GBCs, Authorised Company et Domestic Company: Understanding business structures in Mauritius

Mauritius has become an increasingly attractive destination for international investors, thanks to its favorable regulatory framework and appealing tax regime. Companies looking to establish or domicile in Mauritius can choose from three main types of structures: the Global Business Company (GBC), the Authorised Company, and the Domestic Company. Each option is designed to meet specific business needs and offers distinct advantages in terms of taxation, management, and compliance. C&S Secretarial Services breaks down everything you need to know about these structures.

What is a Global Business Company (GBC)?

A Global Business Company (GBC) is a structure licensed by the Financial Services Commission (FSC) of Mauritius and is mainly designed for conducting business activities outside the country. With its favorable tax regime and access to double taxation treaties, the GBC stands out as a strategic choice for international companies looking to expand their operations.

Advantages of a GBC in Mauritius

Tax benefits: Standard 15% income tax, with partial exemptions available on certain activities and no taxes on capital gains or dividends. Double taxation agreements often reduce the effective tax burden to around 3% for international activities.

Global flexibility: A GBC can operate almost anywhere in the world while benefiting from Mauritius’ economic and political stability.

Infrastructure and skilled workforce: Access to competent professionals, especially in the financial and legal sectors.

No exchange controls: Funds can move freely in and out of Mauritius.

Restrictions

Without a specific license, a GBC cannot conduct:

Banking or insurance activities
Trust or fund services
Securities or collective investment fund management
Gambling or casino operations

Constitution requirements

Shareholding and control: Strategic decisions must be taken in Mauritius.
Directors and secretary: At least two resident directors and one qualified secretary are required.
Registered office: Mandatory in Mauritius.
Name and documents: Name approved by the Registrar of Companies, incorporation documents in English or French, detailed business plan, legal certificates, compliance checks, and annual reports to the FSC and MRA.

Incorporation process

Name check: Confirm availability with the Registrar of Companies.
Application submission: Send required documents to the FSC.
Payment of fees: Incorporation and annual renewal fees.
Certificate of incorporation: Company officially created upon approval.

Compliance obligations

Maintain sufficient share capital, with different share classes possible.
Demonstrate adequate local substance: resident directors, bank accounts, and accounting in Mauritius.
Submit financial statements and annual returns to the FSC and MRA.

Taxation

GBCs are subject to a 15% corporate tax on profits, with the possibility of an 80% partial exemption on certain activities, bringing the effective tax rate to 3–3.4%. Additionally:

No withholding tax on dividends, interest, or royalties.
No capital gains tax.

Key economic data

According to the FSC and recent statistics:

Total GBC assets reached USD 753 billion in 2023.
The global business sector contributes 8.4% to Mauritius’ GDP.
Bank loans to GBCs stood at MUR 83.682 billion in December 2023.

These figures show that GBCs play a major role in the economic dynamism and development of Mauritius’ financial sector.

What is an Authorised Company?

An Authorised Company is one that is mainly owned by non-residents and whose management and control are conducted outside Mauritius. Unlike GBCs, an Authorised Company is not considered tax resident in Mauritius.

Key characteristics

Taxed only on income sourced from Mauritius.
Not eligible for double taxation treaties.
Management and control recommended outside Mauritius, with most directors being non-residents.
Must appoint a local Registered Agent, often a licensed management company like C&S Secretarial Services.

Restrictions and obligations

Authorised Companies cannot:

Employ resident staff in Mauritius.
Open accounts in local currency.
Acquire or rent real estate in Mauritius.

They must, however:

File annual tax returns with the Mauritius Revenue Authority (MRA).
Maintain a registered office in Mauritius.

2023 statistics

Active Authorised Companies: 6,296 (slight increase from 6,142 in 2022).
These companies indirectly contribute to the Mauritian economy by purchasing local services such as accounting, management, and legal support.

What is a Domestic Company?

A Domestic Company is incorporated under Mauritian law and primarily intended to operate on the island.

Key characteristics

Must comply with all local laws (Companies Act 2001, Income Tax Act 1995).
Standard corporate tax applied on Mauritian income.
Must maintain a registered office and minutes for board meetings.

Advantages

Simple structure for companies operating only in Mauritius.
Direct access to local markets.
No international substance requirements.

How are Domestic Companies different from GBCs or Authorised Companies?

Unlike GBCs and Authorised Companies:

A Domestic Company is a tax resident in Mauritius.
It does not need to demonstrate that its main activities are conducted abroad.

Comparative summary of the three structures

Criteria	GBC	Authorised Company	Domestic Company
Main purpose	International activities	International activities	Local activities
Tax residence	Yes	No	Yes
Taxation on foreign income	Effective 3-3,4%	Exempt	Standard rate
Access to tax treaties	Yes	No	Yes, depending on the case
Registered office	Mandatory	Mandatory	Mandatory
Directors	Local + international	Mostly non-residents	Mainly residents
Mandatory audits	Yes	No	Yes
Economic substance	Yes	No	No
Employment in Mauritius	Limited	Prohibited	Possible

Why choose C&S Secretarial Services to create your company in Mauritius?

Setting up a GBC, Authorised Company, or Domestic Company in Mauritius requires compliance with local legislation and a complete application file. C&S Secretarial Services offers:

Full company incorporation and liaison with the Registrar of Companies.
Management of board meetings, drafting of minutes, and administrative compliance.
Provision of registered office address and management of local substance for GBCs.
Assistance with work and residence permit applications for directors and employees.

With C&S, creating and managing your company in Mauritius is simplified and fully compliant with local and international standards.

Conclusion

Mauritius provides an ideal environment to establish or domicile your business thanks to its tax advantages, economic stability, and clear regulations. The choice between a GBC, an Authorised Company, and a Domestic Company depends on your objectives: internationalisation, tax optimisation, or local business operations.

For comprehensive and secure support in setting up your company in Mauritius, get in touch with C&S Secretarial Services today. Their expertise will save you time, ensure compliance, and let you focus fully on your business growth.