How to start a business as NRIs from Port Louis, Mauritius in India? Lets discuss Here, The Indian government is trying to raise entrepreneurial aspirations among the country’s young generation. With advancements in technology, numerous business opportunities have been unlocked. The current technology and globalization have made starting and managing a business much easier. Starting a business is a more rewarding occupation though it takes time to start a business in India once it is completely established, you will earn huge profits from it. The Indian government is continuously trying to boost the entrepreneurial spirit of the young generation by launching a startup India program. To develop the Indian economy and attract talented entrepreneurs, the government has promoted startup India initiatives to recognize and encourage startups all around the country.
The essential ingredient of a successful startup is innovation. Most businesses either develop a new product or service or redevelop a current product or service into something better by introducing innovation in that product or service. Now you must be thinking, is it possible for a foreign company to register under the startup India hub?
Any business or entity with a minimum of one registered office in India can register itself on the startup India hub. This is because the location preference for the current time is only created for Indian states. But sooner or later, the Indian government will try to start registrations from stakeholders all around the globe.
Choose a suitable business by NRIs from Port Louis, Mauritius in India
Before starting a business, the entrepreneur must need the vision to work on. You need to do a deep analysis to choose your business if you want a prosperous business. Vision can be defined as a simple plan of action in the entrepreneur’s mind to start a business. One could define a vision as a detailed business plan with market analysis, project financial statements, and other business-related planning and actions. By formulating a detailed business plan, the entrepreneur will avoid mistakes and increase the chances of efficiency and success in the business. If you don’t have any preconceived business ideas, you can search them online or analyze other businessman’s footprints.
Business structure
Sometimes people get confused about what kind of business structure is best for them. It is because there are many business structures worldwide, so it gets a bit confusing. Generally, Private Limited companies and Limited Liability Partnerships (LLPs) are the most preferred business structures. This is because the private limited company is legally recognized and preferred by investors. You must know that a private limited company has strict compliance and high incorporation costs. Limited Liability Partnership (LLP) has a lower cost of incorporation and tends to have relaxed compliance compared to private limited companies. Besides this, all Limited Liability Partnerships (LLPs) have limited liabilities and equal recognition by investors all around the globe.
A best-suited business entity is the vehicle of the journey. Medium or large business should be incorporated as a private limited company, while a micro or small business should be incorporated as a Limited Liability Partnership (LLP). If you choose to start a Limited Liability Partnership (LLP) or private limited company, you must have two partners or directors. The individual will need to submit the Permanent Account Number (PAN) card and address proof of the promoters.
NRIs in Mauritius
Mauritius’ known history began with the discovery of the island by Arabs and Malays, followed by Europeans and the emergence of the island on maps in the early 16th century. Mauritius was colonised by the Netherlands, France, and the United Kingdom until becoming independent in 1968.
Mauritius is an island republic off the coast of Africa in the Indian Ocean. Port Louis is the country’s capital. Mauritius’ flag features red, blue, yellow, and green stripes. The battle for freedom is symbolised by the red stripe. The ocean that surrounds the island is represented by the blue stripe. The sun and golden light of independence are represented by the yellow stripe. The green swath denotes fertile soil and greenery.
Capital: – Port Louis
Population:- 1,263,000(2022 Est.)
Currency Exchange Rate:- 1 USD equals 43.067 Mauritian rupee
Official Language:- English
Monetary Unit:- Mauritian rupee
Land area: 1,849 sq km
Land
Mauritius is a small island in the Indian Ocean around 500 miles east of Madagascar. Rodrigues Island is located about 340 miles (550 kilometres) east of the main island, the Cargados Carajos Shoals are located about 250 miles (400 kilometres) northeast of the main island, and the Agalega Islands are located about 580 miles (930 kilometres) north of the main island.Mauritius also claims sovereignty over the Chagos Archipelago (which contains Diego Garcia) 1,250 miles (2,000 Kilometres) to the northeast, which Britain denies.
Approximately 2/3 of the population is of Indo-Pakistani descent, the majority of whom are descendants of indentured labourers recruited to work in the sugar business throughout the nineteenth and early twentieth centuries. About a quarter of the population is Creole (mixed French and African ancestry), and there are a few Chinese and Franco-Mauritian residents.
Even though English is the official language, only a small fraction of the population speaks it. Creole, a French-based patois, is the country’s lingua franca, with almost 4/5 of the population speaking it.
Cultural life
Mauritius provides a diverse range of cultures and customs from its diverse population. Mauritius’ ethnic and religious variety means that several holidays and festivals are held throughout the year, notably the Hindu Maha Shivaratri celebrations.
