Companies incorporated in Mauritius are regulated by the Companies Act 2001, in effect from 1st December 2001. The Companies Act 2001 provides a modern and efficient framework for companies to carry out their business activities and aims to facilitate enterprise, promote transparency and enhance competitiveness. The company legislation is designed to be clear, flexible and in line with international standards and concerns. The Act also aligns the legal provision governing domestic companies with Global Business Companies.
Legislative changes since 2001 have chartered a new landscape for the financial services sector, including the Global Business Sector. The Companies Act, 2001 (inter alia) repealed the International Companies Act and the financial Services Development Act, 2001 repealed the Mauritius Offshore Business Activities Act with effect from 1st December 2001 and introduced the concept of "Qualified Global Business". With the repeal of these two Acts neither Offshore Companies nor International Companies exist any longer, having been replaced by Category 1 Global Business Companies (GBC1) and Category 2 Global Business Companies (GBC2) respectively.
A Qualified Global Business (QGB) is any business or other activity:
(a) specified in the second schedule of the Financial Services
Development Act 2001 ("FSD Act") and which is carried on from within
Mauritius with persons all of whom are resident outside Mauritius and
which is conducted in a currency other than the Mauritian currency; or
(b) which is carried on by a private company (incorporated or
registered under the Companies Act 2001), which neither conducts
business with person resident in Mauritius nor has any dealings in
Mauritian currency; and which holds a Category 2 Global Business
Licence.
No
withholding tax on the remittance of branch profits
No capital
gains tax in Mauritius except on property development gains
No
limit on the carry forward of tax losses
Royalties, interests and
service fees payable to foreign affiliates are allowed as expenses
provided they are reasonable and correspond to actual expenses incurred.
Interests paid on deposits in Bank holding Category 2 banking
licence are tax exempt
100% accelerated depreciation rate in the
first year for aircraft companies
Investment tax credit of 10% for
capital expenditure
Dividends paid are tax exempt
No
withholding tax on interest, royalties and dividends
Read more: Fiscal Incentives for Qualified Global Business Entities