Company registration in Mauritius
Company registration in Mauritius

The Republic of Mauritius is an island nation situated east of Madagascar off the southeast coast of Africa. Since its independence in 1968, Mauritius has continued to climb the economic ladder and has earned Africa’s highest income per capita. As the main financial hub for investment into Africa, its incessant economic growth, political stability, and improved infrastructure have made it rank 1st in Africa and 20th in the world for the ease of doing business, according to the 2019 World Bank Doing Business Report. Moreover, the island is one of the world’s most popular business destinations for international banking and company formation. The local government and regulatory authorities strive to offer foreign investors attractive tax incentives, fast and efficient services, commercially focused and pragmatic policies and a very user-friendly legislation catered to foreign enterprises.

WHY MAURITIUS?

WHY NOT?


  • 15% corporate income tax rate (AC is fully tax exempt and GBL can obtain an 80% tax exemption)
  • Companies exporting goods are taxed at the rate of 3% on taxable income attributable to exports
  • Non-residents are levied on income obtained from Mauritian sources only
  • No tax on dividends paid by resident companies. Foreign dividends are taxable but with possible credit for withholding and underlying tax
  • No tax on capital gains
  • No surtax
  • No foreign exchange controls
  • Foreign income tax paid may be credited against Mauritius tax
  • Losses can be carried forward for five years
  • No withholding tax on dividends
  • 15% withholding tax is applicable on interests
  • 10% withholding tax on royalties paid by residents/15% withholding tax on royalties paid by non-residents unless an applicable tax treaty changes the rate
  • 15% VAT rate
  • No tax levied on real estate property
  • No inheritance or estate tax
  • No wealth or worth tax
  • Over 45 tax treaties
  • Possibility of obtaining a tax residence certificate
  • No public registry of shareholders
  • EU High Risk and FATF Jurisdiction (Greylist)
  • The jurisdiction has a reputation of a tax haven which makes the bank account opening process outside Mauritius near impossible and can create significant complications for business operations
  • Poor infrastructure and lack of qualified labor force as well as strict immigration procedures for employment visas may make it difficult to satisfy substance requirements for entities that wish to be tax residents of Mauritius
  • Risk of natural disasters is among the highest in the world – creates significant obstacles for day to day operation ;
  • Legal proceedings are very time taking and burdensome, for example enforcing a corporate contract by court order requires navigating through 36 different procedures that can last more than two years
  • Construction business and building of residences have significant limitations due to environmental factors and acquiring a license to build may take years
  • Resolving insolvency is also a drawn-out process which may take more than one and half year to complete
  • There are many restrictions and high contribution minimums for foreign investors in the Mauritius tourism industry
  • Special registration is required for obtaining trade licenses and data protection offices which may take up to six weeks to complete
  • No access to VAT clearing

Mauritius, under the Income Tax Regulations 2019, introduced controlled foreign company (CFC) rules, applicable to non-resident companies majorly owned by resident companies. Furthermore, the Republic is now a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG) and in general has greatly amended its regulatory framework to be more compliant with today’s international regulatory requirements and Directives. It is still however, considered to be a ‘greylist’ jurisdiction which significantly lowers the chances of opening a bank account for a Mauritius legal entity. 

Mauritius offers foreign investors two excellent financial instruments to conduct business: The Authorized Company and the Mauritius Global Business License Company. The Authorized Company (AC) is a standard tax-free International Business Company intended for business activities such asset protection, estate planning and global investment without the need for physical presence and tax residency in the jurisdiction. It is not permitted to carry out business activities related to banking, finance, trusteeship and fiduciary services. The Global Business License Company (GBC) on the other hand, is also considered an international company but of real substance and is treated as a fully-fledged tax resident of Mauritius with the advantage of relatively flexible requirements and appealing tax incentives. As an entity which conducts business outside Mauritius, but still a tax resident of the jurisdiction, a GBC is entitled to the partial exemption regime (PER) which is an 80% tax credit on the standard 15% corporate income tax rate, making its effective tax rate only 3%. It also benefits from double tax treaties signed with over 45 nations, allowing corporate tax exemption in other countries and zero withholding tax on interests and dividends. However, having said that, in order for a GBC to benefit from all the above-mentioned tax incentives offered by the jurisdiction it must fulfill the following substance requirements:

  • Carry out its Core Income Generating Activities (CIGA) in Mauritius
  • Management and control are primarily exercised in Mauritius
  • Directly or indirectly employ a certain number of local skilled professionals
  • Demonstrate minimum local expenditure comparative to its level of activities

Corporate Features of a Mauritius GBC and AC

GENERAL

GBC

AC

Incorporation Time

One Business Day

Approximately 3 weeks

Local Registered Agent Required

Yes

Yes

Local Registered Address Required

Yes

Yes

Migration of Domicile Permitted

Yes

Yes

SHARE CAPITAL

Minimum Share Capital

USD 1.00

USD 1.00

Minimum Paid Up

USD 1.00

USD 1.00

Maximum Share Capital

No Maximum

No Maximum

Bearer Shares Allowed

No

No

SHAREHOLDERS

Minimum number

One

One

Maximum number

No Maximum

No Maximum

Publicly accessible records

No

No

Corporate shareholder allowed

Yes

Yes

Annual General Meeting Required

Yes

Yes

DIRECTORS

Minimum Number

Two

One

Maximum Number

No Maximum

No Maximum

Local required

Yes

No

Publicly accessible records

No

No

Corporate directorship allowed

No

Yes

COMPANY OFFICIALS

Secretary Required

Yes

No

Local Secretary Required

Yes

No

Other Officials Required

No

No

COMPANY ACCOUNTS

Requirement to Prepare

Yes

Yes

Requirements to File Accounts

Yes

Yes

Audit Required

Yes

No

OTHER ANNUAL REQUIREMENTS

Government Renewal Fee

USD 1,950 to the Financial Services Commission and USD 325 to the Registrar of Companies

USD 350 to the Financial Services Commission and USD 100 to the Registrar of Companies

Annual Return

Yes

Yes

Tax Return

No

No

Submission of Economic Substance Report

No

No

Contact us and our corporate department will gladly provide you with more information on setting up any type of entity in Mauritius and can offer high-quality administration and management services including accounting and preparation of financial statements. Furthermore, we can assist you with bank account opening whether it be in Mauritius or another international financial institution, help you prepare a solid due diligence portfolio and assist with fulfilling the substance requirements should you wish to base your business in the country.

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