Global Business Company in Mauritius – What you need to know
Mauritius is one of the preferred jurisdictions for setting up an offshore company. The country is considered as an ideal platform for trading, investment and asset protection activities, with the added advantages of international tax planning. In this article, we guide you through the features of the Global Business Company structure.
What is a Global Business Company?
There were previously two types of Global Business companies, namely the Category 1 Global Business Company (GBC1) and the Category 2 Global Business Company (GBC2). Since 1st January 2019, the GBC1 has become the Global Business Company (GBC). In addition, while the Financial Services Commission (FSC) of Mauritius no longer issues the GBC2, we have seen the introduction of a new type of entity, the Authorised Company.
A GBC is a company involved in qualified activities and which main business operations are carried principally from Mauritius, but with persons who are resident outside of Mauritius. A GBC also benefits from the network of Double Taxation Agreements (DTAs), which makes it a cost-effective corporate medium for international tax planning. All companies seeking to benefit from this status are granted licenses on a case to case basis by the regulatory authorities in Mauritius. This procedure demands the submission of a detailed business plan and disclosure of beneficial ownership.
What are the requirements to set up a Global Business Company in Mauritius?
A GBC needs to be efficiently managed and controlled in Mauritius and meet the FSC’s substance requirements. The GBC must adhere to the following conditions:
- Have a minimum of two directors, resident in Mauritius and of satisfactory calibre to exercise independence of mind and impartial judgement;
- Be administered by a Management Company;
- Maintain its main bank account in Mauritius at all times;
- Maintain and keep, at all times, its accounting records at its registered office in Mauritius;
- Prepare its statutory financial statements and provide financial statements to be audited in Mauritius;
- Provide for meetings of directors to include a minimum of 2 directors from Mauritius;
- Authorised as a collective investment scheme, close end fund or external pension scheme, is administered from Mauritius;
- Have office premises should be in Mauritius;
- Employ on a full time basis at technical level a minimum of 1 resident person in Mauritius;
- Has a clause whereby all disputes shall be resolved by way of arbitration in Mauritius;
- Holds or will hold assets within the next 12 months;
- Company’s shares to be listed on a securities exchange licensed by the Commission; and
- Anticipated to generate yearly expenses of a significant degree.
What type of activities can a Global Business Company engage in?
A GBC can be used for providing financial services including:
- Investment dealer;
- Investment Adviser;
- Funds Management;
- Insurance Broker;
- Payment Services provider;
- Asset management;
- Credit finance;
- Custodian services;
- Distribution of financial products;
- Occupational pension scheme;
- Pension fund administrators;
- Pension scheme management;
- Retirement benefits scheme;
- Superannuation funds;
- Treasury management; and
- Registrar and transfer agent.
A GBC is also a suitable structure for the following activities:
- Aircraft Financing and Leasing;
- Consultancy Services;
- Information and Communication Technology Services;
- Licensing and Franchising;
- Logistics and/or Marketing;
- Operational Headquarters;
- Pension Funds; and
- Shipping and Ship Management.
The advantages of setting up a Global Business Company in Mauritius
The rate of tax for GBC’s are harmonised at 15%. However, it can benefit from a partial exemption regime whereby 80% of the income streams listed below will be debarred from tax, subject to meeting substance requirements:
- Interest income and royalties;
- Foreign Source Dividend;
- Profit gained to a permanent establishment of a resident company abroad;
- Interest resulting from money lent through peer-to-peer lending platform;
- Income derived by a Collective Investment Scheme (CIS);
- Income generated by a corporation operating in aircraft leasing and ship;
- Income derived by a company from reinsurance and reinsurance brokering;
- Income resulting by a company from leasing and provision of international fibre; and
- Income derived by a company from the sale of aircraft spare parts and linked advisory services.
Mauritius: the leading jurisdiction for doing business in Africa
Mauritius features among the best offshore jurisdiction to conduct business in Africa, ranked 1st in the ease of doing business by the World Bank. Indeed, setting up a business is quick and easy, taking on average 3 days. Businesses can be 100% foreign owned, managed and controlled, subject to abiding to the laws and regulations applicable to all. In 2019, 1,232 new Global Business Licences were issued by the FSC, and Mauritius welcomed 89 new Global Funds. As at January 2020, 12,493 GBCs were registered.
Mauritius is the 4th largest destination for the Foreign Direct Investment in the Small Island Developing States (SIDS) according to the World Investment Report 2018. The island forms part of many International Organisations as well such as the Financial Action Task Force (FATF), The South African Development Community (SADC) among others.
The country offers a plethora of investment opportunities in many sectors such as financial services, Fintech and E-commerce to name but a few. Many High-Net-Worth Individuals relocate to Mauritius to work or reside by making use of the many advantages the jurisdiction offers from wealth management, conducting business and high standard of living. Sunibel Corporate Services assist you with your relocation to Mauritius as we take care of the application process for permits (investor, professional and retirement), real estate consulting, travelling support, administrative assistance and private services.
Many South Africans also prefer Mauritius as statistics from years prior (AfrAsia Bank Africa Wealth Report 2018) indicates an emigration of around 280 South African millionaires to the island. Indeed, Mauritius puts forward :
- Stable political background;
- Strategic Time Zone (GMT +4);
- Bilingual Skilled Workforce (English and French);
- Anglophone and Francophone high standard private schools;
- Modern Health Care Services;
- No Exchange Controls;
- International Arbitration Centre;
- Transparent jurisdiction; and
- Lax environment to relax among others.
How Sunibel can service you as a management company
We can assist you in meeting your objectives strategically with the best alternative outcome. We provide a hassle free approach for you to set up your company through the FSC. We also advice you in taking the best decision. We leverage on our international and local market expertise to offer you a global solution for all your needs. Do not hesitate to contact us now and we will be delighted to assist.
This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.
Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.
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