← All jurisdictions

Company formation:
Mauritius

Mauritius, located in the Indian Ocean, is not only a picturesque island nation but also a dynamic business hub with a thriving economy.

Mauritius

Company incorporation in Mauritius

The Republic of Mauritius is renowned for its stable economy, robust infrastructure, and investor-friendly policies. Strategically situated, it serves as a bridge between Africa and Asia, drawing entrepreneurs from across the globe. Its favorable tax system and diverse, multilingual workforce have earned it a reputation as a go-to destination for international business ventures and offshore activities.

Country Mauritius
Language Mauritian Creole (86.5%)
Bhojpuri (5.3%)
French (4.1%)
English (official, spoken by less than 1%)
Other languages (4.1%)
Time in Mauritius GMT +4
Population Approximately 1.27 million (Source: World Bank, 2021)
Currency Mauritian Rupee (₨, MUR)
Religion Hinduism 52% identifying as Hindu
Christians 28%
16.6% Muslim
Tax regime 15%
VAT 15%
Overage salary 559,000 MUR yearly (2022)
Types of incorporations Domestic Company (DC)
Global Business Company (GBC)
Global Business Company 2 (GBC 2)
Authorised Company (AS)
Limited Liability Company (LLC)
Limited Partnership (LP)
Limited Liability Partnership (LP)
Protected Cell Company (PCC)
Variable Capital Company (VCC)
Private Trust Company (PTC)
Mauritius Foundation
Sole Proprietorship

Why opening a company in Mauritius?

Mauritius offers a conducive business environment with its straightforward regulatory system and a range of fiscal incentives. The local government actively encourages foreign investments, making it a prime choice for entrepreneurs looking for tax optimization and a strategic geographical location. The fiscal benefits are particularly appealing to service-oriented businesses and those looking to establish holding companies.

Advantages

Incorporating a company in Mauritius offers a myriad of benefits. Mauritius is known for its robust and business-friendly infrastructure, favorable taxation system, and a government that actively supports foreign investment. This has made it a preferred location for many international businesses. Not only does Mauritius offer a sound business environment, but its strategic location serves as a bridge to both Asian and African markets. Let’s dive into some of the key advantages of setting up a company in this island nation:

Advantages Details
Strategic Location Serves as a gateway to both African and Asian markets.
Favorable Tax System Competitive tax rates and double taxation treaties with numerous countries.
Skilled Workforce Access to a multilingual, educated workforce well-versed in international business norms.
Political Stability A stable political environment with a government that promotes business-friendly policies.
Robust Infrastructure Modern amenities and infrastructure that meet international standards, making business operations seamless.
Financial Hub A growing financial sector with efficient banking and financial services.

Disadvantages

While Mauritius offers numerous benefits for businesses, there are also challenges to consider when incorporating a company there. It’s crucial to weigh these challenges against the advantages to make an informed decision. Here are some of the potential downsides of setting up a business in Mauritius:

Disadvantages Details
Small Domestic Market With a limited population, the local market size might not be substantial for certain businesses.
Dependency on Imports High reliance on imported goods can influence operational costs.
Limited Natural Resources With scarce natural resources, there’s a dependence on imports, affecting certain industries.
Geographical Isolation Despite its strategic location, Mauritius is still geographically distant from major continents, which might impact logistics and transportation costs.

Most popular sectors to set up a company in Mauritius

The financial sector, tourism, real estate, and agri-business are some of the most popular sectors in Mauritius. The island’s reputation as a financial hub, combined with its scenic beauty, makes both financial services and tourism lucrative sectors. Real estate, especially luxury properties, has seen a surge due to foreign investment. Additionally, Mauritius has a rich tradition of sugarcane farming, making agri-business a viable sector.

Fiscal system in Mauritius

Mauritius boasts a transparent and efficient fiscal system, characterized by moderate tax rates, no capital gains tax, and absence of withholding taxes on dividends, interest, and royalties. The network of Double Taxation Agreements (DTAs) further enhances its appeal as a business destination.

Taxes

The tax system in Mauritius is straightforward and business-friendly. Companies, both local and global business entities, are taxed at a flat rate of 15%. However, through the application of tax credits, the effective rate can be reduced, sometimes even to zero. Income derived outside Mauritius can be exempted from taxation, making Mauritius a favorable location for holding companies. There’s no capital gains tax, no inheritance tax, and no stamp duty on share transfers. Furthermore, dividends, interest, and royalties are not subject to withholding tax.

