Global Business Company in Mauritius – What you need to know
What is a Global Business Company?
A Global Business Company 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 Global Business Company (GBC) is ideal to strategically manage and grow your business, while being an effective structure for international tax planning.
The advantages of setting up a Global Business Company in Mauritius
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.
If the GBC holds a Tax Certificate, it can benefit from the network of Double Taxation Agreements, which makes it a cost-effective corporate medium for international tax planning. Mauritius has signed Double Taxation Agreements with many countries in Africa, Europe and Asia.
- Relocate to Mauritius: the ideal place to live and do business
- Authorised Company in Mauritius
- Private Equity: Mauritius, the ideal platform for Africa-focused fund managers
Confidentiality protects Global Business Companies as no person or body may disclose information on the GBC unless otherwise stated. Moreover, although the rate of tax for Global Business Companies stands at 15%, it can benefit from a partial exemption regime whereby 80% of the income streams will be debarred from tax, subject to meeting substance requirements.
The revenue streams that can benefit from the 80% partial exemption regime are:
- Foreign source dividend, provided that it has not been allowed as deduction in source country;
- Income derived by a Collective Investment Scheme, Close End Funds, CIS manager, CIS administrator, Investment Adviser or Asset Manager;
- Income derived by companies engaged in ship and aircraft leasing;
- Income derived by a company from reinsurance and reinsurance brokering activities;
- Income derived by a company from leasing and provision of international fibre capacity;
- Income derived by a company from the sale, financing arrangement, asset management of aircraft and its spare parts and aviation advisory services related thereto;
- Interest derived by a person from money lent through a Peer-to-Peer Lending platform;
- Profit gained to a permanent establishment of a resident company abroad; and
- Interest derived by a company other than:
– a bank;
– a non-bank deposit taking institution;
– a money changer;
– a foreign exchange dealer
– an insurance company
– a leasing company; or
– a company providing factoring, hire purchase facilities, or credit sales facilities.
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. To date, over 12,000 Global Business Companies are registered in Mauritius. 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
- Safe and secure environment to work, live and do business.
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.
What type of activities can Global Business Companies in Mauritius engage in?
According to the Financial Services Act of Mauritius, 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.
What are the requirements to set up a Global Business Company in Mauritius?
Global Business Companies need to be efficiently managed and controlled in Mauritius and meet the Financial Services Commission’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.
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 companyin Mauritius. 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.
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.
Sunibel Corporate Services Ltd accepts no liability for any direct or indirect damage resulting from the use and reliance on the information published in this article.
For more information, please see our terms and conditions.
- How can global corporate structuring benefit your business when going global?
- The reasons why you should choose Mauritius for business
- The general mechanisms behind a Private Equity Fund
- Mauritius Budget brief 2019-2020: The transformative journey continues towards “embracing a brighter future”
- Mauritius out of EU grey list, compliant with tax good governance principles