Company Registration in Mauritius - AC Company

Registering a Company in Mauritius

The island of Mauritius is rightly called a paradise: here, luxurious white sand beaches are gently lapped by the crystal-clear turquoise waters of the Indian Ocean, the service in upscale hotels is of the highest standard, the locals are hospitable, coral reefs abound, and there are no poisonous insects, dangerous animals, or snakes — truly a fairytale island.

Mauritius is located in the western waters of the Indian Ocean. In terms of its government system, Mauritius is a republic. Administratively, the country is divided into 10 districts. The capital is Port Louis. The island covers an area of approximately 1,600 km². The Republic also includes several other islands: Agalega, Rodrigues, and the Cargados Carajos Shoals.

The official language is English, which is used in business communication. However, French is more commonly spoken among the local population.

Approximately 68% of the island’s population are Mauritians. The majority of the population practices Hinduism.

The local currency is the Mauritian Rupee.

Company Registration in Mauritius – Key Advantages

• Tax freedom;
• Ensured confidentiality;
• No requirement to file financial statements;
• Short company setup period (up to two days);
• No personal presence required for company registration;
• Mauritius is a signatory to the Hague Convention.

Typical Characteristics of Companies in Mauritius

The two most attractive types of registered companies are: GBL and AC.

AC Companies (Authorised Companies)

General Information

Registering an AC (Authorised) company is suitable if:

1. The majority of shares or interests in the company are owned or controlled by a person who is not a resident of Mauritius;

2. The intended or actual business activities are based outside Mauritius, or will be carried out with the following categories of persons:

• a company holding a GBL licence;
• another authorised company (AC);
• a company holding a GBS1 or GBS2 licence issued before 16 October 2017;

3. The company is effectively managed outside of Mauritius.
To be considered as managed outside Mauritius, the strategic decisions related to the income-generating activities of the company must be made outside of Mauritius (decision-making center).

An AC (Authorised Company) may not engage in the following types of activity:

• Banking;
• Financial services;
• Conducting business involving the ownership, management, or handling of an investment fund or investment scheme as a professional participant;
• Providing registered addresses, nominee services, directorship, company secretarial services or other services to corporations;
• Providing trusteeship services.

An Authorised Company is regarded as conducting its business outside Mauritius, despite participating in the following activities:

• Investing in securities listed on a securities exchange licensed under the Securities Act 2005;
• Opening and maintaining a foreign currency bank account;
• Holding shares, debt obligations, securities or conducting transactions with a GBL company;
• Having business relationships with a holder of a Management Licence, a practicing barrister, legal consultant, law firm, or qualified auditor in Mauritius.

Taxation Information

According to the recently introduced Section 73A of the Income Tax Act in Mauritius, a company that is incorporated in Mauritius but has its place of effective management outside Mauritius is considered a non-resident for tax purposes. Therefore, authorised companies are non-resident entities under Mauritian tax law.

Nevertheless, they must still be registered with the Mauritius Revenue Authority and are required to file annual income tax returns.

An Authorised Company must submit a financial summary (abridged balance sheet) to the Financial Services Commission once a year. This report must be filed within 6 months after the end of the financial year.

An Authorised Company must always have a registered agent in Mauritius, which must be a management company licensed and regulated by the Financial Services Commission.