Updated: Nov 10, 2022
Are you tired of paying high taxes in your country or are you seeking to protect your valuable assets and privacy?
One of the most effective solutions is to establish an offshore company.
There are obviously different policies and regulations in every foreign jurisdiction, which give you different benefits. Firstly, you should consider the advantages of establishing an offshore company and why you wish to do so.
How will Mauritius offshore add value to your Business?
Mauritius has built a solid reputation as a booming international financial center, a jurisdiction that is internationally compliant, cost-effective, and complies with a hybrid legal framework.
There are several factors that contribute to its success, such as the country's wide range of qualified professionals, a harmonized tax system, a robust regulatory framework, and a suitable time zone, among others.
There are several types of legal entities that are available to foreign investors, such as a Global Business Corporation (known as GBC1), Authorised Company, Trust Company, Protected Cell Company, Limited Partnership, and Limited Life Company. The company can apply for a Global Business license which will then allow the company to carry out business outside Mauritius and apply for a Tax Residence Permit.
The distribution of dividends is tax-free
Mauritius has a free-market economy, free of exchange controls and inheritance taxes. It is therefore possible to transfer dividends, capital, and profits from Mauritius to another country without any restrictions. In Mauritius, profits can easily be transferred to your headquarters. The profits can be repatriated without additional deductions. In addition, capital gains and investment profits are not taxed.
Partial tax exemptions of 80% are proposed for GBC's businesses, such as commodity trading, consulting services and factoring
Doing Business in Mauritius
Mauritius ranks 1st in Africa and 13th worldwide by the World Bank’s 2020.
The process of establishing a business in Mauritius is quick and easy, and investors can even complete offshore company formation without having to travel to the country.
An offshore company can have 100% foreign shares and can have access to internationally recognized banks. A Mauritius offshore bank account will also provide higher interest rates and secure asset protection.
Double Taxation Avoidance
Mauritius has an extensive network of double taxation avoidance treaties with many countries, including those in Africa, the United Kingdom, Europe, Asia, South Africa, China, India, and Canada. Currently, Mauritius has signed 45 tax treaties that reinforce its position as a global financial hub. Incorporating your company in Mauritius will save you from paying double the tax on the same income. Additionally, you will be able to take advantage of the DTTAs.
Asset Protection and Confidentiality
The Republic of Mauritius offers excellent protection to foreign business owners. There are a number of treaties and multilateral agreements signed by Mauritius that ensure the protection of foreign investors. There are strict privacy laws in Mauritius, so one of the most common ways to protect your assets is to establish an offshore trust company.
It provides multiple layers of protection to the assets that are transferred into the trust company. You are not required to disclose the ownership of the company established in Mauritius offshore jurisdictions.
Political, Economic, and Social Stability
There are two major regulatory bodies in Mauritius, the Bank of Mauritius and the Financial Services Commission, which ensure compliance with KYC and AML regulations. Mauritius has a hybrid legal system (Common law and French civil code) and has a conducive business environment for ease of doing business.
On another note, Mauritius is situated in the east of Madagascar along the Indian Ocean, benefiting from a convenient time zone of GMT + four (4), and it is a major financial hub for both African and Asian countries. It enables seamless communication between Africa, Europe, Asia, and the United States.