Good, Fast and Cheap

As a rule of purchasing anything, reality dictates that we will only receive two of the three of these at any one time. If you want it fast and you want top quality, you are not likely to also receive the lowest price. By the same token if you want something at a very very low cost, you will either sacrifice quality or the speed of receiving the goods or services.

This rule holds true in the home based business industry as well. Wise business decisions require quality and an investment of time, energy and money.

Life and business do not deliver legality and ethics as a “get rich quick” scheme. A company with integrity and products of extreme value to the marketplace will absolutely require some time, effort and investment to achieve significant short range and long range goals. You made a commitment to yourself, to your sponsor and to WMI when you purchased the products and enrolled in the business opportunity. That was not a five minute or 5 day or even 5 week commitment. Starting a business means giving your all for as long as it takes to be successful.

Make a conscious decision about the 2 you value most in each area of your choices. How much you invest depends on your current financial situation, your belief in yourself and the opportunity and how much you choose to earn. Choosing goals which make you stretch and grow will increase your financial situation. Many of us stretched George (George Washington and the one dollar bill) until he flinched in pain. We were so far out of our comfort zone but we believed in the company and ourselves. Big thinkers go for the gusto; they push the envelope. Big goals require massive action. Great achievements were never accomplished by snuggling in to the comfort zone and hiding there.

“Perseverance is not a long race, it is many short races one after another” states Walter Elliot. Big achievers (big shots) are little shots who just kept on shooting. In the home based business industry as in life, the one who keeps learning, growing and persisting sets the standard for the true success story. Influence with integrity.

As important as personal development is to the home based business industry, so is marketing. Once again the law of good, fast and cheap comes into focus. The best and most effective marketing will absolutely require either time or money and probably both. Once again you can’t place one ad and quit. Persevere and learn all of the fine points of whichever marketing venue you choose. Develop your skill. Become a master marketer. Invest in yourself and your business. Refining marketing will require being good and spending the time to learn. Free leads, cheap leads, may be worth exactly what you pay for them. That is if you do not invest your time or your money, those free leads will probably be of little or no value.

Baby boomers may remember song lyrics that said “I want you, I need you but I am never going to love you” “Two out of 3 ain’t bad.” In business, personal development, marketing and ever so many other aspects of life that rule still holds true. Choose the two which create the greatest value for you in each situation.

Sometimes a decision needs to be made quickly rather than “getting ready to get ready.” If you are making a “reversible” decision, fast is preferable. You may choose fast and cheap. For instance, getting some text up on a web site. Get it up and start marketing. You can tweak the words or layout a bit later and improve the quality. Get moving. Take action.

Another example is calling prospects or applicants. Call them. Don’t wait until you are polished and smooth and know all of the answers. Take action and start dialing. If you make a mistake, so what. In that case, fast is absolutely preferable. Don’t wait to be good. They may even feel good about the fact that you are new and rough around the edges of the script. They will know they do not have to be perfect either to get started.

Evaluate the situation and select the best two out of three. Remember “2 out of 3 ain’t bad.” Out of good, fast and cheap, you will most likely only receive two, not all three.

Deciding What Type of Business to Start

If you’ve already made the general decision to start your own business and realize the kind of investment in time and money any company will take, the next step is determining what kind of business you will start. Choosing the right type of business can be a very stressful process but should be based on a number of important areas.

The first area to consider is your interests. Is there any hobby or passion that you have that has the potential to be a profitable endeavor? It’s important to differentiate between our passions and interests and a feasibly successful enterprise. Some hobbies simply don’t warrant the investment and commitment it would take to turn a profit. Often time niche ideas can be quite successful, but there will likely be only one or two stores even in urban areas that actually survive. Niche markets can certainly draw customers in from far and away places, but this can be a two edged sword and often leave a small operation without sufficient customers to show a profit.

The second area to consider is your experience. There are several questions you must ask yourself. Do you have experience in running a business? Do you really know the area you are interested in pursuing? If not, how can you obtain sufficient knowledge to give your company endeavor the best chance at success? Lastly, if you choose to follow your hobby or passions, are your professional experiences in anyway close to them?

