SET UP YOUR BUSINESS IN
We support all worldwide
Investors & Entrepreneurs
Setting up their Business overseas
Eurofinanzza Tax Legal Law Center
Corporate Tax & Legal Consultors
Company Formation Services
Why start a company in Mauritius?
Mauritius is a politically stable island state located East of Africa. It is not just a peaceful paradise. It has an actual developed economy, ranking 20th in “Ease of Doing Business” worldwide. A skilled and bi-lingual (English & French) pool of qualified lawyers, accountants, and other professionals are at your disposal.
Mauritius acts as the main financial hub for investment into Africa. The jurisdiction is approved by the EU and white-listed by the OECD. It does not feature on any blacklist. Mauritius is a member of SADC, IOR-ARC and COMESA. Moreover, it has a growing list of Double Tax Treaties, allowing rock-solid tax planning.
As one of the few places in the world, Mauritius banks are still welcoming foreigners–especially those with a local company.
And besides the virtually non-existent corporate tax, there are no withholding tax on dividends, interest, and royalties paid outside of Mauritius. And if this is not enough, you do not have to worry about estate tax, capital gains tax inheritance, or wealth tax.
What kind of company can you set up in Mauritius?
Businessmen who wish to set-up tax efficient companies in Mauritius have two options:
- a Global Business License (GBL)
- an Authorized Company (AC)
While the second is the classic offshore company; the first is a tax resident company that can benefit from an 80% exemption of corporate income tax (resulting in an effective tax rate of 3%). Both entities are great solutions if you’re involved in international trading and holding activities.
The Global Business License (GBL)
The Global Business License is there for any activity, provided however that the ultimate purpose of the company is to make an investment or provide a product or a service outside Mauritius.
This is not a traditional offshore company. It needs two resident directors. As a result, this company is tax resident in Mauritius. It is subjected to tax and can be used to tax planning through an expanding network of tax treaties.
This company is subjected to 15% corporate tax. However, a foreign tax credit or deemed tax credit of 80% (whichever is higher) can be applied. The result is a maximum effective tax rate of 3% (subject to meeting certain conditions).
This type of company has a registered office in Mauritius and must submit Audited Financial Statements within 6 months of financial year end.
Authorised company (AC)
This type of company is in line with more traditional offshore companies such as those found in the Seychelles or the BVI. It does not require local directors. As such, it is also not tax resident in Mauritius and cannot make use of tax treaties.
This company is subject to 0% tax in Mauritius.
This type of company has a registered office in Mauritius and must submit an (unaudited) financial summary within 6 months of financial year end. And even though no tax is payable in Mauritius, i still needs to file a tax return with the authorities.
Authorised Companies Characteristics
– It is a non-citizen, not being a banking institution, which holds the majority of its shares or voting rights or legal, beneficial interests; and
– Its principal place of effective management is situated outside Mauritius.
– Authorised Companies suitable (but not limit) for:
- Non-Financial Consultancy
- IT Services
- Ship Management
- Trading (Non-Financial)
- Passive Investment Holding
- One off transaction using a Special Purpose Vehicle
Stated Share Capital
There is no limit to the number or value of shares that can be issued.
Classes of Shares Permitted
Registered shares, preference shares, redeemable shares and shares with or without voting rights.
An authorised Company does not pay any tax on its world-wide profits to the Republic of Mauritius authorities.
US$ 375 per year to FSC.
US$ 125 per year to the Registrar of Companies.
Financial Statement Requirements
Authorised Companies are required to maintain financial statements to reflect their financial position with the Registered Agent but are not required to file accounts with the authorities.
Minimum one, who may be natural person or a body corporate.
The minimum number of shareholders is one.
Taxes on Corporate Income
Corporations are liable to income tax on their net income, currently at a flat rate of 15%. Companies engaged in the export of goods are liable to be taxed at the rate of 3% on the chargeable income attributable to that export based on a prescribed formula.
Mauritius has a credit system of taxation whereby foreign tax credit is given on any foreign-source income declared in Mauritius on which foreign tax of similar character to Mauritian tax has been imposed.
All corporate bodies incorporated in Mauritius (except companies holding a Category 2 Global Business License ‘Authorised Companies’ and certain approved funds and associations) are subject to income tax. This applies to all associations and other registered bodies. Income derived by local partnerships is shared and taxed in the hands of the partners.
Foreign corporations carrying on business, or having a place of business, in Mauritius are also liable to income tax on income derived from Mauritius.
Where to Bank?
Opening a corporate bank account is still possible here for foreign investors. This rings especially true if they own a local company. Having your bank and company in the same jurisdiction also prevents the more exotic structures of having the entity and bank account on opposite sides of the world.
Once you have explained us your business model, we can tell you more about the perfect banking solution for you.
Start your Business Project now!
Contact us Now!
One of our Business Development Managers will promptly answer your enquiry!
There is dedicated team in our Head Office available to deal with your enquiries regarding any of our five offices. We aim to respond to all enquiries within 24 hours.
Whether you are an existing client or interested in Eurofinanzza services, we would be happy to hear from you via any of our available communication networks: telephone, email, live chat, and enquiry form.
We look forward to hearing from you!
(*) Required fields