Licence No: MC05000037 - Code: FS-3.1A
Licence No: MC05000037 - Code: FS-3.1A
Setting the foundation for your business success in Mauritius
Home / Mauritius company formation
Mauritius has established itself as one of the most attractive destinations for company formation, especially for entrepreneurs seeking a tax-efficient, business-friendly environment. With strategic advantages such as a favorable tax regime, ease of doing business, and a well-regulated legal system, Mauritius is an excellent choice for those looking to expand their global footprint.
Company formation in Mauritius offers entrepreneurs and investors a streamlined, efficient, and well-regulated process, making it an attractive destination for setting up a business. The favorable legal framework, combined with comprehensive government support, ensures that starting a company in Mauritius is both straightforward and cost-effective.
Mauritius offers a unique combination of strategic location, favorable tax environment, and streamlined business regulations, providing a significant advantage for entrepreneurs looking to establish or expand their operations. The advantages of forming a company in Mauritius include access to international markets, political stability, and a supportive regulatory framework that encourages business growth and investment.
Mauritius, nestled in the heart of the Indian Ocean, serves as a strategic nexus between Africa, Asia, and Australia. This prime geographical location not only facilitates international trade routes but also positions Mauritius as a critical hub for businesses looking to expand their operations globally.
Companies based in Mauritius benefit from seamless access to a vast network of markets across multiple continents, thereby enhancing their competitiveness and growth potential. Furthermore, Mauritius’s membership in regional and international organizations such as the African Union (AU), Southern African Development Community (SADC), Common Market for Eastern and Southern Africa (COMESA), and Indian Ocean Rim Association (IORA) provides businesses with preferential trade agreements, enabling access to a broad customer base across multiple markets and a wide range of investment opportunities.
These memberships create a robust platform for market expansion and ensure that companies in Mauritius are well-positioned to capitalize on global trade flows. Additionally, companies in the logistics and distribution channels market can take advantage of the robust maritime infrastructure, including the Port Louis harbor—a significant transshipment hub.
Mauritius is renowned for its stable political environment, which has been a significant factor in attracting international investors. The country’s democratic system and transparent governance policies provide a favorable environment for both foreign and domestic investments. Additionally, Mauritius consistently reports steady economic growth, bolstered by sectors such as financial services, tourism, and information technology. The government’s proactive approach to economic reform has resulted in sustained GDP growth and low inflation rates.
Mauritius offers a sophisticated and investor-friendly legal and regulatory framework, based on both common law and civil law principles. This hybrid system provides significant flexibility, making it easier for entrepreneurs to navigate legal complexities, regardless of their background.
The Companies Act 2001 and the Financial Services Act 2007 ensure clarity and reliability for companies looking to establish themselves in the jurisdiction. This robust framework is especially beneficial for businesses involved in financial services, fintech, and offshore operations, where regulatory stability and compliance with international norms are crucial.
The Mauritius Financial Services Commission (FSC) plays a key role in ensuring that all companies adhere to international standards, making it a reputable location for financial services, wealth management, and offshore operations.
Common cases where this framework proves advantageous include setting up investment funds, holding companies, or family offices, where regulatory clarity and favorable conditions are vital.
Mauritius is consistently ranked as one of the easiest places to do business in Africa by the World Bank. According to the 2023 World Bank Doing Business Report, Mauritius ranks 13th globally in the ease of starting a business, highlighting the government’s commitment to simplifying business processes (World Bank, 2023).
Factors such as streamlined company registration, minimal bureaucratic hurdles, and efficient tax administration have all contributed to this favorable business climate. For instance, the average time required to register a business in Mauritius is approximately 5.5 days, compared to the regional average of 25 days in sub-Saharan Africa.
The government has also introduced multiple digital services to facilitate business processes, making incorporation and compliance as efficient as possible. These services include the online platform for business registration, tax filing, and permit applications, significantly reducing manual paperwork and enhancing transparency.
| Ease of Doing Business Metrics | Mauritius | Sub-Saharan Africa Average |
|---|---|---|
| Days to Start a Business | 5.5 days | 25 days |
| Procedures Required | 4 | 7 |
| Ease of Starting a Business (Global Ranking) | 13th | N/A |
The adoption of digital solutions such as the Companies and Business Registration Integrated System (CBRIS) has played a pivotal role in simplifying processes for both local and international entrepreneurs.
