Mauritius, a strategic hub for business looking to expand in Africa and Asia, offers the Global Headquarters Administration (GHA) licence through its regulator, the Financial Services Commission (FSC). This licence facilitates multinational companies to centralise their regional administrative, procurement, and accounting functions within the Mauritius International Financial Centre (IFC).
Key Benefits of Holding a GHA Licence
- Tax Benefits: Companies holding a GHA licence enjoy significant tax advantages, including an eight-year exemption from corporate income tax. Additionally, Mauritius imposes no capital gains tax, nor withholding taxes on dividends and interest, making it an attractive destination for corporate headquarters.
- Strategic Positioning: Mauritius is strategically located to facilitate investments into Africa and Asia. The country offers a stable political and economic environment, backed by a robust legal framework and an extensive network of double tax avoidance agreements (DTAAs).
- Business-Friendly Environment: Mauritius is highly ranked in the World Bank’s Ease of Doing Business Index. The island nation provides a bilingual workforce proficient in both English and French, reliable banking services, and access to professional services at competitive costs.
Eligibility Criteria and Requirements
To qualify for a GHA licence, a company must fulfil several criteria:
- `service Provision: The company must offer at least three of the following services to a minimum of three affiliated corporations:
- Administrative and general management services
- Business planning and development
- Economic and investment research
- Coordination of corporate headquarters activities
- Economic Substance: The company must demonstrate substantial economic activities in Mauritius by:
- Maintaining a physical office on the island.
- Employing at least 10 full-time professionals, with a minimum of two in senior management roles.
- Incurring an annual operational expenditure of at least MUR 5 million.
Application Process for the GHA Licence
- Company Incorporation: The initial step involves incorporating the company in Mauritius. This is typically facilitated by a licensed management company such as Blue Azurite, who assist in setting up and registering the business entity.
- Licence Application: The application for the GHA licence is submitted to the FSC, accompanied by a detailed business plan, organisational structure, and descriptions of the specific services the company will provide.
- Regulatory Compliance: Post-application, the company must adhere to the FSC’s regulatory requirements, which include regular reporting and maintaining operational standards to retain the tax incentives and other benefits associated with the GHA licence.
When to Apply for a GHA Licence
Companies should consider applying for a GHA licence under the following circumstances:
- Regional Management: Multinational firms aiming to centralise their administrative functions for managing operations across Africa and Asia will find the GHA licence advantageous. Mauritius offers a strategic base with favourable business conditions and tax incentives.
- Tax Optimisation: The tax incentives, including the corporate tax holiday and absence of withholding taxes, are particularly beneficial for companies with significant intra-group transactions and investments.
- Compliance and Governance: For companies that prioritise jurisdictions with strong governance and compliance frameworks, Mauritius offers a regulated environment aligned with international standards, ensuring high levels of corporate governance.
In conclusion, the GHA licence issued by the FSC of Mauritius offers a range of benefits, including tax incentives, strategic location, and a robust regulatory framework. These advantages make it an attractive option for multinational companies seeking to establish their regional headquarters in Mauritius, facilitating efficient management and expansion across Africa and Asia.
