Mauritius is one of the most suitable environments to set up your business. It has a stable government, an excellent tax structure, and incentives for investments, making it a lucrative atmosphere to start your own business.
Mauritius enjoys a favorable position in the latest Doing Business ranking issued by the World Bank. As an island nation in the Indian Ocean, a few miles away from the East African coast, it is the fifth largest destination for foreign direct investment in Small Island Developing States.
Most Entrepreneurs from the United States, India, the United Kingdom, the Cayman Islands, or Hong Kong set up a sole proprietorship in Mauritius as it is the easiest business model to register and manage. There is no distinction between the owner and the firm, meaning the owner is entitled to all the profits in a sole proprietorship.
Sole proprietorship in Mauritius provides flexibility to the owner to work from anywhere independently or even hire employees if required. Individuals can register multiple sole proprietorships or do various businesses as sole proprietors in Mauritius.
Even if you are an independent contractor looking to start a sole proprietorship in Mauritius, even with just yourself in the company, here is how you can go about it.
Do you Have to Register Your Sole Proprietorship in Mauritius?
A sole proprietorship means that a single person is responsible for the liabilities and profits of the company. When you have a sole proprietorship, you enjoy the flexibility of working anywhere, have a trading name other than your legal name, and can engage in a variety of commercial activities.
If you are a sole trader, you must follow the Code de Commerce or the Commercial Code. To name the company anything other than your name and surname, you must also register at the Registrar of Companies.
Non-Mauritian citizens can also set up a sole proprietorship in Mauritius. There are no limitations on them starting or registering a business here. Once they obtain an occupation permit, they can set up a business.
If you are setting up a sole proprietorship in Mauritius, you must obtain a Business Registration Number (BRN). You must also register your business at the tax authorities and then file for returns yearly.
Benefits of Sole Proprietorship in Mauritius
Setting up a sole proprietorship in Mauritius has the perks that make independent contractors and new individual business owners turn towards it.
Sole proprietorship is owned, operated and run by an individual. The business and the owners are considered as a single entity. This provides unlimited liability, which makes the individual owner responsible for all the profits and losses.
The business structure offers complete flexibility to the proprietor. It means that the proprietor is not legally restricted from signing legal documents, conducting legal operations, signing a power of attorney, etc.
Easy to leave
Shutting down a sole proprietorship is just as easy as setting up a sole proprietorship in Mauritius. If you have a partner in the business, then the partner is shielded from bankruptcy through pre-nuptial and partner agreements. You can deregister yourself with the Registrar of Companies and settle your claims with the tax department.
A sole proprietorship in Mauritius is highly convenient as the individuals have the freedom of working from anywhere, having multiple trade names, etc.
While setting up a sole proprietorship in Mauritius, they do not have any capital requirements to start a business.
Tax and accounting
Income from a sole proprietorship is considered the owner’s income and taxed accordingly. Although bookkeeping and maintaining financial records is an excellent way to keep track of your business, it is not necessary to retain these records and file the annual account.
Documents Required for Registering Your Business in Mauritius
The documents required to incorporate sole proprietorship in Mauritius are as follows:
National Identity Card
This serves as an identity proof in Mauritius. The national identity card must be produced at the time of business registration.
Non-Mauritian citizens must produce photocopies of their passports to support their identity.
As mentioned above, if you want a business name other than your name, you must register yourself at the Registrar of Companies. Once you have incorporated your business, you will receive your incorporation number, which can be presented while filling out the registration form.
If you want to submit an address for your proprietorship, you can offer that address with the proof that it is yours.
Foreign nationals who want to have a sole proprietorship in Mauritius require an Occupation Permit (OP). The Occupation Permit is a combined permit for residing and working in Mauritius.
Other Criteria for Registering a Sole Proprietorship in Mauritius
Ensure you follow proper procedure while setting up a sole proprietorship in Mauritius.
- Have a purpose for the business ready so that you can fill it in when registering.
- Make sure you know everything about sole proprietorship taxes in Mauritius.
- For example, there is an additional VAT tax if your turnover is more than 6 million rupees.
- When you have registered for VAT payments, if your income is over 10 million rupees, you need to file it monthly, or else quarterly suffices.
- Ensure that you have procured all the necessary documents after obtaining land for your proprietorship if required.
- Familiarize yourself with patenting regulations, copyright, and more if your business involves innovations.
- Have a separate bank account for a sole proprietorship in Mauritius to make the accounts easier to handle.
How to Register a Sole Proprietorship in Mauritius?
Here is how you can register a sole proprietorship in Mauritius.
Incorporation of your business
- If you want a different business name, ensure it is available before registering.
- You can find the application forms for name reservation and incorporation of companies at the Registrar of Companies.
Registering the sole proprietorship business
- It can be done in two ways, online or in-person.
- To apply online, you can visit Mauritius Network Services (the official service provider) and follow the on-screen instructions.
- If you want to do it in person, you can register by filling out the application for your business registration at the Registrar of Business.
- You are required to fill any one of the three forms as applicable – BRF 1 for individuals, BRF2 for company/ commercial partnership, and BRF3 for ‘société’. Download the forms from the official page.
- While filling up the application form, individuals should carry all the required documents. On the application form, they must clearly state the following detail:
- Full name and address
- National identification number
- Name and address of the registered office
- Business name
- Nature of business
- Contact details of business including telephone number and email address
- Date of the commencement of business
- After filling out the form, you need to pay a one-time fee for the registration. The fee differs according to the size of the business.
- For at most ten people, the fee is Rs. 125
- For 11-50 people, the fee is Rs. 250
- For 51-100 people, the fee is Rs. 600
- For more than 100 people, the fee is Rs. 1500
- After you have applied, the fee is processed. And then, you receive your Business Registration Number (BRN).
- The BRN must be mentioned on all the invoices you issue for your business.
Opening a bank account
- You can open a bank account for a sole proprietorship in Mauritius.
- You will have to submit all the documents for the business registration, along with the incorporation and business registration numbers.
Register for VAT
- As a self-employed entrepreneur, you must register for Value Added Tax (VAT) only.
- Only those who have a turnover above 6 million rupees or fall under the 10th section of the VAT act can register.
Once the procedure is complete, you can start operating as a sole proprietorship in Mauritius.
How Can Multiplier Help?
Sole proprietorship in Mauritius is a fantastic way to have the least risks while still having total control over the business. Moreover, there are no minimum requirements for the number of employees or capital. So, you can start your business with practically nothing. Furthermore, they can also scale their business if and when required.
You may need to hire skilled and authentic employees to flourish your business. No doubt, onboarding employees, payroll and team management can become a massive challenges. However, it is time-consuming and financially burdening. That is where Multiplier comes to your aid.
Multiplier is a global employment solution that helps sole proprietors. We have one-click payroll services to help seamless payments for international employees and freelancers. Our team of experts also helps with the onboarding of employees in Mauritius. All these services are provided while keeping in mind the rules and compliances for running a business in Mauritius.