Mauritius is one of the great places among African countries for investing and doing business. Mauritius company setup is comparatively easy and simple process.
There are few different types of company structure available in Mauritius and one should learn the advantage and disadvantage factors of each structure before setting up a company in Mauritius.
In this article, we are going to discuss the systematic process of Mauritius company setup and show how potential investor may set up a company in Mauritius.
Types of companies in Mauritius
According to the company act 2001, there are four different types of company structure available in Mauritius and these structures can subdivide again according to different legal statuses.
The major four types of company structures in Mauritius are private company, one-person company, public company, global business company (GBL1 & GBL2).
The private limited company gets its legal structure and cannot offer to the public.
For setting up a company in Mauritius with private company category, the number of shareholders should not exceed more than 25.
On another hand, the public company has no limit for the number of shareholders and can list on a stock exchange market. One may also be setting up a company in Mauritius as a one-person company with only one shareholder.
The only shareholder of the company remains as the director and by default, the laws for private company applies to this type of company.
The final category is the global business company and they generally involve business in offshore sectors.
Legal Status of setting up a Company
Foreign companies may be setting up a company in Mauritius and they got different available options. The general options available for foreign companies limited by share, limited by guarantee, Limited Liability Company.
The company has limited by share have limited liability on its shareholders and have to pay unpaid amount of share that is respectively held by shareholders.
For setting up a company in Mauritius, as limited by guarantee company established on the basis that the liability of shareholders limited by the constitution of the company and in the event of winding up;
the shareholders have to contribute to the asset. Finally, the limited liability company got the limited liability for all its actions and guarantees.
Mauritius Company Setup
For setting up a company in Mauritius, one should visit the office of Register of Companies (ROC) by in person or through an online site.
At first, one should determine a name for the company and then check if the name of the company is available for registration.
The cost for checking is approx RS 3200 and if one wishes to reserve the name then additional RS.100 should be paid to the registration office.
The second step for setting a company in Mauritius is to fill up all the required form with all the required details for the proposed company.
Once the application gets approve then one may obtain a business registration card with the company’s number and certification of incorporation and receipt for the relevant documents.
After the completion of the second step, the ROC office will notify the Mauritius Revenue Authority (MRA), the Municipal or District Council (Which is the local authority) and also the Ministry of Social Security about the incorporation of the company.
Then the company will be registered with MRA and Ministry of Social Security by default.
This is one of major step for Mauritius company registration. Additionally, ROC will notify other authorities such as police, fire department, Health Ministry and the Ministry of Environment about the incorporation and starting operational date of the company.
After the completion of the steps mentioned above, one should do the following things for setting up a company in Mauritius:
- You need to obtain the certificate of incorporation from the local municipal office along with the request letter for producing the company’s seal.
- Then you need to pay license fees to the local authority within 15 days of starting your business activity. The annual license fees for the company should be paid in two equal installments (one is before 31st January and the second one in before 31st July) within the respective financial year. If you fail to pay the amount within the period then the authority may impose fine which 50% of the total amount.
According to the law of Mauritius, you need to submit following documents during paying the first installment of license fees. These are:
- Trade License – 2 copies
- Applicant’s Identity Card
- The incorporation certificate obtained from the local authority
- Granted permit for the building’s site plan.
- Proof of ownership or contract document for the business premises.
- The identity card of premises owner.
Additionally, for registering the company with Ministry of Social Science, one should submit the employer registration number, Business registration card and the details of the directors of the company.