An offshore company is a tax exempt company that is not authorized to engage in business in the country’s jurisdiction where it is incorporated. Offshore companies are non-resident companies. As opposed to offshore companies there are so-called “onshore” companies which are resident.
This definition applies to the “real” offshore jurisdictions (often islands), but it is also possible to create offshore companies in countries such as the Switzerland, the Ireland, Hong Kong or Singapore, where there is reduced taxation, and with the possibility of having local activities in addition to your international activities.
Concretely, an offshore company is a simple Ltd. or LLC created in an offshore jurisdiction, with or without the obligation of filing accounts, and with a low taxation rate which may even equal to 0%.
In other words, an offshore company is located in a Fiscal paradise.
This type of jurisdiction very often allows recourse to Nominee Directors and Nominee Shareholders for more privacy. The creation of an offshore company is also very often associated with the creation of an offshore bank account, which allows having a coherent whole.
However, countries such as France and the United Kingdom do not deal with fiscal paradise and concealing his income in a fiscal paradise is considered as a tax evasion offence and punishable by the laws in most part of the countries of the world.
An Onshore company has the obligation to keep record of all its accounting in the host country and file a tax return annually. On the basis of the profit realized, the company is taxed at the rate in force in the country.
The Onshore Company is a legal structure perfectly suited for double taxation avoidance strategies because it often involves international DTA treaties
In the end, a French group may, through the creation of an onshore company, reduce the taxation on profits derived in this country, because in the absence of this onshore subsidiary, the Group would have taxed in France at the rate of 33.33%.
For a small company being taxed in France (EURL to IS for example,) or SASU to IS…, the setting up of a Onshore may be a way of limiting its taxable income in France and stay in the fiscal level at the reduced rate of 15%.
If an Onshore company performs services on behalf of a French company, it is normal that the resulting benefits are taxed in the host country. These services may be:
– Computer services,
– Business services ,
– Advice , in marketing for example,
– Legal Consulting and advice…
For commercial enterprises, an onshore company may also buy goods to sell to a French company. The profit remains in the onshore accounts is not taxed in France. Then arises the problem of pricing transfer: is the selling price of the Onshore justified, or abnormally high ?
The answer to this question should be able to be justified, so it is always advisable to go through a consulting firm to setup an onshore company.
OS Consultants has the required expertise to setup and maintain your company onshore in Mauritius. Whether you are looking forward to setup an onshore company, a simple holding company or you are a self employed who wishes to reduce your tax expenditure, both at a personal level and for your business, OS Consultants has all the necessary tools to advise you and provide you with the best solution to suit your needs legally.
OS Consultants is managed by professional accountants who take full the responsibility for the tax returns submitted, thus offering you the guarantee of never having any penalty or additional tax to pay during a tax control. In case of errors or understatements, OS Consultants takes the responsibility for any additional payment as well as penalties.
Mauritius is a small island located in the southwest of the Indian Ocean, ideally located between Africa, Asia and Europe. Historically close both the France and the United Kingdom, these two languages are commonly spoken by the vast majority of the population.
On the economic front, all international rankings agree to say that Maurice is the number 1 of the African continent in financial circles and business.
The country has been advantageously modernized in recent years and continues to grow rapidly offering more services and infrastructure to foreign investors.
Maurice is also the largest maritime freight platform of any Indian ocean. An inevitable transit between Australia, Asia and Africa.
The African continent is constantly changing.
Maurice, by its stable political climate, its technical, legal and secured financial platforms, by its diverse economy which promotes several areas such as information technology, eco-tourism, telecommunication or finance, is therefore THE countries to follow !
– Registered address,
– Tax returns,
– Total liability concerning tax assessments,
– A company Secretary and a local non-executive director for domestic companies,
– A tax representative for individual companies,
– Support for tax controls.
Mauritius has signed with the United Kingdom (UK) and the France agreement in principle and tax agreements which facilitate trade with these two countries.
Mauritius also signed a double taxation avoidance agreement and free exchange of information with both countries making all information completely transparent with these two countries
– Less direct costs
= Result (profit) gross
= Result (profit) net taxable.
Tax calculation = 15% of taxable profit
– Tax credit
= Tax payable or loss carried forward the following year
A shareholder possesses shares of the company is the only or one of the owners of the company.
A Director is appointed by vote from the Board of shareholders. The directors manage the company. They can decide whether to pay or not to pay dividends to shareholders.
It is possible to use the funds as you wish except for illegal or terrorist activities.
However, only authorized expenditure will be taken into account. The rest will be considered as withdrawal or dividends according to the type of company.