Economy
Mauritius has progressed from a low-income, agriculturally based economy to a middle-income, diversified economy with expanding industrial, financial, and tourism sectors since its independence in 1968. Annual growth has been in the range of 5% to 6% most of the time. As a result, life expectancy has grown, infant mortality has decreased, and infrastructure has vastly improved.
Mauritius has the second-highest GDP per capita in Africa, estimated at $16.28 billion in 2005. Only Equatorial Guinea, which makes the majority of its money from oil exports, comes close. Mauritius, on the other hand, has a well-developed economy with a wide distribution of wealth among its population. Sugarcane plantations, tourism, textiles, and services are the mainstays of the economy.
How to register your business by NRIs from Port Louis, Mauritius in India?
An entity entitled as a private limited company, partnership firm, or limited liability partnership is eligible to register as per the startup India scheme by NRIs from Port Louis, Mauritius in India. Here it would help if you remember that the annual turnover of such business entities shouldn’t exceed 100 crore rupees, and they need to exist for at least ten years from their incorporation date. Such business entities should work towards innovation, improvement of products, development, etc. Registering your business in India is a five-step process, and you need to follow the below-given steps to register your business in India successfully.
Step 1: Business incorporation as NRIs from Port Louis, Mauritius in India
Firstly, the individual is required to incorporate the business. The individual must incorporate their business as a private limited company, a partnership firm, or a limited liability partnership. You need to follow the normal registration process like any business, and you need to submit the registration application and obtain the incorporation certificate.
To incorporate its business as a private limited company or unlimited liability partnership, the individual can fill out the registration application at the region’s Registrar of Companies (ROC). In order to incorporate the business as a partnership firm, the individual is required to fill out the application for registration of the firm with the Registrar of Firms (ROF) in the area. To incorporate your business, you need to submit the required documents and fees to the Registrar of Companies (ROC) or the Registrar of Firms (ROF) office along with the registration application.
Step 2: Get registered with Startup India as NRIs from Port Louis, Mauritius in India
In the second step, the individual is required to register the business with startup India. Registering any business with startup India is very simple and easy, and one can register the business with startup India through an online medium. To register your business with startup India, you need to visit the official website of startup India and tap on the register icon. After that, you need to enter your name, email id, mobile number, and password and tap on the register icon. Now an OTP will be sent to your email; you need to enter that OTP and other details like type of username and stage of the startup, etc. Lastly, tap on the submit icon.
After filling in all the above-given details, you have successfully created your startup India profile. Once your startup India profile is created on the website, you can apply for various acceleration or incubators, mentorship programs, and other challenges available on the website. After creating the profile, the individual is eligible to access the resources like Learning and Development Programs, State Policies for Startups, Government Schemes, and pro-bono services.
Step 3: Get recognized by Department for Promotion of Industry and Internal Trade (DPIIT) as NRIs from Port Louis, Mauritius in India
After Creating your profile on the startup India website, you need to get recognition from the Department for the Promotion of Industry and Internal Trade (DPIIT). The recognition of the Department for Promotion of Industry and Internal Trade (DPIIT) helps in availing benefits like
- provide access to top-quality resources and intellectual property services
- self-certification under labor and environment laws
- access to a fund of funds
- tax exemption on investments above their market value
- relaxation in public procurement norms
- easy winding of company
- tax exemption for three consecutive years.
To get recognition from the Department for Promotion of Industry and Internal Trade, you need to log in to your registered profile on the startup India website.
Tap on the ‘DPIIT recognition for startups,’ and you will find this option under the schemes and policies tab.
After that, tap on the ‘Get recognized’ icon. Now a new tab will open on your computer screen that will redirect you to the submission page.
Scroll down and tap on the option of ‘click here for submitting your application for recognition as a startup.’
Step 4: Fill out the recognition application form by NRIs from Port Louis, Mauritius in India
Now you need to fill out the startup recognition form. Enter your entity details, full office address, directors/partner details, authorized representative details, startup activities, self-certificate, and other listed information. After filling in all this information in the respective columns, you need to accept the terms and conditions. Lastly, the individual is required to click on the submit icon to successfully fill out the recognition form.
Step 5: Get your recognition number by NRIs from Port Louis, Mauritius in India
After submitting the required documents, the individual will get a recognition number for the business. You will get the certificate of recognition after verifying all the documents you gave. This process generally takes two days, so you need to be patient. It is advised to carefully upload your documents because if any required document is not uploaded or the wrong document is uploaded, you are liable to a fine of 50% of your paid-up capital of the startup and a minimum fine of Rs 25,000.
