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Mauritius GBC Category I

   

Mauritius GBC I Company (Tax Resident - Treaty Access)

» Overview
» Key Corporate Features
» General Information
» Company Information
» Compliance

» Information Downloads
» Statutory Information Downloads



Overview

Mauritius GBC I Companies are resident in Mauritius and consequently subject to tax. However, they benefit from both tax credits and a longstop tax rate of 3%. Correctly structured and managed Mauritius GBC I companies may access Mauritius' network of 28 tax treaties. Neither capital gains nor withholding taxes are levied. Consequently, Mauritius GBC I companies are used by tax practitioners and businesses to structure investments into Mauritius' treaty partners, which include China, India, Luxembourg and Thailand.

Mauritius GBC I Companies are governed by The Companies Act, 2001 and regulated by the Mauritius Financial Services Commission. They are subject to compliance and reporting regimes similar to those of Hong Kong or UK companies.

All companies seeking to benefit from this status are granted licenses on a case by case basis by the regulatory authorities in Mauritius. This procedure demands the submission of a detailed business plan and disclosure of beneficial ownership.

Normally it takes about three weeks to set up a Mauritius GBC I Company.


Key Corporate Features

General
Type of entity: GBC I
Type of law: Hybrid
Shelf company availability: No
Our time to establish a new company: 4 weeks
Minimum government fees (excluding taxation): US$1,750 to FSC US$250 to ROC
Corporate taxation: Varies from 0% to 3% (maximum)
Double taxation treaty access: Yes
Share capital or equivalent
Standard currency: US$
Permitted currencies: Any except Rs.
Minimum paid up: US$1
Usual authorised: US$1,000,000
Directors or Managers
Minimum number: One
Local required: Yes, but 2 required for tax treaty access
Publicly accessible records: No
Location of meetings: Anywhere, but in Mauritius for treaty access
Members
Minimum number: One
Publicly accessible records: No
Location of meetings: Mauritius - by proxy
Company Secretary
Required: Yes
Local or qualified: Local and qualified
Accounts
Requirement to prepare: Yes
Audit requirements: Yes
Requirement to file accounts: Yes
Publicly accessible accounts: No
Other
Requirement to file annual return: No
Change in domicile permitted: Yes

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General Information
Mauritius is situated in the Indian Ocean approximately 800 km off the East Coast of Madagascar.

» Population

The population of the Island is approximately 1,200,000 made up principally by people of European, African, Indian and Chinese origin. Mauritius takes pride in the fact that these different cultures co-exist in peace and succeed in creating a cultural entity that is distinctly Mauritian.

» Political Structure

The British ruled Mauritius for 158 years until 12 March 1968 when it became an independent country within the Commonwealth. The Republic of Mauritius is a Westminster style democracy. The President is the Head of State and Commander in Chief. Full executive power rests with the Prime Minister who is Head of Government. The Members of Parliament are elected every five years by popular vote and a number of political parties contest the elections every five years, reflecting the country's firm commitment to a multi-party political system.

» Economy

Since independence in 1968, Mauritius has developed from a low income, agriculturally based economy to a middle-income diversified economy with growing industrial, financial, and tourist sectors. For most of the period, annual growth has been of the order of 5% to 6%.

The government's development strategy centres on foreign investment. Mauritius has attracted more than 15,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over US$ 1 billion.

The economy grew by 8.9% in 2000 and the Gross National Income per capita at market prices reached 101,948 rupees. Unemployment rate for 2000 is estimated at about 8.0% while inflation stood at 4.2%.

» Language

English is the official language. However, the Mauritian population is largely bilingual, being equally fluent in English and French. Creole is also spoken and understood by everyone.

» Currency

Mauritian Rupee.

» Exchange Control

None.

» Type of Law


Common Law for corporate matters.

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Company Information

» Principal Corporate Legislation 

The Companies Act 2001.
Financial Services Act 2007.

A Company holding a Category 1 Global Business License is resident for tax purposes and can access Mauritius' network of double tax treaties, provided that it is correctly structured and that the seat of management and control is in Mauritius.

» Procedure to Incorporate

Once name approval has been obtained, three copies of the Constitution are submitted, together with a notice of the First Directors, Secretary and location of the Registered Office, and consent forms signed by the Officers.

» Restrictions on Trading

A licence is required to undertake banking or insurance business or solicit funds from the public.

» Powers of Company

A company incorporated in the Republic of Mauritius has the same powers as a natural person.

