Global Business Company in Mauritius

What is a Global Business Company?

A Global Business Company (GBC) in Mauritius is a company that has its main business operations principally carried on from within Mauritius, with persons who are resident outside of Mauritius.

A GBC is ideal to strategically manage and grow your business, making it an effective corporate vehicle 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 a company. The country is considered as an ideal platform for trading, investment and asset protection activities. A GBC can benefit from the network of Double Taxation Avoidance Agreements that Mauritius has signed with many countries in Africa, Europe and Asia. This makes it a cost-effective corporate medium for international tax planning.

A GBC incorporated in Mauritius can be a branch of a foreign company. Additionally, a foreign company may transfer its headquarters to Mauritius and continue its activities as a GBC. Conversely, a Mauritian GBC may transfer its headquarters to another jurisdiction.

Confidentiality protects Global Business Companies, as no person or body may disclose information on the GBC unless otherwise stated. Moreover, although the rate of corporate income tax in Mauritius stands at 15%, Global Business Companies can benefit from a partial exemption regime whereby 80% of the income streams will be debarred from tax, subject to meeting substance requirements. The GBC should therefore apply and hold a tax residence certificate, which is delivered by the Mauritius Revenue Authority.

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.

Learn more:

• Setting up a company in Mauritius
• Authorised Company in Mauritius
• Relocate to Mauritius: the ideal place to live and do business

The leading jurisdiction for doing business in Africa

Mauritius features among the best offshore jurisdiction to conduct business in Africa, ranked 1^st 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, about 15,000 Global Business Companies are registered in Mauritius. Indeed, the country’s conducive business environment 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.

Access to international markets and business opportunities

For businesses seeking access to international trade, Mauritius provides an ideal location for expanding their operations. The country’s strategic position at the heart of the Indian Ocean – at the confluence between Africa, Asia, and the Middle East – provide businesses with many opportunities for growth.

In addition to the Double Taxation Agreements Mauritius has with over 40 double taxation agreements, which allows investors to benefit from reduced withholding taxes on dividends and interest payments, the country has strategic trade agreements with a number of countries, making in a trading hub for the region, which include:

• the African Continental Free Trade Area (AfCFTA),
• the Southern African Development Community (SADC),
• the Common Market for Eastern and Southern Africa (COMESA),
• Free Trade Agreement with China,
• Free Trade Agreement with India (CECPA), and
• Free Trade Agreement with Pakistan.

What type of activities can Global Business Companies in Mauritius engage in?

Companies holding a Global Business Licence can engage in qualified global business activities, in accordance with their licence.

A GBC can be used for providing financial services including:

• Investment dealer;
• Investment Adviser;
• Funds Management;
• Insurance business such as Insurance Broker;
• Payment Services provider;
• Asset management;
• Credit finance;
• Custodian services;
• Distribution of financial products;
• Factoring;
• Leasing;
• 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 types of business activities:

• International Trade;
• 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 Mauritius GBC?

Global Business Companies need to be efficiently managed and controlled from Mauritius and meet the substance requirements of the Financial Services Commission. It is therefore considered as tax resident in Mauritius for tax purposes. As stated above, GBCs propose to conduct business outside Mauritius, with people that are non-resident in Mauritius.

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 in Mauritius;
• Maintain its principal 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 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 your Mauritius Global Business Corporation

Disclaimer

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.