Introduction to Registering a Company in Mauritius
Mauritius is a tropical island situated in the Indian Ocean approximately 800 km off the East Coast of Madagascar. The population is approximately 1,200,000 made up mainly by people of European, African, Indian and Chinese origin. As well as being an ideal honeymoon destination, Mauritius provides an excellent opportunity to incorporate a low cost, legally tax-efficient entity to conduct international business. Three main company types that are available in Mauritius are: The GBC1 Company, GBC2 Company and Local Domestic Company.
Main Company Types in Mauritius
- Local Domestic Company
Mauritius LDC are companies incorporated under the Companies Act 2001. They are resident in Mauritius for taxation purposes with a corporate tax rate of 15%. The set up and management cost of such companies are relatively low.
- Mauritius GBC1 Company Formation
Mauritius GBC1s are companies incorporated under the Companies Act 2001 and licensed by the Mauritius Financial Services Commission. They are resident in Mauritius for taxation purposes and have access to Mauritius’ extensive double taxation avoidance treaty network, provided they hold a Tax Residence Certificate issued by the Mauritius Revenue Authority.
- Mauritius GBC2 Company Formation
Mauritius GBC2s are companies incorporated under the Companies Act 2001 with a Category 2 Global Business Licence. GBC2 companies are designed for business outside of Mauritius and may not carry on business in Mauritius (subject to a number of statutory exceptions). GBC2s are commonly used for the holding/ownership of investments and assets (real estate or shares or other property) commercial transactions and international trading operations, asset protection, non-financial consultancy services.
Corporate Taxation in Mauritius
A well structured Mauritius Company Formation can reduce corporate taxation to around 3%. GBC1 Companies have access to over 30 tax treaties. In addition are are no withholding taxes on dividends paid out of income from approved offshore activities, nor is there withholding tax on interest. Also, there is no capital gains tax, no estate duty or inheritance tax payable on the inheritance of shares in an offshore entity. All in all, this makes Mauritius one of the most popular offshore jurisdictions in the world and is especially popular with companies involved in IT Consulting, Telecommunications and Financial Services.
Taxation treaties have been signed by Mauritius with Belgium, Botswana, China, Cyprus, France, Germany, India, Indonesia, Italy, Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Nepal, Oman, Pakistan, Russia, Singapore, South Africa, Sri Lanka, Swaziland, Sweden, Thailand, U.K. and Zimbabwe.
How do I proceed with registering a company in Mauritius?
For more information about setting up an offshore company in Mauritius, please don’t hesitate to contact the incorporation experts at EuroCompanyFormations.com!