A Comprehensive Guide to Offshore Companies in Mauritius

Mauritius is a popular destination for setting up an offshore company, thanks to its business-friendly environment and favorable tax regime. The country's strategic location in the Indian Ocean, midway between Asia and Europe, makes it an attractive hub for international trade and investment.

The Mauritius International Financial Centre (IFC) is a key player in the country's offshore industry, providing a range of financial services and products. The IFC is regulated by the Financial Services Commission (FSC), which ensures that all financial institutions operating in Mauritius meet strict standards.

One of the main benefits of setting up an offshore company in Mauritius is the low tax environment. Companies are exempt from paying tax on income earned outside of Mauritius, making it an attractive option for businesses looking to minimize their tax liability.

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Mauritius is ranked by the World Bank as the most business-friendly country in Africa.

Its business-friendly environment is a major draw for foreign investors, who benefit from a sound regulatory framework and good corporate governance.

The island's economic diversity, political and social stability, and extensive agreements with other African countries make it an attractive destination.

A reliable banking system and skilled bilingual workforce are also key advantages for companies looking to set up shop in Mauritius.

The absence of exchange controls and capital gains and withholding taxes is a significant perk for investors.

The Mauritian government's commitment to international standards, including anti-money laundering laws and those against the financing of terrorism, adds to the island's appeal as a secure international financial hub.

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Mauritius offers a favorable business environment for offshore companies, with a low tax regime and a well-established financial sector.

The benefits of setting up an offshore company in Mauritius include tax exemptions on profits, dividends, and capital gains.

Mauritius has a double taxation avoidance agreement with over 40 countries, making it an attractive destination for international businesses.

To benefit from these advantages, offshore companies in Mauritius must meet certain requirements, such as being licensed by the Financial Services Commission (FSC).

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When setting up an offshore company in Mauritius, you'll need to provide certain documents to fulfill the due diligence requirements.

Your passport copy will be required, which will need to be certified by a bank in Mauritius - we work with the biggest local banks and Barclays branch.

You'll also need to provide proof of address and a reference.

To clarify, here are the specific documents needed for due diligence:

Mauritius offers a developed financial and banking system, making it an attractive destination for businesses.

This stability is also reflected in the country's political stability, which is a crucial factor for investors.

The absence of currency control rules in Mauritius provides businesses with the freedom to manage their finances as they see fit.

It's worth noting that Mauritius is not considered a low-tax or zero-tax jurisdiction, which means you won't find it on any blacklists.

In fact, Mauritius holds a strong position in the business freedom rating, ranking 26th in the world and 1st in its region, according to The Heritage Foundation (2023).

Mauritius has also taken steps to strengthen its intellectual property protection by joining the Madrid Protocol in 2023, giving trademark owners access to protection in 129 countries.

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To set up an Authorized Company in Mauritius, you'll need to meet some initial requirements. The company must be controlled by a non-resident, meaning they hold all the shares, voting rights, and legal or beneficial interests.

Assigning a registered agent in Mauritius is also mandatory. This agent will handle the administration of the AC and has several key duties, including filing the return of income with the Mauritius Revenue Authority and storing company records safely.

The registered agent must also tackle measures to prevent money laundering and terrorist financing. This is a critical responsibility, and the agent must comply with the Financial Services Commission's (FSC) regulations.

To determine if a company is controlled and managed in Mauritius, the MRA considers two key factors. These are:

Offshore companies in Mauritius offer a wide range of business activities, including investment management and real estate investment.

Authorized Companies can carry out various business activities, such as consulting and management services, IT services, and logistics. They can also provide marketing services and manage fleets and ships.

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However, there are certain activities that Authorized Companies are not allowed to carry out, like financial services, including banking, and providing head office, agency, administrative, secretarial, or other corporate services.

Some of the business activities that Authorized Companies can carry out include:

It's worth noting that activities likely to harm Mauritius' reputation as an international financial center or contrary to the public interest are also prohibited for Authorized Companies.

The incorporation process for an offshore company in Mauritius is relatively straightforward. You'll need to appoint local directors, which means you won't have to physically be in Mauritius during the formation process.

The first year of an offshore company in Mauritius is typically the most expensive, with costs reducing in the second year onwards. It's essential to factor in all administrative tasks and fees when setting up an offshore company.

You'll need to choose a management company to handle the proceedings, which should be done with thorough research to ensure you understand their fees and services. This company will also need to comply with various obligations, including filing tax returns and financial statements.

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The company must be managed in Mauritius, where strategic decisions are made and most board meetings are held. This is a crucial aspect of the incorporation process.

Here's a rough estimate of the timeframes involved:

The documentary requirements for KYC (Know Your Customer) on directors and shareholders are thorough, and a detailed Business Plan will be needed to reassure the FSC and banks that the company's operations will be legitimate.

Mauritius offers a range of advantages for businesses looking to incorporate an offshore company. The country has one of the lowest tax rates in the world, with corporate and individual income taxes at just 15%.

The nation's tax system is designed to be attractive to foreign investors, with tax exemptions available for companies that don't transact business with Mauritians or use their currency. This means that offshore companies operating in Mauritius can keep more of their profits.

Mauritius is also a stable and secure country, with a democratically elected government that has maintained stability since independence. This stability is reflected in the country's business environment, which is ranked 26th in the world in terms of business freedom by The Heritage Foundation.

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Here are some key advantages of offshore companies in Mauritius:

These advantages make Mauritius an attractive destination for businesses looking to establish an offshore company.