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Mauritius is situated in the Indian Ocean having approximately 800 km off the East Coast of Madagascar. Mauritius is considered to be one of the few countries which have a hybrid legal system which is based on English and French law. Mauritius is considered to have a middle income diversified economy which has a capacity of growing industrial, financial and tourist sectors. Incorporate Company in Mauritius has become a renowned offshore place for the investors which offer a large number of financial and banking facilities.
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Mauritius is the second largest investor in India. In terms of offshore opportunities, Mauritius after its independence has developed into a diversified economy which is growing in the fields of industrial, financial and tourism sector. The annual growth in these sectors varies from 5-6% and is a progressive offshore jurisdiction. Mauritius has been able to capture more than 20,000 offshore entities in the past year which show its growing phase.
Mauritius Company has certain advantages such as:
There are four types of business corporations existing in Mauritius. Such as:
GBC 1 Resident Mauritius Company: the first category type of Company is the one which can only be made through a management company which is supposed to be approved by the Commission and is allowed to undertake the business activity which is not illegal or against the public policy or which could cause prejudice to the good reputation of Mauritius. The license needs to be obtained by the companies intending to conduct financial or investment services.
The basic criteria’s of a GBC 1 company are
GBC 2 International Business Corporation: The GBC 2 type of entity is the one which undertakes activities other than those activities listed in their official schedule such as Banking, financial services, carrying out the business of holding or managing or otherwise dealing with a collective investment fund. There is a significant difference between GBC 1 and GBC 2 is that GBC 2 companies are exempted from the provisions of the Income Tax Act 1995 and is deemed to be nonresident in terms of tax purposes. GBC 2 provides great flexibility and is suitable for holding and managing private assets.GBC 2 is not allowed to raise capital from the public or to conduct any financial services.
The incorporation process is an easy step process which is standard and is typically happens within a time frame of 1-2 weeks depending on the information provided. There are a set of documents that are required to be submitted along with the application to the Registry. The Registry takes about 2-7 working days to process the incorporation process and produce the certificate of incorporation and open the bank account. Although it is often said that the Mauritius Company documents for incorporation are lengthy. The application submitted to the Registrar should have the details:
When the registrar is satisfied with the application of incorporation and that it is being properly complied with the Companies Act and payment of prescribed fees has been given. After this, the Registrar shall enter the particulars of the Company on the Registers and assign a unique number to the company in respect of the Company’s name and furthermore issue the Certificate of incorporation in the prescribed form. The time taken for incorporation along with the registration and licensing depends on whether seeking for GBC 1 or GBC 2 and can take up to a week’s time.
In Mauritius, under the Income Tax Act, a GBC 1 type of Company I liable at a uniform tax rate of 15%. A GBC 1 company is entitled to a foreign tax credit and can opt for claim credit for actual tax suffered in another jurisdiction so it makes an effective tax rate of 3% or nil in certain circumstances. GBC 1 company is controlled and managed and is tax resident in Mauritius upon a written approval of Commissioner of Income tax. There are benefits of double taxation treaties with Mauritius and other countries. The Income Tax (Foreign Tax Credit) Regulations 1996 allows a foreign tax credit on the foreign source income and provide in respect of foreign tax charged on the dividend, credit for the underlying tax charged in the foreign country on profits out of which the dividend is paid.
Mauritius is now considered as a premier international business center located in the Indian Ocean. Over the past 20 years, Mauritius has unprecedentedly achieved growth and socio-economic development has been achieved. Mauritius has been an incredible jurisdiction for offshore company formation offering a higher reliability and security to the investors through a flexible regulatory framework. The Mauritius Government actively encourages foreign investment and offshore activities through the board of investment. The government has introduced a wide range of incentives to attract foreign investment and consolidation of the legal and fiscal framework making it modern and friendly legislation attracting thousands of offshore entities.
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