Mauritius is not only a white sand beach but also a major and best option gateway to get you doing business in India’s and Africa’s emerging markets. Mauritius geographically is situated off the southeastern Africa coast inside the Indian Ocean about 900km on Madagascar’s east. Since the time it attained independence back in 1968, the country has grown the diversified economy which has sustained growth mostly in tourism, finances, and industry.
Its government laid much of its focus on foreign investment with currently plus 9000 offshore companies functioning trading with South Africa and India. It has since 2005 done away with most taxes imposed on various goods in pursuit of converting that island to that shopping paradise.
How to register offshore companies in Mauritius?
Mauritius is a known offshore jurisdiction featuring plus 10000 offshore companies which are already functional with most of the companies being trading companies which shows that it is only after the short period and the island turns into e-commerce activity center.
However, when thinking of setting up an offshore company , below are the most ideal to major on:
- Forex or Binary options
- International business
- For purposes of inheritance
- Counselors or consultants
- Holding assets
- Holding rights of intellectual property
- Business to be some with India
Time and cost of opening offshore companies in Mauritius
There are some costs which come along with opening offshores in Mauritius and such include:
Before you can start off the company, you pay government charges but also a service fee is affected since you require company secretary a person who will act as the representative of your company with responsibilities of efficient company administration more so ensuring that the company complies with regulatory and statutory requirements.
As well the secretary will ensure implementation of directors’ decisions. The service fee combines; fees for corporate secretarial structuring and basic fee for an establishment.
It’s a requirement that the secretarial service for the company is maintained annually as that secretary will help in some key functions such as:
- Recoverable and any disbursements
- Accounting fee at the minimum
- Audit retainer at minimum
- Compliance fee paid yearly
- Statutory fee paid annually, registered agent and office
As per the government policy on finance, any non-resident company is required to pay some fees every year so as to keep the licenses of the company. Other countries include an annual return fee but Mauritius does not include that and so you will need to pay only the license fee annually.
Rules and regulations of offshore companies in Mauritius
The offshore companies are required to:
- The company should have 2 or more directors residing in Mauritius and all should be qualified for the positions as well as have the ability to exercise sound and mind judgment.
- That company should conduct directors’ meeting including not less than two other directors of Mauritius.
- The accounting records of the company should be kept at Mauritius in the office it was registered from throughout the period as long as the company is operating.
- The statutory statements on finance, as well as the, intends of the company should be prepared and auditing of such should be done in Mauritius
- The principal bank account of the company must remain in Mauritius.
Advantage and disadvantages of offshore companies
Advantages of offshore companies
- The owners of the business do not experience repatriation of profits and income
- No cases of forced transfer of shares or paying for stamp duty of the offshore company
- In Mauritius, the companies are offered high security and privacy levels of the data concerning the companies
- Even without aid from local nominees, the foreigners can easily open up offshore companies in Mauritius
- If you do not have 2 directors, you can start off with one director plus a shareholder then you can set up that company
- Unlike most offshore countries in Mauritius, the reporting and accounting details are not demanded as much
- If you need to, the offshore company can be converted to the onshore organization
Disadvantage of offshore companies
The greatest of all disadvantages is that it is very difficult to hire new employees and hence this becomes too bad especially once the takeover turns effective and new management fails to retain the employees which were there prior. Such leads to legal deputies as well as delayed acquiring of terminal benefits.