Mauritius Company Formation
Benefits of a Mauritius International Company Formation
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Main Gateway to Africa and Asia with convenient timezone
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Fast incorporation process
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AC company exempted from taxation
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Strong privacy provisions for companies
from £2,895.00
Why Set Up a Mauritius Company?
As an offshore financial services centre, Mauritius is a perfect choice for anyone who wants to operate globally. This island nation has developed a strong financial industry comprising international and local banks, management companies, insurance companies, auditing and law firms, etc.
Cost-Effective and Efficient Financial Centre
It should be noted that the fees for professional services in Mauritius remain substantially lower than those in European financial centres. In addition, Mauritius business registration is fast and cost-effective.
The Registrar of Companies in Mauritius is proven to be efficient and service-oriented. The incorporation of a Mauritius company takes only 1-2 days after submission of the incorporation to the Registrar of Companies.
Gateway to Africa
Mauritius is the perfect jurisdiction for those looking to invest in Africa. The island nation has the largest network of double taxation avoidance treaties with African countries. Global Business Companies (GBCs) can benefit from the double taxation treaties as tax residents of Mauritius. A GBC can be used as a holding company in Mauritius.
Alternatively, it can also be used as a trading company. The lowest tax rate in the region and numerous tax exemptions make Mauritius the preferred financial centre for investing or operating in the African region.
Mauritius can offer up-to-date trust arrangements with asset protection provisions. This allows for the creation of trusts in Mauritius to protect family assets. Mauritius trust law permits the establishment of discretionary, purpose and charitable trusts to meet the needs of the settlor and beneficiaries. The cost of setting up a trust in Mauritius is also lower than in the Cayman Islands or the Channel Islands.
Glenmuir Trust can assist with Mauritius offshore company formation. Additional services such as professional nominee directors and nominee shareholders are also available.
Global Business Company (GBC)
The Global Business Company (GBC) is a company incorporated in Mauritius that has applied for a Global Business License (GBL) issued by the Mauritius FSC.
The main advantage of this type of company is that it is deemed to be a tax resident of Mauritius and can therefore benefit from the wide network of double taxation avoidance agreements in Mauritius. The GBC company can apply for a Tax Residence Certificate from the Mauritius Revenue Authority.
The corporate tax rate applicable to a GBC company is 15%. However, a partial income exemption of 80% may apply for specific types of income, reducing the effective tax rate to 3%.
Moreover, a GBC may claim a tax refund for taxes levied on the source if higher than 15%. This can lower the effective tax rate to 0%.
The GBC should have the majority of the directors based in Mauritius.
Authorised Company (AC)
The Authorised Company (AC) is a standard offshore vehicle with limited liability. An AC is not deemed to be a tax resident of Mauritius, its principal place of management and place of business is located outside the island.
AC companies are tax-exempt in Mauritius and do not pay any taxes, but also do not benefit from the Mauritius double taxation treaties.
Authorised Companies in Mauritius are mainly used as investment vehicles, international trading companies or for asset holding.
The AC company cannot claim tax residency in Mauritius and its directors and shareholders shall reside outside of Mauritius.
For more information on Mauritius Authorised Company formation, please contact Glenmuir Trust for a free consultation.
Taxation of Mauritius Company
The tax system in Mauritius is based on the concept of residency. A company is deemed to be a tax resident of Mauritius if it is incorporated in Mauritius or its management and control are exercised from Mauritius.
Taxation of Global Business Companies
The standard flat corporate tax rate is 15%. This rate applies to Global Business Companies (GBCs), trusts and partnerships that are tax residents in Mauritius. To be a tax resident of Mauritius, the company’s main bank account must be held and its central management and control located in Mauritius.
Taxation of Authorised Companies
The Authorised Company is a separate type of company and is not a tax resident of Mauritius. It is regulated by a special regime and is therefore not subject to any taxation in Mauritius. As with the standard IBC, this type of company is not allowed to carry out any business activities in Mauritius.
Dividends paid by a Mauritian company are exempt from tax. A tax credit can be claimed for the underlying tax and withholding tax on foreign dividends.
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No capital gains tax is applicable in Mauritius.
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The value-added tax rate in Mauritius is 15%, with a reduced tax rate of 0%.
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The official currency of Mauritius is the Mauritian Rupee (MUR).
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There are no currency exchange controls in Mauritius.
Corporate Legislation in Mauritius
Mauritius has a hybrid legal system resulting from a combination of both French civil and English common law. The basis of Mauritian legislation is drawn from the French civil code. After Mauritius became a British colony, certain parts of English law were implemented. It should be noted that Mauritius company formation and administration are regulated exclusively by English law.
Offshore legislation, as in other offshore financial centres, is based exclusively on common law statutes. The latest Companies Act, 2001, is largely based on New Zealand’s Companies Act. The offshore trust concept, which allows non-residents to set up a trust in Mauritius, has also been introduced by statute since 1992.
During the past 30 years, Mauritius has established a strong reputation as a leading financial centre in the African region due to its stability and modern offshore legislation.
Mauritius trust legislation provides asset protection provisions to protect trust property. To benefit from this legislation, the terms of the trust must specify Mauritian law as the governing law of the trust.
The Company Registration in Mauritius Package Includes the Following Company Documents:
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Certificate of Incorporation issued by the Mauritius Registrar of Companies
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Memorandum of Association stamped by the Mauritius Registrar of Companies
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Articles of Association stamped by the Mauritius Registrar of Companies
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Resolution of appointment of first directors
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Register of directors
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Register of shareholders
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Minutes of first meeting of directors
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Share Certificate for each shareholder
** Payment Plan Also Available For New Incorporations
