Global Business Company
A Global Business Company (GBC) is registered under the Companies Act 2001 and licensed by the Mauritius Financial Services Commission. It is mainly used for Financial Services business (subject to additional activity licences) and for investment holding activities especially when income from overseas is mainly in the form of dividends, interests, royalties and capital gains. It is eligible for tax benefits from the network of Double Taxation Avoidance Agreements (DTAA) thus making it an effective corporate vehicle for international and efficient tax planning.
What is a Global Business Company?
A GBC in Mauritius is a company involved in qualified activities and which main business operations are carried principally from Mauritius, but with persons who are resident outside of Mauritius.
A Mauritius GBC is ideal to strategically manage and grow your business, while being an effective structure for efficient international tax planning.
The advantages of setting up a Global Business Company in Mauritius
Mauritius is one of the preferred jurisdictions for setting up a Mauritius GBC. The country is considered as an ideal platform for international trading, investment, mutual funds and asset management.
If the GBC holds a Tax Residency Certificate, it can benefit from the network of Double Taxation Avoidance Agreements, which makes it a cost-effective corporate medium for international tax planning. Mauritius has signed Double Taxation Agreements with 45 countries in Africa, Europe, Asia and the rest of the world.
Confidentiality protects Global Business Companies, as no person or body may disclose information on the GBC unless instructed by the Supreme Court otherwise stated. Moreover, although the rate of tax for Global Business Companies stands at 15%, it can benefit from a partial exemption regime whereby 80% of the income streams will be debarred from tax, subject to meeting substance requirements and thus the effective tax rate will be 3% .
The revenue streams that can benefit from the 80% partial exemption regime are:
Foreign source dividend, provided that it has not been allowed as deduction in source country;
Income derived by a Collective Investment Scheme, Close End Funds, CIS manager, CIS administrator, Investment Adviser or Asset Manager;
Income derived by companies engaged in ship and aircraft leasing;
Income derived by a company from reinsurance and reinsurance brokering activities;
Income derived by a company from leasing and provision of international fibre capacity;
Income derived by a company from the sale, financing arrangement, asset management of aircraft and its spare parts and aviation advisory services related thereto;
Interest derived by a person from money lent through a Peer-to-Peer Lending platform;
Profit gained to a permanent establishment of a resident company abroad; and
Interest derived by a company other than:
– a bank;
– a non-bank deposit taking institution;
– a money changer;
– a foreign exchange dealer
– an insurance company
– a leasing company; or
– a company providing factoring, hire purchase facilities, or credit sales facilities.
Management & Control
The GBC must be managed and controlled from Mauritius. A Global Business Corporation is required to establish substance and be effectively managed and controlled in Mauritius. Therefore, as per the governing legislation, the GBC shall, at all times, adhere to the following conditions:
Carry out its core income generating activities in, or from Mauritius by:
- employing, either directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities, and
- having a minimum level of expenditure, which is proportionate to its level of activities;
Be managed by controlled from Mauritius;
Be administered by a Management Company;
Has at least 2 directors, resident in Mauritius, of sufficient calibre to exercise independence of mind and judgment;
Maintains, at all times, its principal bank account in Mauritius;
Keeps and maintains, at all times, its accounting records, at its registered office in Mauritius;
Prepares its statutory financial statements and causes such financial statements to to be audited in Mauritius; and
Provides for meetings of directors to include at least 2 directors from Mauritius.
Ashton provides professional resident directors who will chair board meetings, facilitate the opening of bank accounts and act as signatories to the Mauritian bank account.
How Ashton can service you as a management company?
We advise you to make the best decision and assist you in meeting your objectives strategically with the best alternative outcome. We provide a hassle-free approach for you to set up your company in Mauritius. We leverage our international and local market expertise to offer you a global solution for all your needs.
We are just a call away +(230) 460 0439 | +(230) 5 509 0439 or email us at email@example.com