The Republic of Mauritius is an island state in East Africa. Its favorable territory is beneficial for concluding business deals and company formation.
Among the major reasons for company formation in Mauritius, we can indicate the favorable tax system and the free repatriation of profits for foreign entrepreneurs, alongside the fact that lately, the Organization for Economic Co-operation and Development (OECD) has recognized the insular state as a fully tax compliant one.
Why set up a company in Mauritius
Mauritius is the ideal business center to set up a company and do business, especially for entrepreneurs and corporates from all over the globe. Mauritius offers a lot of incentives including the following,
- Full foreign ownership
- Political and economic durability
- Investment and business-friendly territory
- A wide network of Investment Promotion and Protection Agreement
- Its a Member of various trade organizations which provides easy and favorable transactions
- Fair governance
- Cost-efficient company formation
- Skilled, qualified, and bilingual (English and French) workforce at a competitive rate
- An extensive range of banking services with the presence of international banks
- Strategic location and suitable time zone for global transactions
- Individual and Corporate Income Tax harmonized at 15%
- Free repatriation of dividends, capital, and profits
- Double Taxation Avoidance Agreements (DTAs) with countries across Africa, Europe, and Asia.
- Risk-mitigating platform
- A competent listing and capital-raising platform
The types of companies in Mauritius
A foreign investor must adapt to the local legislation when deciding to set up a company in Mauritius, however, this does not mean the choice to be made is difficult. Here are the main categories of business forms available for company registration in Mauritius and among which you can decide on in full certainty:
- Global Headquarters – The Global Headquarters Administration license has been asserted to be significant in enabling several multinationals, to strategically optimize their business by launching their regional registered offices in Mauritius.
- Global Business Company – It’s An overseas company that has its business undertakings carried out from Mauritius. A Global Business Company benefits from the network of DTAs, rendering it a cost-effective corporate medium for global tax planning.
- Authorised Company- It’s An offshore company that has its business actions and control, & management outside of Mauritius. The Authorised Company is regarded as foreign for tax purposes.
- Protected Cell Company (PCC)- A PCC is a Special Purpose Vehicle that approved the lawful division of assets held by each cell of the company. It also certifies for more protection and flexibility for global investment structuring.
- Variable Capital Company (VCC)- A VCC is a legal structure that can be employed in both traditional and alternative investment fund market ecosystems. The VCC gives more flexibility to users of fund structures that use Mauritius for their outbound investments.
- Trust- Mauritius has developed into a credible jurisdiction for establishing and operating Trusts, particularly ones used for management, conservation, and transmission of assets.
- The Private Trust Company- The Private Trust Company (PTC) is a carrier with an excellent model to preserve the assets of one’s family while exerting control as the Trustee.
- Foundation- A Mauritius Foundation is suitable to cater for succession & inheritance planning, supervision of private wealth, and asset-holding strategies.
- Funds- Fund Structures in Mauritius enable investors and investment managers to route investments into Africa and Asia, among others.
- Trading Company- Trading companies exchange goods and services from one country to the other. They can utilize the Mauritian jurisdiction to gain an advantage over competitors in other countries.
- Freeport Company- In Freeport company, Investors in Mauritius benefit from a cost-saving platform in which they also make use of the Freeport facilities, easing Trading and Shipment.
Setting up a company in Mauritius: Registration.
Both foreign companies and individuals can register and incorporate a company in Mauritius. The registration requires the services of a company formation services provider to ease the process of incorporation. No minimum capital is required, and the Mauritian laws allow for 100% foreign ownership. An applicant normally needs to provide the following data to be able to register a company in Mauritius:
- Company name
- Nature of business
- Relevant Due Diligence documents
- Date of commencement for the company
- Registered office address of business and
- Telephone number and email address.
Setting up a company in Mauritius is an immediate process, taking on average 3 business days. However, the timeline and requirements needed to register a company depend on the type of company being registered. Before establishing a company in Mauritius, you must therefore identify the suitable company type for your activities, and obtain authorization from the Financial Services Commission.
The company incorporation process of a Mauritius-based business will usually follow the steps presented below:
- trading name reservation and preparation of the incorporation documents
- opening of the corporate bank account where the share capital will be deposited
- submission of the registration file with the Companies House
- registration with the Mauritius Revenue Authority, and
- Getting the application for the necessary licenses and permits with relevant institutions.
Slowly but steadily, Mauritius is becoming a part of the business expansion strategies of companies across regions. If you too are thinking of extending your company operations abroad and have thought of Mauritius, then you might want to fast-track your plans as Mauritius is no longer just a tourist destination. In fact, setup up business in Mauritius has developed over the years into a pro-business destination.
Are you ready to set up and incorporate your company on the beautiful Island of Mauritius? if yes, contact your Damalion expert now to begin and register your company in Mauritius.
