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Opening a new subsidiary in Mauritius is a milestone worth celebrating. You’ll get to expand to a new country, form important business relationships, and welcome skilled talent to your teams. However, before you set up a Mauritius subsidiary, here are a few guidelines to keep in mind.

How to set up a Mauritius subsidiary

The process to set up a Mauritius subsidiary depends on where you incorporate and what type of entity you choose. While companies have numerous options to choose from, the most popular structure is a limited liability company (LLC).

When you’re ready to set up your Mauritius subsidiary, you need to designate at least 1 shareholder at the time of incorporation. They can be of any nationality and live in any country. You will also need USD 1 of minimum share capital and a director who resides in Mauritius. If you don’t have a current company executive ready to take on the director role, you need to find someone who will.

Any entity which proposes to conduct business outside of Mauritius must apply for a license.

Mauritius subsidiary laws

It’s important to understand Mauritius’ subsidiary laws before you establish an Ltd. If you don’t have the time to learn these laws yourself, it may be a good idea to partner with a global growth expert who is an expert in the country’s regulations.

There are restrictions with regards to international ownership, especially if you are in the tourism, sugar, and telecom industries.

Incorporating as an Ltd means you’re subject to corporate tax. Companies also need to submit annual financial statements and meet all tax requirements.

Benefits of setting up a Mauritius subsidiary

The biggest benefit of incorporating an entity in Mauritius is that you can legally operate and conduct business in the country. Once your subsidiary is up and running, you can successfully hire employees, add them to payroll, and start growing your business. Ltds are also beneficial in the sense that the subsidiary and parent company can operate independently from one another. The parent company doesn’t have to worry about incurring liability arising from the operation of the subsidiary, while the subsidiary can create its own company culture.

Other important considerations

If you decide to set up a subsidiary in Mauritius, you should budget the appropriate time and money. Certain steps of the subsidiary setup process require a fee, so it’s critical to research those figures ahead of time and be prepared to pay for the process.

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