Doing business in Mauritius: Mauritius trade and export guide
Updated 3 June 2016
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This publication is available at https://www.gov.uk/government/publications/exporting-to-mauritius/doing-business-in-mauritius-mauritius-trade-and-export-guide
Brexit
Learn about changes for UK exporters to Mauritius if the UK leaves the EU without a deal.
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Find out how UK companies can control risks when doing business in Mauritius.
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1. Mauritius export overview
Mauritius is a small, middle-income, island in the Indian Ocean. The island is about the same size as Greater London.
The World Bank ranks Mauritius as the 32nd easiest place to do business out of 189 economies. The Heritage Foundation ranks Mauritius 15th in the world and first in Sub-Saharan Africa in terms of sound legal framework and rule of law.
Contact a Department for International Trade (DIT) Mauritius export adviser for a free consultation if you are interested in exporting to the Mauritius.
Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Mauritius.
The country acts as a platform for investment into India and has recently begun to establish itself as a gateway for investment into Africa.
British business is strongly represented in sectors like financial services, education and renewable energy. UK organisations present in Mauritius include HSBC, Standard Chartered Bank, Middlesex University, University of Central Lancashire, Aberystwyth University, Glasgow Caledonian University, HIVE Energy and Videre Global.
Benefits for UK businesses exporting to Mauritius:
- similar business and legal practices
- common language and historical ties (multilingual workforce)
- convenient time zone (GMT +4)
- availability of international arbitration
Strengths of the Mauritian market include:
- political stability
- strategic location in the Indian Ocean
- secure investment location
- availability of legal, accounting and finance professionals
2. Challenges to doing business in Mauritius
The challenges of doing business in Mauritius are:
- poor air connectivity to the African continent
- the need for infrastructure improvement
- shortage of skilled workforce in certain sectors, such as engineering and IT
- restrictive employment law
Read the Foreign and Commonwealth Office’s (FCO) Overseas Business Risk report for Mauritius.
3. Growth potential
Despite the global recession, the Mauritian economy has seen steady growth of above 3% since 2010. It is expected to continue along this trend in the immediate future with growth rates of between 3 and 4%.
3.1 Trade agreements
Mauritius has an investment promotion and protection agreement with the UK.
Mauritius together with the Eastern and Southern African (ESA) States has established an interim Economic Partnership Agreement with the European Union.
Mauritius is a member state of the Common Market for Southern and Eastern Africa (COMESA). This agreement allows for trading on a full duty free and quota free basis among member states.
It is also a member of the Southern African Development Community (SADC), members of which are largely exempt from customs duties.
4. UK and Mauritius trade
The UK exported goods worth £68 million to Mauritius in 2015. Export of UK services to Mauritius amounted to some £262 million in 2014.
The top UK export goods to Mauritius in 2015 were:
- vehicles and mechanical components
- beverages and spirits
- electrical and electronic components
- food products
Direct investment from the UK to Mauritius amounted to £16 million and UK tourists spent some £90 million in Mauritius in 2015.
5. Opportunities for UK business in Mauritius
Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.
5.1 Education and training
Mauritius aims to transform itself into a knowledge based, innovative, high income society through improvements to tertiary education and research. This will require improving the relevance of university studies to produce a quality labour force which will meet labour market demands and reduce the existing skills mismatch.
The tertiary education sector has developed rapidly in Mauritius. In 2015, there were 35 UK universities and awarding bodies offering UK qualifications in Mauritius. The government intends to make Mauritius a hub for UK tertiary learning institutions throughout the rest of Africa.
Opportunities exist for UK education providers for:
- continuous professional development for practitioners
- consultancy in the development of relevant educational / training programmes
- provision of tailor made programmes for industry eg career bridge programmes for the financial services sector
- articulation or franchise agreements
Contact Deeptee.Bungaree-Gooheeram@fco.gov.uk for more information about the opportunities in the education and training sector.
5.2 Power / renewable energy
The government has launched a renewable energy programme and established the Mauritius Renewable Energy Agency (MARENA). Mauritius aims to raise the share of renewable energy in the electricity generation mix from around 10% at present to 35% or higher by 2025.
Electricity production from renewable sources such as municipal waste recycling, solar and wind energy will be used to reduce carbon emissions and reliance on non renewable sources.
Various such projects operate on a Public Private Partnership (PPP) basis providing electricity to the national grid. 248 MW out of the 2,600 MW electricity consumed in 2015 were produced from renewable sources. The government intends to increase this share to some 900 MW in the coming years.
Opportunities for UK companies exist in:
- wind energy
- solar energy
- biomass energy
- marine renewable energies
- waste to energy
Contact Deeptee.Bungaree-Gooheeram@fco.gov.uk for more information about the opportunities in the renewable energy sector.
5.3 Ocean economy
Mauritius has a large exclusive economic zone of 1.9 million km2 and a continental shelf of around 396,000 km2 which is co-managed with the Republic of Seychelles.
