The Global Business Company in Mauritius: Your gateway to global success

Entrepreneurs and investors continually seek innovative methods to enhance their global operations. Mauritius is a top choice for international enterprises thanks to its appealing legal and tax structures. Central to this allure is the Global Business Company (GBC), a notable investment vehicle. In this article, Magellan explores the benefits and opportunities of setting up a GBC in Mauritius, highlighting why an increasing number of entrepreneurs are selecting this route for their international expansion.

What is a Global Business Company (GBC)?

A Global Business Company (GBC) is a corporate structure tailored for international investors aiming to oversee global operations under a beneficial tax regime. These entities are authorized and regulated by the Financial Services Commission (FSC) of Mauritius, providing a secure and transparent framework for business activities.

GBCs are notable for their operational flexibility. Unlike more restrictive offshore models, GBCs are permitted to engage in business with both residents and non-residents of Mauritius. This adaptability makes them an excellent choice for businesses aiming to expand their reach and explore new markets.

Common uses of a GBC

Global Business Companies’ (GBCs) versatility is evident in the diverse activities they support. Prominent among these uses are financial services. GBCs are exceptionally well-suited for tasks such as fund management, brokerage, and investment advisory services. They offer a perfect platform for asset managers and financial advisors who aim to cater to an international client base.

International trade

For businesses involved in import-export or e-commerce, a Global Business Company (GBC) can function as a strategic hub to oversee trade flows and enhance international logistics. This setup allows companies to streamline operations and capitalize on Mauritius’ advantageous geographic and regulatory position.

Asset holding

Global Business Companies (GBCs) are frequently utilized as holding entities for various assets, such as intellectual property and real estate. This organizational structure provides considerable tax benefits, optimizing the management and operation of these assets effectively.

Consultancy activities

Companies specializing in strategy or management consulting can leverage a Global Business Company (GBC) to centralize their international operations. This structure enables them to efficiently provide their services to a global clientele, facilitating broader market reach and streamlined management.

Fund domiciliation and management

Mauritius has emerged as a favored jurisdiction for fund domiciliation, with Global Business Companies (GBCs) offering an efficient framework for managing these funds.

Benefits of establishing a GBC in Mauritius

The appeal of Global Business Companies (GBCs) in Mauritius is grounded in several key benefits that position it as a competitive international option.

Tax advantages

One of the primary attractions of GBCs in Mauritius is their favorable tax regime. These companies benefit from a base tax rate of 15%, which is already low compared to many other jurisdictions. Moreover, GBCs can qualify for partial exemptions on specific commercial activities, lowering their tax burden even further. This advantageous tax setup allows businesses to reinvest more profits into their growth. It offers enhanced flexibility in international tax planning, facilitating efficient and compliant optimization of their overall tax structure.

Access to Double Taxation Agreements

Another significant benefit of GBCs in Mauritius is their access to the country’s extensive network of double taxation agreements (DTAs). Mauritius holds DTAs with over 40 countries, spanning major African, Asian, and European markets. These agreements are crucial for businesses operating internationally, as they help prevent the double taxation of income and provide added protection against tax-related risks.

Strategic utilization of these DTAs can substantially reduce a company’s overall tax liability while ensuring adherence to international standards. This positions Mauritius as an appealing location for businesses aiming to legally and effectively optimize their global tax arrangements.

International flexibility

Mauritius’s Global Business Company (GBC) structure offers exceptional flexibility for international operations. Unlike some offshore jurisdictions that restrict the activities or geographic areas of operation, GBCs in Mauritius are permitted to conduct business nearly anywhere globally. This level of freedom enables businesses to swiftly respond to changes in the global market and capitalize on emerging opportunities without the limitations imposed by stringent legal constraints.

Furthermore, the capacity of GBCs to engage with both residents and non-residents of Mauritius enhances their versatility. This access facilitates a wide range of business structures and partnerships, proving especially beneficial for companies aiming to forge commercial connections across different world regions.

A business-friendly environment

Mauritius is renowned for its business-friendly environment, marked by streamlined regulations and efficient administrative processes. The nation has invested significantly in its financial and technological infrastructures, equipping businesses with a modern and robust operational framework.

The legal system in Mauritius, which blends English common law with French civil law, provides a familiar and predictable setting that international investors highly value. Moreover, the country’s political and economic stability, supported by a skilled and multilingual workforce, further enhances its appeal as a strategic base for regional and international business activities.

Confidentiality and Asset protection

While Mauritius is committed to global financial transparency standards, Global Business Companies (GBCs) provide a significant level of confidentiality for business owners. This privacy, coupled with the nation’s legal stability, positions GBCs as a powerful instrument for asset protection.

It’s important to note that this confidentiality operates within the bounds of international regulations concerning anti-money laundering and counter-terrorism financing. Mauritius has established robust mechanisms to ensure compliance while safeguarding legitimate business interests, offering a secure environment for both asset protection and business operations.

Conclusion: An opportunity not to be missed

Setting up a Global Business Company (GBC) in Mauritius offers a strategic opportunity for entrepreneurs and investors aiming to enhance their international operations. The combination of tax benefits, operational flexibility, and a business-friendly environment positions Mauritius as a preferred jurisdiction for various commercial ventures.

However, establishing and managing a GBC involves navigating complex regulations and optimizing the benefits available, which requires specific expertise. Engaging with seasoned professionals in this area is crucial.

For those considering establishing an international presence or restructuring existing operations, a GBC in Mauritius could be instrumental in unlocking new growth and optimization opportunities.

Partnering with Magellan and devising a thoughtful strategy can transform a GBC into a significant asset for achieving global business success.

Contact us to discuss how a GBC in Mauritius could integrate into your broader business strategy.