Mauritius Company Formation Services
A favoured destination for foreign investors
Mauritius is rapidly establishing itself as a leading economy in the region. With its stable economic environment and favorable business regulations, the prospect of establishing a company in Mauritius has become increasingly appealing to businesses around the world.
Mauritius stands out as a favored destination for foreign investors, owing to its numerous tax advantages and welcoming stance toward financial services enterprises.
In Mauritius, non-resident companies can benefit from exemptions on corporate tax, capital gains tax, and withholding tax. Furthermore, international clients have the opportunity to establish funds, investment dealer companies, fund management firms, payment service providers, and insurance brokerages.
The process of registering a company in Mauritius prioritizes extensive confidentiality for beneficial owners, with company registers remaining inaccessible to public scrutiny. Moreover, the political and business climate in the country is of paramount significance.
TBA & Associates is ready to provide comprehensive support for your company formation needs in Mauritius. We are committed to assisting you at every stage of the process, from the incorporation assistance of your Mauritius-based company to helping you with the various categories of offshore companies available in Mauritius. Additionally, we can facilitate the acquisition and setup of your office space, assist in the recruitment of skilled professionals, and ensure rigorous adherence to all legal requirements with precision and reliability.
Mauritius as an International Financial Center (IFC) Mauritius Advantages
Mauritius combines the key attributes of an ideal offshore location. It is an independent sovereign state with a substantial economy, political stability, and cutting-edge telecommunications infrastructure. The country boasts a pool of bilingual professionals trained in Europe and the United States, along with a dynamic banking system housing internationally renowned banks in a setting free from exchange controls. Mauritius offers an expanding network of double taxation agreements that facilitate efficient tax planning.
The Mauritius International Financial Centre (IFC) has become a well-established jurisdiction in the global tax planning landscape, commonly used for structuring notable investments across Europe, Asia (especially in China and India), Africa, and the Far East. Recent legislative amendments, including the Companies Act 2001, Trusts Act 2001, and Financial Services Development Act 2001, have elevated the IFC’s legal framework to meet the highest standards expected by participants in the global financial services industry. Additionally, the enactment of laws like the Financial Intelligence and Anti Money Laundering Act instills confidence in investors and their business partners, ensuring they operate within a secure and properly regulated environment.
Mauritius offers a stable and transparent tax framework that is highly conducive to business operations. There is no withholding tax on dividends or interest payments made by Mauritian companies to non-resident beneficiaries, and neither capital gains tax nor inheritance tax applies.
Most relevant Corporate Entities
The Mauritius International Financial Centre (IFC) serves as a primary choice for global business operations. The most commonly utilized entities within the Mauritius IFC are the Domestic Company (DC), Global Business Company (GBC) and the Authorised Company (non-resident entity), as issued by the Financial Services Commission, the governing regulatory body.
Why Establishing your Business Company in Mauritius?
Mauritius offers a highly competitive tax regime with some of the most favorable rates worldwide.
For corporate income, a flat tax rate of 15% applies. This rate extends to dividends from foreign companies involved in business activities with Mauritius and those engaged in processing operations
Mauritius stands out as a tax-friendly destination with unique benefits:
- Companies headquartered in Mauritius enjoy tax exemptions on capital gains and dividends, making it an enticing choice for businesses.
- Companies involved in the export of goods benefit from a remarkably low tax rate of just 3%, promoting international trade and economic growth.
- Dividends are completely exempt from withholding tax, ensuring that shareholders receive their dividends without any deductions.
- However, interest and royalties are subject to a modest 15% withholding tax, contributing to government revenue while still offering a competitive tax environment for businesses.
In summary, Mauritius’ tax policies set it apart as a jurisdiction with incredibly attractive rates, including a low corporate income tax rate of 15%. The tax exemptions for capital gains and dividends, along with the minimal 3% export tax rate, make Mauritius a prime choice for companies. Dividend withholding tax exemptions further enhance its appeal, while a 15% withholding tax on interest and royalties strikes a balance between revenue generation and business-friendly taxation.
