Formation of a category 1 global business company in mauritius, including a corporate bank account. the main difference lies in the area of taxation. registered office, local agent and secretary. every gbc 1 must have a registered agent and a registered office in mauritius. in recent years the island has developed into a quality jurisdiction for international financial services. the business of an gbc1 company must be conducted in foreign currency other than for day- to- day transactions; and gbc1 companies must not do business in mauritius, other than take professional advice, employ local labour and rent property. mauritius has a modern and flexible legislative framework for the operation of offshore business. a gbc1 may be locally incorporated or may be registered as a branch of a foreign company. a gbc1 company ( gbl as of january ) is tax resident in mauritius and may apply for a tax residence certificate ( trc) from the director general of the mra should this be required by the tax authorities in the jurisdiction in which the company is conducting its business. fast, easy & highest confidential via secured systems. investors may benefit from an extensive network of dtts.
the gbc1, or global business category 1, is designed to create a company that is treated as a tax resident in mauritius. gbc1s shall continue to be governed under the provisions of the financial services act ( “ fsa” ) depending on the dates on which they were licenced by the fsc. a gbc1 has access to and can benefit from mauritius’ network of double taxation avoidance treaties, while a gbc2 ( also known as a international company) cannot. its' company law is modelled the english law system. existing gbc1 companies, where licenses were issued on or before 16 october, will be grandfathered until 30 june. correctly structured and managed mauritius gbc i companies may access mauritius’ network of 28 tax treaties.
in accordance with mauritius financial services act section 71, each mauritius gbc1 company must appoint a company secretary, who may be a natural person or a body corporate, but the company secretary must be resident in mauritius. detailed description of taxes on corporate income in mauritius as of 1 january, gbc1 companies will be renamed as global business licence ( gbl) and will be liable to tax at the rate of 15%. if correctly structured a mauritius company is an efficient, low- cost, legally tax efficient entity in which to conduct business. a gbc1 ( old offshore company) pays corporate income tax at 15%. offshore company mauritius: mauritius companies available to carry global business activities from within mauritius are companies holding a category 1 global business license ( gbc1), and offshore companies holding a category 2 global business license ( gbc2). since 1 st january, the gbc1 has become the global business company ( gbc). mauritius is located south west of the indian ocean. a gbc1 company is not permitted to have a corporate director.
a gbc1 must appoint a secretary. no capital gains or withholding taxes levied. mauritius ( global business licence gbc 1) offshore companies and their tax liability. mauritius company formation cost | cost of setting up a gbc1, ac company.
in order to qualify for treaty access, the company then must name two local directors. it is liable to pay tax at the rate of 15% on all its income subject to the provisions of the dtas. click here to learn more about the authorised company structure. gbc1 companies can utilize the unilateral foreign tax credit which stands at 80% of the mauritian tax rate, which leaves a residual liability of 20% of the mauritian rate which is equal to 3%.
gbc1 a global business category 1 company ( gbc 1) is a tax resident company in mauritius and enjoys benefits under the extensive double taxation avoidance treaties ( dtas) network of mauritius. it is therefore liable to tax at a flat rate of 15% on chargeable income, but there is a deemed foreign tax credit ( dftc) of 80%, resulting in a maximum effective tax rate of 3%. category 1 global business companies ( gbc1) a gbc1 is a body corporate registered in mauritius and which is licensed by the financial services commission as holding a category 1 global business licence to conduct business outside mauritius. a gbc1 may conduct business with residents of mauritius, and provide financial and insurance services upon obtaining the relevant license ( issued by the mauritius financial services commission). it is also mandatory for the holder of a gbl to be managed and controlled from mauritius and administered by a company, such as sovereign, which holds a management company licence from the fsc. overview of mauritius authorised companies type ( ac' s) - 0% tax and a tax id number. forming a company in mauritius is a simple, straightforward process regardless of whether you choose a gbc1 company ( a resident company) or a gbc2 ( an offshore company). only a management company shall act as the registered agent of a company holding a gbc1 company mauritius gbc 2 licence.
a category 2 global business company ( gbc 2) is required to have at all times a registered agent in mauritius. formation of a category 1 global business company in mauritius, including a corporate bank account. companies that hold a mauritius gbc- 2 are not resident for the purpose of tax and have no right to use mauritius’ tax treaty network as a result. further, the category 1 global business license ( gbc1) companies have been renamed as global business license ( gbl) company. the deemed foreign tax credit regime previously available to gbc1 is now abolished. a gbc1 is a company that is resident in mauritius for tax purposes. please invest 2 minutes of your time to watch the offshore company mauritius video below. a resident corporation held or controlled by a person who is not a citizen of mauritius, that is conducting or proposing to conduct business principally outside mauritius, will need to apply for a gbl. mauritius gbc i companies are resident in mauritius and consequently subject to tax. the registered agent must be qualified to act as such, such as a lawyer, licensed management company, etc.
