Why Mauritius?

Mauritius ranks 19th globally, in “The Ease of Doing Business,” reason being the continuous improvisations & reforms in the business climate to give a global competitive edge. The investment procedures have significantly become easier, making this a populous destination for companies.

Located 1,200 miles (2,000 km) off the southeastern coast of Africa, in the Indian Ocean, the island of Mauritius is relatively young, having only been created nearly 8 million years ago by volcanic activity.

Mauritian Rupee
GNI Per Capita
US$ 9,300
Indian Ocean
Political Overview
Parliamentary Republic

Fiscal Advantages

In GBC 1,

  • No capital gains or withholding taxes imposed
  • No limit on the carrying forward of tax losses
  • No withholding tax on dividends, interests, royalties and payment of redemption proceeds
  • Entitled to underlying tax credits on dividends if shareholding is more than 5% in the investee company
  • Interest received on deposits in Mauritian bank accounts are tax exempt
  • Inheritance tax, gift & estate taxes are not applicable
  • No stamp duties, registrar duties or levies
  • A branch of a foreign company may also have access to the tax treaty network provided that the local authorities are satisfied, effective management and control of the foreign branch is in Mauritius

In GBC 2,

  • Legal tax exemption 
  • No accounting or reporting requirements which minimise maintenance costs
  • No withholding tax on dividends
  • No capital gains tax
  • No stamp duty on transfer of shares

Regulatory Advantages

In GBC 1,

  • Business can be conducted internationally, regulated by the Mauritius Financial Services Commission
  • It is low-cost, legally tax efficient entity, to conduct business
  • No exchange control
  • Offers stable banks and unique GBC legislation
  • Mauritius has entered into Investment Promotion and Protection Agreements (IPPA) with several nations of Africa. They provide guarantee against expropriation, free repatriation of capital and investment returns
  • Also prevalent is a nation rule regarding treatment of investment, compensation for loss due to war, armed conflict, riot etc.
  • IPPA offers the comforts to foreign countries looking to do business in one of the IPPA countries. (Burundi, Madagascar, Mozambique, Senegal, South Africa and Tanzania)


  • Incorporating in Mauritius is comparatively expensive than the other jurisdictions
  • Licence fee is expensive for both GBC 1 and Global Business Licence 1 (GBL 1) companies
  • Bearer shares are not permitted in GBC 1
  • Capital can be in any foreign currency and not Mauritian Rupee
  • Changes in the beneficial ownership must be notified to the Mauritian FSC, in a month
  • Companies that hold Global Business Licence 2 are not permitted to trade within the Republic of Mauritius

Company Formation

  • GBC 1 (Resident Company)
  • GBC 2 (Non-resident / Offshore Company)
  • Limited Partnership

The Republic of Mauritius offers two types of offshore companies, namely, Global Business Company Category 1 (GBC 1) and Global Business Company Category 2 (GBC 2). 

GBC 1, resident company, is quite unique among offshore jurisdictions. It is a low-tax vehicle, imposing, 3% corporate tax for non-resident sourced profits and 15% for resident sourced profits. It ensures privacy and confidentiality by not disclosing details of the directors and the shareholders. Annual general meetings are compulsory but can be done via proxies. These companies are permitted to trade within Mauritius and are similar to private limited companies. 

GBC 2, non-resident company, pays no tax. It cannot trade within Mauritius and are similar to private limited companies. 

Limited Partnership is another legal form in Mauritius, introduced recently and still gaining popularity. It consists of one or more general partners and limited partners. The legislation protects limited partners from misuse by general partners, but they cannot manage or execute on behalf of the company. 

The offshore companies are governed by the Common law and regulated by the Mauritius Financial Services Commission.

GBC 1 & GBC 2 usually consumes about 3 to 4 weeks and 2 weeks respectively. The details of the owners are disclosed in GBC 1 to the authorities, which is not the case in GBC 2.

In GBC 1, Company names that contain words such as ‘Bank’, ‘Insurance’, ‘Building Society’ or ‘Trust’ is prohibited. In GBC 2, names that sound similar to an existing company are prohibited.

