Incorporation, operation and taxation of business companies in Mauritius is regulated by the provisions of the Companies Act 2001, Financial Services Development Act 2001 and Mauritius Offshore Business Activities Act 1992 (MOBAA). Companies Act 2001 cancelled the previously existing laws “the Companies Act 1984» and International Companies Act 1994, whereby firstly the incorporation, respectively, of offshore and international companies has taken place. Today, Mauritian law allows the incorporation of companies of various organizational and legal forms among which it is possible to identify:

Private limited company – a closed company with limited liability;

Public limited company – a public company with limited liability;

Global Business Company – offshore company.

Speaking about practical interest, the Global Business Company is the most popular for the establishment in Mauritius. There are tax-exempt Global Business Company type 2 (GBC 2) and taxable Global Business Company type 1 (GBC 1). A company incorporated in Mauritius, is entitled to receive tax-exempt status of the Company (GBC 2) only if exclusively non-residents of Mauritius own and operate by the Company, as well as, provided that such GBC 2 company does not carry out any activity in Mauritius. In order to Global Business Company may use in Mauritius, the benefits of agreements for avoidance of double taxation, it must be incorporated as a tax resident (GBC 1) and receive the Certificate of Tax Residency, for which the local director (minimum 2) and a secretary must be appointed in the company. Moreover, all shareholders are entitled to be non-residents of Mauritius. Mauritius has concluded agreements for avoidance of double taxation with such countries as: Belgium, Botswana, Britain, France, Germany, Zimbabwe, India, Indonesia, Italy, China, Kuwait, Lesotho, Libya, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Oman , Pakistan, Russia, Romania, Swaziland, Seychelles, Singapore, Thailand, France, Spain, Sweden, South Africa. For Global Business companies, a territorial principle of taxation operates in Mauritius, whereby only the revenue received in Mauritius, is liable to taxation. For the remaining ordinary resident companies, whose business, as well as management and control situates in Mauritius, the principle of levying a tax from their worldwide income acts. Global Business companies not doing business in Mauritius are not subject to tax in Mauritius, but pay an annual fee amounting to $ 400.