Company Incorporation
Mauritius

The advantages of using Mauritius are:

• A time zone of GMT +4 which makes it a convenient bridge between Africa/Europe and Asia

• Economic and political stability

• Regulated jurisdiction

• Modern and comprehensive legislations for global business activities

• Not on the OECD blacklist

• Not a tax heaven but a low tax jurisdiction

• Expanding network of Double Taxation Treaties

• No exchange controls

• Commitment to anti-money laundering regulations

• Excellent telecommunication and business infrastructure

• Pool of qualified professionals bilingual in English and French

• Low cost of administration and support staff

Summary:

• There are two types of offshore companies: the GBC1 and GBC2 (IBC).

• Both GBC1 &2 can have a single director and shareholder.

• For a GBC2 a body corporate is accepted as sole director.

• Bearer shares is not allowed for GBC2 and GBC1.

• There is no public disclosure of documents for both type of companies. Likewise there is no minimum capital requirement.

• GBC1 companies need to file annual audited accounts and is liable to corporate tax at 3% effective rate. It is considered as tax resident and can thus avail of the double taxation avoidance treaties.

• The annual government fees for GBC2 is US$ 200 while that for GBC1 is USD 2000.

• Check here further details about GBL1, GBL2 and Trusts.

Incorporation

Global Business Licence 2 Company (GBL 2) USD 1,600
Including the 1st year annual licence fee of USD 135 payable to the FSC, registration fees of US$65 to the Registrar of Companies, fee for legal Certificate, fee for Certificate of Incorporation and name reservation and the first year's Registered Agent and Registered Office fee.

Options and Annual management and licence fees

Registered Office/Agent: $600 p.a. 
Apostille: $150   (required for bank acc)
Nominee Director: $300 p.a.
Nominee Shareholder: $300 p.a. 
Power of Attorney: $150   (only if you have selected a nominee service)
Notarization of Memorandum & Articles of Association: $150
Legalization: $150
Mail Forwarding: US$400  payable annually in advance, plus the actual cost of postage. We take a US$50 deposit to cover and then invoice for a further sum when this is used up.
DHL/FedEx Courier: $100 

Nominee bank Signatory: $1000 / year if the company is incorporated with nominee service
(read more here)
Bank account + debit card setup $700

With the GBC2 companies we can open banks accounts in any jurisdiction. In Mauritius, as indicated above, only prime banks are allowed to operate. We can therefore open bank accounts with Barclays, HSBC, Deutsche Bank, Standard Chartered etc.

Additional services
(ie correspondence with shareholders, invoicing of clients, payments of dividends etc……..) $150 / hour

Annual maintenance fees after first year:
  Registered Office/Agent: $600 p.a. 
  Government Licence: $200 p.a
  Nominee Director: $300 p.a.
  Nominee Shareholder: $300 p.a. 

Total: $800     
(plus fees for nominee services if supplied)

Others Fees
Fees are subject to actual time costs. The formation fee covers all legal documentation and the opening of a bank account for the company and where appropriates the trust. The annual directors/ trustee fee is basic fee which covers the director’s/trustee fee is a basic fee which covers the directors’/trustees ongoing responsibility and duties to the shareholders/beneficiaries. Additional services, such as correspondences with shareholders, payments of dividends, distributions to beneficiaries and similar services will be charged on a time cost basis.
Termination of a company Fees:
A minimum of fees of US$ 400 will be charged to terminate a company. This is in addition to any fees due for the year in the normal course of events.
 

Mauritius is a fast expanding offshore financial centre. It has not been classified as a tax haven by the OECD and is not party to any exchange of information agreements with any country. Its expanding network of double taxation treaties has made it the major route for investments into China , India , Indonesia and South Africa.

The coming into effect of the European Tax Saving Directives and the tightening of legislations in traditional offshore jurisdictions like the BVI has made Mauritius an attractive alternative jurisdiction. This is further enhance by its strong liberal economy and reputable banking system, its state of the art telecommunication and above all, its pool of well qualified professionals trained in Europe and the US

Mauritius from the start has put itself on a different level from such jurisdiction as Seychelles, Panama, Belize , Turks & Caicos, Vanuatu, Barbados, Anguilla, St Lucia etc. We are a jurisdiction of substance with a diversified economy comprising of a modern agricultural , manufacturing and service industry. Our banking sector is more than 100 years old and only prime banks such a Barclays , HSBC, Deustche Bank, Standard Chartered, ING etc operates here. We have also an extensive network of Double taxation avoidance treaties with most west European, Asian & African countries. We are the favourite route for investment/ mutual funds investing in India and China. All the big names in the funds industry like Oppenheimer, Merryl Lynch, Schroders etc are based in Mauritius. Moreover Mauritius has not been black listed by OECD. It is also signatory to many conventions on combating money Laundering such as FATF, Basil convention. Mauritius is not however party to any convention of Mutual Assistance on Exchange of Information.

