Mauritius is a small island nation in the Indian Ocean that gained its independence first as part of the British Commonwealth in 1968 and then, in 1992, in the form of a republic. Since then, the main sources of income of this African country are tourism and offshore services. In 2001, a special Agency for the promotion of services on the territory of the offshore center was opened here and a law was adopted to regulate business activity on the territory of the jurisdiction.

 

Today, incorporation of a corporation in Mauritius is of interest to many entrepreneurs seeking to expand their business, primarily in the investment sector. This country acts as the main financial hub for investments on the African continent. However, for most entrepreneurs it is notable for its pleasant tax regime and the fact that it is not included in any offshore blacklist. If you are also interested in opening a company in Mauritius, we recommend you to take the help of professionals of Attorney`s Association Lawrange. We are familiar with all the requirements and conditions that should be observed for the successful completion of the registration process. Our lawyers and other specialists will do everything necessary for you to open a company in this jurisdiction as comfortably and quickly as possible.

 

Advantages of registering a company in Mauritius

Until the early 2000s, the population of Mauritius was made up of Africans, French and Indians. After government reforms, Europeans and Chinese began to settle the island, usually all of them businessmen. Decades later, the situation has not changed, and the Mauritian market is still being sought by foreign entrepreneurs, and not only from the EU. The official language in the country is English, in which all business documentation is conducted. French is more widespread among the local population, which generally creates favorable conditions for communication of people arriving here with business goals. There are several main advantages that attract investors to Mauritius from all corners of the world.

 

Existence of a developed economy and an educated workforce

In addition to tourism and maritime fishing, the economy is significantly supported by income from foreign investment and business activities. It is possible to register a company in Mauritius in the industry:

 

  • telecommunications;
  • finances;
  • trade;
  • banking;
  • the stock room.

 

The Government of Mauritius has emphasized the development of the education sector, thus paving the way for an increase in the number of skilled professionals.

 

Important! Highly developed Mauritian economy allows foreigners to reach significant heights in various industries, represented by building strong partnerships and receiving a stable income.

 

A clean reputation is the key to successful business development

Every entrepreneur who decides to register a company in Mauritius is convinced of this. The high reputation status of the jurisdiction is the result of systematic work of the local government to meet the requirements of the international supervisory organization FATF. Its reports have repeatedly confirmed the success of Mauritius in improvement:

 

  • corporate legislative acts;
  • tax regulations:
  • laws to combat financial crime and terrorism.

 

Currently, this jurisdiction is almost fully compliant with all FATF requirements. This means that registering a business in Mauritius will have a positive impact on your ability to attract partners, counterparties and clients who will not question the legitimacy and quality of your business.

 

Tax paradise

Although Mauritius is not an offshore in the classic sense of the word, as companies are not fully tax exempt, there are still a number of advantages of the local tax system that make doing business here unburdened and easy:

 

  • Low tax rates.
  • Existence of state systems of incentives and deductions – incentives are provided for companies that specialize in working with intellectual property (tax exemption for 8 years) and operating in the P2P lending sector.
  • There is an extensive list of double taxation treaties in force.
  • Ability to pay taxes online.

 

Simple registration process

Registering a company in Mauritius is much easier than in other African jurisdictions. An absolute record has been set here in terms of the speed of opening one’s own company – 2 hours from the moment of filing an application. Moreover, not only local citizens, but also foreigners can register a company in Mauritius. In this case, the whole registration process takes about 10-30 days. Significant facilitation of the registration process is due to the possibility of submitting online applications, including for all sorts of licenses or documents.

 

Other pros that are also worth knowing about

Mauritius is an extremely favorable jurisdiction for opening a company, because here, in addition to the advantages described above, you have access to the opportunity:

 

  • Exempt your company from taxation, provided it does not derive income directly from business activities on the island.
  • Significantly save on registration – in this country government fees are much lower than in many European countries.
  • Take advantage of nominee service, which makes it much easier to manage your business from abroad.
  • Evaluate the lack of foreign exchange controls and the high level of banks’ compliance with trade secrets.

 

Types of companies for foreigners

The country’s legislation is based on English and French law. Since January 2019, the local law provides for the possibility for non-residents to register a company only in two legal forms (the others have been abolished).

