GSL / Foreign Companies Audit / Audit Mauritus

Mauritius company audit, financial statements, accounting, consulting in Mauritius

Mauritius (the official name is the Republic of Mauritius) is an island state in South Africa. It is located in the southwestern part of the Indian Ocean, about 900 km east of Madagascar. Mauritius is a popular offshore zone. Mauritius attracts businessmen with its lack of bureaucracy, diversified economy, easy rules for doing business and clear legislation. The economy of Mauritius is based on sugar production (sugar cane is grown on about 90% of cultivated farmland), tourism and textile industry. Recently, the offshore and banking sectors of the economy, as well as fish harvesting and processing, have been developing.

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Service packages «Mauritius, Authorised company» Service packages «Mauritius, GBC» Legislation Tax System Audit Services
Preparation and submission of accounts

(according to the actual time spent)

Minimum cost – 1 100 USD

100-400 USD per hour
Preparation and submission of accounts, audit

(according to the actual time spent)

100-400 USD per hour
Apostille of financial statements (if necessary)
from 840 USD

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General requirements

In Mauritius there is a clear division of companies by size into small, medium-sized and large. Small enterprise is an enterprise with annual turnover of up to 10 000 000 MUR (Mauritian rupees). Medium-sized enterprise is an enterprise with annual turnover of more than 10 000 000 MUR, but not more than 50 000 000 MUR. Annual turnover of large companies is over 50 000 000 MUR.

Joint-stock limited liability companies can be incorporated in Mauritius in two forms: Global Business License Company (GBLC / GBC) and Authorized Company (AC). An essential difference between them is that global business license companies are allowed to conduct business both in and outside Mauritius, and ACs have no right to conduct business in Mauritius, they are only allowed to conduct business abroad.

The legal basis for activities of these two types of companies is the Companies Act 2001 and the Financial Services Act 2007 as amended.

In accordance with the Companies Act, each financial statement must reliably and correctly reflect and explain all transactions of the company, accurately reflect the company’s financial position at any time of the reporting year, comply with legislation and ensure proper quality audit (for large companies).

Reporting materials of a company must be kept in Mauritius, unless the company’s directors have agreed otherwise.

An Authorized Company (AC) must keep records of transactions made in the course of its activity and keep supporting documents at its registered (agent’s) address and annually file:

  • a financial summary, i.e. simplified financial statements, with the Financial Services Commission (FSC); and
  • an annual tax return with the Mauritius Revenue Authority (MRA).

As for a Global Business Company (GBC), besides the requirement to make and keep financial statements (in full and not in a simplified form like an AC), a GBC must provide the Financial Services Commission of Mauritius not only with financial statements but also an auditor’s opinion prepared regarding such financial statements. In addition, a GBC must provide the Mauritius Revenue Authority with an annual tax return.

Making and keeping financial statements
Yes, keeping in Mauritius
Yes, keeping in Mauritius (by default) or at any other address (by director’s order)
Presenting financial statements to FSC
Yes, but in condensed form (financial summary)
Presenting a tax return to MRA
Presenting an annual return to the Registrar

Time frame for preparation and submission of accounts

Every company in Mauritius must file its annual return with the Registrar within 28 days after the date of holding an annual general meeting. Failure to file an annual return is an offence for which the company can be held accountable.

Every company, irrespective of whether it is a taxpayer (for example, a GBC) or not (for example, an AC), must prepare and present an annual profit tax return reflecting all income that the company received during the previous year and pay tax (if any). An annual profit tax return must be filed with the Mauritius Revenue Authority once a year within 6 months after the end of the financial year.

Besides the abovementioned annual returns, companies must also file APS (Advance Payment System) quarterly returns and pay tax in accordance therewith. The requirement to file APS returns do not apply to companies whose turnover is under 10,000 000 MUR per year, i.e. small enterprises. The Revenue Authority must receive an APS return and tax payment, if any, within 3 months after the end of the month in which the APS quarter ends, unless the quarter ends in March or September.

A company that has paid tax in accordance with APS is not exempt from filing an annual return. Tax payment in accordance with APS is a preliminary payment. Any company that has paid tax in accordance with APS must file its annual return and pay any tax payable in accordance with the tax return, after deduction of the tax already paid in accordance with APS or withheld at source (if there is tax deduction).

Audit of accounts

Except for AC companies and small private companies as well as small and medium-sized enterprises, all companies in Mauritius must be audited. Firms and enterprises prepare compulsory financial statements and audit those statements in Mauritius. Then they are filed with the Financial Services Commission (FSC). Audited financial statements must be presented to FSC within 6 months after the end of the financial year (or 3 months, for companies that have a license to conduct certain activities in the field of financial services).

Liability for late filing of accounts and late payment of tax

Liability for late filing of accounts implies payment of an administrative penalty. Administrative penalties are only calculated for workdays. The administrative penalty charged for each workday is 10 USD for both GBCs and ACs. For instance, the company “A” has a global business license issued by FSC and its financial year ends on 31 December. On 15 August 2021, the company “A” filed audited financial statements for the year that ended on 31 December 2020 (such financial statements must have been presented by 30 June 2021). The company “A” must pay an administrative penalty of 320 USD (10 USD x 32 days).

In order to simplify processing and to avoid any discords or discrepancies, administrative penalties are calculated using a form available at the website of FSC.

The maximum amount of an administrative penalty is calculated as follows:

  • a 150 000 MUR limit has been applying since 1 January 2018; and
  • for unpaid amounts on 31 December 2017: up to 150 000 MUR – the actual amount payable; over 150 000 MUR – 150 000 MUR plus one third of the rest.

Penalty for late filing of an annual income tax return:

  • Each person who must file a tax return and fails to do so is imposed with a penalty of 2 000 MUR per month until the tax return is filed, but not more than 20 000 MUR. However, if the person is a small enterprise with annual turnover not exceeding 10 000 000 MUR or an individual not engaged in business the maximum penalty is 5 000 MUR.

Penalty for late payment of tax:

  • In the case of late payment, a penalty amounting to 5% of the tax amount is charged. However, if the person is a small enterprise with annual turnover not exceeding 10 000 000 MUR or an individual not engaged in business, the penalty rate is 2%.

Consolidated financial statements

Reports on economic activities of Mauritian companies must be prepared in accordance with the International Financial Reporting Standards (IFRS). This requirement is obligatory for domestic and foreign companies that conduct business in Mauritius, for companies that are registered on an exchange and for those who are not, for large enterprises and small and medium-sized enterprises that, in turn, retain possibility to choose the full IFRS or IFRS for small and medium-sized enterprises. In accordance with IFRS 10, 11 and 12, which are an accounting guide regarding consolidation and joint ventures, Mauritian companies must prepare and provide consolidated financial statements in cases determined by the standards.

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