to the actual incurred expenses and are reasonable.
http://www.researchatsashwaat.com,
http://www.meharia.in
© 2011 Sashwaat Society of Education & Research, all rights reserved
RESEARCHATSASHWAAT
ARTICLE
2011
Subject:
Investment Opportunities in Mauritius
Author :
Piyush Meharia,
B.A. LLB. Senior Associate
piyush.m@meharia.in

4. page. 04
research mehariaSearching for Truth
TM
Benefits regarding Tax
Business costs at competent rates and a low tax jurisdiction are offered to the investors. In reality, the tax
regime of Mauritius is the lowest than many other places in the world. The tax system includes income and
corporate tax of 15%, no capital gains tax, exemption from customs duty on equipment, minimum foreign
capital not required and widespread tax treaty network with many countries. Tax free dividends; foreign
ownership of up to 100%; free repatriation of dividends, profits and capital and annual allowance of 50%
on declining balance for purchasing computer and electronic equipment complete the list.
Tax Residency
In order to profit from tax relief, a Category 1 Global Business Company needs to have a Tax Residence
Certificate (TRC), under the Double Taxation Agreements. In Mauritius, the Commissioner of Income Tax
issues the TRC. The company needs to demonstrate that its“effective management and control”is in
Mauritius, in order to be a tax resident.
The applicant company must have the following requisites to satisfy the criteria. The requisites include
having a minimum of 2 resident directors in Mauritius, maintaining an active account with a local bank and
having a local auditor and a qualified local company secretary. The company must initiate and chair Board
Meetings within or from Mauritius and maintain all statutory records and its registered office in Mauritius.
In order to ensure eligibility of DTA profits, the investors should satisfy the relevant conditions in the
country of investment also.
This is an effort from SSER, with the assistance of Meharia & Company, reputedly largest law firm in Kolkata,
Delhi and Mumbai and we have taken the onus of dealing into any matter that affects the common
people. We believe our free legal advice would be helpful to them.
http://www.researchatsashwaat.com,
http://www.meharia.in
© 2011 Sashwaat Society of Education & Research, all rights reserved
RESEARCHATSASHWAAT
ARTICLE
2011

5. research mehariaSearching for Truth
TM
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