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Mauritius stands out as a politically stable jurisdiction and the premier international financial and business center in the Indian Ocean region, boasting a robust liberal economy, a well-regarded banking system, and an extensive array of professional services
Its business-friendly and adaptable regulatory environment offers reliability and assurance for the establishment of global companies.
Under the Companies Act of 2001 and the Financial Services Act of 2007, businesses have the opportunity to seek a Global Business License (GBL), enabling them to engage in operations beyond the jurisdiction while enjoying favorable tax incentives.
Companies granted the Global Business License are required to adhere to the activities outlined in their Business Plan submitted to the Financial Services Commission (FSC) during the licensing process or as subsequently amended and communicated to the FSC.
GBL companies are permitted to engage in various financial services activities, including banking, insurance, fund management, collective investment schemes, and trust management, upon obtaining the relevant licenses.
Moreover, GBL companies can take advantage of an attractive tax regime and an extensive network of double taxation treaties.
The conditions for obtaining a Global Business License (GBL) for companies in Mauritius involve several requirements. Firstly, GBL companies must employ a reasonable number of qualified individuals to carry out their core income-generating activities, along with meeting a minimum level of expenditure in Mauritius proportionate to their operational scale.
For instance, businesses engaged in fund management must annually spend at least USD 30,000 and have between one to three employees in Mauritius, depending on the assets under management. Similarly, financial institutions like insurance companies and intermediaries such as investment advisors are obligated to maintain a certain level of annual expenditure in Mauritius and employ one to three individuals based on their business activities.
Regarding taxation, the previous Deemed Foreign Tax Credit (DFTC) regime, which allowed for an 80% tax credit on various income types, has been replaced. GBL companies are now subject to a local tax rate of 15%.
To qualify for a GBL, a company must fulfill at least one of the following criteria: maintain office premises in Mauritius, employ at least one full-time resident staff member at an administrative/technical level, have dispute resolution clauses mandating arbitration in Mauritius, hold assets worth at least USD 100,000 in Mauritius, list shares on a licensed securities exchange, or maintain yearly expenditures in Mauritius consistent with similar corporations managed from Mauritius.
Mauritius also offers the option of structuring companies as protected cell companies, where the assets and liabilities of each cell are kept separate from others, providing protection from creditors and serving as a favorable vehicle for investment and fund management purposes.
Overall, GBL companies in Mauritius enjoy favorable tax treatments, access to tax treaties, exemptions on certain income types, and protection mechanisms, making them attractive options for various investment and financial activities.
Company incorporation in Mauritius can be completed either online through the Mauritius Network Services portal or by submitting the necessary documents directly to the Registrar of Companies.
For online incorporation, individuals must register with Mauritius Network Services at the specified URL. Before incorporation, it's crucial to ensure the availability of the desired company name.
Applicants must fill out the prescribed "Application for incorporation of a company" form (Form 1) and submit it along with Forms 7, 8 (if applicable), and 9. These forms include consent forms from directors, secretaries, and shareholders.
The application form should include details such as the proposed company name, residential addresses of directors and shareholders, company type (limited or unlimited, private or public), registered office address, and business activities.
Accompanying documents should include a certified copy of the company's constitution (if applicable), consents of directors, secretaries, and shareholders, and, if applicable, documents related to a company limited by guarantee.
Upon compliance with the Act and payment of fees, the Registrar issues a certificate of incorporation and assigns a unique company number. Additional documents such as the Certificate of Reservation (if any), passport copies for nonresidents, residence permits (if applicable), proof of addresses, and proxies (if applicable) may be required.
Key points to note include the necessity for at least one director to be a resident of Mauritius, approval required from the Financial Services Commission for certain types of licenses, automatic registration as employers with the Mauritius Revenue Authority upon incorporation, and the issuance of a Business Registration Number (BRN) and E-Certificate of Incorporation, which serves as a valid KYC document under Mauritian legislation and can be verified online.
GBL companies can be established with a minimum of one shareholder, who can be individuals or legal entities, residents or non-residents, with no restrictions. While details of shareholders are not publicly disclosed, beneficial owners must be disclosed to the Commission even if shares are held by nominees.
For a GBL company, it's necessary to have office premises in Mauritius or employ at least one full-time administrative/technical staff member who is a resident of Mauritius. Alternatively, the constitution must include a clause for resolving disputes through arbitration in Mauritius.
GBL companies are required to hold an annual general meeting, with the first meeting held within 18 months of incorporation. Subsequent annual meetings should take place within 6 months after the balance sheet date and not later than 15 months after the previous annual meeting.
Yes, electronic signatures are permissible. Accounting & Tax Filing: A GBL company must maintain its accounting records at its registered office in Mauritius. It is obligated to submit an annual return along with Audited Financial Statements (AFS) to the FSC within 6 months of the fiscal year-end (or within 3 months for certain financial services license holders). The Financial Statements must be audited in compliance with International Standard on Auditing (ISA) by an auditor licensed by the Financial Reporting Council (FRC). Additionally, a GBL company is subject to taxation in Mauritius and must file an annual tax return.
Corporate Income Tax: The previous Deemed Foreign Tax Credit (DFTC) regime, which granted an 80% unilateral foreign tax credit to GBC1 companies, reducing the effective income tax rate to 3%, has been discontinued. Instead, GBL companies are now subject to local taxes at a rate of 15%. However, an 80% Partial Exemption Regime remains available for certain income streams, provided that economic substance requirements are met. This regime allows for a reduced effective tax rate of 3% on income such as foreign dividends, interest income, and income from ship and aircraft leasing activities.
Personal Income Tax: Resident individuals in Mauritius are subject to a 15% income tax rate. To qualify as a tax resident, an individual must spend more than 6 months in the country in a year. However, expatriate employees of GBL companies enjoy a reduced personal income tax rate of 7.5%. Additionally, each GBL company is permitted to have 2 expatriate employees who can import cars and household goods duty-free.
Other Taxes: Mauritius does not levy capital gains tax, real property tax, inheritance tax or estate duty, capital transfer tax, gifts tax, or wealth tax. However, there is a Value Added Tax (VAT) of 15% imposed on the supply of goods and provision of services.
After Company incorporation, you will receive below documents
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