Mauritius

The subtropical volcanic island located in the Indian Ocean, to the east of Madagascar.

Capital

Port Louis

Official language

English

Currency

Mauritian rupee

Government

Parliamentary republic

Economy

The economy of Mauritius is based on sugar production (sugar cane is grown by about 90% of cultivated farmland), on tourism and the textile industry. Offshore and banking sectors are also well developed, as well as fishing.

Legal system

Based on the French and English common law

Corporate law

  • Companies Act 2001
  • International Companies Act 1994
  • Offshore Business Activities (Companies) Regulations 1995
  • Offshore Insurance Regulations 1992
  • Offshore Trusts Act 1992
  • The Trusts Act 2001

Types of companies

  • Global Business Company 1, GBC1
  • Global Business Company 2, GBC2
  • Private Company Limited by Shares
  • Company Limited by Guarantee
  • Public Company Limited by Shares
  • Foreign Company
  • General Partnership
  • Limited Partnership
  • Trusts

Global Business Company 1, GBC1

  • An offshore company is characterized as a company, leading its activities in Mauritius with residents of other countries in a currency other than the Mauritian rupee.
  • An offshore company can be registered as local one or as a branch of a foreign company.
  • The company must not conduct any business on the island. The only permitted activities are: receiving advice of professionals, employmentt of citizens of Mauritius and renting property.
  • A company is considered resident and therefore can take advantage of the treaty on avoidance of double taxation, signed by Mauritius.
  • Companies pay a fairly high annual fee, but are exempt from filing annual reports.
  • GBC1 is suitable for activities such as fund management, collective investment schemes, intellectual property, trade and consulting. For managing of private assets, GBC2 or Trust are more suitable.

Global Business Company 2, GBC2

  • No requirement of minimum share capital, but at least one share must be issued and paid.
  • Bearer shares are not allowed. Other shares may be issued with par value and without it. Redeemable preference shares may be issued too.
  • Only one director and one shareholder are required.
  • GBC2 is considered as non-resident company and therefore it does not apply treaties on avoidance of double taxation.
  • The citizens of Mauritius may not own shares in GBC2.
  • GBC2 can not offer shares for public subscription, conduct banking or insurance business, own property in Mauritius, own or manage collective investment funds, provide nominee directors and shareholders.
  • Companies do not need to file annual accounts.
  • Annual fee for these companies ismuch smaller than the fee for GBC1.

Taxation of company

GBC1 pay 3% tax on profits earned outside the island. GBC2 do not pay tax on profits earned outside Mauritius. The island has no capital gains tax and taxes on distribution of dividends. VAT in Mauritius is 15%.

Agreements on avoidance of double taxation

Botswana, Madagascar, China, Malaysia, France, Pakistan, Germany, Swaziland, India, Indonesia, Sweden, Italy, Great Britain, Luxembourg, Zimbabwe, South Africa, Singapore, Kuwait, Namibia, Sri Lanka, Thailand, Oman, Russia, Lesotho.