a mauritius gbc- 2, analogous to international business companies ( ibc’ s), is primarily used for trade and investment and has a well established offshore company formation industry. update: gbc1 and gbc2 companies have been abolished. a mauritius gbc 1 local company must have at least one director who must be a local resident and natural citizen. company secretary a qualified resident company secretary must be appointed. no limit on the carrying forward of tax losses.
what is a mauritius global business company 1 ( gbc1)? mauritius offers two types of offshore companies to international investors, the global business licence category 1 ( gbl1) and global business licence category 2 ( gbl2). mauritius hold assets > 100k in mauritius additional requirements basic requirements • foreign investor can use 3 types of companies: • global business company category 1 ( gbc1) • global business company category 2 ( gbc2) • domestic company • factors establishing management and control in mauritius includes meeting the. the gbc1 is the type of vehicle gbc1 company mauritius used for international investment where tax treaty beneﬁts are available and/ or where the entity is to be an invest-. before the mauritius national assembly ( opens in a new tab) passed the finance act, mauritius companies operating globally had to register for either a gbc1 license or a gbc2 license, and each license was suited for specific types of businesses and offered unique perks. while a gbl2 company is not taxable in mauritius, a gbl1 company is liable to tax on its income at a flat rate of 15%. a mauritius gbc- 1 is a corporation registered through the mauritius registrar of companies and regulated by the financial services commission to hold a category 1 global business licence that enables the company to carry out business activities outside the country. the transitional period available are as follows: after these grandfather dates, a gbc1 licence shall be deemed to be a global business licence ( “ gbl” ). a gbc 1 may either be locally incorporated or be registered as a branch of a foreign company. however, they benefit from both tax credits and a longstop tax rate of 3%. minimum shareholders one.
this means that the company will pay taxes on their earnings, but it also means that they are granted access to the extensive mauritian double tax treaties. purposes in mauritius • an authorised company is required to file a return of income to the mauritius revenue authority within 6 months of its year end join our live webex for a deeper discussion on how the above may affect your business, please join us in our live webex session on “ tax reform in the global business sector in mauritius” to be. previously, a gbc1 was subject to a presumption that the amount of foreign tax charged on its foreign source income was equal to 80% of the mauritius tax chargeable with respect to that income ( ‘ deemed foreign tax credit’ ). changes to mauritius global business corporation regime the enactment of mauritius financial ( miscellaneous provisions) act ( fmpa ) has removed global business corporation category 1 and 2 licenses ( gbc1 and gbc2) since jan to be compliant with the oecd/ g20 beps project. global business licence subject to grandfathering/ a transitional period, the ‘ gbc1’ is now known as a global business licence ( gbl). in the mauritius budget brought in a number of measures to reform the current corporate structural landscape. mauritius ( gbc1) company formation. a gbc 2 is defined as a resident corporation conducting business outside mauritius and can engage in activities other than the following:. they have been replaced with a mauritius global business license companies ( gbl or gbc) and a newly introduced mauritius authorised companies ( ac' s). effective from 1 january, the mauritius government has replaced the category 2 global business license ( gbc2) company by the standard global business license ( gbl) company.
additionally a mauritius gbc2 company is exempt from all taxes on income derived outside mauritius. the company concurrently applies to the financial services commission ( the “ fsc” ) through a licensed management company such as codan ( mauritius) limited to obtain either a category 1 or category 2 global business licence issued under the financial services act. a gbc1 is resident in mauritius and subject to tax. our local agent will act as your mauritius company secretary, for. mauritius global business company ( gbc1). mauritius global business category 1 ( gbc1) mauritius is one of the main international financial services centre which grants two most common forms of business to international clients, specifically the category one global business companies and the category two global business companies. in addition, while the financial services commission ( fsc) of mauritius no longer issues the gbc2, we have seen the introduction of a new type of entity, the authorised company.
a mauritius gbc 1 local company must also have a local registered secretary, which can also gbc1 company mauritius be the company’ s registered local agent. neither capital gains nor withholding taxes are levied. gbc1 companies are also exempt from stamp duty, land transfer tax, and capital gains tax. major changes in fmpa are summarized as below:. the gbc1 is a tax resident company which pays income gbc1 company mauritius tax at an eﬀective rate of 3% and is able to access mauritius' network of tax treaties.