For the majority of people, being their own boss is a dream come true. You can work your own hours and the amount of effort you put into your business will determine how much profit you’ll be making afterwards. Usually when you work for somebody else, no matter how much you give to your job, you’re only going to get a fixed salary but when working for yourself, you will reap the benefits of hard work.
You have 2 choices when it comes to registering your business in Mauritius: you can either set up a company or register as self-employed. Although you can set up a one-man company, if your expected turnover is going to be below Rs2M (2 million rupees), you’ll save more by going down the route of self employment rather than forming a company. This is because you need to pay a yearly fee of Rs2000 every year to own the company name and although income and corporation tax is payable at a flat rate of 15% on your profits, you’ll have to pay an additional 2% of your book profits under what’s called Corporate Social Responsibility (CSR) if you trade under a company.
Procedures to declare you’re now self-employed
There are two steps. You should first go to the Registrar of Companies which is located at this address:
One Cathedral Square,
Jules Koenig Street,
Tel : 208 4539
The office is situated next to KFC on the road that leads to Champ de Mars and as soon as you enter the building, you’ll see stairs going downstairs on the left and that’s where you need to go.
You will have to fill in the Application form for Individual (BRF ):
Once this is completed, you will need to pay Rs100 for a Business Registration Card when you submit the form. This is a one off fee and you’ll get the business card will not bear any expiry date. Note that on one counter, the details of the form will be entered on their computer system and you’ll be asked to go settle the fee at another counter and return before being issued the business card. You’ll only need your Identity Card to complete the formalities.
As soon as you get your Business Registration Card, you should go to the Mauritius Revenue Authority (MRA) building to get a Tax Account Number (TAN) if you don’t already have one. The address is as follows:
Ehram Court, Cnr Sir Virgil Naz & Mgr Gonin Streets, Port Louis
If you’re going up Deforges Street from the municipality, you need to turn right just before Jummah Mosque (before the bus stop) and the offices will be on your left.
Once inside the building, you have to go on the first floor and you will need to have your Business Registration Card and Identity Card at hand. There’s no fee to pay and you’ll receive a nice little card with your TAN on it.
How much allowance are you entitled to before being taxed on your income
The tax year runs from July 1 to June 30 of the following year. You are however given income tax exemption based on the following:
Individual with no dependent : Rs255,000
Individual with one dependent : Rs365,000
Individual with two dependents : Rs425,000
Individual with three dependents : Rs465,000
Retired person with no dependent : Rs305,000
Retired person with one dependent : Rs415,000
This means that if you earn Rs300,000 in a tax year and you have no dependents, you’ll pay tax as follows:
Chargeable income = Rs300,000 – Rs255,000 = Rs45,000
Tax owed = 15% of Rs45,000 = Rs6750
And that’s why Mauritius is considered a tax haven because you pay less tax than in most countries.