VAT in Mauritius

The standard Value Added Tax (VAT) rate in Mauritius is 15%. It’s levied on goods and services at every stage of the production and distribution process. However, some goods and services are zero-rated or exempted, providing relief to businesses and consumers.

CFC Rules

Mauritius did not have specific Controlled Foreign Company (CFC) rules.

Requirement

Local director

A company in Mauritius is not necessarily required to appoint a director who is a resident or citizen of Mauritius. However, for certain tax benefits, a resident director might be necessary.

Local secretary

There’s no strict requirement for companies in Mauritius to appoint a secretary who is a resident or citizen.

Annual return

Companies in Mauritius must file an annual return, detailing their financial performance and other pertinent details, to ensure compliance with local regulations.

Audited accounts

Larger companies, especially those dealing with foreign clients and investments, need to have their accounts audited. This ensures transparency and adherence to international financial standards.

Company types in Mauritius

Domestic Company (DC)

Type Designations Minimum Share Capital Taxes
Domestic Company Ltd
Limited
No minimum required 15% Corporate Tax

The incorporation and operation of a Domestic Company (DC) in Mauritius is largely governed by the Companies Act of 2001. Unlike the other classifications of companies available in this jurisdiction, DCs generally cater to the local market, providing goods and services primarily within the country. Although there are no restrictions on foreign ownership of a DC, it is fundamentally Mauritian in its scope of operations.

While there is no stipulated minimum share capital for establishing a DC, the financial practice within the company should abide by the prudential norms stipulated by the Financial Services Commission. Furthermore, taxation plays a pivotal role in the financial management of a DC. Subject to a corporate tax rate of 15%, these entities also gain access to the benefits accorded through the network of Double Taxation Avoidance Agreements (DTAAs) that Mauritius has with numerous countries. It enables both local and foreign investors to optimize their tax efficiency whilst ensuring compliance with local and international taxation laws.

Global Business Company (GBC)

Type Designations Minimum Share Capital Taxes
Global Business Company GBC USD 1 15% Corporate Tax (Tax credits may apply)

Global Business Company (GBC) category underpins Mauritius as a recognized jurisdiction for global business endeavors. GBCs, while incorporated in Mauritius, typically conduct their business activities primarily outside of the national borders. A notable feature of GBCs is their wide utilization by international investors to optimize global tax efficiency by leveraging the extensive treaty network that Mauritius has established with several countries.

The GBC framework is formulated to be robust yet flexible, to cater to the varied requirements of international businesses and investors. With a modest prerequisite of a minimum share capital of USD 1, it allows entities of various financial scales to establish their operations under this structure. It is pivotal to note that while GBCs are subject to a standard corporate tax rate of 15%, they are potentially eligible for foreign tax credits, which can notably alleviate the effective tax rate.

Global Business Company 2 (GBC 2)

Type Designations Minimum Share Capital Taxes
Global Business Company 2 GBC 2 None Exempt

The Global Business Company 2 (GBC 2) is a type of entity which, for a period, was a preferred vehicle for international business and investment due to its tax-neutral status in Mauritius. Historically, GBC 2 entities were instrumental for entrepreneurs and entities looking to facilitate international trade, hold global assets, and manage wealth in a tax-efficient manner without being subjected to the local corporate tax regime.

It is vital to acknowledge that as of 1 January 2019, the GBC 2 classification was abolished following amendments to the Financial Services Act and the Income Tax Act in alignment with the OECD’s Base Erosion and Profit Shifting (BEPS) guidelines and EU tax principles. Existing GBC 2 companies were grandfathered until 30 June 2021, after which they were either dissolved or transitioned into a different company classification.

Authorised Company (AC)

Type Designations Minimum Share Capital Taxes
Authorised Company (AC) AS No minimum required Exempt

In the financially bustling environment of Mauritius, the Authorised Company (AC) has come to establish itself as a popular model among foreign investors and businesses. With no minimum share capital requirement and tax exemption benefits, it provides a welcoming environment for a wide array of global ventures.

The Authorised Company is largely designed to cater to businesses that have the bulk of their dealings and management outside of Mauritius, thereby facilitating international business and trade. This corporate structure offers a robust and reliable framework for investors looking for a simplified setup with minimal statutory obligations. The legislative schema surrounding Authorised Companies is particularly navigated toward reducing bureaucratic impedance and enabling smoother operational pathways for businesses.

