Quick answer
Most founders in Mauritius use a domestic company under the Companies Act 2001. It needs one shareholder and one resident director, has no incorporation fee and pays 15% corporate tax. Freelancers can trade in their own name at 0% to 20%, and 35% above Rs 12 million. Global Business Companies need two resident directors and an FSC licence.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my business setup →You want to run your business from, or through, Mauritius and need the right legal vehicle. This guide compares the main structures on liability, setup, annual cost, tax and remote management. It also flags the residence traps that catch foreign founders.
Mauritius legal forms of business in 2026: the key figures
| Item | 2026 rule | Legal basis |
|---|---|---|
| Domestic company | At least 1 shareholder and 1 resident director; no incorporation fee | Companies Act 2001; CBRD |
| Global Business Company | At least 2 resident directors; administered by a Management Company | Companies Act 2001; Financial Services Act 2007 |
| Authorised Company | Managed and controlled outside Mauritius; not tax resident | Companies Act 2001; CBRD |
| Corporate income tax | 15%; 3% for companies exporting goods | Income Tax Act 1995; MRA |
| Partial exemption | 80% or 95% on listed income, if substance conditions are met | Income Tax Act 1995; MRA |
| Fair Share Contribution (companies) | 5% if chargeable income exceeds Rs 24 million (2% for 3%-rate companies), until 30 June 2028; GBL holders excluded | Budget 2025-26 measures; Budget 2026-27 Annex, measure 1.5 |
| Sole trader income tax (2026-27) | 0% / 10% / 20% / 35% (bands at Rs 500,000, Rs 1 million and Rs 12 million) | First Schedule Part I, Income Tax Act 1995, as replaced by Finance Act 2026 |
| VAT registration | Compulsory above Rs 3 million of taxable supplies a year | VAT Act; MRA |
What changed for 2026
- Company Fair Share Contribution test simplified. The Budget 2026-27 Annex (measure 1.5) drops the turnover and VAT-registration criteria. Only chargeable income above Rs 24 million counts.
- 35% top band for sole traders. The Finance Act 2026 taxes an individual's chargeable income above Rs 12 million at 35%. The 15% individual Fair Share Contribution now covers income year 2025-26 only.
- New withholding on two kinds of payment. The same Act adds tax deduction at source of 1% on ICT payments above Rs 300,000 and 5% on social media advertising and marketing services.
- VAT threshold now Rs 3 million. It fell from Rs 6 million on 1 October 2025 (MRA Budget 2025-26 Highlights).
Is this guide for you?
Read on if you…
- are a freelancer, consultant or founder planning to operate from Mauritius
- want to compare a sole trade, a domestic company, a GBC and an Authorised Company
- plan to run the structure partly or fully from abroad
Probably not your case if you…
- only need a family wealth vehicle (foundations and trusts follow other rules)
- run a bank, insurer or other licensed financial business
Which legal forms exist in Mauritius?
The Economic Development Board lists companies limited by shares or guarantee, limited life companies, foreign companies, foundations and trusts. It also lists Global Business Companies and businesses run by an individual. Here are the ones that matter for a location-independent professional.
- Business by an individual (sole trader). You trade in your own name with a Business Registration Number (BRN). No limited liability.
- Domestic company. A company incorporated under the Companies Act 2001 that carries on its main business in Mauritius.
- Global Business Company (GBC). A resident company licensed by the Financial Services Commission (FSC) for business mainly outside Mauritius.
- Authorised Company (AC). A company whose business and control sit outside Mauritius. It is not tax resident there.
- Limited Liability Partnership (LLP). Created under the Limited Liability Partnerships Act 2016.
- Société. A partnership. A société commerciale falls under the Code de Commerce; a société civile, mainly for holding assets, under the Code Civil Mauricien.
Foreigners who work in their business in Mauritius also need an occupation permit. See our practical guide to obtaining tax residency in Mauritius.
How do the structures compare?
