The Republic of Mauritius is a small island nestled off the southeast coast of Africa, in the Indian Ocean. Mauritius happens to be a free-market economy and ranks high in terms of economic effectiveness and business setting. The country boasts of pro-business governance.
Although the main source of income is based on agriculture, tourism, and financial service, Mauritius is rapidly establishing itself in the information and communication technology industry as well along with renewable energy sectors.
Due to the thriving markets, businessmen, corporates, and global investors are now opting for company registration in Mauritius to utilize all the perks the country has to offer in terms of investment and business establishment.
Company Formation in Mauritius:
Now, let’s take a look at company incorporation in Mauritius. You can start a company in Mauritius as one of the following:
- A sole proprietorship is owned by a single person, who is the sole person responsible for all the business aspects and has unlimited liability for the debts and obligations of the business.
- In the case of a general partnership, there are two or more owners (partners). They share the entirety of the profits. Consequently, both of them are responsible for all the company’s debts and obligations.
- Limited Partnership is similar to a general partnership in most aspects except that not all members are fully liable for all debts. The liability is only limited to the amount of the capital a limited partner has invested.
- Global Business License Type 1 (GBC1) or offshore company is a company that conducts permitted global business from within Mauritius but run by people residing outside the country. And the currency is other than Mauritian rupee. At least 1 shareholder and 2 directors are required for setting up a GBC1. These companies are ideal for financial activities such as fund management.
- On the other hand, Global Business License Type 2 (GBC2) is an international company, which cannot have transactions in Mauritian currency with the residents. These companies are exempt from taxation. For a GBC2 setup, a minimum of 1 shareholder and 1 director are required. These types of companies are basically meant for the purpose of trade and investment.
Perks of Setting up a Company in Mauritius
Here is what you get out of setting up a company in Mauritius:
- The country has an investment-friendly environment boasting economic, political, and social stability.
- The country is suitable for conducting offshore business due to abundant opportunities across multiple industries.
- You can set up a company in Mauritius easily. The process can be completed within a week.
- Since the country is a free market economy, it allows for unlimited transfer of capital/profits or dividends out of the country.
- The country has low corporate tax, no capital gains tax, and free sending of capital and profits. Overall, the country is a tax-friendly nation.
- Having a bank account in Mauritius is advantageous as there are many banking service providers offering higher interest rates on deposits and investments.
Furthermore, forming a company with a bank account is ideal as it helps with all the banking requirements (initial capital deposit, loans, and financial transactions).
- The country has a workforce of skilled and bilingual professionals.
The Final Verdict:
If you’re looking to start a company, it’s best to consider all the costs you’ll be accruing throughout the venture. It’s best to select a place that benefits investors and has the best rules and regulations and Mauritius proves to be the best choice.
