Mauritius

Mauritius, officially the Republic of Mauritius is an island nation off the southeast coast of the African continent in the southwest Indian Ocean, about 900 km (560 miles) east of Madagascar. Mauritius Island is part of the Mascarene Islands, with the French island of Reunion 200 km (120 miles) to the southwest and the island of Rodrigues 570 km (350 miles) to the northeast.

There are 2 types of company that can be incorporated in Mauritius, each of which has its own advantages.

A. GBC1

GBC1 companies are treated as tax residents in Mauritius, therefore they are liable to pay taxes on their gains and profits. However, because of their resident status, they are entitled to the benefits of Mauritian double tax treaties.

A GBC1 company may be a locally incorporated company or a branch of a foreign company. Business must be conducted in foreign currency and the company is not allowed to do business in Mauritius.

Key Corporate Features

1. Director
   • At least 1 Director, who must be a natural person and no restriction on the nationality.
   • There must be at least 2 local Directors in order to enjoy the benefits of double tax treaties.
2. Shareholder
   • At least 1 Shareholder, whether an individual or a company.
   • No restriction on the nationality of the Shareholder.
3. Share Capital
   • Minimum paid-up capital is USD1.
   • Standard authorized capital is USD1,000,000.
4. Taxation
   • Corporate tax rate varies from 0% to 3%.
   • It is not required to pay capital gains tax, withholding tax and stamp duties.
   • Mauritius has an extensive double tax treaties network.
5. Reporting Requirement
   • Audited financial statements must be filed with the Financial Services Commission.
   • However, there is no requirement to file the company’s annual return.
6. Time Taken to Incorporate
   • About 20 days

B. GBC2

GBC2 companies are not residents in Mauritius for tax purposes, therefore they are not entitled to benefits of Mauritian double tax treaties.

Key Corporate Features

1. Director
   • At least 1 Director, whether an individual or a company.
   • No restriction on the nationality of the Director.
2. Shareholder
   • At least 1 Shareholder, whether an individual or a company.
   • No restriction on the nationality of the Shareholder.
3. Share Capital
   • Minimum paid-up capital is USD1.
   • Standard authorized capital is USD1,000,000.
4. Taxation
   • No tax is payable to the Mauritius authorities on the company’s worldwide profits.
5. Reporting Requirement
   • The accounts need not be audited but they must be filed with the authorities.
   • However, there is no requirement to file the company’s annual return.
6. Time Taken to Incorporate
   • About 10 days