Setup and annual figures come from the CBRD incorporation page and the CBRD fee schedule.
| Structure | Liability | Setup fee | 2026 annual registration fee | Tax on profit | Run remotely by a non-resident? |
|---|---|---|---|---|---|
| Sole trader | Unlimited | BRN registration | – | 0% / 10% / 20% / 35% | No – the trade is yours, taxed where you live |
| Domestic company | Limited to capital | None | Rs 500 if turnover up to Rs 30 million | 15% | Partly – needs 1 resident director |
| GBC | Limited | Rs 3,200 | Rs 18,000 (private company holding a GBL) | 15%, with 80%/95% partial exemption on listed income | No – core activities must be in Mauritius |
| Authorised Company | Limited | USD 100 | USD 130 | Not tax resident in Mauritius | Yes – that is its design |
| LLP | Limited for partners | Via CBRD | Rs 5,000 | Not covered in this guide | Partly |
| Société commerciale | Associates' liability per statuts | Rs 9,000 | Rs 9,000 | Not covered in this guide | Rarely |
Larger private companies pay more each year: Rs 2,500 for turnover over Rs 30 million and under Rs 100 million, and Rs 18,000 above.
There is no minimum share capital stated for a domestic company. One shareholder is enough. A one-person company that lasts six months must nominate a secretary.
What does each option mean for your tax?
Sole trader
Your profit joins your personal income. For 2026-27 you pay 0% on the first Rs 500,000 and 10% on the next Rs 500,000. Then 20% applies up to Rs 12 million and 35% above. The MRA Starting Business Guide also sets self-employed CSG.
CSG is Rs 150 a month up to Rs 10,000 of monthly net income. It is 1.5% of 90% of net income up to Rs 50,000, and 3% of 90% above that.
Here's the catch with the 1% presumptive tax. The MRA overview of taxes reserves it for small enterprises in agriculture, manufacturing, food wholesale and retail. Gross income must stay within Rs 10 million, other income within Rs 400,000, and you lose all reliefs. Consultants and remote freelancers do not qualify.
Domestic company
The company pays the standard 15% corporate tax, or 3% for exporters of goods. Dividends from a company resident in Mauritius are exempt for you as an individual. The 15% individual Fair Share Contribution, which counted these dividends, applied only to 2025-26. From 2026-27, the 35% band hits chargeable income only, so exempt dividends stay outside it.
The company files its return within six months from the end of the month its accounting year ends. Quarterly advance payments apply if prior-year gross income exceeded Rs 10 million and the company had chargeable income. Losses carry forward for five income years, provided the shareholding does not change by more than 50%.
Global Business Company
A GBC pays 15%, but can claim an 80% or 95% partial exemption on listed income. The MRA list includes foreign dividends, some interest and profits of a foreign permanent establishment. FSC-licensed fund managers, asset managers and investment advisers also qualify.
Here's the catch. The exemption needs substance. The company must carry out its core income-generating activities in Mauritius. It must employ enough qualified people and spend in proportion to its activity. GBL holders are outside the company Fair Share Contribution.
Authorised Company
The CBRD says an AC's business and control are outside Mauritius, so it is not tax resident there. It needs one director, not necessarily resident, and a registered agent at all times. Tax treaties protect residents. An AC is not one, so do not build a treaty plan on it.
Can you run a Mauritian company from abroad?
Be careful. A company's tax residence in most countries follows its place of effective management: where the key decisions are really taken. Live in France and decide everything from Paris, and France may treat your Mauritian company as French resident.
The same logic creates a permanent establishment (PE) risk. A PE is a taxable presence, such as a home office abroad where you sign contracts. Profits linked to that PE are taxed in that country, whatever the company's registered address.
In practice, a Mauritian company works cleanly when decisions are really made in Mauritius. That usually means you live there. For a structure review, see Heavnn business setup.
How do you set up a company in Mauritius?
- Pick the structure that fits your activity and where you will live.
- Check the name online. The EDB says prior reservation is not mandatory. The Budget 2026-27 Annex (measure 10(c)) extends a reservation from 2 to 6 months.
- Prepare the documents. For a domestic company: Form F1, consent forms, a resident director's proof of address and passport copies for non-citizens.
- Incorporate online with the CBRD. The EDB says registration is "completed within half a day".
