Offshore: An emerging sector

Since 1989, different governments have tried to develop Mauritius as an offshore Centre but it was only in 1992 that the Offshore sector really kicked off and today, it boasts more than 16,000 companies and trusts and collective investment schemes with more than 20 banks (over 10 international) offering services to both the local and offshore sectors. The Financial Services Commission, established in 2001, is responsible for licensing and regulation of non-banking financial services including insurance, the Mauritius stock exchange and the newly formed GBOT (Global Board of Trade), the first international multi-asset class exchange from Mauritius. The Financial Services Regulatory Authority plays a crucial role in establishing and developing the offshore sector. Many of the structures created in Mauritius benefit from Double taxation treaties signed with other tax jurisdictions (34 countries).

[[{"type":"media","view_mode":"media_large","fid":"12715","attributes":{"class":"media-image wp-image-20940 alignleft","typeof":"foaf:Image","style":"","width":"222","height":"205","alt":"Kamal-Hawabhay"}}]]Kamal Hawabhay: “This sector represents the future”

President of the Association of the Trust Management Companies, Kamal Hawabhay states that like all the other sectors, the offshore sector also faces challenges but still it has attained a degree of maturity. “It is not a dormant sector. It is a sector which needs people with the appropriate training and qualifications. It employs both Mauritians and foreigners. This sector represents the future. There are many opportunities for young graduates in this sector for posts like accountant, company secretary, and asset managers among others. Besides, this sector contributes around 4% of the country’s GDP and the revenue collection is about 40%. So, with more time, this sector will grow more,” he explained. Commenting on the impact the new regulations proposed by European countries, he says “the European countries are facing a crisis. The European countries concentrate more on business corporate but the sector includes a lot more. They are trying to put a system to cover up. They will try to impose that over the world. It is up to us to decide whether to accept or not. It is a challenge. We cannot just welcome everything just like that. Till now we have just heard their intention of implementing such a system but we do not how they will proceed. There is also the fact before accepting any change we must our domestic law. It is a long procedure,” he reveals. According to Kamal Hawabhay, India is a privilege partner for Mauritius and the Prime Minister of India has reassured that he will not take any step that will affect Mauritius. “India can bring changes and we hope that these changes will not affect us. We have a good corporation with the country. So it is now up to the Prime Ministers of both countries to come forward with solutions. Moreover, for the better growth of this sector, it is important there are constant discussions with all partners and stakeholders,” he concludes.