What is a Freeport Company?
A company wishes to operate in the Freeport Zone must be registered under the Companies Act 2001, with the Registrar of Companies (“ROC”) as a Mauritius Domestic Company and must apply for a Freeport Licence with The Economic Development Board (“EDB”).
The Mauritius Freeport provides an ideal logistics and distribution platform for companies to carry out the following activities as authorised under the Freeport Act:
- Warehousing and storage
- Breaking bulk, sorting, grading, cleaning and mixing
- Labeling, packing and re-packing
- Minor processing and light assembly
- Ship building, repairs and maintenance of ship and aircrafts
- Storage, maintenance and repairs or empty containers
- Export and re-export-oriented airport and seaport
- Freight forwarding services
- Quality control and inspection services
- Any manufacturing activity provided that -
- the enterprise exports its manufactured goods to the extent of at least 95 per cent of its annual turnover, of which at least 50% shall be exported to Africa; and
- the remaining percentage may, upon approval by the EDB, be put on the local market.
- Vault services in respect of gold, silver, platinum, precious and semi- precious stones, precious metals, pearls, works of art and collectors’ pieces and antiques
- Security, courier or assaying services, where relevant wholly and exclusively and vault services
- Global trading, provided that the private Freeport developer or Freeport operator operates one or more activities referred as above (from Warehousing & Storage to Quality Control and Inspection Services)
- Providing Freeport related services outside Mauritius for advisory, marketing, engineering, project management, technical support and related services through a company incorporated in Mauritius.
Incentives and attractiveness in the Mauritius Freeport
The Freeport legislation enables the investor to access a cost-effective logistics platform with advantages including:
- Duty-Free and VAT free for goods and equipment imported into Freeport zones
- 0% corporate tax
- 100% foreign ownership
- Reduced port handling charges for goods destined for re-export
- Possibility to sell up to 50% of re-export value to the local market (local sales will be subject to VAT and custom duties; the company is charged 15% corporate tax)
- Strategic location at the crossroads of Asia, Middle-East, Australia and Africa
- Excellent infrastructure and transshipment facilities
- Warehousing, processing and distribution facilities
- Competitive operational costs
- Services by major shipping lines and airlines
- Exemption from custom duties on all goods imported and used exclusively in the zone
- Free repatriation of profits
- Skilled labour
- Preferential access to Common Market of Eastern and Southern Africa (“COMESA”) and the Southern Africa Development (“SADC”) markets, US Markets (through Africa Growth & Opportunity Act (“AGOA”) and European Union (“EU”) Market.
HOW MITCO CAN HELP?
- Assistance with the set-up of the Domestic Company
- Assistance and process the application for a Freeport Licence
- Assistance with the different functions required by the Freeport Company including liaising with the freeport developer
- Provision of secretarial, administration and accounting services
- Ensuring compliance of the Company with the relevant authorities
- Keeping clients abreast of any changes/development in laws and regulations
For more information, please contact:
Your relationship manager at MITCO or the business development team by email email@example.com or phone them on + 230 404 8000.