The economy of Mauritius

The economy of Mauritius is a high-income economy, with an estimated gross domestic product (GDP) of $25.8 billion in 2020. The economy is based on the export of goods and services, particularly sugar, textiles, and tourism. The country has also developed a strong financial services sector and is a major regional financial center. The government has implemented a number of economic reforms in recent years, including the liberalization of the foreign exchange market and the privatization of state-owned enterprises. The country has also seen a surge in foreign direct investment, particularly from China. Mauritius is a member of the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA).

How does Mauritius regulate financial markets?

Mauritius regulates financial markets through the Financial Services Commission (FSC). The FSC is responsible for the licensing, supervision, and regulation of all financial services providers, including banks, insurance companies, securities dealers, and collective investment schemes. The FSC also regulates the activities of non-bank financial institutions, including money lenders, foreign exchange dealers, and money transfer services. The FSC also sets and enforces standards for the conduct of financial services providers, and monitors compliance with these standards. Additionally, the FSC works with other regulatory bodies, such as the Bank of Mauritius and the Stock Exchange of Mauritius, to ensure the stability and integrity of the financial system.

How to register a company in Mauritius?

1. Choose a Company Name: The first step in registering a company in Mauritius is to choose a company name. The name must be unique and not already in use by another company.

2. Prepare the Memorandum and Articles of Association: The Memorandum and Articles of Association are the documents that set out the rules and regulations of the company. These documents must be prepared and signed by all shareholders. 

3. Obtain a Business Registration Number: The next step is to obtain a business registration number from the Registrar of Companies. This number will be used to identify the company and is required for all official documents.

 4. Register the Company: The company must then be registered with the Registrar of Companies. This involves submitting the Memorandum and Articles of Association, the business registration number, and other relevant documents. 

5. Open a Corporate Bank Account: Once the company is registered, it is important to open a corporate bank account. This will be used to manage the company’s finances and is required for all official transactions. 

6. Obtain a Tax Identification Number: The company must also obtain a tax identification number from the Mauritius Revenue Authority. This number will be used to identify the company for tax purposes. 

7. Register for Value Added Tax (VAT): If the company is going to be selling goods or services, it must register for Value Added Tax (VAT). This will enable the company to charge VAT on all sales and will be collected by the Mauritius Revenue Authority.

Taxation in Mauritius

Taxation in Mauritius is managed by the Mauritius Revenue Authority (MRA). The MRA is responsible for the collection of taxes, duties and other levies imposed by the Government of Mauritius.

Taxation in Mauritius is based on a progressive tax system. This means that the higher the income, the higher the tax rate. The tax rate for individuals ranges from 0% to 15%. For companies, the tax rate is 15%.

The main taxes levied in Mauritius are:

* Income Tax: This is a tax on income earned by individuals and companies.

* Value Added Tax (VAT): This is a tax on the sale of goods and services. * Corporate Tax: This is a tax on the profits of companies.

* Social Security Contributions: This is a tax on wages and salaries paid to employees.

* Customs Duties: This is a tax on imported goods.

In addition to these taxes, there are also other levies such as stamp duty, transfer tax, and property tax.

Mauritius has a number of tax incentives and exemptions to encourage foreign investment. These include tax holidays, duty-free imports, and tax-free repatriation of profits.