Many countries in the world come to mind when thinking about where to start a business, and Mauritius often isn’t one of them. That is a big mistake - Mauritius is not only the best country in Africa according to the Doing Business 2020 Report - it’s also the 13th best in the world.
Apart from a stable political environment, Mauritius boasts an attractive tax model and other investment incentives, such as no taxes on dividends from Mauritian based companies. On the other hand, Mauritius is also a supportive environment for small businesses and the self-employed. In June 2020, the government decided to extend the support scheme for entrepreneurs who had a hard time keeping their businesses afloat due to Covid-19.
If you want to start your own business in Mauritius and become part of this thriving and attractive economy, we’ve got all the information you need for setting up.
Disclaimer: This article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Being self-employed in Mauritius
A self-employed person is an entrepreneur who works for his own account and who does not receive any fixed salary monthly. A Self Employed person derives income from a trade, business, or profession in his own name. This way of doing business is equivalent to the individual contractor or sole trader forms in other countries. It is an excellent way of starting a business and working on attracting clients and customers.
Being self-employed means you have all the freedom to make decisions and lead your business activity as you seem fit. However, you will be bearing significant financial risks as you are responsible for all expenses and debts of the business. In Mauritius, there are no limitations to foreigners starting a business and registering as self-employed.
As soon as you obtain your Self Employed Permit in Mauritius, you will have to register with the tax authorities in Mauritius first and then start your business in Mauritius.
Tax compliance and good bookkeeping generally benefit your business by making management efficient and enabling business growth. Neat documentation saves you time when you need to file returns or ask for a loan, so always keep your records organized and pay your dues on time.
Keeping copies of receipts you issued will make it easier to track what you sold, to whom, and for how much money. It will enable you to compile and manage a list of your best customers and know what amount your customers owe you. If you save all your purchase documents, you will have a clear overview of what you bought and its value, as well as if you owe money to your suppliers. Keeping tabs in check can go a long way in improving the liquidity of your small business. Having all the cost information organized can help you claim deductions for business-related expenses.