Global Business Company in Mauritius

Mauritius, renowned as an International Financial Centre, has established itself as a global hub for financial services and international business. At the heart of its success lies the Global Business Company (GBC) framework. This framework, designed to attract foreign investments and foster economic growth, is pivotal in Mauritius' economic landscape. This article will explore the GBC framework, its different categories - GBC1 and GBC2, the essential license requirements, and the benefits it offers to businesses and investors seeking a strategic foothold in the international market.

See more: Start an GBC1 in Mauritius

What is a Global Business License (GBL) Company?

A. Defining the Global Business License (GBL) Company

In Mauritius' thriving international financial sector, the Global Business License (GBL) Company stands as a cornerstone of the regulatory framework. A GBL company, offered in two categories GBC1 and GBC2, is a specialized license that enables companies to conduct various international business activities within and from the jurisdiction of Mauritius.

GBC1 companies are primarily designed for those entities that wish to conduct business outside of Mauritius while benefiting from the island's advantageous tax treaties and a well-regulated financial environment. This category often includes holding companies, investment vehicles, and entities involved in trading and financial services.

GBC2 companies, on the other hand, are resident corporations engaged in a wide range of international activities, excluding certain local transactions. These entities require the services of a registered agent in Mauritius, typically a management company, which acts as an intermediary for the company's operations.

B. The Role of GBL Company in Mauritius

The GBC licenses play a crucial role in Mauritius' economic landscape by attracting foreign investments and promoting international business activities. Here are some key functions and benefits of these licenses:

1. Encouraging Foreign Investments: GBC1 and GBC2 licenses are instrumental in attracting foreign capital to Mauritius. They provide a tax-efficient platform for companies looking to invest, expand, or establish a presence in Africa, Asia, and other global markets.
2. Access to Double Taxation Agreements (DTAs): Mauritius boasts an extensive network of DTAs with numerous countries, making it a preferred destination for businesses aiming to mitigate double taxation on income, capital gains, and dividends.
3. Tax Residency and Treaty Benefits: GBC1 companies can obtain tax residency status in Mauritius, making them eligible for benefits under the DTAs. This tax residency often results in reduced withholding tax rates and facilitates international trade and investment.
4. Business Substance Requirements: To align with evolving global standards, GBC1 companies are encouraged to demonstrate a substantive presence in Mauritius. This includes having directors residing in Mauritius, maintaining a bank account within the country, and conducting certain operational activities on the island.

The Role of Global Business License (GBL) Company in Mauritius

The Global Business License is a vital instrument in positioning Mauritius as a favorable destination for international companies seeking to access diverse markets, enjoy tax advantages, and ensure compliance with global financial regulations. The GBC framework, with its GBC1 and GBC2 categories, reinforces the nation's reputation as a robust and well-regulated international financial center.

GBL (GBC 1 and GBC 2) Company

Mauritius, a prominent International Financial Centre, has established a regulatory framework that caters to the needs of international businesses seeking to operate within its jurisdiction. The GBL (GBC 1 and GBC 2) Company system plays a pivotal role in attracting foreign investments and promoting international business activities. This delves into the distinctions and nuances of GBC1 companies, their features and structures, as well as GBC2 companies and the vital role of registered agents within this framework.

GBL (GBC 1 and GBC 2) Company

A. Understanding GBC1 Companies

1. Purpose and Features

GBC1 companies are a specific category of entities within the GBL framework. Their primary purpose is to facilitate international business activities conducted outside of Mauritius while enjoying the island's favorable tax treaties and regulatory environment.

Key features of GBC1 companies include:

• Tax Residency: GBC1 companies are eligible for tax residency in Mauritius. This tax residency status ensures access to the benefits offered by Mauritius' extensive network of Double Taxation Agreements (DTAs). It's a significant advantage for businesses looking to minimize double taxation on income, capital gains, and dividends.
• Investment Holding: GBC1 companies are often used as investment vehicles, particularly for holding investments in other countries. This makes them valuable tools for investors and corporations seeking to expand their international portfolios.
• Banking and Financial Services: Many GBC1 entities are involved in banking and financial services, including fund management, insurance, and wealth management. They leverage Mauritius' strong regulatory framework to operate in a tax-efficient manner.
• Compliance with Economic Substance Requirements: In line with international regulatory standards, GBC1 companies are encouraged to demonstrate substantial business activities within Mauritius. This includes having at least two directors residing in Mauritius who can exercise independent judgment, maintaining their principal bank account in the country, and conducting certain operational activities on the island.