Mauritius offers a highly favorable tax environment, with various tax regimes depending on the type of entity. Below is a summary of the tax obligations for different types of companies in Mauritius:
1. Corporate Tax Rates
2. Capital Gains Tax
Mauritius does not impose a capital gains tax, which is a substantial advantage for companies and investors looking to optimize their tax obligations.
3. Withholding Tax
The standard rate for VAT is 15%. Companies that exceed the annual turnover threshold are required to register for VAT and submit periodic returns. VAT exemptions and zero-rated supplies are also available, particularly for export-oriented businesses.
| Type of Company | Corporate Tax Rate | Capital Gains Tax | Withholding Tax (Dividends) | VAT |
| Global Business Corporation (GBC) | 15% (effective as low as 3%) | None | None | 15% |
| Authorized Company | None | None | None | N/A |
| Domestic Company (DC) | 15% | None | 15% on interest/royalties | 15% |
| Trust | 0% or 15% | None | None | N/A |
The favorable tax conditions, combined with Mauritius’s extensive network of double taxation avoidance agreements (DTAAs) with more than 40 countries, enhance its attractiveness as an international financial hub for company formation and investment.
Controlled Foreign Company (CFC) rules in Mauritius are designed to provide a transparent and favorable environment for entrepreneurs moving their companies to Mauritius. These rules ensure that offshore income is structured in a compliant manner while allowing businesses to benefit from the jurisdiction’s tax incentives.
For non-resident companies moving to Mauritius, CFC rules help in maintaining good international standing and prevent conflicts with anti-tax avoidance regulations globally. By adhering to CFC requirements, businesses can establish a presence in Mauritius without concerns about reputational risks associated with aggressive tax planning.
For entrepreneurs, this regulatory framework provides a stable environment where compliance with international standards is prioritized, enhancing the credibility and attractiveness of businesses based in Mauritius. By properly structuring their operations and adhering to CFC regulations, companies can still benefit from Mauritius’s favorable tax environment while demonstrating good governance and ethical business practices.
Mauritius has signed double taxation avoidance agreements (DTAAs) with over 45 countries, including key markets such as India, China, South Africa, the United Kingdom, and several other African and European nations. These agreements help businesses mitigate the risk of being taxed twice on the same income, providing an essential advantage for multinational corporations and reducing the overall tax burden.
For entrepreneurs looking to relocate or expand their business in Mauritius, the DTAAs offer significant tax planning benefits, including improved cash flow management and increased certainty in cross-border transactions. The extensive network of DTAAs also enhances Mauritius’s attractiveness as an international financial hub, providing an additional layer of tax efficiency and making it an ideal jurisdiction for holding companies, investment funds, and other international business structures.
| Country | DTAA Benefits |
| India | Reduced withholding tax on dividends |
| China | No double taxation on corporate profits |
| South Africa | Lower rates on royalties and interest |
| United Kingdom | Avoidance of double taxation on income |
| France | Tax credits for income earned in Mauritius |
A GBC is designed for companies conducting substantial business activities outside Mauritius. These companies benefit from the jurisdiction’s favorable tax structure, including the option to claim foreign tax credits. GBCs are ideal for holding, investment, or trading operations.
Authorized Companies are businesses that conduct most of their activities outside of Mauritius. Unlike GBCs, Authorized Companies are treated as non-resident for tax purposes, which means they are not subject to Mauritius income tax. This makes Authorized Companies particularly suitable for businesses seeking offshore status without the regulatory requirements applicable to GBCs.
Domestic Companies primarily operate within Mauritius. They are subject to local tax regulations and are intended for businesses that focus on the Mauritian market. The main difference between a Domestic Company and a GBC is the scope of activities and the tax obligations.
Mauritius also offers the ability to establish Trusts, which are typically used for wealth management, estate planning, and asset protection. The Trust Act 2001 governs the establishment of trusts, and they can be particularly advantageous for clients seeking confidentiality and flexibility in managing assets.
