DOING BUSINESS FROM OUTSIDE OF MAURITIUS IN 2020
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).
Compare different Mauritius entities | Non-resident company | GBC | Investment fund | CIS fund | Limited Liability Partnership |
---|---|---|---|---|---|
Locally known as | Authorized company (AC) | Global Business Company (GBC) | Investment fund | Collective Investment Scheme | LLP |
Best use of entity? | Global trading | Holding Company | Asset management | Portfolio Investments | Professional services |
License required before invoicing global customers? | Yes (Authorized Company License) | Yes (GBC license) | Yes | Yes | No |
How soon can you invoice Clients/sign sales contracts? | 1 month | 1 month | 6 months | 6 months | 1 month |
How soon can your Firm hire staff? | 1 month | 1 month | 1 month | 1 month | 1 month |
How soon can you sign a lease agreement? | 1 month | 1 month | 1 month | 1 month | Immediately |
How long to secure corporate bank account numbers? | 2 months | 2 months | 3 months | 3 months | 2 months |
How long to secure company registration/tax numbers? | 3 weeks | 3 weeks | 3 weeks | 3 weeks | 2 weeks |
How long to secure license certificate? | 1 month | 1 month | 5 months | 5 months | Not required |
Mauritius corporate tax rate on annual net profits? (foreign sourced income) | 0% | 3% | 3% | 3% | 0% |
Mauritius corporate tax rate on annual net profits? (locally sourced income) | local trading not allowed | 15% | 15% | 15% | 0% |
Limited liability entity? | Yes | Yes | Yes | Yes | Yes |
Resident director/legal representative required? | No | Yes (at least 2) | Yes (at least 2) | Yes (at least 2) | Yes (at least 2) |
Company secretary legally required? | Recommended | Yes | Yes | Yes | Yes |
Minimum/recommended paid up share capital? | US$1 | US$1 | 5% of funds raised from investors | Depends on license applied for | US$1 |
Our recommended corporate bank account location? | ABC Bank | MCB | Bank One Mauritius | Afrasia Bank | ABC Bank |
VAT payable on sales to local customers? | NA | 15% | 15% | 15% | 15% |
Accounting and tax considerations | Non-resident company | GBC | Investment fund | CIS fund | Limited Liability Partnership |
---|---|---|---|---|---|
Statutory corporate tax payable? (foreign sourced income) | 0% | 3% | 3% | 3% | 0% |
Statutory corporate tax payable? (locally sourced income) | local trading not allowed | 15% | 15% | 15% | 0% |
Legally tax exempt in Mauritius if no locally sourced income? | Yes | No | No | No | Yes |
Must file an annual tax return? | Yes | Yes | Yes | Yes | No |
Must file annual financial statements? | Yes (financial summary) | Yes | Yes | Yes | Yes (statement of income) |
Must always appoint an auditor? | No | Yes | Yes | Yes | No |
Can have access to Access to Mauritius DTAAs? | No | Yes | Yes | Yes | No |
Withholding tax on dividends to foreign shareholders? | None | None | None | None | None |
Entity registration considerations | Non-resident company | GBC | Investment fund | CIS fund | Limited Liability Partnership |
Resident director/partner/manager/legal representative required? | No | Yes | Yes | Yes | Yes |
Appointment of a local company secretary required? | No but Recommended | Yes | Yes | Yes | Yes |
Minimum number of shareholders/partners? | 1 | 1 | 1 | 1 | 2 |
Minimum number of directors/managers? | 1 | 2 | 2 | 2 | 1 |
Minimum/recommended paid up share capital? | US$1 | US$1 | 5% of funds raised from investors | Varies across licenses | US$1 |
Can secure a financial services license? | No | Yes | Yes (required) | Yes (required) | Yes |
Must appoint a local custodian? | No | No | Can be required | Can be required | No |
Shelf companies available? | No | No | No | No | No |
Must sign an office lease agreement during incorporation? | No | No | No | No | No |
Can easily convert to a PLC / limited company? | Yes | Yes | Yes | Yes | No |
Public register of entities? | Yes | Yes | Yes | Yes | Yes |
Can have preference shareholders/partners? | Yes | Yes | Yes | Yes | Yes |
Can bid for Government contracts? | Yes | Yes | Yes | Depend on license | Yes |
Recommended to secure Mauritius residence for business owner? | No | Yes | Yes | Yes | Yes |
Government grants available? | No | Yes | Yes | Yes | Yes |
Good entity for trademark registration? | Yes |
Can secure an import and export license? | Yes |
Monthly VAT reporting to the Government always required? | No |
Sponsorship by a local citizen required? | No |
Temporary physical office solutions available? | Yes |
You need a local resident as bank signatory? | No |
Can be wholly foreign owned? | Yes |
The entity will likely be regulated by? | Financial Services Commission |
Shareholders & directors documents to be attested/translated? | Yes |
Each foreign director needs a personal income tax number? | No |
Foreign non-resident director needs a residence visa? | No |
Maximum number of staff allowed? | No maximum number |
Expatriate to local staff ratio? | None |
Other useful information | Mauritius Substance Requirements |
What will be included in my customer sales invoice? | Click link |
This country has signed free trade agreements? | Yes, 46 Double Taxation Agreements signed |
This country is a member of WIPO/TRIPS? | Yes |
This country is a member of the ICSID? | Yes |
Average custom duties incurred? | 1.48% (2018 data) |
Government foreign investment approval required? | No |
Average monthly office rental? (US$ per sq. m) | US$20 (2017 data) |
Minimum statutory monthly salary? | MUR9,000 (US$245) |
US$ deposit interest rate? (1-year average) | 3% (2017 data) |
Overseas remittance currency controls? | None |
Group HQ tax incentives? | No |
Security deposit to be kept with Government? | No |
Can secure trade finance? | Yes |
Maximum shareholding for foreigners? | 100% |
Banking considerations | |
Multi-currency bank accounts available? | Yes |
Corporate visa debit cards available? | Yes |
Quality of e-banking platform? | Good |
Crowd funding available in this country? | Yes |
Mauritius business setup summary
Useful links for Mauritius
Disclaimer: Healy Consultants Group PLC neither has an office nor staff in Mauritius nor is it licenced as a management company under Section 77(1) of the Financial Services Act of 2007 or in any other way by the Financial Services Commission.