Mauritius global business company (GBC) is a notable choice among foreign investors due to the simplicity of business setup and business advantages that comes with it.
A GBC is an entity incorporated under the Companies Act 2001 of Mauritius. A GBC is different from a domestic company and is licensed by the Financial Services Commission of Mauritius for the objective of carrying out business activities mostly outside Mauritius. While the records of a domestic company are publicly handy for assessment, the records of all GBCs are classified and are not open to the public for assessment.
There used to be two types of Global Business Companies: GBC 1 & GBC -2. But from 1st January 2019, The GBC-1 is changed to GBC, and GBC-2 was rendered inactive, rather than a new type of entity, the Authorized Company is proposed by the Financial Services Commission of Mauritius.
Type of Activities a GBC can carry out
Under the Financial Services Act 2007, a GBC can carry out any business activity which is legal. Commonly a GBC is used for the following purposes:
- investment advisory services
- international trading
- consultancy services
- funds Management
- Insurance Broker
- Payment Service
- asset management
- and other applicable financial services activities.
Formation of Mauritius Global Business Company
Company Name
For a smooth GBC company set up in Mauritius, a name approval for the company is needed and must pass through specific guidelines. For example, the names of GBC must end with “Corp.”, “N.V”, “B.V”, “S.A” etc. The name of the company can also be reserved with the Registrar of Companies before the company is incorporated.
Constitution
A GBC may choose to have a constitution, but there is no requirement by law to have one. GBC may satisfy the new FSC requirements by choosing to acknowledge a constitution that provides for all conflicts arising out of the constitution to be fixed by way of arbitration in Mauritius.
New Requirements:
The FSC gave new entity guidelines for GBCs and these are active as of 1 January 2015. Moving forward, in addition to the current conditions, a GBC has to fulfill at least one of the following conditions:
- the GBC has to have office premises in Mauritius or
- the GBC has to employ on a full‐time basis at the administrative level, and at least one person who shall be resident in Mauritius or
- the GBCs constitution includes a clause whereby all disputes occurring outside of the constitution shall be resolved by way of arbitration in Mauritius or
- the GBC holds or is required to hold within the next 12 months, assets that are worth a minimum of USD 100,000 in Mauritius
- the GBCs shares are documented on a securities exchange licensed by the Financial Service Commision; or
- it has to have an annually expenditure in Mauritius which can be relatively expected from any comparable corporation which is controlled and managed in Mauritius.
Shareholders
A minimum of one Shareholder is expected. And the details of the shareholders must be documented to the Companies Registry and to the Financial Services Commission. Only shareholders have the privilege of inspection. The shareholder can be of any nationality and doesn’t necessarily have to be resident in Mauritius. Corporate shareholders are allowed of.
Share Capital
No minimum investment amount or minimum share capital is required. But, a company must have at least one share in issue, which can be allocated at a nominal value and cannot be redeemed.
Directors
The Mauritius GBC needs at least two directors who shall be residents in Mauritius. Corporate directors are not allowed in a Mauritius GBC. A director is needed to give his permission to act as director by documenting form seven with the Registrar of Companies.
Registered Office, Local Agent, and Secretary in Mauritius
A qualified resident company secretary must be assigned when setting up a Mauritius GBC. All GBC must have a Registered Agent and a Registered Office in Mauritius. And The Registered Agent must be authorized to act as such.
Meetings
Meetings of the directors may be held within or outside Mauritius and all board meetings must include at least 2 directors who must be residents of Mauritius. The Companies Act asserts that the business and affairs of a company must be governed by, or be under the direction or management of, the board of directors who may oversee its own procedures.
Incorporation Time
Generally, once the Trade Name is approved, the Company can be incorporated within a period of 2-3 weeks. Extra information and documentation may be demanded in order to complete the incorporation.
Taxation
A well-structured Mauritius GBC Formation can decrease corporate taxation to around 3%. GBC Companies have entry to over 30 tax treaties. Also, there are no withholding taxes on revenues paid out of income from authorized offshore activities, nor is there withholding tax on interest.
Audit And Financial Returns
The audited financial statement is mandated to be filed with the Financial Services Commission within 6 months of the close of the financial year.
In addition to its stable economy and business-friendly constitution, Mauritius provides an excellent opportunity to incorporate a low-cost and legally tax-efficient company to conduct international business.
To know more about Company Formation in Mauritius, contact your Damalion expert now.
