The offshore jurisdiction of Mauritius is well-known for its stable democracy, white beaches, and absence of an official language. At the same time, Mauritius is a full-fledged offshore destination with a developed banking sector, diversified economy, and attractive laws, which makes it a promising haven for investors and entrepreneurs.
Mauritius has a lot of unique parameters:
- A dual system that inherited the common and civil law from the UK and France
- Convenient location in the Indian Ocean
- A hub between Africa, Europe, India, and China
- A stable political system and steady economic development
General Information on Mauritius
Capital: Port-Louis
Population: 1.287 million (2023)
Area: 2,040 km²
Official language: none, with English and French predominant
GDP: $11.53 billion (2021)
GDP per capita: $9,106
Currency: Mauritian rupee (MUR)
Business Establishment in the Offshore Jurisdiction of Mauritius
Mauritius proposes several forms of business. It is a unique destination that combines low tax rates and an excellent reputation, and this is easy to see by the amount of GDP as other popular tax havens have a much lower indicator.
GBC, or a Global Business Company, and an authorized company are the special features at Mauritius.
GBC can rightly be called a specialty of the offshore jurisdiction of Mauritius as the tax rate for such companies is as low as 3%. Moreover, GBCs can take advantage of all the 40 DTTs concluded by Mauritius.
It is a resident company with one serious bonus: no information about owners and directors is available in the public register, which allows owning such a company privately on an absolutely legal basis. Nevertheless, the director has the obligation to attend meetings in Mauritius. Business owners usually deal with it by appointing a representative to be present at such meetings.
On the whole, these companies are similar to LLCs. On the other hand, they are similar to classical IBCs with a good reputation, anonymity, and low taxes.
Authorized companies differ as they are 100% non-resident ones and cannot conduct business in Mauritius, but they can carry out activities outside the island at a zero-tax rate. They cannot take advantage of DTTs and are very similar to ordinary IBCs.
In both cases, this is much lower than the 15% tax rate for the local companies that conduct their business in Mauritius only.
Another special category is a limited partnership where you will find one or more general partners and one or more limited partners. Limited partners cannot manage the company or sign documents on its behalf, but their rights are protected. This form has come into existence fairly recently, but it is quickly gaining popularity.
GBCs or partnerships can receive GBLs, or Global Business Licenses, to conduct activities subject to licensing. Class 1 license requires a resident director, while a class 2 license allows for a non-resident one.
The information about owners and directors is kept in closed registers and is not publicly accessible. The company can only be owned by one person. A GBC requires 2 individual directors (residents), while an Authorized company requires one director (it can be a legal entity). A resident secretary is required in both cases.
You can not only register a company but also open a bank account in Mauritius. A resident company (GBC) can open a bank account in Mauritius, while a non-resident company (Global Business Company) can only open a bank account abroad. Besides, the Authorized Company can open a bank account abroad.
An Authorized company has no right to conduct banking, financial, or insurance activity or provide company registration services.
GBC owners are eligible for an immigration visa.
The reputation of Mauritius is getting better every year. The jurisdiction is used for business by entrepreneurs from Africa, Europe, India, and China. If you are looking for a destination to locate your office in the Indian Ocean area, Mauritius could be your ideal choice (especially considering the potentially growing economy and political stability of the region).
FREE EXPERT CONSULTATION
on which jurisdiction is best for
your business, preferred tax regime,
company structure.
on which jurisdiction is best for your business, preferred tax regime, company structure.
Corporate Taxes in the Offshore Jurisdiction of Mauritius
GBCs are subject to a 3% income tax on foreign sources and 15% on local ones (while retaining the advantage of double taxation treaties). However, conducting your business in the territory of Mauritius requires you to get a permit.
An Authorized company is tax-exempt, but it cannot benefit from DTTs.
Partnerships in Mauritius are transparent for tax payment purposes. If they get a license, they may be subject to tax varying from 0% to 15% (depending on the license type).
Neither GBCs nor Authorized companies pay any taxes on interest and dividends payable abroad, and they are exempted from capital gains tax. They are also ideally suited for international trading companies and can serve as capital accumulation instruments.
Banks in the Offshore Jurisdiction of Mauritius
The offshore jurisdiction of Mauritius offers a developed banking sector. Investors are actively putting considerable amounts of money into the country and local banks as they see its stability and predictability.
This is one of the few non-European jurisdictions with an IBAN system, making it even more attractive. No SEPA is available yet.
You can open a merchant account if you wish, but this is frowned upon if you are a foreign company. You should open a local business in this case.
If we talk about the service, on the whole, the island’s banking system gets positive feedback and offers affordable rates. Accounts are opened relatively quickly, and card products are widely available. You can open a multi-currency account without much trouble involved.
Mauritius is regarded as a suitable offshore destination for start-ups.
Life in the Offshore Destination of Mauritius
Mauritius is an active tourist center with well-established air communication. There are regular flights to different parts of the world, including Africa, UAE, and Europe.
On the other hand, the island is relatively small and remote, and this lifestyle is definitely not suitable for everyone. But there are people who find it just marvelous, and they can take advantage of a residency program (which is especially suitable for retirees). You need to be over 50 years of age and receive sufficient income. The residence permit is issued for up to 10 years with a possibility of extension.
Investors, professionals, and self-employed are also eligible for a residence permit.
In a matter of 3 years, the following categories of persons can get permanent residence for 20 years:
- Investors that ensure the minimum annual turnover of MUR 15 million and a total 3-year turnover of MUR 45 million and more.
- Professionals that get a salary of at least MUR 150,000 for at least three years
- Self-employed that have an income of MUR 3 million for 3 years in succession.
- Retired persons should transfer at least 54,000 dollars in 3 years.
Investors that invested 375,000 dollars and more can also apply for permanent residence.
Who is Mauritius Suitable For?
The offshore jurisdiction of Mauritius is an excellent place to establish an original offshore with wide powers and access to double taxation treaties.
It is also good for a rest and quiet retirement. You can find out more about all the details of life and work in Mauritius at a personal consultation that you can book at info@offshore-pro.info.
