A company holding a Global Business License Category 1 (also commonly referred to as GBC1 or GBL1) may be incorporated in Mauritius or be registered as a branch of a foreign company. A foreign company may be re-domiciled and continue as a Mauritian GBC 1 if the foreign law so permits. A GBC1 demonstrating substance can benefit from Mauritian tax treaties. The main requirements are:
- It must have a minimum of two resident directors capable of exercising independence of mind and judgement;
- It must ensure that board meetings are held in Mauritius and demonstrate that central management and control is in Mauritius;
- It must maintain proper accounting records, minutes and registers at the registered office or at such other place determined by the directors;
- It must file audited financial statements must be filed with the Financial Services Commission within six months of its balance sheet date;
- It must hold a bank account in Mauritius;
- It must show local substance by having local corporate secretary and administrators, auditors, office and communication facilities and staff.
Since January 1, 2015, the Financial Services Commission has introduced additional requirements for determining ‘Management and Control’ of a GBC 1 for the purposes of tax residency. A GBC 1 must satisfy at least one of the following conditions:
- It has office premises in Mauritius; or
- It employs on a full time basis at an administrative/technical level, at least one person who shall be resident in Mauritius; or
- Its constitution contains a clause whereby all disputes arising out of the constitution shall be resolved by way of arbitration in Mauritius;
- It holds or is expected to hold within the next twelve months, assets (excluding cash held in bank account or shares/interests in another corporation holding a Global Business License) which are worth at least USD 100,000 in Mauritius;
- Its shares are listed on a securities exchange licensed by the Commission; or
- It has or is expected to have a yearly expenditure in Mauritius which can be reasonably expected from any similar corporation which is controlled and managed from Mauritius.