Company Registration in Mauritius
Why choose Mauritius to start a Company?
Mauritius is a beacon of political, social, and economic stability. Mauritius has a mixed developing economy based on manufactured exports, agriculture, tourism, and financial services. With its wide network of Double Taxation Avoidance Agreements and Investment Promotion and Protection Agreements (IPPAs), Mauritius offers investors a conducive environment for doing business. You can choose Mauritius to start a company.
Types of entities in Mauritius
Sole proprietorship:
A sole proprietorship is a simplest and most chosen vehicle among the types of companies in Mauritius. This type of business should apply for Business registration number (BRN) and it got unlimited liability.
Non-Mauritian citizens can also set up a sole proprietorship in Mauritius. Once they obtain an occupation permit, they can set up a business. Even, Individuals can register multiple sole proprietorships or do various businesses as sole proprietors in Mauritius
Non-Mauritian citizens can also set up a sole proprietorship in Mauritius. Once they obtain an occupation permit, they can set up a business. Even, Individuals can register multiple sole proprietorships or do various businesses as sole proprietors in Mauritius
Societés or Partnerships
A "partnership" refers to an affiliation of two or more partners that is established with a distinct objective in mind. The lifespan of a partnership is established within the deed (status) and is subject to a maximum limit of 99 years. The partners have the option to renew, extend, or dissolve the Partnership at any point before to the conclusion of the term or upon its completion.
Limited Partnerships
A Limited Partnership is set up under the Limited Partnerships Act 2011. A limited partnership can elect to have legal personality and must have at least one general partner who is liable for all the debts and obligations of the partnership, and one limited partner who is liable only up to the maximum amount of its commitment.
It must have a registered office in Mauritius, which may or may not serve as its principal place of business. Foreign limited partnerships can be continued into Mauritius, and Mauritius limited partnerships can be continued to other jurisdictions.
It must have a registered office in Mauritius, which may or may not serve as its principal place of business. Foreign limited partnerships can be continued into Mauritius, and Mauritius limited partnerships can be continued to other jurisdictions.
Limited Liability Partnership
It combines features of both a company and a limited partnership. An LLP can be set up by two or more partners. The law allows conversion of an existing entity or unincorporated body to an LLP and the re-domiciliation of foreign LLPs or Mauritian LLPs either wise.
In an LLP, partner can be an individual, an entity or an unincorporated body. The LLP must appoint a manager, resident in Mauritius at all times.
In an LLP, partner can be an individual, an entity or an unincorporated body. The LLP must appoint a manager, resident in Mauritius at all times.
Companies
Domestic Company
A domestic company (DC) is domiciled and doing business in Mauritius. The domestic company can be non-resident of Mauritius with minimum one shareholder. At least one director must be appointed who is resident in Mauritius.
There is no compulsory requirement of registered office and a virtual office may suffice for the registration of a Domestic Company. There are no minimum capital requirements for the
incorporation of a DC.
There is no compulsory requirement of registered office and a virtual office may suffice for the registration of a Domestic Company. There are no minimum capital requirements for the
incorporation of a DC.
Authorized company (AC)
An Authorised Company is an entity where the majority of shares or voting rights or the legal or beneficial interest, business activities and control & management outside of Mauritius. an Authorised Company shall not conduct a business activity specified in the Fourth Schedule. (Banking, Financial services, Providing of registered office facilities, nominee services, directorship services, secretarial services or other services for corporations, Providing trusteeship services by way of business).
An Authorised Company is treated as a non-resident for tax purposes in Mauritius. An Authorised Company also does not benefit from double tax treaties that Mauritius has with various countries. While having its control & management abroad, an Authorised Company is also required to appoint a registered agent in Mauritius.
It can have foreign residents as shareholders and directors.
An Authorised Company is treated as a non-resident for tax purposes in Mauritius. An Authorised Company also does not benefit from double tax treaties that Mauritius has with various countries. While having its control & management abroad, an Authorised Company is also required to appoint a registered agent in Mauritius.
It can have foreign residents as shareholders and directors.
Global Business Cooperation (GBC)
A Global Business Corporation is a resident corporation which proposes to conduct business principally outside of Mauritius and is licenced by the Financial Services Commission.
