Mauritius: A Rising Star in the Offshore Business Universe

Have you ever heard of Mauritius? If you haven’t yet, it is the right time to fix this gap in your geographical knowledge. Recognized for its stable democratic governance, pristine beaches, and the unique feature of not having an official language, the nation currently is a powerful offshore center. We will tell you more, Mauritius is characterized not only by a sophisticated banking sector and a varied economy but also by appealing legislation, which turns the country into an attractive destination for both investors and business founders.

Any entrepreneur exploring this opportunity will be happy to learn that Mauritius offers a variety of business structures, with low tax rates and an esteemed reputation. This fact is reflected in the nation’s GDP, which outpaces that of many other favored tax havens.

As of 2024, Mauritius’ reputation as a business hub is on the rise, attracting entrepreneurs from Africa, Europe, India, and China. For those seeking a strategic location for their office in the Indian Ocean region, Mauritius is an excellent option, thanks to its growing economy and political stability.

Company types in Mauritius

The island’s standout offerings include the Global Business Company (GBC) and Authorized Company.

The GBC stands out in Mauritius’ offshore sector, offering an appealing tax rate as low as 3%. What is more, GBCs also benefit from Mauritius’ 40 Double Taxation Treaties (DTTs).

These resident companies offer a significant advantage: ownership and directorship details are not publicly disclosed, allowing for private legal ownership. However, directors are required to attend meetings in Mauritius, and this requirement is often met by appointing a proxy for attendance.

Overall, the above entities resemble Limited Liability Companies (LLCs) in their structure, while also sharing certain traits with traditional International Business Companies (IBCs), namely, a solid reputation, privacy, and low tax obligations.

Authorized companies are entirely non-resident. As such, these entities aren’t allowed to operate within Mauritius. However, they may engage in business activities outside the island, enjoying a tax rate of zero percent. While authorized companies do not benefit from Double Taxation Treaties (DTTs), they still closely resemble traditional International Business Companies (IBCs).

For both authorized companies and GBCs, the tax rate is significantly lower compared to the 15% rate applied to local companies that operate exclusively within Mauritius.

A limited partnership is a distinct business structure featuring at least one general partner and one or more limited partners. While limited partners are not permitted to manage the company or sign for it, their rights remain safeguarded. This relatively new entity type is rapidly gaining traction in Mauritius.

Global Business Companies (GBCs) and partnerships may obtain Global Business Licenses (GBLs) for licensable activities. A Class 1 GBL necessitates a resident director, whereas a Class 2 GBL permits a non-resident director.

Details regarding ownership and directorship are maintained in private registers, ensuring confidentiality. A company of this type must have a sole owner. GBCs are obliged to employ two resident individual directors, while authorized companies require one director, which may be a corporate entity. Both entity types must appoint a resident secretary.

Taxes as a vital issue for Mauritius companies

Global Business Companies (GBCs) in Mauritius are taxed at 3% on foreign-sourced income and 15% on income from local sources, with the benefit of double taxation treaties (DTTs) still applicable. To operate a business within Mauritius, obtaining a permit is mandatory.

Authorized companies enjoy a tax-exempt status; however, they do not qualify for the advantages of DTTs.

For tax purposes, partnerships in Mauritius are considered transparent entities. Depending on the type of license acquired, they may incur taxes ranging from 0% to 15%.

Both GBCs and authorized companies are not subject to taxes on interest and dividends remitted overseas, nor do they pay capital gains tax. These entities are well-suited for international trading companies and can be used as vehicles for capital accumulation.

Corporate banking in Mauritius

Mauritius, an offshore jurisdiction, boasts a well-developed banking sector that attracts significant investment due to its stability and predictability. It stands out as one of the rare non-European jurisdictions equipped with an IBAN system, which enhances its appeal. However, SEPA is not yet implemented.

While foreign companies can open merchant accounts, it is generally recommended to establish a local business for this purpose.

Banking services in Mauritius receive positive reviews for their cost-effectiveness and efficiency. The process for opening accounts is swift, and a variety of card products are readily available. Additionally, setting up a multi-currency account is a breeze.

For start-ups, Mauritius is considered an ideal offshore location.

Enjoying your life in Mauritius

Mauritius boasts a vibrant tourism sector with robust air connectivity, offering regular flights to various global destinations, including Africa, the UAE, and Europe.

While the island’s small and secluded nature may not appeal to everyone, it holds great allure for some. These individuals, particularly retirees, can benefit from a local residency program. Eligibility requires being over 50 years old and having a reliable income. The residence permit is valid for up to 10 years and is renewable.

Residence permits are also available to investors, professionals, and self-employed individuals.

In a matter of 3 years, the following categories of applicants will be eligible for permanent 20-year residence:

1. Investors that ensure the minimum annual turnover of MUR 15 million and a total 3-year turnover of MUR 45 million and more.
2. Professionals that get a salary of at least MUR 150,000 for a minimum of three years
3. Self-employed that have an income of MUR 3 million for 3 years in succession.
4. Retired persons must transfer at least USD 54,000 in 3 years.

Investors who contributed USD 375,000 or more are eligible to apply for permanent residency.

To sum it all up, in Mauritius, you are sure to find an ideal environment for setting up an offshore entity with extensive powers and the benefit of double taxation treaties.

If you are fascinated by the idea of living and doing business in this fairy-tale state, don’t hesitate to contact us for more details! International Wealth and our seasoned experts are always here, right at your fingertips. Book a consultation with us today to enjoy your life and business in Mauritius tomorrow! Alternatively, don’t hesitate to read more about the offshore jurisdiction of Mauritius at the source link.