Feeling boxed in by complex tax codes and endless paperwork? If you’re an entrepreneur or digital nomad searching for a straightforward, low-burden way to operate a business in 2025, Mauritius offers a refreshingly simple solution: the Sole Trader (Sole Proprietorship) status. Let’s break down exactly how this works, what you’ll pay, and how to optimize your setup—using only the latest, verifiable data.
Understanding Sole Proprietorship in Mauritius: Key Facts for 2025
In Mauritius, the Sole Trader (also called Sole Proprietor) status is not just a theoretical option—it’s widely used and accessible to ordinary citizens. Here’s what sets it apart:
- No separate legal entity: You operate as an individual, not a corporation.
- Simple registration: All you need is to register with the Corporate and Business Registration Department (CBRD) and obtain a Business Registration Card.
- Individual taxation: Your business income is taxed as personal income under the Income Tax Act.
At-a-Glance: Sole Trader Status in Mauritius (2025)
| Requirement | Details |
|---|---|
| Legal Status | No separate entity; individual is the business |
| Registration | CBRD registration + Business Registration Card |
| Income Tax Rate (2025) | 15% on chargeable income |
| Alternative Tax (Solidarity Levy) | Applies to higher incomes (see MRA) |
| VAT Registration Threshold | MUR 6 million (approx. $130,000) annual turnover |
| Social Security | National Pension Fund & National Savings Fund contributions required |
How to Register as a Sole Trader in Mauritius: Step-by-Step
Cutting through red tape is possible. Here’s how to get started:
- Register with the CBRD: Visit the CBRD portal and complete the online application.
- Obtain your Business Registration Card: This is your official proof of business status.
- Check your turnover: If you expect to exceed MUR 6 million (about $130,000) per year, register for VAT via the Mauritius Revenue Authority.
- Set up social security contributions: Register for the National Pension Fund and National Savings Fund as required.
Pro Tip: Optimize Your Tax Burden
- Track your income and expenses meticulously. Since you’re taxed as an individual, every deductible expense counts.
- Monitor your annual turnover. Staying below the VAT threshold (MUR 6 million / $130,000) can simplify compliance and reduce costs.
- Plan for the Solidarity Levy. If your income is high, check the latest thresholds and rates on the MRA website to avoid surprises.
Why Mauritius Appeals to Freedom-Minded Entrepreneurs
Unlike many jurisdictions where starting a business means navigating a maze of regulations and high taxes, Mauritius keeps things lean. The 15% flat personal income tax rate (2025) is competitive, and the VAT threshold is high enough to give small businesses breathing room. Social security contributions are required, but the process is transparent and predictable.
Summary: Key Takeaways for 2025
- Sole Trader status is fully available and widely used in Mauritius.
- Registration is straightforward via the CBRD, with minimal bureaucracy.
- Taxation is at a flat 15% rate for individuals, with additional levies for high earners.
- VAT registration only applies above MUR 6 million ($130,000) turnover.
- Social security contributions are mandatory but manageable.
For more details, consult the official resources:
- CBRD Business Registration
- Mauritius Revenue Authority: Business Registration
- Mauritius Revenue Authority: Taxation for Individuals
- Mauritius Revenue Authority: VAT Information
With the right approach, Mauritius can be a haven for those seeking simplicity, transparency, and a fair tax regime in 2025.