Where the Company is controlled by non-citizens of Mauritius and its main activities are conducted outside of Mauritius, it will have to apply for a Global Business Licence. A GBC demonstrates substance in Mauritius and being tax resident entity, it benefits from Mauritius’ Double Tax Treaties.
There shall be at least two directors who are resident in Mauritius. However, there can be 1 non-resident shareholder with no minimum capital requirement and can be represented in currency. It is necessary to have a registered office and a principal Bank Account of a GBC in Mauritius.
A GBC enjoys residency in Mauritius for tax purposes and gets benefited from the advantages of the Double Taxation Avoidance Agreements which Mauritius has signed.
Where the Company is controlled by non-citizens of Mauritius and its main activities are conducted outside of Mauritius, it will have to apply for a Global Business Licence. A GBC demonstrates substance in Mauritius and being tax resident entity, it benefits from Mauritius’ Double Tax Treaties.
There shall be at least two directors who are resident in Mauritius. However, there can be 1 non-resident shareholder with no minimum capital requirement and can be represented in currency. It is necessary to have a registered office and a principal Bank Account of a GBC in Mauritius.
A GBC enjoys residency in Mauritius for tax purposes and gets benefited from the advantages of the Double Taxation Avoidance Agreements which Mauritius has signed.
Distinction between Authorized Companies and Global Business Companies.
These are the 2 most common offshore business entities in Mauritius. As one of the most progressive economies in the Africa region.
Basis | Authorized companies(AC) | Global business cooperations (GBC) |
|---|---|---|
Having access to the Double Taxation Treaties network | No | Yes |
Enlisting of a Registered Agent | Required | Not required |
Doing business locally | Not authorized | Authorized |
Scope of business organisations | Barred from engaging in certain activities (banking, financial services, holding/managing business funds, etc.) | Confined to the prescribed activities in the business plans. |
Taxation
Corporate Tax
A corporation domiciled in Mauritius is liable to taxation on its global revenues. A non-resident corporation is legally obligated to pay taxes on any revenue derived from Mauritius, in accordance with the conditions outlined in relevant tax treaties.
Corporations are subject to the payment of income tax on their net income, which is presently assessed at a uniform rate of 15%. Companies involved in the exportation of commodities are subject to a tax rate of 3% on the chargeable income that can be attributed to exports, as determined by a stipulated formula.
Corporations are subject to the payment of income tax on their net income, which is presently assessed at a uniform rate of 15%. Companies involved in the exportation of commodities are subject to a tax rate of 3% on the chargeable income that can be attributed to exports, as determined by a stipulated formula.
Value Added Tax (VAT)
Company should register for VAT purposes where:
- Its annual turnover of taxable supplies exceeds or is likely to exceed 6 million rupees;
- It is engaged in any business or profession specified in Schedules of the Value Added Tax Act irrespective of its turnover or taxable supplies.
Tax deduction at Source (TDS)
A company paying interest, royalty, commission and rent or effecting payments to contractors/subcontractors, providers of specified services and to any person for the procurement of goods and services under a contract should deduct tax at source at the appropriate rate on the invoiced amount (pre-vat), at the time the payment is made available to the payee.
FAQs
Qu. Can a foreigner open an offshore company in Mauritius?
Ans –Yes, you can.
Non-Mauritian residents can open an offshore company or carry out their business in Mauritius through relevant requirements.
In the case of Global Business Company, you must assign 2 local directors and have a registered office in Mauritius. You must also have a qualified company secretary (either firm or individual) who is a Mauritius resident.
If you want to open an Authorised Company, you should make sure the company is controlled by a person or a group who are non-Mauritian residents. Also, a registered office is required to set up a Mauritius Authorised Company.
Qu. Must we present in Mauritius to form an Authorized Company?
Ans –Absolutely not. The incorporation can initiate as soon as the physical requirements reach Mauritius office. A visit to Mauritius at the company formation stage is not requisite.
Qu.Who can certify, or notarize, the required documents for the incorporation in
Mauritius?
Ans –Any required documents must be certified as true copies if they are not submitted in the original form. Copies must be certified by a lawyer, notary, actuary, accountant, or any person holding a recognized professional qualification. The certification must contain the certifier’s signature, full name, address, and position, or must be enclosed with the contact details document.
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