Two jurisdictions dominate the conversation when NRIs and Indian entrepreneurs consider offshore company formation: Mauritius and Singapore. Both are reputable, FATF-compliant, and well-regarded by Indian banks and regulators. But they serve different needs. Here's a definitive comparison for 2025.
At a Glance
| Factor | Mauritius (GBC) | Singapore (Pte Ltd) |
|---|---|---|
| Corporate Tax Rate | 15% flat | 17% (effective ~8.5% with exemptions) |
| Capital Gains Tax | Nil | Nil |
| DTAA with India | Yes (since 1983) | Yes (since 1994) |
| Setup Cost (approx.) | USD 3,000–5,000 | USD 5,000–10,000 |
| Annual Maintenance | USD 2,000–4,000 | USD 3,000–6,000 |
| Minimum Directors | 2 (resident) | 1 (resident) |
| Banking Access | Good (AfrAsia, SBM, MCB) | Excellent (DBS, OCBC, UOB) |
| Substance Requirements | Moderate | High |
| Reputation | Strong (OECD white-listed) | Excellent (AAA-rated) |
DTAA Position with India
Both Mauritius and Singapore have DTAAs with India. The Mauritius treaty is older and historically more favourable for capital gains (pre-2017). Post-2017 amendments have largely equalised the capital gains treatment. For dividend and interest income, Mauritius retains a slight edge with its 5–15% dividend withholding rate vs Singapore's 10–15%.
When to Choose Mauritius
- You are routing investments into India and want DTAA protection on dividends/interest
- Cost efficiency is a priority (lower setup and annual costs)
- You have Africa-facing business interests (Mauritius is a gateway to African markets)
- You want a simpler compliance regime
When to Choose Singapore
- You need access to world-class banking infrastructure
- Your business is Southeast Asia or ASEAN-facing
- You require a high-prestige address for investor relations
- You plan to raise VC/PE funding (Singapore is the preferred VC hub in Asia)
Our Recommendation
For most NRIs with India-linked investment or trading structures, Mauritius is the more cost-effective and tax-efficient choice. For those building scalable tech or fintech businesses targeting global investors, Singapore may be worth the premium.
Blueberry offers formation services in both jurisdictions. Start with Mauritius →
Also read: Complete Guide to Company Formation in Mauritius | Why NRIs Should Form a Company in Mauritius in 2025