- August 19, 2020
- Posted by: Editor
- Category: Law
Foreign citizens who want to do business in Mauritius have several types of entities they can choose from. Even if the offshore company is one of the most employed such structures, there are also other legal forms that can be used for the creation of local businesses and one of them is the limited liability company (LLC).
If you are interested in opening an LLC in Mauritius and need assistance, our local specialists are at your services for guidance. You can rely on us for complete company formation services in Mauritius.
Characteristics of the Mauritius LLC
The limited liability company falls under the regulations of the Company Law in Mauritius and can be employed for the creation of a local business by both foreign investors and companies. Upon business registration in Mauritius of an LLC, here are the main requirements to pay attention to:
- it requires at least one shareholder who can be a natural person or corporation;
- it requires at least one resident director and more foreign directors, if desired;
- its minimum share capital is set 1 USD, however, the shareholders can decide on this aspect;
- it can be created for a duration of 50 years, with the possibility of extension.
In some cases, the LLC can take the form of a Global Business Company without the need to apply for a financial license with the Mauritius Financial Services Commission.
Just like in other jurisdictions, Mauritius LLCs are divided into private and public companies with the mention that a private entity is limited to 25 shareholders.
For more information on the features of the LLC, you can address our Mauritius company formation advisors.
LLC registration steps in Mauritius
Opening an LLC in Mauritius will follow the same steps as when incorporating any other business form and implies:
- reserving a trading name;
- having a local legal address;
- drafting Articles of Association;
- opening a corporate bank account;
- filing the documents with the Companies Register;
- obtaining a tax identification number;
- applying for specific business licenses and/or permits.
With respect to the requirements of having a resident director, you can obtain more information on this aspect from our company registration representatives in Mauritius who can provide specific services in this sense. Also, you can rely on us if you want to set up an offshore bank account in this country.
Document preparation upon opening an LLC in Mauritius
Foreign investors who want to open LLCs in Mauritius must prepare various documents and file them with the Companies Registrar. Depending on the status of the shareholder, valid identification papers in the case of natural persons or incorporation documents in the case of corporate shareholders will be required.
The following documents must also be prepared:
- the application form which must contain information about the future company;
- the signed consent of each director and secretary (where one will be appointed);
- the signed consent of each shareholder with respect to share ownership.
In case the company has one director who is a foreign citizen, he or she must obtain a Mauritius residence permit. You can rely on us if you want to set up a company in Mauritius and need information on the documents you need to prepare. We can also assist with their drafting.
The main uses of an LLC in Mauritius
Given the fact that the LLC is also known as a proprietary company, it is usually employed by foreign companies seeking to open subsidiary businesses in Mauritius and by overseas entrepreneurs interested in having companies operating at a local level. Considering tourism is one of the most important economic sectors in the country, it should be noted that foreign investors cannot fully own companies in this sector, their participation being limited to 49% of the shareholders in hotels with less than 100 rooms.
Another aspect to be considered upon the creation of an LLC is that it will be taxed at a rate of 15%.
If you need more information on the best uses of an LLC as well as guidance in registering one, do not hesitate to use the services provided by our agents in Mauritius.
Please watch our video on how to open an LLC in Mauritius:
LLC registration timeframe in Mauritius
Here is how long it takes to register a company under the form an LLC in Mauritius:
- up to 5 days for preparing the incorporation documents;
- up to 4 weeks for the creation of the bank account;
- up to 2 weeks for the incorporation to be completed;
- the total registration process can take up to 8 weeks.
For assistance in setting up an LLC in Mauritius, please contact our company formation consultants. You can also rely on us if you want to open another type of company here.