10 Steps to Starting Your Own Business in Mauritius

Mauritius, one of the most developed countries in Africa, is renowned as a favorable investment destination in the world business landscape. Although it welcomes all the investors and entrepreneurs, it is often said that incorporating a business in Mauritius can be challenging if one doesn’t have local help on board. The government of Mauritius has brought about a business-friendly environment promoting entrepreneurship and supporting growth.

Why Launch Your Own Business in Mauritius?

African countries are not known for being the easiest places for doing business Mauritius is one country bucking this trend. The tiny island country is frequently held as one of Africa’s success stories. Being closer to the developing economies of India and big markets like China and east Africa, the business savvy country has used its geographical location as a trading way to become a business hub. It requires a maximum of 3 days for opening a company in Mauritius, according to recent reports, due to its straightforward and efficient process. If you are looking to start a business in Mauritius, below are the 10 steps identified by SMEDA for making the process easier.

Steps to Launch Your Own Business in Mauritius

1. Business Idea Generation

Businesses might have the investment needed to start a business, but what type of business should one start is a cryptic question. Luckily for such investors, SMEDA has come to the rescue by helping them to generate ideas. A whole list of project profiles is available in the SMEDA database which can help an investor get a solid idea of what they want to start a business on.

2. Making a Business Plan

Any entrepreneur starting a business must make a proper business plan. This is done to attract investors so that they can get a basic idea of what the business is all about. The plan typically includes the name of the company, the number of directors, shareholders, type of business, management structure, and type of product or services offered, etc. The SMEDA website also has a format for a business plan, which can be utilized to start a business in Mauritius.

3. Type of Business

Commonly, a business can be a sole proprietorship, partnership firm, LLC or co-operative society. You have to also check on the benefits availed on the type of business you choose. The government has a list of the type of businesses you can start in Mauritius so that it can be easier for you to make a viable decision.

4. Choose the correct location

Choosing a location is a crucial task since Mauritius is an island nation and there isn't much to choose from. It is recommended to seek local help before finalizing a location. Also, if you want to rent an office, you must follow some steps to obtain a rental agreement.

5. Register the business

Upon reaching the focal point, after following all the steps mentioned above, you must register your business. The process of registering companies in Mauritius is easy and is completed in 4-5 steps without any problem. The Business Registry is where companies can register. You need to complete a couple of forms and send some documents related to the company before the company registers.

6. Registration with SMEDA

Registering your business with SMEDA is the next step. SMEDA provides a Small and Medium Business certificate depending on the annual turnover of your company.

7. Obtaining the land use permit

If a company is a manufacturing company, it would need land for production. To use such land, companies in Mauritius require a special form of a government permit. Permission can be obtained from the Municipality Planning Department or the District Council. Once notified, officials will visit the site to inspect the production space. After approval, you can go further with the manufacturing activity.

8. Financing the project

Regarding the financial aspect, banking institutions (Development Bank of Mauritius Ltd. (DBM), commercial banks, etc.) in Mauritius, leasing companies and venture capitalists (Quasi-Equity, SME Partnership Fund Ltd., etc. ) are always ready to finance the project. A documentation process must be done before you can get financial help for your company.

9. Implementation

Once all the previous steps have been completed, it is good to start your business. Other important steps such as the purchase of machinery, the payment of a commercial rate to local authorities, the hiring of employees and the setting of a wage rate and the contract must be taken care of.

10. Planning and organization of business activity.

This includes:

• Acquisitions / Storage / Production
• Sales / Marketing and Advertising
• Finance / Human Resources
• Office and administrative work

If you plan to incorporate a business in Mauritius, you can follow the steps mentioned above in addition to the initial research you have done. For foreign investors, establishing a business in a foreign country and in a country like Mauritius can be a challenge. However, if one knows the right steps and has enough knowledge beforehand, then there is nothing to worry about. For any questions related to the business or information related to the license, you can contact us; We will be happy to help you.