MAURITIUS - offshore company formation

Mauritius is strategically located in the Indian Ocean with a favourable time zone (GMT + 4) and a long history of free enterprise. 

Mauritius has been actively involved in regional co-operation and is a member of the Common Market for Southern and Eastern Africa (COMESA), the Southern African Development Community (SADC) and the proposed Indian Ocean Rim Association.

Politically, Mauritius has the tradition of a democratically elected government and has enjoyed political stability for decades.  

The Country: Mauritius an island covering 1,865 square kilometers is situated some 2,000kilometres off the East Coast of Africa. Being of volcanic origin, Mauritius has a central plateau and mountains scattered throughout the island, fast flowing rivers, tropical forests, white sandy beaches, transparent lagoon well protected from the open sea by the world’s third largest coral reef.

Mauritius: THE INTERNATIONAL FINANCIAL SERVICES CENTRE

Comprehensive legislation was introduced to pave the way for non-banking offshore activities, following the set up of the first offshore bank in August 1989. The Offshore Authority was set up in November 1992 which played a crucial role in establishing and developing the offshore sector at large.  The Authority has adopted a professional and pragmatic regulatory approach by continuously improving on its services and guiding operators on enhancing the competitiveness of the Mauritius offshore jurisdiction.

The Financial Services Development Act 2001 (FSDA Act) also provides for the Financial Services Commission (FSC) to act as a one-stop-shop in all matters relating to Global Business.

The approved Global Business activities include:

•   Aircraft financing and leasing

•   Asset Management

•   Consultancy Services

•   Employment Services     

•   Financial Services

•   Fund Management

•   Information and Communications Technology

•   Insurance

•   Licensing and Franchising

•   Logistics and Marketing

•   Pension Funds

•   Shipping and Ship Management

•   Trading

 

Mauritius GBC 2 companies

Mauritius GBC2s are companies incorporated under the Companies Act 2001 with a category 2 Global Business Licence. GBC2 companies are designed for business outside of Mauritius and may not carry on business in Mauritius (subject to a number of statutory exceptions). GBC2s are commonly used for:

The holding / ownership of investments and assets( real estate or shares or other property)commercial transactions and international trading operations asset protection consultancy companies.

FEATURES & BENEFITS OF MAURITIUS GBC 2 Companies

Fiscal advantages

• Mauritius taxation on foreign income: no
• Mauritius stamp duty on transfer of GBC2 shares: No
• Minimum annual Mauritius Government License fee (aggregate): US$ 200

Directors

• Minimum number of directors: 1
• Corporate directors permissible: yes
• Local director requirement: no
• Publicly accessible records of directors: no
• Location of directors meetings: anywhere

Shareholders (members)

• Minimum number of shareholders: 1
• Corporate shareholders permissible: yes
• Local shareholder requirement: no
• Location of shareholders meetings: anywhere
• Publicly accessible records of shareholders: no

Beneficial owners (clients)

• Publicly accessible records of beneficial owners: no
• Shares may be held by a nominee on behalf of beneficial owner client

Company Secretary

• Appointment of Company Secretary requirement: optional

Share capital

• Stated Capital: With the Companies Act 2001, the concept of authorized share capital has been abolished. A GBC2 company can now issue shares without any restriction.   
• Standard Minimum Paid up Capital: US$1
• Standard currency: USD,EUR,GBP
• Permitted currencies: any (except Mauritian Rupees)
• Registered shares (bearer shares not permitted)

Accounts and returns

• Requirement to file annual Accounts: no
• Audit requirement: no
• Publicly accessible Accounts: no
• Requirement to file annual company return: no

Other

• Migration/redomiciliation of companies to or from Mauritius : yes
• Double taxation treaty access: no
• Confidentiality: no publicly accessible records of directors or shareholders or beneficial owners / clients; and use of nominees permitted; Permitted currencies: any (except Mauritian Rupees)
• Registered shares (bearer shares not permitted)

