Mauritius Offshore Incorporation

Mauritius Offshore Incorporation

Mauritius has emerged as a prominent offshore financial services center aided by a progressive regulatory framework and government’s fiscal incentives and policies to attract investments. Mauritius also enjoys a strong reputation as a regulated center for those engaged in legitimate business and extends guaranteed confidentiality through express provisions.

Global Business Company Category 1 (GBC 1)
Incorporated under the Mauritius Companies Act 2001 GBC 1 companies, those holding a category 1 Global Business License, are treated as residents of Mauritius for the purpose of taxation. Therefore unlike GBC 2 companies GBC 1 entities are liable to pay taxes on their earnings. As a resident of Mauritius they are entitled to the benefits of the extensive tax treaties. A GBC1 may be locally incorporated or may be registered as a branch of a foreign company. The business of a GBC1 Company must be conducted in foreign currency and GBC1 companies cannot engage in business in Mauritius.

Features of GBC 1•The minimum paidup capital is US$1 and the usual authorized share capital is US$ 1 million with all of the shares having a par value. The minimum issued share capital is 2 shares of par value. While the USD is the standard currency, any currency is permitted except Mauritius Rupees.
•Registered shares, preference shares, redeemable shares and shares with or without voting rights are permitted.
•Requires minimum of one Director who must be a natural person, and access to treaty benefits need at least two local directors.
•A minimum of one shareholder is required, who can be of any nationality and need not be resident in Mauritius. Corporate shareholders are permitted.
•A qualified resident company secretary must be appointed.
•Accounting records and statutory documents including register of members, debenture holders and officers must be kept at a registered office in Mauritius.
•A qualified registered agent must be appointed.
•Required to file audited annual accounts within six month of the financial year end.
•Meeting of directors can be held anywhere but must be held in Mauritius for access to benefits of treaties.
•Meeting of shareholders must be held in Mauritius and Proxies are allowed.
Merits of GBC 1
•GBC 1 companies are subject to 15% tax on income, but with tax credits the effective tax rate drops to as low as 3%.
•Neither capital gains nor withholding taxes are levied.
•Change in domicile is permitted.
•Subject to possession of a Tax Residency Certificate, GBC 1 companies have access to benefits of over 24 DTAs, some of the important partner countries include China, India, Luxembourg and Thailand.
•No limit on the carry forward of tax losses.
•Royalties ,interests and service fees payable to foreign affiliates are allowed as expenses provided they are backed by genuine records.
•Interests paid on deposits in Banks are tax exempt.
•Dividends paid by a GBC1 are tax exempt.
•No stamp duties, registration duties or levies
•Expatriate staffs are allowed and there exists a concessionary personal income tax rate for expatriate staff
Limitations of GBC 1
•A license must be obtained to undertake banking or insurance business or solicit funds from the public
•Beneficial owners must be disclosed to that authorities but it is not made available to public
•GBC1 companies cannot engage in business in Mauritius

Global Business Company Category 2 (GBC 2)
Mauritius GBC2s are companies incorporated under the Companies Act 2001 with a category 2 Global Business License .A GBC2 is a private entity that conducts business outside Mauritius and may not carry on business in Mauritius (subject to a number of statutory exceptions). A GBC2 may be locally incorporated or registered as a branch of a foreign company. GBC2s are regulated by both Mauritius Companies Act 2001 and the Financial Services Act 2001.

Confidentiality is strictly observed in terms of the FSD Act. The identity of the beneficial owner needs to be disclosed only to the registered agent and to the banker if a bank account is required in Mauritius. The documents with the registrar of companies are accessible only to the shareholders of the company. Therefore the identity of the beneficial owner can largely remain confidential. A GBC2 is highly suitable vehicle for holding and managing private assets.

Features of GBC2
•Minimum capital requirement is USD 1
•Fractional shares are allowed while Bearer shares are not allowed
•Shares may be subscribed by nominees
•Minimum one Shareholder and the shareholder may be an individual or corporate
•A GBC2 may acquire, redeem, reissue or purchase its own shares
•Minimum one director who may be individual or corporate
•Appointment of Company Secretary is optional
Merits of GBC2
•Tax exempted therefore the tax cost of a GBC2 is basically the foreign tax suffered
•No withholding tax on dividends
•No capital gains tax
•No stamp duty on transfer of shares
•There is no requirement for Local Resident Director or Shareholder
•Free repatriation of earnings
•Migration of a foreign company to/from Mauritius is permitted
•Not required to file accounts with the authorities
•Shareholders and Directors meeting can be held anywhere
•Nominee shareholder and guaranteed confidentiality facilitates complete privacy
Limitations
•GBC2 companies do not have access to the network of Double Taxation Agreements of Mauritius.
•It is not permitted to raise capital from the public
•It cannot provide financial services or other services as fiduciary in any investment fund or any collective investment scheme.
•It cannot carry out business of company formation, administration and management or provide professional nominee or trusteeship services.

Rikvin Offshore offers a convenient way to incorporate your company. We provide a comprehensive range of services to both local and international clients. When you want to set up an offshore Company, you can rely on us to be there every step of the way for you. For more information, please visit http://www.rikvinint.com or call us at 65- 64388887

Business | October 28th, 2009