In preparation for your Mauritius company formation, it’s crucial to familiarize yourself with the diverse business entity options available in Mauritius. Two prominent offshore entities to consider are the Global Business Corporation (GBC) and the Mauritius Authorized Company (MAC).
Global Business Corporation (GBC): For those seeking to establish a new company in Mauritius to engage in financial services, Fionza Consultants highly recommends incorporating a Global Business Corporation (GBC) in Mauritius. GBC entities are licensed by the Financial Services Commission (FSC) and are subject to regulation under the Companies Act 2001 and the Financial Services Development Act 2001.
Previously, there were two categories, GBC 1 and GBC 2, where the former was considered a resident company for financial services (taxable), and the latter was a non-resident company suited for trading and holding (tax-exempt). However, GBC 1 and GBC 2 distinctions no longer apply.
To secure a GBC license, our international clients must demonstrate economic substance in Mauritius, including having two local resident directors, one shareholder, a corporate bank account in Mauritius, maintaining accounting records in Mauritius, and auditing annual financial statements in Mauritius, among other requirements.
GBCs that meet these economic substance criteria are entitled to an 80% tax exemption regime on various income sources, including foreign dividends, foreign-sourced interest income, and more. Additionally, obtaining a Tax Residence Certificate enables Mauritius GBCs to benefit from Double Taxation Avoidance Agreements with 50 other countries.
Mauritius Authorized Company (MAC): For businesses engaged in international trade, investment holding, intellectual property ownership, and non-financial services, Fionza Consultants recommends the incorporation of a Mauritius Authorized Company (MAC). MACs are regulated under the Financial Services Act 2007.
Requirements for MACs include having one director (local not necessary), one shareholder, one registered local resident agent, conducting business primarily outside Mauritius, and maintaining a management team located outside Mauritius.
As a non-resident company, MACs are exempt from corporate tax, capital gains tax, and withholding tax in Mauritius. They are only required to file an annual return with the Mauritius Revenue Authority within 6 months before the end of their financial year and submit a financial summary to the Financial Services Commission. Additionally, records of such companies are not publicly accessible.