Some possible uses of Mauritius to prospective global business investors are as follows:

International banks may establish banking companies in Mauritius either as locally incorporated companies or as branches of overseas companies.  Profits arising from non-resident clients segment attract a lower effective rate of taxation of 5%.

Mauritius has a simplified licensing procedure and has no restriction on repatriation of profits.  Banking secrecy is strictly observed within the framework of the Banking and the Financial Intelligence and Anti-Money Laundering Acts.

Mauritius is recognized as a leading regional centre for offshore fund structuring and administration, for investment particularly in Indian, Asian, Middle East and African countries.  The Companies and Securities Act and Rules permit establishment of open and closed ended schemes, retail, professional, hedge and venture capital funds.  Unit trust and partnership schemes and foreign recognized schemes may be registered in Mauritius.  Funds may also be established as protected cell companies, the benefits of which are described below.
Government encourages the setting up of local fund management and advisory companies.  Low cost professional and administration support combined with treaty benefits enable efficient operation of funds from Mauritius.

Owing to tax incentives offered, quick registration procedures, low running costs and a well developed infrastructure, Mauritius is especially suitable for the establishment of offshore captive insurance and reinsurance companies.
A captive insurance company can either be:

• a wholly owned or controlled subsidiary of an industrial or commercial
  group established for the purpose of participating in the risks of the group, or
  
  
• an association of unrelated companies or individuals with the aim of insuring their risks.

Special legislation permits segregation of assets and related liabilities within a company into cells and limits the claim of a creditor against assets of the cell it has contracted with.  This overcomes the problem encountered with an umbrella fund company whereby the excess liabilities of a sub-fund can be set-off against the assets of the entire company.  The ring-fencing of claims is possible for offshore funds, captive insurance companies and investment holding companies.  The PCC also simplifies administration and reduces costs of operation.



Mauritius was an automatic landing choice for sea travellers between South Africa and Asia.  It has a rich nautical history.
Present day shipping activities include ship owning, bare-boat chartering and the operation of ships in international waters.  Vessels of any type may be registered in the Mauritian Register of Ships.  Registration may be initially provisional, permanent or parallel.  Mortgages in the British current account style, may be registered with the Registrar of Mortgages.

Mauritius offers an ideal legislative framework and conditions for the creation of trusts and their administration.  They are governed by the Trusts Act 2001. Trusts do not require registration thus providing absolute confidentiality.
Trusts can be used to:

• safeguard assets against bankruptcy if timed carefully;
  
  
• achieve an orderly distribution of the settlor's assets after his death,
  including the holding of assets for minors until they reach majority;
  
  
• rearrange beneficial ownership of assets;
  
  
• avoid inheritance laws in the country of residence;
  
  
• accumulate income and protect assets;
  
  
• manage pension funds and investments generally
  
  
• provide for charitable giving.

These provide a convenient and confidential structure for the ownership of assets worldwide.  Assets may include real estate, stocks/shares, works of art or jewellery.  The arrangement while remaining confidential, provides a legal means of sheltering assets from taxation and/or other encumbrances.

Mauritius can be an excellent centre to form and operate holding structures.  Holding and investment companies may be used advantageously in conjunction with Mauritian double tax treaties, in view of the nil or low withholding tax rates on interest and dividends provided for in the treaties. Most treaties also avoid capital gains tax in the country of investment.

An offshore holding company can be the parent company for companies registered abroad as well as Mauritian registered global business companies.

Where the business consists of buying goods or services in one country and selling them in another, invoicing companies can be useful because they offer:

• the possibility of tax free accumulation of funds;
  
  
• a convenient administrative base and a means of trading with areas of political or financial instability;
  
  
• substantial savings in labour and tax through the employment of specialists overseas.

Such companies can also be used for transit trade activities in combination with the freeport zone which is operational in Mauritius.

Mauritius offers ideal conditions for the location of regional management and administrative centres of multinational companies throughout the world with interests in the Middle East, East and South Africa, Asia and the Indian Ocean regions.

The use of a global business company for investment in property can be highly beneficial depending on the jurisdiction in which such property is located.  Such use can, inter alia, avoid:

• capital taxes on subsequent sale;
  
  
• inheritance tax or death duties which would arise if the property was held directly by an individual;
  
  
• the need to obtain probate.

Such companies may take advantage of the Mauritian double tax treaties by providing loans in treaty countries or other countries where withholding tax on interest is low or nil.

Owing to the low or nil rate of withholding for royalties provided in most of the Mauritian double tax treaties, establishing a royalty company in Mauritius can also prove very attractive.

These companies may provide services such as sales promotion, debt collection, treasury management, accounting functions, consultancy work, recruitment, etc.  They may employ expatriate staff who benefit from double tax treaty provisions by paying tax in Mauritius at low rates.

Companies can be incorporated as or converted to Limited Life Companies and where properly adapted can fulfil the functions of a limited partnership.  The Limited Life company is widely used for private equity funds and management companies.

Confidentiality provisions are enshrined in the Mauritian civil and banking codes which have been further reinforced in the Financial Services Development Act 2001.  For example, financial statements of a GBC 1 are filed with the FSC and not with the Registrar of Companies.  Trusts and GBC 2s do not have to file financial statements. 

Limited public inspection of global business company records filed with the Registrar of Companies is only possible for public companies.

All supervisory and regulatory authorities maintain complete secrecy of all information disclosed by global business entities, other than if required under the Financial Intelligence and Anti-money Laundering Act 2002 or The Prevention of Corruption Act 2002 or under a Protocol for the exchange of information with other regulatory bodies to disclose specific information, for supervisory purposes only.

Mauritius is recognized as an efficiently regulated financial centre for business and professional services, and is free from the suspicion often associated with tax havens.  The business infrastructure facilities coupled with the numerous tax incentives available to foreign investors continue to attract global businesses to Mauritius.