Mauritius Offshore Guide
Mauritius is an island, part of the Mascarene Islands situated in the southwest Indian Ocean; 900 kilometers east of Madagascar and roughly 2400 kilometers off the South East coast of Africa. The island is of volcanic origin covering an area of 1,865 square kilometers. A large part of the Mauritius coast is bordered by coral reefs; which constitute to the natural beauty of the island with a tropical local climate.
Since 1968, Mauritius economy has evolved from being a low income agricultural based economy; it has slowly emerged to being an average income varying economy coupled with developing industrial, financial, and tourist districts.
In most aspects an offshore company can execute the same business transactions in the same way as an onshore company. The only difference lies in the fact that tax rate applied by the government in authority wherein the offshore company is integrated is considerably low if not zero. This is the reason why many companies opt for offshore company formation in strategic countries calculated to have excellent financial centers like Mauritius.
Global Business License 1 (GBL 1) is a company employing global business carried on from inside Mauritius with persons all of whom are residents outside Mauritius and where business is conducted in a currency other than Mauritian rupee,” as defined under the Financial Services Development Act 2001. Companies under this category are subject to low tax rates. On the other hand, the same act defines Global Business License 2 companies, as a private company that conducts business with persons all of whom are residents outside Mauritius and in a currency other than the Mauritian rupee. They are exempted in paying taxes but cannot be used for banking, insurance and fund-related activities. They are not allowed to access the double taxation agreements of Mauritius.
Discovering Mauritius Offshore – Advantages
The Government of Mauritius is permanently rooted in its honored and admired democratic tradition of great respect for the governing law dating back before its independence in 1968. This is clearly manifested in how major political parties show consideration for the spirit of supporting the advancement of the financial service sector as an important component in enhancing the nation’s economy. In supporting this aim, specific legislations were created to attract global investors; private individuals and corporations alike. A special regulatory body named as Financial Services Commission was established to deal exclusively with offshore matters under the Mauritius Financial Services Development Act 2001. This regulating authority is responsible for approving applications to incorporate companies in Mauritius. They make sure that demands of offshore customers are met within the specific standards aimed to employ investor protection and upholding the reputable character of Mauritius as an International Financial Service Center.
Confidentiality, Reputation and Entrenched Banking System. All information submitted to the Financial Services Commission is kept private and confidential as indicated in the law governing this practice. The regulating body makes sure that Mauritius will not be engaged in any money laundering operations and tax evasions; this is the reason why the offshore industry in Mauritius is based on the application of double taxation treaties it has signed with other countries. This is the Mauritian approach in dealing with offshore companies – primarily more on quality not on quantity.
Mauritius guarantees to provide excellent financial services with the presence of well-established banking institution and an international stock exchange combined with state-of–the art telecommunications facilities.
Offshore sector in Mauritius is not required to pay withholding taxes on dividends, royalties, and interests; nor will they be required inheritance taxes.
The further strengthening of the financial and fiscal agenda by means of ratification of comprehensible and forward-looking rules and regulations has played a great part in giving rise to Mauritius as an outstanding offshore financial service center - giving way to a more vibrant, energized and productive Mauritius. These legislations were enacted to make Mauritius a very tempting destination for maintaining and constituting global investments.