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GBC I is a corporation holding a Category I Global Business Licence engaged in various activities including those involving capital raising from the public. It is characterized by its provisions for investor's protection and as such, it is required to file with the FSC annual audited financial statements.
A GBC I may be set up by direct incorporation or by registration of a branch of a foreign company, or by way of continuation where it is allowed by law in the country of origin. GBC I do have access to Mauritius's tax treaties provided that the local tax authorities are satisfied that effective control and management of the foreign company is in Mauritius.
Any individual, body corporate, trust or partnership including a limited partnership or a societe may apply for a Global Business Licence. There are three main types of corporate vehicles available namely: public company, private company and foreign company (i.e. branch of a company established in a foreign jurisdiction).
KEY FEATURES
- May or may not have a Constitution.
- One shareholder allowed.
- Corporate shareholder allowed.
- One share allowed.
- One director allowed.
- Company may be limited by shares or guarantee or by both.
- The shares of the company may be issued with or without a par value provided that all ordinary shares or all preference shares of the company shall consist of one kind or the other.
- Par value shares if any may be stated in more than one currency.
- Where authorised by the terms of its licence the company may lease, hold, acquire or dispose of immovable property or any interest in immovable property situated in Mauritius.
- Invest in any securities listed on the Stock Exchange.
- Open and maintain with a local bank an account in Mauritian currency for the purpose of its day to day transactions arising from its ordinary operations in Mauritius
- Open and maintain with a bank an account in foreign currencies.
- The company shall keep a register to be known as the Register of Directors, in such form as approved by the Directors (electronic or magnetic or otherwise), containing the names and addresses of directors of the company, their appointment dates and the date of resignation/removal. When the Register is electronic or magnetic or other storage data form, the company must be able to produce legible evidence of its contents.
- Remuneration of directors may be fixed subject to the Constitution of the company or in a unanimous shareholders agreement, by a resolution of director.
- May not hold shares, debenture, security or any interest in a local company or a Category 2 GBC.
Mainly used by people who have an interest in India because?
TAX TREATIES - MAURITIUS - INDIA TREATY
RESIDENT
The treaty applies to any person who is resident in one or both states. Resident of a state means a person who is liable to tax under the laws of that state by reason of his domicile, residence, place of management or any other criterion of a similar nature. A person includes an individual, a company, and any non-corporate which is treated as a taxable unit under the taxation laws of the respective states.
PERMANENT ESTABLISHMENT
A person resident in a state and carrying on business in the other state will be taxed in the other state only if he has a permanent establishment there. Permanent establishment essentially means substantial presence, eg a place of management, a branch, an office, etc. It also includes a building site or construction or assembly project lasting more than 9 months.
DIVIDENDS
Dividends may be taxed in the source country at rates not exceeding: 5% if shareholding is at least 10%; 15% otherwise. However, Mauritius does not levy tax on dividends paid by resident companies.
INTEREST
Interest may be taxed in the source country at the rate applicable under its domestic law but is tax free under certain conditions, eg if paid to the government of the other state or its agencies or to a bank resident in the other state or if the debt-claim is approved. Under Mauritius tax law, interest paid by a company holding a Global Business Licence Category 1 or a bank holding a Category 2 banking licence to a non-resident not carrying on any business in Mauritius is tax exempt.
ROYALTIES
Royalties may be taxed in the source country at the rate not exceeding 15%. However, under Mauritius tax law royalties paid by a company holding a Global Business Licence category 1 to a non-resident are exempt from tax.
CAPITAL GAINS
Gains from the sale of shares are taxable only in the country where the shareholder is resident. While Mauritius does not levy capital gains tax, any gain or profit from the sale of securities or units is specifically exempt from Income tax.
RELIEF FROM DOUBLE TAXATION
Double taxation is avoided by means of a tax credit allowed for tax paid in the other state. The treaty as well as Mauritius tax law provide for credit in respect of underlying tax relating to dividends and tax sparing relief for tax exemption or reduction granted by a state.
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