Mauritius Offshore Company Registration with Bank Account
Introduction
Mauritius is situated in the Indian Ocean approximately 800 km off the East Coast of Madagascar. The population of the Island is approximately 1,200,000 made up principally by people of European, African, Indian and Chinese origin. Mauritius takes pride in the fact that these different cultures co-exist in peace and succeed in creating a cultural entity that is distinctly Mauritian.
Political Structure
The British ruled Mauritius for 158 years until 12 March 1968 when it became an independent country within the Commonwealth. The Republic of Mauritius is a Westminster style democracy. The President is the Head of State and Commander in Chief. Full executive power rests with the Prime Minister who is Head of Government. The Members of Parliament are elected every five years by popular vote and a number of political parties contest the elections every five years, reflecting the country’s firm commitment to a multi-party political system.
Economy
Since independence in 1968, Mauritius has developed from a low income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. For most of the period, annual growth has been of the order of 5% to 6%.
The government’s development strategy centers on foreign investment. Mauritius has attracted more than 15,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over US$ 1 billion.
Language
English is the official language. However, the Mauritian population is largely bilingual, being equally fluent in English and French. Creole is also spoken and understood by everyone.
Currency
Mauritian Rupee
Exchange Control
None
Type of Law
Common Law for corporate matters.
Low Tax
Mauritius GBC I Local Companies have a very low income tax rate of 3%. Also, these companies qualify for benefits under the country’s tax treaty network. However, U.S. citizens and residents of countries who have worldwide taxation must declare all income to their tax authorities.
Tax Exemptions
A Mauritius GBC 1 Local Company is exempt from all capital gains taxes. Also, they do not need to pay withholding tax on payment of dividends, interests, and royalties.
Low Minimum Required Capital
Mauritius GBC I Local Companies only require a minimum share capital of $1 USD.
Company or Corporate Formation Options
Mauritius GBC I Local Companies give business owners a variety of incorporation options, including incorporating as a public or private corporation, filing for a Limited Life Company status or Protected Cell Company.
Options Regarding Shares
A GBC 1 Local Company can have registered shares, preference shares, redeemable shares and shares with or without voting rights.
One Shareholder
A Mauritius GBC 1 Local Company is required to have at least one shareholder.
Company Name
A Mauritius GBC I Local Company must register a unique name that is not similar to the names of already existing companies or corporations.
Office Address and Local Agent
A Mauritius GBC I Local Company must have a registered local agent and a local office for process service requests and official notices.
In Mauritius, only a licensed Management Company can act as a registered agent and also be the company’s secretary.
Shareholders
A Mauritius GBC 1 Local Company is required to have at least one shareholder.
Directors and Officers
A Mauritius GBC 1 Local Company must have at least one director who must be a local resident and natural citizen. In order to qualify for treaty access, the company then must name two local directors.
A Mauritius GBC 1 Local Company must also have a local registered secretary, which can also be the company’s registered local agent.
Authorized Capital
A Mauritius GBC 1 Local Company only needs to pay an authorized share capital of US $1.
Taxes
A Mauritius GBC 1 Local Company can expect to pay income taxes at a maximum rate of 3%. Benefits are available under the Mauritius tax treaty network once the company qualifies as a tax resident in Mauritius. Mauritius GBC 1 Local Companies are exempt from capital gains taxes and not required to pay withholding tax on dependents, interests, or royalties.
Annual Fees
A Mauritius GBC 1 Local Company pays annual renewal fees including:
- A payment to the Financial Services Commission (FSC) of Mauritius of $1,500 USD per year.
- A payment to the Registrar of Companies of Mauritius of $250 USD per year.
Public Records
Nominee share holders can be used for a Mauritius GBC 1 Local Company, but to qualify as a Mauritius GBC 1 company under the treaty, beneficial owners should be disclosed.
Company tax records and financial filings, which are required annually, are not filed as public records.
The law provides confidentiality to the effect that no disclosure on global business entities shall be made by FSC employees to any authority in Mauritius or elsewhere. However, there are a few exceptions to this rule:
- A court order regarding money laundering or arms trafficking pursuant to relevant Mauritian laws or if required under any international treaty; or
- a court order for the purpose of any official inquiry or trial relating to the trafficking of dangerous drugs and narcotics; or
- An existing agreement or treaty that Mauritius may have allowing exchange of information with other countries.
Accounting and Audit Requirements
A Mauritius GBC I Local Company must file a yearly tax return through the Mauritius Revenue Authority (MRA). In addition, a GBC 1 company must also file, at least six months after the close of the fiscal year, an audited profit and loss account and balance sheet with the Financial Services Commission (FSC). The accounts prepared for the FSC must meet their standards and requirements.
All Mauritius GBC 1 Local Companies are expected to keep records that include business accounting, meeting minutes, a members’ register, and a list of holders and officers. Furthermore, it is important for a Mauritius GBC I company to also keep an up-to-date Register of Charges and a Register of Interests. If there is a change with the company, the GBC 1 is expected to file notice of it in order to avoid penalties.
Annual General Meeting
A Mauritius GBC I Local Company must hold an annual general meeting as well as board meetings which must be held in Mauritius.
