Sovereign Mauritius - Authorised Company (AC)

Sovereign Mauritius assists with the formation and management of Authorised Companies (ACs), a flexible, low-maintenance non-resident company structure suited to holding assets or conducting business outside Mauritius. With no local economic substance requirement and a transparent tax regime, we deliver efficient and compliant setup and ongoing support.

About Authorised Companies in Mauritius

The Mauritius Authorised Company (AC) was introduced in 2019 to replace the Global Business Company Category 2 (GBC2). An Authorised Company is a private company that conducts business principally outside Mauritius and has its central management and control outside Mauritius. An AC requires no economic substance in Mauritius.

Authorised Companies are a flexible, low-maintenance structure for non-residents looking to conduct business or hold assets outside Mauritius. They are typically used for entrepreneurial companies, consulting activities, international trading, shipping and ship management, and e-commerce entirely outside Mauritius, or for holding private assets such as shares, property or intellectual property.

ACs are specifically prohibited from carrying out certain business activities, including banking, financial services, investment funds and nominee services.

Criteria for Mauritius Authorised Company

An Authorised Company in Mauritius must satisfy the following criteria:

Be incorporated under the Mauritius Companies Act.
The majority of shares/voting rights/legal/beneficial interest must be held by a non-citizen(s) of Mauritius.
Its business must be conducted principally outside Mauritius.
Its place of effective management (POEM) must be outside Mauritius.
It is required to have a registered agent in Mauritius, which must be a management company that is authorised by the Financial Services Commission (FSC).

Tax regime for Mauritius Authorised Company

For tax purposes, a company that satisfies the criteria for an Authorised Company in Mauritius enjoys non-resident status and, therefore, is not liable to corporate income tax in Mauritius except in respect of any income from Mauritius sources.

However, an AC is required to file an annual tax return to the Mauritius Revenue Authority (MRA) within six months of its year end.

There is no withholding tax on dividends in Mauritius that are paid to foreign shareholders. There is no capital gains tax and no inheritance tax or succession tax in Mauritius.

As a non-resident company, an Authorised Company is not eligible for benefits under double taxation agreements (DTAs) between Mauritius and other countries.

Setting up a Mauritius Authorised Company

To establish an Authorised Company, an application for incorporation must be made to the Financial Services Commission through an authorised management company in Mauritius. The submission should include information on the ownership structure, together with a brief business plan.

For an AC to establish its place of effective management (POEM) outside Mauritius, it is recommended that its board should comprise mostly foreign directors and most of its directors’ meetings, including the annual general meeting, should be held outside Mauritius. Corporate directors are permitted.

As part of an AC’s licensing requirements, the entity is required to maintain a Registered Office in Mauritius and have a Registered Agent located in Mauritius. This must be an FSC-authorised management company with responsibility for providing company secretarial service, board minutes, company resolutions, record keeping and anything else required by the FSC.

There is no requirement for an annual audit, but an AC is required to file an annual financial summary and annual tax return with the Mauritius Revenue Authority and maintain proper accounting records.

ACs are not permitted to transact in Mauritian Rupees but may operate in any freely convertible foreign currency. There is no requirement for ACs to maintain local bank accounts.