Authorised Company (AC) in Mauritius

What is an Authorised Company?

The Authorised Company (AC) is a category of international company registered in Mauritius under the Companies Act 2001 and the Financial Services Act 2007. It replaced the former "Category 2 Global Business Licence", which was abolished as part of the Mauritian financial sector reform that came into effect on 1^st January 2019.

Unlike the Global Business Company (GBC), the Authorised Company does not hold a licence from the Financial Services Commission (FSC). It is simply registered with the FSC as a company authorised to conduct activities outside Mauritius. This distinction is fundamental as it determines the scope of activity, regulatory obligations and tax advantages of the structure.

Every Authorised Company must appoint a registered agent -- a management company holding an FSC licence, such as Sunibel Corporate Services. The registered agent serves as the interface with the authorities, maintains the mandatory registers and ensures compliance with regulatory obligations.

Who is the Authorised Company suited for?

The Authorised Company is suited to investors and entrepreneurs whose activities do not require access to the Mauritian treaty network and do not fall within sectors regulated by the FSC. The most common use cases include:

• Pure holding: holding assets, participations in foreign companies or intellectual property rights, without the need for tax treaty benefits. For structures requiring access to DTAs, see the Global Business Company.
• Intellectual property holding: centralisation and management of patents, trademarks, software licences or copyrights within an international structure.
• Group treasury: management of intra-group financial flows, inter-company loans and treasury optimisation, where access to DTAs is not necessary.
• E-commerce and digital activities: operation of digital platforms, marketing of online services or SaaS applications to an international clientele.
• Consultancy and professional services: management consulting, engineering, marketing or technology services provided to clients outside Mauritius.
• International trading: commodity trading not involving Mauritian territory (transit, brokerage, raw materials trading). International structures may also be set up through an international company in Mauritius.

Advantages of the Authorised Company

The main attraction of the Authorised Company lies in its administrative simplicity and reduced costs compared to the GBC. Here are the key advantages:

• No FSC licence required: the AC is simply registered, eliminating annual licence fees and associated application procedures.
• Fast incorporation: the process is shorter than for a GBC, typically 2 to 4 weeks.
• Reduced operating costs: compliance obligations being less onerous, annual administration fees are significantly lower.
• Structural flexibility: possibility of having a single director and a single shareholder, whether a natural or legal person, resident or non-resident of Mauritius.
• Confidentiality: information on shareholders and directors is not publicly accessible, subject to reporting obligations to the competent authorities.
• No enhanced substance requirement: unlike the GBC, the AC does not have to demonstrate the same level of economic substance in Mauritius, although it must maintain a registered agent and a registered office on the territory.

Limitations and restrictions of the Authorised Company

It is essential to understand the limitations of this structure before committing. The Authorised Company has several important restrictions:

• No access to double taxation agreements: this is the most significant limitation. The AC cannot benefit from the 44 DTAs signed by Mauritius. For structures requiring a reduction in withholding taxes or elimination of double taxation, the GBC is essential.
• Prohibition on operating in Mauritius: the AC cannot conduct commercial activities on Mauritian territory or provide services to the local public.
• Regulated activities excluded: financial services (banking, insurance, fund management, investment advisory) and other sectors regulated by the FSC are not accessible to the AC.
• External perception: certain commercial partners or financial institutions may afford less credibility to an AC than to a GBC holding an FSC licence.

Authorised Company taxation

The Authorised Company is subject to Mauritian corporate tax at the standard rate of 15 %. For an overview of the tax framework, see our guide on corporate taxation in Mauritius. The applicable tax regime merits careful analysis:

The AC may, subject to conditions, benefit from the deemed foreign tax credit provided for under Mauritian tax law. This mechanism allows, depending on the income structure and subject to meeting legal conditions, a reduction in the effective tax burden. The application of this credit depends on the nature and source of income and must be assessed on a case-by-case basis.

Important: the effective taxation of an Authorised Company depends on multiple factors -- the nature of the income, the jurisdictions involved, the shareholding structure, and applicable treaties (or lack thereof). We systematically recommend a personalised tax analysis before incorporating the company.

Furthermore, Mauritius does not levy withholding tax on dividends distributed by a Mauritian company to non-resident shareholders, nor on interest or royalties paid abroad. There is also no capital gains tax in Mauritius.

Incorporation process

Company formation in Mauritius follows a structured process. For the Authorised Company, this process is managed by the management company designated as registered agent. Here are the main steps:

1. Preliminary consultation: analysis of your project, your objectives and identification of the suitability of the AC structure to your needs.
2. Name availability check: checking the availability of the company name with the Registrar of Companies.
3. KYC document collection: preparation of the compliance file (identification of beneficial owners, source of funds, identity and address documents).
4. Drafting of constitutional documents: preparation of the Constitution (articles of association), directors' resolutions and the registration form.
5. Registration with the Registrar: filing of documents and company registration, obtaining the certificate of incorporation.
6. Notification to the FSC: declaration of the company as an Authorised Company to the Financial Services Commission.
7. Bank account opening: assistance with opening a bank account in Mauritius or another jurisdiction, depending on operational needs.

Required documents

To initiate the incorporation of your Authorised Company, the following documents are required for each beneficial owner, director and shareholder:

• Certified copy of a valid passport
• Recent proof of address (less than 3 months): utility bill or bank statement
• Bank reference letter from a recognised bank
• Detailed professional curriculum vitae
• Detailed description of the planned activity and business plan
• Evidence of source of funds and wealth
• For corporate shareholders: constitutional documents, certificate of incorporation, register of shareholders and directors

Comparison: Authorised Company vs Global Business Company