Every company in Mauritius is required to have a registered office. This address is used for official correspondence and must be a physical location within Mauritius. VA Global Limited offers registered office services, as well as additional support such as telephone and mail forwarding and company secretary services. These services are designed to help entrepreneurs manage their business operations more efficiently.
Foreign nationals planning to reside and work in Mauritius have the option to apply for an Occupation Permit (OP), which combines a work and residence permit. The Occupation Permit is not mandatory for company formation but is beneficial for those who want to actively manage their business while residing in Mauritius. The government has set clear criteria for issuing work visas, depending on the type of activity and the level of investment in the company. Entrepreneurs can apply for the Investor, Professional, or Self-Employed categories, each with specific requirements that align with their intended role and level of business involvement.
The process begins with the submission of incorporation documents, including the Articles of Association, which set out the rules for the company’s management. These documents are submitted to the Registrar of Companies in Mauritius (often referred to as the Mauritius corporate registry) for approval. It is important to ensure that all required documents are properly completed to avoid delays in the registration process.
| Required Documents | Description |
| Articles of Association | Sets out the company’s management rules |
| Proof of Registered Office | Documentation of the physical address in Mauritius |
| Director and Shareholder Information | Identification and verification documents |
The Registrar of Companies is responsible for company registration and the maintenance of company records. Entrepreneurs forming a company in Mauritius need to interact with the Registrar during the registration process. Keywords such as “Mauritius corporate registry” and “business” are essential in this context.
Once the incorporation documents are approved, the next step is to obtain a business license, depending on the nature of the business. Some sectors require specific licenses, such as a Payment Service Provider (PSP) license, Investment Dealer license, or Investment Adviser license, which are essential for financial services companies. Other relevant licenses include those for tourism, real estate development, and insurance. VA Global Limited offers support in navigating these regulatory requirements to obtain the appropriate business license, ensuring entrepreneurs can focus on their core business activities.
Steps for Company Registration in Mauritius:
VA Global Limited provides tailored assistance to ensure that these steps are completed efficiently, reducing the time it takes to start operations.
Opening a corporate bank account is a crucial step for businesses operating in Mauritius, ensuring smooth financial transactions and access to international banking services.
Mauritius boasts a well-established and reputable banking sector, offering a range of services tailored to both resident and non-resident companies. Banks in Mauritius provide multi-currency accounts, online banking, and international transfer services, making them ideal for businesses engaging in global operations.
Businesses in Mauritius can choose from different types of corporate accounts depending on their specific needs. These options include accounts for domestic operations, offshore companies, and holding companies. Whether you need an account for routine transactions or one that supports complex international dealings, Mauritian banks offer flexible solutions to accommodate diverse business models.
The cost of setting up a company in Mauritius varies depending on the type of business structure you choose.
For Global Business Corporations (GBCs), the initial setup involves fees for incorporation, regulatory compliance, and related administrative services. The first year costs include setup fees and the necessary filings to ensure your business is fully compliant with Mauritian regulations. Renewal costs in subsequent years cover ongoing compliance and licensing, ensuring your GBC remains in good standing with local authorities. Generally, the cost of forming and maintaining a GBC reflects the level of services and regulatory benefits provided, especially for companies engaging in international business.
For an Authorized Company, the setup process is more straightforward, with lower initial and renewal fees compared to a GBC. This structure is often suited for companies with limited physical presence in Mauritius or those conducting international business without significant operations within the country. Ongoing costs for maintaining an Authorized Company include annual renewals and basic compliance.
At VA Global Business Limited, we provide transparent pricing tailored to your specific business needs, ensuring you receive all necessary services while keeping costs manageable. Our team can guide you through selecting the right company structure based on your budget and business objectives.
Directors of Mauritian companies hold significant responsibilities that ensure the smooth operation and legal compliance of the business. The Companies Act 2001 clearly defines these duties, which include acting in good faith and in the best interests of the company. Directors must exercise due care, skill, and diligence in their decision-making, avoiding conflicts of interest and personal gain. They are also tasked with ensuring that the company complies with legal obligations related to tax, employment law, and financial reporting. For Global Business Companies (GBCs), directors must take additional steps to prove that the business is managed and controlled from Mauritius, such as holding board meetings in the country.
