Mauritius is located in the South West Indian Ocean. Mauritius gained its independence from Great Britain in 1968. The economy of Mauritius is growing from strength to strength since 1991. Mauritius is a fast-growing offshore financial centre enjoying a stable political atmosphere and benefiting from a government keen to develop the financial sector of the economy. The Government is firmly committed to economic growth and all major political parties have acknowledged the importance of promoting the financial services sector as a major source of national income.
There are two types of companies in Mauritius, Global Business Company (GBL1) Taxed at an effective rate of 3% of profits and Global Business (GBL2) –Exempt from tax in Mauritius, but cannot be used for banking, fiduciary services, insurance or fund-related activities or to access Mauritius’ double taxation agreements. Names can be registered by using Chinese symbols.
CAPITAL DUTY
None
International Finance Centre
In 1989, The Island has attracted many foreign investors, especially in the banking sector, when it launched its International Financial Services Centre by introducing legislation to allow international banks to establish offshore units. Other laws were passed in the succeeding years to provide for the creation of a variety of offshore structures. At present these include international companies, offshore companies, trusts and investment companies. There are also special provisions for a series of activities ranging from offshore banking and insurance to aircraft and ship registration.
Regulatory Authority
Financial Services Commission (FSC) is the regulatory Authority with regard to offshore matter (Act 2001).
Global Business License 2 (GBL1) General
A GBL1 company cannot transact business in Mauritian Rupees or with Mauritian residents unless authorised by the FSC.
Corporate/Administration
For a GBL1 to be eligible for double taxation agreement benefits, it must be liable to taxation in Mauritius by reason of having its office in Mauritius. The board of directors shall consist of at least two residents to satisfy the requirements to obtain a tax residence certificate. Also, all meetings shall be initiated and chaired from Mauritius and all financial transactions channelled through bank accounts in Mauritius.
Tax
Taxation is liable in Mauritius but at a rate of 15% instead of the 25% rate applicable to domestic companies. A GBL1 company is entitled to a deemed tax credit of 80% or may opt to claim credit for actual tax suffered in another jurisdiction, if it's more favourable.
Global Business License 2 (GBL2) General
A GBL2 company cannot transact business in Mauritian Rupees or with Mauritian residence.
A GBL2 need not have its accounts audited and accounting records required are those which the directors consider necessary to reflect the financial position of the company. Tax
