From strategic geographic positioning to attractive tax benefits, setting up an offshore business in Mauritius offers a world of opportunities for savvy entrepreneurs. The country consistently ranks as the best in Africa for ease of doing business thanks to its business-friendly legislation, hybrid legal system, political and economic stability, and bilingual workforce. If you are looking to tap into the benefits of an international business destination, Mauritius might just be the perfect place to consider.
Types of Offshore Companies in Mauritius
Mauritius offers two main offshore entity types, each catering to different business needs. Choosing the right one depends on your objectives, the scope of your business, and how much tax you are willing to pay.
Global Business Company (GBC): A Global Business Company is ideal for businesses primarily operating outside of Mauritius, but wishing to benefit from the country’s favourable tax and regulatory framework. To qualify as a GBC, a company must be managed and controlled from Mauritius – with at least two local directors, one individual or corporate shareholder, a registered office within Mauritius, and an auditor based in the country. GBCs enjoy significant tax advantages, including access to Mauritius’ extensive network of Double Taxation Avoidance Agreements (DTAs). The GBC structure is popular for businesses involved in international trade, investment funds, and financial services, as it offers a flexible yet tax-efficient framework with the potential for an effective tax rate as low as 3%.
Authorised Company (AC): An Authorised Company is structured for businesses operating outside Mauritius and considered non-resident for tax purposes. As such, an AC does not pay tax in Mauritius, making it highly attractive for companies that do not require tax residency or access to Mauritius’ DTA network. ACs are also not subject to the same level of regulatory scrutiny as GBCs, offering a simpler and more cost-effective setup with fewer compliance requirements. This low regulatory burden, combined with the absence of local taxation, makes ACs a popular choice for international trade, investment holding, and other activities where tax efficiency is paramount. However, the downside is that an AC cannot benefit from Mauritius’ DTAs and is subject to more limited legal protections.
Offshore Mauritius Business Setup: Tax Benefits
Mauritius is renowned for its pro-business environment and advantageous tax regime, particularly for offshore companies. Here are five standout benefits of setting up an offshore business in Mauritius:
Low corporate tax rate
Mauritius offers one of the most attractive corporate tax rates globally. The standard corporate tax rate is 15%, but GBCs that meet certain requirements can benefit from an effective tax rate as low as 3%. This low tax rate and the absence of capital gains tax provide significant savings for businesses.
No withholding tax on dividends
For businesses looking to distribute profits to shareholders, the absence of withholding tax on dividends is a major advantage. This means that offshore companies in Mauritius can freely distribute earnings to non-resident shareholders without worrying about additional tax liabilities.
Extensive double taxation avoidance agreements
Mauritius has signed DTAs with over 45 countries, including major economies like India, China, and the UK. This network ensures businesses can avoid being taxed twice on the same income, providing a clear financial advantage for companies operating in multiple jurisdictions.
Exemption from capital gains tax
One of Mauritius’s most significant tax incentives is the exemption from capital gains tax. This is especially beneficial for companies involved in investment holding or real estate, where the appreciation of assets plays a key role in profitability.
Tax Incentives for Freeport companies
While not applicable to all offshore structures, companies operating within Mauritius’ Freeport zones enjoy further tax incentives. These include VAT and customs duties exemptions, providing a highly competitive landscape for trade and export-oriented businesses.
How to Set Up an Offshore Business in Mauritius
Starting an offshore business in Mauritius is a straightforward process, but it does require compliance with local regulations and procedures. For this reason, we always recommend working with an experienced partner, such as Creative Zone, to help you navigate the process efficiently and with ease. To give you an idea of what to expect, we have broken down the process into five simple steps:
Step 1: Choose your offshore structure
The first step is determining which type of offshore entity will work best for your business objectives. A GBC benefits from a low effective tax rate and access to DTAs. It is suitable for businesses that operate internationally but are managed from Mauritius. However, GBCs face more regulatory requirements, including the need for local directors and a physical presence. An AC, on the other hand, is considered non-resident and is exempt from paying Mauritius taxes, making it attractive for businesses operating entirely outside the country. The downside is that ACs cannot benefit from DTAs and face restrictions on certain activities.
Step 2: Appoint a registered agent
Every offshore company in Mauritius must appoint a registered agent. Creative Zone is licensed to assist in this field and can help handle all regulatory requirements, including liaising with the Financial Services Commission (FSC).
Step 3: Submit the necessary documents
Once you have decided on the structure, you will need to complete your incorporation documents. This includes submitting your Memorandum and Articles of Association, and completing an application for registration. If you choose to work with Creative Zone, we can handle this process for you.
Step 4:Obtain your business license
Depending on the nature of your business, you may need to apply for specific licenses or permits from the authorities. This is particularly relevant for companies engaged in financial services, investment holding, or international trade.
Step 5: Open a corporate bank account
Once you have obtained your license, you can open a corporate bank account in Mauritius. This is essential for managing the company’s finances and adhering to local compliance regulations. Many banks in Mauritius offer tailored banking solutions for offshore entities, providing flexibility in currency management and international transactions. Creative Zone can advise you on the best bank set-up for your business while guiding you through every step of this process, in order to ensure that your offshore company is set up swiftly and efficiently.
About Creative Zone
Creative Zone is one of the UAE’s largest and most trusted business setup consultancies, offering a wide range of corporate services to help entrepreneurs and businesses establish offshore entities. With expertise that spans multiple international jurisdictions, including Mauritius, we are well-positioned to assist with every aspect of setting up an offshore company.
Whether you need help choosing the right company structure, navigating regulatory requirements or maximising your tax benefits, Creative Zone has the knowledge and resources to ensure a smooth setup process. Contact us today to learn more about how we can help you with your offshore Mauritius business setup.
