Global Business Company 1
A GBC 1 can be in the form of a Trust, Sociéte and Partnership. A Mauritius GBC 1 is governed by the Companies Act 2001 and regulated by the Financial Services Commission. A GBC 1 is considered to be tax resident in Mauritius and is subject to corporate tax at 15%. However, a GBC 1 may claim a foreign tax credit in respect of the actual foreign tax suffered or 80% presumed tax credit, whichever is higher and this brings about for a GBC 1 to have a maximum effective tax rate of 3%. Other tax advantages for GBC 1 in Mauritius are that there is no capital gains tax and also no withholding tax on dividends, interest and royalties paid. The expanding network of DTAs has further reinforced Mauritius as a tax efficient jurisdiction and is also one of the prime reasons explaining the growing investment in GBC 1. Activities commonly undertaken by a GBC 1 requiring no specialized license are Investment Holding, Trading and International Consultancy and it normally takes an average of 3-4 weeks to incorporate a GBC 1 with such standard activities.
Key Features of a Mauritius GBC 1
Type of corporate vehicle
A public company
A private company
A foreign company (i.e. branch of a company established in a foreign jurisdiction)
Only 3% as corporate tax if well structured
Access to Double Taxation Avoidance Treaty
No withholding tax on dividends, interest and royalties paid
No Capital Gains tax
Needs to have at least 2 Resident Directors
One shareholder allowed
Corporate shareholder allowed
Must at all times have the Management Company as Company Secretary
Must at all times have the Management Company as Registered Agent
All shareholders and directors meetings must be held from the company’s registered office address in Mauritius
May or may not have a constitution
No minimum capital requirement for GBC 1 not requiring any specialized license
May involve capital raising from public
Must not hold shares, debenture, security or any interest in a local company
May lease, hold, acquire or dispose of immovable property or any interest in immovable property situated in Mauritius
May open and maintain an account in Mauritian currency with a local bank May open and maintain with a bank an account in foreign currencies
Required to file annual audited financial statements with the Financial Services Commission
No publicly accessible record of shareholders, directors or beneficial owners.
Tax Resident Certificate
For tax residency purposes, a GBC 1 must be centrally managed and controlled from Mauritius. Tax Residency Certificate for a GBC 1 is issued by the Mauritius Revenue Authority and such a certificate is valid for a period of one year and can be renewed annually. To be eligible for a Tax Residency Certificate, a GBC 1 must satisfy certain conditions:
- The Company shall at all times have at least two resident directors in Mauritius and the resident directors shall always be of appropriate calibre who can exercise independence of mind and judgement;
- The company shall at all times maintain its principal bank account in Mauritius;
- The Company shall at all times keep all its accounting records at its registered office in Mauritius;
- The company shall prepare its statutory financial statements and cause such financial statements to be audited in Mauritius;
- The company shall provide for meetings of directors to include at least 2 directors from Mauritius.
GBC 1 formation process:
The registration of a GBC 1 proposing to engage in standard activities like Investment Holding, International Consultancy or Trading and which does not require any other special license, normally takes about 2-3 weeks to be registered. Compared to a GBC 2 registration, that of a GBC 1 requires some more documentation but still the process remains easy to follow.
- Decide a suitable name for your company. We offer free services to check the availability of company name
- Submit VA Global registration form with general information of your contact details and proposed business.
- After validating your registration, we send you a list of documents we’ll require for this process and start preparing corporate documentation along with other necessary registration procedure required for your company formation.
- After the successful completion of all the procedures, our offshore consultant will provide you with your company’s: Certificate of Incorporation as issued by the Registrar of Companies, Category 1 Global Business Company License as issued by the Financial Services Commission Company Register with share certificates, First Minutes, Constitution (if applicable) and any other relevant document based on the type of your company.