A Global Business Company (GBC), also known as Global Business Corporation, is a popular business vehicle in Mauritius for overseas investors and trading entities. It offers tangible perks in terms of taxes and operational compliance. GBCs in Mauritius are easy to incorporate due to minimal paperwork and compliance. Let’s take a closer look at the process of establishing a Global Business Company in Mauritius, its benefits, and the paperwork.
Global Business Company in Mauritius: An Overview
A GBC falls under the legislation of the Companies Act of 2001. The Financial Services Commission is the apex body that regulates GBCs, regardless of industry or operational footprint.
Akin to offshore companies, GBCs have garnered a solid reputation among entrepreneurs seeking asset protection, tax benefits, operational liberty, scalability, and complete confidentiality. Every GBC must have a Global Business License (GBL) to qualify for tax residency and access the Double Taxation Network.
Businesses registered as a Global Business Company can engage in various activities, including but not limited to the following:
- Trading
- Investment holding
- Intellectual property holding
- Fund management
Benefits of Setting up a Global Business Company in Mauritius
As per the projections of the World Economic Estimate, Mauritius will become a $45 billion economy by 2025. This growth stems from the country’s robust political environment, strong administrative framework, trade-friendly policies, and lucrative tax system. Overseas entrepreneurs seeking offshore company formation in Mauritius can opt for GBCs. Let‘s discuss the frontline benefits GBC offers to companies in Mauritius.
Flexible Corporate Structure
Based on specific business needs, you can register a GBC in Mauritius as a limited company, a partnership, or a trust. This flexibility allows business owners to align with specific regulatory requirements.
By partnering with residents, GBCs can operate within Mauritius’ territory under certain circumstances. To bring this arrangement to light, GBCs must sign a contract with resident(s) and invoice them within the purview of local laws.
GBCs carrying business activities under a partial exemption regime qualify for an 80% exemption on their foreign income streams. This is valid provided they adhere to the underlying substance requirements.
GBCs are exempt from withholding tax as well as capital gain taxes. It enables them to have significant savings on dividend distribution and the sale of shares. Additionally, a tax residence certificate makes GBCs eligible to leverage double taxation treaties.
Understanding Eligibility Criteria for a Global Business Company in Mauritius
Setting up a GBC in Mauritius requires compliance with the following requirements:
The presence of a registered office is the foremost requirement when going for a GBC formation. The registered office can cater to administrative formalities, such as responding to authorities’ notices, if any, maintaining legal documents, applying for additional permits, and renewing certificates, among others.
With a tax residency status, GBC requires administrative control from the country of registration, meaning the owners cannot control or manage it from outside Mauritius. However, that does not mean they cannot tap into tax benefits offered by the government.
GBCs involved with the following activities cannot operate outside Mauritius’ territory:
- Trading
- Investment holding
- Asset Management
- IP licensing
These companies cannot leverage any commercial arrangement in Mauritius to generate income, except for activities required to uphold the company’s operation.
All GBCs must maintain a certain degree of substance in Mauritius to kickstart their operations. The substance generally refers to a physical establishment and employees who help reinforce the tangibility of a business.
Approval from the Financial Services Commission (FSC) is essential for every entity intending to operate as a GBC. Additionally, you must secure business-specific permits, if required, to formalize your operation.
Every GBC must assign at least two local partners with appropriate management skills. On top of that, there must be a resident CS, i.e., a company secretary that aligns with the requirements of the Companies Act 2001. Consult your local agent before getting them aboard.
A Step-by-Step Guide to Registering a GBC in Mauritius
Setting up a GBC in Mauritius requires you to follow the steps below:
Step 1: Decide on the business name and reserve it
The foremost step in the GBC formation process is the name reservation. You must visit the relevant authority to register a valid trademark-free name.
Step 2: Arrange Documents
Once you have registered the name, make sure to arrange the following documents without fail:
- Business Plan
- Memorandum and Articles of Association
- Directors’ ID and proof
- Address proof of the company
- Shareholders’ consent form
Step 3: Share the documents with the RoC
This step requires you to visit the RoC, i.e., Registrar of Companies, to submit the application and incorporation documents. These documents shall undergo inspection within the purview of the Companies Act 2001.
Step 4: Pay the requisite fees
Upon application submission, proceed with submitting the applicable fee to activate the assessment process.
Step 5: Grant of Certificate
Upon completion of the assessment process, RoC shall grant the incorporation certificate.
Step 6: Secure FSC’s Permit
Finally, you need to secure approval from the Financial Services Commission (FSC). This license is mandatory to bring GBC’s operations into motion.
Conclusion
GBC in Mauritius is your golden ticket to business growth and an augmented cross-border presence. Holding companies, asset management firms, and trading businesses can use this business vehicle for cost-effective operations. Registering a GBC is relatively straightforward, provided the applicant meets all the requirements.
If you seek extended support for incorporation, feel free to contact BSW without any hesitation. As a premier service provider, Business Setup Worldwide (BSW) stands out with 8+ years of experience and a steadfast commitment to ensuring top-notch customer service. Contact us today for a free consultation, and our experts will take care of the rest.
