Incorporating an offshore company in Mauritius: the Authorized Company

StraFin introduces you to Authorized Companies — business structures with their main activity taking place outside Mauritius. These foreign companies benefit from a unique tax status as they are excluded from double-taxation treaties.

Introduced in 2018, Authorized Companies are essentially dedicated to activities that are carried out outside Mauritius, including control and management. Authorized Companies are governed by the Companies Act 2001 and require the Financial Services Commission’s (FSC) approval. From a tax perspective, since they are not resident companies in Mauritius, they are not concerned by the Mauritian income tax system. Their income is considered to be from foreign sources.

Why incorporate an Authorized Company in Mauritius?

Located in the heart of the Indian Ocean, at the crossroads of Africa and Asia, Mauritius is well known for its business-friendly environment and several advantages. It is ranked by the World Bank as the most business-friendly country in Africa. In addition, foreign investors benefit from a sound regulatory framework, good corporate governance and a robust hybrid legal system combining civil and common law. Its economic diversity, political and social stability, as well as extensive agreements with other African countries are other factors that make it attractive in the eyes of foreign investors.

Mauritius can also boast a reliable banking system, a skilled bilingual workforce, the absence of exchange controls and capital gains and withholding taxes, and membership in various international organizations. In addition, strict anti-money laundering laws and those against the financing of terrorism, coupled with a commitment to abide by international standards, demonstrate the Mauritian government’s determination to make the island a transparent and secure international financial hub.

Did you know?

In the World Bank’s Doing Business Index 2022, Mauritius ranks 13th out of 190 economies worldwide. This significant improvement, from 20th place in 2018 to 13th place in 2019, reflects more straightforward business-friendly regulations with better protection of property rights.

What types of businesses can be carried out through an Authorized Company?

Authorized Companies can carry out a wide range of business activities, including:

• Investment management;
• Real estate investment;
• International transactions;
• Consulting and management services;
• IT services;
• Logistics;
• >Marketing services;
• Fleet and ship management;
• Passive investment holdings;
• Individual transactions through Special Purpose Vehicles (SPV).

However, Authorized Companies are not allowed to carry out certain activities, such as the following:

• Financial services, including banking;
• Management, holding, or handling of collective investment funds as a professional administrator;
• Providing head office, agency, administrative, secretarial, or other corporate services;
• Providing trust services.

Besides, any activity likely to harm Mauritius’ reputation as an international financial center or contrary to the public interest, as determined by the Financial Services Commission (FSC), is also prohibited for Authorized Companies.

How to incorporate an Authorized Company in Mauritius?>

For an Authorized Company to be incorporated in Mauritius, the majority of shares, voting rights, or legal interests of the company must be held or controlled by non-residents.

An accredited agent also has to be appointed in Mauritius, usually a management company that will handle all the proceedings. This company must comply with various obligations, including the filing of tax returns, financial statements and any other required documents.

Moreover, the company must be managed in Mauritius, where strategic decisions are made and most board meetings are held.

StraFin helps you set up your Authorized Company

Choose high-quality, professional support for your foreign investments in Mauritius. Contact our team of experts to set up your Authorized Company. StraFin assists you on every step of your company’s incorporation, including communication with the relevant authorities and opening bank accounts.