Mauritius is much more than a beautiful island. It is one of the most business-friendly countries in the world. Being a former British colony, Mauritius still follows British law & parliamentary system. Because of its stable government, well-developed financial system, and a strong workforce, it is becoming a major business hub within this region.
Additionally, it has amazing taxation laws that make it ideal for doing business. As a result, many multinational companies (MNCs) have signed-up for Mauritius company registration to do hassle-free business within this region.
Mauritius has 3 international standard offshore banks including Standard Chartered Bank and State Bank of India. Other than this, Mauritius also offers two types of off-shore companies with nil taxes i.e. GBC1 & GBC2.
A GBC1 company is basically a domestic company that can do or holds shares in other countries that are DTA Treaty partners of Mauritius. Whereas, a GBC2 company is an entity that can do business only in other countries, not in Mauritius. It doesn’t have to pay any tax in Mauritius on what it earns internationally.
Major Advantages of Establishing Offshore Companies in Mauritius:
Tax exemption isn’t the only benefit you get to enjoy by registering an offshore company in this tropical paradise. There are numerous other benefits you can get to avail by registering an off-shore company in Mauritius. Let’s take a look at them:
· Easy Registration & Formation:
Setting up a GBC2 type company in Mauritius is like a walk in the park. It usually takes one week to establish and form a company here. You just need to have one shareholder and one director to set-up a company in this country. Moreover, you can buy the paid-up shares for as low as $1.
· Hassle-free opening of Bank Accounts:
Additionally, the opening of a bank account in Mauritius is also quite easy. The majority of the banks don’t require the client to come in person. This makes it quite convenient for the business owners to set-up an account here.
· Business Friendly Environment:
The environment of this country is absolutely suitable for doing business. The laws and regulations of the country are entirely business-friendly. You can easily find an affordable workforce here and an added benefit is that most people can understand and speak English.
· Ease of Doing Business:
As per 2015’s report of the world bank, Mauritius was ranked 28th in the countries list with ease of doing business. The government policies of this country are truly pro-business; from tax exemptions to easy import & export policies, everything is favorable.
· Benefits to Shareholder:
The biggest benefit of setting up an offshore company in this country is that you don’t need to have local shareholders in your company. Initially, you just need one shareholder to establish your company. Consequently, shareholders can do their meetings anywhere they seem convenient.
· No Physical Presence Required:
In order to establish a GBC2 type business entity in Mauritius, there’s no requirement for the presence of any individual. You can easily form your company by hiring any business management in Mauritius to fulfill the formalities on your behalf.
· Legal Framework & Liabilities:
The formation of GBC2 type companies in Mauritius comes under the jurisdiction of the Companies Act of 2001. However, these companies are licensed under the Financial Services Act of 2007. Moreover, a GBC2 type company cannot do business with local Mauritians and is forbidden to do transactions with them.
· Nominal Expenditure:
Forming an offshore company in Mauritius doesn’t require the involvement of a huge sum of money. It’s actually pocket-friendly, you set it up completely in between $1700 to $2100.
· No Requirement for Audit:
There is no need for a GBC2 type business entity to get its audit.
· Confidentiality:
Your privacy is the top-most priority for the Mauritian government. The records of the owners of these companies aren’t revealed to the general public but authorities can view them. Likewise, the details of shareholders aren’t accessible by the general masses and no details of directors are available on public record as well. Moreover, the use of a nominee shareholder is allowed.
These are some of the major reasons why international investors and business owners are preferring Mauritius offshore company formation than establishing one in other countries.
