Mauritius Company Formation and Taxation FAQ

Mauritius has established itself as a premier destination for international business and investment, offering a robust legal framework, investor-friendly policies, and a strategic location bridging Africa and Asia. The island nation is particularly attractive for entrepreneurs, SMEs, and multinational corporations looking to establish a presence in a stable, low-tax jurisdiction.

Company formation in Mauritius is streamlined, efficient, and cost-effective. The country offers various business structures, including the popular Global Business Company (GBC) and Domestic Company (DC), each catering to different types of investors and operational scopes. Mauritius is well-regarded for its network of double taxation avoidance agreements (DTAAs), competitive corporate tax rates, and compliance with international regulatory standards.

Whether you’re interested in setting up a trading company, investment holding entity, fintech startup, or service-based business, Mauritius provides a flexible and transparent environment. Foreigners can hold 100% ownership in most sectors, and there are no exchange control regulations, making it easy to repatriate profits.

This FAQ page addresses the most common questions about setting up a company in Mauritius, covering everything from incorporation timelines and minimum capital requirements to residency options and post-registration obligations. Whether you’re just starting your research or preparing to incorporate, the answers below will guide you through the essentials of doing business in Mauritius.

Company Formation in Mauritius – Frequently Asked Questions

Mauritius is one of the most attractive jurisdictions for international business in Africa and beyond. Known for its political stability, low corporate tax rate, and strong legal framework, it has become a popular destination for entrepreneurs and foreign investors seeking to expand or relocate their operations.

Whether you’re considering setting up a Global Business Company (GBC), a Domestic Company (DC), or an offshore investment vehicle, Mauritius offers a straightforward and business-friendly incorporation process. Foreign nationals can own 100% of a company, and there are no exchange control restrictions, making it easy to repatriate profits.

On this page, we answer the most frequently asked questions about starting a company in Mauritius, including legal requirements, timelines, costs, and more.

Related FAQs & Resources:

🇲🇺 Mauritius Company Formation FAQs

1. What is a Mauritius company?

A Mauritius company is a legal entity incorporated under the Companies Act 2001, widely used for international business, investment holding, and offshore operations. Learn more on our Mauritius company formation page.

2. What types of companies can be formed in Mauritius?

Common company types include:

Global Business Company (GBC 1 & GBC 2) – for offshore and international business
Domestic Company – primarily for local business operations
Limited Liability Company (LLC) – flexible ownership structure
Protected Cell Company (PCC) – ideal for investment funds and risk segregation

3. Who can incorporate a company in Mauritius?

Both residents and non-residents can form a Mauritius company. There are no restrictions on nationality for shareholders or directors, making it highly attractive for international investors.

4. How long does Mauritius company registration take?

Registration usually takes 3–5 business days, depending on document verification and approval by the Financial Services Commission (FSC).

5. What documents are required for incorporation?

Passport copies of shareholders and directors
Proof of residential address
Memorandum and Articles of Association
Bank reference or confirmation of share capital deposit

6. What is the minimum share capital?

GBC 1: USD 1,000 minimum
Domestic companies: MUR 100,000 minimum
PCC: depends on the cells, usually USD 1,000 per cell

7. Do I need a local director or shareholder?

Yes. At least one resident director is required for GBC 1 companies, while other company types can appoint non-resident directors but must maintain a registered office in Mauritius.

8. Can a Mauritius company hold international assets?

Yes. Mauritius companies are widely used for global investments, intellectual property, real estate, and portfolio management, supporting cross-border business operations.

9. Is physical presence required?

No. Companies can be incorporated remotely through licensed corporate service providers, making Mauritius ideal for non-resident investors.

10. How private is ownership in Mauritius?

Mauritius offers high confidentiality. Shareholder and director information is maintained by the FSC and registered agent and is not publicly disclosed.

11. Can I open a corporate bank account for a Mauritius company?

Yes. Companies can open accounts with local and international banks, facilitating multi-currency operations and offshore transactions.

12. What are the annual compliance requirements?

Filing annual returns with the Registrar of Companies
Submitting audited financial statements for GBC 1 companies
Paying annual license fees

13. Can a company be owned by another company?

Yes. Mauritius law allows corporate shareholders, making it ideal for holding structures and international investment groups.

14. How can a Mauritius company be dissolved?

Voluntary dissolution requires:

Shareholder resolution
Settling all debts and obligations
Filing dissolution forms with the Registrar of Companies

15. Why choose Mauritius for company formation?

Mauritius offers political stability, a favorable tax regime, strategic location for Africa and Asia, and robust legal frameworks, making it an attractive jurisdiction for international business and offshore investment. Learn more on our Mauritius company formation page

Start your journey to success—call us today!

💰 Mauritius Company Taxation FAQs

1. What is the corporate tax rate in Mauritius?

The standard corporate income tax rate is 15%. Effective tax can be significantly reduced to 3%–6% for GBC 1 companies through foreign tax credits and exemptions.

2. Are dividends taxed in Mauritius?

Dividends paid by GBC 1 companies to non-residents are generally tax-exempt, supporting efficient profit repatriation.

3. Are capital gains taxed in Mauritius?

No. Capital gains are not subject to taxation, making Mauritius an attractive jurisdiction for investment holding companies.

4. Does Mauritius have VAT?

Yes. The standard VAT rate is 15%, with exemptions for certain essential goods and services.

5. Are there double taxation agreements (DTAs)?

Mauritius has an extensive network of over 40 DTAs, enabling companies to avoid double taxation and optimize cross-border operations.

6. Are retained earnings taxed?

No. Retained profits are not subject to tax, allowing companies to reinvest profits for growth.

7. How are payroll and social contributions handled?

Employers contribute 10%–12%, while employees contribute 8%, covering social security and health insurance.

8. Are tax incentives available for holding companies?

Yes. Mauritius offers participation exemptions, zero withholding tax on outbound dividends, and favorable regimes for global business companies (GBC 1).

9. Can a Mauritius company benefit from international tax treaties?

Yes. Companies can benefit from tax treaty networks and foreign tax credits, especially in jurisdictions with DTAs with Mauritius.

10. Are R&D incentives available?

Yes. Companies may benefit from tax deductions and incentives for qualifying R&D and innovation activities.

11. Are transfer pricing rules applicable?

Yes. Mauritius adheres to OECD transfer pricing guidelines, requiring arm’s length pricing for related-party transactions.

12. Can non-resident companies be taxed in Mauritius?

Non-resident companies are taxed only on Mauritius-source income, such as local business operations or Mauritius-sourced interest and dividends.

13. Are there stamp duties or capital taxes?

Yes, certain share transfers and property transactions may attract stamp duty, but corporate transactions remain cost-efficient compared to other jurisdictions.

14. Can losses be carried forward?

Yes. Business losses can generally be carried forward for up to 7 years to offset future taxable profits.

15. Why is Mauritius ideal for international tax planning?

Mauritius offers low effective corporate tax, extensive DTA network, flexible offshore structures, and robust regulatory frameworks, making it one of the most competitive jurisdictions for international business and investment planning. More details are available on our Mauritius company formation page.

Interested in setting up an offshore company in Mauritius?
Visit our Mauritius Company Formation page for detailed guidance, packages, and expert support tailored to your needs.

Back to Main FAQ page

Back to Company Formation FAQ page