Global Business Corporation (“GBC”)

  1. GBC (previously known as GBC1)
  2. AC (Authorised Company)

In a major bid to enhance the competitiveness and transparency of Mauritius as a financial centre, the Global Business Sector went through a major reform.

As from 1 January 2019, the Category 1 Global Business Company (GBC 1) is known as the Global Business Company (GBC). The Mauritius Financial Services Commission (FSC) has suspended the Category 2 Global Business Licence in favour of a new type of entity known as the Authorised Company (AC).

The GBC is resident for tax purposes in Mauritius and can thus avail itself of the benefits of the double taxation treaties signed by Mauritius with India, China, Italy, Luxembourg, Thailand, Rwanda, South Africa, Singapore, etc. The GBC may conduct business in Mauritius provided that the majority of its transactions is done outside of Mauritius.

On the other hand, the AC is non-resident for tax purposes and is therefore not liable to pay income tax in Mauritius. The AC is typically used where no tax treaty benefits are sought. Companies that are engaged in investment holding, invoicing, marketing, international trading activities and/or non-financial consultancy services often use such a structure.

Why would you want to set up a GBC?

  • If you are earning an income outside the boarders of South Africa, then a GBC might be a tax effective structure for you.
  • Should you do business outside of South Africa you become liable for tax in South Africa once you bring income into the country.
  • When invoicing out of a Mauritian company for services rendered outside of South Africa, you can process the transactions and funds through the GBC and pay minimal tax (3-15%).
  • The main factor to consider before setting up a GBC in Mauritius is whether you are earning an income, or planning to earn an income from offshore? If the answer to this question is yes, you should consider a GBC.
  • Please note this is jurisdiction specific, we can offer custom solutions based on your situation.


  • GBC companies are resident in Mauritius for tax purposes, if managed and controlled correctly.
  • There are no capital gains tax, and no withholding tax on payment of dividends, interests, or royalties.
  • No stamp duties or capital taxes.
  • No inheritance taxes.
  • GBC companies are liable for income tax at a rate of 15%*.

*If company qualifies for Deemed Foreign Tax Credit (DFTC) of 80%, the effective tax rate will be 3%

The Deemed Foreign Tax Credit will be applicable on the following foreign income streams:  

  • Foreign dividend (subject to such an amount not being treated as an allowable deduction in source country)  
  • Foreign source interest income (exemption granted only if lender is a company)
  • Profit attributable to a permanent establishment of a resident company in a foreign country 
  •  Foreign source income derived by a Collective Investment Scheme (“CIS”), Closed End Fund, CIS manager, CIS administrator, investment adviser or asset manager licensed or approved by the Financial Services Commission (“FSC”).
  • Income derived by companies engaged in ship and aircraft leasing
  • Insurance, Reinsurance

No Exchange Control

  • No approval is required for the repatriation of profits, dividends and capital gains earned by a foreign investor in Mauritius. No limitation on the amount that can be transferred abroad. In other words, no exchange control. Thus, it means funds can be transferred globally without requesting any approval from the Mauritian authorities.

Preferential Trade

  • GBCs are granted duty free access, tariff preferences, reduction, and elimination of trade barriers as well as market access under the AGOA, SADC, COMESA, IOC, and EPA-EU agreements.
  1. AGOA – US, Sub-Saharan 
  2. SADC – Southern African Development Community.
  3. COMESA – Common Market for Eastern and Southern Africa.
  4. IOC – Indian Ocean Committee: Comoros, Madagascar, Mauritius, France (for Réunion), and the Seychelles
  5. EPA – EU: Europe, Pacific, Africa, and Caribbean. 

Business Facilitation

1st in Africa for Ease of Doing Business with a regulatory environment conducive to business operations. Mauritius also boasts a highly skilled and educated workforce.

A Neutral Jurisdiction

Mauritius benefits from being part of Africa without being in Africa and this is recognized as a neutral jurisdiction for foreign direct investment in Africa. Mauritius has built a well-regulated yet business friendly jurisdiction.

44 DTAAs (Double tax agreements)

Mauritius has an extensive network of DTA’s which include: Belgium, Botswana, China, Croatia, Cyprus, France, Germany, India, Indonesia, Italy, Kuwait, Luxembourg, Madagascar, Malaysia, Mozambique, Namibia, Nepal, Oman, Pakistan, Rwanda, Senegal, Singapore, Sri Lanka, South Africa, Swaziland, Sweden, Thailand, United Kingdom, Zimbabwe and Uganda. The network provides for interesting tax planning opportunities thereby enhancing the image of the jurisdiction as a tax planning centre.

The attractive concessions provided by those treaties include:

  • Elimination of double taxation through tax credit equivalent to Mauritian tax.
  • Reduction in withholding taxes on dividends, interest, and royalties.
  • Exemption from capital gains.
  • Possible exemption on interest payments on loans.

Mauritius has a residence-based tax system, and a GBC is deemed as a Mauritian tax resident and can thus avail to several benefits, if it meets the regulatory substance criteria and demonstrates that its place of effective management is in Mauritius. The substance requirements are follows:

  • Have at least two resident directors in Mauritius.
  • Chair and initiate Board Meetings from within Mauritius.
  • Maintain an account with a local bank through which funds must flow.
  • Maintain its registered office and all statutory records in Mauritius.
  • Have a local qualified company secretary.
  • Prepares its statutory financial statements and causes such financial statements to be audited in Mauritius
  • Have a local auditor.

Subject to Section 71 (1) of the FSA, a GBC is a Mauritius offshore entity that allows foreign citizens to obtain unique taxation and protection advantages while offering their services mainly outside of Mauritius. A GBC is a company, where majority of shares or voting rights or legal or beneficial interest in a resident corporation are held or controlled, by a person who is not a citizen of Mauritius.

A GBC can take the form of a private company which is constituted of a minimum of 1 and maximum of 25 private shareholders or a public company composed of two shareholders or more than 25 shareholders or a protected cell company, a limited partnership, an investment fund, or other legal arrangement.

GBCs are required to adhere to the following Enhanced substance requirements:
A GBC shall always carry out its core income generating activities in, or from Mauritius, as required under the Income Tax Act by employing either directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities and by having a minimum level of expenditure, which should be proportionate to its level of activities.

Application Process

  1. Complete the electronic Onboarding application on the website – link
  2. Find the list of KYC documents to be submitted together with Onboarding application on the website – link
  3. Find the example letters of how your Reference letters should look like on the website – link
  4. Submit your Onboarding application form together with all KYI requirements to …………….
  5. Ensure that the original documents are couriered to FFG Mauritius

Registration Process

  1. Preparation
    * Collect and conduct due diligence
    * Draft constitutive documents and agreements
    * Prepare incorporation documents and liaise with local authorities.

  2. Submission
    The law firm will review documents and issue a legal certificate. FFG Mauritius will submit the application.

  3. Follow-up
    FFG will follow up with the authorities and assist the client in responding to any possible FSC queries.

  4. Incorporated (Around 5 to 10 days)
    The Registrar issues Certificate of Incorporation. First board meeting is held to ratify licensing conditions.

  5. Bank Account (2 – 3 weeks)
    Opening of a local bank account (Afrasia Bank / Investec / Standard Bank / ABSA / MCB Mauritius Commercial Bank)