The Authorised Company in Mauritius

A versatile solution for globally focused enterprises

An Authorised Company (AC) is a legal business structure available in Mauritius, primarily tailored for foreign investors and companies seeking a streamlined offshore setup while operating locally. Unlike other business categories such as Global Business Companies (GBCs), Authorised Companies offer a simpler incorporation process and a more favourable fiscal regime for specific types of activities. ACs can be formed by resident or non-resident individuals or corporate entities. C&S Secretarial Services gives you an insight into ACs and why they present a strategic avenue for international ventures.

Who should consider an Authorised Company in Mauritius?

Mauritius has built a legislative framework that encourages the formation of Authorised Companies as part of its drive to attract foreign capital while preserving the dynamism of its local economy. The support of local experts, such as C&S Secretarial Services, proves invaluable in navigating the administrative and legal steps necessary to establish such entities efficiently and in full compliance.

Understanding the Authorised Company: Definition and key traits

An Authorised Company is an offshore entity that permits a business or investor to engage in commercial activities outside Mauritius, subject to certain limitations. It is not permitted to conduct business directly with Mauritian residents but can interact with international clients and partners.

This model is particularly attractive to entities seeking to optimise tax exposure without falling under stringent local tax obligations. Unlike domestic companies, which must pay corporate income tax, Authorised Companies may qualify for tax exemption, subject to regulatory conditions.

Key attributes of Authorised Companies include:

• A flexible corporate structure, notably more adaptable than a GBC. It suits enterprises that wish to establish a presence in Mauritius without engaging in local transactions.
• While exempt from local corporate tax, ACs are still required to meet basic legal obligations, including the appointment of at least one director and maintaining proper accounting records.
• Shareholders and directors enjoy a relatively high level of confidentiality which often appeals to international investors.

Steps to establish an Authorised Company in Mauritius

Forming an Authorised Company requires strict adherence to the legal process. The fundamental steps include:

Company name selection: The proposed name must be approved by the Corporate and Business Registration Department (CBRD) and must not be similar to existing names.

Registered address: The company must have a physical address in Mauritius, properly registered with the authorities.

Directors and shareholders: An Authorised Company must appoint at least one director and one shareholder, either individuals or legal entities. Residency in Mauritius is not a requirement, allowing for remote management by foreign investors.

Share capital: Unlike GBCs, there is no fixed minimum capital requirement. However, it is advisable to allocate a reasonable capital sum to build trust with partners and demonstrate financial stability.

Legal documentation: The company must file several key documents, including its constitution, a declaration of compliance, and formal appointments of directors and shareholders.

One of the primary advantages of the Authorised Company lies in its simplified administration and reduced maintenance costs compared to more complex entities like Global Business Companies.

Why opt for an Authorised Company in Mauritius?

Choosing to incorporate an Authorised Company can be a strategically sound decision for businesses aiming to leverage the tax efficiencies Mauritius offers without engaging in local trade. That said, it’s essential to evaluate whether this structure aligns with your operational goals.

Here are three compelling reasons to choose the Authorised Company model:

• With minimal capital requirements and ease of management, ACs are often more cost-effective to maintain than GBCs.
• For businesses that intend to establish a footprint in Mauritius while dealing with overseas clients, the Authorised Company offers necessary flexibility in a simplified framework.
• As an offshore entity, the Authorised Company may be eligible for corporate tax exemption, helping maximise profits while remaining fully compliant with local regulations.

Nonetheless, consulting with qualified professionals such as C&S Secretarial Services is crucial. They will assess the suitability of this structure to your context and ensure your compliance with the necessary legal and tax obligations.

Where to register an Authorised Company in Mauritius?

Mauritius presents an ideal setting for registering an Authorised Company thanks to its flexible legal environment and advantageous tax policies. The country has positioned itself as a reputable financial centre, supported by numerous tax treaties that help avoid double taxation, another compelling factor for global investors.

To proceed, one must engage with the Corporate and Business Registration Department and follow all prescribed legal and fiscal protocols. It is strongly recommended to partner with local professionals like C&S Secretarial Services, who can guide you from incorporation through to ongoing compliance and operational support.

Conclusion

The Authorised Company stands out as a strategic business vehicle for international enterprises seeking to operate from Mauritius while steering clear of domestic market obligations. With its attractive tax framework and streamlined management requirements, it is a viable option for many.
For tailored advice and support, contact C&S Secretarial Services. Their team of seasoned professionals is ready to assist you at every step, from selecting the right corporate structure to ensuring full legal compliance throughout your journey.