Mauritius GBC I Company
OVERVIEW
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%. Provided they are correctly structured and managed, GBC I companies may access Mauritius' network of tax treaties. Neither capital gains nor withholding taxes are levied.
GBC I companies are governed by The Companies Act, 2001 and regulated by the Mauritius Financial Services Commission and therefore subject to compliance and reporting regimes.
All companies seeking to benefit from this status are granted licenses on a case by case basis by the FSC. This procedure demands the submission of a detailed business plan and disclosure of beneficial ownership.
Normally it takes about four weeks to set up a Mauritius GBC I Company.
GBC I Company (Tax Resident – Treaty Access) |
|
General |
|
Type of entity |
GBC I |
Type of law |
Hybrid |
Shelf company availability |
No |
Minimum government fees (excluding taxation) |
US$1,750 to FSC; US$300 to ROC |
Corporate Taxation |
Varies from 0% to 3% (maximum) |
Double taxation treaty access |
Yes |
Share Capital or Equivalent |
|
Standard currency |
US$/GBP/EURO |
Permitted currencies |
Any except Rs |
Minimum paid up |
1.00 |
Directors |
|
Minimum number |
1 |
Local required |
Yes, but 2 required for tax treaty access |
Publicly accessible records |
No |
Location of meetings |
Anywhere, but in Mauritius for treaty access |
Shareholders |
|
Minimum number |
1 |
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 |
COMPANY INFORMATION
Procedure to Incorporate
Once name approval has been obtained, consent forms signed by the Officers, copies of the Constitution, notice of the First Directors, Secretary and location of the Registered Office are submitted to the Registrar of Companies. Business Plan and compliance documents are submitted simultaneously to the FSC.
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.
Time to Incorporate
Minimum of 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, but not public.
COMPLIANCE
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$ 1,500 and a one-off licence application fee of US$ 500 to the Financial Services Commission. On incorporation a once-off fee of US$ 200 is payable to the Registrar of Companies. Thereafter a further US$ 200 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
- 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").
- 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.
- Mauritius has no thin capitalisation rules.
- Interest and royalty payments paid by Companies holding a Category 1 Global Business License are fully tax deductible in Mauritius.
- 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
http://www.mra.mu/index.php/taxation/double-taxation-agreements
Licence Fees
US$ 1,500 to the FSC. - US$ 200 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.