MAURITIUS -  GLOBAL BUSINESS COMPANIES - GBC1, GBC2

Mauritius is an island located in the Indian Ocean with a time zone GMT+4 and a long history of free enterprise. The area of the country is 2040 km2, its capital is Port Louis. The Mauritian Constitution is based on the Westminster model. The head of state is the President but constitutional power is vested in the Prime Minister who is the head of government. Mauritius is highly ranked for democracy, economic and political freedom.

Mauritius has been actively involved in regional co-operation and is a member of the Common Market for Southern and Eastern AFRICA (COMESA), the Southern African Development Community (SADC) and the proposed Indian Ocean Rim Association.

Mauritius: THE INTERNATIONAL FINANCIAL SERVICES CENTRE

Comprehensive legislation was introduced to pave the way for non-banking offshore activities, following the set up of the first offshore bank in August 1989. The Offshore Authority was set up in November 1992 which played a crucial role in establishing and developing the offshore sector at large.  The Authority has adopted a professional and pragmatic regulatory approach by continuously improving on its services and guiding operators on enhancing the competitiveness of the Mauritius offshore jurisdiction.

The Financial Services Development Act 2001 (FSDA Act) also provides for the Financial Services Commission (FSC) to act as a one-stop-shop in all matters relating to Global Business.

GBC1 Company

GBC1 companies are incorporated under the Companies Act 2001 and licensed by the Mauritius Financial Services Commission. They are resident in Mauritius for taxation purposes   and   have   access   to   the   extensive   double taxation avoidance treaty network, provided they hold a Tax Residence Certificate issued by the Mauritius Revenue Authority.

GBC1 has also several advantages such as:

  • It is taxed at 15% less a generous deemed foreign tax credit of 12% or 15% less actual foreign tax paid
  • No capital gains tax
  • Royalties ,interests and service fees payable to foreign affiliates are allowed as expenses provided they are reasonable and correspond to actual expenses incurred
  • Interests paid on deposits in Banks are tax exempt
  • Dividends paid by a GBC1 are tax exempt
  • Royalties paid to non-residents are exempt
  • No stamp duties ,registration duties or levies
  • Duty concessions on office equipment ,furniture and motor vehicles

The approved Global Business activities include:

  • Aircraft financing and leasing
  • Asset Management
  • Consultancy Services
  • Employment Services     
  • Financial Services
  • Fund Management
  • Information and Communications Technology
  • Insurance
  • Licensing and Franchising
  • Logistics and Marketing
  • Pension Funds
  • Shipping and Ship Management
  • Trading

In order to obtain a GBC1 Licence from the Mauritius Financial Services Commission, the following factors have to be satisfied; the company

  1. shall have at least 2 directors, resident in Mauritius;
  2. shall maintain or maintains at all times its principal bank account in Mauritius;
  3. shall keep and maintain or keeps and maintains, at all times, its accounting records at its registered office in Mauritius;
  4. prepare or cause to prepare its statutory financial statements and causes or proposes to have such financial statements to be audited in Mauritius;
  5. provides for all meetings of directors to include at least 2 directors from Mauritius.

Although subject to Mauritian tax, they benefit from tax credits  and  a  low  tax  rate  (max  3%).  GBC1  companies have commonly been used by foreign business to structure investments and projects with Mauritian double tax avoidance treaty partners, including India, China, Italy, Luxembourg,  Thailand,  Rwanda,  South  Africa.  They  are also used to provide financial services, which may require additional licence.

Mauritius has so far concluded Double Taxation Agreements with the following countries;

AFRICA

EUROPE

ASIA

OTHERS

 

Botswana

Belgium

China

Barbados

Kenya

Croatia

India

Cyprus

Lesotho

France

Malaysia

Kuwait

Madagascar

Germany

Nepal

Oman

Mozambique

Italy

Pakistan

State of Qatar

Namibia

Luxembourg

Singapore

UAE

Nigeria

Sweden

Sri Lanka

 

Rwanda

UK

Thailand

 

Senegal

 

 

 

Seychelles

 

 

 

South Africa

 

 

 

Swaziland

 

 

 

Tunisia

 

 

 

Uganda

 

 

 

 

GBC 2 Company

GBC2 companies are incorporated under the Companies Act 2001 with a category 2 Global Business Licence. GBC2 companies are designed for business outside of Mauritius and may not carry on business in Mauritius. GBC2s are commonly used for:

  • Investment holding
  • Property holding ( real estate or other property)
  • Wealth protection
  • E-commerce
  • International Trade
  • Trade Invoicing
  • Intellectual Property Ownership
  • Consultancy Services (non financial)

 

GBC2  has several advantages such as:

  • Exempt from taxation
  • No capital gains tax
  • Royalties ,interests and service fees are tax free
  • Interests paid on deposits in Banks are tax exempt
  • Dividends paid by a GBC2 are tax exempt
  • Royalties paid to non-residents are exempt
  • No stamp duties ,registration duties or levies

 

OUTSTANDING FEATURES

 

GBC 1 Company

GBC 2 Company

Beneficial Owners

No publicly accessible records
Shares can be held by nominee arrangements

No publicly accessible records
Shares can be held by nominee arrangements

 

Shareholders

Minimum of one shareholder
Corporate shareholder permissible
No local shareholder requirement
Location of meeting can be anywhere
No publicly accessible records
No bearer shares permitted

Minimum of one shareholder
Corporate shareholder permissible
No local shareholder requirement
Location of meeting can be anywhere
No publicly accessible records
No bearer shares permitted

Directors

Minimum of two local resident directors required for access to DTA’s
No corporate directors permissible
No publicly accessible records
Meeting to be chaired from Mauritius to avail from DTAs

Minimum of one director
Corporate directors permissible
No local director requirement
No publicly accessible records
Location of meeting can be anywhere

Company Secretary

Management Company to act as company secretary.

Appoitment of company secretary is optional

Incentives

Foreign income taxed at 15% less a generous tax relief of 80%. Maximum tax payable is 3%
Royalties, Interests and Service fees payable to foreign affiliates are allowed as expenses provided reasonable and correspond to actual expenses incurred
Duty concessions on office equipments, furniture and motor vehicles


Exempt from taxation in Mauritius
No capital gains or withholding taxes

Accounts and Return

Annual audited account to be filed
No publicly accessible records
No annual company return filing to be done
Quarterly and annual tax filing requirement


Annual financial summary to be filed

Others

No stamp duties on transfer of shares
FSC License fee of USD 1,750
Annual registration fee of USD 300
Redomiciliation possible
Access to over 36 DTA’s

No stamp duties on transfer of shares
FSC License fee of USD 235
Annual registration fee of USD 65
Redomiciliation possible
No access to DTAs

Financial Services

Equity & Hedged Funds
Investment Dealer/Broker
Investment Adviser
Fund Manager
Payment Services Provider


Not allowed

 

IMPORTANT NOTES

  • We reserve the right to change fees without notice.
  • The payment options are: WIRE TRANSFER

Contact