An annual meeting must be held not later than 15 months of the previous meeting and not later than 6 months after the balance sheet date of the company.
Time Required for Registration
A Mauritius GBC I Local Company can expect to wait about three weeks for the registration process to complete. This turnaround time is based on how efficiently the company submits both its registered name, and how accurately they complete the corporate registration documents.
Shelf Companies
A Mauritius GBC I Local Company can purchase shelf companies to incorporate with more ease and efficiency.
Mauritius – GBC1 Formation Key Information
| Type of entity | GBC I |
| Type of law | Hybrid |
| Shelf company availability | No |
| Our time to establish a new company | Normal 7 working days 4 working days in urgent |
| Corporate Taxation | Varies from 0% to 3% |
| Double taxation treaty access | Yes |
| Standard currency | US$ |
| Permitted currencies | Any except MUR |
| Usual Minimum issued | US$ 1 |
| Usual authorized | US$ 100,000 |
| Minimum number | Two |
| Local required | 2 required |
| Publicly accessible records | No |
| Location of meetings | Anywhere, but include at least 2 directors from Mauritius |
| Minimum number | One |
| Publicly accessible records | No |
| Location of meetings | No, member can authority to local director |
| Required | Yes |
| Local or qualified | Yes |
| Requirement to prepare | Yes |
| Audit requirements | Yes |
| Requirement to file accounts | Yes |
| Publicly accessible accounts | No |
| Requirement to file annual return | Yes |
| Change in domicile permitted | Yes |
About the Bank in Mauritius
Strategically based in Mauritius and with representation Africa and Europe, the banks in Mauritius connect Africa, Asia and the World.
Operational since 2007, the banks in Mauritius ambition to become the most leading regional banks in Africa. The Mauritian banks are listed among Top 200 African Banks and continues to win numerous awards for Banking.
The Bank offers current accounts in all major currencies for GBC1, GBC2, IBC, Protected Cell Companies, Trusts and other corporate vehicles, free and secured internet banking, extended cut-off time for international remittances, competitive interest rates in all main currencies, etc. Through associate company, Capital Management, the Banks are able to provide the clients with sophisticated investment products and structures.
Required Corporate Documents
- Board Resolution authorizing account opening
- Global Business licenses [if applicable]
- Certificate of Good Standing [if applicable]
- Certificate of Incorporation
- Memorandum and Articles of Association/Constitution
- Register of member's and Directors
- Background information [ Prospectus / Annual Report / Financial statements]
- Business plan
- Organigram showing company’s structures
- Required Personal Documents
For Shareholders above 20%, Directors, Beneficial Owners, Ultimate Beneficial Owners and Authorized Signatories
- ID Card / Current valid passport
- Recent Proof of Address I.e Recent Utility Bill / Bank or Credit Card Statement
- Bank Reference Letter
- CV
Note: all the documents must be in English or French and notarized
Personal Visit
Personal visit is not required and bank account is opened remotely
Initial Deposit
Minimum Deposit Requirement or No initial deposit requirement.
Minimum Balance
Minimum Balance Requirement or No minimum balance requirement
Online Banking
View and transactional internet banking free of charge
Debit and Credit Cards
- VISA Platinum Prepaid card (in USD and EUR)
- Chip Technology
- SMS Alert after each transaction
- ‘Verified-by-Visa’ security for online transactions
- Best-in-class Worldwide Travel Insurance & Concierge
- Above 200 exclusive VISA offers worldwide and more
Titanium MasterCard Credit Card (in USD)
- Privileged access to over 600 airport VIP lounges worldwide
- Best-in-class Worldwide Travel Insurance Benefits
- Exceptional discounts in 5* hotels in Mauritius and the region
- Exclusive discounts in gastronomic restaurants and high street shops
Time Required for Account Opening
05 to 10 working days, once all required documents provided.
Currencies
Accounts are offered in all major currencies.
Bank Fees
- Outward Remittances
- Electronic Transfers – 0.1 % (min USD 30 , max USD 70)
- Swift transfer (charges for ordering customer) – USD 20 intermediary bank charges
- Transfer within the same Bank – free of charge
Other fees
- Active accounts – free of charge
- Dormant accounts – free of charge
- Balance /Audit confirmation (within 12 months) – USD 25
- Bank reference letter- USD 20
- Copy of Swift payment – free of charge
Documents required from customers for the procedures align with the incorporation of the Offshore company and Bank Account opening in the selected jurisdiction
- Certified Passport of each shareholder/beneficial owner and director
- Certified Proof of residential address of each director and shareholder (Must be in English or certified translation version)
- Bank References letter for bankers for each shareholder/beneficial owner and director
- Three proposed company names
- The issued share capital and par value of shares
- A brief Business plan about your proposed line of business
- Together with Guidance Notes for applicant fully completed by the client
COMPLETE PACKAGE FEES INCLUDING GOVERNMENT FEES $19820 USD
Conclusion
There are several benefits for a Mauritius GBC I Local Company including: low income tax rate of 3%, exempt from all capital gains taxes and withholding tax on payment of dividends, interests, and
royalties. Only one shareholder is required to register the company. The required minimum share capital is only $1 USD. There are several options available to register either as a company or a corporation and the types of shares to issue.