When setting up a company in Mauritius, the type of business you are planning to operate will determine whether you need the services of a management company. If you are establishing a local business or using a company as a holding vehicle for property, you will only need a domestic company, which does not require a management company. However, for businesses involved in global trading or those seeking to benefit from Mauritius’ offshore financial structures, establishing an offshore company will be necessary—and this is where a management company plays a crucial role. A management company is also necessary for any special financial licences such as a Family Office, a FOREX exchange of Investment Advisor Licence.

Offshore companies, such as Global Business Companies (GBCs) and Authorised Companies (ACs), must be set up through a licensed management company in Mauritius. Choosing the right management company is vital for compliance and smooth operations for global business ventures.

Types of Offshore Companies in Mauritius

There are two main types of offshore entities in Mauritius: Global Business Companies (GBCs) and Authorised Companies (ACs). Each serves different purposes and has specific regulatory requirements.

Global Business Companies (GBCs)

If your business operates primarily outside Mauritius, a Global Business Company (GBC) could be the most appropriate choice. As an offshore entity, a GBC is a cost-effective structure for international tax planning, thanks to Mauritius’ extensive double taxation treaties.

A GBC is considered tax-resident in Mauritius, which enables it to benefit from an 80% exemption on corporate income tax, bringing the effective tax rate to just 3%. To qualify for this tax advantage, a GBC must meet predefined substance requirements, demonstrating a genuine business presence in Mauritius.

Authorised Companies (ACs)

If your business is managed and operated outside Mauritius, an Authorised Company (AC) may be the better option. Unlike GBCs, ACs are considered foreign entities for tax purposes and are not subject to tax in Mauritius. This makes them an ideal structure for businesses that do not require tax residency in Mauritius.

Management Company in Mauritius

A management company in Mauritius is a corporate service provider responsible for setting up and administering offshore companies such as GBCs and ACs, as well as other entities like trusts and foundations. They handle essential services such as incorporation, directorship, company secretarial duties, and bank account setup.

In other jurisdictions, a management company might be referred to as a corporate service provider or trust company, but in Mauritius, the term has a slightly broader meaning and encompasses all administrative services needed for offshore companies.

Key Functions of a Management Company in Mauritius

Management companies in Mauritius provide a wide range of services to support offshore businesses. These services include:

• Company Incorporation: The management company facilitates the setup of both Global Business Companies (GBCs) and Authorised Companies (ACs).
• Directorship and Office Services: They provide resident Mauritian directors, which is a requirement for GBCs to meet substance rules. They also supply a registered office address and a company secretary, both of which are mandatory.
• Bank Account Setup: Management companies help establish offshore bank accounts for companies and can also assist in setting up personal offshore bank accounts for the owners.
• Accounting and Administration: They offer accounting and administrative services to ensure the company remains compliant with local regulations, including filing financial reports and tax documents.

Regulation of Management Companies in Mauritius

All management companies in Mauritius are regulated by the Financial Services Commission (FSC), which oversees their compliance with local laws. Management companies also interact with the Registrar of Companies and the Bank of Mauritius when necessary, but it is the FSC that ensures regulatory compliance for both the management companies and the offshore entities they administer.

Choosing a management company that adheres to these regulations is critical to avoiding potential issues during audits by the FSC. A well-organised management company ensures that client files are maintained in accordance with local regulations, minimizing scrutiny from regulatory authorities.

Choosing a Management Company in Mauritius

With over 200 FSC-licensed management companies in Mauritius, finding the right one can be a challenge. Here are several factors to consider when selecting the right management company in Mauritius for your business:

Cost

The fees charged by management companies can vary significantly, with a 40% spread between the cheapest and most expensive. When comparing prices, it is important to carefully review what services are included in the initial quote. Some companies may offer lower rates but exclude essential services like accounting and audits or tax residence certificates, leading to unexpected costs later. Always factor in the full scope of services to avoid hidden fees.

Responsiveness

Many management companies provide excellent service during the onboarding process, where you may deal with senior members of their team. However, after onboarding, the service level can drop when you are passed to the administrative team. It is important to choose a management company that maintains high service standards even after the initial setup. Human relationships and consistent communication are essential in managing your business effectively.

Location

Mauritius is a small island and the location of the management company—whether in Port Louis, Ebene, or Grand Baie—will not impact service. However, if your business requires a global reach, you might prefer a management company that has offices or partners abroad. This is particularly important if your company needs to manage multiple global entities seamlessly from Mauritius. Companies with offices in Dubai, London, or Cape Town, for example, may provide better global support.

Global Structure

Some management companies in Mauritius are standalone operations with no international offices to set up companies outside of Mauritius, while others maintain global partnerships. It is advisable to select a company with at least affiliate offices abroad, or better yet, their own international offices. This ensures a more seamless administration of global structures and facilitates better cross-border management of your entities.

Specialisms

While most management companies can handle basic GBC or AC setups, some businesses may require specialised services. For instance, if your business needs an Investment Dealer License or a Payment Intermediary Services License, you will need a management company with the expertise to navigate these more complex processes. Additionally, not all management companies can administer funds in Mauritius, so it is crucial to choose one that matches your specific business needs.

 

How we can help

TBI Mauritius is a team of immigration consultants and relocation advisors with over 10 years of experience in the industry. In addition to our relocation services, we offer comprehensive support for company formation, including connecting you with the right management companies in Mauritius where you will not be overcharged and where the service is reliable. Whether you are setting up an offshore entity or require assistance with corporate services, we can guide you through the entire process.

 

What TBI Business Advisors can do for you:

• We will have a Zoom/ Teams call or email exchange to understand your requirements.
• We can assist with the finding and purchasing of property, and setting up of an entity to purchase through.
• TBI will advise on the appropriate permit or visa for moving to Mauritius.
• We will send a detailed proposal with clear costs, timeframes and explanations.
• We will assemble the documents and make the application on your behalf.
• If you need assistance with setting up companies whether as an investor or just creating a business here.
• We can assist with relocation tasks such as helping with schools, accommodation, insurance, choosing locations.
• The directors can act as Commissioner for Oaths.
• We can assist with other business advice and can bring in law firms as and when required.

Please contact us via our website, via email to info@tbimauritius.com or via the form below.

While every effort is made to ensure that the information given is accurate, the information on this site does not contain legal, tax or any other professional advice. We accept no responsibility or liability due to any information or representation, whether accurate or not, relied upon in the contents. It is an information guide to provide the reader with a useful general, but basic understanding of the different considerations. You must seek local legal, tax or other professional advice before relying on the contents of this site.