Effective 1 January 2019, the Mauritius government abolished the Category 2 Global Business License (GBC2) company, and introduced a new entity, called the Authorized Company (AC). Furthermore, Category 1 Global Business License (GBC1) companies are now simply known as the Global Business Company (GBC).

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Mauritius business setup summary

• Problems with Mauritius company formation

  1. Mauritius is working hard to overhaul its poor global reputation as a tax haven jurisdiction. Consequently, there has been a considerable increase in procedures, bureaucracy, and substance requirements from Mauritian authorities;
  2. In its efforts to overhaul its global reputation, Mauritius has made a register of shareholders and directors available to the general public;
  3. Effective 1 July 2019, the Mauritius Government issued the Income Tax (Amendment No. 2) Regulations 2019, requiring all Mauritius entities to fulfil economic substance requirements by i) employing local staff ii) leasing a physical office and iii) conducting core income-generating activity in the country and iv) incurring a minimum expenditure proportionate to its level of activities;
  4. Although Mauritius has been working hard to overhaul its international reputation, the country is still globally viewed as an island tax haven jurisdiction. Clients establishing a Mauritius offshore company can attract additional scrutiny from tax authorities and banks;
  5. The tourism industry is partially closed to foreign investors looking for a business registration in Mauritius. For instance, foreigners cannot have a majority stake in a hotel with less than 100 rooms. They also need to make an initial investment of at least US$300,000 to open a restaurant in Mauritius;
  6. Additional registrations required for trade license and data protection office will delay the engagement by 6 weeks;

  Vulnerability to external shocks

  1. The island country is extremely dependent on tourism for its economic well-being, which makes it more vulnerable to external changes and shocks;
  2. While labor is easily available, it is difficult to get professionals in Mauritius, which is why there is a lot of untapped potential which can delay the speed of development and growth in the country;
  3. The legally tax-exempt Mauritius GBC2 license was abolished on January 1, 2019. An authorized company license will be given out instead.

Healy Consultants Group PLC does not recommend our Clients establish a business in Mauritius, due to the poor business environment provided by the Mauritius Government and Financial Services Commission to multi-national organisations. Healy Consultants Group PLC instead recommends our Clients establish their businesses in these reputable zero tax jurisdictions.