The third issue to review is the question of ability.  Determining whether you have the discipline to run a business is a difficult subject to objectively verify. Assessing yourself and establishing whether you can take responsibility and cover all the areas that arise in business operations is important. Working in a large corporate office where work and responsibilities are largely divided is very different than a small office. In large corporations, the operations side may often be oblivious to the financial intricacies that accountants and bookkeepers review. The converse can be true as well. Small operations however require their owners to be involved in almost every aspect of their operation to truly succeed.   

The last major issue to consider is the question of finances. What kinds of investments do the businesses you are considering require? Do the financial resources required put a strain on you? Are there options to start the business gradually, perhaps as a home operation and then grow it into a fully fledged company? These are the kinds of questions you must ask yourself once you have determined to start your own business. While many other questions will likely arise, dealing with each of these issues can substantially lessen the stress you will certainly find in your new enterprise.  

Business in Mauritius – Setting Up and Relocating

Doing business in Mauritius has never been so exciting and easy, and with the right tools and support you can be well positioned to succeed.

Global Business

Global Business Companies (GBC’s), a unique concept introduced by the Mauritian government in 1992 which, offers investors an efficient vehicle for tax structuring and planning. GBC’s are governed by the Companies Act 2001 and the Financial Services Act 2007 and regulated by the Mauritius Financial Services Commission (FSC).

There are two types of GBC’s, based on the category of license:

  1. Category 1 Global Business License (GBC1) – this company must be administered by a Management Company e.g. for GMG via GMG Trust Ltd.
  2. Category 2 Global Business License (GBC2) – this company must be set-up by a Registered Agent.

Category 1 Global Business License (GBC1)

A GBC1 is a corporate vehicle used mainly to benefit from the network of double taxation avoidance agreements which Mauritius has concluded with a number of treaty countries. The GBC1 is resident for income tax purposes, and provided management and control is properly exercised in Mauritius, it can benefit from the network of double taxation treaties. In addition, there is no withholding of taxes on dividends, interests and royalties paid to any person and there is no capital gains tax. The GBC1 is a very useful corporate vehicle for international tax planning and structuring. Some Key Characteristics:

  • Residents may qualify to access the network of double taxation treaties
  • Application for a license is processed within 2 weeks (provided all required documents have been submitted)
  • Beneficial owner’s details are disclosed to the FSC, but not available to the public
  • Limited life companies permitted; Protected Cell companies also permitted for certain global business activities (insurance and investment funds)
  • Minimum of two resident directors
  • Audited accounts required to be filed with the FSC and Mauritius Revenue Authority
  • Potential Users of a GBC1

A GBC1 can be used for a wide range of business activities, including but not limited to, investment holding, estate planning, trading, licensing and franchising, property ownership, financing, debt factoring, etc. In addition, a GBC1 is permitted to undertake global business activities, such as, Investment Funds, Captive Insurance, International Financial Services, Asset Management, Pension Funds and it can be structured as a Protected Cell Company.

Key Features of the GBC1

Confidentiality: Specific provisions regarding confidentiality

Disclosure Requirements: Information filed with the Registrar of Companies and the FSC are not available to the public

Beneficial Ownership: Required to be disclosed to the authorities

Shareholders: Disclosed to the authorities

Register of Members:  Required, maintained in Mauritius

Single shareholder and director permissible: Yes

Minimum no. of Shares: One

Authorized Share Capital: Not required

Bearer Shares: Not Allowed

Corporate Income Tax: Yes, subject to a rate of 15% which results in an effective tax rate of 3% after concessionary foreign tax credits of up to 80% are applied.

Double Taxation Avoidance Agreement: Yes, can access / benefit

Minimum no. of Directors: One or two to qualify for treaty benefits

Corporate Directors: Not permissible

Board Meetings: Must be held, chaired and minuted in Mauritius

Secretary: Required

Registered Office: Must be situated in Mauritius

Annual Meeting: Required, can be done by written resolution for private companies

Audited Accounts: Required

Annual Return: Not required, but audited accounts must be filed with the FSC and the Revenue Authority

Company Name: English or French or jointly with another language e.g. Chinese

Constitution: English or French or jointly with another language e.g. Chinese

Company Name ending B.V., N.V., S.A., etc: Allowed

Continuation from/to another jurisdiction or from/to a GBC2: Migration permissible

Category 2 Global Business License (GBC2)

A GBC2 is a flexible corporate vehicle which has similar characteristics to that of the popular British Virgin Island Business Company. The GBC2 is exempt from corporate income tax and other taxes & duties in Mauritius. In addition, taxes are not withheld on dividends, interests and royalties paid to any person and there is no capital gains tax. A GBC2 is required to at all times have a Registered Office and a Registered Agent in Mauritius. A GBC2 cannot access the network of Double Taxation Treaties concluded by Mauritius.

