Business in Mauritius – Setting Up and Relocating
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’s), a unique concept introduced by the Mauritian government in 1992 which, offers investors an efficient vehicle for tax structuring and planning. GBC’s are governed by the Companies Act 2001 and the Financial Services Act 2007 and regulated by the Mauritius Financial Services Commission (FSC).
There are two types of GBC’s, based on the category of license:
- Category 1 Global Business License (GBC1) – this company must be administered by a Management Company e.g. for GMG via GMG Trust Ltd.
- Category 2 Global Business License (GBC2) – this company must be set-up by a Registered Agent.
Category 1 Global Business License (GBC1)
A GBC1 is a corporate vehicle used mainly to benefit from the network of double taxation avoidance agreements which Mauritius has concluded with a number of treaty countries. The GBC1 is resident for income tax purposes, and provided management and control is properly exercised in Mauritius, it can benefit from the network of double taxation treaties. In addition, there is no withholding of taxes on dividends, interests 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 Characteristics:
- Residents may qualify to access the network of double taxation treaties
- Application for a license is processed within 2 weeks (provided all required documents have been submitted)
- Beneficial owner’s details are disclosed to the FSC, but not available to the public
- Limited life companies permitted; Protected Cell companies also permitted for certain global business activities (insurance and investment funds)
- Minimum of two resident directors
- Audited accounts required to be filed with the FSC and 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, trading, licensing and franchising, property ownership, financing, debt factoring, etc. In addition, a GBC1 is permitted to undertake global business activities, such as, Investment Funds, Captive Insurance, International Financial Services, Asset Management, Pension Funds and it can be structured as a Protected Cell Company.
Key Features of the GBC1
Confidentiality: Specific provisions regarding confidentiality
Disclosure Requirements: Information filed with the Registrar of Companies and the FSC are not available to the public
Beneficial Ownership: Required to be disclosed to the authorities
Shareholders: Disclosed to the authorities
Register of Members: Required, maintained in Mauritius
Single shareholder and director permissible: Yes
Minimum no. of Shares: One
Authorized Share Capital: Not required
Bearer Shares: Not Allowed
Corporate Income Tax: Yes, subject to a rate of 15% which results in an effective tax rate of 3% after concessionary foreign tax credits of up to 80% are applied.
Double Taxation Avoidance Agreement: Yes, can access / benefit
Minimum no. of Directors: One or two to qualify for treaty benefits
Corporate Directors: Not permissible
Board Meetings: Must be held, chaired and minuted in Mauritius
Secretary: Required
Registered Office: Must be situated 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 filed with the FSC and the Revenue Authority
Company Name: English or French or jointly with another language e.g. Chinese
Constitution: English or French or jointly with another language e.g. Chinese
Company Name ending B.V., N.V., S.A., etc: Allowed
Continuation from/to another jurisdiction or from/to a GBC2: Migration permissible
Category 2 Global Business License (GBC2)
A GBC2 is a flexible corporate vehicle which has similar characteristics to that of the popular British Virgin Island Business Company. The GBC2 is exempt from corporate income tax and other taxes & duties in Mauritius. In addition, taxes are not withheld on dividends, interests and royalties paid to any person and there is no capital gains tax. A GBC2 is required to at all times have a Registered Office and a Registered Agent in Mauritius. A GBC2 cannot access the network of Double Taxation Treaties concluded by Mauritius.
Key Characteristics:
- Low incorporation cost and fairly quick incorporation period
- No minimum capital requirement
- Shares can be issued with or without par value
- Limited life permitted
- Corporate director permissible
- No requirement for audit and annual return
- No access to double taxation treaties
Potential Uses
A GBC2 can generally be used for a wide range of business activities other than banking; financial services; holding or otherwise dealing with a collective investment fund or scheme as a professional functionary; providing registered office, nominee services or other services for corporations; and providing trusteeship services by way of business. In addition, a GBC2 is a flexible and suitable vehicle to hold and manage private assets such as property, trading, licensing, consulting, etc.
Proposed changes for GBC2 in 2009-2010 Budget
Following the 2009-2010 Budget, certain changes have been proposed regarding the disclosure requirements relating to Category 2 Global Business Companies such as:
- More information relating to Beneficial Owners of Category 2 Global Business Companies;
- A more detailed business plan; and
- Filing of financial summaries.
Key Features of the GBC2
Confidentiality: Specific provisions regarding confidentiality
Disclosure Requirements: Information filed with the Registrar of Companies and the Financial Services Commission are not available to the public
Beneficial Ownership: Not disclosed to the authorities
Shareholders: Disclosed to the Authorities
Register of Members: Required, maintained in Mauritius
Single shareholder and director permissible: Yes
Minimum no. of Shares: One
Authorized Share Capital: Not required
Bearer Shares: Not Allowed
Nominee Shareholders: Allowed
Corporate Income Tax: Exempt
Double Taxation Avoidance Agreement: Cannot access or benefit
Minimum no. of Directors: One
Corporate Directors: Permissible
Board Meetings: Can be held anywhere
Secretary: Not required / Optional
Registered Office: Required, in Mauritius
Registered Agent: Required, 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 jointly with another language e.g. Chinese
Constitution: English or French or jointly with another language e.g. Chinese
HOW TO RELOCATE TO MAURITIUS
Relocation to another country has never been easier. To live and work in Mauritius requires a work and residence permit, and there are currently three ways in which a person (and his/her dependants) can be granted a permit:
1 – IRS (Integrated Resort Scheme) – this results in an immediate residence permit. (See more details further down)
2 – Occupational Permit (“OP” – which is valid for three years)
3 – As a Retiree
2.1 – Occupational Permit
An occupational work permit allows a foreigner to reside and work in Mauritius and can be obtained as an Investor, a Professional or Self Employed. The following conditions apply:
Investor
Three Year Permiy – The proposed business activity should generate an annual turnover exceeding MUR 3 million.
Permanent – 10 years – An annual turnover for three consecutive years exceeding MUR 15 million.
Professional
Three Year Permit – The basic monthly salary of a professional should exceed MUR 30,000.
Permanent – 10 years – The basic monthly salary earned is in excess of MUR 150,000 per month for the period of three consecutive years.
Self Employed
Three Year Permit – The annual income of the proposed business activity should exceed MUR600,000.
Permanent – 10 years – An annual turnover of the business which exceeded MUR3 million for the first three years.
Having permanent residence (valid for ten years) is beneficial as this allows the person to acquire property on the island, other than through the 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 – As a Retiree
This permit allows an eligible retired non-citizen to reside in Mauritius, subject to this person undertaking to transfer at least USD 40,000 annually into 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 above mentioned funds have been transferred regularly.
2.3 – Citizenship
Obtaining a permanent residence permit does not automatically result in a citizenship. Only the Prime Minister can grant citizenship and the application can be made after five years.