There are different business company categories in Mauritius. The two most famous categories are GBC1 and GBC2. In Mauritius, GBC1 is termed as “Global Business Company Category 1,” and are those companies, firms and agencies that are registered and fully incorporated as resident global business and trade companies. These companies, firms and agencies should have a category 1 Global trade and finance license or doing trade, business and other activities. These companies are being incorporated under the Companies Act [As Amended], and are based in Mauritius for taking advantage of lower taxation and bilateral trade facilities.
Moreover, these companies also have access to the double taxation treaty working system in Mauritius. For these resident companies, the corporate tax rate is very low, and they can fully benefit from it. Mauritius GBC1 companies are now expanding their business on the basis of Mauritius’ double taxation avoidance system. These companies are now working with different partner countries including African countries, China, European countries as well as India.
GBC1 companies can benefit from several incentives and services. The companies can take advantage from duty concessions that are being made on the purchase of office accessories, cars, trucks, furniture, and other useful items. In addition to this, GBC1 companies can also have the advantage in paying tax exempt royalties to non-residents which is considered as a very strong advantage in favor of these companies. The basic advantages and services include:
- Low overall tax rate
- Lowest annual Government License fee
- No country’s capital gains tax
- No country’s withholding tax
- Interests that re being paid on several deposits in different banks are usually tax exempt
- The officially paid dividends are usually tax exempt
An additional license or authorization is required for a GBC1 company to provide specialized financial activities such as assets management outside of Mauritius.
The cost of establishing a Mauritius GBC1 company and its running cost for a calendar month vary from the several Offshore Management Companies providing such services in Mauritius. The establishment and first twelve months cost can range from US$7,000 to US$13,000 from one offshore service provider to the other, the fees should include the government fees and should be one off for the whole year. You will be charged additional fees if you request additional services to be performed by the providers. Also note that payment has to be made to the service provider before the establishment takes place.