A Global Business Company (GBC) in Mauritius is structured to conduct business primarily outside of Mauritius while being controlled and managed from within Mauritius. This setup benefits from favourable tax regulations, making it a robust instrument for international tax planning.
Key Advantages of Establishing a GBC in Mauritius
Business-Friendly Environment
Mauritius is known as a highly ranked jurisdiction in the ease of business for its supportive business environment. Establishing a GBC in Mauritius is efficient, with no minimum capital requirements. The country’s political stability, sound legal framework, and skilled labour force make it an attractive location for international enterprises.
Strategic Advantages
- Favourable Tax Regime
Mauritius’s tax regime is highly attractive for international businesses. GBCs benefit from a standard corporate tax rate of 15%, which can be reduced further through an 80% partial exemption on specific income streams. This effectively lowers the tax rate to 3%, provided certain substance requirements are met. The comprehensive network of Double Taxation Avoidance Agreements (DTAAs) further enhances this advantage by preventing double taxation and reducing withholding taxes. - Simplified Setup Process:
Establishing a GBC in Mauritius involves minimal bureaucratic hurdles. There is no minimum capital requirement as entry barriers for businesses. The straightforward process and supportive regulatory framework enable swift incorporation if you are dealing with the right professionals such as Blue Azurite. - Confidentiality:
The legal framework in Mauritius ensures high levels of confidentiality for GBCs. Information about these companies is protected from unauthorised disclosure, which is critical for businesses seeking privacy in their international operations. - Flexibility and Adaptability:
GBCs in Mauritius offer significant flexibility. Foreign companies can establish branches or transfer their headquarters to Mauritius seamlessly. Conversely, Mauritian GBCs can relocate to other jurisdictions if needed. This adaptability is crucial for businesses that need to respond to changing global market conditions.
Compliance and Substance Requirements
To benefit from the tax incentives, GBCs must demonstrate economic presence in Mauritius. This includes having a principal place of management in Mauritius, engaging in core income-generating activities (CIGA) locally, and being managed and controlled from within the country. These substance requirements are designed to prevent the establishment of shelf companies and ensure genuine economic activity in Mauritius.
Key compliance requirements include:
- Resident Directors: At least two directors must be residents of Mauritius.
- Management Company: The GBC must be administered by Blue Azurite, a management company licensed by the FSC of Mauritius.
- Banking and Accounting: The principal bank account and accounting records must be maintained in Mauritius.
- Audited Financial Statements: Annual financial statements must be prepared and audited within Mauritius.
Economic Impact
The streamlined setup process, combined with significant tax advantages and confidentiality protections, makes Mauritius an attractive hub for international business operations.
Trade and Investment Platform
Mauritius serves as a strategic platform for international trade and investment, particularly for businesses targeting African, Asian, and Middle Eastern markets. The country's location at the crossroads of these regions provides GBCs with unparalleled access to emerging markets and trade opportunities.
High-Value Financial Services
GBCs are integral to the financial services sector in Mauritius. They engage in a wide range of activities, including investment management, insurance, payment services, and asset management. This diversification strengthens Mauritius's position as an international financial centre.
Enhanced Business Opportunities
The strategic trade agreements Mauritius has with various countries, such as the African Continental Free Trade Area (AfCFTA) and the Southern African Development Community (SADC), further enhance business opportunities for GBCs. These agreements facilitate market access and reduce trade barriers.
FAQ
Find Out Answers about Global Business Companies (GBCs) Here
A Global Business Company (GBC) is a legal entity incorporated in Mauritius, primarily engaged in business activities outside of Mauritius. It benefits from favourable tax treatment and is regulated to ensure compliance with international standards.
Businesses should consider setting up a GBC in Mauritius due to its favourable tax regime, political stability, ease of incorporation, strategic location, and robust network of Double Taxation Avoidance Agreements (DTAAs) which facilitate international trade and investment.
A GBC in Mauritius can benefit from an effective tax rate as low as 3% on qualifying income streams, thanks to an 80% partial exemption on specific income. Additionally, Mauritius has DTAAs with numerous countries, minimising the risk of double taxation and reducing withholding tax rates on international income.
To qualify for tax benefits, a GBC must demonstrate economic substance in Mauritius. This includes being managed and controlled from Mauritius, having 2 resident directors, conducting core income-generating activities in Mauritius, and maintaining a physical presence with adequate staff and office space.
Setting up a GBC involves several steps: incorporating the company under the Companies Act 2011, obtaining a Global Business Licence (GBL) from the FSC, and setting up a local bank account. It is mandatory to appoint a management company such as Blue Azurite to streamline this process and file the application.
Mauritius's DTAAs with over 40 countries help reduce or eliminate double taxation on income earned in these countries. This allows a GBC to benefit from lower withholding tax rates on dividends, interest, and royalties, enhancing the company's tax efficiency and profitability.
To obtain a Global Business Licence, an applicant must appoint a management company such as Blue Azurite, to submit its application to the FSC. The application should demonstrate compliance with all regulatory requirements, including management and control from Mauritius and sufficient economic substance.
Blue Azurite offers comprehensive services for setting up and managing GBCs, Authorised Companies, Trusts and Foundations in Mauritius. Their services include incorporation assistance, compliance management, tax advisory, providing professional offices and office address, and acting as company secretary.
