Global Business Category 1 ("GBC1")

In addition to the benefits available to a GBC1 from the expanding network of DTAs, a GBC1 also offers investors the following advantages:

• Low tax rate

• No withholding tax on dividends, interest and royalties paid

• No capital gains tax

• No stamp duty on registration of GBC1 documents

• Free repatriation of profits, capital and interest

• No estate duty, inheritance, wealth or gift tax

• Protection of assets

 

A GBC1 can carry out any business activity such as asset management, credit finance, distribution of financial products, factoring, leasing, pension fund administration, registrar and transfer agencies, treasury management and such other financial business activities as may be permitted by the

FSC.

 

A GBC1 is considered to be a tax resident in Mauritius and enjoys benefits under the extensive DTA network of Mauritius. Income is taxable at a maximum effective rate of 3%. However, a GBC1 cannot transact with Mauritian residents unless permission is obtained from the FSC. A GBC1 is generally used when overseas income is predominantly in the form of dividends, royalties, interest and capital gains, when DTA benefits are needed and it is necessary to have a physical presence and show substance in Mauritius for tax reasons.

 

Global Business Category 1 ("GBC1") special licenses

Global investment funds are licensed as a GBC1 and deal in the pooling of public funds to be invested collectively by fund and investment managers. A fund can either be a close-ended fund where the share capital is fixed or an openended fund where the share capital may be varied.

 

A Protected Cell Company (PCC) enables a GBC1 to have one or more independent cells. It permits the flexibility to divide the assets into various cells with the objective of protecting the assets of one cell against the failure of another cell.

 

A Captive Insurance Company would normally be established as a GBC1 and also requires an insurance license from the FSC. Mauritius has a sound regulatory framework for insurance companies including Captive Insurance Companies which may also be established as protected cell companies.