Questions and Answers on Setting Up a Company in Mauritius
Mauritius is an Indian Ocean island country famous for its white beaches, reefs, and lagoons. While it attracts tourists across the world, it is also an international business hub attracting investors. Setting up a company in Mauritius can be a tricky venture. For that reason, we have prepared answers to some key questions you may have regarding the process.
How Much Is It to Create a Company in Mauritius?
Registering a company in Mauritius is easy, but you will need to work with an authorized agency. These are some of the fees applicable:
- Private Company: MUR 3,000
- Public Company: MUR 13,500
- Public Company with a Global Business License: MUR 13,500
- Private Company with a Global Business License: MUR 3,000
- Authorized Company: USD 65
- Foreign Company –Registration: USD 343 plus USD 5 for a certificate
The license fee payable for a global business company formation is roughly USD3,700 and USD1,300 for authorized companies. On top of this fee, the agency helping with the registration fee will also charge approximately USD1,500 to 3,000. The cost is rendered through the online platform provided by the Corporate and Business Registration Department (CBRD).
Mauritius – Capital Dispost for A Company?
To open a company in Mauritius, you need to have at least USD 1 of capital. There are no other capital requirements, such as minimum paid-in capital or authorized minimum capital. The share(s) issued can be issued at nominal value, but it’s not redeemable.
What Are the Required Documents to open a Company in Mauritius?
There need to be at least two directors and shareholders for company incorporation. At least one director must be of Mauritian nationality, while the other can be of any nationality. The shareholders can be of any nationality and resident anywhere.
You should submit the following documents for company registration:
1. Memorandum and Articles of Association;
2. Declaration concerning the business activities of the company;
3. Apostilled certificate of incorporation;
4. Apostilled Certificate of Good Standing (if applicable);
5. Certificate of directors;
6. Certificate of shareholders;
7. Minutes and resolutions of board meetings;
8. Registered office address in Mauritius;
9. Passport copies (notarized) for each shareholder and director;
10. Utility bill or bank statement not older than three months as proof of residence (notarized) for each shareholder and director;
11. Bank reference letters for each shareholder and director (notarized);
12. Details about the registered agent or trustee who will act as registered office address in Mauritius;
13. A brief description of the proposed business activity
Fees for The Renewal of This Company (Yearly)?
You must renew your business license every year, and the fee may amount to approximately USD3,000. This fee accounts for the annual license renewal, annual agent fee, and annual office fee. Suppose there is more fee, such as accounting or auditing. In that case, it will be paid separately depending on company type and operations. For your information, the annual global business license fee stands at USD1,950.
The initial registration and renewal fee must be paid to the CBRD between January 3 to January 20. In the case of late payment, a penalty will apply. One can either present the money at the CBRD counter or pay online via the CBRIS platform. A 50 percent surcharge will apply if the renewal fee is paid after the due date.
Mauritius Company, Is there a tax on profit?
Yes, there is. Mauritius has a tax rate of 15%, which applies to both residents and non-residents. Resident companies get to pay tax on incomes from all over the world. However, they can get a tax credit for any income that has been charged for tax elsewhere. Non-resident companies, on the other hand, get to pay tax only on incomes sourced from Mauritius.
Is There a Corporate Tax?
Yes, there is. The corporate tax rate in Mauritius is 15% for all resident companies. A company is considered a resident if it was incorporated in the country or is centrally controlled here. Offshore companies do not pay any taxes in Mauritius as long as they do not conduct business in the country and do not use Mauritius currency.
And What Ratio in VAT?
Mauritius’ standard VAT ratio is 15%. So, whatever you charge for your products or services, you can expect to pay 15% of that amount back to the government. It is also important to note that some items are exempt from VAT, like food, residential buildings, and educational and medical services. If your company turnover is more than MUR 6 million every year, it is mandatory to register for VAT.
Time Declaration When (Vat & Tax)?
The short answer is: You can declare VAT and tax in Mauritius at any point after you’ve established your business. However, it has to be within six months of the Year’s end.
