Mauritius is one of the great
This LLP act provides the registration and administration guidelines for limited liability partnership in Mauritius Company, which is generally, refer to as LLP.
The initiation LLP business structure in Mauritius promotes the country’s economic level and brings it in line with worldwide corporate practices.
This is to assume that the initiation of this business vehicle also makes boost the financial sector of the country.
What is LLP Mauritius?
LLP is a type of business structure in Mauritius that integrates the basic features of both companies and the partnership.
There are some difference exists between limited liability partnership and limited partnership and at the end, the general partners of the company are jointly liable for the actions of the company.
The structure of an LLP company exists in such way that the general partners of the company cannot
Additionally, in LLP, any partner is not liable for the acts of other partners of the company. However, they got unlimited liability for their own action or omissions.
For these reasons, LLP is a suitable business vehicle that allows limited liability protection provided by the company structure and at the same time, it allows the partners to engage in management activity.
Requirements for setting up a limited liability partnership in Mauritius
Limited liability partnership in Mauritius is the very popular business vehicle and the LLP acts clearly mentioned the types of personnel those are eligible to start LLP Mauritius. These are,
- The companies provide consultancy services or professional services
- Global legal advisory services license holders that may issued by the financial services committee.
- The companies that is engaging in activities that may prescribe.
Please note that the LLP act provides the opportunity for existing entities to convert into LLP by fulfilling the requirements. So corporate body or unincorporated body can also be converted in LLP.
Agreement and Constitution Requirements for LLP Mauritius
It is mandatory for the Limited liability partnership in Mauritius companies to have a partnership agreement and all the partners of the LLP Company should sign this agreement.
The partnership agreement also governs the code conduct by which the LLP should operate. This also specifies the mutual rights and duties of the partners and the rights and duties that related to their LLP organization.
Any LLP Mauritius should have at least two individuals or corporate and a manager. It is worth to know that the LLP acts do not impose any residency restriction on the partners of the company, the manager of the company should be a neutral person, and he or she should be qualified for the secretary position according to the section of Company.
It is also mandatory for the manager to have the residency in Mauritius. The exception is for the LLP holding the global business license category 1, where the manager of the company must be a management member of the company.
Limited liability of partners in LLP Mauritius
According to the law of limited liability partnership in Mauritius, the partners of the LLP will not be personally liable for the acts and or omissions of another partner of the company.
However, the partners must have unlimited liability for their own actions or actions. In terms of debt, the partners would not be responsible for the amount that exceeds their amount of contribution.
Although it might require to consider the cases where the LLP Mauritius has been dissolved and the company is unable to pay debts and then depending on application the bankruptcy division of Supreme Court may declare any partner or any former partner of the company or any manager or former manager of the company is personally responsible for the debt.
Taxation for LLP Mauritius
According to the income tax act, the limited liability partnership in Mauritius falls under the category of society and according to the tax agreement, the resident LLP will not be liable for the income tax. However, income tax imposed on every associate of a resident LLP based on his share of income from the LLP.
For a specified income year, the net income of an associate of a resident LLP will
For the LLP that is holding the global business license category 1, the associates of the LLP are liable to pay income tax under the law described at financial Services Act 2007. The amount of tax rate to be paid is 15 % of his share of income from the LLP.