Moreover, an Authorized Company in Mauritius is a unique corporate entity incorporated under the Companies Act, designed for businesses with their core activities and management situated outside of Mauritius. This non-resident status in Mauritius offers distinct advantages.
Setting up your Company in Mauritius
Most Relevant Features
Here are some compelling reasons to consider incorporating your company in this jurisdiction:
An Authorised Company is not considered a tax resident in Mauritius, making it an attractive option for businesses looking to minimize their tax liabilities.
Strategic Geographical Location
Mauritius enjoys a strategic location in the Indian Ocean, serving as a bridge between Africa and Asia. This geographical advantage positions Mauritius as the preferred jurisdiction for investments both into and out of Africa.
Mauritius consistently ranks as the most business-friendly country in Africa, according to the World Bank’s Ease of Doing Business Index. This favorable environment simplifies business operations and regulatory compliance.
Robust Regulatory Framework
The country maintains a robust regulatory framework and upholds good corporate governance practices, as indicated by the Ibrahim Index of African Governance (IIAG). This fosters transparency and trust in the business environment.
Hybrid Legal System
Mauritius boasts a legal system that combines elements of Common Law and the French Civil Code, offering a versatile and adaptable legal framework for various business needs.
Social and Political Stability:
Mauritius is known for its long-standing social and political stability, providing a secure backdrop for business activities and investments.
Diverse Economy and Culture
The nation’s diversified economy and culture offer opportunities for businesses across various sectors, making it a versatile and welcoming environment for a wide range of industries.
Mauritius has established extensive bilateral and multilateral agreements with African countries, particularly in areas related to taxation, trade, and investment. This network of agreements facilitates international trade and investment.
Reliable Banking System
The country maintains a reliable and well-regulated banking system, ensuring a stable financial environment for businesses.
Mauritius boasts a skilled and experienced workforce proficient in English and French, facilitating communication and business operations in two widely spoken global languages.
Favorable Tax Environment
In addition to its tax non-resident status in Mauritius, an Authorized Company benefits from a tax regime that includes no foreign exchange controls, no capital gains tax, and no withholding tax. This tax-friendly environment further enhances the attractiveness of Mauritius as a business destination.
Establishing an Authorized Company in Mauritius not only offers tax advantages but also provides a secure and business-friendly ecosystem that is conducive to international trade and investment. This combination of factors makes Mauritius a sought-after jurisdiction for companies looking to expand their global footprint.
Frequently Asked Questions (FAQs)
Q Which business sectors are the most profitable in Mauritius?
A – The most lucrative business opportunity in Mauritius is internet-based trade. In our increasingly digital world, the internet plays a pivotal role for both individuals and corporations. You can consider venturing into the internet service provider business, or explore the option of starting an internet café, which typically demands a relatively modest initial capital investment but promises profitability for your enterprise.
– Please note that the tourism sector, although historically thriving in Mauritius, has faced challenges due to the Covid-19 pandemic and may not currently be as profitable.
Q Can foreigners initiate businesses in Mauritius?
A – Yes, foreigners can establish businesses in Mauritius, provided they meet the minimum legal requirements. As a foreign business owner, you will have full ownership of your company. Depending on the business entity you select, you might need to appoint a local resident director or secretary.
Q Why do entrepreneurs choose to set up businesses in Mauritius?
A – Mauritius has emerged as a sought-after destination for business formation, primarily due to the various tax benefits and exemptions provided by the government. Additionally, the country offers a stable political and economic environment, complemented by business-friendly policies.
Q What are the most promising business opportunities in Mauritius?
A – Mauritius presents a range of business prospects. Consider becoming an internet service provider to tap into the growing digitalization trend. Alternatively, you can meet the increasing demand for internet access by establishing an internet café, requiring a relatively low initial capital investment. E-commerce is another promising avenue, particularly in the wake of the Covid-19 pandemic, offering opportunities to leverage existing online platforms with minimal capital requirements.
Our company licensing services
— What we do and do not do
Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.
TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!
Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.