Overview of Mauritius as an Offshore Jurisdiction
Mauritius is an island nation in the Indian Ocean, located about 800 km east of Madagascar. It is an independent democratic republic with a hybrid legal system based on English common law and elements of French civil law.
The Financial Services Commission (FSC) acts as the regulatory authority for global business companies and other financial service providers.
Mauritius is recognized as a leading international financial center offering a stable political environment, a strong regulatory framework, and an attractive tax regime supported by more than 45 Double Taxation Agreements (DTAs).
Key Advantages of Mauritius as an Offshore Center
- No withholding tax on dividends, interest, and royalties paid to non-residents
- No capital gains tax
- Effective corporate tax rate as low as 3% (under partial exemption regime)
- Access to 45+ tax treaties
- No foreign exchange controls
- Modern banking sector with multi-currency accounts
Legal Framework and Regulation
- Companies Act 2001 – governs company incorporation and operations
- Financial Services Act 2007 – regulates licensing of GBC and AC
- Income Tax Act – defines tax obligations and exemptions
- AML/CFT Act – Anti-Money Laundering and Counter-Terrorism regulations
Tax Regime in Mauritius
| Tax Type | Rate / Treatment |
|---|---|
| Corporate Income Tax | 15% (effective rate can be reduced to 3%) |
| Withholding Tax on Dividends, Interest, Royalties | 0% |
| Capital Gains Tax | 0% |
| VAT | 15% (not applicable to most offshore entities) |
| Wealth / Inheritance Tax | None |
Partial Exemption Regime:
Global Business Companies (GBC) can claim 80% exemption on specified foreign-source income such as dividends, interest, and royalties, reducing the effective tax rate to 3%.
Types of Companies in Mauritius
| Feature | Global Business Company (GBC) | Authorized Company (AC) |
|---|---|---|
| Tax Residency | Yes | No |
| Tax Rate | 15% (effective 3%) | 0% |
| Access to DTAs | Yes | No |
| Substance Requirements | Yes (at least 2 local directors) | No |
| Audit | Mandatory | Not required |
| Reporting | Annual accounts + audit | Simplified annual return |
| Best Use Cases | Holding, investment, financial services | International trading |
Substance & Compliance Requirements
| Requirement | GBC | AC |
|---|---|---|
| Local Directors | 2 | No |
| Local Accounting | Yes | Yes |
| Physical Office | Recommended | No |
| Minimum Expenditure | Yes (to access DTA) | No |
How to Register a Company in Mauritius – Step-by-Step
- Choose the structure (GBC or AC)
- Reserve a company name with the Registrar of Companies
- Appoint a licensed Management Company (mandatory)
- Prepare and submit incorporation documents to FSC:
- Memorandum & Articles of Association
- Business plan
- Details of beneficial owners (for internal register)
- Meet substance requirements (for GBC)
- Obtain FSC approval and business license
- Open a corporate bank account
Estimated time frame: 2–3 weeks (including FSC review and KYC checks).
Banking and Practical Tips
- GBC entities: Easier to open bank accounts locally and internationally, provided substance is established.
- AC entities: Bank account opening can be challenging without presence; alternative – EMI or fintech solutions.
- Tip: Plan substance and banking simultaneously for smooth compliance.
Who Should Choose Mauritius?
- International holding structures (especially for India and Africa investments)
- Investment funds and asset management firms
- Licensing and IP companies
- Asset protection structures
- Tax-efficient trading and export companies
Summary of Main Advantages
✔ Attractive corporate tax regime (effective rate as low as 3%)
✔ Access to 45+ Double Taxation Agreements
✔ No withholding taxes on outbound payments
✔ Stable and reputable jurisdiction with strong regulation
✔ Ideal for international structuring and tax optimization
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Complexity
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