Mauritius GBC 1Company(Tax Resident– Treaty Access)
GeneralTypeofentity / GBC 1
Typeof law / Hybrid
Shelf company availability / No
Ourtime to establish a new company / 4 weeks
Minimum government fees(excluding taxation) / US$1,750 to FSC US$325 to ROC
Corporate Taxation / Variesfrom 0% to 3%(maximum)
Double taxation treaty access / Yes
Share CapitalorEquivalent
Standard currency / US$
Permitted currencies / Any exceptRs
Directors orManagers
Minimum number / 2
Local required / 2 required
Publicly accessible records / No
Location ofmeetings / To be chaired in Mauritius and must include 2 directors from Mauritius
Members
Minimum number / One
Publicly accessible records / No
Company Secretary
Required / Yes
Localorqualified / Localand 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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OVERVIEW
MauritiusGBC 1Companiesare resident inMauritiusand consequentlysubject to tax.However, theybenefit from bothtax creditsandalongstoptax rateof3%.CorrectlystructuredandmanagedMauritiusGBC1 companiesmayaccessMauritius' networkof37tax treaties.Neithercapitalgainsnorwithholdingtaxesarelevied.Consequently,MauritiusGBC1 companies areusedbytaxpractitionersandbusinessestostructureinvestmentsintoMauritius'treatypartners,whichincludeChina, India,Luxembourg and Thailand.
MauritiusGBC1CompaniesaregovernedbyTheCompaniesAct,2001andregulatedbytheMauritiusFinancialServices
Commission.They are subjectto compliance and reporting regimessimilartothose ofHong Kong orUK companies.
Allcompaniesseekingtobenefitfromthisstatusaregrantedlicensesonacasebycasebasisbytheregulatoryauthoritiesin
Mauritius.This procedure demandsthe submission ofa detailed businessplan and disclosure of beneficialownership. Normally it takes about three weekstosetup a Mauritius GBC 1 Company.
GENERALINFORMATION Introduction
Mauritiusis situated in the Indian Ocean approximately800 km off the EastCoastofMadagascar.
Population
ThepopulationoftheIslandisapproximately1,200,000madeupprincipallybypeopleofEuropean,African,Indianand
Chineseorigin.Mauritiustakesprideinthefactthatthesedifferentculturesco-existinpeaceandsucceedincreatinga culturalentity thatisdistinctly Mauritian.
PoliticalStructure
The British ruled Mauritius for 158 years until 12 March 1968 when it became an independent country within the
Commonwealth.TheRepublicofMauritiusisaWestminsterstyledemocracy.ThePresidentistheHeadofStateand
CommanderinChief.Fullexecutivepowerrestswith thePrimeMinisterwhoisHeadofGovernment.TheMembersof Parliamentare elected every five yearsby popularvote anda numberofpoliticalparties contestthe elections,reflecting the country'sfirmcommitment to amulti-party political system.
Economy
Since independence in1968, Mauritiushasdevelopedfroma low income,agriculturally basedeconomy toa middle-income diversified economy with growing industrial,financial,and tourism sectors.Formostofthe period,annualgrowth hasbeen of the orderof5% to 6%.
Thegovernment'sdevelopmentstrategycentresonforeigninvestment.Mauritiushasattractedmorethan20,000offshore entities,many aimed atcommerce in India and South Africa,and investmentin thebanking sectoralone hasreachedover US$ 1 billion.
Language
Englishistheofficiallanguage.However,theMauritianpopulationislargelybilingual,beingequallyfluentinEnglishand
French.Creole isalsospoken and understood byeveryone.
Currency
Mauritian Rupee.
Exchange Control
None.
Type ofLaw
Common Law forcorporate matters.
COMPANYINFORMATION PrincipalCorporate Legislation
The CompaniesAct2001.
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FinancialServicesAct2007.
ACompanyholdingCategory1GlobalBusinessLicenseisresidentfortaxpurposesandcanaccessMauritius'networkof double taxtreaties,provided that itis correctlystructured and that the seatofmanagementand controlisin Mauritius.
Procedure to Incorporate
Once name search and approval are obtained, application is submitted to the ROC. Upon approval, application is submitted to the FSC.
Restrictions on Trading
A licence isrequired to undertake banking orinsurance businessorsolicit fundsfrom the public.
Powers ofCompany
A company incorporated in theRepublicofMauritiushasthe same powersasa naturalperson.
Language ofLegislation andCorporate Documents
ThelegislationisinEnglishandFrenchwhilstdocumentationmaybeexpressedinanylanguagebutmustbeaccompanied by a certified English translation.
Registered Office Required
Yes,mustbe maintained in Mauritius at the addressofalicensed management company orlaw firm.
ShelfCompaniesAvailable
No.
Time toIncorporate
Fourweeks.
