What is an authorised company?
Introduced in the Finance Act 2018 (Miscellaneous Provisions), an Authorised Company (AC) is a company whose business activities are conducted exclusively outside Mauritius. Just like a British Virgin Island International Business Company, an AC cannot do business within the Republic of Mauritius. The control and management of an AC must mandatorily be outside of Mauritius. The AC is incorporated under the Companies Act 2001 and is licensed by the Financial Services Commission (FSC).
An AC is not tax resident in Mauritius and does not have access to the network of Double Taxation Avoidance Agreements which the country has signed with various countries. As an entity that is not tax resident in Mauritius, the ACְ’s income will not be subject to tax in Mauritius. The income derived by an AC is considered a foreign source income for income tax purposes in Mauritius.
Requirements for setting up an Authorised Company
To set up an AC in Mauritius, it is required that the company’s (other than a bank) majority of shares, voting rights, legal or beneficial interest are detained or controlled by a person or group of people who are not Mauritian citizens. An individual or group of individuals having voting rights, legal or beneficial interest for example will not be considered if the latter is of Mauritian citizenship.
The main requirements to set up an AC include:
- Minimum of one shareholder
- Copy of ID and/or passport, and proof of the residential address
- Minimum paid-up capital of one share
- Appointment of one director (Mauritian or foreigner)
- Have a registered office in Mauritius
- May hold meetings in any country and may attend such meetings by electronic means
- Main bank account does not need to be in Mauritius
- Required due diligence: promoters, beneficial owners/shareholders, directors, bank account signatories
While an AC has its control and management outside of Mauritius, the company is required to have, at all times, a Registered Agent in Mauritius which shall be a Management Company. Nexus Global Financial Services Limited is duly licensed by the FSC to act as a Management Company and has the experience to accompany you in the formation of your offshore company in Mauritius.
Duties of a Registered Agent comprise:
- The filing of a return of income with the Mauritius Revenue Authority
- The filing of a financial summary with the FSC
- The filing of any document required under relevant Acts
- The safekeeping of records (board minutes and resolutions, transactions records and such other documents required by the FSC)
- The undertaking of measures to combat money laundering and terrorist financing and any other related offences as specified by the FSC
Uses of an Authorised Company
According to the law, an AC is eligible for doing business in the following categories:
An AC is prohibited from conducting the following business activities:
- Banking
- Financial services
- Carrying out the business of holding or managing, or otherwise dealing with a collective investment fund or scheme as a professional functionary
- Providing registered office facilities, nominee services, directorship services, secretarial services or other services for corporations
- Providing trusteeship services by way of business
- Any other activities that the FSC may determine as being detrimental to the good repute of Mauritius as a centre for financial services or contrary to public interest
Other advantages of setting up a Company in Mauritius
Mauritius presents a favourable environment for the setting up of offshore entities in its jurisdiction. While a harmonised tax rate of 15% is applicable for corporates and individuals, eligible entities that decide to be tax resident in Mauritius can benefit from an exemption of 80% of the specific foreign source income or foreign tax credit subject to meeting minimum substance criteria. There is no withholding tax on dividends while capital and dividends can be freely repatriated. There is also no capital gains tax and no inheritance tax. There is no exchange control in Mauritius and corporates can hold multi-currency bank accounts. The country is recognised as the most business-friendly and investment-friendly in Africa. Mauritius is also a key member to major regional economic blocs. It has a dual legal system that combines the advantages of Common Law and Civil Law. It also has a free and democratic political system and there is privacy and security of information. A pool of highly qualified bilingual professionals is available for hire.
Are you looking to set up an Authorised Company or any other corporate entity in Mauritius to benefit from all the advantages the country offers? GET IN TOUCH, and our professional team will be glad to guide you.