Things to remember for NRIs from Port Louis, Mauritius in India
Certain points should be kept in mind while registering your company for NRIs from Port Louis, Mauritius in India; they are as follows: –
One needs to have a patent for their innovation company or a trademark for their business. Through this, you can easily approach any facilitator from the list of facilitators issued by the government of India. To get a patent or trademark, you will need to give only statutory fees thus, you will get an 80% reduction in fees.
Secondly, you need to know that one of the key challenges that many business owners face is accessing finance. There is a lack of experience, security, and existing cash flows, due to which the majority of entrepreneurs fail to attract investors. Apart from this, there is a high-risk nature of startups or businesses, due to which a significant percentage of startups fail to take off.
Thirdly, you can get funding support from the government; for that, the government has set up a fund with an initial corpus of 2,500 crore rupees and a total of 10,000 crore rupees over the four years. These funds are provided like fund of funds which means that they won’t invest directly into the business or startup, but they will participate in the capital of registered venture funds of the Securities and Exchange Board of India (SEBI).
Under labor laws and environmental laws, startups can self-certify. The government has allowed startups to self-certify themselves to reduce compliance costs. The self-certificate is allowed to reduce the regulatory burden and enable the entrepreneurs to focus on the core business. Under six labor and three environment laws, the business and startup can self-certify their compliance for 3 to 5 years from the date of their incorporation.
As stated on the official website of the Central Pollution Control Board, the units operating under the 36-white category in industries don’t need any clearance under three environment-related acts. This facility is provided to businesses for three years only.
Lastly, the startups or businesses are exempted from income tax for three years. To avail these benefits, the entrepreneurs must be certified by the inter-ministerial board. Besides this, the startups incorporated on or after 01 April 2016 can easily apply for the Income Tax exemption.
Documents required to register your business for NRIs from Port Louis, Mauritius in India
Documents required for the registration of the business for NRIs from Port Louis, Mauritius in India are as follows: –
First of all, you need to submit the incorporation/registration certificate of the business.
Now you need to submit proof of funding if you have any funding source.
After that, you need to submit an authorization letter of the authorized representative of the company’s limited liability partnership or partnership firm.
The authorities will ask you to provide proof of concepts like a website link, pitch deck, and video.
You need to submit the patent and trademark details of the business if your business has any patent and trademark details.
The authorities will also demand a Permanent Account Number (PAN) of the business.
Lastly, you need to submit the list of awards or the certificate of recognition gained by the business or the company.
How to start a business by NRIs from Port Louis, Mauritius in India?
Though a business can yield huge profits to you, it seems like a challenging proposition. There are certain things that one should consider while going to register their business by NRIs from Port Louis, Mauritius in India.
Follow the below-given steps to start a business by NRIs from Port Louis, Mauritius in India: –
Step 1: Check whether the desired company name is available by NRIs from Port Louis, Mauritius in India
Before registering your company, you need to check whether the proposed name for the company is available or not. One can do it online, where all the applicants check the availability of the proposed company name. You can check the availability of desired company name on the MCA 21 website. After getting the name approved, the company name appears on the website. So, all the registered companies have their names on the MCA 21 website.
Step 2: Fill out the application form for Digital Signature Certificate (DSC) By NRIs from Port Louis, Mauritius in India
Next, you need to apply for the Digital Signature Certificate (DSC). It is an electronic key that validates the identity of the Digital Signature Certificate (DSC) holder. The Digital Signature Certificate (DSC) can be issued by any approved agency registered with the Ministry. To apply for a Digital Signature Certificate (DSC), the applicant must fill out the application form and submit identity and permanent address proof. The issuing authority can ask you to produce some other documents related to the business.
Step 3: Apply for the Director Identification Number (DIN) of your company by NRIs from Port Louis, Mauritius in India
After getting a digital signature certificate, the individual should apply for a Director Identification Number (DIN). It is an identification number with unique identification used for identifying the individual or a company. The Digital Identification Number (DIN) is provided to an existing or potential director of the companies that are incorporated with the company. To get a provisional Direct Identification Number (DIN), you must fill out the Direct Identification Number (DIN) online application form.
You need to fill out the DIN application form online. After filling out the form, you need to take the printout of the form and sign it. The signed physical copy of the form should be sent to the Ministry along with the identity and address proof for approval. After verifying all the details and documents of the company and holders and subsequent approval of the request, the authorities will provide you with a permanent Director Identification Number (DIN).