Name Restrictions
AnynamethatisidenticalorsimilartoanexistingcompanyoranynamethatsuggeststhepatronageofthePresidentorthe
GovernmentofMauritius.
Language ofName
English orFrench.
Names Requiring Consentora Licence
Thefollowingnamesortheirderivatives:assurance,bank,buildingsociety,ChamberofCommerce,chartered,co-operative, government,imperial,insurance,municipal,royal,stateortrustoranynamewhichintheopinionoftheRegistrarsuggests
the patronage of the President orthe GovernmentofMauritius.
Suffixes to Denote Limited Liability
Limited,Corporation,Incorporated,PublicLimitedCompany,SociétéAnonyme,SociétéAnonymeàResponsabilitéLimitée, Sociedad Anónima, Berhad, Proprietary, Naamloze Vennootschap, Besloten Vennootschap, Aktiengesellschaft or the
relevantabbreviations.
Disclosure ofBeneficialOwnership toAuthorities
Yes,butnotpublic.
COMPLIANCE UsualCapital
The concept of share capital now applies.
Classes ofShares Permitted
Registered shares,preference shares, redeemable sharesand shareswith orwithoutvoting rights.
Taxation
CompaniespayafixedannuallicencefeeofUS$1,750andaone-offlicenceapplicationfeeofUS$500totheFinancial
ServicesCommission. Onincorporationaonce-offfeeofUS$325ispayabletotheRegistrarofCompaniesforprivate companies.Thereaftera furtherUS$ 325 ispayable annually forprivate companies. Companiesare residentin Mauritiusfor tax purposes.There isnocapitalgainstaxationin Mauritiusandtherearenowithholding taxeson thepaymentofdividends, interestorroyaltiesfromCompanies.Therearenostampdutiesorcapitaltaxes. CompaniesholdingCategory1Global BusinessLicense are liable to taxesata rate of15%.
Tax Situation
ProvidedthattheCompanyholdingaCategory1GlobalBusinessLicenseownsatleast5%ofanunderlyingcompany,credit willbe available on foreign taxpaid on the income outofwhich the dividend waspaid ("underlying foreign taxcredit").
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Whena companynotresidentinMauritius,whichpaysadividend,hasitselfreceivedadividendfromanothercompanynot resident in Mauritius(a "secondary dividend")ofwhich itownseitherdirectly orindirectly at least 5%of the share capital, such dividend willbe allowableasa foreign taxcreditand an underlying foreign taxcreditwillalso be available.
Mauritiushasno thin capitalisation rules.
InterestandroyaltypaymentspaidbyCompaniesholdingaCategory1GlobalBusinessLicensearefullytaxdeductiblein
Mauritius.
Tax sparingcreditsareavailable-UnderthisregimetheeffectiverateoftaxationinMauritiuscanbereducedasalongstop provision existswhereby Companiesholding Category 1 GlobalBusinessLicense may electnot to provide written evidence to theCommissionershowingtheamountofforeigntax chargedandenjoydeemedtaxationat80%ofthenormalrateof15%, i.e.12%.Thus,useofthislongstopprovisioninisolationwouldreducetheeffectiverateoftaxationinMauritiusfrom15%to
3%.
Double TaxationAgreements
Mauritiushasanextensivedoubletaxtreatynetworkwhichincludestreatieswiththefollowingcountries:Australia (Partial), Barbados, Belgium, Botswana, Congo, Croatia, Cyprus, Egypt, France, Germany, Guernsey, India, Italy, Kuwait, Lesotho, Luxembourg, Madagascar, Malaysia, Malta, Monaco, Mozambique, Namibia , Nepal , Oman Pakistan , People's Republic of Bangladesh , People's Republic of China , Rwanda , Senegal, Seychelles , Singapore , Sri Lanka , South Africa , State of Qatar , Swaziland , Sweden , Thailand , Tunisia, Uganda , United Arab Emirates , United Kingdom , Zambia , Zimbabwe
Licence Fees
US$ 1,750 to the FSC.
RegistrarofCompaniesChargeapproximately:
• US$ 325Private Limited Company
• US$450 PublicLimited Company
FinancialStatementRequirements
Audited financial statementsmustbe filed with the FinancialServicesCommission.
Directors
CompaniesholdingCategory1GlobalBusinessLicensesrequireaminimumoftwoDirectorswhomustbenaturalpersons resident in Mauritius.
Company Secretary
A qualified resident company secretary must be appointed.
Shareholders
One.
Disclaimer
Whilstevery efforthasbeen made to ensure that the detailscontained herein are correctand up-to-date, itdoesnot constitute legalorotherprofessionaladvice. OCRAWorldwidedoesnotacceptanyresponsibility,legalorotherwise,foranyerrorsor
omission.
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