Mauritius Offshore company formation

As a businessowner wanting to expand your horizons, one of the things to consider when moving to Mauritius is that setting up a business correctly can save you tax. At Move to Mauritius, we have years of experience in setting up businesses using business licence categories one and two.

GBL 1 Or Global Business Licence Category 1

When you apply for and receive a GBL 1 or Global Business licence category 1, your company can receive a perk of as little as 3% company tax. This is also the most confidential of business licences. With it, you can practice a wide range of activities such as holding investments, consulting firms, asset management, project management and other options.

The maximum tax rate of 3% is worked out by taxing a GBL 15% on its chargeable income. One can then claim a foreign tax credit in respect of foreign tax actually paid, or an assumed 80% foreign tax credit.

Benefits of A GBL 1:

  • Low tax administration.
  • Do not pay capital gains tax.
  • Do not pay exchange control on the return of profit, capital or interest.
  • Tax on dividends and royalties is not withheld.

Global Business Licence Category 2 Or Authorised Company 

A Global Business Licence Category 2 company, or Authorised Company is one that does not deal with Mauritian residents or the local currency. It works in any other currency other than Mauritian Rupees. As a private company, a GBL 2 falls under several industries, which include marketing agencies, international trading agencies or is used for invoicing purposes where treaty benefits are not essential. It is also important to note that Mauritian Income Tax is capped at 15%

Partial Exemption Regime

As of January 2019, a new tax law harmonising the rate of tax for both foreign companies holding a GBL 1 and local companies was implemented. This sets everyone at 15% and is in place to prevent tax fraud and tax treaty abuse. This law applies to:

  • Foreign-source bonuses obtained by a company.
  • Interest originating from overseas by any company that is not a bank.
  • Profit owed to a permanent founding of a local company in a foreign country;
  • Foreign-source revenue obtained by a collective investment scheme, closed-end fund, CIS manager, CIS administrator, investment adviser or asset manager, licensed or approved by the Financial Services Commission.
  • Revenue obtained from overseas by companies involved in ship and aircraft leasing.

If you’re ready to take on a new adventure, become a Mauritian resident and set up your business, we are ready help you make the next big move for your business. Get in touch with us today!

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