If properly structured, a Mauritius Global Business Category 1 (GBC1) Company can be used by foreign companies to structure investments and projects in countries with which Mauritius has signed double tax agreements, including China, India, Singapore and the UK. The following information will help you determine whether a Mauritius GBC1 company is the optimum corporate structure to fulfill your international business objectives:
Advantages of a Mauritius GBC1 company
- Mauritius company formation is a simple and cost-effective solution. According to the 2013 Doing Business Survey by the World Bank, Mauritius is the world’s 20th easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business;
- A minimum of one shareholder is required, who can be of any nationality and need not be resident in Mauritius. Corporate shareholders are permitted. Additionally, Mauritius was positively ranked as the world’s 8th freest economy according to the 2013 Index of Economic Freedom by The Heritage Foundation, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets;
- A Mauritius GBC1 is considered tax-resident in Mauritius, and corporate profits are taxed at 15%. However, tax credits are available which may bring the effective tax rate down to 3%. A GBC1 is not subject to capital gains tax or withholding tax;
- Unlike a Mauritius GBC2 company, a GBC1 enjoys access to over 30 double tax treaties signed with countries around the world;
- There are no minimum capital requirements for a Mauritius GBC1.
Disadvantages of a Mauritius GBC1 company
- Mauritius is perceived as a ‘tax haven’ jurisdiction. In addition, Mauritius is the 52nd least corrupt country in the world, according to the 2013 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- In accordance with the Mauritius Companies Act 2001, a Mauritius GBC1 requires a minimum of two resident directors in order to access Mauritius’ double tax avoidance treaties. Corporate directors are not permitted;
- In accordance with Mauritius accounting and tax law, a Mauritius GBC1 is required to submit annual audited financial statements to the Mauritius Financial Services Commission and income tax authorities;
- A Mauritius GBC1 is required to conduct principle bank accounts and transactions through a Mauritius corporate bank account;
- Mauritius is poorly ranked as the world’s 45th most competitive economy in the World Economic Forum’s Global Competitiveness Report 2013 – 2014.
View the complete guide to Mauritius company incorporation.