What is offshore company?
There is a current misconception that the use of offshore company means evading taxes and hiding money from the government, which is certainly not the case.
In fact, to set up an offshore company or relocate your existing business overseas is a crucial step toward internationalizing yourself and your assets.
The term Offshore Company means a company incorporated in a country outside the country of the place of residence / incorporation of beneficial owners.
Again, this is typically pursued to realize various privacy, financial, legal or tax benefits for the owners.
Background of Mauritius:
Republic of Mauritius (Mauritius) is an English-speaking, multi-cultural island country in the Indian Ocean, the size of the island is around 1,900 km2, people are mostly descendants from India, Africa, Frence and China. This Indian Ocean archipelago is seen as a model of stability and economic prosperity in the region. It is an expanding offshore financial centre and an important tourism attraction enjoying a stable political atmosphere.Boosting to the highest per capita incomes in Africa region, Mauritius’s strong liberal economy, reputable banking system and expanding network of double treaties have made it an attractive offshore financial hub for investments from India, Africa and China.
Being an independent Republic within the British Commonwealth, the government of Mauritius has been elected democratically, and has been administrating effectively in a stable political environment.
In addition, the China Embassy in Mauritius is helpful offer apostille and certified true of the documents needed to be processed in China.
|Legal System:||Hybrid of British Common Law and Civil Law|
|Time Zone:||GMT +4|
|Type of Mauritius Global Business License||Category 1 (GBC-1)||Category 2 (GBC-2)|
|Incorporation||Mauritius Financial Services Commission (FSC) under the provision of the Companies Act 2001||Mauritius Financial Services Commission (FSC) under the provision of the Companies Act 2001|
|Purposes||A tax resident in Mauritius for conducting business with residents of Mauritius. Access to the network of double taxation treaty and provide financial & insurance services in Mauritius upon obtaining required licenses issued by the Mauritius Revenue Authority and respectively.||A non-tax resident for global businesses outside of Mauritius. May not carry on local business and cannot engage in financial activities in Mauritius.|
|Privacy Protection||– No Publicy accessible records|
– Nominee shareholders allowed
|Same as GBC-1|
|Shareholders||– Minimum of one shareholder|
– Corporate shareholders allowed
– No local shareholder requirement
– No shareholders meetings location requirement
– Bearer shares not allowed
|Same as GBC-1|
|Directors||– Minimum of two local resident directors|
– Corporate directors not allowed
– Meetings including at least 2 resident directors
– Director meeting location in Mauritius required
|– Minimum of one director|
– Corporate directors allowed
– Non-local director allowed
– No meetings location requirement
|Company Secretaries||Appointment of a Mauritius Management Company acting as company secretary required||Appointment of company secretary is optional, but GBC-2 must have a local registered agent to complete the registration and maintenance.|
|Registered Office Address||One local address required||Same as GBC-1|
|Tax Incentives||– Subject to Mauritius tax, maximum tax payable on foreign income is 3% due to tax allowance.|
– Royalties, Interests, Service fees payable to foreign affiliates are allowed as expenses provided reasonable and correspond to actual expense incurred.
– Duty concessions on offices equipment, furniture and motor vehicles.
|– Exempt from all Mauritius tax (i.e. no capital gains tax or withholding tax)|
|Accounts & Return||– Annual audited account required|
– Quarterly and annual tax filing required
– Annual company return not required
|Annual financial summary required|
|Common usage||– Private Equity / Hedged Funds|
– Investment Dealer/Broker
– Investment Adviser
– Fund Manager
– Payment Services Provider
|– Investment holding|
– Property holding (e.g. real estate)
– Wealth protection
– International trade
– Trade invoicing
– Intellectual property ownership
– Consultancy services
Remark: GBC-2 are not allowed to engage in financial activities
Special note to GBC-1:
To comply with the regulatory to GBC-1 company, the company must fulfill the considerations of Mauritius Financial Services Commission (FSC) whether the company has management and controlling substance of the business in Mauritius as follows:
- at least 2 directors who must be resident in Mauritius
- maintain its principal bank account in Mauritius
- maintain its accounting records at its registered office in Mauritius
- prepare for its audited financial statement in Mauritius
- include at least 2 local directors to attend every director meetings
- And, comply with either ONE of the ongoing requirement as follows:
- having at least one office premises in Mauritius
- employing at least one local staff on a full-time employment basis at an administrative or technical level
- choosing Mauritius as the seat for arbitration of disputes
- possessing immovable asset valuated minimum Mauritius rupee $100,000 in Mauritius
- listing on Mauritius Stock Exchange
- incurring reasonable expenditures in Mauritius
Mauritius’s network of double tax treaty:
GBC-1 has been commonly used by foreign business to structure investments and projects with jurisdictions which have concluded Double Taxation Avoidance Agreement (DTAA) with the following countries:
(People’s Republic of)
|United Arab Emirates||Uganda|
Remark #: Partial
- 5 treaties await ratification : Gabon, Kenya, Morocco, Nigeria and Russia
- 4 treaties await signature : Burkina Faso, Cape Verde, Ghana and Jersey
- 18 treaties being negotiated : Algeria, Canada, Czech Republic, Gibraltar, Greece, Hong Kong, Lesotho (New), Montenegro, North Sudan, Portugal, Republic of Iran, Malawi, Saudi Arabia, Spain, St. Kitts & Nevis, Tanzania, Vietnam and Yemen
Source: Mauritius Revenue Authority
- Must be unique in company registrar of Mauritius government
- English name is compulsory, Chinese name is optional
Shareholder(s) and Director(s):
- Full name / Company Name
- Residential Address / Registered Office Address
- Nationality / Place of Incorporation (passport copy / incorporation document copy)
- Distribution of shareholdings among shareholder(s), if any
- Shareholder(s) is can be appointed as Director(s)
Registered Office Address:
- One local address in Mauritius
- One corresponding address for communication with owners.
- Certificate of Incumbency or Good Standing is required.