- Apply for the FSC licence through a Management Company if you want a GBC.
- Open a bank account and register for VAT if your supplies will exceed Rs 3 million a year.
- Keep records for five years and pay the CBRD annual registration fee on time: Rs 500 for a small private company, Rs 750 if late.
Then track your costs. Our guide to business expenses in Mauritius explains what is deductible.
Example – Julien, 45, French consultant now resident in Mauritius
Julien expects Rs 7,500,000 of profit in 2026-27. As a sole trader he pays Rs 0 + Rs 50,000 + 20% × Rs 6,500,000 = Rs 1,350,000, an effective 18%. Through a domestic company he pays 15%: Rs 1,125,000. He then takes Rs 6,375,000 as dividends, exempt in his hands. Saving: Rs 225,000 a year, before self-employed CSG and company running costs.
Julien saved Rs 225,000 by picking the right vehicle. Your numbers may differ.
Get my business setup checked: structure, residence of the company and PE risk.
Check my business setup →Common mistakes (and what they cost)
- Running a Mauritian company from your old country → it may become tax resident there, and profits are taxed at that country's rate.
- Claiming the GBC partial exemption without substance → the exemption falls away and 15% applies instead of 3% or 0.75%.
- Relying on an Authorised Company for treaty relief → no treaty access, because it is not tax resident in Mauritius.
- Ignoring the Rs 3 million VAT threshold → you owe VAT on past supplies you never charged to clients.
- Paying the annual registration fee late → a small private company pays Rs 750 instead of Rs 500.
Frequently asked questions
What is the most common business structure in Mauritius?
The domestic company under the Companies Act 2001. It needs one shareholder and one resident director, and the CBRD charges no incorporation fee. Profits are taxed at 15%, and dividends are exempt for resident individuals. Freelancers often start as sole traders and incorporate once profit grows.
Can a foreigner own 100% of a Mauritian company?
Yes. A domestic company needs at least one shareholder, and the CBRD documents list passport copies for non-citizens. Where no local resident is involved, the CBRD asks for an investor's permit from the EDB. To work in the business in Mauritius, you also need an occupation permit.
What is the difference between a GBC and an Authorised Company?
A GBC is resident in Mauritius and needs two resident directors and a Management Company. With substance, it can claim the 80% or 95% partial exemption. An Authorised Company is managed and controlled outside Mauritius and is not tax resident there. It needs one director and a registered agent.
How long does it take to register a company in Mauritius?
The EDB says CBRD online incorporation is completed within half a day once documents are ready. You then receive an electronic certificate of incorporation and business registration card. A GBC takes longer because the FSC licence goes through a Management Company. Opening the bank account often takes the most time.
Is there a minimum share capital in Mauritius?
The CBRD incorporation requirements for a domestic company list no minimum share capital, only at least one shareholder. In practice, banks and the immigration authorities may expect real funding. That applies especially if your occupation permit depends on an investment amount.
Do I need a local director for a Mauritian company?
Yes for a domestic company: at least one resident director. A GBC needs at least two resident directors. Only the Authorised Company can work with a single non-resident director. Nominee directors who never decide anything create substance and tax residence problems.
Related guides
- Business expenses in Mauritius
- Mauritius tax landscape overview
- How to obtain tax residency in Mauritius
- Tax incentives for expats and digital nomads in Mauritius
- Specific taxes in Mauritius, including VAT
- Legal forms of business in Morocco
- Legal forms of business in Ethiopia
- All country tax guides
Sources
- Incorporation of a Company – Corporate and Business Registration Department
- Fees Payable to the Registrar – Corporate and Business Registration Department
- Corporate Tax – Mauritius Revenue Authority
- Starting Business Guide – Mauritius Revenue Authority
- Finance Act 2026 – Mauritius Revenue Authority
- Budget 2026-2027 Annex – Ministry of Finance, Mauritius
- Budget 2025-26 Highlights – Mauritius Revenue Authority
- Getting Started – Economic Development Board Mauritius
This guide is general information, not personalised tax advice. See how we research and review.
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