Success tips when doing business in Mauritius
Mauritius business facts
- Your joint venture partner or Mauritius shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including local knowledge your business would need in Mauritius;
- To optimize the success of your new business venture in Mauritius, Healy Consultants Group PLC recommends your firm to i) complete a feasibility study; ii) prepare a detailed business plan; iii) communicate with the Mauritius Chamber of Commerce iv) speak to your local Embassy in Mauritius; and v) communicate with Healy Consultants Group PLC’s Clients who have successfully launched their Mauritius business setup;
- Foreign companies should be aware i) Mauritius statistics and market data are usually imprecise; ii) transactions tend to take longer than expected; iii) more frequent and longer market visits are required, at least initially; iv) complex business procedures are common;
- An essential factor in setting up a company in Mauritius is to thoroughly research the business sector you are planning to invest in. Healy Consultants recommends our Client prepare a detailed business plan including an extensive market study and evaluation of competitors.
Interesting facts about Mauritius
- The country of Mauritius has the shape of a leaf and was created by the eruptions from underwater volcanos;
- Sugarcane is planted on 90% of the Mauritius land and is regarded as the top money earner for the country. Sugar is the major export of the country along with clothing, tea, and jewelry;
- Most of the food in Mauritius including rice, vegetables, and lentils are imported. Therefore, food in Mauritius is very expensive;
- Mauritians are relatively conservative, walking around wearing shorts or bathing suits are prohibited in most hotels;
- The population of Mauritius consists of four ethnic groups that are Indo-Mauritian (68%), Creole (27%), Sino-Mauritian (3%), and Franco-Mauritian (2%).
Frequently asked questions
What are the main types of Mauritius Company?Mauritius has two main types of company through which you can conduct international business – a GBC company (Offshore Company) and an authorized company (International Company).
What can these Companies be used for?A GBC company is particularly suited to public financial operations such as fund management. An authorized company is ideal for holding private assets and investments, for international consulting business, international trading and licensing.
What are the tax implications of a GBC company?Corporate profits are taxed at 15%. However, tax credits are available which may bring the effective tax rate down to 3%. A GBC company is not subject to capital gains tax or withholding tax.
What are the main advantages of a GBC company?Mauritius has signed Double Taxation Treaties with several countries (including China, France, Germany, India, Indonesia, Italy, Malaysia, Singapore, South Africa and the UK). Only a Mauritius-resident Company (GBC company) can take advantage of these agreements.
What are the reporting requirements for a GBC company?A GBC company is required to submit an annual return or audit.
How private is a GBC company?There is no public register of directors and shareholders for this type of Company.
Are there any restrictions on ownership of a GBC company?No. A foreigner can own 100% of a Mauritius GBC company.
What is the minimum number of shareholders and directors required to form a GBC company?A minimum of one shareholder is required, who can be of any nationality and need not be resident in Mauritius. Corporate shareholders are permitted. In accordance with the Mauritius Companies Act 2001, a Mauritius GBC company requires a minimum of two resident directors in order to access Mauritius’ double tax treaties.
What are the minimum capital requirements for a GBC company?There are no minimum capital requirements to form a GBC company.
What are the main tax advantages of an authorized company?It is tax-free if properly structured.
What are the reporting requirements for an authorized company?Under the Finance Act 2009, a corporation holding a Category 2 Global Business License (“GBL 2”) is required to file with the Financial Services Commission annually. An authorized company 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.
How private is an authorized company?There is no public register of directors and shareholders for this type of Company.
Are there any restrictions on ownership of an authorized company?No. A foreigner can own 100% of a Mauritius authorized company.
What is the minimum number of shareholders and directors required to form an authorized company?Only one shareholder and director is required. Nominee shareholders and directors are permitted.
What is the main difference between a GBC company and authorized company?A GBC company has access to and can benefit from Mauritius’ network of double tax agreements, while an authorized company (also known as a International Company) cannot. Additionally a Mauritius authorized company is exempt from all taxes on income derived outside Mauritius.
Do a GBC company and authorized company require a company Secretary?Yes, a company secretary is required for both GBC company and authorized company.
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.