Global Business
The Global Business segment of the Mauritius International Financial Services Centre provides convenience, fiscal efficiency and risk mitigation for companies engaged in international operations.
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The Global Business segment of the Mauritius Financial Services hub
Mauritius is one of the preferred jurisdictions for setting up an offshore company. The country is considered as an ideal platform for trading, investment and asset protection activities.
Investors wishing to access the advantages of the Mauritius IFC and who intend to invest outside Mauritius, with majority foreign ownership, the type of Mauritian entity to be set up will be a Global Business Company (GBC). The GBC is a tax-resident company, managed and controlled from Mauritius by a person who is not a citizen of Mauritius and such corporation proposes to conduct or conducts business principally outside Mauritius. It is mainly used to conduct the business of financial activities (subject to additional licenses) and for investment holding activities especially when income from overseas is mainly in the form of dividends, interest, and capital gains. A GBC is eligible for benefits from the network of Double Taxation Avoidance Agreements.
Financial activities inter alia include:
- Asset management
- Credit finance
- Custodian services
- Distribution of financial products
- Custodian services
- Factoring
- Leasing
- Retirement benefits scheme
- Superannuation funds
- Treasury management
- Such other financial business activity as may be specified in FSC rules
A GBC is required to establish substance and be effectively managed and controlled in Mauritius. 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 and 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 be audited in Mauritius; and
- Provides for meetings of directors to include at least 2 directors from Mauritius.
When assessing these substance requirements, the Financial Services Commission (FSC) will consider the nature and level of core income generating activities conducted (including the use of technology) by the GBC. When determining what is intended by “a reasonable number of suitably qualified persons” and “a minimum expenditure which is proportionate to its level of activities”, the FSC will make the assessment on a case by case basis and will look at the specific circumstances of each GBC.
Useful Links
Financial Services Act 2007
Licensing criteria