Companies Act 2001- Strategic Highlights

In line with international best practices, the law provides a modern vehicle for domestic and international investors to invest in and from Mauritius. 

The Act provides for a core statement of company law that applies to all companies whether domestic or those with a global business licence.


What type of entities can be incorporated by the Registrar of Companies in Mauritius?

One who wishes to set up an entity in Mauritius should like to consider the following options:

Is a Public Company appropriate for the proposed business or the setting up of a Private Company best suits the vision of one’s business?

Basically, most businessmen start by setting up a Private Company with much less than 25 shareholders. Then if the number of shareholders increases to 25 or more, the Company automatically falls under the category of a Public Company, where the individual has the obligation in accordance to the Companies Act 2001 to make an application to the Registrar of Companies for the Company to be converted from a private company to a public company.

The following is one important aspect of a Private Company:

1.A private company is limited to 25 shareholders and cannot offer shares to the public. Companies can have a limited or unlimited life.

As per the Companies Act, one also has to decide on the following options:

  • 2. To set up a “Company limited by guarantee” means a company having the liability of its members limited by the memorandum to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.
  • 3. To set up a “Company limited by shares” means a company having the liability of its members limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them.
  • 4. To set up a “Company limited by shares and guarantee” which entails the above both characteristics.
  • 5. To set up an “Unlimited company” means a company not having any limit on the liability of its members.

To make it simpler, below are the tabular distinctions between the types of structures to enabling businesses to make informed decisions commensurate with their business objectives:

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