What are the main advantages of incorporating a company (business) in Mauritius?

1. Promising Location and Strong International Integration

Mauritius, located in the Indian Ocean between Africa and Asia, is a strategic bridge to access the markets of Africa, South Asia, and the Middle East. As a member of the African Union, SADC, and the Commonwealth, the country offers companies privileged access to a vast network of trade and investment partners.

2. Favorable Tax Regime

Mauritius boasts one of the most competitive tax systems in the region: a low corporate tax rate, no capital gains tax, no inheritance tax, and no tax on dividends. In addition, the country has signed over 45 Double Taxation Avoidance Agreements (DTAAs) with other nations.

3. Easy Company Formation and Efficient Regulation

Setting up a company in Mauritius is a fast and transparent process that can be done remotely. The country’s regulatory authorities provide digitized, client-focused services, and its corporate governance framework aligns with international standards. This creates a stable business environment with minimal administrative barriers.

4. Advanced Financial Services and Global Connectivity

Mauritius features a well-developed financial sector, with world-class banks, international funds, and insurance firms. This makes it an ideal base for financial, investment, and hedge fund activities. Furthermore, the country offers strong air and digital connectivity with major global hubs, facilitating international operations.

5. Commitment to International Standards and Reputation for Transparency

Mauritius actively implements anti-money laundering (AML) and counter-terrorism financing (CFT) policies, maintaining a strong reputation as a responsible jurisdiction. Companies registered here gain additional trust from partners, banks, and investors by adhering to international norms, which is particularly important for businesses operating in high-risk or cross-border sectors.

How to register a company in Mauritius and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verification and reservation of the company name at the Mauritius Registrar of Companies;
• Facilitating the notarial process for the company’s official registration;
• Incorporating the company’s data into the the Registrar of Companies;
• Obtaining the Certificate of incorporation from the Registrar of Companies, Memorandum and Articles of Association;
• Opening a corporate bank account.

Requirements for registering a company in Mauritius on the example of an Authorized Company (AC):

• Shareholders: the company is required to have at least 1 shareholder. The shareholders of the company can be a non-resident of Mauritius.
• Director: the company must appoint at least 1 director. There are no requirements for the director residency.
• Company secretary: there is no requirement.
• Minimum share capital: there is no minimum capital requirement.
• Legal address: the company is obliged to have an official registered office address in Mauritius.
• Registered agent: appointment of a local registered agent, who must be a management company, is compulsory. This agent maintains and stores all company documentation.
• Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
• Accounting: the company is not required to file annual financial statements. It shall only prepare such accounts and keep them in Mauritius or, if so ordered by a director of the company, outside the jurisdiction. Nevertheless, the company must file an annual return with the Registrar of Companies.

What do you have to know about taxes when registering a company in Mauritius:

Corporate income tax (CIT):

• The basic CIT is 15% for resident and licensed companies in Mauritius.
• Companies involved in the export of goods are taxed at a rate of 3% of taxable income.
• Authorized companies are exempt from tax on income from foreign sources, while income derived from Mauritius is subject to tax.

Personal income tax (PIT):

• A resident of Mauritius is required to pay tax on his worldwide income, whereas a non-resident is required to pay tax on income derived from sources in Mauritius.
• Individuals receiving annual net income up to MUR 700,000 (approx. €13,799) are subject to income tax at the rate of 10%.
• The income tax rate rises to 12.5% if their annual net income does not exceed MUR 975,000 (approx. €19,220).
• But if their basic salary exceeds MUR 975,000 – it will be taxed at 15%.

Value-added tax (VAT):

• The standard VAT rate is 15%.
• Some goods and services are exempt from VAT: medical, hospital, and dental services, including clinical laboratory services, services provided in a health institution, and veterinary services; educational and training services provided by institutions approved by the Mauritius Qualification Authority; sale or transfer of buildings for residential purposes; all musical instruments, including parts and accessories; some of the banking services, etc.
• The entities must register for VAT if turnover exceeds MUR 6 million (approx. €118,278) a year.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Mauritius. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Mauritius, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Mauritius and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.