Key Characteristics:

  • Low incorporation cost and fairly quick incorporation period
  • No minimum capital requirement
  • Shares can be issued with or without par value
  • Limited life permitted
  • Corporate director permissible
  • No requirement for audit and annual return
  • No access to double taxation treaties

Potential Uses

A GBC2 can generally be used for a wide range of business activities other than banking; financial services; holding or otherwise dealing with a collective investment fund or scheme as a professional functionary; providing registered office, nominee services or other services for corporations; and providing trusteeship services by way of business. In addition, a GBC2 is a flexible and suitable vehicle to hold and manage private assets such as property, trading, licensing, consulting, etc.

Proposed changes for GBC2 in 2009-2010 Budget

Following the 2009-2010 Budget, certain changes have been proposed regarding the disclosure requirements relating to Category 2 Global Business Companies such as:

  • More information relating to Beneficial Owners of Category 2 Global Business Companies;
  • A more detailed business plan; and
  • Filing of financial summaries.

Key Features of the GBC2

Confidentiality: Specific provisions regarding confidentiality

Disclosure Requirements: Information filed with the Registrar of Companies and the Financial Services Commission are not available to the public

Beneficial Ownership: Not disclosed to the authorities

Shareholders: Disclosed to the Authorities

Register of Members: Required, maintained in Mauritius

Single shareholder and director permissible: Yes

Minimum no. of Shares: One

Authorized Share Capital: Not required

Bearer Shares: Not Allowed

Nominee Shareholders: Allowed

Corporate Income Tax: Exempt

Double Taxation Avoidance Agreement: Cannot access or benefit

Minimum no. of Directors: One

Corporate Directors: Permissible

Board Meetings: Can be held anywhere

Secretary: Not required / Optional

Registered Office: Required, in Mauritius

Registered Agent: Required, in Mauritius

Annual Meeting: Required, can be done by written resolution for private companies

Audited Accounts: Not required

Annual Return: Not required

Company Name: English or French or jointly with another language e.g. Chinese

Constitution: English or French or jointly with another language e.g. Chinese
 

HOW TO RELOCATE TO MAURITIUS

Relocation to another country has never been easier. To live and work in Mauritius requires a work and residence permit, and there are currently three ways in which a person (and his/her dependants) can be granted a  permit:

1 – IRS (Integrated Resort Scheme) – this results in an immediate residence permit. (See more details further down)

2 – Occupational Permit (“OP” – which is valid for three years)

3 – As a Retiree

2.1 – Occupational Permit

An occupational work permit allows a foreigner to reside and work in Mauritius and can be obtained as an Investor, a Professional or Self Employed. The following conditions apply:

Investor

Three Year Permiy – The proposed business activity should generate an annual turnover exceeding MUR 3 million.

Permanent – 10 years – An annual turnover for three consecutive years exceeding MUR 15 million.

Professional

Three Year Permit -  The basic monthly salary of a professional should exceed MUR 30,000.

Permanent – 10 years - The basic monthly salary earned is in excess of MUR 150,000 per month for the period of three consecutive years.

Self Employed

Three Year Permit – The annual income of the proposed business activity should exceed MUR600,000.

Permanent – 10 years – An annual turnover of the business which exceeded MUR3 million for the first three years.
 
Having permanent residence (valid for ten years) is beneficial as this allows the person to acquire property on the island, other than through the IRS schemes.

As soon as the required documentation is submitted, occupational permits (which are valid for three years) are issued within three days.

2.2 – As a Retiree

This permit allows an eligible retired non-citizen to reside in Mauritius, subject to this person undertaking to transfer at least USD 40,000 annually into Mauritius. This permit is valid for only three years, but this person could also apply for a permanent permit (valid for 10 years) if the above mentioned funds have been transferred regularly.

2.3 – Citizenship

Obtaining a permanent residence permit does not automatically result in a citizenship. Only the Prime Minister can grant citizenship and the application can be made after five years.