MAURITIUS Law and Practice Contributed by: Fayaz Hajee Abdoula, Yashna Munbauhal and Yojna Beesoon, BLC Robert & Associates
BLC Robert & Associates 26 Bank Street Cybercity Ebene 72201 Mauritius
Tel: +230 403 2400 Fax: +230 403 2401 Email: chambers@blc.mu Web: www.blc.mu
1. Corporate Structures, Residence and Tax Treatment 1.1 Corporate Forms and Their Tax Treatment Companies Companies are the most common corporate form. Companies can be either public or private, and they may be limited by shares, limited by guarantee or lim - ited by shares and guarantee. If such entities are held or ultimately controlled by non-residents and propose to conduct business prin - cipally outside Mauritius, they must apply for a global business licence from the Financial Services Commis - sion in Mauritius. The main characteristics of a corporation holding a global business licence are that it must at all times: • carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act 1995; • be managed and controlled from Mauritius; and • be administered by a management company licensed by the Financial Services Commission in Mauritius. There is no legal definition of “management and con - trol”, but in determining whether a company holding a global business licence is managed and controlled in Mauritius, the Financial Services Commission in Mauritius will, amongst other things, have regard to whether the company:
• has at all times at least two directors, resident in Mauritius, of sufficient calibre to exercise inde - pendence of mind and judgement; • maintains, at all times, its principal bank account in Mauritius; • keeps and maintains, at all times, its accounting records at its registered office in Mauritius; • prepares its statutory financial statements and causes such financial statements to be audited in Mauritius; and • provides for meetings of directors to include at least two directors from Mauritius. A company holding a global business licence that is centrally managed and controlled in Mauritius is tax resident in Mauritius and, as such, may take advan - tage of double taxation avoidance agreements in place between Mauritius and other countries. If the company wishes to be certified as tax resident in Mau - ritius in respect of an income year, it may apply to the Mauritius Revenue Authority (MRA) for a tax residence certificate. However, entities that propose to conduct business principally outside Mauritius and have their central management and control outside of Mauritius are required to apply for an authorisation from the Finan - cial Services Commission in Mauritius. Entities hold - ing an authorisation are not tax resident in Mauritius. Limited Partnerships A limited partnership holding a global business licence can opt under the Income Tax Act 1995 to be liable to tax, but in the absence of any such election, will be
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