Mauritius international financial centre: a gateway to global investment and trade

The Mauritius international financial centre (IFC) is a dynamic and evolving hub offering a wide range of services and structures tailored to international investors, fund managers, corporates, high net worth individuals, and entrepreneurs. Strategically located at the crossroads of Africa, Middle East, Asia, and Australia, the Mauritius IFC offers a robust, transparent, and well-regulated platform for global investors and businesses seeking security, fiscal efficiency, and cross-border opportunities.

A track record of excellence

With over two decades of experience in cross-border investment and finance, the Mauritius IFC has built a strong reputation for reliability and innovation. It is home to a wide array of financial institutions and corporates including:

• International banks
• Legal and corporate service firms
• Investment and private equity funds
• Multinational companies
• Insurance and reinsurance providers

This diverse ecosystem supports a dynamic financial services sector that contributes approximately 14% to the national GDP.

Legal and regulatory strength

Mauritius operates under a hybrid legal system derived from both French civil law and English common law. The country retains the right of appeal to the UK Privy Council, ensuring an independent and impartial judicial process.

Regulatory oversight is provided by:

• Financial Services Commission
• Bank of Mauritius

Mauritius is fully compliant with international standards, including those set by the OECD, FATF, and Global Forum on Transparency and Exchange of Information. It has implemented the Automatic Exchange of Information and adheres to FATCA and CRS protocols.

Tax efficiency and incentives

Mauritius offers a competitive tax regime:

• Corporate tax rate: 15%, with 80% partial exemptions on certain income streams, resulting in an effective rate as low as 3%.
• Companies engaged in international trading of goods, where goods are bought and sold without being physically landed in Mauritius, can benefit from a 3% tax rate.
• No capital gains tax, no withholding tax on dividends, interest, or royalties
• Free repatriation of profits
• Tax holidays for strategic sectors such as global headquarters administration, and global treasury activities.

Double taxation avoidance agreements (DTAAs)

Mauritius has several active DTAAs, and they cover a wide range of countries across different continents. These agreements aim to:

• Eliminate double taxation of income
• Promote cross-border trade and investment
• Provide clarity on tax residency and permanent establishment
• Offer reduced withholding tax rates on dividends, interest, and royalties

Investment promotion and protection agreements (IPPAs)

Mauritius has entered into several IPPAs to encourage and safeguard foreign investments. These agreements are bilateral treaties that provide guarantees to investors from the contracting states, including protection against expropriation, free transfer of funds, and access to international arbitration.

Business structures

Mauritius offers flexible company structures tailored to different business needs:

• Domestic company: Ideal for local operations
• Global business licence (GBL): For companies conducting business primarily outside Mauritius
• Authorised company (AC): Managed and controlled outside Mauritius and not considered resident for tax purposes
• Protected cell company (PCC): Useful for managing multiple investments
• Fund structures: For cross-border investment and fund management
• Trusts, foundations, and family office structures: For wealth management
• Variable capital company (VCC): For investment funds and wealth management

Conclusion

The Mauritius IFC is more than a financial hub – it is a strategic partner for global investors and businesses. With its stable governance, legal framework, and business-friendly policies, Mauritius stands as a gateway to global investment and trade. Whether you're expanding into new markets or seeking a secure base for international operations, Mauritius offers the clarity and credibility you need.

In today’s fast-paced global economy, success demands more than just ambition – it requires precision, protection, and partnership. At Ocorian, we understand the nuances of cross-border business and deliver solutions that are both compliant and commercially sound.

To learn more about incorporating a company in Mauritius, contact our team today and download our useful jurisdictional SPV guide.