Mauricio is a great destination for potential investors and entrepreneurs. Establishing a business is quite simple, with a relatively simple process.

The different types of companies in Mauritius

The Companies Act of 2001 refers to four different types of companies:

• Private company: a private company that cannot be offered to the public, with a number of shareholders not exceeding 25.
• Sole proprietorship: it is a company with only one shareholder who is also the sole director of that company. The company is by default a private company.
• Public company: public company that is listed on the stock markets. There is no limit to the number of shareholders.
• Global Business Company: companies involved in the offshore sectors (GBL1 and GBL2)

Different legal statuses

Foreign investors have several options when creating a company:

• Limited by shares: a company limited by shares is formed on the basis that the liability of its shareholders is limited to any amount not paid on the shares respectively held by the shareholders
• Limited by guarantee: a company limited by guarantee is a company formed on the basis of having the responsibility of its shareholders limited by its constitution to the amount that the shareholders can commit respectively to contribute to the assets of the company in case of liquidation
• Limited liability for actions and guarantees.

Procedures

Arguably the most important aspect of starting business in Mauritius a foreign company land like Mauritius is registering the business. It is of absolute importance that a company should be registered before they start their business operations. The registration process is a number of steps which are very easy and can be done without much fuss. The registrar of business is where companies can get registered. A couple of forms need to be filled out and a few businesses related documents need to be submitted before the business is registered

To register the company, visit the Company Registry (ROC), either in person or online, to determine if the name of your proposed company is available or not. The cost is approximately Rs. 3,200, not including Rs. 100 needed to reserve the name of the company.

Once this is done, you must complete a form with all the details of the proposed company. A business registration card in with the company number and the certificate of incorporation will be delivered once the application form has been approved and the relevant documents have been received.

Subsequently, the ROC will inform the Mauritius Revenue Authority (MRA), the local authorities (the Municipal or District Council) and the Ministry of Social Security of the incorporation of the company. The company will register with the MRA and the Ministry of Social Security.

Once the company is registered, the ROC will also inform other competent authorities (the police, the fire department, the Ministry of Health, the Ministry of Environment) of the incorporation of the company, as well as the start date of business activities.

You must go to the nearest Municipal Council with the Certificate of incorporation of the company, along with a letter requesting the production of a company seal. You will also be asked to pay your license fees to local authorities, which must be paid within the first 15 days after the start of business activities and must be paid in two equal installments during each financial year. The first deposit must be paid before January 31 and the second before July 31. The local authority reserves the right to impose a fine of 50% of the total amount that has not been paid within the prescribed period.

The following documents must be provided during the first installment of the license fee (from Rs 2,500):

• Two copies of the commercial license
• The identity document of the applicant.
• The certificate of incorporation
• The site plan for which the Building and Land Use Permit was granted
• Proof of ownership of the facilities, consent of the lessor or any contract on the facilities.
• The identity document of the owner of the premises

Then, the company must be registered with the Ministry of Social Security along with the relevant documents when submitting the following:

• Employer Registration Number
• Business Registration Card
• List of directors of the company.

The information must be downloaded from the Central Business Registry Database located in the Business Registry.