A Global Business Corporation (GBC) is a business entity created in Mauritius, especially for foreign investment and commerce. These enterprises attract businesses looking to invest in Africa, Asia, and many other locations because they benefit from tax breaks.
Incorporating a business is made simple by the GBC framework, and investors can gain from the nation's advantageous geographic position, highly qualified workforce, and stable political and economic climate.
Introduction to Global Business Corporation (GBC) in Mauritius
The Financial Services Commission has granted a license to A Global Business Corporation, formerly GBC1, which was established in compliance with Mauritius's Companies Act of 2001.
GBCs are permitted to engage in a variety of tasks, including but not restricted to trading, holding investments, holding onto intellectual property, managing funds, and other similar tasks. All GBC documents are classified and not available to the public for review.
This kind of corporation is usually established by foreign investors for financial services and investment holding enterprises.
Benefits of doing business as a GBC in Mauritius
What does a GBC provide that other organizations do not?
Both onshore and offshore businesses can benefit from doing business in Mauritius, but what makes a Mauritius Global Business Corporation unique?
Adaptable corporate structure
GBCs may be set up as a limited company, a partnership, or a trust, among other organizational forms. Investors now have the freedom to select the kind of firm and create a corporate structure that best meets their requirements.
The most common structure for foreigners is the Limited Company (LC).
The ability to successfully conduct business both inside and outside of Mauritius. GBCs must conduct business outside of Mauritius and are only permitted to do so with Mauritian citizens in specific circumstances where the laws allow.
In contrast, an Authorized Company owned by a non-Mauritius person typically does not function within Mauritius and is also remotely managed and controlled from outside.
Special tax regimes
Global Business Corporations pay tax at a rate of 15%, but they can take advantage of a partial exemption system (applicable to some eligible income activities) that exempts 80% of their income streams from paying tax, provided they meet certain content conditions.
General advantages for entrepreneurs doing business in Mauritius
A tiny island nation in the Indian Ocean, Mauritius is renowned for its stunning beaches, warm climate, and rich culture.
Business-friendly regulatory environment
Thanks to the government's policies to attract foreign investors, a favorable business environment has been created.
For instance, Mauritius has developed a number of organizations, such as the Mauritius Business Growth Scheme (MBGS), to provide finance, training, and mentoring to qualified Small and Medium Enterprises (SMEs) in order to support them financially.
Economic expansion and political stability
In Mauritius, a parliamentary democracy, the president serves as the head of state and the prime minister as the head of government.
Experienced and reliable workforce
The Mauritius labor force is renowned for its competent labor, fluency in both French and English, and strong work ethics. Over 90% of the population is literate, which is impressive, and there are plenty of university and technical college graduates in the nation.
International market accessibility
Mauritius has ratified several trade agreements with different nations and areas. Additionally, the nation offers a strong port and airport infrastructure to help enterprises import and export commodities successfully.
Requirements for Establishing a GBC in Mauritius
In order to establish a Global Business Corporation (GBC) in Mauritius, a number of conditions must be satisfied. Examples of these include:
Conditions for eligibility
The main purpose of a GBC in Mauritius is to conduct business operations outside of the island nation, although your company is still recognized as a tax resident of Mauritius. What are the requirements for forming a Mauritius global company corporation with this feature?
Registered office
The business must have a registered office in Mauritius. This location serves as the business's principal place of business for legal and administrative matters.
Tax residency
Your GBC must be managed and controlled from Mauritius if you are a tax resident. You are qualified for the advantageous tax regime provided by Mauritius.
Business activities
A GBC shall carry out its primary revenue-generating operations within or from Mauritius. This covers trading, maintaining investments, managing assets, and granting intellectual property licenses.
Material needs
The GBC must have a specific amount of the substance in Mauritius, which requires maintaining a physical office there, hiring locals, and paying operational costs corresponding to the volume of activities the firm undertakes.
License
To be considered a GBC and engage in commercial activities, you must get a Global Commercial License from the Financial Services Commission (FSC).
The need for management
A Management Company, the link between your business and the FSC, must manage a GBC. You must appoint two local directors who are citizens of Mauritius and have the necessary qualifications, honesty, analytical prowess, communication abilities, etc.
Registration process:
The following steps are generally involved in setting up a Global Business Corporation in Mauritius:
Decide on the name and submit a reservation form
Prepare documents, including the Memorandum and Articles of Association, the director’s consent form, the shareholder’s consent form, and other relevant documents.
Submit necessary documents to the Registrar of Companies
Pay the required fees at the time of submission of the application.
Once the application is received, the Registrar of Companies will review it and approve it if all requirements are met through a letter of intent. After approval, the GBC will be registered and a Certificate of Incorporation will be issued.
Your company must then apply for a license from the Financial Services Commission (FSC) to conduct its business activities as a Mauritius Global Business Corporation.
Capital requirements
In order to establish a GBC in Mauritius, there are no specified minimum capital requirements. However, the GBC needs sufficient funding to carry out its operations and fulfill its duties.
Who should set up and run a Global Business Corporation
Individuals, partnerships, trusts, corporations, and other legal entities may establish a global business corporation in Mauritius. The following people or organizations may find GBCs to be suitable for their needs:
International companies
Companies from abroad who want to grow their operations internationally and tap into new markets can establish a GBC in Mauritius. A popular site for international offshore firms, Mauritius boasts double taxation treaties in addition to an advantageous tax policy.
Small and medium-sized businesses
A GBC is a viable option for business owners starting new ventures. Mauritius is desirable for start-ups and small businesses because of its adaptable corporate structure, ease of doing business, and many incentives focused on SME development.
Investment capital
GBCs can be used to hold and manage investments on behalf of investors because Mauritius has become a center for investment funds.
High-net-worth people
For wealthy people, a Global Business Corporation in Mauritius is also advised. This corporation can be a useful tool for high-net-worth individuals wishing to manage their wealth effectively while lowering their tax obligations and gaining the optimum amount of confidentiality.
It is significant to remember that the precise applications of GBCs may change based on the requirements and goals of the person or organization.
GBC accounting and auditing requirements in Mauritius
The main accounting and auditing criteria that GBCs must adhere to are listed below:
Bookkeeping: The GBC must keep accurate records of the company's financial situation and performance for the last seven completed accounting periods. The International Financial Reporting Standards (IFRS) require that this data be maintained.
Financial statements: By the standards of IFRS, your firm must annually submit financial statements (in Mauritius currency unless otherwise permitted by the Registrar), including a profit and loss account, a balance sheet, and a cash flow statement.
Auditing: A registered auditor with the Financial Reporting Council (FRC) must be chosen for the audit. The Financial Services Commission must receive the audit report from the auditor and the financial statements by the International Financial Reporting Standards.
Annual report: The GBC must submit an annual report to the Registrar of Companies unless exempted by applicable regulations.
Key points
In conclusion, those wishing to develop their international operations can greatly benefit from establishing a Global Business Corporation (GBC) in Mauritius.
Mauritius is the ideal site for foreign investment due to its excellent tax structure, political and economic stability, strategic position, and business-friendly climate. A GBC in Mauritius can offer a tax-effective and legally compliant framework for global corporate operations with the right design and execution.
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