Offshore Company in Mauritius

Offshore Company in Mauritius

1. Why Mauritius?

The attraction to Mauritius comes as a premium to the level of business that can be done on the island or through its system. It has about 37 Double Taxation Avoidance Treaties amongst which growth nations such as India, China, South Africa and mature economies such as UK, France And Germany. In its annual survey the World Bank has ranked Mauritius 17th and number 1 in Africa as the place to do business.

2. Legal Framework

Mauritius has the Legal system that is derived from the British. The Legal framework is a mix of British and France texts. Most laws are in English, including the Mauritius constitution. The Civil Code is based on the old French Law, the ' Code Napoleon '.

3. Banking

The banking sector is regulated by the Bank of Mauritius. The globally known banks such as Barclay's, HSBC, Standard Bank, Standard Chartered, Caissed'Epargne, Deutsche Bank are present Banking regulations follows Basle II model.

4. Financial Regulatory Authority

The Financial Services Commission (FSC) is the regulator for all non-banking Financial Services.

5. Taxation

5. a. Corporate Tax

Domestic companies having activities in Mauritius 15%, global companies which are tax resident 3% , international companies which are not tax resident are exempt from Income Tax.

5. b. Personal Tax Rates

15% Individuals are exempt annually Rs 255,000 and Rs 465,000 varying on number of dependents.

5. c. Social Security

Employers' contribution of basic salary up to Rs 975. Employees contribution of basic salary up to Rs 459.

5. d. Custom & Excise Duties

Luxury goods can attract up to 100% customs duty. Electronic goods between 15% & 30%. No VAT on basic essential foodstuff.

5. e. V.A.T.

VAT is 15%.

5. f. Tax Incentives

Companies having a Global Business Licence have an automatic tax credit of 80% on the base tax of 15%, hence leaving a rate of tax payable of 3%. Domestic tax Law may also recognize as credit all actual foreign tax paid.

6. Main Types Of Corporate Forms

• Company limited by shares
• Company limited by guarantee
• Limited life company
• Protected cell company
• Company with a Global Business Licence 1 (offshore)
• Company with a Global Business Licence 2 (international co)
• Partnership
• Trust

7. Company Incorporation

It takes minimum 3 days to incorporate a domestic company which can trade and have activities on the island. The cost of setting up is around Euro 700. For a Global Business Licence 1 (GBL 1) (cannot trade on the island) company it takes about 3 weeks to incorporate with a cost of about EUR 6,000. A Global Business Licence 2 (GBL 2) company (international company) is incorporated with in about 2 weeks at cost of about Eur 3,000.

8. Reporting & Auditing

Mauritius has been one of the first countries in the world to adopt IFRS since 2001. Domestic companies with turnover of less than Rs 50m ( Eur 1.25m) need not prepare full financial statements under IFRS. GBL 1 need full IFRS compliant financial statement. However, GBL 2 need prepare only a prescribed financial summary. The Auditing framework is International Standards on Auditing.

9. Special Notes / Country Update

Mauritius is the Largest medium for FDI into India because of the double tax avoidance treaty agreement which it has with India. The main incentive with this being that the company investing in India is not Liable to Capital Gains Tax. The Mauritius Rupee is stable vis a vis the major currencies such as the US Dollar (US D 1 : Rs 30) and EURO (Eur 1: Rs 40). There is no exchange control in Mauritius.