Mauritius
 

  Benefits of Mauritius

   Mauritius is situated in the Indian Ocean approximately eight hundred kilometres off the east coast of Madagascar. The island, which is of volcanic origin, covers an area of one thousand eight hundred square kilometres.

   The population of the Island is approximately 1,100,000 made up principally by people of European, African, Indian and Chinese origin. English is the official language. However, the Mauritian population is largely bilingual, being equally fluent in English and French. However, "Creole" is also spoken and understood by everyone.

   The country’s currency is the Mauritian Rupee and there is no exchange control. The type of Law is the Common Law for corporate matters.

   The Principal Corporate Legislation is the Companies Act, No.57 of 1984 for Offshore Companies and the International Companies Act 1994 for International Companies.

   We have to specify that there are two types of company used for international tax planning. The International Company is similar to a British Virgin Island International Business Company and is non-resident for tax purposes. The offshore Company is resident for tax urposes and can access Mauritius network of Double Taxation Treaties, provided that it is both correctly structured, managed and controlled from Mauritius.

   Questions & Answers regarding available Companies in Mauritius

   A. The Structure of a Company.

   1. Procedure to Incorporate.

Offshore Company. Once name approval has been obtained three copies of the Memorandum and Articles of Association are submitted together with a notice of the First Directors, Secretary and location of the Registered Office, and consent forms signed by the Officers.

International Company. Submission of the Memorandum and Articles of Association and a Certificate from the Registered Agent confirming compliance with the requirements of the Ordinance.

   2. Authorised and Issued Share Capital.

Offshore Company. The normal authorised share capital is US $100,000 with all of the shares having a par value. The minimum issued share capital is two shares of par value.

International Company. The normal authorised share capital is US $100,000 with all of the shares having a par value. The minimum issued capital is either one share of no par value or one share of par value.

   3. Which classes of Shares are permitted?

   Offshore Company.

Registered Shares.
Preference Shares.
Redeemable Shares.
Shares with or without voting rights.

    International Company.
Registered Shares.
Bearer Shares.
Shares of no par value.
Preference Shares.
Redeemable Shares.
Shares with or without voting rights.

   B. Provisions in the Act relating to the Management and Administration of the available Companies.

   1. Directors

Offshore Company. Requires a minimum of two directors, who must be natural persons.

International Company. Requires a minimum of one director, who may be a natural person or body corporate. The directors of Mauritius Companies need not be resident in Mauritius and may be of any nationality. For Offshore Companies wishing to obtain treaty relief resident directors are required.

   2. Shareholders.

   Offshore Companies require a minimum of two shareholders, or one if the Company is to be a wholly owned subsidiary. International Companies require a minimum of one shareholder.

   3. Company Secretary

   An Offshore Company requires the appointment of a Company secretary, who must be resident in Mauritius. An International Company must appoint a Company secretary who may be a natural person or a body corporate of any nationality and need not be resident in Mauritius.

   4. Financial Statement Requirements.

   International Companies are required to maintain financial statements to reflect their financial position but are not required to file accounts with the authorities. Offshore Companies are required to prepare audited financial statements which must be filed with the Mauritius Offshore Business Articles Authority.

   5. Taxation.

   Offshore Company. The taxation rate on Offshore Companies currently varies between 0% and 35%. A new Income Tax Act was passed in 1995. This Act provides for a uniform tax treatment for Offshore Companies registered after 30 June 1998 and local “ incentive” Companies which will be taxed at 15%. However, foreign tax credits are available which reduce the amount of Mauritius tax charged. Existing Offshore Companies, however, may still continue to elect to pay tax at any rate between 0-35% or opt for the new rate of 15%.

   The Foreign Tax Credit Regulations (under the Income Tax Act 1995), which came into force on 20 July 1996, allow for foreign tax credit on the foreign source income of a Mauritian resident. In calculating the tax credits, the Regulations allow for the grossing up of the foreign tax charged on dividend, credit for the underlying tax charged in the foreign country on profits out of which the dividend is paid.

   International Company. An International Company does not pay any tax on its world-wide profits to the Republic of Mauritius authorities.

 

    Notes

   (1) For a copy of a full set of documents to be made apostille in the jurisdiction will cost a minimum US $

 

   We are not responsible for any forthcoming changes concerning the rules and regulations of the jurisdiction.

 

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