Establishing an Authorised Company in Mauritius in 2024

1. What is an Authorised Company?

Authorised Companies are entities incorporated in Mauritius but are considered non-residents for tax purposes. To qualify as an AC, a company must meet the following criteria:

• The majority of its shares, voting rights, or beneficial interests are held by individuals or entities that are not citizens of Mauritius.
• Its business activities are conducted primarily outside Mauritius.
• Its place of effective management (POEM) is located outside Mauritius.

These companies must secure authorisation from the Financial Services Commission (FSC) to operate. They are subject to specific regulatory requirements that ensure their compliance with both domestic and international standards.

2. Key Features

Authorised Companies are tailored to meet the needs of international businesses, offering several unique features:

• Non-Resident Tax Status
  AC enjoy significant tax advantages as they are not considered residents in Mauritius for tax purposes. They benefit from a 0% corporate tax rate on income derived from outside Mauritius. However, any income sourced within Mauritius is subject to local tax regulations. AC must still file annual tax returns with the Mauritius Revenue Authority (MRA) to maintain transparency and compliance.
• Efficient Incorporation Process
  Incorporating an AC is straightforward and can be completed within ten days, provided all required documentation is submitted. This efficiency makes Mauritius an attractive jurisdiction for entrepreneurs seeking quick entry into global markets.
• Flexible Structure
  • Shareholders: An AC requires a minimum of one shareholder, and non-resident shareholders are permitted.
  • Directors: Corporate directors are allowed, and there is no requirement for directors to be resident in Mauritius. Also, to preserve the non-resident status, it is recommended that the majority of directors operate outside Mauritius.
  • Registered Agent: Every AC must appoint a registered agent in Mauritius, which is typically a licensed management company. This agent ensures compliance with local regulations and handles administrative functions.
• Confidentiality
  Confidentiality is a hallmark of the AC structure. Key documents, such as the register of shareholders, register of directors, and accounting records, are retained at the registered office in Mauritius. These records are not accessible to the public, providing an added layer of privacy for investors.

3. Regulatory Compliance and Restrictions

While Authorised Companies offer significant flexibility, they are also subject to specific regulatory restrictions to ensure proper governance. Some of the key restrictions include:

• AC cannot engage in certain regulated activities, such as banking, financial services, or providing trusteeship services.
• They are prohibited from leasing, holding, acquiring or disposing of an immovable property in Mauritius or employing staff who are residents of Mauritius.
• AC must conduct their business primarily outside Mauritius but are allowed certain activities within Mauritius, such as maintaining a foreign currency bank account or investing in listed securities on the Mauritian Stock Exchange.

Compliance with these regulations is critical to maintaining the AC’s status and ensuring its long-term viability.

Contact us at info@salvusfunds.com if you are interested in establishing an Authorised Company in Mauritius; our Licensing team is ready to guide you and answer your questions.

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4. Tax Considerations

One of the most compelling features of an Authorised Company is its favorable tax status. AC are exempt from corporate tax on foreign-sourced income. However, the country where the place of effective management is located may impose taxes on the company’s income.

To mitigate potential tax liabilities, it is essential to conduct a thorough assessment of the tax laws in the jurisdiction where the POEM is established. In some cases, obtaining a tax residency certificate from the relevant authorities in the POEM jurisdiction can provide additional clarity and protection against double taxation.

At SALVUS, we specialise in helping businesses navigate these complexities, providing expert advice to optimize tax structures and ensure compliance with international tax regulations.

5. Advantages of Authorised Companies

The Authorised Company structure offers several advantages, making it an ideal choice for international entrepreneurs and investors:

• Tax Efficiency
  With a 0% tax rate on foreign-sourced income, ACs provide a cost-effective way to structure international operations.
• Global Reach
  By focusing on activities outside Mauritius, ACs are well-positioned to tap into global markets, leveraging Mauritius’s strong network of bilateral and multilateral trade agreements.
• Confidentiality and Security
  The non-disclosure of key documents and limited public access to company records provide enhanced confidentiality for business owners.
• Ease of Operation
  The streamlined incorporation process and flexible regulatory framework make it easy to establish and manage an AC.

6. How SALVUS can assist your Investment Business Application

At SALVUS, we understand the complexities of establishing and managing Authorised Companies. Our team of experts provides comprehensive support throughout the entire process, from incorporation to ongoing compliance and tax optimization.

Our services include:

• Assistance with obtaining FSC authorisation
• Structuring the company to align with your business objectives
• Advising on tax-efficient strategies and compliance with local and international regulations
• Providing registered agent services to ensure smooth operations

Final Thoughts

Authorised Companies offer a unique opportunity for international businesses to leverage Mauritius as a gateway to global markets. With its favourable tax regime, flexible corporate structure, and robust regulatory framework, the AC is an excellent choice for entrepreneurs and investors looking to optimize their operations and expand their reach.

Contact us at info@salvusfunds.com if you are interested in establishing an Authorised Company in Mauritius; our Licensing team is ready to guide you and answer your questions.

#StayAhead

The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.