The development of the island of Mauritius has brought to the jurisdiction of around 32,000 offshore entities, many of them destined for trade in India, South Africa and China. Investment in the banking sector alone has exceeded one billion dollars. 

Since 1968, Mauritius has been an independent nation. It maintains economic and political stability, positioning itself, as well as the most competitive economy in Africa.

For tax exemption in Mauritius the most appropriate thing is to register a company The free zone company, foreigners who wish to use Mauritius as a repackaged or manufacturing center of products re-exported outside the country can register their business in the free port of Mauritius, with benefits that include tax exemption and VAT exemptions on all goods imported in the port and without income tax of societies.

To be eligible, a company must export 95% of its products to foreign markets and 80% to African markets. The remaining 5% can be sold locally (and then subject to local corporate income tax and VAT).

Registering a company in the free port of Mauritius is attractive to companies wishing to do business with East African clients from a politically stable and well-regulated jurisdiction.

Branches are available to offshore companies, Mauritius companies law allows foreign companies to open branches as long as they have a resident representative and a registered office in the country.

The scope of this entity's operations will be defined by the parent company and is subject to licensing requirements similar to those of a local entity in Mauritius.

Branches in Mauritius are subject to the standard corporate tax rate of 15% and must also submit annual financial statements. A branch is an alternative to registering a subsidiary for customers looking to conduct business from Mauritius with residents of Mauritius.

Mauritius does not provide for the registration of representative offices. Foreign companies can still register a local office to participate in market research and trade promotion, but this entity will be subject to the requirements that apply by default to a branch.

Being technically a branch, there is not much interest in registering such an entity. Forming a subsidiary will usually be a better option.

If you plan instead of commercializing, to keep assets, we recommend registering a protected cell company. The Mauritius protected cell company is an efficient strategy to hold high net worth assets through its investment fund structure while avoiding any risk spillovers. 

This entity can benefit from a low tax rate of 0-3%; a network of DTA signed by Mauritius and have no minimum capital requirement.

Mauritius protected cell companies are widely used for asset holdings, insurance businesses, external pension plans, as well as for financial businesses.

In Mauritius the Offshore Trust is also available, foreigners can register offshore trusts in Mauritius free of local taxes, provided that all assets, settlors and beneficiaries are not residents.
It is not necessary to register the trust in Mauritius or appoint an authorized local trustee, although it is recommended for additional protection of assets.

The most common types of fiduciary structures in Mauritius include Asset Protection Trusts, Charitable Trusts, Discretionary Trusts, Business Trusts, Object Trusts and Unitary Trusts.

A Mauritius offshore trust is subject to a 15% income tax only if the settlers or beneficiaries are non-residents, the trust has a Global Business License or if the trust is a purpose trust.

Mauritius offshore trusts are attractive for family wealth management and asset protection. They are also commonly used as special purpose vehicles for investment activities in Africa.

The creation of a Mauritius International Foundation is a combination of a trust and a company, allowing the founder to maintain control over the structure and ensure its perpetuity.

Foreigners can register their foundation in Mauritius with US$1 of capital; and the appointments of a corporate secretary authorized by the Financial Services Commission and a member of the resident council.

The identities of the foundation's founders, board members, and beneficiaries are not publicly disclosed, and the entity is also not subject to local taxes as long as the assets are located abroad and the purposes/beneficiaries of the foundation are non-resident.

Registering an offshore foundation in Mauritius is a good way to carry out charitable activities or facilitate the wealth management of a family or group of companies.

If you wish to register a company in Mauritius, Foster Swiss can advise you. We help you in practically everything: we provide advice from the moment you choose a corporate structure for your company until even one year after you have incorporated your company. And of course we take care of the whole process for you.

For more information on this topic or any requirement related to our services, you can contact directly through info@fosterswiss.com