An overview of global business sector in Mauritius, and its challenges and characteristics

1. Welcome!
02 May 2018
Thanks for joining us

2. The Global Business Sector In
Mauritius
MODULE: GLOBAL BUSINESS ADMINISTRATION
PRESENTED BY :
TEJASWINI
VEERMAN
TESHA
KAVEE

3. PRESENTATION OUTLINE:
01 02
03
05
04
06
Key Characteristics of Mauritius
The Different Challenges
That the Global Business
Sector is Facing
Global Business Sector
In Mauritius
.
The Impact of The Global Business
Sector In Mauritius
.
Conclusion And
Reflection
What Is Global Business
Sector(offshore)?

4. WHAT IS
GLOBAL
BUSINESS
SECTOR?
• Formerly Known by the term Offshore.
• Business Activities located beyond national
Boundaries.
• A Global Business is more or less the same as an
onshore Company.
• A company may move offshore for the purpose of
better Tax jurisdiction.
• The Global business sector can also be used for
illicit and criminal purposes.

5. International
Overview of Global
business sector
 Global Business Companies
Are Recognized Worldwide.
 Mostly Small Countries
 Low or zero-tax Jurisdictions
 COMMON OFFSHORE REGION:
• Europe/Middle East
• North America
• Asia
• Africa
Top Five Tax Haven Islands:
 Jersey
 Cayman Islands
 British Virgin Islands
 Bermuda
 Mauritius

6. MAURITIUS
• The Republic Of Mauritius Located In
The Indian Ocean.
• The Area Of The Island Is 2,040 Km2
• 1.3 Million Of Citizens.
• Forms Part Of The Mascarene Islands

7. Global Business Sector in Mauritius
Global Business Sector in Mauritius
 Mauritian Economy – From Sugar Production To Manufacturing Sector Combined
With The Creation Of The Export Processing Zone.
 1992 – Introduction Of The Financial Services Sector As The Fourth New Pillar Of
The Economy.
 Mauritius Succeeded In Becoming A Regional Financial Services Centre.
 Double Taxation Agreements Increased.
 Mauritius Succeeded In Attracting Major Multinationals.
 Mauritius And Seychelles Are Considered As The Two Main Offshore Hubs In The
African Region

8.  Offshore Incorporation In Mauritius Is Regulated By The FSC.
 Responsible Body For Licensing, Regulating, Monitoring,
Supervising All Non- Banking Financial Activities.
 The Fsc Was Set Up By Act Of Parliament Under The Financial
Services Development Act 2001.
 Gives Directions, Issue Roles, Guidelines, Or Code For The Proper
Conduct.
 Offshore Incorporation In Mauritius Can Only Be Made With The
Fsc By Licensed Offshore Management Companies.
The Financial Services
Commission Mauritius
THE REGULATOR

9. Global Business
Companies
• There are two types of Global Business companies
• Highest degree of confidentiality
• The choice will depend on a number of factors
• Undertake activities ranging from investments in
various parts of the world

10. Global Business Company 1 vs Global Business Company 2

11. KEYCHARACTERISTICS
1 - AN EXTENSIVE NETWORK OF
DOUBLE TAX TREATIES
3 - CONFIDENTIALITY
5 - STOCK EXCHANGE
OF MAURITIUS
7 - LOCATION
2 - REGISTRATION OF OFFSHORE
8 - LOW TAX REGIME
4 - PRESENCE OF LARGE POOL
OF PROFESSIONALS
6 - EFFICIENT REGULATORY
AND LEGISLATION

12. The Impact of The Global
Business Sector In Mauritius

13. The Impact Of The Global
Business Sector In Mauritius
 The Economy:
• This sector contributes importantly in the
fourth pillar of the Mauritian economy
• GDP - composition by sector for
Mauritius:
1. services: 74.2% (2017 est.)
2. industry: 21.8%
3. agriculture: 4%
• The contribution of Global business sector
to GDP of 5.5% and a growth rate of 4.0%
for 2017.

14. The Impact Of
THE Global
Business
Sector In
Mauritius
 Employment:
• An increase in the employment rate.
• Employ young graduates and professionals.
• Transfer of knowledge, skill and savoir faire.
 The Educational Sector
• Internationally recognized courses in financial fields.
• Government needs to invest more in the educational
sector

15. The Impact Of The Global
Business Sector In Mauritius
 Infrastructure Development and Better
standard of living:
• Mauritian government needs to continue investing in
infrastructural development.
• To keep in pace with the ever-changing environment.
• Smart Cities
• Better standard of living.

16. The Different
Challenges That The
Global Business Sector
Is Facing.

17. The Different Challenges That The
Global Business Sector Is Facing.
Dependency on foreign economies:
• Mauritius is economically vulnerable.
• Mauritius can be adversely affected in case of
recession in foreign economies.

18. The Different Challenges That The
Global Business Sector Is Facing.
 Relying on DTA’s is not sustainable:
• Mauritius relies heavily on preferential ties.
• Misuse of the DTA by global business companies.
• This sector is at risks from the DTA revision.

19. The Different Challenges That The
Global Business Sector Is Facing.
 Slow legal procedures:
• Quick for the registration and administration work
when welcoming a new offshore firm.
• The Mauritian judicial system may be slow.
• Time consuming and procedures keeps on being
postpone.

20. The Different Challenges That
The Global Business Sector Is
Facing.
 Competition:
• Era of global competition
• Mauritius needs to constantly innovate and
sophisticate to keep in pace and maintain its
competitive edge
• Nevertheless, this can be done to the
detriment of the local population.

21. The Different Challenges That
The Global Business Sector Is
Facing.
 Base Erosion and profit shifting(BEPS) Action
Plan
• This concept attack aggressive tax planning
strategies.
• Tax avoidance strategies that exploit gap and
mismatch in tax rules to artificially shift profit to
low or no tax location.
• Less attractive in favor of the other jurisdiction.
• BEPS has not been accepted and is not
implemented by many other jurisdictions.

22. CONCLUSION

23. Q&A SESSION