The ‘Ocean Economy’ has been highlighted as an important pillar strategy to diversify the economy generatiing wealth and jobs. Direct contribution of this sector to the Gross Domestic Product (GDP) is expected to be around 20% by 2025. Around £1 billion PPP investment is expected between 2016 and 2020.
There are plans to transform the Port Louis harbour from a destination port to a regional hub. By 2025, container traffic in the port is expected to double and to exceed 1 million TEU. The port has the potential for a double-digit contribution to GDP in the long-term compared to the 3% it contributes at present.
It is expected that high value opportunities for UK businesses will open up in projects like:
- extension of the port area
- infrastructure work to accommodate larger container vessels
- a full-fledged marina
- bunkering activities
The ocean economy also offers opportunities in:
- seabed exploration for hydrocarbons and minerals
- fishing, seafood processing and aquaculture
- deep ocean water applications
- ocean knowledge
- marine finance and Information Communications Technology (ICT)
Contact Deeptee.Bungaree-Gooheeram@fco.gov.uk for more information about the opportunities in the ocean economy sector.
5.4 Financial services
Mauritius is one of the leading financial centres of the region. The financial sector contributes to 10.3% of GDP.
The government of the Republic of Mauritius, the London Court of International Arbitration (LCIA) and the Mauritius International Arbitration Centre Limited (MIAC) has entered into an agreement for the establishment and operation of a new arbitration centre in Mauritius. This will be known as the LCIA-MIAC Arbitration Centre.
The Captive Insurance Act 2015 was passed before the National Assembly in December 2015 for the incorporation and domiciliation of captive insurance in Mauritius.
Opportunities for UK companies exist in:
- private banking
- investment and cross border investment
- captive insurance
- derivative trading
- Islamic banking
- International arbitration
Contact Deeptee.Bungaree-Gooheeram@fco.gov.uk for more information about the opportunities in the financial services sector.
5.5 Infrastructure
Mauritius’ infrastructure projects include:
- £240 million road infrastructure investment as part of a road decongestion programme
- £80 million social housing investment with construction of 10,000 units
- smart city projects
An estimated £2.2 billion investment will be made in 13 smart city ‘mega projects’. Each smart city will be a large scale development which is self-sufficient in energy and water. It will also have its own integrated smart modern transportation.
The £575 million ‘Heritage City’ project will:
- accommodate a new Parliament, the Prime Minister’s office and other ministries
- hotel and residential units
- reduce traffic congestion in Port Louis
These infrastructure projects offer opportunities for UK companies in:
- consulting
- design and construction
- project management
- sale of appropriate technology and equipment
- PPP expertise
Contact Deeptee.Bungaree-Gooheeram@fco.gov.uk for more information about the opportunities in the infrastructure sector.
6. Start-up considerations
All businesses have to be registered and incorporated with the Corporate and Business Registration Department. The proposed company name must be verified prior to registration and incorporation to avoid duplication
The types of companies which can be incorporated are:
- company limited by shares
- company limited by guarantee
- company limited by shares and guarantee
- unlimited company
- foreign company
- limited life company
A company incorporated in Mauritius can be 100% foreign owned with no minimum capital.
You must pay a trade fee with your respective local authority within 15 days of the start of operations.
7. Legal considerations
Mauritius has a dual legal system based on the common and civil law of the UK and France.
In some sectors, businesses may have to apply for permits and licences. Some sectors require foreign investors to partner with a local company.
Business registration cards must be renewed every 3 years.
Contact the Department for International Trade (DIT) team in Mauritius to help find tax and legal advisers before entering into agreements.
7.1 Standards and technical regulations
Mauritius’ Consumer Protection Act specifies the standards and technical regulations governing the production and sale of goods.
7.2 Intellectual property (IP)
Infringement of copyright and intellectual property is not uncommon in Mauritius. You should ensure your trademark and/or other IP is registered to avoid fraudulent use.
8. Tax and customs considerations
Mauritius and the UK have a double taxation avoidance treaty.
8.1 Tax
There are a number of taxes in Mauritius, including:
- corporate tax – set at 15%
- income tax – set at 15%
- Value Added Tax (VAT) – set at 15%
- corporate social responsibility tax – set at 2% on book profits
- land transfer tax – set at 5%
There are no capital gains tax, no withholding tax on interest and dividends.
The Mauritius Revenue Authority is responsible for collecting all tax revenues and for enforcing tax laws in Mauritius.
8.2 Customs
The Customs Department of the Mauritius Revenue Authority applies the Customs Act.
You can find more about import tariffs in the Market Access Database.
9. Entry requirements
UK nationals do not need a visa to enter Mauritius, but must have a passport valid for at least 6 months before entry and with free space for immigration stamps. A proof of address in Mauritius and a return ticket should be produced at entry to obtain an authorisation to stay for 60 days.
9.1 Work permits
Non-residents must hold a valid Occupation Permit before they can work in Mauritius. The Board of Investment website offers the full details for the application.
9.2 Travel advice
Before travelling to Mauritius for business, check the FCO’s travel advice page.
10. Contacts
Contact the Department for International Trade (DIT) team in Mauritius for more information and advice on opportunities for doing business in Mauritius.