Comparison of some offshore
centers (excell sheet).
GBC1 Companies are governed by the
Companies Act 2001. They can be set up for the purposes of carrying out any
of the qualified global business activities specified in the second schedule
of the FSD Act 2001.
A GBC1 Company may be set up either by direct incorporation
or by way of continuation (s. 296 CA 2001). It can also migrate out to
another jurisdiction. A foreign company may also register a branch in
Mauritius and apply for a GBC 1 licence (S. 273 CA 2001). GBC1 companies
are prohibited from dealing or transacting business in local currency and
with local residents or from holding immovable property in Mauritius.
Key
Features
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No minimum capital
requirement
-
May be a
private or public company limited by shares or unlimited or a Limited
Life Company or limited by guarantee
-
Shares
may be issued with or without par value. Redeemable shares or fractional
shares can be issued
-
Shares
may be subscribed by nominees but beneficial owners must be disclosed
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Management by one or
two Directors who may not be resident in Mauritius
-
Corporate
Directors are not allowed
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Requirement for local resident Secretary and registered office
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Obligation to file annual audited accounts to the Financial Services
Commission (FSC)
Incorporation
Procedures
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Application shall be made to the Registrar of Companies
on prescribed form accompanied by certificate of name reservation, the
Constitution of the company, statutory documents and a legal certificate
from a local law practitioner
-
Disclosure of the identity of the beneficial owner(s)
together with a CV, bank reference, proof of domiciliation and
business plan are required
Taxation
GBC1 companies are taxed at a flat rate of 15% on their
chargeable income. However the may elect for a rate higher than 15%. A
foreign tax credit of 90% of the tax rate is given on foreign source income.
Double Taxation Relief
GBC1
Companies can benefit for double taxation avoidance relief.
To benefit
from such relief, the Company is required to have its tax residence in
Mauritius i.e. its central
management and control
must be exercised in Mauritius. In determining tax residency for grant of a
Tax Residence Certificate, the Commissioner of Income Tax in Mauritius
requires the applicant company to:
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have at least two Mauritius Resident Directors
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appoint a resident Company Secretary and Local Auditors
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maintain an account with a local bank .
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maintain its registered office and all statutory records
in Mauritius; and
-
all its board meetings must be chaired from within
Mauritius
The
legal framework for Trusts in Mauritius is the Trusts Act 2001. The Act
allows discretionary trust, charitable trust, purpose trust, commercial or
trading trust and asset protection trust. These trusts may be created by an
instrument in writing or by a will. The declaration of trust needs not to
be registered.
Key features
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Choice of the proper law of the trust by
the settlor
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Anti-forced heirship rules
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Duration of Trusts limited to 99 years
(except for charitable and purpose trusts which may have perpetual life)
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Possibility to accumulate income for any
period during the duration of the trust
-
Trust instrument may contain provisions
to vary terms of trust
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Confidentiality of trustees’
deliberations, identity of settlors and the non-resident beneficiaries
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Possibility to appoint a protector and to
establish letters or memoranda of wishes
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Obligation to hold trust property
separate and identifiable from those of the trustees.
-
Duty of confidentiality impose on the
trustees.
Requirements
Where the settlor is a non resident, the
trust property shall not include any movable and immovable property in
Mauritius or any account in Mauritian rupee in a domestic bank.
A trustee can be an individual, a GBC2
Company authorised by the Financial services Commision to act as trustee. Unless
administered by a body corporate, the number of trustees shall not be less
than two.
The beneficiary has to be
identifiable by name or ascertainable (by reference to a class or
relationship with another person, living or not at the time of the creation
of the trust or at any other time fixed by the trust instrument for
determining the members of a class.)
A settlor or trustee of a trust may also be a beneficiary but shall
not at any time be the sole beneficiary of the trust.
A
Protector can be appointed to supervise the trustees and to ensure that the
trust is administered in accordance with the settlor’s wishes as expressed
in the Memorandum or letter of Wishes. The Protector can be an individual
or a corporate body who can be a settlor, a trustee or a beneficiary of the
trust.
Custodian trustee can be appointed which can be a partnership form or a body
corporate. It shall hold the trust property, invest the funds or dispose
thereof under the direction of the managing trustee
The
managing trustee can be appointed to manage the trust property vested with
the custodian trustee.
It
can be appointed under the terms of a purpose trust to enforce the trust in
accordance with its terms and purposes. The trustee cannot be an enforcer
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Taxation
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The income derived by a trust is exempt from
income tax.
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A
non – resident beneficiary is exempt from income tax on his income from the
trust.
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A
resident beneficiary is liable to income tax in respect of income received
from the trust