Non-compliance with these fiduciary duties can result in personal liability for directors, including fines or legal action, especially in cases of negligence or fraudulent activities.
Shareholders in Mauritius enjoy specific rights and have responsibilities that shape their involvement in the company’s success. Their rights, typically outlined in the Articles of Association, include:
On the other hand, shareholders must fulfill certain obligations, including contributing to the company’s capital when necessary, especially in the case of a share capital increase or insolvency. Additionally, shareholders may be required to refrain from engaging in activities that would compete with the company’s interests.
Maintaining a registered office is a legal requirement for all companies in Mauritius. This office serves as the official business address, and it must be kept up to date with local authorities. The registered office is the location where all formal communications, including legal notices and government correspondence, are sent. It is crucial that this address remains valid throughout the life of the company, and any changes must be promptly notified to the Registrar of Companies.
Mauritian companies must maintain accurate and detailed financial records to ensure compliance with both domestic laws and international standards. Under the Financial Reporting Act, companies are required to submit annual financial statements. These records must reflect the company’s financial health and must be prepared in accordance with International Financial Reporting Standards (IFRS).
For Global Business Companies (GBCs), there are additional requirements. GBCs must file audited financial statements with the Financial Services Commission (FSC) annually. Auditors must be independent and recognized by the FSC to ensure impartiality. Proper financial reporting ensures that the company remains transparent and accountable to stakeholders, including investors, directors, and regulators.
VAT-registered companies in Mauritius are required to submit Value Added Tax (VAT) returns periodically, usually on a quarterly basis. These returns must reflect the VAT collected on taxable supplies and VAT paid on business expenses. Accurate bookkeeping is crucial to prevent discrepancies and ensure timely submissions, as failure to comply with VAT obligations can result in penalties, fines, and interest on overdue payments. Companies should also be aware of their obligation to issue VAT invoices for taxable transactions, and they must ensure proper documentation to support these claims during audits.
For companies operating as GBCs, VAT compliance is essential as part of the broader regulatory framework under which they operate. Employing experienced accounting professionals or services can be instrumental in managing VAT returns and maintaining compliance with Mauritian tax laws.
The minimum capital required for company formation in Mauritius varies depending on the type of incorporation. For a Global Business Corporation (GBC), there is no specific minimum capital requirement, but it is recommended to have a reasonable capital amount to reflect the nature and scale of the business. On the other hand, for a Category 1 Global Business Company (GBC1) or Category 2 Global Business Company (GBC2), there is also no statutory minimum, but companies often choose a capital amount that supports their business operations and meets investor or partner expectations.
Domestic companies and certain regulated industries, such as financial services, may have specific minimum capital requirements depending on the sector. Our company can guide you through the appropriate capital structure based on the type of incorporation and industry requirements in Mauritius
Yes, a foreign national can own a company in Mauritius. There are no restrictions on foreign ownership, and non-residents can fully own a business in the country. Mauritius is known for its business-friendly policies, allowing foreign investors to incorporate various types of companies, such as a Global Business Corporation (GBC) or a domestic company. The ease of setting up and the supportive regulatory environment make it an attractive destination for foreign nationals seeking to establish or expand their business operations. Our incorporation services ensure compliance with local regulations and smooth setup for foreign owners.
The key difference between offshore and domestic companies in Mauritius lies in their purpose, tax treatment, and regulatory requirements:
Having bank accounts for offshore companies in Mauritius offers several key advantages:
Our company can guide you through the process of setting up a corporate bank account tailored to your offshore business needs.
It is possible to move your company to Mauritius through either Relocation or Redomiciliation, both services offered by VA Group Limited.
VA Group Limited is here to help you choose the best option and guide you through every step of the process for a smooth transition to Mauritius.
Choosing VA Global Business Limited offers several distinct advantages for businesses looking to establish or expand their operations in Mauritius:
By choosing VA Global Business Limited, you gain a partner committed to making your move to Mauritius as seamless and successful as possible.