This article outlines the availability and regulatory framework of the sole proprietorship (referred to as “Sole Trader” or “Sole Proprietorship”) status in Mauritius for 2025. The focus is on how individuals can operate under this structure, the associated registration process, income tax rates, VAT obligations, and social security contributions as prescribed by Mauritian authorities.
Sole Proprietorship Status in Mauritius: Key Facts
Mauritius continues to offer straightforward access to sole proprietorship for both citizens and residents. This status enables an individual to trade under their legal name or a business name without forming a separate legal entity. Below is a summary of the primary requirements, registration steps, and tax responsibilities for sole proprietors in Mauritius in 2025:
| Status Name | Availability | Registration Authority | Main Tax Rate (Percentage %) | VAT Registration Threshold (MUR) | VAT Registration Threshold (USD) |
|---|---|---|---|---|---|
| Sole Trader (Sole Proprietorship) | Yes | Corporate and Business Registration Department (CBRD) | 15% | MUR 6,000,000 | ~$133,000 (USD/MUR ≈ 45 as of early 2025) |
Overview of Registration and Compliance Requirements
- Eligibility: Available to individuals who wish to conduct business activities without incorporating a company.
- Registration: Business registration with the Corporate and Business Registration Department (CBRD) is mandatory. Upon approval, a Business Registration Card is issued.
- Legal Status: No separate legal entity—business obligations and liabilities rest with the individual owner.
Taxation Framework (2025)
Sole proprietors in Mauritius are subject to the personal income tax regime established by the Income Tax Act. Tax is charged directly to the business owner as an individual.
| Tax Type | Tax Rate (Percentage %) | Notes |
|---|---|---|
| Personal Income Tax | 15% | Standard individual rate on chargeable income; as per the Income Tax Act |
| Solidarity Levy | Additional Calculation | May apply to higher incomes under alternative tax calculations |
For further details, refer to the Mauritius Revenue Authority (MRA) website.
VAT (Value Added Tax) Obligations for Sole Traders
- Threshold: VAT registration is mandatory if annual turnover exceeds MUR 6 million (~$133,000 USD at a rate of 45 MUR/USD in early 2025).
- For more information, see the VAT section of the MRA website.
Social Security Contributions
- National Pension Fund (NPF) and National Savings Fund (NSF): Sole proprietors are required to make contributions to these funds. Details about rates and contribution procedures are available through the Mauritius social security authorities.
Pro Tips for Setting Up a Sole Trader Business in Mauritius
- Register your business as early as possible at the CBRD to avoid legal complications and ensure you have your Business Registration Card before trading.
- Keep accurate accounting records from day one—this simplifies both income tax and VAT compliance, especially if you approach the MUR 6 million turnover threshold.
- Regularly check your yearly income to determine if you are close to the VAT registration limit to avoid accidental non-compliance.
- Be proactive with social security contributions (NPF and NSF) as failure to comply can result in penalties or loss of state benefits.
- Consult the official Mauritius Revenue Authority websites for the latest forms and up-to-date guidance, as requirements or tax rates may change annually.
Key Official Resources
- Corporate and Business Registration Department (CBRD)
- Mauritius Revenue Authority: Business Registration
- Mauritius Revenue Authority: Taxation Individuals
- Mauritius Revenue Authority: VAT Information
In summary, Mauritius allows accessible setup and operation under the sole proprietorship status, with straightforward tax and compliance requirements for 2025. The income tax rate remains a flat 15%, and VAT registration is only triggered at a relatively high turnover threshold. Social security contributions and proper registration procedures are non-negotiable for anyone planning to operate as a sole trader. Always refer to official local sources before making final business decisions.