Best offshore jurisdictions
The best offshore jurisdictions are characterised by a conducive business ecosystem, drawing the attention of corporates, investors, entrepreneurs and High Net-Worth-Individuals who want to optimise the value of their business. They also comply with international standards and have in place solid and strict rules and regulations that contribute to attract capital flows and ensures the security of assets. In this article, we describe some of the distinctive features of one of the best offshore jurisdictions in Africa.
The key attributes of one of the best offshore jurisdictions
Africa’s leading International Financial Centre (IFC) is one of the best offshore jurisdictions in the world. This IFC puts forward many key attributes that attract interest from businesses from all around the world, looking to do business especially in Africa.
The attributes of Africa’s leading jurisdiction as one of the best offshore jurisdictions include:
- Most business-friendly and investment-friendly country in Africa (World Banks’s 2020 Doing Business Report);
- A strong and diversified economy;
- Rule of law and political stability;
- Hybrid legal system, combining the advantages of English Common and French Civil laws;
- Secure and reliable investment destination (risk-mitigating platform) that ensures confidentiality and protection of assets;
- Cost-effective solutions: affordable outsourcing destination;
- A pool of bilingual (English and French) and skilled workforce;
- Extensive network of bilateral and multilateral agreements (DTAAs and IPPAs);
- No Capital Gains Tax;
- No withholding taxes on dividends;
- No exchange control;
- International Arbitration Centre
- Convenient time zone (GMT+4) and strategic geographical location between Africa and Asia;
- An innovative listing and capital-raising platform;
- Member of the SADC, COMESA, African Union, IORA; and
- Presence of the world’s largest professional services firms as well as internationally renowned banks.
How choosing this jurisdiction adds value to your business
The core objective of corporates, entrepreneurs and HNWI is to maximise the value of their business and of their investments whilst satisfying stringent regulatory requirements. The main challenges they face when setting up a company are choosing the most appropriate jurisdiction and selecting a cost effective vehicle, both of which are critical to optimising their operating costs and maximising return on investment.
Headquartered in Mauritius, Sunibel Corporate Services Ltd helps clients who are faced with similar situations and understands these challenges. Furthermore, being present in multiple countries allows us to quickly and efficiently analyse the advantages and disadvantages of settling for a jurisdiction.
Mauritius – Africa’s leading jurisdiction and among the best offshore jurisdictions worldwide – is a well-regulated and compliant jurisdiction, recognised among the business community. Indeed, in the Financial Services sector, two local regulatory bodies ensure the compliance, security and transparency of the Mauritian jurisdiction:
- The Bank of Mauritius (BoM), having the main objective of regulating banking services; and
- The Financial Services Commission (FSC) acts as a cohesive regulator for non-banking financial institutions and businesses.
Furthermore, Mauritius also adheres to international governance and reporting standards. In fact, the OECD recently indicated that the country fulfils all the requirements of the BEPS Action 5 and, consequently, does not have any harmful practices in its tax regimes. In addition, it was found being compliant with EU’s tax good governance principles. Mauritius was subsequently removed from the list of jurisdiction considered as tax havens by the Council of the European Union.
The jurisdiction also complies with Foreign Account Tax Compliance Act (FATCA), Common Reporting Standard (CRS), and with the Financial Action Task Force (FATF) Recommendations. Mauritius therefore has in place a strong Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) framework. By setting up their corporate structure in this jurisdiction, businesses can ensure they tick the box in terms of compliance and regulatory requirements.
Why you should choose Mauritius to grow your business:
- The Bank of Mauritius acts as regulator for banking services
- The FSC ensures transparency for non-banking financial institutions and businesses
- Complies with all the requirements of the BEPS Action 5
- Compliant with tax good governance principles of the EU
- Not considered as a tax haven by the Council of the European Union
- Compliant with FATCA, CRS, FATF
- Has a solid AML/CFT framework
In addition to being among the best offshore jurisdictions worldwide, Mauritius is also a reputed destination for relocation. Indeed, over the last decade, many expatriates have decided to establish their business in, and relocate to, Mauritius. With its tropical climate and its ideal living environment for you and your children, the Mauritian ecosystem allows this balance between work and play:
- A favourable and secure living environment
- A comprehensive education system with Anglophone and Francophone private institutions
- A simple and attractive tax system
- A wide range of international brands and products
- Accessible medical services
How Sunibel can advise you in benefitting from the Mauritian offshore jurisdiction
At Sunibel, we look at ourselves as partners to a project rather than just being a service provider. We are driven by a best-fit approach. Our team of experienced professionals accompany corporates, entrepreneurs, investors and HNWI in setting up their offshore structure, and help them mitigate their operational risk.
We also advise you on how to take advantage of one of the best offshore jurisdictions to maximise the value of your business and to do business at international level. Contact our team for more information!
This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.
Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.
Sunibel Corporate Services Ltd accepts no liability for any direct or indirect damage resulting from the use and reliance on the information published in this article.
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