17+ Pros and Cons of Doing Business in Mauritius

Business & Company 17+ Pros and Cons of Doing Business in Mauritius

17+ Pros and Cons of Doing Business in Mauritius

Mauritius is an island country settled in the Indian Ocean and blessed with nature. It is a nation with diverse cultures including, African, Indian etc. It has many ports and airports, which is a positive point, according to the business establishment. Additionally, Mauritius offers a variety of business sectors to develop in the country.

The government has designed many business-friendly policies which attract a large number of business owners and investors to the country. This article highlights some benefits and drawbacks of starting a business in Mauritius.

Benefits of Doing Business in Mauritius The Drawbacks of Doing Business in Mauritius
Low working hours Getting credits 
Diversified Population Enforcement of contracts and deals
Gender equality High Crime rate 

Advantages of Doing Business in Mauritius

  • Tax Policies:

Mauritius has highly attractive tax policies which are both business-friendly as well as investment-friendly. The government of the country provides high relaxation on taxes which is beneficial for startups as well.

The corporate tax is just 15% and one can establish an offshore company with low amounts of tax. The country provides 80% of tax relaxation for offshore companies which are highly remarkable. 

  • Signatories:

The government of Mauritius has also signed the double tax agreements with around 33 countries. The VAT tax is also less than 20% which makes it beneficial for business owners and entrepreneurs. 

  • Infrastructure:

The country provides a highly developed infrastructure for starting a business. Many business parks and complexes are formed in the country which offers ready-made estate, to begin with, the business.

Any foreign company can easily set up business on these sites within three days. Moreover, the company can also have 100% foreign ownership which is an excellent benefit for foreign business owners and entrepreneurs.

  • Economy Status:

Mauritius has successfully developed a robust economy from the past few years. The stable as well as creating economic graph makes business owners and investors attracted towards the country. 

  • Minimum Captial Investment:

The free economy relaxations allow you to start a business with no minimum capital investment. One can quickly transfer the profit to his own country without any taxation. This leads to more investors to invest in the country.

Moreover, business leaders can quickly expand their business with no worry of high-risk loss.

  • High education:

The country has high education standards and successfully produces skilled young minds every year. The education system is not based on just theoretical principles but focuses on developing practical knowledge and understanding power.

The workforce available in the country is highly skilled and also dedicated to their respective roles. 

  • Technology:

The country has high standards of technology and Innovation. Telecommunication departments are highly advanced and make the government work rapidly. The internet service is available 24×7 that brings several benefits to the nation.

The pharmaceutical industry, biotechnological industries and research industry are highly advanced and developed. The IT sector, engineering department also brings the wave of technological advancement in the country.

Disadvantages of Doing Business in Mauritius 

  • Starting with business:

Starting with business in Mauritius requires a lot of time and energy. The document legalization and procedures take plenty of time than needed.

Many different government departments are required to be visited and physical presence is required for the procedures. Moreover, the license approval takes extra time which delays any start of business.

  • Payment of Tax:

Payment of tax is another burden in the country. There are a total of 7 taxes to be paid which requires an average of 161 hours.

However, the tax rate is low in Mauritius as compared to other countries. Different types of government departments have to be visited. This takes a lot of time and energy, which delays the business development.

  • Construction Permits:

The construction permit requires visits to different government departments. Moreover, multiple inspections are carried out before giving any permissions. This takes plenty of time and delays the primary construction process.

Additionally, many different types of government departments control the procedures; hence it takes a more generous amount of time to get a conclusion.

  • Getting electricity:

Electricity connection and permission also requires a lot of time. The legalization process takes upto four weeks before the installation of the meter. Multiple inspections are required by government departments before the legalization.

Central Electricity Board (CEB) controls the electricity supply permission and has designed a long process for the business owners to get electricity connection.

  • Insolvency Solution:

If any company faces insolvency whirls, it gets challenging to get a solution. It takes upto 1.7 years of time to get out of insolvency. Moreover, it takes a huge loss in terms of economic growth and recovery rate is also very slow for companies after bankruptcy.

  • Trading across Borders:

Trade across borders requires a long process for legalization. However, the cost of trading is comparatively lower than in other countries. But the transportation of goods takes a lot of time because of the legalization procedures. 

  • Hierarchy:

Mauritius is not left for following the hierarchy system. Country citizens are given higher opportunities and wages as compared to non-country citizens. Moreover, it has become necessary for every company established in the country to have at least one country citizen at a higher post and as a significant representative in the company.

This leads to an unhealthy environment for coworkers and causes internal disputes which cause a delay in the development of the company.

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