Mauritius offshore companies

Clients that wish to setup tax efficient companies in Mauritius have two options: setup a GBC1 or a GBC2. While the second is the classic offshore company; the second is a tax resident company that can benefit from an 80% exemption of corporate income tax. Both entities are optimal solutions for Clients involved in international trading and holding activities.

Advantages

  1. GBC1 and GBC2 companies pay a corporate income tax of 0% and 3% respectively on their global income, much lower than the 15% tax imposed on other resident companies;
  2. Furthermore, both companies are also exempt from paying i) withholding tax on earning interest and dividends remitted abroad and ii) capital gains tax;
  3. While a GBC2 company is only allowed to do business outside of Mauritius, GBC1 companies that have been approved by the Mauritius FSP may trade with local companies;
  4. GBC1 companies can also take advantage of Mauritius double-taxation avoidance treaties as they are considered tax resident companies;
  5. GBC2 companies are not required to file annual financial statements, provided that they submit a financial summary to the Mauritius FSC;
  6. GBC1 and GBC2 are optimal structures for Clients that are seeking privacy, as company records are not available to the public.

Disadvantages

  1. Mauritius is still considered as a tax haven country, therefore companies incorporated in the island may attract additional scrutiny from tax authorities and banks;
  2. GBC1 companies are required to appoint two resident directors that must be actively involved in the management of the company, and may be frequently required to provide additional evidence that are managed from Mauritius;
  3. Furthermore, GBC1 companies must i) have a local bank account and ii) submit audited financial statements to the Mauritius FSC;
  4. Both GBC1 and GBC2 are required to appoint a local company secretary/authorized agent, which must have been pre-approved by the Mauritius FSC;
  5. GBC2 companies are not allowed to be involved in the following activities:
    • Banking;
    • Financial services;
    • Insurance;
    • Company formation services.
  6. Furthermore, GBC2 companies are not allowed to trade with local customers in Mauritius.

Table of Comparison between GBC1 and GBC2

 GBC1GBC2
Corporate structuring considerations
Minimum number of shareholders?11
Wholly foreign-owned?YesYes
Minimum number of directors?21
Corporate director allowed?NoYes
Resident director required?YesNo
Resident company secretary or authorized agent required?YesYes
Business activities considerations
Legally tax exempt in Mauritius?NoYes
Corporate income tax?0%3%
Can trade with local customers?YesNo
Can do business within Mauritius?YesNo
Can open a local corporate bank account?YesYes
Can open bank account overseas?Only 2nd accountYes
Can rent local office?YesYes
Can hire staff in Mauritius?YesYes
Allowed to own shares in Mauritius companies?YesNo
Can apply for immigration visa?YesYes
Fees and timelines
Shelf companies available?YesYes
Total engagement timelines?10 weeks9 weeks
Draft invoiceUS$17,600US$9,785

Contact us

For additional information on our company registration services in Mauritius, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon
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