Foreign investors who come to open companies in Mauritius have several choices when it comes to the legal structures they can employ. Out of all of them, however, the offshore company remains the most popular thanks to the country’s reputation as an offshore center.
What a businessperson needs to know is that there are two types of companies that can qualify as offshore entities in Mauritius.
If you are interested in opening an offshore company in Mauritius, our company formation agents are at your service with various services. You can rely on us no matter the type of company registration services you need in Mauritius.
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Types of Mauritius Global Business Companies
The Mauritius offshore company is known as the Global Business Company (GBC) and is categorized into:
- the Global Business Company 1 (GBC1);
- the Global Business Company 2 (GBC2).
Recent changes in the legislation, however, led to Mauritius offshore companies being renamed Mauritius Global Business License Companies (GBL) and Mauritius Authorized Companies (AC).
If you are interested in business registration in Mauritius, the offshore company might suit your needs. More information on their features can be provided by our local specialists.
The Category 1 offshore company in Mauritius
The first type of offshore company in Mauritius is the Category 1 GBC which is characterized by the following:
- it is deemed as a Mauritius corporate entity which is licensed by the Financial Services Commission (FSC) as a Category 1 Global Business;
- even if it is a resident company, it can complete various activities outside the country;
- it can also be used by foreign companies as a branch or subsidiary in Mauritius;
- foreign companies seeking re-domiciliation can use the GBC1 form to operate in Mauritius.
In order to open a company in Mauritius through the GBC1 entity, a foreign or local investor will not need to meet any minimum share capital requirements. Moreover, the share capital can be denominated in any currency.
Among the other requirements related to the creation of an offshore company in Mauritius under the Category 1 license, we also mention the fact that it can carry out any activity as long as is does not affect the public interest or the reputation of the country as a financial services center. It should also be noted that in most cases, the Mauritius offshore company is used for holding purposes.
If you are interested in Mauritius company formation, you can rely on the expertise of our consultants for incorporation services. Our accountants in Mauritius are also at your disposal with tailored services.
Category 2 offshore company in Mauritius
The authorized company or the Category 2 offshore company is another business form that can be used for foreign investors who want to complete activities outside Mauritius. This type of company offers a high degree of protection to the shareholders. In terms of registration requirements, these are not different from the Category 1 offshore entity.
Our company formation advisors in Mauritius can offer detailed information on how to create a Category 2 offshore company here.
We can also help with the creation of a Mauritius offshore bank account.
Differences between the two types of Mauritius offshore companies
While in terms of similarities, offshore companies can be used for conducting operations outside Mauritius, when it comes to differences, there is more to consider.
The most important aspect to take into account when choosing between the two forms of Mauritius offshore companies is related to taxation. From this point of view:
- Category 1 GBC companies are considered a tax resident and have access to Mauritius’ double tax treaties, while Category 2 companies do not;
- GBC 1 companies are exempt from filing annual returns compared to Category 2 GBCs.
Offshore companies with a Category 2 license are required to file their annual accounts with the Mauritius Revenue Authority.
If you need assistance in setting up an offshore company in Mauritius, our specialists can guide you.
Taxation of offshore companies in Mauritius
When it comes to the taxation of Mauritius offshore companies, foreign investors need to know the following:
- the Global Business License Company (Category 1) benefits from 80% exemption from the corporate tax;
- the Authorized Company is subject to a corporate income tax ranging between 0% and 3%;
- compared to them, other companies must pay the corporate tax at a rate of 15%;
- Mauritius has around 40 double tax treaties with countries all over the world.
If you are interested in set up a company in Mauritius under the form of an offshore company, do not hesitate to contact our local representatives for business registration services.