Exploration of Mauritius' Thriving Startup Ecosystem in 2024.
“The Tax haven for offshore investments.”
Good morning, savvy entrepreneurs and tech enthusiasts! Are you guys ready? That was a rhetorical question 😅
Mauritius is not only a place where celebrities visit when experiencing mental breakdowns to sip on cocktails while basking in the sun on the beach. There is more; this piece delves into the complexities of the startup scene in Mauritius in 2024, examining its origins, the thrilling future of the island, and the opportunities it presents to African startups as a whole.
Mauritius/Maurice, home to 1.3 million people, is situated in the heart of the Indian Ocean. Despite having a small population, Mauritius's startup scene grew in 2023 and outranked Kenya (Africa's Silicon Savannah), moving up ten places from the previous year. Mauritius has one city in the top 1000 and is one of Eastern Africa’s best countries for setting up startups ranking 61st worldwide. It's reasonable to say that Mauritius is a testament to the power of tenacity and cooperation in developing businesses.
How Mauritius Laws Encourage Local Startup Growth
The small population of Mauritius makes it easy to overlook. What most people fail to realise is that the island state is a hidden gem for startup investors pursuing high returns while enjoying minimal regulations and extremely favourable tax policies. The island is positioned at the maritime boundary with India; this presents an opportunity for savvy investors to leverage tax treaties, such as the "India-Mauritius Treaty,” which offers exemptions on capital gains earned by Mauritian tax residents willing to do business in India. Post-2016, Mauritian investments channeled to Indian companies became exempt from taxation. Regulatory support improved significantly with the 2017 reforms, which granted a sweet eight-year tax exemption for startups that are innovation-driven. The progression in terms of tax relief on R&D to a five-year tax holiday for e-commerce and peer-to-peer lending entities has allowed Mauritius to nurture diverse sectors.
Mauritius and India’s close relationship.
Equity flows into India, Apr 2000-Mar 2016
It’s important to note that most of the cool privileges are accessible through acquiring citizenship. So, the question becomes: how challenging is it to acquire citizenship in Maurice? It may be simpler than you can possibly imagine. This article will only touch on one type of visa, the Mauritius digital nomad visa, but there are more visas that allow startups to be flexible.
Mauritius Digital Nomad Visa
In an attempt to encourage long-term visits, the Mauritian government introduced the Premium Visa; this visa scheme is used by digital nomads who wish to work remotely on the island. There are no fees charged when applying for this visa. It is very easy to acquire the Mauritius digital nomad visa; the application is online and takes only a few minutes to fill out. You will have to wait about 48 hours for a response via email. The cost of living is reasonable; the city areas might be the most expensive residential areas in the island, with the average apartment costing between $400 and $800 per month. However, one can find affordable apartments outside the city.
Notably, Mauritius has the second strongest passport in Africa (behind Seychelles) and ranks amongst the strongest Caribbean CBI passports. The Mauritius passport has visa-free access to 146 countries, including the United Kingdom, Europe's Schengen area, Japan, New Zealand, China, and Russia.
How much does it cost to get a startup registered in Mauritius?
Quick answer: no fee is payable for the registration of a company/commercial partnership.
This gives startups a great deal of power to enter a larger market in a flourishing atmosphere. I have to admit that this makes this offer seem almost too good to be true, but it is.
As we bid farewell to this exploration, it’s only fair to acknowledge Mauritius for its dynamic force in the startup scene, beckoning innovators and investors to its shores with the prospect of notable economic growth, and a touch of extraordinary versatility.
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