 

Choosing an international licensed company

The name of this legal form in Mauritius is Global Business Company or GBC for short. By registering a company as a GBC, one can count on exemption from double taxation (within the framework of concluded agreements). For the foundation of such a company there is no minimum authorized capital. As for shares, they are prohibited for bearer shares, but they can be used either with or without a nominal value.

 

A Global Business Company in Mauritius can be headed by 1 or more individuals with local citizenship. In order to take advantage of the double tax treaty, at least 2 local directors must be employed. In addition, in order to take advantage of the benefits of international treaties, meetings of directors and shareholders should be held in Mauritius in the presence of two local directors. And, these can be not only physical office meetings but also video meetings or teleconferences. It is mandatory for a company to have a local registered office.

 

Main features of an authorized company

Such legal form is called an Authorized Company (abbreviated as AC). It is not subject to international treaties to prevent double taxation because it is a non-resident. The owners can manage and control the AC from abroad. If an Authorized Company is selected, it is not allowed to engage in activities:

 

  • Banking.
  • Financial.
  • Fiduciary.
  • Trust.

 

The company may be headed by any number of directors (natural persons) with any residency. Shareholders can be at least one natural or legal person. Nominee service is allowed. Owners of Authorized Company are required to file annual financial statements, but without being audited. There is a requirement to have a local registered office.

 

Company registration process in Mauritius

Registering a company in this jurisdiction, as already mentioned, is quite simple (of course, if you have the appropriate legal and financial knowledge). The main thing is to comply with all legislative norms and requirements, as well as the exact sequence of stages.

 

Name reservation

Generally a standard stage for company registration in any country. It is necessary to decide on the name – the Registrar is offered at least 3 options in order of preference (in case one of the names is already occupied). Selection of an acceptable name takes no more than 1 hour. You can submit the name for registration either at the office of the Registrar of Companies or online through the website of this institution.

 

It is not acceptable to use following words in the company name:

 

  • Authority.
  • Corporation.
  • Government.
  • Mauritius.
  • National.
  • President.
  • Chamber of Commerce and others with a similar meaning.

 

Filing of the registration file at the office of the Registrar of Companies

The applicant shall complete the prescribed business application form, which shall be submitted through a registered agent to the Registrar together with one of the following forms (depending on the type of company):

 

  • Director’s Consent.
  • Secretary’s Consent.
  • Consent of each founder of the enterprise.

 

The forms listed should be accompanied by a packet of documents consisting of:

 

  • Certified copies of passports (if the founder is a non-resident).
  • Copies of the residence permit, in case the company is headed by a sole foreign director.
  • Statement confirming the residential address of the director, founder and secretary.
  • Business Plan.
  • Professional Reference.
  • Memorandum and Articles of Incorporation.
  • Certificates of no criminal record.
  • CV for shareholder and director.

 

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Obtaining a certificate of incorporation

If the application complies with the legal requirements and the required state fees are paid, the Registrar issues a certificate of incorporation and assigns a registration number to the company. Information about the new company is entered into the Registry. After that, depending on the type of activity, some companies may need to obtain a license.

 

Opening a corporate bank account in Mauritius

The bank will only consider an application if it is submitted by an official representative. In order to start using a corporate account, company owners must provide the bank with all necessary documents, including:

 

  • Passport details of owners, directors.
  • Business Plan.
  • Certificate of Registration.
  • Memorandum, Bylaws (Articles of Association).
  • Description of the type of business of the company (Mauritian banks are not allowed to serve businesses that operate in the arms trade, tobacco, medicines, mining, etc.).

 

All documents must be submitted in English and notarized. If the application is approved, a fee of 100 US dollars is payable. If all the necessary documents are available, a bank account can be opened in 2-10 days. Current accounts can be opened in any currency, as there is no currency control in the country.

 

Specifics of taxation and reporting in Mauritius

The jurisdiction applies the territorial principle of taxation, which is as follows:

 

  • residents pay taxes on worldwide income;
  • Non-residents are taxed only on income earned within the island.

 

Local taxation does not apply to companies that do not have any domestic activities but are fully managed from abroad. They must file a nil return annually with the Revenue Authority.

