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Mauritius Global Business Company (GBC): Overview.

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Mauritius Global Business Company (GBC): Overview

Mauritius Global Business Company (GBC) offers a compelling option for international businesses seeking a tax-efficient and flexible operating environment. This guide delves into the key aspects of establishing a GBC in Mauritius, empowering you to make an informed decision about this potentially advantageous structure.

Key takeaways

  • GBCs can be incorporated within 10-14 working days.
  • No minimum share capital requirement, but a minimum of USD 1,000 is advised.
  • 15% corporate tax on chargeable income, with attractive double taxation agreements (DTAs) reducing or eliminating it in many cases. A 3% corporate tax is applicable on GBCs carrying out international trading.
  • Without proper licensing, GBCs cannot engage in banking, insurance, or securities activities.

Mauritius Global Business Licence Company

A GBC is a company incorporated or registered in Mauritius that primarily conducts business outside the country.

Mauritius established its GBC regime in 1992, and the governing laws are continuously refined, ensuring a modern and comprehensive framework for offshore companies. GBCs are incorporated under the Companies Act 2001 and the Financial Services Act 2007, offering a high degree of legal certainty and transparency.

Benefits of a Mauritius GBC

  • Partial tax exemption: While GBCs are technically considered residents in Mauritius and subject to a 15% income tax, they benefit from partial exemptions on some specific business activities.
  • Global flexibility: GBCs can operate virtually anywhere globally, enjoying international flexibility while leveraging Mauritius’ stability and infrastructure.
  • Access to double taxation treaties: Mauritius’ extensive network of over 45 double taxation treaties further reduces tax burdens for GBCs in other countries.
  • Political and economic stability: Mauritius boasts a stable democracy and strong economy, offering peace of mind for international investors.
  • Business-friendly environment: Streamlined regulations and efficient administrative processes create a conducive environment for business.
  • Skilled workforce: Mauritius has a readily available pool of skilled professionals, particularly in finance and law.
  • Zero foreign exchange controls: Companies can freely transfer funds in and out of Mauritius.

Trading restrictions

GBCs cannot engage in certain activities without proper licensing in Mauritius or the relevant foreign jurisdiction. These activities include:

  • Banking and insurance
  • Providing international corporate, trustee, or foundation services
  • Securities business
  • Operating mutual funds
  • Establishing gambling businesses

Requirements for setting up a GBC

  • Shareholding and control: The company’s core operations and strategic decisions must be managed and controlled in Mauritius.
  • Incorporation: At least one shareholder (individual or corporate) and two resident directors are required. A registered office within Mauritius is necessary.
  • Company secretary: Appointing a local qualified company secretary is mandatory.
  • Company name: Names can be in any language but must be accompanied by an English or French translation. Restrictions apply to avoid similarities with existing companies, government references and prohibited words.
  • Registered office: A registered office is mandatory and must be located in Mauritius.
  • Language of documents: English or French are preferred, with translations required for other languages.
  • Additional requirements: A detailed business plan, a legal certificate from a Mauritian lawyer, due diligence checks and annual reporting requirements with the Mauritius Revenue Authority (MRA) and Financial Services Commission (FSC) are mandatory.

Mauritius GBC incorporation process

  1. Name availability check: Confirm the desired company name is available through the Registrar of Companies.
  2. Application submission: Submit an application to the FSC with supporting documents, including the constitution, memorandum, proof of director/shareholder identity and business plan.
  3. Payment of fees: Pay the relevant incorporation and annual fees.
  4. Obtaining the certificate of incorporation: Upon approval, the Registrar of Companies issues a Certificate of Incorporation, officially establishing the GBC.

Compliance requirements

  • Share capital: The stated capital can be in USD and may have a par value.. Different share classes are allowed.
  • Taxation: GBCs enjoy partial tax exemption on certain activities and a 15% tax rate on other income. They are exempt from capital gains and withholding taxes.
  • Licence fees: An initial processing fee and annual renewal fees apply to the FSC and Registrar of Companies.
  • Financial statements: Maintaining accurate financial records and filing annual returns with the FSC and MRA are mandatory.
  • Substance requirements: To maintain GBC status, companies must demonstrate sufficient substance in Mauritius, including having two qualified resident directors, maintaining bank accounts and keeping accounting records within the country.

Set up and manage a Mauritius GBC with Acclime

Mauritius GBCs offer a compelling combination of tax efficiency, operational flexibility and a stable business environment, making them an attractive option for international businesses. When combined with professional guidance and thorough due diligence, establishing a GBC can be a strategic move for expanding your global reach and optimising your tax structure. If you are considering exploring the potential of establishing a GBC in Mauritius, we recommend engaging with Acclime’s professional corporate services.