Known as “The Pearl of the Indian Ocean”, Republic of Mauritius is an East African island country in the southeast of Indian Ocean and one of European people’s favorite holiday resorts. The country is situated 2,200 km off the coast of African continent and 800 km east of Madagascar. The entire country is sized 2,040 km2 and consists of a number of volcanic islands. Its population is around 1.26 million.
Ever since its declaration of independence in 1968, Mauritius has transformed itself from a low income agricultural economy into a middle-income economy with equally prosperous development in industrial, financial and tourism sectors. Although the country’s economy is dependent mainly on production of sugarcane and tourism, textile and service industries, its other industries also show a fast growth. Among all African countries, only Mauritius, Libya and Seychelles received a “high” human development index. Mauritius’ former dominator, France, is not only its biggest trading partner, but also provides the country technical supports in various ranges.
Mauritius officially promulgated “Mauritius Offshore Business Activities Act” and “The Offshore Trust Act” in 1992. “The Offshore Trust Act” was amended in 2001 and became “The Financial Service Development Act 2001” (hereinafter shortened as FSC). FSC divides the country’s offshore countries into GBL 1 (Ordinary Status Company) and GBL 2 (International Company). GBL 1 companies receive a tax commission from the protocol agreement that Mauritius signed with the world’s principal 26 countries to prevent evasion of taxes on income and capital gains by entities; GBL 2 companies, on the other hand, do not receive such commission. However, it is the option that most of the businessmen will choose to establish an offshore duty-free company.