Mauritius’s strategic offerings for international business
Rajsing Gopaul
Mauritius
by Rajsing Gopaul
Mauritius is an international business centre strategically located in the Indian ocean. Volcanic in origin and covering 1,865 square kilometres, the Dutch were first to settle on the island in 1598, followed by the French in 1715. Mauritius changed hands once again in 1810 when it became a British colony, and the multiracial 1.4 million local inhabitants finally gained their independence in 1968 . Although English is the official language, French is widely spoken, and the island’s history has resulted in a hybrid legal system combining both civil and common law practices.
Mauritius is a politically stable, democratic state enjoying a vibrant and diverse economy. Business and investment opportunities in Mauritius are lucrative and governed by a well-established and regulated financial services sector which adheres to internationally accepted norms and best practices.
As a jurisdiction, Mauritius offers significant benefits from an extensive range of non-double taxation treaties, a favourable fiscal regime with no capital gains tax or estate duty, and excellent telecommunication facilities as a result of significant investment and deregulation in recent years. Mauritius has one of the world’s most competitive fiscal regimes. The continuing success and reputation of Mauritius as a regional financial services centre is underpinned by the firm commitment of the Government of Mauritius to promote and support its financial services sector.
Mauritius has three types of companies:
Domestic company
A non-citizen may wholly own a domestic company, provided it conducts businesses mainly with Mauritian residents. The domestic company designation is also used to own property in Mauritius. Should a non-citizen shareholder intend to use a Mauritian company to conduct global business activity, they have the choice to register as an authorised company or a global business licence company.
2. Authorised company
An Authorised company (AC) is a company incorporated in Mauritius and licensed by the Financial Services Commission (FSC) in Mauritius to conduct business principally outside of Mauritius. It should have its place of effective management outside Mauritius. An authorised company is most often used for the following purposes:
Investment holding;
Property holding (e.g. real estate or other property) outside of Mauritius;
Wealth protection;
International trade;
Intellectual property ownership; and
Non-financial consultancy services.
An authorised company is required to file a return of income to the Mauritius Revenue Authority within six (6) months of its year end. Any income derived outside of Mauritius shall be tax exempt in Mauritius.
3. Global business licence company
A global business licence company, also known as a GBC or GBL, is a company licensed by the FSC to conduct global business activity. Contrary to an authorised company, a GBC must be controlled and managed from Mauritius. It may also conduct activities which require a special licence, such as financial investment advisor, insurance broker, fund manager services. A GBC which is compelled to be tax resident in Mauritius and pay tax on its worldwide chargeable income is eligible to benefit from the double taxation agreements (DTAs) Mauritius has signed with various countries.
XLNC member firm Dale International Trust Company LimitedTrianon, MauritiusT: +230 464 1300
Rajsing Gopaul has been working in the financial services industry since 2001. He holds an honours degree in Economics from Delhi University (India). He is also a member of the Society of Trust and Estate Practitioners and the Mauritius Institute of Directors. Contact Rajsing.
