Offshore company formation in Mauritius

April 28, 2023 - 8 min read

Mauritius, the ideal offshore jurisdiction for offshore company formation

About 20,000 offshore companies and funds have selected Mauritius as country of incorporation. A popular offshore jurisdiction for international businesses, the country offers many benefits, especially for offshore company registration:

1^st country in Africa (13^th internationally) for ease of doing business;
1^stcountry in Africa Good Governance (Ibrahim Index of African Governance – IIAG);
Compliant with all 40 recommendations from the FATF;
Business-friendly legislation and cost-effective jurisdiction;
Easy for foreigners to open a company;
Hybrid legal system (combining both the civil law and common law practices);
No obligation to pay for stamp duty or transfer shares;
Economic and political stability;
Presence of internationally recognised banks;
Fast offshore business formation at a competitive rate, with the possibility of opening an offshore bank account opening;
Easy procedures from company redomiciliation;
No exchange control;
No restrictions on trading;
Extensive network of Double Tax Avoidance Agreements and Investment Promotion Protection Agreements (IPPAs);
Privacy and security of information;
A pool of highly qualified bilingual professionals;
Convenient time zone; and
Transparent, safe and internationally compliant jurisdiction.

What is an offshore company?

In offshore company, the term “offshore” implies that a business entity is registered in a jurisdiction that differs from the place of its primary operations or ownership. Offshore companies are often used as a tool for international tax planning and wealth management, giving business owners more flexibility in their commercial operations. These companies can conduct business activities in any country, but they cannot engage in businesses in the country of their incorporation. Another advantage of this type of companies is that they can provide asset protection by separating the owner’s assets from the company’s liabilities.

An offshore company in Mauritius is a legal entity established outside of the owner’s country of residence, typically for its financial benefits and flexibility. There are two primary types of companies in Mauritius: Global Business Companies (GBC) and Authorised Companies (AC). Offshore companies in Mauritius offer several advantages including a favourable tax environment, asset protection, and access to a stable and credible business jurisdiction. As an International Financial Centre, Mauritius provides a robust regulatory framework for offshore business and is overseen by the Mauritius Revenue Authority (the tax authority) and the Financial Services Commission (FSC).

A favourable tax regime

The tax regime is a distinctive feature of the Mauritius offshore financial center, which offers several tax incentives designed to encourage foreign investment and promote the country as a hub for international business.

While the rate is unique (15%) on individual tax as well as corporate tax, there is no Withholding Tax on dividends, no Capital Gains Tax and no capital duty on issued capital. The country respects all international standards in terms of compliance (with strict Know Your Client and AML regulations), and institutions respect the confidentiality of the Mauritius company’s information and allows free repatriation of profits and capital.

One of the main features of the tax regime is the 80% partial tax exemption, which allows offshore companies to benefit from a reduced corporate income tax rate, subject to certain conditions. By retain a higher portion of their profits, it provides an enticing environment for setting up operations in the country.

Additionally, Mauritius’ vast network of Double Taxation Avoidance Agreements allows better risk management and reduced tax leakage for its foreign investors. With its combination of incentives and exemptions, in addition to its business-friendly environment, the Mauritius tax system is well-suited for offshore companies looking to optimise their tax planning strategies while operating in a stable, reputable jurisdiction.

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Requirements for registering an offshore company in Mauritius

The requirements to set up a company in an offshore jurisdiction like Mauritius will depend on the type of company structure. There are two choices: the Global Business Company and the Authorised Company. Offshore company incorporation in Mauritius can take up to one week. The registration process (formalities, procedures, and documentations) prior to the company formation are generally completed between 1 to 3 weeks.

The appointment of a registered agent for an offshore company in Mauritius required when setting up your business presence and ensuring its smooth operation in this jurisdiction. A registered agent, whihc must be a licensed management company, functions as the intermediary between the company’s shareholders and the relevant governmental authorities. They ensure that your company complies with the regulatory requirements and applicable laws within Mauritius. These may include but are not limited to, annual reporting, tax payments, and statutory filings.

Requirements vary according to the type of company. However, the setting up an offshore company in Mauritius must meet several key requirements, including having at least one shareholder and one director, appointing a company secretary, maintaining a registered office in Mauritius, and engaging a licensed management company.

Types of offshore structures in Mauritius

Establishing an offshore company in Mauritius involves several steps, including choosing the right type of company, selecting a unique company name, engaging a licensed management company, preparing and submitting necessary documents, and paying required fees. The required documents include a memorandum and articles of association, proof of identity and residence of the shareholders and directors, and details of a registered office in Mauritius. The company incorporation in Mauritius is processed and approved by the FSC.

Global Business Company

A Global Business Company (GBC) is a company involved in qualified activities, and which main business operations are carried principally from Mauritius, but with people who are resident outside of Mauritius.

A GBC is a legal entity that can either be a division of a foreign company, or a locally incorporated company. The GBC licence allows the offshore corporation to conduct business outside Mauritius while benefiting from the network of DTAAs. This type of structure is ideal for holding companies, and is subject to taxation while benefiting from the 80% partial tax exemption as stated above.

Offshore company in Mauritius - Requirements for setting up a GBC in Mauritius

A GBC is a company registered in Mauritius and licenced by the FSC, the country’s regulatory authority, is responsible for the regulation, supervision, and inspection of all financial services, other than banks. GBCs are regulated under the Companies Act 2001 and Financial Services Development Act 2001. Both regulations have set the base and transformed Mauritius as a solid and reliable International Financial Centre.

Click here for more information about the Mauritius Global Business Company.

Authorised Company

Unlike the GBC, the Authorised Company (AC) has its business activities and control & management outside of Mauritius, and is therefore considered as non-resident. As such, the AC income will not be subject to tax in Mauritius. The AC cannot benefit from the network of DTAAs that Mauritius has with various countries.

An AC shall have, at all times, a registered agent in Mauritius, which shall be a Management Company. Sunibel is duly licensed by the FSC to act as a Management Company in Mauritius, and has the experience to accompany you in all the steps till your company is incorporated.

While the financial statements of an AC do not need to be audited nor to be publicly accessible, an AC is not allowed to engage into specific activities.

Click here for more information about the Mauritius Authorised Company.

Sunibel, an international provider of business registration services

With other 15 years of existence, and composed of an experienced and qualified team of professionals, Sunibel can accompany you in establishing your offshore company in Mauritius. We form part of multinational and multidisciplinary group Probus Pleion, created in the 1980s in Switzerland. We can therefore put our network to your advantage and provide you of a comprehensive set of services to optimise your costs.

The appointment of a registered agent, namely a management company such as Sunibel, is a key element in ensuring your company’s regulatory compliance, and facilitating its overall success within the jurisdiction. Indeed, companies often grapple with intricate and ever-evolving laws and regulations, which, if not adhered to, can lead to severe financial and reputational risks. By enlisting the support of a provider of offshore company formation services, businesses can stay on top of their compliance and tax obligations while minimising their risks.

Besides ensuring compliance, a registered agent possesses valuable knowledge and experience and can provide essential advice on the formation and management throughout the lifecycle of your offshore company in Mauritius. Additionally, a registered agent can help the company maintain its reputation and positive relations with local and international stakeholders by acting as a reliable point of contact for official correspondence.

Disclaimer

This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.

Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.

Sunibel Corporate Services Ltd accepts no liability for any direct or indirect damage resulting from the use and reliance on the information published in this article.

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