Mauritius Info
Joined: 23 Feb 2007
Posts: 13
Home Country: mauritius
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 Posted: Tue Mar 13, 2007 5:04 am Post subject: DOING BUSINESS IN MAURITIUS / MAURITIUS BUSINESS GUIDE |
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DOING BUSINESS IN MAURITIUS
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Private Limited Liabilited Company
Minimum Capital Requirement: 0
City: Port Luis
Registration Requirements:
Procedure 1. Search for a company name and reserve the proposed name
Time to complete: 2 days
Cost to complete: MUR 100
Comment: For any certificate issued by the Registrar or for certifying any copy or extract of any document in the custody of the Registrar, a processing fee of Rps 100 is payable.
An application for reservation of the name of a company shall be sent or delivered to the Registrar, and shall be in a form approved by the Registrar.
The Registrar shall inform the applicant by notice in writing :
(a) whether or not the Registrar has reserved the name; and
(b) if the name has been reserved, that unless the reservation is sooner revoked by the Registrar, the name is available for incorporation of a company with that name or registration of a change of name, whichever be the case, for 2 months after the date stated in the notice.
Procedure 2. Registration with the Registrar of Companies (Registre des Sociétés
Time to complete: 2 days
Cost to complete: MUR 6000
Comment: The new company legislation of 2001 makes it possible for any individual to form a company by themselves and there is no need for a notary.
Procedure 3. Apply for licensing from local government
Time to complete: 30-60 days
Cost to complete: USD 150-200
Comment: The following documents are required:
1. National Identity Card of applicant.
2. Certificate of Incorporation, National Identity Card of the representative and Company's License for current year in case of company.
3. Land Development Permit in respect of the building / premises within which the trade will be carried out together with clearance from the Planning Department.
4. Approved site and layout plans.
5. Title deed and layout plan in respect of the proposed trade premises.
6. Duly registered agreement from the owner if the premise is being rented. (In case of death of owner, affidavit and legal documents from heirs should be produced.)
7. Copy of consent from neighbours as per Development Permit.
8. Certificate / Permits from relevant authorities in case electric motors will be used.
9. Evidence of cessation of business in case premises was previously licensed.
10. Horsepower of vehicles to be used for trade.
11. PER or EIA License where applicable.
12. Affidavit and legal documents from heirs in case of deceased owner.
The approval process is as follows: All applicants calling on the License Section are informed either by Health Inspectors or Senior Health Inspector about the documents, information and particulars they are required with guidelines to submit with regard to the classified trade applied for and they are given application forms to be properly filled, and duly signed. All applications duly filled and signed by the applicants with attached documents are verified by the Health Inspectors or Senior Health Inspectors to ascertain that the applications are complete. After verification, an effective date (on which all relevant documents are submitted) is inserted on the application form and a serial number allotted. All particulars, including statutory deadline (42 days from the effective date), are recorded in the New Application Register for ease of reference and proper follow up. The applicant is issued with an acknowledgement receipt. All new applications are processed according to the provisions of the Local Government Act 2003. A list of new applications together with the application forms and relevant documents are submitted to the Permits and Licenses Committee for consideration. Then, the applications if favourably considered by the License Permits Committee are referred to appropriate competent authority for their views within two weeks from the effective date. In case, appropriate clearances are not obtained within the prescribed period, i.e., within four weeks as from the date the application has been referred to any of the authority concerned, the application is submitted anew to the Permits and Licenses Committee for a final decision. In case any competent authority has not recommended new application after the latter has been sent to them, the applicant is notified accordingly not later than five days by registered post. An officer not below the rank of Senior Health Inspector vets all applications, which are approved for issue of Municipal Licenses by the Permits and Licenses Committee. If found correct, the applicants are referred to the Revenue Section with photocopies of their application forms to be issued with an Account Number for payment purposes.
A New Municipal License is issued once payment is effected and receipt produced.
Procedure 4. Register the company with the tax office.
