Forming a company in Mauritius offers several benefits. Here are some of the key advantages:

1. Strategic Location
2. Favourable Business Environment
3. Double Taxation Avoidance Treaties (DTAA)
4. Low Taxation
5. Investment Promotion and Protection
6. Financial Services Hub
7. Skilled Workforce
8. Political Stability
9. Infrastructure and Connectivity
10. Quality of Life

In Mauritius, there are several forms of legal entities that can be formed, each with its own distinct characteristics and advantages. The choice of entity depends on various factors such as the nature of the business, the number of owners, liability considerations, tax implications, and governance requirements. Here are some of the common legal entities in Mauritius:

1. Sole Proprietorship: This is the simplest form of business structure where an individual operates a business on their own. The owner has complete control over the business but also bears unlimited personal liability for its debts and obligations.
2. Partnership: A partnership is an association of two or more individuals or entities who agree to carry on a business together. The partners contribute capital, share profits and losses, and jointly manage the business. A partnership can be a general partnership, where all partners have unlimited liability, or a limited partnership, where there are general partners with unlimited liability and limited partners with liability limited to their capital contribution.
3. Limited Liability Company (LLC): An LLC is a separate legal entity with limited liability for its members. It combines elements of a partnership and a corporation, providing flexibility in terms of management and taxation. Members of an LLC are not personally liable for the company’s debts and obligations.
4. Private Limited Company (PLC): A PLC is a separate legal entity owned by shareholders. It offers limited liability to its shareholders and has its own legal identity. The management is typically carried out by directors appointed by the shareholders. A PLC can have a minimum of one shareholder and one director.
5. Public Limited Company (PLC): A PLC is similar to a private limited company but with the additional requirement of having a minimum number of shareholders and a higher capital requirement. PLCs are generally intended for larger-scale operations and can raise capital from the public through the issuance of shares.
6. Global Business Company (GBC): GBC is a popular legal entity in Mauritius used for international business activities. It offers tax advantages, access to double taxation treaties, and flexibility in terms of structuring investments and assets.
7. Trusts: Trusts are legal entities created by a settlor, who transfers assets to a trustee to hold and manage for the benefit of beneficiaries. Trusts are commonly used for estate planning, asset protection, and wealth management purposes.

To set up a business in Mauritius, you would generally follow these steps:

1. Determine the business structure: Choose the most suitable legal structure for your business, such as a private company, partnership, sole proprietorship, or branch office.
2. Business name reservation: Reserve your desired business name with the Registrar of Companies. This step ensures that no one else can use the same name.
3. Draft the company documents: Prepare the necessary company documents, including the memorandum and articles of association. These documents outline the company’s structure, activities, and rules.
4. Register the business: Submit the company documents, along with the required forms and fees, to the Registrar of Companies. Upon approval, you will receive a certificate of incorporation.
5. Tax registration: Register your business for taxation purposes with the Mauritius Revenue Authority (MRA). You will obtain a tax identification number (TIN) and be required to comply with the tax obligations.
6. Obtain necessary licenses and permits: Depending on your business activities, you may need specific licenses or permits from relevant authorities or regulatory bodies. Ensure compliance with all legal requirements.
7. Open a bank account: Choose a local bank and open a business bank account in the name of your company. This account will be used for financial transactions and operations.
8. Register for social security: Register your employees for the National Pension Fund (NPF) and the National Savings Fund (NSF) to comply with social security regulations.
9. Employ staff (if applicable): If your business requires employees, follow the necessary procedures for recruitment and ensure compliance with labor laws, including employment contracts and work permits.

• Register for Value Added Tax (VAT): If your business turnover exceeds the threshold set by the MRA, you may need to register for VAT and comply with VAT regulations.
• Obtain any additional permits or clearances: Certain industries or activities may require specific permits or clearances from relevant authorities. Identify any additional requirements and fulfil them accordingly.

To incorporate a company in Mauritius, certain records and documents are typically required. Here is a list of the common documents and records:

1. Memorandum and Articles of Association
2. Identification documents
3. Registered office address
4. Shareholders and directors’ details
5. Share capital details
6. Company name and objectives
7. Shareholders’ and directors’ resolutions
8. Statutory declaration
9. Certificate of good standing (for foreign companies)
10. Business plan
11. Proof of address
12. Consent forms

The overseas direct investment regulation is the latest regulation mandated by the Reserve Bank Of India (RBI) to facilitate the ease of business in a foreign country. Moreover, the regulations by RBI aim to promote easier investment by Indian-owned foreign corporations in Indian companies, which earlier would be charged as round tripping.

In conclusion, when incorporating a company in Mauritius, several records and documents are typically required. These include the Memorandum and Articles of Association, identification documents of directors and shareholders, the registered office address, details of shareholders and directors, share capital information, company name and objectives, shareholders’ and directors’ resolutions, a statutory declaration, a certificate of good standing for foreign companies, a business plan, proof of address, and consent forms.

It is essential to note that the specific requirements may vary depending on the type of company being incorporated and the applicable laws and regulations. Seeking professional advice from a lawyer or corporate service provider is recommended to ensure compliance and a smooth incorporation process.