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Doing business in Mauritius has never been so exciting and easy, and with the right tools and support, you can be well positioned to succeed.
Global business
Global Business Companies (GBC), a unique concept introduced by the Mauritian government in 1992 that offers investors an efficient vehicle for tax planning and structuring. GBCs are governed by the Companies Act 2001 and the Financial Services Act 2007 and are regulated by the Mauritius Financial Services Commission (FSC).
There are two types of GBC, depending on the license category:
- Category 1 Global Business License (GBC1) – This company must be managed by a management company, for example for GMG through GMG Trust Ltd.
- Category 2 Global Business License (GBC2) – This company must be created by a registered agent.
Category 1 Global Business License (GBC1)
A GBC1 is a corporate vehicle that is primarily used to benefit from the network of double taxation agreements that Mauritius has entered into with various treaty countries. GBC1 is resident for income tax purposes and, provided that management and control are properly exercised in Mauritius, it can benefit from the network of double tax treaties. Also, there is no withholding tax on dividends, interest and royalties paid to anyone and there is no capital gains tax. The GBC1 is a very useful corporate vehicle for international tax planning and structuring. Some key features:
- Residents may qualify to access the double tax treaty network
- The license application is processed in 2 weeks (provided all required documents have been submitted)
- The beneficial ownership data is disclosed to the FSC, but is not available to the public.
- Limited life companies are allowed; Protected cell companies are also authorized for certain global business activities (insurance and investment funds)
- Minimum of two resident directors
- Audited accounts to be filed with FSC and the Mauritius Revenue Authority
- Potential users of a GBC1
A GBC1 can be used for a wide range of business activities, including but not limited to investment holding, estate planning, negotiation, licensing and franchising, property ownership, financing, debt factoring, etc. In addition, a GBC1 can conduct global business activities such as mutual funds, captive insurance, international financial services, asset management, pension funds and can be structured as a protected cell company.
Key features of the GBC1
Confidentiality: Specific provisions on confidentiality
Disclosure requirements: Information submitted to the Registrar of Companies and the FSC is not available to the public.
Beneficiary property: Required to be disclosed to authorities.
Shareholders: Disclosed to authorities
Member registration:Required, kept in Mauritius
Sole shareholder and director allowed: Yes
Minimum no. of actions: One
Authorized share capital: Not required
Bearer shares: Not allowed
Corporate tax: Yes, subject to a 15% rate resulting in a 3% effective tax rate after foreign concessional tax credits of up to 80% are applied.
Agreement to avoid double taxation: Yes, you can access / benefit
Minimum no. of Directors: One or two to qualify for treaty benefits
Corporate directors: Not allowed
Table meetings: It must be held, presided over and recorded in the Mauritius minutes.
Secretary: Required
Registered office: Must be located in Mauritius
Annual meeting: Required, can be done by written resolution for private companies
Audited accounts: Required
Annual return: It is not mandatory, but audited accounts must be submitted to the FSC and the Revenue Authority.
Company Name: English or French or together with another language, for example Chinese
Constitution: English or French or together with another language, for example Chinese
Name of the company ending BV, NV, SA, etc. Permitted
Continuation from / to another jurisdiction or from / to a GBC2:Allowed migration
Category 2 Global Business License (GBC2)
A GBC2 is a flexible corporate vehicle that has characteristics similar to those of the popular British Virgin Island Business Company. GBC2 is exempt from corporate income tax and other taxes and duties in Mauritius. Additionally, there is no withholding tax on dividends, interest and royalties paid to anyone and there is no capital gains tax. A GBC2 is required to have a registered office and registered agent in Mauritius at all times. A GBC2 cannot access the network of double tax treaties entered into by Mauritius.
Key features:
- Low incorporation cost and fairly quick incorporation period
- No minimum capital requirement
- Shares can be issued with or without par value
- A limited life is allowed
- Allowable Corporate Director
- No annual declaration and audit requirement
- No access to double tax treaties
Potential uses
A GBC2 can generally be used for a wide range of business activities other than banking; financial services; owning or dealing with a collective investment fund or plan as a professional official; provision of registered office services, nominees or other services for corporations; and provision of fiduciary administration services through businesses. Furthermore, a GBC2 is a flexible and suitable vehicle for maintaining and managing private assets such as property, trading, licensing, consulting, etc.
Proposed changes for GBC2 in the 2009-2010 budget
Following the 2009-2010 Budget, certain changes have been proposed regarding the disclosure requirements related to Category 2 Global Business Enterprises, such as:
- Learn more about the beneficial owners of Category 2 global business enterprises;
- A more detailed business plan; and
- Financial summary file.
Key features of the GBC2
Confidentiality:Specific provisions on confidentiality
Disclosure requirements:Information filed with the Registrar of Companies and the Financial Services Commission is not available to the public.
Beneficiary property: Not disclosed to authorities
Shareholders: Disclosed to Authorities
Member registration: Required, kept in Mauritius
Sole shareholder and director allowed: Yes
Minimum no. of actions: One
Authorized share capital: Not required
Bearer shares: Not allowed
Nominal shareholders: Permitted
Corporate tax: Exempt
Agreement to avoid double taxation: Can’t access or benefit
Minimum no. of Directors: One
Corporate directors: Permissible
Table meetings: Can be carried out anywhere
Secretary: Not required / Optional
Registered office: Required, in Mauritius
Registered Agent: Required, in Mauritius
Annual meeting: Required, can be done by written resolution for private companies
Audited accounts:Not required
Annual return: Not required
Company Name:English or French or together with another language, for example Chinese
Constitution: English or French or together with another language, for example Chinese
HOW TO RELOCATE TO MAURICIO
Relocation to another country has never been easier. Living and working in Mauritius requires a work and residence permit, and there are currently three ways in which a person (and their dependents) can obtain a permit:
1 – IRS (Integrated Resort Scheme) – this results in an immediate residence permit. (See more details below)
2 – Work permit (“OP” – which is valid for three years)
3 – As a Retired
2.1 – Work permit
An occupational work permit allows a foreigner to reside and work in Mauritius and can be obtained as an investor, professional or self-employed. The following conditions apply:
Investor
Three-year permit – The proposed business activity must generate an annual turnover of more than 3 million MUR.
Permanent – 10 years – An annual turnover for three consecutive years greater than 15 million MUR.
Professional
Three-year permit – The basic monthly salary of a professional must exceed WALL 30,000.
Permanent – 10 years – The basic monthly salary earned exceeds the WALL 150,000 per month for the period of three consecutive years.
Free-lancers
Three-year permit – Annual income from the proposed business activity must exceed 600,000 MUR.
Permanent – 10 years – An annual turnover of the business that exceeded MUR3 million during the first three years.
Having permanent residence (valid for ten years) is beneficial as it allows the person to acquire property on the island, in addition to through IRS schemes.
As soon as the required documentation is submitted, occupational permits (which are valid for three years) are issued within three days.
2.2 – As a retiree
This permit allows an eligible retired non-citizen to reside in Mauritius, subject to that person agreeing to transfer at least USD 40,000 per year to Mauritius. This permit is valid for three years only, but this person could also apply for a permanent permit (valid for 10 years) if the aforementioned funds have been transferred regularly.
2.3 – Citizenship
Obtaining a permanent residence permit does not automatically result in citizenship. Only the Prime Minister can grant citizenship and the application can be submitted after five years.