Accounts and returns

• Requirement to file annual Accounts: no

 

MAURITIUS Global Business Company Category 1 ("GBC 1")

Mauritius GBC 1 companies

Mauritius GBC1s are companies incorporated under the Companies Act 2001 (which hold a category 1 Global Business Licence). GBC1 companies (unlike GBC2 companies) are resident in for Mauritius for taxation purposes and have access to Mauritius' extensive double taxation avoidance treaty network. Although subject to Mauritian tax, they benefit from tax credits and a low tax rate (see below). GBC1 companies have commonly been used by foreign business to structure investments and projects with Mauritian double tax avoidance treaty partners, including India, China, Indonesia, Italy, Luxembourg and Thailand.

Fiscal advantages

• Mauritius taxation on foreign income:  15% (but can be reduced to effective rate of 3% where foreign tax credits apply)
• Mauritian capital gains tax or withholding tax:  no
• Minimum annual Mauritius Government License fee (aggregate): US$ 1700

OTHER INCENTIVES FOR A GBC1

• No capital gains tax
• No limit on the carry forward of tax losses
• Royalties ,interests and service fees payable to foreign affiliates are allowed as expenses provided they are reasonable and correspond to actual expenses incurred
• Interests paid on deposits in Banks are tax exempt
• Dividends paid by a GBC1 are tax exempt
• Royalties paid to non-residents are exempt
• No stamp duties ,registration duties or levies
• Duty concessions on office equipment ,furniture and motor vehicles

Directors

• Minimum number of directors: 2 required for access to Mauritius tax avoidance treaties
• Corporate directors permissible: No.
• Local director requirement: yes , 2 required for access to Mauritius tax treaties
• Publicly accessible records of directors: no
• Location of directors meetings: In Mauritius for tax treaty access

Shareholders (members)

• Minimum number of shareholders: 1
• Corporate shareholders permissible: yes
• Local shareholder requirement: no
• Location of shareholders meetings: Mauritius - by proxy permitted 
• Publicly accessible records of shareholders: noBeneficial owners (clients)
• Publicly accessible records of beneficial owners: no
• Shares may be held by a nominee on behalf of beneficial owner client : Yes

Company Secretary

• Appointment of Mauritian resident (qualified) Company Secretary: yes

Share capital

• Standard currency: USD ,GBP or EURO
• Permitted currencies: any (except Mauritian Rupees)
• Registered shares (Bearer shares not permitted)

Accounts and returns

• Requirement to file annual Accounts:  yes ,within 6 months of financial year end
• Audit requirement: yes
• Publicly accessible Accounts: no
• Requirement to file annual company return: no
• Requirement to file income tax return : yes

Other

• Migration/redomiciliation of companies to or from Mauritius:   yes
• Double taxation treaty access: yes - Mauritius has an extensive double taxation avoidance treaty network
• Requirement: registered office and licensed Secretary / Registered Agent in Mauritius
• Trading restrictions: if duly licensed by the Mauritian authorities, a GBC1 may carry on the business of banking, insurance, reinsurance, fund administration,  etc.
• A GBC1 has the same powers as a natural person, including the right to sue and be sued. It is a separate legal entity with limited liability and has perpetual existence.
• Name restrictions: it is prohibited (or requires requisite licence) for a GBC1 name to contain words such as “Bank”, “Trust”, “Building Society”, “Insurance” or which suggest the patronage of any Government. It is prohibited to use a name already in use.
• Language of GBC1 name: while normally in English or French, a GBC1 name can be in any language, but must be accompanied by an approved translation in English.
• A GBC1 is a Mauritius resident for taxation purposes

Copyright Asset Protection s.r.o. © 2007, All rights reserved.
Asset Protection s.r.o. is not a law firm and does not provide legal advices or legal services. We recommended to consult licensed professionals with regards to local tax and legal matters.