Mauritius offshore companies in 2022
Businessmen who wish to setup tax efficient companies in Mauritius have two options: setup a global business company or an authorized company. While the second is the classic offshore company; the first is a tax resident company that can benefit from an 80% exemption of corporate income tax. Both entities are optimal solutions for Clients involved in international trading and holding activities.
Mauritius also offers global investors with two types of investment entities for managing their offshore funds, namely the Collective investment schemes and the Close-ended or private equity funds through an investment holding company which allows them to invest across asset classes.
Advantages
- Authorized companies and GBC pay a corporate income tax of 0% and 3% respectively on their global income, much lower than the 15% tax imposed on other resident companies;
- Furthermore, both companies are also exempt from paying i) withholding tax on earning interest and dividends remitted abroad; and ii) capital gains tax;
- While an authorized company is only allowed to do business outside of Mauritius, GBC that has been approved by the Mauritius FSC may trade with local companies;
- GBC can also take advantage of Mauritius double-taxation avoidance treaties as they are considered tax resident companies;
It is mandatory for an authorized company to file a return of its income with the Mauritius Revenue Authority; - GBC and authorized companies are optimal structures for Clients that are seeking privacy, as company records are not available to the public.
Disadvantages
- Mauritius is still considered as a tax haven country, therefore companies incorporated in the island may attract additional scrutiny from tax authorities and banks;
- GBC is required to appoint two resident directors that must be actively involved in the management of the company, and may be frequently required to provide additional evidence that are managed from Mauritius;
- Furthermore, GBC must i) have a local bank account; and ii) submit audited financial statements to the Mauritius FSC;
- Both GBC and authorized companies are required to appoint a local company secretary/authorized agent, who must have been pre-approved by the Mauritius FSC;
- Authorized companies are not allowed to be involved in the following activities:
- Banking;
- Financial services;
- Insurance;
- Company formation services.
- Furthermore, authorized companies are not allowed to trade with local customers in Mauritius.
Table of Comparison between GBC and Authorized company
| GBC | Authorized company | |
|---|---|---|
| Corporate structuring considerations | ||
| Minimum number of shareholders? | 1 | 1 |
| Wholly foreign-owned? | Yes | Yes |
| Minimum number of directors? | 2 | 1 |
| Corporate director allowed? | No | Yes |
| Resident director required? | Yes | No |
| Resident company secretary or authorized agent required? | Yes | Yes |
| Business activities considerations | ||
| Legally tax exempt in Mauritius? | No | Yes |
| Corporate income tax? | 3% | 0% |
| Can trade with local customers? | Yes | No |
| Can do business within Mauritius? | Yes | No |
| Can open a local corporate bank account? | Yes | Yes |
| Can open bank account overseas? | Only 2nd account | Yes |
| Can rent local office? | Yes | No |
| Can hire staff in Mauritius? | Yes | No |
| Allowed to own shares in Mauritius companies? | Yes | No |
| Can apply for immigration visa? | Yes | No |
Bejarano ADF Consultants Group PLC does not recommend our Clients establish a business in Mauritius, due to the poor business environment provided by the Mauritius Government and Financial Services Commission to multi-national organisations. Bejarano ADF Consultants Group PLC instead recommends our Clients establish their businesses in these reputable zero tax jurisdictions.
