Doing business in Mauritius: Your guide to opening a bank account

Investing, working, living, or retiring in Mauritius provides unique opportunities for foreigners. Central to this endeavor is the Occupation Permit (OP) which enables foreigners to both invest or work and reside in Mauritius. Particularly significant for entrepreneurs is the 20-year Residence Permit, which becomes available after holding the OP for three years. Notably, there is no requirement to possess a local bank account during this period. In this article, the C&S Secretarial Services team explores the process of opening a local bank account within the context of establishing a business in Mauritius.

Banking legislation in Mauritius

Mauritius’ robust banking regulations rest on pillars such as the Bank of Mauritius Act 2004, the Banking Act, and the more recent Payment Systems Act 2018. These legislations distinctly outline the rules, creating a secure and regulated environment for financial operations.

Conditions for offshore companies

Setting up an offshore company in Mauritius often means opening an offshore bank account. This strategy is appealing due to the significant tax benefits and confidentiality provided by the Mauritian legal framework. Foreign entrepreneurs can take advantage of a favorable tax environment while safeguarding the confidentiality of their activities.

How to open a bank account in Mauritius

The procedure for opening an offshore bank account in Mauritius is streamlined to cater to the requirements of international entrepreneurs. The necessary documents, compliant with banking standards, can be submitted remotely, providing much-needed flexibility. This approach eliminates geographical constraints and simplifies the process for international customers.

Key aspects of Mauritian banking legislation

Legal framework: The sector is regulated by key laws such as the Banking Act, the Bank of Mauritius Act, and the Payment Systems Act.

Insured deposits: The Deposit Insurance Scheme Act ensures the protection of customer deposits.

A secure destination: Robust financial legislation positions Mauritius as a secure and attractive banking destination.

Opening a bank account: practical details

Timeframe: It typically takes around 7 days, which proves to be quite convenient.

Aggregate services: Offshore accounts come with financing options, debit/credit cards, and online access.

Online accessibility: Online banking services are available, providing added convenience for international entrepreneurs.

Mauritius, a distinguished financial hub

Mauritius, a respected financial hub, boasts over 300,000 offshore companies and hosts more than 20 local and foreign banks. The country is acknowledged as a leading financial center. Offshore bank accounts are highly regarded for providing access to top-tier financial services. International entrepreneurs are able to find a vibrant financial ecosystem here, tailored to meet their specific needs.

No drastic restrictions

Unlike a few other jurisdictions, Mauritian legislation imposes no stringent restrictions on the opening of onshore or offshore accounts, whether for individuals or companies. This flexibility fosters the internationalization of business activities and grants entrepreneurs significant latitude.

Mauritius: the perfect destination for setting up a business

Mauritius is at the forefront of business and investment opportunities in Africa. It stands out as one of the only countries offering a dual legal system that combines the benefits of common and civil law, and it is also a center for international arbitration. The absence of exchange controls, withholding taxes, and capital gains taxes makes it an enticing tax option for international investors. Acknowledged as a secure and dependable investment hub, it thrives on a free and democratic political system that fosters stability conducive to business expansion.

Mauritius’ human resources also provides an edge to this independent and dynamic republic, boasting a highly qualified bilingual (English and French) workforce that facilitates communication and international collaboration. Its extensive network of Double Taxation Agreements (DTAAs) and Investment Promotion and Protection Agreements (IPPAs) streamlines strategic tax planning, providing offshore companies with the flexibility needed to optimize their financial structure.

Strategically positioned in a convenient time zone (GMT +4), Mauritius becomes an attractive commercial hub, enabling efficient coordination of operations with global partners. In summary, this destination is rapidly gaining grounds as a preferred center for establishing offshore businesses, offering an ideal ecosystem that combines favorable legislation, political stability, and infrastructure conducive to business growth.

Conclusion: make an informed decision

Setting up a business in Mauritius as well as the opening of a local bank account, stands out as a strategic decision for numerous international entrepreneurs. The blend of robust legislation, streamlined procedures, and tax benefits makes the Mauritian financial center an appealing choice. Informed decisions, when coupled with professional advice, significantly ease the process of international expansion. For comprehensive, high-quality, and efficient assistance in opening your company’s bank account in Mauritius, reach out to C&S Secretarial Services!