Time to complete: 7 days
Cost to complete: no charge
Procedure 5*. Register with the Social Security Office.
Time to complete: 7 days (simultaneous with procedure 4)
Cost to complete: no charge
Comment: File incorporation documents and contracts of employment
Procedure 6. Make a company seal.
Time to complete: 1 day
Cost to complete: USD 25
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).
FORMS OF BUSINESS ORGANISATION
The principal forms of business enterprises in Mauritius are:
· Limited Companies
· "Association" ("Société" in French)
· Branch of a foreign company
The usual choice for foreign investors is a limited company or a branch, although the former is preferred.
TAXATION
Corporate tax
Main rate: 22.5%
Resident companies are subject to tax on their worldwide income; non-resident companies are taxed only on income sourced in Mauritius. A company is considered resident if it is incorporated in Mauritius or if its central management and control is exercised in Mauritius. The general corporate tax rate is 22.5%, but offshore companies (which are known as Category 1 global business licence companies) pay tax at an effective rate of 3%. Companies that have been certified under the various incentive schemes or that are engaged in specified activities pay tax at 15%. An alternative minimum tax applies where the normal tax payable by a company in any year is less than 5% of its accounting profit. In this case, tax payable is the lower of 7.5% of the accounting profit or 10% of dividends declared for that period.
Individual tax
Progressive rates to 22.5%
Resident individuals are taxed on their worldwide income; non-residents are subject to tax only on income sourced in Mauritius. A resident is a person whose domicile is in Mauritius, not including a person present in Mauritius for a temporary purpose or present for less than 183 days in a tax year or less than 270 days in three tax years. Tax is chargeable at progressive rates up to 22.5%. Domestic dividends received by resident individuals are exempt; foreign dividends received by resident individuals are included in taxable income, with a credit for foreign tax paid.
Capital gains
Chargeable only on some sales of land
Capital gains tax is levied only in the case of the parcelling of land for resale, at rates between 20% and 30%. The tax chargeable will be the higher of the capital gains tax or the land transfer tax. Where the land has been held for more than 15 years, no capital gains tax is chargeable. No capital gains tax is imposed on the sale of other types of assets.
Indirect tax
VAT standard rate: 15%
The standard value-added tax (VAT) rate is 15%, with a zero rate applying to exports, books, fertilisers, sugar and supplies of electricity and water. Exemptions include basic foodstuffs, medical supplies and services, education, rent of accommodation, ships, the sale or transfer of residential property, and certain financial services. A reverse charge applies in respect of services received from abroad.
Registration for VAT purposes is compulsory for businesses with annual taxable turnover above MUR 2m, and voluntary registration is available below this limit.
Tax administration and compliance
Tax year: Corporations: accounting year; Individuals: year to June 30th
Companies must submit a tax return for each tax year by September 30th or by January 31st if they have a June 30th year-end. Tax is payable at the time the return is submitted. Employment income of individuals, bank interest, rent, royalties and payments to contractors and other service providers in the construction industry are subject to deduction of tax at source.
Individuals must submit a tax return by September 30th following the end of the tax year. Under the current payment system, individuals with business, rental, royalty or premium income exceeding certain amounts must submit relevant information and pay tax at quarterly intervals.
Additional tax information
Withholding taxes: Dividends 0%; Interest and Royalties paid to non-residents are subject to withholding tax at the normal corporate or individual income tax rates.
Tax treaties: Mauritius has concluded more than 30 double-tax treaties.
Dividends: Domestic dividends are tax-exempt for residents and non-residents; foreign dividends are taxable as income.
Revenue protection: There is no transfer-pricing or anti-tax-haven (CFC) legislation.
Groups: There is no provision for group taxation.
Incentives: Offshore companies; regional headquarters; foreign investment (permanent resident scheme); construction; manufacturing.
Other taxes: Betting tax, Business licence fee, Customs duties, Entertainment tax, Excise duties, Immovable property tax, Land transfer tax, Registration duty, Stamp duty, Work permit fee. |
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