Differences between GBC 1 & GBC 2:

DescriptionGBC 1 GBC 2
Type of Business Activity
Can carry out any business activity such as asset management, credit finance, custodian services, distribution of financial products, factoring, leasing, occupational pension schemes, pension fund administration, pension scheme management, retirement benefits, registrar and transfer agencies, treasury management and such other financial business activities as may be specified by the Financial Services Commission (FSC).

Can carry out business activities only with non-residents and in any currencies but the Mauritian rupee. It is completely exempt from paying taxes in Mauritius.
DTA Benefits
It is considered as a Tax resident in Mauritius and benefits under the DTA network of Mauritius

It is not tax resident and does not benefit from the DTA network
Tax Benefits
It is generally used when overseas income is predominantly in the form of dividends, royalties, interests and capital gains and when DTA benefits are required

It enjoys a flexible legal regime. Companies involved in invoicing, marketing and international trading activities often use this structure
Tax filing & Annual audits
A GBC 1 is required to file annual audited financial statements with the FSC within six (6) months after the close of its financial year. A GBC 1 must also submit income tax returns to the Commissioner of Income Tax every year

A GBC 2 is required to provide a financial summary of the business activities, it is not required to file audited accounts
Restrictions of Business Activities
Under the Financial Services Act, 2007 (the “FSA”), A GBC 1 can conduct any business activity, including financial services

GBC 2s are restricted from providing banking or financial services; holding or managing or otherwise dealing with an investment fund or scheme as a professional functionary; providing registered office facilities, nominee services, directorship services, secretarial services or other services for corporations; and providing trusteeship services by way of business

The Mauritius Freeport is a duty-free logistics, distribution and marketing hub for the region. Logistics and warehousing facilities are readily available for the transshipment, consolidation, storage and minor processing of goods. It boasts of highly qualified labour forces and offers investors extremely attractive incentives. It is the ideal warehousing, processing and distribution hub that provides access to a 425 million-consumer market in this African region.

  • An application form with the name and details of directors & shareholders
  • Scanned copy of passport of directors and shareholders
  • A bank reference letter
  • Proof of residence, scanned copy
  • Business plan

Taxation, Laws & Regulations

GBC 1 – Income Tax is 15%, however it can be reduced to 3% due to foreign tax credits
GBC 2 – No tax is imposed on income

In GBC 1, it varies from 0 to 3%; In GBC 2, it is Nil;

No Royalty payments for both forms of incorporation. 

The Financial Services Development Act 2001 (FSD Act) established the Financial Services Commission (FSC) to regulate the sector comprising a number of non-banking financial services such as global business activities, the insurance industry, leasing activities etc.

Apart from this, a new Companies Act and Trust Act were passed by parliament in 2001 thereby completing the legislative integration of onshore and offshore business activities. Further improvisation on the Financial Services Act 2007 (FSA) repealing the FSD Act was passed.

The global business has been revised to an extent, that any Mauritian Corporation conducting business outside Mauritius will qualify for a Global Business Licence. 

Free trade zones known, as The Mauritius Export Processing Zone is the biggest centre of employment, in manufacturing and food processing fields. An Export Enterprise Certificate is required to set up a company in the EPZ, from the Ministry of Industry and Technology.

EPZ enjoys the following perks:

  • No capital gains tax
  • No corporate taxes
  • No withholding tax on dividends
  • No sales tax on raw materials & equipment
  • No corporate taxes
  • Free repatriation of dividends, profits and capital
  • 50% reduction in registration fees payable on land and buildings
  • 60% remission of customs duties on buses for personnel transport
  • Relief on personal tax for two expatriate staff

Immigration & Visa Requirements

Number of countries do not require a visa and are given 6 months of permit on arrival. Visas are issued to other nationals on application and takes about a month for processing. 

Work permits are issued for a period of 6 months to 4 years. A refundable security deposit is paid at the time of work permit being granted. This deposit may vary from R 3500 to R 62000 depending on the origin of country. 

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