Mauritius offshore company cons and pros

[troubled soul]

I find Mauritius offshore company provide zero corporate tax?
What are the pros and cons for this type of company?
Company formation for E-commerce, IT company ,Software company type of business, No business in Mauritius...
What are your thought ?
Anyone have experience in offshore company formation in Mauritius with zero tax?
Bank account opening >???

 

[Expatgenie]

I am also intrested to find out. I hope someone can help with information.

 

[JackAlabama]

Tax is not 0, but it can be below 15%. Full books and audit needed. Plus substance.
Cost to setup and run is very high. About 10k us$ and every year thereafter.

That what I have been told by 2 sources. I found that hard to believe, but did not dig deeper.

They make it seem having a company there is kind of a privilege, when I can have a US one for 20x less.

 

[myshufflemix]

Mauritius is accepted by many payment processors that also accept European companies for some reasons, so there is banking options and many financial instruments available.

It's a good choice if you setup the company right.

 

[JackAlabama]

Mauritius is accepted by many payment processors that also accept European companies for some reasons, so there is banking options and many financial instruments available.

It's a good choice if you setup the company right.

I can have this as well with a US LLC for 20x less and have a place people know well.

 

[myshufflemix]

I can have this as well with a US LLC for 20x less and have a place people know well.

Maybe you can that, but I believe it's not for all. Everyone has his own taste!

 

[Alexandre Felix]

The Mauritius tax regime is such that both corporate tax and personal income tax are harmonised at the rate of 15%. And so is the Value Added Tax (VAT) stands at 15%.

For offshore companies set up in Mauritius, taxation cannot be 0%.
However, subject to certain conditions being met, offshore companies can benefit from an 80% partial tax exemption, reducing the effective corporate income tax rate to 3% [= 15 - (0.8 x 15)].

Other tax incentives also exist, such as the exemption from:

• Withholding Tax on dividends;
• Capital Gains Tax; and
• capital duty on issued capital.

Plus, offshore companies can be used for a number of activities, including:

• E-commerce;
• IT / Software company;
• Asset / Wealth Management;
• Consultancy Services;
• Shipping; and
• Trading, amongst many others.

 

[JackAlabama]

The Mauritius tax regime is such that both corporate tax and personal income tax are harmonised at the rate of 15%. And so is the Value Added Tax (VAT) stands at 15%.

For offshore companies set up in Mauritius, taxation cannot be 0%.
However, subject to certain conditions being met, offshore companies can benefit from an 80% partial tax exemption, reducing the effective corporate income tax rate to 3% [= 15 - (0.8 x 15)].

Other tax incentives also exist, such as the exemption from:

• Withholding Tax on dividends;
• Capital Gains Tax; and
• capital duty on issued capital.

Plus, offshore companies can be used for a number of activities, including:

• E-commerce;
• IT / Software company;
• Asset / Wealth Management;
• Consultancy Services;
• Shipping; and
• Trading, amongst many others.

ive been quoted by more than 1 entity a price of 10k usd for setup and also yearly maintenance of such a Mauritius company. I tend to think this price is somewhat high, so Ive never followed thru.

Is that somewhat a real price in your opinion or am I being taken for a ride?

 

[JohnLocke]

ive been quoted by more than 1 entity a price of 10k usd for setup and also yearly maintenance of such a Mauritius company. I tend to think this price is somewhat high, so Ive never followed thru.

Last time I spoke with an CSP about it they quoted me roughly 5K for the company setup including bank account, I had to travel for the banking. Anyway, didn't proceed.

 

[369]

3-5k is average price

0% tax can be achieved if you have a tax residency in Mauritius and a company outside of Mauritius which is not involved in the local market.
Payouts via company CC are tax free

 

[Alexandre Felix]

ive been quoted by more than 1 entity a price of 10k usd for setup and also yearly maintenance of such a Mauritius company. I tend to think this price is somewhat high, so Ive never followed thru.

Is that somewhat a real price in your opinion or am I being taken for a ride?

When it comes to pricing, I believe there are different factors to take into consideration.

First is the type of offshore company you are looking to set up. There are 2 types : the Global Business Company (GBC), and the Authorised Company (AC).
A GBC has its main operations carried from Mauritius, with people who are resident outside of Mauritius.
An AC has its control & management outside of Mauritius, and conducts business principally outside of Mauritius - this type of company is considered foreign for tax purposes.
The price is different for both.

Second, there are also different type of activity, and if your activity require a special licence (typically apply for GBCs). E.g. Investment Adviser, Corporate Finance, Insurance/Insurance Broker, Virtual Assets, etc.
Depending on which licence, the price will differ.

Third, there is the size of the CSP you are in touch with (in terms of number of employees & clients).
If it is a big one serving thousands of clients, the price would tend to be on the higher side.
If you choose a boutique one, the price would be lower.

And finally, there is the buyer, who would need to evaluate whether the price paid is worth the benefit.
Price is subjective, especially depending on the type of client (e.g. multinational vs entrepreneur).

Starting price would be around 5k, and could reach above 15k for special licences.

To note that there are close to 20,000 offshore companies and funds in Mauritius (this is according to the Financial Services Commission of Mauritius (regulatory body for the setting up of offshore companies in Mauritius).