Authorized Company (Private company limited by shares)
Mauritius is a politically stable jurisdiction and the largest international financial and business hub in the Indian Ocean region with a strong liberal economy, a reputable banking system and a wide offer of qualified professional services.
Since January 1, 2018, the Global Business License Category 1 (GBC1) has been modified and renamed as Global Business License (GBL), and the Global Business License Category 2 (GBL2) has been abolished and replaced by the ‘Authorized Company’ (AC) license.
The Authorized Company is a new license issued by the Mauritius Financial Services Commission (FSC) and shares common features with the abolished GBC2 company, and will be able to carry out the same type of activities.
A Mauritius company incorporated by non-Mauritius residents where its place of effective management is outside of Mauritius will be required to seek an Authorized Company status.
To determine the place of effective management all the relevant facts and circumstances that relate to the business activities of the company must be examined. Generally, a company shall be deemed to have its place of effective management in Mauritius if:
- the strategic decisions relating to the company’s core-income generating activities are taken in, or from, Mauritius;
- and the majority of the Board of directors’ meetings are held in Mauritius, or the executive management of the company is regularly exercised in Mauritius;
Companies with their place of effective management outside Mauritius and granted an Authorized companies status will be deemed non-resident for tax purposes (and thus be exempted from income tax) in Mauritius.
However, an Authorized Company will be required to submit a return of income to the Mauritius Revenue Authority (MRA) within six (6) months of its accounting year-end period.
Legal
Country code – MU
Legal Basis – Mixed (Civil and Common law)
Legal framework – The Companies Act 2001, Financial Services Act 2007, the Finance (Miscellaneous Provisions) Act 2012, the Finance (Miscellaneous Provisions) Act 2018
Company form – Authorized Company (Private company limited by shares)
Liability - The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
Share capital – There is no minimum stated capital requirement. Shares may be denominated in any currency, except MUR. Shares may be of par value or no par value and must be fully paid up.
Shareholders – Authorized companies may be formed by a minimum of one shareholder and a maximum of 25, who can be either natural or legal persons and may be non-residents. Details of shareholders are not publicly disclosed. The use of nominee shareholders is permitted.
Directors – At least one director is required, who may be a natural person or a legal entity. Directors’ details are not available to the public.
Secretary – The appointment of officers such as a secretary is optional, and may be an individual or a corporation, resident or non-resident.
Registered Address – Authorized companies must have a registered office in Mauritius, provided by an authorized registered agent.
General Meeting – Authorized companies must hold an annual general meeting of its shareholders, which can be held anywhere. The first annual shareholder meeting should be held not later than 18 months from incorporation. Annual shareholder meetings should be held not later than 6 months after the balance sheet date of the company and not later than 15 months after the previous annual meeting.
Electronic Signature – Permitted.
Re-domiciliation – Permitted.
Compliance – An Authorized Company is required to submit a return of income to the Mauritius Revenue Authority (MRA) within six (6) months of its accounting year-end period.
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Mixed (Civil and Common) Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- - Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2018 AEOI
Taxes
Corporate income tax – Companies with their place of effective management outside Mauritius and granted an Authorized companies status will be deemed non-resident for tax purposes (and thus be exempted from income tax) in Mauritius.
Other taxes – In Mauritius, there is no capital gains tax, real property tax, inheritance tax or estate duty, capital transfer tax, gifts tax or wealth tax. The main tax on resident individuals is an income tax at a 15% rate. To be a tax resident an individual must spend more than 6 months in the country in a year.
There is VAT at 15% levied on the supply of goods and provision of services.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- - Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 15% Personal Income Tax Rate
- 56 Tax Treaties
Country details
The Republic of Mauritius is a sovereign island country located in the southwest of the Indian Ocean, about 900 kilometers from Toamasina, a town on the easternmost coast of Madagascar and approximately 3800 kilometers southwest of Cape Comorin on the southern tip from India.
In addition to the island of Mauritius, the republic includes the islands St. Brandon, Rodrigues and the Agalega Islands. Mauritius forms part of the Mascarene Islands, along with the French island of Reunion, about 170 kilometers to the southwest.
Mauritius is inhabited by about 1.4 million people. Its capital and the most populated city is Port Louis.
The people of Mauritius are multiethnic, multi-religious, multicultural and multilingual. The Mauritian Creole, French, English, and Bhojpuri are its vernacular languages, plus other 9 languages spoken in the territory.
Its official currency is the Mauritian rupee (MUR).
Mauritius is highly ranked for democracy and for economic and political freedom.
The Head of State of Mauritius is the President, who is elected for a period of five years by the National Assembly, the Mauritian unicameral parliament.
The National Assembly has 62 members elected by direct and popular suffrage and comprises between 4 and 8 members elected by minorities representing ethnic minorities, depending on the election results. The government is headed by the prime minister and a council of ministers.
Since its independence from the British in 1968, Mauritius has seen a dazzling evolution.
The island went from being a low-income country with per capita income, in which the economy was based on agriculture, to be a country with the status of an emerging and constantly developing country with intermediate incomes and a diversified economy based on a growing industrial, financial and tourism sector.
During this period of economic growth, the country grew at a rate of 5 to 6% per year. This result translates into a significant improvement in the quality of life and a significant increase in life expectancy, a decline in infant mortality and a great infrastructural development.
Regarding the primary sector, sugar cane accounts for 90% of crops and accounts for 25% of exports. Livestock in Mauritius mainly comprises porcine and caprine, and fishing is also an important source of income.
Its main industrial sectors are the textile, information and communications technology and seafood processing, as well as petrochemical and chemical industry in Port Louis.
Tourism is its more prominent sector and a significant source of its foreign exchange revenues. Mauritius is a growing tourism destination for its natural beauty and man-made attractions, multi-ethnic and cultural diversity of the population, tropical climate, beautiful beaches, and water sports.
The financial sector is a major economic pillar on Mauritius economy, with more than 10,000 offshore companies incorporated and a comprehensive offer of banking, insurance and reinsurance services, captive insurance managers, trading companies, ship owners or managers, fund managers and international corporation services.