Mauritius Introduces Beneficial Ownership Disclosure Requirements for Companies and Entities

The Registrar of Companies in Mauritius has issued a new practice direction aimed at enhancing transparency and combating financial crimes by requiring companies and other entities to disclose their beneficial ownership information. This move is expected to boost investor confidence and improve the island nation’s reputation as a reputable offshore financial center.

Key Requirements

Maintaining Registers of Beneficial Ownership

All companies and entities, including partnerships and foundations, must maintain registers of beneficial ownership.
The names of the beneficial owners or ultimate beneficial owners must be entered in these registers and kept for at least seven years.

Filing Changes to Beneficial Ownership Information

Any changes to the beneficial ownership information must be filed with the Companies and Business Registration Department within 14 days of being recorded in the entity’s register.
This information will only be disclosed to third parties under specific circumstances, including when required by the beneficial owner or ultimate beneficial owner, as part of an investigation or enquiry, or when ordered by a court.

Communicating Existing Beneficial Ownership Records

Entities must communicate their existing beneficial ownership records to the Companies and Business Registration Department prior to filing their next annual return.
This requirement aims to ensure that all entities are in compliance with the new rules from the outset.

Definition of Beneficial Owner or Ultimate Beneficial Owner

A natural person who holds a share or interest that entitles them to exercise not less than 20% of the aggregate voting power in a meeting of shareholders or council members is considered a beneficial owner or ultimate beneficial owner.

Seeking Specialist Advice

While the new practice direction aims to provide greater transparency and accountability, it is essential for entities to seek specialist advice on how these requirements apply to their specific circumstances.

Expected Impact

The move is expected to strengthen Mauritius’s position as a reputable offshore financial center and boost investor confidence in the country’s corporate landscape.