The AC, which is commonly indicated by appending “AS” to the company name, delineates a structure that isn’t subject to the same rigid or strenuous regulatory compliance often encountered in other jurisdictions. It becomes particularly attractive for companies that aim to manage costs effectively whilst harnessing the benefits of an international business presence. In light of the aforementioned aspects, businesses under the Authorised Company model in Mauritius have consistently demonstrated a strong propensity for global outreach and international trade and commerce engagements.

Limited Liability Company (LLC)

Type Designations Minimum Share Capital Taxes
Limited Liability Company (LLC) LLC 1 Mauritian Rupee 15%

The Limited Liability Company (LLC), notably marked with “LLC” post the entity’s name, stands out as a distinct incorporation type in Mauritius, known for striking a balance between flexibility and legal protection. With a minimum share capital requirement of just one Mauritian Rupee, it makes a lucid entry point for both nascent enterprises and stable entities looking to diversify their operations.

One of the most significant attributes of an LLC is the legal protection it offers to its members. The financial liability of the shareholders is constrained to their investment in the company, safeguarding personal assets from the company’s financial obligations. Such a structure proves beneficial in mitigating financial risks involved, thereby providing a secure platform especially conducive for small to medium-sized enterprises (SMEs).

The tax bracket for LLCs in Mauritius is pegged at 15%, a competitive rate in comparison to global standards. This tax structure seeks to establish a just equilibrium, ensuring that companies contribute to the nation’s economy while not being overburdened financially. The LLC in Mauritius, therefore, epitomizes a business-friendly atmosphere, conjoining ease of management and financial prudence with a secure and sturdy legal structure, thus making it an appealing option for a myriad of businesses and investors, both local and international alike.

Limited Partnership (LP)

Type Designations Minimum Share Capital Taxes
Limited Partnership (LP) LP None specified Subject to local tax regulations

The Limited Partnership (LP) in Mauritius provides a remarkable platform for investors and businesses, bridging the traditional advantages of limited liability and the flexibility inherent in partnerships. Notoriously regarded as a fusion of characteristics present in corporations and partnerships, LPs have steadily become a staple in the investment sector, notably in the realm of private equity.

In a Mauritius LP, partners can be segregated into two primary categories: general and limited partners. General partners customarily bear unlimited liability and are often engrossed in the management of the partnership. Contrariwise, limited partners usually have their liability restricted to their investment and customarily abstain from engaging in management activities, offering a safeguard against potential business liabilities.

Taxation in Mauritius provides a nuanced approach where the fiscal burden is, to an extent, shaped by the specific arrangements and operations of the entity. Thus, comprehensive and meticulous planning is requisite to navigate through the taxation landscape, ensuring adherence to all pertinent regulations and optimal utilization of available concessions and treaties.

Limited Liability Partnership (LLP)

Type Designations Minimum Share Capital Taxes
Limited Liability Partnership (LLP) LLP None specified Subject to local tax regulations

It is notable that there appears to be a typographical error in the provided constants, as both types of companies are denoted as “LLP”. Presuming that the second type intended was the Limited Liability Partnership (LLP), our exposition pivots toward this entity type. The LLP in Mauritius blends the structural flexibility of a partnership with the liability shield generally attributed to corporations, engendering a hybrid entity adept at catering to numerous business models and industries.

Similar to the LP, an LLP allows partners to reap the benefits of limited liability while enabling the employment of strategic management and operational practices commonly found in partnerships. However, LLPs introduce a distinct edge, namely, all partners bask in the benefit of limited liability, whilst maintaining the capability to involve themselves in the management of the business, absent the risk of negating their protected liability status.

The tax framework in Mauritius presents an opportunity for businesses to judiciously leverage various aspects to their advantage, providing they are in strict compliance with local and international tax laws and guidelines. The country’s reputation as a stable, regulated, and transparent jurisdiction further enhances its appeal, offering a conducive and robust environment for businesses to thrive amidst the dynamically evolving global financial landscape.

Protected Cell Company (PCC)

Type Designations Minimum Share Capital Taxes
Protected Cell Company (PCC) PCC Ltd or PCC Limited
PCC Plc or PCC PLC
USD 10,000 3% Global Business License Tax

The Protected Cell Company (PCC) has, over the past decade, burgeoned as a remarkable and innovative structure within Mauritius’s financial landscape. This corporate structure, especially lauded within the insurance and collective investment scheme sectors, features a unique architecture which segregates and protects the assets and liabilities of different cells within the same company.

The core principle emanating from the PCC framework is the legal segregation of assets and liabilities between different cells, while still operating under a singular corporate entity. That is to say, the debts of one cell would not impact the assets of another, providing an isolated financial ecosystem which safeguards investments and mitigates risks.

This nuanced structure not only facilitates risk management and aids in asset protection but also serves as a multifaceted platform, endorsing a spectrum of investment activities and financial services. Consequently, investors and entities can meticulously structure their investments and manage risks within a singular yet compartmentalized corporate entity.

Variable Capital Company (VCC)

Type Designations Minimum Share Capital Taxes
Variable Capital Company (VCC) VCC Ltd or VCC Limited
VCC Plc or VCC PLC
No minimum requirement 15% Corporate Tax (credits may be available)

Embarking on a journey through the Variable Capital Company (VCC) regulatory framework unfolds a tapestry of flexibility and potent financial management capabilities, particularly esteemed within the sphere of fund management in Mauritius. The VCC is a corporate structure that is tailored to accommodate the specific needs and dynamics of investment funds, providing them with an agile and fluid mechanism to manage their capital.

The cornerstone of the VCC lies in its ability to vary its share capital with ease, aligning seamlessly with the intrinsic ebb and flow of fund management operations. Investors can redeem and issue shares at their net asset value, without the arduous necessity of adhering to a fixed capital constraint, thus ensuring an agile and responsive capital management framework that coherently resonates with the fluctuating market dynamics and investment strategies.

Moreover, the VCC structure enables funds to establish multiple sub-funds under a singular corporate umbrella, each operating independently and insulated from the fiscal vicissitudes of its counterparts. This allows for a diversified investment approach under a unified governance structure, optimizing operational efficiency and ensuring robust regulatory compliance across a myriad of investment ventures.

Private Trust Company (PTC)

Type Designations Minimum Share Capital Taxes
Private Trust Company (PTC) Ltd, Limited USD 1 Flat rate of 15%

The inception of a Private Trust Company (PTC) in Mauritius serves as an adept mechanism to manage and dictate the affairs of a specific trust or a cohort of trusts, essentially instituted for the affluent families or conglomerates. Within the Mauritian legal framework, the PTC operates under the aegis of the Financial Services Commission and it’s not proffered to the general public.

This financial architecture has surged in popularity owing to its flexibility and the capacity to cater to the distinct, often sophisticated, needs of high-net-worth individuals and families. Notably, a PTC is particularly useful when it comes to ensuring privacy, bespoke financial structuring, and facilitating an enhanced degree of control over the management and disposition of trust assets.

Whilst enhancing the exercise of control, the PTC framework simultaneously protects assets, effectively plans for succession, and robustly addresses a plethora of estate management conundrums, thereby intertwining financial efficacy with strategic familial or corporate planning.

Mauritius Foundation

Type Designations Minimum Share Capital Taxes
Mauritius Foundation (no specific designation) USD 1 Exempted if meeting criteria

The Mauritius Foundation, as a concept, infuses the Mauritian legal landscape with a vehicle that’s tantamount to a hybrid, amalgamating the characteristics intrinsic to both trusts and companies. Consequently, it has emerged as an entity that affords donors a consummate level of control over their assets, whilst simultaneously establishing a legal separation between the personal assets of the founder and the assets settled in the foundation.

Prevailing under the Foundations Act of 2012, the Mauritius Foundation enables asset management, succession planning, and wealth protection with an additional layer of legal and fiscal benefits. It functions as an independent entity, possessing its own legal personality and, therefore, has the capacity to hold assets, sue, and be sued in its own name.

A myriad of factors, including but not limited to, its ability to delineate the roles of beneficiaries and council members distinctly, its inherent confidentiality provisions, and its aptitude to endure perpetually, coalesce to render the Mauritius Foundation an astute choice for those who seek to amalgamate control, protection, and future planning in a solitary financial vehicle.

Sole Proprietorship

Type Designations Minimum Share Capital Taxes
Sole Proprietorship N/A None 15% (Income Tax Rate)

The allure of establishing a Sole Proprietorship in Mauritius primarily stems from its simplicity and minimal regulatory impositions. As a business structure, it is wholly owned by a single individual, offering ease of setup but coming with the pivotal point of unlimited liability. This implies that the personal assets of the proprietor may be used to mitigate business debts and liabilities, intertwining personal and business financial realms.

Financial accessibility is a significant attraction for adopting this model. There is no mandatory stipulation for a minimum share capital, making it financially accessible and thereby an appealing choice for small entrepreneurs, freelancers, and artisans. The simplicity extends to taxation as well, with a flat 15% income tax rate applied and profits being directly attributed to the proprietor’s personal income.

