Business entities in Mauritius

Business entities in Mauritius

Mauritius business setup is an interesting option for our Clients willing to legally reduce taxation over their global earnings. The most common option for that purpose is a company with a Global Business License type 2 (GBC2 company). However, our Clients may also consider a GBC1 company. While Mauritius business setup requirements will include higher government fees for this type of company, they will have access to Mauritius’s Double Tax Avoidance treaties.

GBC1 company

If properly structured, a Mauritius Global Business Category 1 (GBC1) Company can be used by foreign companies to structure investments and projects in countries with which Mauritius has signed double tax agreements, including China, India, Singapore and the UK. The following information will help you determine whether such Mauritius business setup option is the optimum corporate structure to fulfill your international business objectives:

Advantages of a Mauritius GBC1 company

    Mauritius business setup advantage

  1. Mauritius company setup is a simple and cost-effective solution. According to the 2013 Doing Business Survey by the World Bank, Mauritius is the world’s 20th easiest place to do business. The survey measures factors including Mauritius company setup start up procedures, time, cost and minimum capital required to start a business;
  2. A minimum of one shareholder is required, who can be of any nationality and need not be resident in Mauritius. Corporate shareholders are permitted. Additionally, Mauritius was positively ranked as the world’s 8th freest economy according to the 2013 Index of Economic Freedom by The Heritage Foundation, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets;
  3. A Mauritius GBC1 is considered tax-resident in Mauritius, and corporate profits are taxed at 15%. However, tax credits are available which may bring the effective tax rate down to 3%. A GBC1 is not subject to capital gains tax or withholding tax;
  4. Unlike a Mauritius GBC2 company, a GBC1 enjoys access to over 30 double tax treaties signed with countries around the world;
  5. There are no minimum capital requirements for a Mauritius GBC1.

Disadvantages of a Mauritius GBC1 company

  1. Mauritius company registration is perceived as a ‘tax haven’ jurisdiction. In addition, Mauritius is the 52nd least corrupt country in the world, according to the 2013 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
  2. In accordance with the Mauritius Companies Act 2001, a Mauritius GBC1 requires a minimum of two resident directors in order to access Mauritius’ double tax avoidance treaties. Corporate directors are not permitted;
  3. In accordance with Mauritius accounting and tax law, a Mauritius GBC1 is required to submit annual audited financial statements to the Mauritius Financial Services Commission and income tax authorities;
  4. A Mauritius GBC1 is required to conduct principle bank accounts and transactions through a Mauritius corporate bank account;
  5. Mauritius is poorly ranked as the world’s 45th most competitive economy in the World Economic Forum’s Global Competitiveness Report 2013 – 2014.

GBC2 company

If properly-structured, forming a Mauritius Global Business Category 2 (GBC2) Company is a low-cost, legal, tax-efficient way through which international business can be conducted. The following information will help you determine whether a Mauritius GBC2 Company is the optimum corporate structure to fulfill your international business objectives:

Advantages of a Mauritius GBC2 company

  1. Mauritius company setup is a simple and cost-effective solution for offshore holding or ownership of investments and assets, commercial transactions, international trade and asset protection. According to the 2013 Doing Business Survey by the World Bank, Mauritius is the world’s 20th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business;
  2. Mauritius company setup is positively ranked as the world’s 8th freest economy according to the 2013 Index of Economic Freedom by The Heritage Foundation, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets;
  3. A Mauritius GBC2 Company is exempt from all taxes on income derived outside Mauritius. There is no income tax in Mauritius;
  4. A GBC2 can be 100% foreign owned. A minimum of one shareholder and one director is required to form a Mauritius GBC2 Company and corporate directors are permitted;
  5. A Mauritius GBC2 Company has no minimum capital requirements.

Disadvantages of a Mauritius GBC2 company

  1. Mauritius is the 52nd least corrupt in the world, according to the 2013 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
  2. Unlike a Mauritius GBC1 company, a GBC2 does not have access to the 28 double tax treaties Mauritius has signed;
  3. Mauritius is poorly ranked as the world’s 54th most competitive economy in the World Bank’s Global Competitiveness Report 2013 – 2014;
  4. A Mauritius GB2 category company is required to file annual reports with the Financial Services Commission. A GBL 2 is required to submit the financial summaries within 6 months of the balance sheet date. Details of the identity of the promoter/beneficial owner/ultimate beneficial owner, along with an outline of company objectives must be submitted to the FSC.

Different types of Mauritius business entities

 
GBC2
GBC1
LLC
Branch
Rep office
Also known as:Offshore companyOffshore company Private CompanyBranchRep. office
How long to set the company up?1 week3 weeks2 weeks3 weeks3 weeks
How long to open company bank account?4 weeks4 weeks4 weeks4 weeks4 weeks
Legal liability?LimitedLimitedLimitedUnlimitedUnlimited
Minimum shareholders?11111
Wholly foreign owned?YesYesYesYesYes
Minimum share capital?US$1US$1US$1N/AN/A
Corporate bank account options?HSBCBarclaysSBIStandard CharteredDeutsche Bank
Mauritius bank account mandatory?NoYesYesNoNo
Does our Client need to travel?NoNoNoNoNo
Resident director required?NoYesYesNoNo
Resident company secretary or authorized agent required?YesYesNoYesYes
Minimum number of resident directors?02100
Minimum directors allowed?111N/AN/A
Corporate shareholders allowed?YesYesYesYesYes
Corporate director(s) allowed?YesYesYesN/AN/A
Tax resident in Mauritius?NoYesYesYesYes
Access to Mauritius DTAs treaties?NoYesYesYesN/A
Mauritius corporate tax rate?0%3%15%15%0%
File annual tax return?NoYesYesYesYes
Annual financial statements required?YesYesYesYesYes
Statutory audit required?NoYesYesYesYes
Allowed to issue sales invoices in Mauritius?NoYesYesYesNo
Allowed to sign contracts with Mauritius entities?NoYesYesYesNo
Allowed to import and export goods?NoYesYesYesNo
Can rent an office in Mauritius?YesYesYesYesYes
Can buy Mauritius property?NoYesYesYesNo
Can own equity in other Mauritius companies?NoYesYesYesNo
Total Mauritius business setup costs in Yr. 1US$9,485US$10,250US$8,215US$8,630US$8,630
Subsequent annual costs (excl. accounting and tax fee)US$1,635US$4,250US$2,555US$2,555US$2,555
Draft of invoicesMauritius GBC2 draft invoiceMauritius GBC1 draft invoiceMauritius LLC draft invoiceMauritius branch draft invoiceMauritius rep office draft invoice

Contact us

For additional information on our business setup services in Mauritius, you can email us at email@healyconsultants.com or phone us at (+64) 4831 8737. Address: Orbis Court, 5th floor. 132 St. Jean Road. Quatre Bornes, Mauritius. Alternatively contact our in-house country expert whose details are below:
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