Helpful Instructions on How to Open A Company in Mauritius

In addition to a low tax structure and a network of double taxation avoidance treaties with more than 40 nations, Mauritius offers a welcoming business environment and several advantages for international investors.

This region additionally promotes a highly educated workforce, a stable political climate, and a sophisticated financial and legal system. These qualities add to its appeal as a site for both onshore and offshore businesses to incorporate.

Why Mauritius for incorporation

An effective tax system

The tax system of Mauritius is competitive and has a 15% corporation tax rate. You won't be responsible for paying corporate tax, withholding tax, interest, royalties, or other capital gains taxes if your firm is a non-resident for tax reasons. It is managed and controlled from a location outside of Mauritius.

Strategic location

Due to its location in the Indian Ocean, Mauritius is a prime location for businesses conducting trade, investments, and tourism with Africa, Asia, and the Middle East.

Business-friendly environment

The Mauritius government has made several efforts to foster a business-friendly climate, including cutting red tape and streamlining the company formation and management procedures.

Mauritius is a good location for market-focused investors, which has inked Investment Promotion and Protection Agreements with many African member nations.

Political commitment

Investors and companies can feel safe doing business in Mauritius. The modern law system combines French civil law and common law, while civil and criminal proceedings are based on British practice. Thus, the country has consistently been ranked one of Africa’s most politically stable.

Double taxation treaties (DTAs)

Over 45 nations have double taxation agreements with Mauritius (as of February 2023). Residents of the contracting states are free from double taxation under the DTAs through tax credits, exemptions, or lower tax rates.

Reputation

With a strong regulatory framework and a dedication to avoiding money laundering and terrorism funding, Mauritius is regarded as a well-regulated and transparent financial center.

Four stages to forming a company in Mauritius

You can successfully launch a business in Mauritius by using the following steps, whether you're a local or an international investor.

Step 1: Choose a compatible business structure

The first step is selecting a company organization, such as a Global company (GBC) or an Authorized Company (AC), that best meets your needs.

Foreign businesspeople can establish a variety of enterprises in Mauritius. Make the best decision for your business by carefully weighing their qualities.

(GBC) Global Business Company

The GBC, formerly known as the Global Business Category 1 (GBC1), enables foreigners to establish a business that generates the majority of its revenue from sources outside of Mauritius while continuing to take advantage of any tax treaties and regional agreements.

A resident corporation with non-Mauritius nationals holding most shares, voting rights, or beneficial interests should apply for the GBC model.

Authorized Company (AC)

Authorized Companies (or GBC2) are frequently used for foreign trade, investment, and asset protection. An authorized company manages, controls, and conducts its operations outside Mauritius.

Overall, Authorized Companies in Mauritius offer a versatile and effective means of conducting international business while taking advantage of the nation's hospitable regulatory and tax environment.

Domestic Corporation

Domestic Companies are primarily designed for conducting business within the nation as local enterprises, unlike Authorized Companies, which hold a Financial Services Commission license for offshore activities.

Step 2: Name your company

Ensure the brand name you choose for your company conforms with the Companies Act. Online word availability checks are available without cost.

You must fill out an "Application for Reservation of a Company Name" form and deliver it to the Registrar of Companies to reserve a name.

Step 3: Register your company

Conveniently, the registration can be finished directly in the office of the Registrar of Companies or, in some circumstances, remotely by filling out a form and submitting it.

The Companies and Business Registration Integrated System (CBRIS) allows you to incorporate your business online by filling out the appropriate application form and attaching the required paperwork.

The online form (Form 1: "Application for incorporation of a company") typically contains the following information:

• Name, address of the registered office, incorporation/ registration number of the corporate body

• The business name, type, and date or proposed date of incorporation

• The full name, address, and national identification number of the applicant

• Identification of the company’s directors and secretaries

• The date or proposed date of commencement of business

• Evidence that your company is active outside Mauritius and has central management and control outside Mauritius

Step 4: Receive the Certificate of Incorporation and a Business Registration Card (BRC)

The Registrar will issue you an Electronic Certificate of Incorporation and a Business Registration Card (BRC) after receiving the required fee and confirming that you have complied with all applicable requirements (such as the Companies Act 2001).

The certificate of incorporation, which serves as official documentation of the business's existence, includes the name of the company, its registration number, and the date of incorporation.

Post-registration tips for a smooth incorporation

Open a bank account

You should apply for a business banking account when your firm is registered. Banking offshore is permitted.

The following are a few options for a trustworthy local bank: Investec Bank, Bank One Limited, HSBC Bank (Mauritius), Mauritius Commercial Bank, etc.

Comply with necessary regulations.

You must comply with annual compliance duties as a business operating in Mauritius, including tax obligations, labor rules, and other compliance needs.

By Mauritius's present legal framework, for instance, an Authorized Company must:

• Prepare a Financial Summary and submit it to the Financial Services Commission (FSC) within six months of the fiscal year's conclusion.

• Annual Income Returns should be filed with the Mauritius Revenue Authority.

• Financial records and supporting documentation may be held inside or outside Mauritius at the directors' discretion.

Certain accounts and returns for the company's operations must be forwarded back to a local location in Mauritius if the previous papers are not retained there. A warning about the location where all the accounting records are shall be given to the Registrar.

Conclusion

For many business owners, establishing a company in Mauritius can be a wise decision for various reasons. The nation's business climate is stable, its tax structure is advantageous, its workforce is well-educated and multilingual, and its infrastructure is good, including a cutting-edge telecommunications system and first-rate port facilities.