Mauritius

The Republic of Mauritius is located in South Africa on a number of small islands near its larger counterpart, Madagascar. It sits upon the waters of the Indian Ocean. The economic foundation of Mauritius is based on the production and sale of sugar, the tourism industry and the textile industry, making it a country with a high standard of living among others in Africa.

The Republic has a combined legal system, namely: legal proceedings in the field of entrepreneurship are mainly of the nature of the legal system of Great Britain. However, substantive law is based more on the French Napoleonic code.
The official currency unit is the Mauritian rupee. English is the national language; however, French is the most spoken and local language.
The Republic pursues an active foreign policy aimed at international integration and cooperation. Member of many international organisations: WHO, WIPO, AU, IAEA, ACP countries, etc.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

From all the possible types of advantages that open up to the founders when incorporating a company, it is definitely worth noting:

  1. The corporate tax rate is only 15%. (Can be substantially reduced).
  2. The Mauritian legal system has its roots in French and English law.
  3. The incorporation procedure is relatively easy and simple due to the lack of strict requirements for setting up and running a business in Mauritius.
  4. A large number of double taxation treaties have been concluded.
  5. Mauritius has a well-developed banking system. Many people receive substantial income from their investments.

Type of legal entity:

Under current legislation in Mauritius, it is possible to register your business in the following legal forms:

a company limited by shares;

Shareholders are liable to the extent of their capital contributions for the company's obligations to its creditors.

a company limited by guarantee;

The liability of company members to third parties is limited to a fixed amount of the guarantee.

a company limited by both shares and guarantee;

The company has both share capital and a fixed amount of guarantee, within the limits of which the shareholders (members) are liable for the company's obligations, in the event that the company's own assets are insufficient to meet its obligations to third parties.

an unlimited company.

The liability of the shareholders (participants) is not limited to the amount of contributed share capital contributed.

Any of the above-mentioned legal forms can be either private (restriction on the circulation of shares and the number of shareholders/participants - a maximum 50) or public.

To date, in the current version of the Mauritius Companies Act 2001, companies can be either a GBL (Global Business Licence) or an Authorised Company. This type of company is determined by the issuance of an appropriate type of licence by the authorities.

GBL will be required for all resident companies. An Authorised Company (AC) is an entirely new type of company, the business activities and actual management of which are conducted outside Mauritius. There are restrictions regarding the type of activities of this type of company: it is forbidden to conduct banking, financial and trust business.

Features of company incorporation:

Based on an analysis of the current legislation regulating business entities, the following can be said regarding the specifics of the company incorporation procedure:

  1. the need to come up with a unique company name. the name can be chosen arbitrarily, however, it must have the ending LTD, LIMITED, CORPORATION, INCORPORATED, PUBLIC LIMITED COMPANY.
  2. Determine the structure and type of activity of the company.
  3. The company's registered office and registration agent must be in Mauritius.
  4. The registration application must specify the full name and residential address of each shareholder.
  5. At least one director must reside in Mauritius.

Taxes and fees

The state has the following taxation features:

  1. Mauritius applies a basic corporate income tax rate of 15%.
  2. A corporate resident of Mauritius may be taxed on their worldwide income.

It should be noted that it is possible to reduce the tax base by 80% for the following types of income:

  1. income derived from permanent establishments in other states;
  2. dividends received from foreign sources;
  3. income from investment funds from abroad;
  4. etc.

Due to such tax holidays, the tax rate can range from 0% to 3% on average.

VAT is charged by VAT-registered entities at a standard rate of 15% on all goods and services supplied by them in Mauritius (except those taxed at 0%), except for the following (non-exhaustive list):

  1. Wheat and cereal flour (except wheat flour);
  2. Medical, hospital and dental services, including clinical laboratory services, services provided in medical institutions and veterinary services;
  3. Education and training services are provided by institutions approved by the Mauritius Qualifications Authority;
  4. Sale or transfer of the building for residential use.

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