Due to a flexible tax system, convenient time zone, and easy incorporation, foreign investment in Mauritius is growing at a rapid pace. However, there is a high probability of things going south if you don’t have the proper guidance for company formation in Mauritius. Especially for foreigners who lack complete knowledge of how businesses are set up here. Nonetheless, with the proper steps and prior knowledge, everything can be done smoothly.
Here are the 7 essentials you should know before company formations Mauritius:
1. The Business Idea
Mostly the investors have the capital to invest but not any idea where to invest in. This becomes more difficult when you are starting a business somewhere else. For these investors, there is SMEDA (Small and Medium Enterprise Development Authority). This is a section of the Ministry of Business Enterprise and Cooperatives who help investors with business ideas. SMEDA’s database contains a whole list of project files that can assist investors in getting a concept for business.
2. The Business Plan
No matter if you are starting your business in Mauritius or anywhere else, the entrepreneur has to have a business plan that they have to submit. This plan is more like a report containing every single detail of the company and the type of business it wants to start. It needs to have everything from the name of the company and the number of directors and shareholders to the financial and management structure and target market. You can find the format of the business plan at the SMEDA website.
This entire drill is for luring in potential investors so that the local authorities know what to expect from the business.
3. The Business Type
This is similar to having a business idea. One must know the kind of business they want to start. For example, do you want to be a sole-proprietor or want to form a public or private limited company? A joint venture is another option. This is important because some countries do not allow some business types if foreign investors own them. Check out the business types that are allowed in Mauritius before pursuing your idea to avoid landing in hot waters.
4. Selecting the Location
Since it’s an island, you don’t have a lot of variety in terms of location. And finding the perfect location is essential as it’s going to be the focal point of all your operations. You will have to make decisions like do you want to rent an office space, use a virtual office, or sign a lease for the building.
5. Registering the Business
The most important aspect of starting a business in Mauritius is getting it registered. The company has to be registered before beginning their business operations. The registration process is rather easy and can be done easily. You will have to fill out a few forms and submit a few documents to the Registrar of Business.
6. Getting a Land Use Permit
Be it any business, it needs to have a warehouse, factory, or an office, where products will be stored/manufactured. In Mauritius, using land or building for this purpose requires a special permit from the government. You can get the Land Permit from the Planning Department of Municipality or even from the District Council.
Once these government bodies have been informed, they send over officials to inspect the buildings and ensure that they have been cleared for use. These could be the local police or the fire service department. After all the government bodies have given the go-ahead, the operations can be started.
7. The implementation
After all the above-mentioned steps have been completed, you are now ready to start operations. However, be mindful that there are a few other matters as well such as the trade fee of local authorities, buying equipment, machinery, and supplies for the business.
Once you are done with all that, you have to hire employees, settle the wage rate and salaries. These seven steps could be of great assistance to you for your Mauritius offshore company formation. With the proper knowledge, you can easily set up your business here. The key is to understand that since you are a foreigner, things are going to be somewhat different than your native country. You have to follow the necessary rules and regulations regarding business startup and company formation in Mauritius for things to go well for you.