The 27-year-old, who was known as The Brand, was discovered by police at his apartment on the Isle of Man where he has lived most of his life.
A police spokeswoman said the cause of death was "unknown" but there was "nothing to indicate that his death is criminally suspicious at this time".
Police were called to to an address on Central Promenade in Douglas - which was owned by Stuart - at 9am this morning.
He was the youngest ever candidate when he appeared on the BBC One show in 2010, at 21 years old.
He was best known on the show for funny one-liners including "Everything I touch turns to sold" and "I'm Stuart Baggs the brand".
Alan Sugar tweeted his condolences shortly after the news broke, writing: "Terrible news Stuart Baggs has died.
"My sincere condolences to his family and friends. RIP one of the stand-out characters of the Apprentice."
Stuart - who is from Plymouth – has an office in Tower House, Douglas on the Isle Of Man where he works as managing director of BlueWave Communications.
In an interview given last week on his birthday to Business News the entrepreneur appeared “excited” as he geared up to launch his company's latest product -BlueWave’s landline-free Superfast 4G Home Broadband
He said: “Over the past few years we’ve achieved something truly magical. From humble beginnings, our company has grown to support more than 4,000 customers.
“I’m 27 today but as usual I will be putting in an 18-hour day.”
The dedicated businessman continued, discussing his typical working day: "I work, as my hair will tell you, at least 18 hours a day. I sleep for four hours religiously, I would not have it any other way, like Margaret Thatcher’."
He added: "Work gives me a buzz but I always feel there is more to do. As to the future we are already working on that."
Stuart last tweeted just 23 hours ago talking about the launch, which took place yesterday, writing: "Making headlines with our new 4G LTE home broadband network."
After being fired by Alan Sugar on the Apprentice, Stuart went on to run his own telecoms company.
Last year he said: "At 26, I'm director of a global group turning over in excess of 5 million pounds. It's time to get serious & use Twitter to talk business."
At the same time he said of the TV show: "Hello Twitter .It's been a while & it's time for a confession. 4 years ago, The Apprentice changed my life in many ways. Some good, some bad."
On another occasion he compared The Apprentice to a "mouldy box of ice cream left out of the freezer for 10 years" in an interview with the Radio Times.
He added: "It needs me to replace Sugar. I've got a sense of humour but at the same time I wouldn't put up with any crap.
"I challenge Lord Sugar to show me his Ferrari at age 26. Just saying, just saying…"
He was last on TV in October 2014 when he appeared on Come Dine With Me.
Discussing that experience he said: "I'm a terrible cook! You've only got to make one slip-up and that makes it into the edit - that's how TV works.
"It's a bit different filming the show in the island. You know everyone will be watching it, everybody will be talking about it. So we tried to present a united front. That lasted until the taxi ride home the first night! I started from a position of being hated so the others had further to fall."
Police have issued the following statement: "Police can now confirm that the man is Stuart Mark Alden Baggs, 27 years of age.
"Police confirm that at this time there is nothing obvious to indicate the cause of his untimely death and enquiries will continue.
"The police request that consideration is given to the privacy of the family and friends at this difficult time."
Stuart Braggs, a former star of BBC One's The Apprentice, has died.
The 27-year-old, who was known as The Brand on the popular show, was discovered by police at a property on the Isle of Man.
A police spokeswoman said there was "nothing to indicate that his death is criminally suspicious at this time".
He was the youngest ever candidate when he appeared on the reality talent show in 2010, at 21 years old.
Luisa Zissman pays tribute
Former Apprentice star Luisa Zissman described Stuart as one of her "favourite ever contestants".
Luisa, who was runner-up in series nine, wrote on Twitter: "RIP one of my fav ever Apprentice contestants Stuart Baggs 'The Brand'.
"He has joined the 27 club. What a tragedy."
Stuart had plans to 'change the world'
Stuart Baggs gave his last interview a week ago, where he talked about ‘changing the world’ with his telecommunications business.
Celebrating his 27th birthday last week, Baggs spoke of his excitement over his company, BlueWave Communications Ltd, and its new product.
Baggs was proud of growing his company to over 4,000 customers, and admitted that it meant 18-hour days.
“I work, as my hair will tell you, at least 18 hours a day. I sleep for four hours religiously, I would not have it any other way, like Margaret Thatcher,” he explained.
“But also I’m a geek I make no excuse for it. I started this business as a geek.”
Lord Alan Sugar pays tribute
Lord Alan Sugar took to Twitter to pay tribute to Stuart - calling him a "stand out character".
He wrote on the site: "terrible news Stuart Baggs has died.
"My sincere condolences to his family and friends RIP one of the stand out characters of the apprentice (sic)."
Stuart was well-known for his one-liners
Stuart was best known on The Apprentice for his funny one-liners.
They included: "Everything I touch turns to sold" and "I'm Stuart Baggs the brand".
He was last on TV in October 2014 when he appeared on the cooking show Come Dine With Me.
3:12 pm
Stuart launched his latest product just days ago
Entrepreneur Stuart launched his own company, Bluewave Communications, in 1997.
On Tuesday he held a press conference to launch a new telecommunications product to improve broadband speed in rural areas.
He told Isle of Man Today: "Over the past few years we've achieved something truly magical. From humble beginnings, our company has grown to support more than 4,000 customers.
"I’m 27 today but as usual I will be putting in an 18-hour day."
'Nothing to indicate his death is suspicious'
Police said there was nothing to indicate that Stuart's death was suspicious.
They sad the cause of his death was currently "unknown".
Stuart was found when police were called to a property in Douglas, the Isle of Man, at 9am
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