Lastly we have a local pool of qualified staff who are UK trained lawyers, accountants and company secretaries which is support by reputable firms of Auditing, Insurance. Our regulator, the Financial Services Commission is well regarded on the international scene and is member to many regulators Associations.

For all these reasons we are seen as a more credible jurisdiction and we are not allowed to provide shelf companies and to ensure that the beneficial owner of the company is known to us and that we have all the required due diligence documents on him.

You will note that Mauritius is not party to any Tax Information Exchange Agreement or Mutual Legal Assistance in Criminal Matters Treaties, which is a good selling point for Mauritius.
 

Also available: Commercial trusts and protected cell companies:
The Mauritius Trusts Act enables the creation of purpose trusts (e.g, trading trusts). Besides, trusts are increasingly being recognised and used often for "off balance sheet" transactions, pension funds and for syndicated loans. The PCC Act is attractive for captive insurance and investment funds. The availability of double taxation treaties makes Mauritius a jurisdiction of choice for international investors.

Take this example: a Singapore company wishes to execute a loan with a lender in another country. The lender routes the loan through Mauritius, so that the beneficial owner of the loan interest is a Mauritius company. Normally, when interest is paid by a Singapore debtor to an overseas lender, withholding tax is levied in Singapore on such interest payments to entities with treaty countries at the rate of anywhere between 10-15%. However, under the Singapore/Mauritius tax treaty, Singapore forgoes its right to withhold tax on the interest. The interest is therefore paid to the Mauritius company free of tax. Hence, Mauritius is an ideal route for structuring Singapore interest yield products such as debt securities, debentures, government securities etc.
 

FACT SHEET ON

Global Business Category 2 (GBC2)

Regulatory framework

Category 2 Global Business Companies (GBC2) which are similar to the BVI type International Business Companies are governed by the provisions of the Companies Act 2001.  GBC2 companies are cost-effective, flexible and wholly tax-exempt vehicles for structuring of client’s investments. Information relating to a GBC2 is confidential and not available for public inspection.

Key features of a GBC2

• may issue shares with or without a  par value (sec.345) or fractional shares

• all information on  GBC2 are confidential and not available for public inspection

• may have shareholders or directors who are corporate bodies or natural persons

• may be limited by guarantee or limited by shares or unlimited

• may be managed by its members or by a Board comprising one or more directors

• may be set up with partnership-type characteristics e.g. limited life provisions

• may but does not need to have a constitution or bye-laws

• it does not require file annual returns or audited accounts

• does not need to have local director, shareholder or secretary

• the minimum number of shareholder and  director required is one.

The GBC2 Company shall be a private company and shall at all times have a registered agent, and a registered office in Mauritius. Our local company is licensed as a management company for the purposes of providing these services. 

A GBC2 Company is prohibited from:

• dealing with Mauritian residents or in the Mauritian Rupee;

• owning any interest in immovable property situated in Mauritius;

• having as beneficial owner any person resident in Mauritius; or

• holding shares or debentures or any interests in a domestic company.

Fiscal regime

• A GBC2 Company is non resident for tax purposes and is therefore not subject to any tax in Mauritius on its income, or dividends or interest paid to a non-resident or on any royalties, rents or compensation paid by the company. Moreover any gains or profits derived from the sale of shares, debt obligations or other securities of the Company are also exempt from tax.

• A GBC2 company is exempted from the payment of any duty, levy (sec 42(4) FSDA 2001.

• A GBC2 is not allowed to access the benefits available under the double taxation avoidance treaties.

Continuation/migration/merger

• a GBC2 company may transfer its incorporation to another jurisdiction ( S.302)

• a foreign company may continue as a GBC2 company in Mauritius ( S. 296)

• a GBC2 company may merge or consolidate with another/other companies incorporated in another jurisdictions {S 345 XIV Sch. (4) }

Incorporation, cost and time-frame

A  GBC2 company may be established fairly quickly - within two days.  The procedure is to send us the duly signed Application Form with the required remittances and supporting documents (bank reference, passport copy and proof of domicile of beneficial owner/s, CV, business plan, the consent of the directors and shareholders- forms 7 & 9)

Comparison of some offshore centers (excell sheet).

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For your convenience, we have included a Cost Calculator in the order form:

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Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.

Please go to our Uses of offshore Companies Page where you will find interesting information on the benefits of using offshore companies and trusts for business and personal use, links to information on other locations and details of our products and services.