Benefits of Making Business in Mauritius | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN MAURITIUS WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN MAURITIUS WWW.MERGERSCORP.COM

4. Country Overview Mauritius, an Indian Ocean island nation, is known for its beaches, lagoons and reefs. The mountainous interior includes Black River Gorges National Park, with rainforests, waterfalls, hiking trails and wildlife like the flying fox. Capital Port Louis has sites such as the Champs de Mars horse track, Eureka plantation house and 18th-century Sir Seewoosagur Ramgoolam Botanical Gardens. The population of Mauritius is estimated at 1.27 million as of May 2019, compared to 1.291 million at the 2012 census. The country is densely populated with 630 people per square kilometer (1,636/sq mi), which ranks 157th in the world.

5. Executive Summary Government policy in Mauritius is firmly centred on promoting foreign and domestic investment. Once a mono-crop economy reliant on sugar, Mauritius is today an upper-middle income country with a diversified production base. In recent years, the government has been especially intent on attracting FDI from emerging economies. Mauritius has built a sound network of Investment Promotion and Protection Agreements, notably with other African countries. Its network of Double Taxation Treaties, political stability, robust banking system, pro-business environment, and good infrastructure, further add to the comparative advantage of Mauritius as an investment hub for FDI into Africa.

6. Introduction – Doing business in Mauritius Mauritius is ranked 13 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Mauritius improved to 13 in 2019 from 20 in 2018. Mauritius is one of the most open economies in the Africa region and has become a key platform for investment and doing business in Africa, Asia and the Middle East. Mauritius offers a business environment that is highly conducive to investment and business growth. Setting up a company and starting a business activity in Mauritius is a simple and straightforward process.

7. Conducting business in Mauritius The following types of company can be incorporated in Mauritius: •Limited liability company; •Guarantee company; •Mixed liability company; •Unlimited liability company; •Foreign company; and •Limited life company. An Application for Business Registration can be submitted at the office of Registrar of businesses or can be done online.

8. Taxation in Mauritius A corporation resident in Mauritius is subject to tax on its worldwide income. A non-resident corporation is liable to tax on any Mauritius-source income, subject to any applicable tax treaty provisions. Corporations are liable to income tax on their net income, at a flat rate of 15%. Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to exports based on a prescribed formula. Mauritius has a credit system of taxation whereby foreign tax credit is given on any foreign-source income declared in Mauritius on which foreign tax of a similar character to Mauritian tax has been imposed.

9. Trade Mauritius is the 124th largest export economy in the world and the 80th most complex economy according to the Economic Complexity Index (ECI). In 2017, Mauritius exported $2.52B and imported $5.59B, resulting in a negative trade balance of $3.08B. In 2017 the GDP of Mauritius was $13.3B and its GDP per capita was $22.3k. The top exports of Mauritius are Processed Fish($345M), Raw Sugar ($260M), Non-Knit Men's Shirts($153M), Knit T- shirts ($151M) and Refined Petroleum($148M), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Refined Petroleum ($658M), Non-fillet Frozen Fish($295M), Cars ($237M), Planes, Helicopters, and/or Spacecraft ($217M) and Coal Briquettes ($124M).

10. Banking in Mauritius Banks in Mauritius provide a wide range of services. Besides traditional banking facilities, they also offer card-based payment services, such as credit and debit cards, internet banking and phone banking facilities. Banks also offer specialized services such as fund administration, custodial services, trusteeship, structured lending, structured trade finance, international portfolio management, investment banking, private client activities, treasury and specialized finance. The international banks offer a wide range of global banking and financial services to corporate, institutional and private clients.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com