Are you an Indian entrepreneur interested in tapping into Mauritius' business potential? Setting up a company in Mauritius from India offers exciting prospects due to its favorable tax policies and business-friendly atmosphere. However, navigating company registration involves understanding legal procedures and compliance requirements.
From choosing the right business structure to obtaining approvals and documents, attention to detail is crucial. Seeking guidance from local advisors familiar with Mauritius' regulations can smooth the process. With proper preparation and expert help, Indian entrepreneurs can leverage Mauritius' strategic location and growing economy for business growth and expansion.
Is it Possible to Register a Company in Mauritius from India?
Yes, it is possible to register a company in Mauritius from India. While physical presence may not be required, you can engage with us as your representative who can assist in navigating the registration process remotely. Utilizing digital communication channels and electronic documentation submission, entrepreneurs can fulfill the necessary requirements for company registration in Mauritius from India.
Types of Companies in Mauritius
Here are the types of companies you can register in Mauritius:
Limited by Shares: This structure limits shareholders' liability to the value of their unpaid shares, offering security and peace of mind while fostering a conducive investment environment.
Limited by Guarantee: Companies adopting this structure cap members' liabilities at a predetermined amount, ensuring their security even in scenarios like company liquidation.
Combined Structure: Some companies opt for a hybrid approach, blending elements of both limited by shares and guarantee. This unique arrangement limits shareholders' liability to unpaid shares while requiring members to commit to a pre-agreed contribution in the event of winding-up, thus enhancing financial stability and confidence.
Additionally, other company statuses in Mauritius include:
- Unlimited Company
- Limited Life Company
- One-Person Company
Each structure offers distinct advantages and considerations, providing flexibility for businesses to choose the most suitable option based on their goals and circumstances.
Benefits for Indian Entrepreneurs For Mauritius Business Setup
These advantages position Mauritius as an attractive destination for businesses seeking growth, profitability, and international expansion.
- 100% Foreign Ownership: Investors enjoy the freedom of full ownership in Mauritius.
- Political and Economic Stability: The nation provides a stable environment conducive to business growth.
- Investment and Business-Friendly: Renowned as Africa's leading international financial center, Mauritius fosters economic freedom, competitiveness, and transparency.
- Compliance with International Standards: Adhering to OECD, EU, FATF standards ensures transparency and credibility.
- Extensive Investment Protection Agreements: A wide network of IPPAs safeguards investments.
- Membership in Trade Organizations: Being part of SADC, COMESA, AU, and AFCFTA enhances trade opportunities.
- Good Governance: The country prioritizes governance integrity, fostering trust and stability.
- Cost-Efficient Company Formation: Setting up businesses is affordable, with reasonable office accommodation costs.
- Skilled Bilingual Workforce: Qualified English-French speakers offer competitive labor rates.
- Comprehensive Banking Services: International banks facilitate seamless financial transactions.
- Strategic Location and Time Zone: GMT+4 time zone aids international dealings due to Mauritius' central location.
- Confidentiality: Ultimate beneficial owners enjoy privacy.
- Tax Advantages: No capital gains tax, low individual and corporate tax rates, and tax-free dividends promote profitability.
- Free Repatriation: Dividends, capital, and profits can be repatriated freely.
- No Inheritance Taxes: Ensures wealth preservation.
- Innovative Platform for Foreign Investors: Encourages innovation and entrepreneurship.
- Strategic Location: Proximity to Africa and Asia fosters regional connectivity.
- Double Taxation Avoidance Agreements: Extensive DTAs prevent double taxation, promoting international trade.
- Modern Infrastructure: High-tech facilities support business operations efficiently.
- Competent Capital-Raising Platform: The Stock Exchange of Mauritius offers a reliable avenue for raising capital.
Step-by-Step Process to Register a Company in Mauritius
By following these steps below and seeking guidance from legal and business experts where necessary, you can successfully register and establish your company in Mauritius from India.
Reserve Company Name: Begin by selecting a unique name for your company and check its availability with the local Registrar of Companies. Ensure the name complies with Mauritius' naming conventions and does not infringe on existing trademarks.
Prepare Memorandum and Articles of Association (M&AA): Draft the Memorandum and Articles of Association outlining the company's objectives, internal rules, and regulations. These documents must comply with the Companies Act of Mauritius.
Submission to Registrar of Companies: Submit the Memorandum and Articles of Association along with other required documents to the Registrar of Companies in Mauritius. This submission initiates the company registration process. You will receive a registration number upon approval.
Obtain Registration Certificate: Once the Registrar of Companies approves your application and verifies the documents, you will receive a Certificate of Incorporation. This certificate signifies that your company is officially registered and recognized by the government of Mauritius.
Apply for Business Permit: Depending on the nature of your business activities and the residency status of shareholders and directors, you may need to apply for a business permit from the Corporate and Business Registration Department (CBRD). This permit grants authorization to conduct business activities in Mauritius.
Tax Registration: Register your company for tax purposes with the Mauritius Revenue Authority (MRA). This involves obtaining a Tax Identification Number (TIN) and complying with the country's tax regulations.
