GBC1 (The Category 1 Global Business Licence Company) is a company which is located in Mauritius but having a valid licence to conduct any lawful business activity outside Mauritius. A GBC1’s incorporation and running is governed by the Companies Act 2001 and its whole supervision and monitoring is made by the Mauritius Financial Services Commission (FSC) under the Financial Services Act 2007 (FSA).
Moreover, since a GBC1 is considered to be a tax resident in Mauritius, it has the privilege of obtaining a Tax Residence Certificate (TRC) by the Mauritius Revenue Authority (MRA), which is issued annually. Thus, as compared to its GBC2 counterpart, a GBC1 can enjoy the various benefits resulting from Mauritius’ involvement in the Double Tax Agreement network. Nonetheless, the TRC will only be issued when the minimum criteria of substance in Mauritius are met.
- 71(4) of the FSA dictates the conditions that a GBC1 must meet in order to demonstrate substance in Mauritius:
- Having at least 2 directors who are Mauritian Residents, and they have the competence of exercising decisions and judgements with an independent mind.
- At least 2 directors from Mauritius are included when meetings of directors are convened.
- The firm’s accounting records must at all times be kept at its registered office, in Mauritius.
- The firm’s principal bank account must be maintained in Mauritius at all times.
Its statutory financial statements must be both prepared and audited in Mauritius.
What is a Global Business category?
Very much similar to its GBC1 counterpart, a GBC2’s incorporation and running is governed by the Companies Act 2001 and its whole supervision and monitoring is made by the Mauritius Financial Services Commission (FSC) under the Financial Services Act 2007 (FSA). The Category 2 Global Business Licence (GBC2) is also issued with a valid global business license; it can conduct any lawful business activities outside Mauritius, except those mentioned in the Fourth Schedule of the FSA:
- Financial Services other than operating leases
- Carrying out the business of holding or managing as a professional functionary
- Dealing with a collective investment fund or scheme as a professional functionary
- Providing such corporate services as registered office facilities, nominee services, directorship services, secretarial services and other
- Conducting business to provide trusteeship services
- A GBC2 is entirely exempt from paying tax in Mauritius. As such, it is not even considered to be a Mauritius Tax Resident and will therefore not benefit from the DTAA