Business in Mauritius: establishment and relocation
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:
- Global Business License Category 1 (GBC1) – This company must be run by a management company, for example for GMG through the GMG Trust Ltd.
- Global Business License Category 2 (GBC2): This business must be set up by a registered agent.
Global Category 1 Business License (GBC1)
A GBC1 is a corporate vehicle used primarily to benefit from the network of double taxation avoidance agreements that Mauritius has concluded with a number of treaty countries. The GBC1 is resident for income tax purposes and, provided proper management and control is exercised in Mauritius, can benefit from the double tax treaty network. In addition, there is no withholding tax on dividends, interest and royalties paid to any person 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 choose to access the network of double taxation agreements
- The application for a license is processed within 2 weeks (provided all required documents have been submitted)
- Beneficial ownership details are disclosed to the FSC, but are not publicly available
- Limited life companies are allowed; Shielded cell companies are also allowed for certain global business activities (insurance and investment funds)
- Minimum of two resident directors
- Audited accounts to be submitted to the 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, marketing, licensing and franchising, real estate, financing, debt factoring, etc. In addition, a GBC1 can carry out global business activities, such as investment funds, captive insurance, international financial services, asset management, pension funds, and can be structured as a protected cell company.
GBC1 Key Features
Privacy: Specific provisions regarding confidentiality
Disclosure Requirements: Information filed with the Companies Registry and the FSC is not available to the public
beneficial owner: Required to be disclosed to authorities.
Shareholders: Revealed to authorities
Member Registration:Mandatory, maintained in Mauritius
Sole shareholder and permitted director: Yeah
Minimum number of Shares: One
Authorized share capital: Not required
Bearer shares: Not allowed
Corporate tax: Yes, subject to a 15% rate resulting in an effective tax rate of 3% after concessional foreign tax credits of up to 80% are applied.
Agreement to Avoid Double Taxation: Yes, you can access/benefit
Minimum number of Directors: One or two to qualify for treaty benefits
Corporate Directors: not allowed
Table meetings: To be held, chaired and drafted in Mauritius
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: Not required, but audited accounts must be submitted to the FSC and the Revenue Authority
Company Name: English or French or together with another language, eg Chinese
Constitution: English or French or together with another language, eg Chinese
Company name ending in BV, NV, SA, etc.: Permitted
Continuation from/to another jurisdiction or from/to a GBC2:Migration allowed
Global Category 2 Business License (GBC2)
A GBC2 is a flexible corporate vehicle that has features similar to those of the popular British Virgin Island Business Company. The GBC2 is exempt from corporate income tax and other taxes and duties in Mauritius. In addition, there is no withholding tax on dividends, interest and royalties paid to any person 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 Taxation Treaties concluded by Mauritius.
Key features:
- Low cost of incorporation and fairly fast incorporation period
- No minimum capital requirement
- Shares can be issued with or without value
- limited life allowed
- corporate director allowed
- No audit and annual reporting requirements
- 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 scheme as a professional officer; provision of services of registered office, representation or other services for companies; and the provision of trust services through businesses. Furthermore, a GBC2 is a flexible and suitable vehicle for holding and managing private assets such as property, trade, licences, consulting, etc.
Proposed changes to 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 Companies, such as:
- More information related to the beneficial ownership of Category 2 Global Business Companies;
- A more detailed business plan; and
- Presentation of financial summaries.
GBC2 Key Features
Privacy:Specific provisions regarding confidentiality
Disclosure Requirements:Information filed with the Register of Companies and the Financial Services Commission is not available to the public
beneficial owner: Not disclosed to authorities.
Shareholders: Revealed to authorities
Member Registration: Mandatory, maintained in Mauritius
Sole shareholder and permitted director: Yeah
Minimum number of Shares: One
Authorized share capital: Not required
Bearer shares: Not allowed
Nominee Shareholders: Permitted
Corporate tax: Exempt
Agreement to Avoid Double Taxation: Cannot access or benefit
Minimum number of Directors: One
Corporate Directors: Permissible
Table meetings: It can be celebrated anywhere
Secretary: Not required / Optional
Registered office: Mandatory, in Mauritius
Registered Agent: Mandatory, 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, eg Chinese
Constitution: English or French or together with another language, eg Chinese
HOW TO MOVE TO MAURITIUS
Relocation to another country has never been so easy. A work and residence permit is required to live and work in Mauritius, 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 – Occupational Permit (“OP” – which is valid for three years)
3 – how do you have Retired
2.1 – Occupancy 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 person. The following conditions apply:
investors
three year permit – The proposed commercial activity must generate an annual turnover of more than MUR 3 million.
Permanent – 10 years – An annual turnover for three consecutive years greater than 15 crores.
Professional
three year permit – The monthly base salary of a professional must exceed WALL 30,000.
Permanent – 10 years – The monthly base salary earned is greater than WALL 150,000 per month for a period of three consecutive years.
self employed
three year permit – The annual income from the proposed business activity must exceed 600,000 rupees.
Permanent – 10 years – An annual turnover of the company that exceeds 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, other than 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 – Ace to Retired
This permit allows an eligible retired non-citizen to reside in Mauritius, subject to the person committing to transfer at least USD 40,000 annually to Mauritius. This permit is valid for only three years, 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 made after five years.