Set up your business in Mauritius

In fact, Mauritius has two types of corporate structures applicable for international operations: the Authorized Company and Global Business Licenses, which come under the purview of regulation by the Financial Services Commission, Mauritius (FSC).

Authorized Company (AC)

• Exempt from all local taxes
• Can operate only outside Mauritius.
• Audit or extensive reporting not necessary.

Global Business License (GBL)

• Types: GBL benefits from tax treaties with an effective tax rate of 3%
• Regulation: Stricter compliance and mandatory audits.
• Scope: Provides services to the world and within Mauritius.

Key Differences

• Compliance: GBL requires higher regulatory standards.
• Taxation: GBL 1 enjoys the benefit of tax treaties, while ACs are totally tax-exempt.
• Business Activity: ACs' activities are restricted to passive international activities. GBL companies can pursue wider business activities.

Both options allow advantages for businesses intending to achieve results in global access and tax efficiency.

If you set up your company in Mauritius, your tax obligations will depend on the type of company and its activities.

1. Authorized Companies (AC): These companies are generally tax-exempt in Mauritius, as they are not required to conduct business within the country. They can enjoy tax efficiency but are only allowed to operate internationally, with no income generated locally.
2. Global Business License (GBL): Under the GBL license, you are liable to tax in Mauritius, but there are huge advantages to this option.

• GBL 1: Compliance with this license holder will enjoy an effective tax rate of 3%. Added to that is the fact that Mauritius has an extensive network of double taxation treaties, ensuring the avoidance of double taxation on income for those businesses operating abroad.

GBL companies benefit from Mauritius' extensive tax treaties and an effective tax rate of 3%.

In both cases, Mauritius offers very attractive tax environments, particularly for businesses involved in international trade and investment, thus making it one of the hot destinations for offshore incorporation. However, the local reporting and regulatory requirements have to be fulfilled to keep the benefits intact.

Yes, by registering your company in Mauritius, you will be able to take advantage of the Double Taxation Treaties. In fact, with more than 40 countries, Mauritius has an impressive network of DTTs designed to prevent double taxation on a similar income source from two different jurisdictions.

These treaties can be fully availed of if your company is registered in Mauritius under a Global Business License (GBL 1). A GBL 1 company is subject to an effective tax rate of 3%, and when combined with the availability of these treaties, it can nearly eliminate the incidence of taxes payable both in Mauritius and the country of source of such income. This thus brings about massive tax savings for businesses dealing in international trade, investment, and cross-border operations.

The typical Mauritius tax treaty encompasses various income varieties, including dividends, interests, royalties, and capital gains that guarantee the smooth running of businesses facing minimum tax obstacles in many states.

Through judicious use of the DTT network set up by the Government of Mauritius, companies can optimize their tax structure while remaining competitive on the world markets. However, for full availment of such benefits from the treaties, compliance with the local and international tax laws should be ensured.