Aminews | July 2012
 
 
INVESTMENT IN SENEGAL
 
The Republic of Senegal achieved independence in 1960 and is one of the most stable democracies in Africa. The legal system is the civil law system based on French law and the country's key export industries are phosphate mining, fertilizer production, and commercial fishing. The country is also working on iron ore and oil exploration projects.
 
Over the past few years, the Republic of Senegal has witnessed a high level of foreign investments flowing into country to exploit the mining industry which the government is supporting in an attempt to redress the economy. The investments are coming from worldwide organizations whereby Mauritius is often used as the investment/ holding company jurisdiction.
 
Possible structure
 
Investments into the Republic of Senegal can possibly be routed through a Mauritius ‘Category 1 Global Business License’ company, as outlined below:).
 
 
Reasons for using a Mauritius Holding Company
 
a). The Mauritius’ Double Taxation Avoidance Agreement (“DTA”) with the Republic of Senegal provides for no withholding tax on dividends, interests and royalties from a Senegalese company payable to a Mauritius company;

b). There are no currency exchange controls in Mauritius and investments through Mauritius are not subject to CFC rules, thin capitalization and transfer pricing regulations;

c). Capital gains on disposal of securities/ shares and other movable property are tax exempt;

d). Mauritius has signed an Investment Promotion and Protection Agreement (“IPPA”) with the Republic of Senegal which provides for free repatriation of investment capital and returns on investments, guarantee against expropriation, provide for a most favoured nation rule with respect to treatment of investors, and compensation for losses in case of war, armed conflict or riot and further provide arrangements for the settlement of disputes between investors and the contracting states;

e). Mauritius is a member of the major African regional organisations, which provide preferential access to markets in the Africa region such as the African Union, Southern African Development Community (“SADC”), the Common Market for Eastern and Southern Africa (“COMESA”) and the Indian Ocean Rim – Association for Regional Cooperation (IOR-ARC); and

f). Mauritius has deep African roots with a third of its population being of African origin.
 
Mauritius GBC1
 
A GBC1 is considered tax resident in Mauritius and can avail itself from benefits of the DTA’s signed by Mauritius. It can be setup and licensed within 1 week provided all documents and statutory fees are paid.
 
The statutory requirements for a GBC1 include:
 
a). The registered office should be in Mauritius;
b). There should 2 directors in Mauritius at all times;
c). Board meetings should be chaired from Mauritius;
d). Accounting records should be kept in Mauritius; and
e). Audited Financial Statements filed with the Mauritius Authorities.
 
Amicorp (Mauritius) Limited
 
Amicorp (Mauritius) Limited is licensed by the Financial Services Commission of Mauritius to provide company, fund and trust set up services as well as management/ administration services including providing directorship, corporate secretarial, registered office, bookkeeping, accounting and any and all related administrative services.
 
For further information, please contact:
 
Veekashsing Sookun
Managing Director

Amicorp (Mauritius) Limited
Email
 
 
  Click here for the French version
 
 
 
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