2. Legal Structures (Trusts, Société, Protected Cell Company)

GBC1 companies can take on various legal structures based on the nature of their business activities. These structures include:

• Trusts: Trusts established under the Trusts Act 2001 serve as popular vehicles for GBC1 entities. They can be structured as charitable, discretionary, or purpose trusts, providing flexibility for asset protection and wealth management.
• Société: The Société en Nom Collectif, a form of partnership, and "Société en Commandite Simple," a limited partnership established under the Code de Commerce Amendment Act 1985, are used by GBC1 companies for structuring investments in the global business sector. These structures offer unique benefits in terms of operational flexibility and liability.
• Protected Cell Company (PCC): Some GBC1 companies opt for the PCC structure. A PCC consists of cellular and non-cellular assets, ensuring legal segregation of assets attributed to each cell of the company, whether owned by individuals or corporate bodies. This structure is particularly valuable for risk management and asset protection.

B. GBC2 Companies: An Overview

GBC2 companies are another category within the GBL framework, distinguished from GBC1 entities by specific characteristics and requirements.

1. Distinctions from GBC1

GBC2 companies are primarily resident corporations conducting international business activities but excluding certain transactions with residents of Mauritius. Unlike GBC1 companies, GBC2 entities are not eligible for tax residency in Mauritius and do not have access to the same tax treaty benefits. However, they offer advantages for businesses looking to establish an international presence.

2. Registered Agents in GBC2

One critical aspect of GBC2 companies is the requirement for a registered agent. These entities must engage a registered agent based in Mauritius, typically a management company. The registered agent acts as an intermediary and plays a vital role in facilitating the operations and compliance of GBC2 companies within Mauritius.

The registered agent assists in various functions, including:

• Compliance: Registered agents ensure that GBC2 companies adhere to Mauritius' regulatory requirements and maintain their good standing.
• Documentation and Reporting: They help prepare and submit necessary documentation to relevant authorities, ensuring that the company complies with legal and regulatory obligations.
• Local Presence: Registered agents provide a local presence for GBC2 companies, allowing them to meet operational and administrative requirements within Mauritius.

GBL License Requirements

Mauritius' Global Business License (GBL) framework offers a streamlined process for businesses seeking to establish themselves in the international financial sector. This section provides an in-depth exploration of the GBL license requirements, covering the application process, the role of management companies, the utilization of the online submissions platform, and the regulatory and compliance standards that govern this essential aspect of international business in Mauritius.

A. Application Process

1. Forms and Documentation

The application process for a GBL license requires the submission of specific forms and documentation to the Financial Services Commission (FSC). These documents serve as the foundation for evaluating the applicant's suitability and their proposed business activities. The documentation includes:

• The GBL application form, duly completed and signed by the applicant, provides essential information about the business and its intended operations.
• Certified supporting documents, which may encompass a range of materials, including business plans, financial statements, and other relevant information specific to the nature of the business activity. These documents help regulators assess the viability, legality, and compliance of the proposed operations.

2. Certified Supporting Documents

The importance of certified supporting documents cannot be overstated. These documents provide regulators with the necessary evidence to determine the legitimacy and feasibility of the business. Some of the common certified supporting documents may include:

• Business Plan: A comprehensive document outlining the business's structure, operations, and financial projections. It is essential for demonstrating the business's viability and compliance with regulatory requirements.
• Financial Statements: These statements offer insights into the financial health of the company. They may include balance sheets, income statements, and cash flow statements, providing a clear picture of the business's financial stability.
• Proof of Address: Documents establishing the physical location of the business or registered office in Mauritius, as required by regulatory standards.
• Identity and Background Checks: Information about the individuals and entities involved in the business, which typically includes passports, national identification documents, and business histories. These checks are vital for assessing the integrity and reputation of the applicants.

