Mauritius situated around 2000 km southeast coast of Africa and in the center of the Indian Ocean. The country stands on a strategic location between Asia and Africa and it has good access to both continents. The country got a collaboration with various business societies such as GCC, ASIAN, EU etc and the country got a trade agreement with many other countries. Social, political and economic structure for the country is business friendly, very stable since few decades and well-established infrastructures such as roads, airports, and IT networks are also suitable for business. There are few business structures available in the country and the private limited company is one of them. Setting up a private limited company in Mauritius is not difficult and one may set up a private limited company Mauritius by fulfilling few requirements. In this article, we are going to discuss how to set up a private limited company Mauritius, requirements, advantages and also limited private company Mauritius.
Private Limited Company Mauritius:
In Mauritius, private limited companies established based on the principle that it cannot have more than 25 shareholders and among the shareholders, if two or more of its shareholders are holding any jointly share then that share would be considered as the single share. While computing the number of shareholders, the person who is working in the company cannot consider as a shareholder. The private limited company Mauritius have the obligation that it cannot offer its share for public subscription or debenture and also the share of the company is now transferable. According to the company act of Mauritius, the private limited company should dispense shareholders meetings and the minutes of the meetings should enter into the minute book. Additionally private limited company Mauritius may remove its directors from the office with the special resolution under section 138(2). Private limited company Mauritius has the advantages that the company may dispense provision of the annual report according to unanimous resolution. Additionally, by the unanimous agreement between the shareholders, there is a possibility to dispense with the observance of any matter which referred to in section 272.
Incorporation process for Private limited company Mauritius
In Mauritius, no governmental approval is required for beginning the incorporation process for the private limited company. Although, there are few specific business types that may require obtaining special licensing. The first step for the incorporation process is to choose a name for the company and arrange the reservation of the name with the Register of Companies (ROC) office. The general period required for name registration is normally 24 hours and the reserved name shall remain for the applicant up to 2 months from the date of the notice. The reservation timeframe may further extend for another 2 months upon submitting an application for action time. There are few restrictions applies for choosing the company’s name and it is not necessary that the name of the company should end with Ltd or Ltee. There are options for the companies to choose name ending with corp, B.V, N.V, S.A etc in Mauritius.
After the name gets to approve, one may proceed to incorporation process by submitting an application form with required documents. The consent of each director or secretary (whichever applies) must be submitted with the application form. Additionally, the consent for each shareholder of the proposed company, including the statement of class and number of shares takes by each shareholder and the consideration paid by the shareholders against each share must submit to the authority. In addition, a true certified copy of the constitution of the company and the certifying letter from law practitioner is stating that the application complies with all the laws in Mauritius must be submitted along with application form. The company becomes incorporate when it gets the certificate of incorporation from the register office. According to Financial service Commission Act 2007, the company also has to apply for obtaining category one (GBC 1) or category two (GBC 2) global business license that may be issued by the Financial Service Commission (FSC). A global business license shall state the purpose of the company for which it was incorporated. The private limited company falls under the global business license one category and the incorporation process generally completed within 5 to 8 business days from the date of application with all the necessary documents.
New requirements for Private limited company Mauritius:
There are some new criteria placed for private limited company Mauritius from January 2015 and these are,
- The company should have a registered office in Mauritius
- The company should appoint an employee on a full-time basis for an administrative/technical level and among them, at least one person should reside in Mauritius.
- In the case of disputes, the constitution of the company shall resolve by the way of arbitration in Mauritius.