Mauritius is an African island jurisdiction that has amazing landscapes and a well-known developed tourism sector. At the same time, the state has pretty advantageous conditions for handling service, trading, and financial business, for instance. IT is also growing rapidly. Therefore, company formation in Port Louise, for instance, can introduce this potential of the jurisdiction.
Why Company Formation in Mauritius Is a Potentially Winning Business Solution
If you wish to register a company in Mauritius, this plan may instantly open further advantages:
- calm and convenient location;
- loyal approach to investments from abroad;
- stable political environment;
- diversified liberalized economy;
- existence of free-trade zones;
- absence of currency control restrictions;
- extensive and growing list of double-tax treaties.
Legal and Organizational Forms in Mauritius
It is allowed to register a company in Mauritius or set up your presence in an alternative way by utilizing one of these forms:
- Limited liability company – this is the most flexible and popular corporate business structure. It is enough to have at least 1 member of any nationality to form this corporate entity. The financial and legal responsibility of each member will never be over the amount of the investment contributed. 1 resident director is also needed for this type of company. There are no compulsory statutory demands concerning its starting share capital.
- Global business company – a form that opens the opportunity of handling cross-border business and making effective tax planning. The obligations of shareholders are restricted in this case as well. If a company meets all the compulsory substance requirements, 80% of its income is exempted from taxes. Among these substance demands are: (1) at least 2 resident directors, (2) a bank account in Mauritius, (3) at least 1 resident employee, (4) keeping proper accounting records and filling respective financial statements in Mauritius.
- Limited liability partnership – even 2 partners are enough to form this business. Both can be foreigners. There should be at least one general partner who bears the entire liability over the debts and losses that a partnership can potentially bear. Still, this general partner also governs the entire partnership while limited partners are not. But, limited partners bear 100% limited financial and legal liability that never exceeds the amount of their investments. The partnership also should obtain a global business license (GB license). Otherwise, each partner will be obliged to pay income tax in Mauritius.
It is also allowed to establish a fund, trust, protected cell company (for asset holding), free zone company, branch, or local office in Mauritius. Contact Aotopay attorneys to get extra details about each.
How to Incorporate a Company in Mauritius
The typical process of company incorporation in Mauritius envisages these must-have stages:
- Defining the scope of business activities that a future corporate entity is going to conduct.
- Elaborating on and reserving a unique commercial name for an upcoming enterprise.
- Searching for and formalizing an official legal address for a new entity.
- Requesting and formalizing appropriately all the must-have information and documents about the shareholders, including a mother company (if any) beneficiaries, and managers of a company.
- Composing, executing, and formalizing appropriately the memorandum and articles of association, resolution of founders, and other required documents to establish a new company in Mauritius.
- Forwarding a comprehensive set of documents, along with a bank statement on the payment of an incorporation fee, to the Registrar of Companies (the Corporate and Business Registration Department) for review. Adding a new entry in the Register of Companies and providing the Certificate of Incorporation in the case of a positive response.
- Formalizing a new company for the purpose of paying compulsory tax and social security payments.
- Opening corporate bank accounts.
- Applying for and obtaining a special business license or permit for a newly-incorporated company.
Legal and Regulatory Framework
The local legal system is a winning combination of English and French law. This system is tightened to the most common expectations of businessmen, including foreign ones, to actually keep and attract investments in the country. This is shown through the simplified incorporation process, in particular, which can be completed in a week or two, even remotely. And this process is not bureaucratized.
The local legislation is also upgraded regularly to guarantee compliance with world-recognized standards and practices. The local law contains no limitations on the repatriation of capital and profits. Still, specific types of regulated business activities will require getting a business license. Resident companies also have to complete annual returns. Contact Aotopay attorneys to have at hand more details about the industry that interests you.
Taxation in Mauritius
Any initial decision about company incorporation in Mauritius shall be evaluated with the subsequent highlights:
- Profit tax (for legal persons) – (1) basic rate – 15% (2) for entities that export goods – 3%
- Income tax (for natural persons) – 15%
- VAT – 15%
- Withholding tax (for non-residents) – (1) dividends – 0% (2) interests – 15% (3) royalties – 15%.
Capital gains tax are not foreseen in Mauritius.
How Aotopay Attorneys Can Assist You
If you have decided to acquire a ready-made company in Mauritius or incorporate a new one, Aotopay experts are prepared to render you complex legal support at each stage of the process as well as further legal assistance in the course of its next operation, whether in Mauritius or worldwide.