Joint venture company registration Mauritius
As consultant of (private limited company) joint venture company registration Mauritius, you are requested to read knowing registration procedure, cost, fee, time line to setup business. Before any corporations enter into a joint venture arrangement, these companies would need to have a reason to do so. Some of these reasons may be as follows –
- To expand their markets to a new area or country
- To increase its business turnover or sales
- To access new technologies offered by a potential partner
- To aim for new product development
There are also a few points to consider before setting up a joint venture company registration Mauritius even anywhere in the world. They are –
- Name of the joint venture company (merger, acquisition) – The most important aspect of the joint venture is the name of the company. Will it be a combination of both the partners company names and a new company name altogether?
- Choice of business – Where will the partners decide to do this business? Will there be any special allocations as to the territory each of the joint venture partner will have?
- Targets and intentions – Have both the joint venture partners agreed on the targets and intentions? Is there any consensus on the initial budgets?
- Termination of the Joint Venture Company – How long wills this business partnership last? Is there any agreed date as to when the Joint Venture Company Registration Mauritius will be terminated?
- The type of company – Has the type of company to be set up been determined in Mauritius?
- Shareholding structure – Which of the business partners will have more said in the Joint Venture Company. What is the percentage of shares the joint venture partners will have?
- Responsibilities – What responsibility will each joint venture partner have?
All the above concerns will normally be discussed and agreed upon before the joint venture company is set up. All the terms and conditions of the joint venture will then be stated in the Joint Venture Agreement (JVA). Only after signing the JVA will the company be incorporated.
In Mauritius, a JV company can be incorporated or unincorporated. If the JV Company is incorporated, it will take form of a company set up in Mauritius. If the JV Company is unincorporated, the partners will enter into a contractual agreement to govern the terms of the JV.
Types of business structure in Mauritius
There are basically 3 types of business structures of companies that you can set up in Mauritius. They are –
- Domestic Company –This is a normally incorporated company owned and managed by Mauritians.
- Company holding a category 1 Global Business Licence – This type of company is also known as a resident company. It is set up mainly to take advantage of the low corporate tax rate in the country. This type of company can also do business with other local Mauritian companies or its residents such as financial or insurance services provided that they obtain the necessary approvals and permits to conduct the business.
- Company holding a category 2 Global Business Licence (GBC 2) – GBS 2 are considered as foreign companies or offshore companies. This type of companies mainly conducts their business dealings outside of Mauritius. The main purpose of setting up a GBC 2 company is also for tax purposes as they are not subject to the country’s corporate tax.
Type of companies
From the above structure and nature of the companies, you also need to decide on what type of company to incorporate. They are a company limited by shares, a company limited by guarantee, a company limited by shares and guarantee and an unlimited company.
For a JV company that is incorporated, it will normally take on the nature of a private company.
Setting up joint venture limited company in Mauritius
The following is to setting up joint venture limited company in Mauritius for the above-
- Reserving a company name – First and foremost you need to come up with a name for your company and you would need to register this name with the Registrar of Companies (ROC). The ROC can refuse the name if-
- It contravenes a legal enactment
- There is another company with the same name
- The name is deemed offensive by the ROC
The application to register the company can also be done online but you must first register with the Mauritius Network Services.
- Submit the application – The application form must have the following information for setting up joint venture limited company Mauritius:-
- a) Name of the company
- b) Details of the director and secretary such as their full names, residential address and service address
- c) Any business occupation of the directors in any other company.
- d) Details of the shareholders.
- e) Type of company whether it’s a limited or unlimited.
- f) Structure of the company whether it’s public or private
- g) The registered office of the company
- h) The business activity and location of the business
- i) Full name of the applicant
- Once the application complies with the Companies Act and payment of the prescribed fees, the Registrar will issue the Certificate of Incorporation and issue a unique company number.
- Once the Corporate and business registration department updates the company’s information in the Central Business Registration Database, the Mauritius Revenue Authority, Local Authority (Municipality) and the Ministry of Social Security are all notified of any newly incorporated company. As such the new company is automatically registered for taxes and doesn’t need to file a separate application at the tax office.
- Once the company has been incorporated, it must be registered with the Registrar of Business under the Business Registration Act 2002 at least 2 days prior to the expected date to start the business.
- Pay licence fees – The newly established company then needs to pay the licence fees. This must be done within 15 days upon starting the business operation. Thereafter for every subsequent financial year, it can be paid in 2 equal installments.
- The company would then need to register with the Social Security Office. The new company should submit a monthly return of contributions to this office.
- Make a company seal – The Company seal must be used in the normal business operations as law of Mauritius.