Benefits of Mauritius Offshore Incorporation
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Offshore corporations flock to the charming island of Mauritius because of the comprehensive benefits of offshore incorporation there. Some of the prominent benefits include the fact that offshore corporations enjoy a lower rate than companies incorporated on the mainland and the certainty that offshore corporations receive further benefits. International trusts may also see advantages from offshore incorporation in Mauritius. Offshore corporations in Mauritius have become a big business for this notion. Before offshore corporations can incorporate in Mauritius they must understand the offshore incorporation mechanism in Mauritius. We will discuss the benefits of establishing in Mauritius and the process of obtaining a GBC 2 license.
Benefits to Offshore Incorporation in Mauritius
The benefits for offshore corporations choosing to do offshore incorporation in Mauritius are numerous. The benefits include:
English language common law country
Stable democracy
No corporate taxes
No accounts required to be filed to the government
Fast incorporation
Unlike many other countries in which offshore incorporation is available, Mauritius is a very stable country. It also follows the common law which means that common law trained attorneys can guide offshore corporations in Mauritius with ease.
Offshore corporations in Mauritius can have a person of any nationality as a director. This means the country is open to offshore incorporation, and it is very common for directors from other English-speaking countries to head offshore corporations in Mauritius. This is in contrast to counties where offshore incorporation is challenging to achieve because there are requirements that directors be of a certain or limited nationalities. Furthermore, there is a minimum of only one director per company, which makes it cost effective and easy to incorporate in Mauritius. The director may be either a person or another entity.
The residency requirements for offshore incorporation in Mauritius are also very mild. This is because of the fact that directors can reside anywhere, which again makes it effortless for offshore corporations to locate here and enjoy the tax benefits without having to physically relocate any personnel. There is no requirement that a local director be present in Mauritius.
Offshore corporations in Mauritius can also conduct their business anywhere. This means that the directors may meet in London or New York with no legal implications from the authorities in Mauritius.
There are many soft factors that favor offshore incorporation in Mauritius. Located in the Indian Ocean off the coast of Africa, Mauritius offers a year-round pleasant climate that is tropical, but moderated by persistent trade winds. This makes Mauritius a lovely place to spend a lot of time if the need arises. There are also beautiful beaches to explore and lots of pretty nature to see.
The stable political climate is also a huge benefit to offshore incorporation in Mauritius. Lots of countries offer good incentives for locating offshore but very few offer the stable political climate than Mauritius does. There is little fear of forceful expropriation by the government of foreign assets, as has happened in other countries during the last 100 years. This certainty can boost investor confidence in the security of an offshore corporation in Mauritius.
Finally, Mauritius offers a large number of educated, English-speaking persons to assist a company located in Mauritius. The low cost of living means that this highly educated workforce is available at a reasonable price to offshore corporations. Contrast this with other, more expensive locations and the benefits of locating in Mauritius are fairly good.
GBC2 License
There are different classes of global business licenses in Mauritius. The most important for offshore corporations is the GBC 2 license. This license was created under the Companies Act of 2001. There are several restrictions to offshore corporations that are incorporated under this license. Primarily, corporations under this license cannot do business with a Mauritian resident, and it cannot do business using Mauritian currency.
There are also limits to the type of business an offshore corporation can conduct with a GBC 2 license. Some allowed businesses include marketing, information technology support, trading (so long as it is not financial), etc.
A GBC 2 business is also not a resident for taxation reasons, and there is not a minimum asset requirement for GBC 2 offshore incorporation.
The minimum fee for offshore incorporation under a GBC 2 license is $135 in U.S. dollars.
