Mauritius Company Formation

Mauritius Company Formation Overview

The Republic of Mauritius has become one of the richest countries in Africa. Tourism, trade, information technology, and the financial sector are well developed here. This was facilitated by the signing of a number of agreements and accession to the WTO, COMESA, the Southern African Customs Union (SACU), and the Organization of African Unity (OAU). More than 50 agreements on the avoidance of double taxation have been concluded. In confirmation of the reliability of the jurisdiction, the country’s legislation has been developed taking into account the requirements of the FATF and the EU.

The geographical location has had a positive impact on Mauritius’ economy and turned it into an international logistics center for trade between Africa and Asia. The state is also effectively developing export-import ties with China and the US.

The economic strategy chosen by the authorities, the simplicity of company registration, optimal tax incentives for offshore businesses, and the opportunity to develop international business ties have stimulated a significant inflow of capital into this jurisdiction. Company registration in Mauritius is carried out by the Companies and Business Registration Department (CBRD) of the Ministry of Finance under the Companies Act 2001 and the Business Registration Act 2002.

Once registered, a company enjoys a number of advantages, including zero capital gains tax, optimal corporate tax, no currency controls, and guaranteed data confidentiality.

Advantages of Company Registration in Mauritius

Requirements for opening a formation in Mauritius

When forming a company, the Mauritian regulator ensures compliance with the Companies Act 2001, the Business Registration Act 2002, and the Financial Services Act 2007, while the Financial Services Commission (FSC) verifies the documents.

Mauritius Business Setup opens up wide opportunities for the development of entrepreneurial activity, but certain requirements must be met:

Choose a business organizational structure.

The law allows for various types of structures, such as international commercial companies (GBC), authorized companies (AC), trusts, foundations, trading companies, limited liability companies (LLC), etc.

Responsibilities of management and owners.

The director must adhere to the principles of good business practice and have the qualifications necessary to manage the company. Passports and proof of residence of the director and owner of the company must be provided when registering the company. At least one shareholder is required.

Business plan.

Description of the company’s development strategy, indicating areas of activity that will generate profit in the future.

Apostille and legalization of documents.

Documents from other jurisdictions must be legalized in accordance with Mauritian law.

Local office.

The company must have a local legal address where internal documentation will be stored and correspondence sent. Contact details, such as telephone numbers and email addresses, must also be provided.

Process for Opening a Company in Mauritius

This jurisdiction has developed a simple and quick mechanism for registering a business in just a few days. Beginning entrepreneurs must follow the instructions set out in the Guide to Registering Companies and Enterprises:

Documents required to register a company in Mauritius

The Companies Act 2001 and the CBRD website state that the following list of documents must be provided for Mauritius Offshore Company Setup:

Types of companies in Mauritius

Mauritius offers businesses a wide range of organizational structures. The law allows for 100% foreign ownership. Depending on your future activities and business direction, you can choose the best option:

• Limited liability company (LLC)

LLC — suitable for small businesses, owners are not personally liable in the event of the company’s liquidation. Requirements include: one resident manager, one owner, authorized capital, the company must provide jobs to residents. Corporate tax is 15%, capital gains tax is 0%.

• Company shares with size restrictions (CLS).

Select an investor willing to take responsibility for the number of shares issued. Requirements include one director and one managing director (no residency requirements). The business grows by issuing shares and raising additional capital.

• Companies with limited guarantee (CLG)

There are no shareholders, and guarantors undertake to contribute a certain amount of money in the event of the company’s liquidation. This form of activity is more common among non-profit organizations and charitable foundations.

• Limited liability partnership (LLP)

Each partner is liable in proportion to their contribution. 100% foreign ownership is also permitted. This is particularly common in real estate investments. Obtaining a license opens up access to the global market.

• Trusts, funds

Mauritius attracts many private funds and trust companies thanks to its legislation and tax system. This jurisdiction is often chosen to ensure data confidentiality and asset protection.

• Trading companies

For those whose main activity is related to international trade, there are tax incentives for organizations exporting goods to Africa.

Mauritius Companies Legislation

The main laws governing the registration and subsequent operation of a business include:

Taxation in Mauritius

Mauritius attracts business with its tax rates:

• Corporate tax is 15%, but companies engaged in export processing, e-commerce, and intellectual property are exempt from tax for up to 5–10 years.
• VAT is 15%.
• No tax on dividends, royalties, capital gains, or real estate

Non-residents pay taxes on income earned in this jurisdiction. Fees are paid quarterly. Companies are also audited and submit financial statements to the FSC.

FAQ about a Company formation in Mauritius