Overview of Company Registration in Mauritius
Mauritius is a premier international financial center, known for its political stability, business-friendly environment, and robust legal framework. For Indian investors, it serves as an ideal jurisdiction for structuring investments into Africa and Asia, thanks to its extensive network of Double Taxation Avoidance Agreements (DTAAs), including a significant one with India.
Benefits of Registering a Company in Mauritius
- Tax Efficiency: Low corporate tax rates (15% standard, with potential exemptions reducing it to 3%) and no capital gains tax.
- DTAA Network: Access to tax treaties with over 40 countries, including India, reducing withholding taxes.
- 100% Foreign Ownership: Foreigners can fully own companies without the need for a local partner (though local directors are required for GBCs).
- Privacy: Confidentiality of shareholder information is maintained, although beneficial ownership must be disclosed to authorities.
- Ease of Doing Business: Quick incorporation process and English-based legal system.
Types of Companies in Mauritius
For international business, there are two main types of companies:
1. Global Business Company (GBC)
- Tax Resident: Considered a tax resident of Mauritius.
- DTAA Access: Can access benefits of Mauritius's tax treaties.
- Activities: Suitable for financial services, investment holding, and trading.
- Substance Requirements: Must have management and control in Mauritius (2 local directors, bank account, office, etc.).
- Tax Rate: 15% corporate tax, but an 80% partial exemption applies to certain income streams (making the effective rate 3%).
2. Authorised Company (AC)
- Non-Resident: Treated as a non-resident for tax purposes.
- Tax Exempt: Exempt from tax in Mauritius on foreign-sourced income.
- No DTAA Access: Cannot access tax treaty benefits.
- Activities: Suitable for international trading and holding assets where management is outside Mauritius.
- Place of Management: Management and control must be outside Mauritius.
Key Requirements
- Directors:
- GBC: Minimum 2 directors resident in Mauritius.
- AC: Minimum 1 director (can be non-resident).
- Shareholders: Minimum 1 shareholder (individual or corporate).
- Registered Agent: Must appoint a licensed Management Company (MC) in Mauritius to act as the registered agent.
- Registered Office: Must have a physical office address in Mauritius (provided by the MC).
- Capital: No minimum capital requirement, but typically USD 1,000 or USD 100,000 depending on business activity.
Registration Process
- Name Reservation: Submit proposed company names to the Registrar of Companies for approval.
- Due Diligence (KYC): Submit KYC documents (Passport, Proof of Address, Bank Reference) to the Management Company.
- Document Preparation: The Management Company prepares incorporation documents, consents, and constitution.
- Submission: Documents are filed with the Registrar of Companies and the Financial Services Commission (FSC).
- Incorporation: Upon approval, the Certificate of Incorporation and Business Registration Number are issued.
- Bank Account Opening: Open a corporate bank account in Mauritius (may require a video interview).
Taxation & DTAA with India
Mauritius offers a competitive tax regime. GBCs are taxed at 15% but can claim an 80% exemption on specific foreign-sourced income (like dividends and interest), resulting in an effective tax rate of 3%. There is no withholding tax on dividends paid to non-residents.
India-Mauritius DTAA: This treaty helps avoid double taxation. However, recent amendments require companies to meet "Principal Purpose Test" (PPT) and substance requirements to claim treaty benefits, ensuring the structure isn't solely for tax avoidance.
Residency Options (Investor Permit)
Foreign investors can obtain an Occupation Permit (Investor) by investing in Mauritius:
- Investment Threshold: Minimum investment of USD 50,000 in a business activity.
- Validity: Valid for 10 years, renewable.
- Permanent Residency: After 3 years of holding an Investor Permit and meeting turnover criteria, you can apply for a 20-year Permanent Residence Permit.
