Open a Subsidiary in Mauritius

Our Mauritius company formation advisors explain how you can expand your operations by registering a subsidiary. We provide tailored support during and after incorporation.

How to register a subsidiary in Mauritius

Foreign companies can operate under various legal structures in Mauritius, and one of them is the subsidiary. This is an independent entity in which the parent company is the sole shareholder.

The requirements to open a Mauritius subsidiary are quite simple, as they are the same as for any local company. They imply:

• drafting the Memorandum and Articles of Association;
• securing a local address;
• appointing at least one resident director;
• obtaining consent from the director and secretary (if one is appointed) for positions they have a need to appoint for;
• drawing up the parent company’s resolution to open the subsidiary.

Compared to the branch, the subsidiary can reserve any trading name, as long as it is not taken.

Following the gathering of these documents, the parent company, through a local agent, must:

• file them with the Business Registry;
• open a Mauritius bank account;
• register for taxation;
• register for social security and enroll employees for Social Security with the National Pensions Fund.

Special business licenses may also be required, depending on the activities to be carried out.

The main features of a Mauritius subsidiary

Here are the main characteristics if you want to open a subsidiary in Mauritius:

• it is fully independent and can complete any type of activity in Mauritius;
• it is liable for its own debts and obligations;
• it can make decisions related to its operations, capital alterations, etc.;
• it can operate in most sectors in Mauritius;
• it can hire both local and foreign employees;
• from a taxation point of view, it is treated as any other domestic business.

Taxwise, the legal form chosen for the subsidiary can influence the levies paid by it. Our accountants in Mauritius can better advise on this matter.

Legal forms a subsidiary company can take in Mauritius

Considering it is an important business, the subsidiary offers an important advantage to the parent company: the possibility of registering any of the types of local legal entities. As such, a foreign enterprise can choose between:

• Limited liability companies;
• Global Business Companies.

Each of them comes with various benefits, among which are also tax exemptions.

Here are some of the features of the business forms foreign companies can use to set up subsidiaries in Mauritius:

• the private limited liability company, which can have at least one shareholder; however, the parent company can partner with up 50 more participants;
• the Category 1 Global Business Company (GBC1), which is suitable for foreign companies located in countries that are part of the list of 40 double tax treaties of Mauritius.

The GBC 1 company can be used for activities like trading and is quite suitable for a subsidiary in Mauritius.

There are also other business forms that can be used to create a subsidiary, and our company formation specialists in Mauritius can help you choose one, if you want to.

Taxation of subsidiaries in Mauritius

Here are the main taxes to consider if you establish a subsidiary in Mauritius:

• the corporate tax which is levied at a flat rate of 15%;
• if engaged in export activities, the corporate tax is 3% for resident companies and subsidiaries qualify for it;
• a social tax must also be paid by these companies and it is imposed as a 2% of the balance sheet profit;
• the value added tax, which is applied at a 15% rate.

For more information and support in opening a subsidiary, feel free to contact our company registration consultants in Mauritius.