Thanks to its policies, Mauritius has built itself a solid status as a secure and valid investment hub.
Mauritius has established itself as a prominent jurisdiction to set up companies. This is primarily because the Mauritius Government actively encourages foreign investment and has introduced a vast range of incentives to attract foreign investment. There is also a stable political and financial environment in the country in addition to business-friendly policies.
Registering a company in Mauritius provides substantial confidentiality for the owners as company registers are not available for public assessment. International clients are also allowed to set up funds, fund management companies, investment dealer companies, or insurance brokers.
Lastly, establishing a company and starting a business activity in Mauritius is a simple process.
Types of companies in Mauritius
Before setting up a company in Mauritius company, it’s important to first understand the several forms of business entities available in Mauritius.
Each business entity in Mauritius is established according to its structure, category, nature, and type. It is important to have substantial knowledge of the type of company in which you are ready to invest in Mauritius. Also, a company incorporated in Mauritius can be fully owned by foreigners without minimum capital.
Some of the business entities available in Mauritius are the following:
- Global business company (GBC): this is a company that has its business operations carried out from Mauritius, GBC benefits from the network of DTAs, which makes it a cost-effective corporate medium for international tax planning. A GBC is licensed by the Financial Services Commission (FSC) and is governed under the Companies Act 2001 and Financial Services Development Act 2001.
- Mauritius authorized company (MAC): this is recommended for conducting business activities such as international trade, intellectual property ownership, and investment holding. A MAC is regulated under the Financial Services Act 2007.
- Mauritius limited liability company (LLC): this vehicle is recommended for entrepreneurs looking to set up a local business in Mauritius and carry out business activities with the locals.
- Authorized company: this is a company that has its business activities and control & management outside of Mauritius. The business entity is considered foreign for tax purposes.
Other types of business entities include Mauritius free zone companies, sole proprietorships, partnerships and foreign branches.
How to register and do business in Mauritius
Foreign companies and individuals can register and incorporate a company in Mauritius. The incorporation and registration of a company in Mauritius are regulated by the provisions of the Companies Act 2001 and those of the Business Registration Act 2002. An entrepreneur looking to register a company in Mauritius usually requires the following to be able to register a company in Mauritius:
- Company name
- Applicable due diligence documents
- Date of commencement for the company
- Registered office address
- Telephone number and email address, and
- Information of the shareholders.
Process involved in setting up a company in Mauritius
Making a business plan: entrepreneurs looking to start a business in Mauritius must make a formal business plan. This is fulfilled to attract investors so that they can get a fundamental idea of what the business is all about.
- Choose an appropriate business entity: before selecting the type of company to establish, you should check on the benefits available to it. Commonly, you can choose to be a sole proprietorship, LLC, or co-operative society.
- Choosing your business location: choosing a location is a crucial task for entrepreneurs looking to set up a company in Mauritius. Several options are available to entrepreneurs and investors in the choice of their business locations. It is advised to take help before concluding on a location.
- Registering the business: after going through all the previous steps, you have to register your business. The business registration in Mauritius is done at the Registrar of Company. Some forms will be filled out and a few business documents will be submitted before the business is registered.
- Registration with SMEDA: registering the business with SMEDA (Small and Medium Enterprises Development Authority) is the next step. SMEDA provides a certificate of Small Enterprise and Medium Enterprises depending upon the yearly turnover of the company.
- Opening a bank account: after the company registration, it is recommended to open a corporate bank account with a reputable bank in Mauritius. This is to keep the company and personal finance separate.
Mauritius tax system
Mauritius offers a low tax jurisdiction to encourage local and foreign entrepreneurs to set up a business. The tax regimes offered are as follows:
- No Inheritance and capital gains taxes
- CSR (Corporate social responsibility) tax: 2% on book profits
- 15% Corporate and personal Income tax rate
- Land transfer tax: 5%
- 15% VAT
Ready to enter the Mauritania market? Your Damalion expert can guide and accompany you in setting up your company, open your bank account and also help you with your investment services in Mauritius. Contact your Damalion expert now.