Step 4: Get an Incorporation Certificate from the authorities by NRIs from Port Louis, Mauritius in India
Next, you need to get an incorporation certificate for your business from the Ministry of Corporate Affairs. You need an incorporation certificate as proof of the contribution of the company. One can apply the website E-form 32, E-from 1, and E-form 18 on the Ministry of Company Affairs’ official website. The individual is required to submit a copy of the E-form one along with the copy of the Memorandum and Articles of Association (MOA & AOA), consent of directors, and a stamped copy that establishes power of attorney. The applicant will automatically receive the certificate of incorporation on the given email id.
Step 5: Create a company seal to attest in the official documents by NRIs from Port Louis, Mauritius in India
To share certificates and other official documents related to the company, the applicant must have a company seal placed on the papers and official documents of the company. In general, the company seal is not very expensive. Still, the total cost depends on the number of words required to be engraved on it, the number of seals issued, and the period necessary to deliver seals. In the case of private companies, the individual is not required to maintain a company seal mandatorily.
Step 6: You need to do stamping of all the documents of the company by NRIs from Port Louis, Mauritius in India
You need to submit the unsigned copies of the Memorandum and Articles of Association (MOA & AOA) attached with the application to have the company’s incorporation documents stamped. All the above-given documents should be attached with the payment receipt for stamping company documents. You need to submit the stamp duty online for such documents to theoffice ofthe registrar of companies. The superintendent will officially return the stamped, signed, and embossed copies. At last, the company promoters must sign the Memorandum and Articles of Association (MOA & AOA) with all the required information in their handwriting.
Step 7: Get a Permanent Account Number (PAN) by NRIs from Port Louis, Mauritius in India
The individual is required to have a Permanent Account Number (PAN); for that, he must fill the form 49A for the application for a Permanent Account Number (PAN). Once you receive a unique Permanent Account Number (PAN), the physical version of the Permanent Account Number (PAN) card will be delivered at the official post of the registered address. One can fill out the Permanent Account Number (PAN) application through an online medium. However, the individual is still required to send the necessary documents by post for final verification physically. Once the verification is completed, the authorities will send you the Permanent Account Number (PAN) card on the registered address.
Step 8: Apply for a Tax Account Number (TAN) by NRIs from Port Louis, Mauritius in India
According to the regulations of the Indian government, the individual is required to have a Tax Reduction Account Number or the Tax Collection Account Number (TAN). The Tax Reduction Account Number or Tax Collection Account Number (TAN) is a unique number allotted by the Income Tax Department to all the entities required to deduct or collect tax at the source. To apply for a Tax Account Number (TAN), you must fill out form 49 B and submit it at the Tax Information Network (TIN) facilitation Centre. After the verification of the application, it will be forwarded to the Income Tax Department of India, and the Tax Account Number (TAN) will be issued. You can fill out the Tax Account Number (TAN) application offline or through the National Securities Depository Limited (NSDL) website.
Step 9: Get a certificate from the state or municipal inspector (Shops and Establishment Act) by NRIs from Port Louis, Mauritius in India
Next, the individual must submit the employer’s and managers’ names, company’s designated names, and permanent postal address and business category to the state shop and establishment inspector. The individual must submit the above-given information and pay applicable fees. It is a crucial step in trade license registration as all the companies are required to be registered within one month after the opening of their business.
Step 10: Apply for a Goods and Service Tax registration by NRIs from Port Louis, Mauritius in India
You mandatorily need to apply for Goods and Service Tax (GST) registration. It is mandatory for any entity seeking to take the supply of goods and services across the states. The company needs to maintain an annual aggregate turnover of more than Indian national Rupees, 40 lakhs to 20 lakhs, to apply for Goods and Service Tax (GST) registration. Goods and Service Tax (GST) registration number should be the priority, even before the company’s registration. One must have a Goods and Service Tax (GST) registration if they are a seller or planning to be a seller or provides any services.
Step 11: Get a profession tax certificate from the office of state profession tax by NRIs from Port Louis, Mauritius in India
All the employers, excluding government officials, are liable to taxation and need to have a certificate of registration from the concerning authority. To get a profession tax certificate from the state profession tax office, the company must fill out form 1 in case they are eligible for that.
Step 12: National Employees Provident Fund Registration by NRIs from Port Louis, Mauritius in India
Lastly, the individual must provide their worker information at the local Employment Provident Fund Organisation (EPFO). This is done to give the establishment code number to the company, and a prescribed method is there to do the same that should be strictly followed. The company employees do not need to fill out any separate application form because the whole process is within the sole purview of the employer. Here you need to remember that it is only required if the provisions of the Employees Provident Fund and Miscellaneous Provisions act 1952 apply to the company.