 

Major Taxes:

 

  • Corporate – 15%.
  • Personal Income Tax – 15%.
  • VAT – 15%.
  • Social tax – 2% of the balance sheet profit.

 

For export activities, the income tax rate for residents is 3%.

 

Taxes are not imposed on dividends distributed to residents, and bilateral tax treaties significantly optimize interest and royalties. There is no tax on capital gains and no tax on immovable property owned by legal entities.

 

AC companies are exempted from the requirement to file annual financial statements. They need only prepare such accounts and keep them in Mauritius or, if the director of the company so directs, outside the jurisdiction. However, AC companies must file an annual return with the Registrar of Companies.

 

GBC companies are required not only to prepare and maintain financial statements, but also to submit them to the Finance Commission. An auditor’s report accompanying such statements must be prepared. An income tax return and annual accounts must also be submitted to the tax office.

 

Mauritius has double tax treaties with 40 countries, but AC companies cannot benefit from reduced tax rates because they are not tax residents. In addition, the conclusion of such agreements obliges Mauritius to be a full participant in the process of exchange of tax data upon request.

 

Important! Regardless of tax residency status, a company should not fall behind in filing the Annual Report – this should be done no later than six months after the end of the accounting period. There are exceptions to the filing deadlines in Mauritius: for example, when the end of the company’s accounting year falls on June 30 or December 31. In such cases, the tax due date is reduced to 2 days (i.e. by the end of June or December).

 

Establishment of a branch office in the Republic of Mauritius

Opening a branch office is possible with a resident representative and a local office, and:

 

  • One founder.
  • One director of any residency.
  • Authorizations from the tax authority.

 

Branches are ultimately subject to 15% income tax and are required to file annual financial statements. For such legal form the scope of operations is determined by the parent company.

 

Why you should choose Lawrange

Our support is recommended for anyone wishing to set up a company in Mauritius. As this is a very complex process that requires a professional approach, our services will be extremely useful. First of all, the work of experienced professionals on this task will avoid unnecessary mistakes or, for example, confusion in the documents. This means that the registration will be quick and much easier than if you had decided to do it yourself.

 

The Lawrange team is ready to provide both separate services necessary for registration of a legal entity in Mauritius, such as translation and notarization of documents, and complex support of the registration process. The latter option is considered to be the most optimal, because it allows to save time, finances and nerves of clients. Our team will ensure the registration of the company in Mauritius in full compliance with local legislation and international requirements, while avoiding all the pitfalls associated with this process.

 

Conclusions

Registering a business in the Republic of Mauritius is considered a favorable decision for a number of reasons. These include an attractive tax regime with a stable political environment, the possibility of developing a promising African market, and the high prestige of the jurisdiction, which has a positive effect on business in general. It is worth noting that due to almost full compliance with FATF requirements, this country is excluded from the black list of offshore jurisdictions.

 

Foreigners can register a company in Mauritius in the form of an AC (non-resident company) or Global Business Company (all international activities are taxable). It is necessary to submit a full package of documents, which, depending on the chosen legal form, may differ slightly, as well as to apply for opening a company, obtain a certificate of incorporation, open a bank account. All these and other stages will help to overcome the complex assistance of Attorney`s Association Lawrange. Our specialists have extensive experience and the necessary knowledge, thanks to which the registration of a company in the Republic of Mauritius (and other jurisdictions) will take place in full compliance with local law. Do you have additional questions? Contact us right now – we will explain everything in detail and offer a solution to any task.

 

FAQ

Can I change the name or structure of the company after incorporation, and what is the process for such a change?

Yes, it is quite realistic to take advantage of such an opportunity under the current legislation. To do so, it is necessary to submit a corresponding application to the Registry within 14 days from the date of the relevant decision. Changing the name of the company does not affect its rights and obligations.

 

How long does it take to register a company in Mauritius and open an account?

Company registration may take 14-30 days, depending on the chosen legal form of incorporation. Opening a corporate account may take from 2 to 10 days, depending on whether the bank requires additional documents.

 

What number of shareholders and directors are allowed when incorporating a company in Mauritius?

It is required to have at least 1 shareholder and 1 resident director (depending on the chosen legal form, at least 2 directors may be required), who must be natural persons. In addition, it is mandatory to have a company secretary.

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