How far is foreign investment appreciated and respected by law in Mauritius?
The attractiveness of Mauritius is enhanced by the fact that it offers a regulated business environment which is very conductive to investment and business growth. Mauritius aims to become a premier investment platform located midway between Africa and Asia.
Besides the Government's incentives for investments including, inter alia, tax incentives and payment facilities, the country offers investors a stable economic, political environment and financial system as well as a highly skilled and dynamic work force. According to the ratings of Doing Business 2016 issued by the World Bank, Mauritius is 32nd (out of 189) most favorable countries for business in the world.
The Government of Mauritius has designated the Board of Investment ("BOI") as a one-stop local agency which acts as the facilitator for all forms of investment in Mauritius and guides investors through the necessary processes for doing business in the country.
No restrictions on ownership of companies exist, only the television sector is subject to the restriction that a foreign company cannot hold more than 20% of the capital of a Mauritian television company. Mauritius does not apply stringent minimum capital requirements to set up a company and offers an extensive tax treaty network with several countries. Thus, foreign investors can do business in Mauritius with all available forms of legal entities and are allowed to own 100 percent equity in a local company
How far are (foreign) investments protected by the Mauritian law?
While Mauritius's success as a well-established international financial centre can be attributed to its continually expanding network of Double Taxation Avoidance Agreements ("DTAAs"), Mauritius has also entered into numerous Investment Promotion and Protection Agreements ("IPPAs") with various African countries which, while less well‐known than DTAAs, are potentially of great importance to investors seeking to invest in the developing markets of Asia and Africa.
In addition, Mauritius has signed several Bilateral Investment Treaties ("BITs") to provide benefits and investment protection for the home state in the host state.
Moreover, Mauritius has the necessary framework to protect the interests of foreign investors, being a member of the International Court of Justice, the International Centre for the Settlement of Investment Disputes ("ICSID"), and the Multilateral Investment Guarantee Agency ("MIGA").
Which regulations must be recognized in case of a merger?
A merger situation occurs when two (2) or more enterprises, of which one at least carries out its activities in Mauritius or through a company incorporated in Mauritius, are brought under common ownership or common control.
The procedures for mergers involve fairly straightforward corporate actions such as, inter alia, acquisition of the share capital of the target Mauritian company, and shareholder resolutions.
Mauritian companies, private and public, have been involved in considerable merger activities with companies listed on a number of international stock exchanges. In fact, together with amalgamations, mergers remain the primary means by which changes in control occur given the close-knit nature of Mauritius corporate groups.
Mergers can come under the scrutiny of the Competition Commission of Mauritius ("CCM") where the transaction results in more than 30% of the market share being controlled by one entity or group, or where the CCM has reasonable grounds to believe that it will result in a substantial lessening of competition within the market.
Are there any provisions regarding public takeovers?
A takeover is an offer made by, or on behalf of, a person (the "bidder") to acquire the securities of another (the "target") which will result in the bidder acquiring effective control of the target, either immediately after the acquisition or over a period of time.
Public takeovers are governed by the Financial Services Act 2007, the Securities Act 2005 and rules and regulations made under these laws, namely the Securities (Takeover) Rules 2010 and the Securities (Acquisition of the shares of the dissenting shareholders during takeovers) Regulations 2010.
Originally produced by Juristconsult Chambers for DLA Piper.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
