Why a GBC is the stronger choice than an Authorised Company in Mauritius

Choosing between a Global Business Company (GBC) and an Authorised Company (AC) in Mauritius depends on your strategic priorities and the scale of your international ambitions. Although the AC may appear attractive because of its simplicity, the GBC remains the preferred option for any business seeking long-term growth, stronger credibility, and recognition in global financial markets. C&S Secretarial Services, experts in corporate secretarial and administrative support in Mauritius, explains the key differences.

Tax residency: A clear competitive advantage

The most important distinction between the two structures lies in their tax residency status. A GBC is recognised as a tax resident in Mauritius, which gives it access to the country’s wide network of double taxation treaties. This can significantly reduce or eliminate withholding taxes on cross-border transactions.

An AC, by contrast, does not qualify as a Mauritian tax resident. It therefore cannot benefit from tax treaties, often resulting in higher withholding taxes abroad. This limitation may also raise concerns among banking and commercial partners, who may view the structure as less transparent.

Significant differences in permitted activities

A GBC can engage in a wide variety of regulated financial activities, including asset management, fund administration, treasury operations, and international trade. It may work with both resident and non-resident clients.

During a workshop held by the Economic Development Board (EDB) in August 2025, the Mauritian government reaffirmed its intention to broaden the scope of activities available to GBCs, particularly through the Mauritius Freeport regime. Newly identified opportunities include precious metal minting and refining, secure vault services, e-commerce logistics hubs, and even the high-value art trade, an activity introduced in the 2025–2026 Budget enabling storage, exhibition, and auctions in world-class facilities.

An AC, however, is restricted to non-financial holding activities, consultancy, and international trade conducted exclusively outside Mauritius. It cannot access local banking services, fund administration, or fiduciary services. These restrictions greatly limit its versatility.

Taxation and accounting obligations

A GBC is taxed at 15%, with the possibility of an effective rate of 3% on qualifying foreign-source income if substance requirements are met. It is not subject to capital gains tax, inheritance tax, or withholding tax on dividends, interest, or royalties.

An AC is exempt from Mauritian income tax but cannot benefit from treaty-reduced withholding rates. It must prepare simplified financial statements, with no audit requirement. A GBC, on the other hand, must maintain audited accounts and comply with more robust regulatory standards, a key factor that enhances its credibility internationally.

Economic substance and strengthened credibility

A GBC must demonstrate real economic presence in Mauritius by appointing local directors, maintaining office premises, and employing staff. This greatly enhances its credibility with banks and investors. A GBC can also own or lease property, hold bank accounts in Mauritian rupees, and allow foreign shareholders or employees to apply for residence permits.

As the Minister of Finance emphasised during the EDB workshop, economic substance requirements form part of Mauritius’ broader strategy to position itself as a gateway to Africa. The goal is to attract substantial investments through GBCs capable of integrating into regional value chains and contributing to national development.

An AC, typically managed from abroad, cannot own property in Mauritius or open bank accounts in local currency. Its lack of physical presence makes it less suitable for large-scale or long-term projects.

Regulation and operational framework

A GBC is supervised by the Financial Services Commission and must adhere to strict governance and reporting obligations. Although its annual operating costs are higher than those of an AC, this regulatory rigor strengthens trust with international partners and simplifies banking relationships.

An AC remains more cost-effective and easier to manage, making it a suitable option for simple holding structures or small-scale commercial activities that do not require local substance.

Which structure is best for your project?

A GBC is particularly well suited for financial services companies with international ambitions, as well as for sophisticated wealth management or structured investment activities. Its access to tax treaties, ability to hold assets in Mauritius, and integration into a recognised financial ecosystem fully justify its higher level of regulation.

According to the EDB, promising growth areas for GBCs include sustainability, climate resilience, and the digital economy – sectors in which GBCs can innovate, adopt green technologies, and contribute to regional development.

An AC remains a practical option for straightforward offshore arrangements where local presence and treaty benefits are not fundamental.

In conclusion

For internationally focused financial businesses, the GBC remains Mauritius’ premier corporate structure. It offers regulatory strength, tax efficiency, and operational flexibility. Combined with new investment opportunities in the Freeport and growing government support for innovative sectors, the GBC provides a future-ready framework aligned with Africa’s expanding markets and global financial trends.

The AC, while more accessible, is limited in scope and does not offer the same potential for developing a credible international presence or engaging in high-impact economic activities.

For the creation or management of your GBC or Authorised Company, C&S Secretarial is here to guide you at every step of your project.

Sources of this article:

1. https://loitamauritius.com/global-business-licence-authorised-company/
2. https://global.acclime.com/guides/mauritius-global-business-licence-company/
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4. https://www.tetraconsultants.com/blog/a-detailed-comparison-between-the-3-types-of-companies-in-mauritius/
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