Open Bank Account: Choose a bank in Mauritius and open a corporate bank account for your company. Provide the necessary documents, including the Certificate of Incorporation and proof of identity for directors and shareholders.
Compliance with Regulations: Ensure compliance with all relevant regulations and requirements, including annual filings, statutory reporting, and ongoing compliance obligations.
Documents Required to Register a Business In Mauritius from India
To register a business in Mauritius from India, the following key documents are required:
Application for Incorporation of a Company (Form 1): This form serves as the official application for company registration and includes essential details such as the proposed company name, directors' and shareholders' information, registered office address, and business activities.
Consent Forms:
- Form 7: Consent of every proposed director.
- Form 8 (if applicable): Consent of every proposed secretary.
- Form 9: Consent of every proposed shareholder, specifying the number and class of shares taken and the amount paid for those shares.
Constitution of the Company: A copy of the company's constitution, if applicable, certified by at least one applicant.
Proof of Identity and Address:
- Passport photocopies for non-residents.
- Copy of residence permit if the only director is a foreigner.
- Proof of director's address (e.g., utility bill).
- Proof of address of secretary in case of a one-person company.
Additional Documents:
- In the case of a company limited by guarantee, a document signed by each member signifying consent to be a member and the amount they undertake to contribute in the event of winding up.
- Form of proxy authorizing an agent to act on behalf of shareholders or members, if applicable.
Original Copy of Certificate of Reservation: If the company name has been reserved, the original certificate of reservation should be provided.
Approval from Financial Services Commission (FSC): For companies holding a Category 1 or 2 Global Business Licence, incorporation is only affected after receiving approval from the FSC.
Other Considerations:
- At least one director should be a resident in Mauritius.
- Companies are automatically registered as employers with the Mauritius Revenue Authority upon incorporation.
Eligibility Criteria for Registering a Company in Mauritius
Resident Director Requirement: At least one director must be a resident of Mauritius.
No Minimum Share Capital: There is no minimum share capital requirement for company registration.
Resident or Non-Resident Shareholders: Shareholders may be either residents or non-residents of Mauritius.
Registered Office Address: A registered office address located in Mauritius is required for the company.
Timeline for Launching Your Business in Mauritius
Starting a business in Mauritius is a streamlined and efficient process. Typically, it takes an average of just three working days to secure your certificate of incorporation. However, the exact timeline may vary based on factors such as the type of company, required licenses, and any additional government approvals. Thankfully, the process is well-structured and straightforward, ensuring a smooth journey for entrepreneurs. Additionally, experienced business registration service providers like StartanIdea offer invaluable support and guidance to ensure that your incorporation application meets all necessary requirements seamlessly.
Taxes Applicable to Mauritius Companies with India Connections
Understand the taxes applicable to Mauritius companies with Indian connections:
Corporate Income Tax
- Previously, GBC1 companies enjoyed an 80% tax credit, resulting in an effective income tax rate of 3%. Now, GBL companies face a 15% local tax rate.
- However, GBL companies meeting economic substance requirements can benefit from an 80% partial exemption regime on specific income streams, maintaining a 3% effective tax rate.
- Income streams eligible for this partial exemption include foreign dividends, interest income, and revenue from ship and aircraft leasing.
Other Taxes
- Mauritius does not levy capital gains tax, real property tax, inheritance tax, estate duty, capital transfer tax, gifts tax, or wealth tax.
- VAT at 15% applies to goods and services.
Cost Required to Run a Mauritius Company From India
Running a Mauritius company from India incurs various costs, including:
Company Registration Fees: Initial fees for registering the company with the Registrar of Companies in Mauritius.
Annual Fees: Annual fees for maintaining the company's registration and compliance with regulatory requirements.
Registered Office Address: Costs associated with renting a registered office address in Mauritius, which is a mandatory requirement.
Local Secretary Fees: Expenses related to appointing a local secretary, as mandated by Mauritian law.
Taxation: Corporate income tax on profits earned by the Mauritius company, at a rate of 15%.
Legal and Accounting Services: Fees for legal and accounting services to ensure compliance with Mauritian regulations and tax requirements.
Administrative Costs: Costs associated with day-to-day administrative tasks, such as communication, banking, and record-keeping.
Miscellaneous Expenses: Additional expenses such as travel, communication, and any other operational costs incurred while managing the company remotely from India.
Overall, the total cost of running a Mauritius company from India depends on various factors such as the size and nature of the business, specific regulatory requirements, and the level of support and services required. It's advisable to consult with legal and financial experts to accurately estimate and plan for these expenses.
Business Setup in Mauritius: StartanIdea Supports Indian Entrepreneurs
At StartanIdea, we specialize in simplifying company formation for Indian entrepreneurs in Mauritius. With over two decades of experience, we offer tailored advisory services to meet each client's unique needs. Our comprehensive solutions cover all aspects of incorporation, from initial setup to long-term growth strategies. Leveraging our deep understanding of the Mauritius business landscape, we guide entrepreneurs seamlessly through the process.
Collaborating with local experts, we ensure compliance, governance, and timely reporting, empowering Indian entrepreneurs to establish their presence in Mauritius with confidence and efficiency. Join us to embark on your business journey with ease.
