CHOICE OF BUSINESS STRUCTURES
Some of the commonly used structures for doing business in Mauritius are:
1) Companies – can be either private or public
- Domestic Company
- Global Business Company (GBL)
- Authorised Company (AC)
Domestic companies, domiciled in Mauritius, are incorporated under the Companies Act 2001 and are taxed at 15%. The set up and management cost are relatively low. This structure is used for conducting business with Mauritius Residents.
Global Business Companies are incorporated under the Companies Act 2001 and are licenced by the Financial Services Commission. GBLs are allowed to conduct business with both residents and non-residents of Mauritius. They are taxed at 15% but may avail a partial tax credit on foreign source specified income whereby the effective tax rate is 3%.
Authorised Companies are incorporated under the Companies Act 2001 and are licenced by the Financial Services Commission. There are deemed as non-resident and therefore are tax exempt in Mauritius.
2) Societe or Partnerships
Societes commonly called partnerships are government by the Code of Commerce (Amendment) Act 1985
3) Limited Partnerships and limited liability partnerships
Limited partnership is set up under the Limited Partnerships Act 2011.
A limited liability partnership combines the features of both a company and a limited partnership and was introduced by the Limited Liability Partnership Act 2016.
Profits are allocated to members who then pay Income Tax on their respective profits through their personal income tax return. The tax residence of the member, and where the origin of the profits in the Limited Partnerships will determine in which jurisdiction these profits will be taxed
A foundation is set up under the Foundation Act 2012 and can be set up for any purpose specified in its charter provided. A foundation can be considered as non-resident and, therefore, exempt from income tax. It may also hold a Global Business Licence and be tax resident such that the Foundation would benefit from Double Taxation Avoidance Treaties (DTAs).
A trust is established under the Trust Act 2001 and is liable to tax on its chargeable income.
Trusts can be resident trusts or non-resident trusts. Resident trusts are taxed at 15% and benefit from the Mauritius tax treaty networks.Non-resident trusts and their non-resident beneficiaries are exempt from taxes.
Distributions made by a Trust (resident or non-resident) are exempt from Mauritius tax in the hands of the beneficiaries.
6) Protected Cell Company (PCC)
PCC is established under the Protected Cell Company Act 1999 and is a special type of corporate vehicle made up of different cells that are segregated from each other. A PCC is liable for tax on its chargeable income at the rate of 15% but may avail of partial exemption on certain categories of income.