Business in Mauritius – Set up 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 for success.
Global business
Global Business Companies (GBCs), a unique concept introduced by the Government of Mauritius in 1992 that offers investors an efficient means of tax structuring and planning. GBCs are governed by the Companies Act 2001 and the Financial Services Act 2007 and are regulated by the Financial Services Commission of Mauritius (FSC).
There are two types of GBC, depending on the license category:
- Global Business License Category 1 (GBC1) – this company must be administered by a management company, eg for GMG through GMG Trust Ltd.
- Global Business License Category 2 (GBC2) – this company must be established by a registered agent.
Global Business License Category 1 (GBC1)
GBC1 is a corporate vehicle used primarily to benefit from the network of double taxation agreements that Mauritius has entered into with a number of treaty countries. GBC1 is resident for income tax purposes and, provided management and control are properly exercised in Mauritius, can benefit from the network of double taxation treaties. In addition, there is no withholding tax on dividends, interest and royalties paid to any person and no capital gains tax. GBC1 is a very useful corporate tool for international tax planning and structuring. Some key features:
- Domestic persons may qualify for access to the double taxation treaty network
- The license application is processed within 2 weeks (provided all necessary documents are submitted)
- Beneficial owner details are disclosed to the FSC but not publicly available
- Limited life companies are permitted; Secured cell companies are also permitted for certain global business activities (insurance and investment funds)
- Minimum of two resident directors
- Audited accounts are required to be filed with the FSC and the Mauritius Revenue Authority
- Potential users of GBC1
GBC1 can be used for a wide range of business activities including but not limited to investment holding, estate planning, trading, licensing and franchising, property ownership, financing, debt factoring, etc. In addition, GBC1 is allowed to undertake global business activities, such as investment funds, underwriting, international financial services, asset management, pension funds, and may be structured as a protected cell company.
Main features of GBC1
Privacy: Specific Privacy Provisions
Disclosure Requirements: Information filed with the Companies Registry and the FSC is not available to the public
Beneficial owner: It is required to be disclosed to the authorities
Shareholders: Revealed to the authorities
Register of Members:Mandatory, maintained in Mauritius
A single shareholder and director is allowed: Yes
Minimum no. of shares: one
Authorized share capital: Not necessarily
Bearer Shares: It is not allowed
Income tax: Yes, at a rate of 15%, resulting in an effective tax rate of 3% after applying preferential foreign tax credits of up to 80%.
Double Taxation Agreement: Yes, there is access/use
Minimum no. of the directors: One or two to qualify for contract benefits
Corporate Directors: It is not permissible
Board meetings: It must be held, presided over and recorded in Mauritius
Secretary: Mandatory
Registered office: Must be located in Mauritius
Annual Meeting: Mandatory, maybe with a written resolution for private companies
Audited accounts: Mandatory
Annual Return: Not required, but audited returns must be filed with the FSC and the Revenue Office
Company name: English or French or together with another language such as Chinese
constitution: English or French or together with another language such as Chinese
Company name ending in BV, NV, SA, etc.: Allowed
Proceeding from/to another jurisdiction or from/to GBC2:Migration is permissible
Global Business License Category 2 (GBC2)
The GBC2 is a flexible corporate vehicle that has similar features to the popular BVI business company. GBC2 is exempt from corporate income tax and other taxes and charges in Mauritius. In addition, taxes are not withheld on dividends, interest and royalties paid to any person and there is no capital gains tax. GBC2 is required at all times to have a registered office and a registered agent in Mauritius. GBC2 does not have access to the network of double taxation agreements concluded by Mauritius.
Main characteristics:
- Low incorporation costs and relatively quick incorporation period
- There is no minimum capital requirement
- Shares may be issued with or without par value
- Limited life allowed
- Corporate director admissible
- No audit and annual reporting required
- No access to double taxation treaties
Potential uses
GBC2 can generally be used for a wide range of business activities other than banking; financial services; owning or otherwise dealing with a collective investment fund or scheme as a professional employee; Providing domicile, nomination services or other services for corporations; and providing custodial services through business. In addition, GBC2 is a flexible and convenient means of holding 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, some changes were proposed to the disclosure requirements relating to Category 2 global business companies, such as:
- More information related to beneficial owners of Category 2 global business companies;
- A more detailed business plan; and
- Filing of financial statements.
Main features of GBC2
Privacy:Specific Privacy Provisions
Disclosure Requirements:Information filed with the Companies Registry and the Financial Services Commission is not available to the public
Beneficial owner: Not reported to authorities
Shareholders: Revealed to authorities
Register of Members: Mandatory, maintained in Mauritius
A single shareholder and director is allowed: Yes
Minimum no. of shares: one
Authorized share capital: Not necessarily
Bearer Shares: It is not allowed
Nominee shareholders: Allowed
Income tax: Released
Double Taxation Agreement: No access or benefit
Minimum no. of the directors: one
Corporate Directors: Acceptable
Board meetings: It can be held anywhere
Secretary: Optional / Optional
Registered office: Mandatory, in Mauritius
Registered Agent: Mandatory, in Mauritius
Annual Meeting: Mandatory, maybe with a written resolution for private companies
Audited accounts:Not necessarily
Annual Return: Not necessarily
Company name:English or French or together with another language such as Chinese
constitution: English or French or together with another language such as Chinese
HOW TO MOVE TO MAURITIUS
Moving to another country has never been easier. A work and residence permit is required to live and work in Mauritius and there are currently three ways in which a person (and his/her dependents) can obtain a permit:
1 – IRS (Integrated Resort Scheme) – this leads to an immediate residence permit. (See more details below)
2 – Work permit (“OP” – which is valid for three years)
3 – Like pensioner
2.1 – Work permit
A professional 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:
Investor
Three-year Permian – The proposed business activity must generate an annual turnover of more than MUR 3 million.
Permanent – 10 years – exceeding annual turnover for three consecutive years MUR 15 million.
Professional
Three-year permit – The basic monthly salary of a professional must exceed 30,000 MUR.
Permanent – 10 years – The basic monthly salary received is over 150,000 MUR per month for a period of three consecutive years.
Self insured
Three-year permit – The annual income from the proposed business activity must exceed 600,000 MUR.
Permanent – 10 years – Annual business turnover that exceeds MUR 3 million for the first three years.
Having permanent residency (valid for ten years) is beneficial as it allows the individual to acquire property on the island, other than the IRS schemes.
Immediately after submitting the necessary documents, work permits (which are valid for three years) are issued within three days.
2.2 – As a pensioner
This permit allows an eligible retired non-citizen to reside in Mauritius, provided that person undertakes to remit at least USD 40,000 per year to Mauritius. This permit is only valid for three years, but this person can also apply for a permanent permit (valid for 10 years) if the above funds have been remitted regularly.
2.3 – Citizenship
Obtaining a permanent residence permit does not automatically lead to citizenship. Only the Prime Minister can grant citizenship and the application can be submitted after five years.
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