Certified supporting documents are GBL license requirements

3. Processing Fees

The GBL application process involves certain processing fees. The specific fees vary based on the type and category of the GBL being applied for. These fees are an essential part of the application process, and they contribute to the cost of evaluating and processing applications.

It's important to note that the processing fees can differ for GBC1 and GBC2 companies, and they may vary depending on the proposed activities and the overall complexity of the application.

The payment of processing fees is typically required at the time of submitting the application. Applicants and their management companies should ensure that they pay the correct fees as per the fee structure outlined by the relevant authorities.

Certified supporting documents and processing fees are integral components of the GBL license application process. These documents provide regulators with the necessary information to assess the legitimacy and compliance of the proposed business, while processing fees contribute to the cost of evaluating and processing applications. Applicants and their management companies must ensure that all documentation is complete and fees are paid accurately to facilitate a smooth application process.

B. The Role of Management Companies

1. Intermediaries in GBC License Applications

Management companies play a pivotal role in the GBL application process. They act as intermediaries, facilitating the submission and processing of license applications on behalf of their clients. These companies are typically well-versed in the regulatory requirements and nuances of the GBL framework, making them invaluable partners for businesses seeking to establish themselves in Mauritius.

Management companies offer several services, including:

• Guiding clients through the application process, ensuring that all necessary forms and documentation are prepared and submitted correctly.
• Liaising with regulatory authorities, such as the FSC, to address any queries or concerns that may arise during the application review.
• Streamlining the application process, leveraging their expertise to expedite the approval process.

2. Compliance and Due Diligence Duties

One of the primary responsibilities of management companies in the GBL application process is to conduct thorough due diligence on their clients. This entails collecting and verifying all necessary information about their clients to ensure that they meet the stipulated regulatory requirements and that their proposed business activities are sound and reputable.

Due diligence also extends to the background of the applicants, as regulatory authorities aim to ensure that the individuals and entities involved have a clean track record and adhere to international norms and standards.

C. Online Submissions Platform for License Applications

Mauritius has embraced technology in its quest to make the application process more efficient and accessible. The Online Submissions Platform is a secure web-based application that allows both applicants and management companies to submit GBL applications and make online payments through electronic payment instructions via commercial banks. This platform simplifies the submission process, reduces paperwork, and expedites the review and approval of applications.

The Guide to Online Submissions Platform provides a comprehensive protocol for online submissions, ensuring that applicants and management companies understand how to navigate the system and make the most of this digital approach.

D. Regulatory and Compliance Standards

The GBL license requirements are subject to strict regulatory and compliance standards. Management companies, as well as applicants, are expected to ensure that their business activities at all times conform to the stipulated conditions, the norms of honorable conduct, and the laws of Mauritius.

In addition to compliance with these fundamental requirements, GBL license holders must also adhere to international norms and standards, especially in areas such as anti-money laundering and combating the financing of terrorism. The FSC diligently monitors the conduct of business activities by licensees to ensure ongoing compliance and the maintenance of high standards in the international financial sector.

The GBL license requirements reflect Mauritius' commitment to maintaining a robust and well-regulated international financial sector. The application process, managed by competent management companies, streamlines the approval process, while the Online Submissions Platform embraces technology to enhance accessibility and efficiency. Regulatory and compliance standards underpin the GBL framework, ensuring that international businesses in Mauritius adhere to the highest ethical and legal standards.

The Global Business Company (GBC) framework in Mauritius offers a robust platform for international businesses seeking tax advantages, access to Double Taxation Agreements, and business substance requirements. GBC1 companies, with tax residency options and Tax Residence Certificates, stand out as attractive options for global enterprises. The GBC's role in promoting international business is pivotal, fostering economic growth and global trade. Looking ahead, Mauritius remains committed to enhancing the GBC framework, adapting to evolving global standards, and continuing to serve as a strategic hub for international business operations in the years to come.