Setting Up an Authorised Company in Mauritius
Setting up an Authorised Company (AC) in Mauritius presents a plethora of advantages for entrepreneurs, international traders, and private asset holders. We highlight the specific benefits of establishing an AC in Mauritius such as tax efficiency, regulatory compliance, and strategic positioning. The insights provided here aim to offer valuable guidance to potential clients seeking optimal international business structures, emphasising why Mauritius stands out as a premier choice for business incorporation.
Tax Efficiency
One of the most compelling reasons to establish an Authorised Company in Mauritius is the significant tax advantages it offers. An AC is treated as a non-resident entity in Mauritius for tax purposes, meaning that it is not liable to income tax in Mauritius. However, it is essential to understand the broader implications of this status:
- No Income Tax Liability
Since an AC is classified as a non-resident entity, it does not incur income tax on its earnings. This exempt tax regime is highly beneficial for businesses seeking to maximise their profits and reinvest earnings into business growth without the burden of corporate taxes. - No Capital Gains Tax
Mauritius does not levy capital gains tax. For companies involved in asset holding or investment activities, this translates to a substantial saving when assets are sold or transferred. This feature makes Mauritius an attractive destination for holding companies and investment vehicles. - No Withholding Tax on Dividends, Interests, and Royalties
Another significant tax advantage is the absence of withholding tax on dividends, interest, and royalties paid to non-residents. This benefit ensures that profits can be repatriated without additional tax burdens, facilitating efficient international financial planning and cash flow management.
Banking Benefits
Mauritius offers a robust and flexible banking environment, which is particularly advantageous for Authorised Companies.
a. Access to International Banking Services
Mauritius is home to numerous international banks and financial institutions that provide a wide range of services, including multi-currency accounts, international wire transfers, and sophisticated cash management solutions. This access is crucial for companies involved in global trading and consulting services.
b. High level of Financial Privacy
The banking sector in Mauritius is known for its strict confidentiality policies. While complying with international standards on anti-money laundering (AML) and combating the financing of terrorism (CFT), Mauritius still offers a high degree of financial privacy. This aspect is attractive to businesses that prioritise confidentiality in their financial transactions.
c. Stable Banking Sector
The stability and reliability of the Mauritian banking sector are noteworthy. The country’s financial institutions are well-regulated by the Bank of Mauritius, ensuring a secure environment for banking operations. This stability provides peace of mind to entrepreneurs and investors who seek a secure jurisdiction for their financial activities.
Favourable Regulatory Environment
Mauritius has established itself as a business-friendly jurisdiction with a favourable regulatory environment.
- Ease of Incorporation
The process of incorporating an Authorised Company in Mauritius is straightforward and efficient. The requirements, such as having a majority of shares held by non-citizens and conducting business principally outside of Mauritius, are designed to attract international entrepreneurs and businesses. - Flexibility in Business Operations
An AC is permitted to engage in a wide range of activities such as international trading, investment holding and marketing services. This flexibility allows businesses to diversify their operations and adapt to changing market conditions. - Corporate Governance
Mauritius allows ACs to have corporate directors, whcih can simplify governance structures for multinational enterprises. The prohibition of bearer shares ensures transparency and compliance with international standards. - Professional Services and Support
Mauritius boasts a well-developed professional services sector that supports the establishment and operation of Authorised Companies. Key aspects include:- Registered Agents – Management Companies
Every AC must have a registered agent in Mauritius, which is a management company such as Blue Azurite. The management company provides essential services such as incorporation, compliance management, and ongoing administrative support. This professional assistance ensures that businesses operate smoothly and comply with local regulations. - Legal and Accounting Services
Mauritius has a strong presence of legal and accounting firms that specialise in international business.
- Registered Agents – Management Companies
Navigate
Strategic Geographical Position
Mauritius’s strategic location in the Indian Ocean offers several logistical and operational advantages for businesses.
- Gateway to Africa and Asia
Mauritius serves as a gateway to both African and Asian markets. Its proximity to these rapidly growing regions allows businesses to efficiently manage operations and logistics, making it an ideal base for companies looking to expand into these markets. - Time Zone Advantage
Mauritius operates in a time zone that is conducive to doing business with Europe, Asia, and Africa. This advantage facilitates seamless communication and operational coordination with key international markets, enhancing business efficiency.
Setting up an Authorised Company in Mauritius offers a multitude of advantages, making it an ideal jurisdiction for entrepreneurial companies, international traders, and investment holders. The tax efficiency, robust banking environment, strategic location, favourable regulatory framework, and political and economic stability collectively create a compelling case for choosing Mauritius as a base for international business operations.
