Mauritius offshore companies

Businessmen who wish to setup tax efficient companies in Mauritius have two options: setup a global business company or an authorized company. While the second is the classic offshore company; the first is a tax resident company that can benefit from an 80% exemption of corporate income tax. Both entities are optimal solutions for Clients involved in international trading and holding activities.

Mauritius also offers global investors with two types of investment entities for managing their offshore funds, namely the Collective investment schemes and the Close-ended or private equity funds through an investment holding company which allows them to invest across asset classes.

Advantages

  1. Authorized companies and GBC pay a corporate income tax of 0% and 3% respectively on their global income, much lower than the 15% tax imposed on other resident companies;
  2. Furthermore, both companies are also exempt from paying i) withholding tax on earning interest and dividends remitted abroad; and ii) capital gains tax;
  3. While an authorized company is only allowed to do business outside of Mauritius, GBC that has been approved by the Mauritius FSC may trade with local companies;
  4. GBC can also take advantage of Mauritius double-taxation avoidance treaties as they are considered tax resident companies;
    It is mandatory for an authorized company to file a return of its income with the Mauritius Revenue Authority;
  5. GBC and authorized companies are optimal structures for Clients that are seeking privacy, as company records are not available to the public.

Disadvantages

  1. Mauritius is still considered as a tax haven country, therefore companies incorporated in the island may attract additional scrutiny from tax authorities and banks;
  2. GBC is required to appoint two resident directors that must be actively involved in the management of the company, and may be frequently required to provide additional evidence that are managed from Mauritius;
  3. Furthermore, GBC must i) have a local bank account; and ii) submit audited financial statements to the Mauritius FSC;
  4. Both GBC and authorized companies are required to appoint a local company secretary/authorized agent, who must have been pre-approved by the Mauritius FSC;
  5. Authorized companies are not allowed to be involved in the following activities:
    • Banking;
    • Financial services;
    • Insurance;
    • Company formation services.
  6. Furthermore, authorized companies are not allowed to trade with local customers in Mauritius.

Table of Comparison between GBC and Authorized company

 GBCAuthorized company
Corporate structuring considerations
Minimum number of shareholders?11
Wholly foreign-owned?YesYes
Minimum number of directors?21
Corporate director allowed?NoYes
Resident director required?YesNo
Resident company secretary or authorized agent required?YesYes
Business activities considerations
Legally tax exempt in Mauritius?NoYes
Corporate income tax?0%3%
Can trade with local customers?YesNo
Can do business within Mauritius?YesNo
Can open a local corporate bank account?YesYes
Can open bank account overseas?Only 2nd accountYes
Can rent local office?YesYes
Can hire staff in Mauritius?YesYes
Allowed to own shares in Mauritius companies?YesNo
Can apply for immigration visa?YesYes

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.

Contact us

For additional information on our services, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon