Mauritius is well served by business and communications infrastructure and is a dynamic economy; the government actively encourages foreign investment and offshore activity through the Ministry of Industry & Commerce. The ministry operates a one stop shop for clearances and permits; it also provides assistance in identifying market outlets, joint venture partners, site locations, and buildings. However, dealings with Government tend to be somewhat bureaucratic - in this respect the French 'civil code' influence is noticeably to the fore rather than more free-wheeling Anglo-Saxon business attitudes.
There is a very clear distinction between the 'onshore' and 'offshore' sectors. Foreigners need specific permission from the Prime Minister's office before they can own shares in an onshore company, while Mauritians are barred from taking part in offshore activities.
2001 saw a comprehensive modernisation of the country's legal structure, partly just to catch up with competitors, partly to give expression to the decision to eschew 'offshore' status as such, and partly as a follow-up to the decision to sign a Commitment Letter to the OECD in order to avoid 'blacklisting'.
In this context the Mauritius Offshore Business Activities Authority (MOBAA), which had been a 'one-stop-shop' for the offshore sector, and had been the licensing and supervisory authority for offshore companies (except banks) since 1992 had clearly outlived its usefulness, as had the various pieces of legislation which explicitly recognised offshore companies and structures. All this was swept away, and new legislation came into effect in October.
To some extent, the changes were cosmetic rather than substantive, although there is no doubt that the new supervisory regime is a lot tougher than the old one. The Financial Services Development Act 2001 is a particularly complex piece of legislation, giving very extensive powers to the new Financial Services Commission which effectively replaced MOBAA as well as taking on some of the functions of the Central Bank. As the FSC gradually introduced its new supervisory regime in 2002 and 2003 there were complaints from the offshore sector that it was being heavy-handed. However, the total number of 'Global Business Companies', as the old Offshore and International companies are now known, had reached over 25,560 by May 2005, up more than 2,000 in the previous year.
There is a wide range of investment incentives for inward investment. Free Trade Zones and a Freeport were established in 1992 enabling up to 100% foreign owned enterprises. Money laundering is discouraged by the government, as is any trade in guns or drugs; however it is supposed that there is a substantial drug trade through the island.
The island republic has a good labour relations record and productivity has shown a 5% annual increase since 1994. Training and service quality are regarded as important; many Mauritian firms have adopted ISO 9000. Financial and professional services are well represented and a successful stock exchange was opened in 1989.