Mauritius is a jurisdiction that has shown significant economic growth from a low-income to a middle-income economy. Now, it has well-developed tourist, industrial, and financial sectors. So, many foreign entrepreneurs may find this jurisdiction suitable for establishing a business presence.
Major Forms of Legal and Business Presence
If you are considering an opportunity of establishing your business presence in Mauritius, we suggest you consider one of the next most popular forms:
- Company Limited by Shares – an enterprise where the financial liability of members is restricted to the amount unpaid for their shares. It can be either (i) private where certain restrictions on the allotment and transfer of shares are applied and where there cannot be more than 50 shareholders, and (ii) public where an enterprise may freely offer its shares to the public for involving extra funds. The minimum paid-up capital of $1 is basically enough to form a company limited by shares.Global Business Company (Offshore) – an entity that is registered in, governed from but conducts business outside the territory of Mauritius. For this purpose, the entity has to obtain the license from the Financial Services Commission for conducting business outside this jurisdiction. The enterprise is generally used for international trading and making investments outside the state. It falls under the provisions of the network of double-tax treaties and enjoys the benefits of the local tax system. Minimum one shareholder and two directors (residing in Mauritius) are required in this case. The enterprise should also have a bank account in Mauritius as a must-have feature attributed to its substance. This business option ensures a sufficient level of privacy for beneficial owners.
- Authorized Company (Offshore) - an entity where the majority of shares are owned by a non-resident of Mauritius and managed outside its territory. The entity can be formed by at least one shareholder and has to pass the authorization procedure in the Financial Services Commission. It also should have a registered agent in the territory of Mauritius and at least one director. The entity should have at least one paid-up share.
- Branch – an overseas company may establish in Mauritius its branch for conducting the same types of business activities as aboard. Registration is necessary in this case.
Registration Requirements and Steps
Preliminary, the process of in company incorporation Mauritius covers these stages and steps:
- Identifying your business objectives and priorities you want to realize through the enterprise in Mauritius.
- Choosing and verifying a business name for a future enterprise.
- Arranging the registered office for a future company.
- Gathering data about founders, beneficial owners, and future management of a company.
- Drafting and formalizing statutory documents for a future enterprise.
- Forming and lodging the set of registration documents to a registrar.
- Registration for tax and social security purposes.
- Opening a corporate bank account.
- Obtaining additional licenses and permits (required for specific types of regulated activities).
Legal and Regulatory Framework
Mauritian legislation offers a variety of conditions for doing business. Business owners choose their activities independently. Among the most popular are all those associated with the coordination of financial flows. This is Forex, which works with securities and other regulated activities. Mauritian transparent legislation has significantly simplified the procedure of obtaining financial licenses, allowing the sphere to develop very dynamically, bringing good profits to businessmen.
The main legislative acts regulating the procedure of establishing and operating a business in Mauritius are the Companies Act and the Financial Services Act. The major regulatory bodies in the commercial sphere are the Ministry of Finance, Economic Planning and Development, the Mauritius Revenue Authority, and the Financial Services Commission.
Advantages of the Jurisdiction
If you are evaluating an opportunity for registering a company in Mauritius, we can list these basic arguments in favor of it:
- Developed infrastructure. In the jurisdiction, there are a huge number of offshore banks and companies.
- Security. Mauritius offshore zone with a favorable political and investment climate contributes to the development of activities on an international scale and there is no doubt about the safety of the capital invested.
- Loyalty. There is no foreign currency exchange control and auditing obligations. It is only necessary to reflect all transactions in the relevant documentation and store it in the office. Easy and accessible registration procedure.
- Nominal service. You may use the services of resident shareholders and thus maintain complete confidentiality of personal data.
Tax System of Mauritius
While evaluating an option of company incorporation in Mauritius, it is better to keep in mind these important tax highlights:
- Corporate income tax – basic 15 %
- Personal income tax – 15 %
- Value-added tax – 15 %
- Withholding tax rates (for non-residents) – (i) dividends – 0 % (ii) interests – 15 % (iii) royalties – 15 %
- Capital gains tax – not applicable
In the case of carrying out business activities outside Mauritius taxation is made at a zero rate.
How Prifinance Specialists May Help You
If you are considering an option of company registration in Mauritius, Prifinance specialists may guide you in detail concerning the peculiarities of opening a company in this jurisdiction, collect and formalize all required documents, and complete the registration procedure upon your request. We are also ready to provide all required legal support to your enterprise further, in terms of its ordinary course of business and for possible non-standards issues. Reach us shortly for more precise consultations and proposals.