One of the fastest growing areas in the insurance sector is the formation of a captive insurance company. Indeed, many companies are turning towards the creation of a captive to self-insure their risks and avoid extra cost that insurers charged.
Key Features
A captive is an insurance company formed to insure or reinsure the risks of its parent and affiliated entities within its group. One of the key functions of a captive is to facilitate the efficient financing of risk within the group and therefore serves as a sophisticated in-house risk carrier.
Legal Requirements
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Requirements |
Description |
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General |
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Category 1 Global Business Company |
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No |
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Share capital or equivalent |
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· Minimum paid up capital |
None |
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· Minimum investors |
None |
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Directors |
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2 |
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Yes |
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Yes |
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Shareholders |
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1 |
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Yes |
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No |
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Service Providers Required |
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Yes |
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Yes |
Tax Treatment
- Income tax is at the rate of 15%. The laws of Mauritius allow an underlying foreign tax credit, equal to the amount of foreign taxes paid, up to the amount of tax due in Mauritius.
- In the absence of proof, the amount of foreign tax paid is presumed to be 80% of the Mauritius tax. The effective tax rate can thereby be reduced to a maximum of 3%.
- Investment funds which are centrally controlled and managed in Mauritius can, with the approval of the Director General of the Mauritius Revenue Authority, accede to the benefits of Double Taxation Agreements.
- There is no withholding tax on dividends, capital gains and interests.
Duration to Set Up
Around 8 weeks
Distinctive Benefits of Licence
- Cash flow is enhanced as an organization can time premium payments to fit in with its own cash flow situation.
- Captive insurance allows organizations direct access to the reinsurance market.
- Through direct access to the reinsurance market; over time, successful underwriting creates surplus in the captive, enabling the parent to increase retentions lowering its dependency on reinsurance.
- Enjoy the benefit of purchasing particular coverage’s that are unavailable or unacceptably priced in the commercial insurance market.
- The captive earns investment income on premiums and capital during the period over which losses are paid out.
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers