Company Registration in Mauritius : Mauritius is an island country in the Indian Ocean that has become a premier, international business center. This country in the last two decades has enjoyed unprecedented socio-economic development and growth, while emerging as a stable political democracy. It wholeheartedly welcomes foreign businesses and investors to be a part of its rising economy. For offshore business formation, Mauritius has rather become a trustworthy and credible jurisdiction, providing investors with greater security and reliability through flexible regulatory framework.
Foreign investment as well as offshore activity is encouraged actively by the Mauritian Government through the Investment Board. Different types of incentives have been introduced by the government for attracting foreign investments. Moreover, consolidation of fiscal and legal framework has only resulted in more user friendly and modern legislation, thereby contributing towards rise of the country as an important offshore financial service center. Development strategies brought out by the government focuses mainly on foreign investment. This in turn has resulted in Mauritius being able to successfully attract offshore entities in thousands.
The country’s credibility for offshore investments is further solidified due to adherence to the latest international requirements that involves fighting money laundering and financial terrorism. It has only facilitated Mauritius to enjoy enhanced reputation as a well-regulated and trustworthy offshore center offering guaranteed confidentiality.
Benefits of registering company in Mauritius
Company formation in Mauritius is considered to be a straightforward and simple process, irrespective of you select an Offshore company (GBC2) or a Resident Company (GBC1 Company). The Mauritius Company, if structured correctly is regarded to be a low cost, efficient, legally tax-efficient entity to conduct business. Several benefits can be derived by incorporating GBC2 & GBC1 Company in Mauritius.Benefits & Features of GBC1 Companies
GCB1 companies have been provided treatment as tax residents. They have the liability to pay taxes upon their earnings. This automatically entitles them to derive benefits offered by the extensive Double Tax Mauritian Treaties. GBC1 can be a foreign company’s branch or a company incorporated locally. Business needs to be conducted using foreign currency, while business cannot be engaged in Mauritius.- 2 shareholder minimum required of any nationality, not necessarily be a Mauritian resident. There are permitted Corporate Shareholders.
- Minimum 1 Director required who needs to be natural person (nominee Directors can be provided by Eltoma)
- There is required resident Company Secretary (Eltoma can offer this).
- GBC1 Companies have been considered as resident and hence, provided with the benefit of Double Mauritian Tax Treaties. Tax treat is favorable specifically with India. For holding companies, including those investing or trading in India can find Mauritius to be a popular location.
- Business could be internationally conducted.
- GBC1 companies are eligible to use unilateral foreign-tax credit standing currently at 80 percent of Mauritian Tax Rate, thus leaving behind 20% residual liability of Mauritian rate, equal to 3%. Current discussions can be made on future potential reductions on the rate.
- No limit on carrying forward the tax losses.
- No withholding of taxes or capital gains levied.
- No withholding of tax on interests, dividends, and redemption proceeds payment and royalties.
- Tax exemption on interest received upon Mauritian bank account deposits.
- Entitled to tax credits upon dividends, in case, Investee Company shareholding is more than 5%.
- No registrar levies or duties and stamp duties.
- Estate and gift tax and inheritance tax not applicable
- The foreign company’s branch may have better access to tax treat network. But to avail this opportunity the local authorities need to be satisfied that the foreign branch’s control and effective management is in Mauritius.
Features & Benefits of GBC2 Companies
GBC 2 Companies are considered to be private entities which conduct business outside the country. However, GBC2 Company cannot conduct business within Mauritius. It can be registered as foreign company branch or locally incorporated. One major benefit derived by GBC2 is confidentiality, while the beneficial owner’s identity is kept largely confidential. The GBC2 is also stated to be a good structure to manage and hold private assets.- No stamp duty levied upon share transfer.
- No withholding tax upon dividends.
- Limited liability enjoyed by GBC2 company without requiring any paid-up capital (as there is not required any minimum capital)
- GBC2 companies offered legal tax exemption. However, no access is provided to Mauritian Double-Taxation Treaty.
- There is required just one Shareholder and One Director.
- Formation of Mauritius company allows 100% foreign ownership. This means, there is not required any local nominee.
- Privacy protection offered to a greater extent (through use of shareholders and nominee Directors)
- No reporting or accounting requirements, thus reducing maintenance expenses.
- No taxation on Capital Gains
- There is permitted conversion to GBC1
- There will be required agent and registered office in Mauritius.
- Directors and shareholders can meet anywhere.
- There is permitted migration to/from Mauritius from any foreign company.
- Free earnings repatriation.
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