» Language of Legislation and Corporate Documents

The legislation is in English and French whilst documentation may be expressed in any language but must be accompanied by a certified English translation.


» Registered Office Required

Yes, must be maintained in Mauritius at the address of a licensed management company or law firm.

» Shelf Companies Available

No.

» Time to Incorporate


Three to four weeks.

» Name Restrictions


Any name that is identical or similar to an existing company or any name that suggests the patronage of the President or the Government of Mauritius.

» Language of Name


English or French.

» Names Requiring Consent or a Licence

The following names or their derivatives: assurance, bank, building society, Chamber of Commerce, chartered, co-operative, government, imperial, insurance, municipal, royal, state or trust or any name which in the opinion of the Registrar suggests the patronage of the President or the Government of Mauritius.

» Suffixes to Denote Limited Liability

Limited, Corporation, Incorporated, Public Limited Company, Société Anonyme, Société Anonyme à Responsabilité Limitée, Sociedad Anónima, Berhad, Proprietary, Naamloze Vennootschap, Besloten Vennootschap, Aktiengesellschaft or the relevant abbreviations.

» Disclosure of Beneficial Ownership to Authorities

Yes, not public.

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Compliance

» Usual Capital

The usual authorised share capital is US$ 1 million with all of the shares having a par value. The minimum issued share capital is two shares of par value.

» Classes of Shares Permitted

Registered shares, preference shares, redeemable shares and shares with or without voting rights.

» Taxation

Companies pay a fixed annual licence fee of US$ 1,750 and a one-off licence application fee of US$ 500 to the Financial Services Commission. On incorporation a once-off fee of US$ 250 is payable to the Registrar of Companies. Thereafter a further US$ 250 is payable annually. Companies are resident in Mauritius for tax purposes. There is no capital gains taxation in Mauritius and there are no withholding taxes on the payment of dividends, interest or royalties from Companies. There are no stamp duties or capital taxes. Companies holding Category 1 Global Business License are liable to taxes at a rate of 15%.

» Tax Situation

  1. Provided that the Company holding a Category 1 Global Business License owns at least 5% of an underlying company, credit will be available on foreign tax paid on the income out of which the dividend was paid ("underlying foreign tax credit").
  2. When a company not resident in Mauritius, which pays a dividend, has itself received a dividend from another company not resident in Mauritius (a "secondary dividend") of which it owns either directly or indirectly at least 5% of the share capital, such dividend will be allowable as a foreign tax credit and an underlying foreign tax credit will also be available.
  3. Mauritius has no thin capitalisation rules.
  4. Interest and royalty payments paid by Companies holding a Category 1 Global Business License are fully tax deductible in Mauritius.
  5. Tax sparing credits are available - Under this regime the effective rate of taxation in Mauritius can be reduced as a long stop provision exists whereby Companies holding Category 1 Global Business License may elect not to provide written evidence to the Commissioner showing the amount of foreign tax charged and enjoy deemed taxation at 80% of the normal rate of 15%, i.e. 12%. Thus, use of this long stop provision in isolation would reduce the effective rate of taxation in Mauritius from 15% to 3%.

» Double Taxation Agreements

Mauritius has an extensive double tax treaty network which includes treaties with the following countries: Belgium, Botswana, China, Croatia, Cyprus, France, Germany, India, Italy, Kuwait, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Nepal, Oman, Pakistan, Rwanda, Singapore, South Africa, Sri Lanka, Swaziland, Sweden, Thailand, Uganda, UK and Zimbabwe.

» Licence Fees

US$ 1,750 to the FSC.
US$ 250 to the Registrar of Companies.

» Financial Statement Requirements

Audited financial statements must be filed with the Financial Services Commission.


» Directors


Companies holding Category 1 Global Business Licenses require a minimum of one Director who must be natural person. Treaty access requires a minimum of two local directors.

» Company Secretary

A qualified resident company secretary must be appointed.


» Shareholders

One.

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Information Downloads


  Word  PDF 
 Mauritius GBC I Fact Sheet 119KB  85KB 
 Enquiry Form 34KB 
 Order Forms 314KB  196KB 



Statutory Information Downloads

Access to this statutory material is provided by the International Tax Planning Association. Access to other laws relating to international tax planning is available to members on the Association's website, www.itpa.org.

  PDF
 Companies Act 868KB 
 Protected Cell Companies Act 156KB 

How to Proceed

If you would like to discuss your requirements with one of our consultants,
please contact us.


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Disclaimer

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. OCRA Worldwide does not accept any responsibility, legal or otherwise, for any errors or omission.


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