However, while the simplicity in formation and taxation provides an accessible pathway into business, the unlimited liability aspect necessitates cautious financial planning and risk assessment from the entrepreneur. Balancing the tangible benefits with the inherent financial risks, proprietors must strategically navigate through the entrepreneurial landscape, perhaps considering safeguards such as insurance and an emergency financial buffer.

Common questions

What distinct attributes make Mauritius an attractive destination for company incorporation?


Mauritius, often termed the ‘Star of the Indian Ocean,’ is not just a tropical paradise but also a dynamic business hub. The island’s attractiveness stems from a fusion of multiple factors: a stable political landscape rooted in parliamentary democracy, an efficient legal system modeled after both British and French laws, and a pro-business climate nurtured by progressive policies. The Mauritius Board of Investment continuously innovates to attract foreign investors. Add to this, its strategic geographic placement, bridging Asia with Africa, and you have a compelling proposition for global investors looking for optimal business positioning.

Does Mauritius offer tangible benefits for overseas investors?


Indeed, the investor-friendly aura of Mauritius is not just superficial; it’s backed by tangible fiscal benefits. Overseas investors stand to gain from an absence of capital gains tax and inheritance tax on shares, ensuring that their investments grow without undue leakages. This is augmented by a non-existent withholding tax on outbound flows like interest, dividends, and royalties. Importantly, the island nation’s double taxation avoidance treaties with over 40 countries, including the major economies of Asia and Africa, mean that cross-border transactions aren’t weighed down by repetitive tax liabilities.

How robust and agile is Mauritius' regulatory landscape?


Mauritius takes pride in its modern regulatory infrastructure, aligning with international best practices. The Financial Services Commission (FSC) is the stalwart guardian of the non-banking financial realm in Mauritius. Their rigorous yet progressive regulations are a testament to the country’s commitment to uphold the highest standards of corporate governance, transparency, and investor protection. This agile regulatory landscape allows Mauritius to respond promptly to global economic shifts, ensuring its continual relevance in the world of international finance.

What's the expected timeframe for setting up a company in Mauritius?


While Mauritius boasts an efficient and streamlined company registration process, the precise time frame hinges on the nature of the company and the thoroughness of the documentation. A Global Business Company, often the preferred choice for international business operations, typically sees its incorporation process wrapped up within 2-3 working days post the submission of the requisite paperwork. However, for more complex structures or if there are any documentation discrepancies, it might take a tad longer.

Do companies in Mauritius have any local obligations in terms of directorship or addresses?


Yes, to ensure that businesses have genuine economic linkages with the country, Mauritius mandates Global Business Companies to have at least one director with official residence status in Mauritius. This regulation ensures substantial activities have a tangible presence in the country. Additionally, the company’s official correspondence address, or its registered office, must be within the Mauritian jurisdiction, which often aids in streamlining administrative and legal formalities.

Could you shed light on the annual compliance rituals for Mauritian companies?


Maintaining transparency and accountability is paramount for any company operating out of Mauritius. Companies are entrusted with the responsibility of diligently maintaining their financial records. Every year, these records undergo scrutiny by licensed auditors in Mauritius to ensure financial integrity. Following this, companies need to furnish their audited financial statements along with their annual returns. Certain business activities might also necessitate additional regulatory reporting, ensuring a holistic overview of the company’s operations.

What makes Mauritius a preferred destination for company incorporation?


Mauritius offers a combination of political stability, a pro-business environment, competitive tax rates, and a network of international treaties and agreements. Additionally, its strategic location between Asia and Africa makes it an ideal gateway for investments into these continents.

Are there any benefits for foreign investors in Mauritius?


Absolutely. Foreign investors can benefit from no capital gains tax, no inheritance tax on shares, no withholding tax on interest, royalties, and dividends, and the absence of exchange control. Also, Mauritius has signed double taxation avoidance treaties with numerous countries, providing potential tax advantages for cross-border investments.

Is there a requirement for a company to have a local director or a local address in Mauritius?


For Global Business Companies, at least one director who is a resident of Mauritius is required. Moreover, the company must have a registered office in Mauritius. This ensures that substantial activities are carried out in Mauritius, aligning with international tax standards.

What are the annual compliance requirements for companies in Mauritius?


Companies are required to maintain proper records and submit annual returns. Financial statements must be audited by a licensed auditor in Mauritius. Depending on the business activities, there might be additional regulatory reports and filings.

Solutions and prices

Ask for consulting

Request a consultation today.

You will be contacted by our team as soon as possible.

    I consent to the processing of my personal data in accordance with Legislative Decree 196/2003. *