Offshore company in Mauritius: a regulated and compliant framework
Contrary to the image sometimes conveyed, setting up an offshore company in Mauritius takes place within a rigorous legal and regulatory framework. Mauritius is recognised as a well-regulated jurisdiction, compliant with international OECD, FATF and European Union standards. The country offers a transparent environment in which offshore structures are supervised by the Financial Services Commission (FSC) under the Financial Services Act 2007.
The main offshore vehicle in Mauritius is the Authorised Company (AC), a structure dedicated to commercial activities conducted exclusively outside Mauritian territory. It benefits from full exemption from tax on foreign-source income while complying with international compliance obligations.
Mauritian offshore: compliance and efficiency
Mauritius offers a rare balance between tax exemption (0% on offshore income) and a high level of regulatory compliance (OECD, CRS, FATF). This is what sets Mauritius apart from opaque jurisdictions and makes it a credible choice for investors concerned about their reputation.
Benefits of a Mauritian offshore company
Tax exemption
| Tax | Applicable rate |
|---|---|
| Tax on offshore profits | 0% |
| Capital gains tax | 0% |
| Withholding tax — dividends | 0% |
| Withholding tax — interest | 0% |
| Inheritance tax | 0% |
| Exchange controls | No restrictions |
A trusted jurisdiction
- OECD compliance: member of the Global Forum on Transparency and Exchange of Information for Tax Purposes, with a "largely compliant" rating
- FATF compliance: removed from the grey list in 2021, recognised for strengthening its AML/CFT framework
- CRS compliant: automatic exchange of tax information with more than 100 partner jurisdictions
- No blacklist: Mauritius does not appear on either the EU blacklist or the FATF blacklist
- FSC regulation: all offshore companies are supervised by the financial regulator and subject to reporting obligations
Competitive costs
With an annual budget of USD 1,500 to 3,000, the Authorised Company is one of the most economical offshore structures among well-regulated jurisdictions.
| Jurisdiction | Indicative annual cost (USD) | International compliance |
|---|---|---|
| Mauritius (AC) | 1,500 – 3,000 | High (OECD, CRS, FATF) |
| Singapore | 3,000 – 8,000 | Very high |
| Hong Kong | 2,500 – 6,000 | Very high |
| BVI | 1,500 – 3,000 | Moderate |
| Seychelles | 1,000 – 2,000 | Moderate |
| Dubai (RAK) | 3,000 – 8,000 | High |
Mauritius stands out for its excellent compliance-to-cost ratio, combining moderate costs with a high level of regulation. Unlike the BVI or Seychelles, Mauritius offers a strong local banking system and potential access to tax treaties (via the GBC). For an in-depth analysis, see our comparison of offshore jurisdictions.
Activities suited to the offshore company
International trading
Buying and selling goods or commodities between third countries. Full exemption on trading margins. Freeport available for transit operations.
International services and consulting
Consultants, IT providers, trainers invoicing clients outside Mauritius. Centralisation of income without taxation.
E-commerce and digital platforms
Online sales platforms, SaaS applications, digital services targeting international markets. Access to payment gateways (Stripe, PayPal).
Asset holding
Shareholdings in foreign companies, investment portfolios, intellectual property, intangible assets.
Wealth management
Family wealth structures to centralise and manage international assets in a tax-efficient manner.
Freelancers and independent professionals
Independent professionals invoicing international clients, with a lightweight structure and minimal maintenance cost.
What the offshore company CANNOT do
The Authorised Company is subject to strict restrictions, set out in the Financial Services Act 2007, which must be observed to avoid FSC sanctions:
- No activities in Mauritius: all business activities must be conducted outside Mauritian territory
- No transactions with Mauritian residents: the AC cannot invoice or purchase from persons or companies resident in Mauritius
- No real estate in Mauritius: the AC cannot acquire or hold real estate on Mauritian soil
- No access to tax treaties: the AC cannot obtain a Tax Residence Certificate (TRC) or benefit from treaty rates
- No regulated financial services without a specific licence: fund management, insurance, brokerage require additional authorisations
Need access to tax treaties? If you need to benefit from the reduced withholding tax rates provided by the DTAs, the Global Business Company (GBC) is the appropriate structure. See our GBC vs AC comparison to help you choose.
Formation process
-
Choice of management company
Selection of a registered agent licensed by the FSC to manage the incorporation and administration of your offshore structure.
-
KYC due diligence
Provision of identity documents (certified passports, proof of address, bank references) and identification of ultimate beneficial owners (UBOs).
-
Incorporation and licence
Filing of constitutive documents with the Registrar of Companies and obtaining the Authorised Company Licence from the FSC.
-
Account opening and operationalisation
Opening a multi-currency bank account, setting up the registered office, and starting international activities.
| Stage | Timeline |
|---|---|
| Due diligence and document collection | 3 – 7 days |
| Incorporation and FSC licence | 5 – 10 working days |
| Bank account opening | 2 – 6 weeks |
| Total (excluding account) | 1 – 2 weeks |
Compliance and transparency
The Mauritian offshore company is subject to strict compliance obligations, ensuring transparency and combating abuse. These obligations position Mauritius as a jurisdiction where offshore business is regulated and transparent.
- AML/CFT: compliance with anti-money-laundering and counter-terrorist-financing obligations, in accordance with FIAMLA 2002 and FATF recommendations
- Common Reporting Standard (CRS): automatic exchange of tax information with more than 100 partner jurisdictions
- Beneficial ownership register: identification and declaration of Ultimate Beneficial Owners (UBOs) to the FSC
- FATCA: FATCA and CRS compliance with the US law on the reporting of foreign accounts (intergovernmental agreement)
- Annual Return: annual filing with the Registrar of Companies
Mauritius offshore vs other jurisdictions
| Criterion | Mauritius | BVI | Seychelles | Dubai |
|---|---|---|---|---|
| Offshore tax | 0% | 0% | 0% | 0-9% |
| OECD compliance | High | Medium | Medium | High |
| EU blacklist | No | No | No | No |
| CRS | Yes | Yes | Yes | Yes |
| Local banks | Strong (MCB, SBM, AfrAsia) | Limited | Limited | Strong |
| DTAs (via GBC) | 40+ | Very few | Very few | 100+ |
| Annual cost | $1,500-3,000 | $1,500-3,000 | $1,000-2,000 | $3,000-8,000 |
| Formation speed | 1-2 weeks | 1-3 days | 1-3 days | 2-4 weeks |
| DTA upgrade possible | Yes (conversion to GBC) | No | No | Possible |
Mauritius's unique advantage: if your needs evolve, you can convert your AC into a GBC (4-8 weeks) to access the 45 double taxation treaties in force (MRA, 2026). No other offshore jurisdiction offers this flexibility to "upgrade" to a resident structure with access to DTAs.
Projected budget
| Item | Amount (USD) |
|---|---|
| Incorporation fees (one-off) | 800 – 1,500 |
| Annual FSC licence | 250 – 500 |
| Annual registered agent | 800 – 1,500 |
| Accounting | 500 – 1,500 |
| Registered office | 300 – 800 |
| Total annual | 1,500 – 3,000+ |
For a more detailed budget, see our complete guide to formation costs.
The information presented is provided for informational purposes only and does not constitute legal or tax advice. Setting up an offshore company must take into account your tax obligations in your country of residence (CFC rules, reporting obligations). Consult a qualified professional before making any decision.