Any entity that earns more than MUR 10 million as taxable income and is registered for VAT must submit its returns electronically every month after the taxation period. Other registered entities should submit their VAT returns quarterly, 20 days after the lapse of the three months.
What About Fees Yearly for This Company?
The annual fee you will pay for your company in Mauritius includes the trade license fee, the agent fee, and the registered office fee. The total may range from USD2,500 to 3,500 because it depends on the agency you choose to work with and the services you are getting from them. You may require other services depending on your business, such as accounting, since you are required to maintain proper records for your business.
Fees for Close Company?
As long as you can register a company in Mauritius, you can also close, and this will take at least a month before the entire process completes. If you are using the same agency that registered you, the fee will be low as compared to using a new one since they will have to search for your company details and documents. If there is no objection from the public or the Mauritius Revenue Authority within 28 days after CBRD publishes the notice, the registrar will remove the company from the register.
How Much Tax On Dividends?
All companies in Mauritius are exempted from paying dividend tax as long as it is from resident companies. If the dividend is received from another country by a resident company, it is subject to a 15 percent tax rate. However, a partial exemption might apply up to 80 percent or as per a credit limit due to tax withheld somewhere else.
What Are the Fees for Creating a Bank Account?
Opening a bank account in Mauritius is a pretty straightforward process. You generally need to present a copy of your passport and proof of residence to open an account. The fees vary from bank to bank. The BCP bank of Mauritius typically charges 100 MUR per month plus VAT, while SBM charges 115 MUR per month.
Fees for Declaration (Profit & VAT) Yearly?
A company is liable to pay taxes on its profits. However, it can carry forward its losses for set-off against future profits for a maximum of 5 years. You can apply for refunds of tax paid on dividends. Mauritius has a very useful feature: no dividend tax is levied on shareholders.
Fees for Auditing Fee
The auditing fees are not the same for every auditing company. It is the auditor who determines the price. However, the auditor needs to own a license from the Financial Reporting Council and be a member of the Mauritius Institute of Professional Accountants.
Tax Filing Fee?
All Mauritian companies must file their taxes annually with the Mauritian Revenue Authority (MRA). There is no filing fee. You can file your taxes online through the Mauritian Revenue Authority e-portal.
Is A Partner Necessary in Mauritius?
Not necessarily. Sure, having a partner is always nice, but if you have the organization and drive to run your company independently, there are no legal requirements for partnership in Mauritius.
Is It Necessary to Go to Mauritius About Create a Company and Bank Account?
It is not unnecessary to travel to Mauritius to create a company and bank account. You can set these up online if you are already living in Mauritius or with the help of a local representative if you live outside of Mauritius. A local agency would be a good option since they have experience and know all required documents and procedures. It makes the registration process quick and flawless.
Time Declaration "Tax Filing"?
Companies must file their taxes before the end of 6 months after the accounting year. You’ll need to fill out the “MW1” form and submit it to the Mauritius Revenue Authority to file your tax declaration. This is for every company, whether they are taxpayers or not. If there are any outstanding taxes by the time of filing the returns, they must be paid during this period.
Late tax payments attract a five percent penalty on the amount due and an interest of 0.5 percent on the same amount every month until its clearance. Failure to file returns also attracts a penalty of MUR2,000 every month, but the maximum penalty stands at MUR20,000.
Fees Yearly for A Bank Account?
There are several different types of bank accounts that you can open in Mauritius. Each account will have different rules and fees associated with it. The best way to find out what type of account you should open, and the fees associated with it, is to contact a bank directly.
Turnover Outside Mauritius. Is It Necessary to Pay VAT?
Yes, that is correct. You will have to pay VAT on your turnover outside Mauritius, even if you do not have a physical office in the country. If you are concerned that your company may be affected by this provision, contact the Mauritius Revenue Authority directly to ensure that you understand how VAT applies to your particular situation.
Is It Necessary to Declare VAT for Transactions Outside Mauritius?
Yes, it is necessary to declare VAT to the Mauritius government. Even if all transactions are outside Mauritius, you will still need to do this. However, it is good to note that sales outside the country are considered taxable supplies with a zero percent VAT rate. This means they are considered when calculating VAT tax credit from input tax.
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