The best route for investment into India is via offshore company formation Mauritius.

Company incorporation in Mauritius sounds like an unlikely option to those who are focused only on old World offshore centers like Switzerland or the Isle of Man!

There are many ways for offshore company formation in Mauritius:

1. Category 1 and 2 Global Business Companies.

2. Collective Investment Schemes – Funds

3. Management Companies and Other Service Providers

1. GLOBAL BUSINESS VEHICLES

The offshore company formation mauritius available to carry global business activities from within Mauritius are companies holding a Category 1 Global Business Licence (GBC1) , and companies holding a Category 2 Global Business Licence(GBC2).

Other entities available are Protected Cell Companies [PCC], Trusts and société which we shall cover elsewhere.

i. a) Category 1 Global Business License [GBC 1]

A Global Business corporation (Category 1) is an offshore company formation mauritius which undertakes any of the following activities listed in the Second Schedule of the FSDA 2001 which is carried on from within Mauritius with persons all of whom are resident outside Mauritius and which is conducted in foreign currency:

- Aircraft financing and leasing

- Assets management

- Consultancy services

- Employment services

- Information and communication technologies

- Insurance

- Licensing and franchising

- Logistics and or marketing

- Operational headquarters

- Pension funds

- Shipping and Shipping Management

- Trading

- Any other activity as may be approved by the Commission

This type of company is qualified to take protection of the tax treaties to which Mauritius is a party if it comes within the definition of a resident under the taxation laws. Foreign direct investment into India has taken this route largely because of the highly successful double tax treaty between the two countries!

* A GBC 1 is required to file with the Financial Services Commission within six months after the close of its financial year, annual audited financial statements prepared in accordance with the International Accounting Standards or internationally recognised accounting standards.

* The GBC 1 may be set up by direct offshore company formation mauritius, or by registration of a branch of a foreign company, or by way of continuation where this is allowed by the law in the country of origin.

* A branch of a foreign company may have access to Mauritius’ tax treaties provided that the local tax authorities are satisfied that effective control and management of the foreign company is in Mauritius.

* The facility of continuing a foreign company registered in a foreign jurisdiction as a GBC 1, and so permitting existing holdings of the foreign company in a country with which Mauritius has a double taxation treaty to benefit from relief under that treaty, has proved attractive to a number of major investors.

* A GBC 1 may be unlimited or limited by shares or by guarantee.

* A GBC 1 may be registered as a Limited Life Company or a Protected Cell Company.

ii. b) Category 2 Global Business License – the simple offshore company.

A Global Business 2 offshore company formation mauritius which is carried on by a private company:

- which is a company incorporation in mauritius or registered under the Companies Act 2001

- which does not conduct business with persons resident in Mauritius nor conducts any dealings in Mauritius currency;

- which holds a Category 2 Global Business License.

- It is exempt from the provisions of the Income Tax Act and is declared as non resident for tax purposes.

- It is a suitable vehicle for holding and managing private assets.

- It is however not allowed to raise capital from the public or to conduct any financial services or to act as a fiduciary.

- The GBC 2 company incorporation in mauritius is not resident for tax purposes and therefore does not benefit from double taxation relief under tax treaties.

- The GBC 2 may either be limited by shares or by guarantee or limited by shares and guarantee or simply unlimited.

- A GBC 2 may also be structured as a Limited Life Company.

Please bear with us while completing the Mauritius company documents required!

The Mauritius company documents required for incorporation are lengthy, and certainly not for those seeking anonymity.

If you are looking for a respected offshore jurisdiction for a new incorporation – from where you can save millions because of its double tax treaties with India and several other countries, then this page is for you.

Incidentally, Mauritius is now the second largest investor into India!

Below is a checklist of Mauritius company documents required for any of the 4 types of business incorporation available in Mauritius:

a] GBC 1 – Resident Mauritius company

b] GBC 2 – International business corporation

c] Trust [same as GBC 1]

d] Protected Cell Company [same as GBC 1]

Know Your Client Mauritius company documents required for offshore company formation are listed below:

These are applicable for all beneficial owners, directors, secretaries, shareholders, bank account signatories and power of attorney holders.

01. PROOF OF IDENTITY

a. Passport Copy – Authenticated

b. It must bear a photograph, signature and the number and must be certified with the following wording: “Having seen the individual and the identification document at the same time I certify that this is a true copy” (clearly showing signature, name, position and company of the official) by notary / embassy.

02. PROOF OF RESIDENTIAL ADDRESS

a. To validate the home addresses of all parties, please provide at least two of the following: Bank, Utility, Credit Card

03. BANKER’S REFERENCE

a. A recent original bank reference clearly stating the Banker’s opinion. It must clearly state the duration of the relationship and that the account is in good standing.

04. BUSINESS PLAN

05. STATEMENT OF SOURCE OF FUNDS FROM THE SHAREHOLDER.

06. CURRICULUM VITAE

07. BUSINESS RECORD

08. Consent form – As a Director.

09. Consent form – As a Shareholder.

10. Declaration only Non Resident Funds.

11. FOR GBC1 [Resident in Mauritius] Company only

A Certified copy of an approval from the [Country’s] Authorities authorizing the Company to invest in that country, OR: A legal opinion wherein the following points should be mentioned:

a. The Company is a [type] and is owned by [names of investors].

b. The company intends to invest in [name of country]

c. The source of funds will be from (name of country)

d. That the Company does not need any approval under Section …….. (Mentioning the Section or clause) as per the Treaty between [country name] and Mauritius. This information will be furnished by your Lawyer as per the country’s] Law.

Trusts of many types which protect inheritances and identities – whichever you are looking for.

Trusts are legal entities where you give your assets and or income to a them – for free. The trustees then are responsible for the administering of these assets under your guidelines as may have been set forth by you at the formation of the trust.

The basic characteristics are:

- Highly confidential

- Combined with a GBL company it can conduct business.

- You can set rules of how to distribute income or wealth during your lifetime or after you pass away

.- You can be, or appoint a person who supervises the Trustees.

- You can chose which laws govern the Trust.

The costs are about the same as for a Resident Mauritius {GBL 1] company but the Trust is very versatile.

So which type of Mauritius offshore company formation is good for you?

Protected Cell Company for multiple investments with different investors via one company but different ‘investment cells’. Insurance companies with different risk profiles and customer types, and funds opt for this structure since it is expensive to administer.

The main features are:

- Its a single legal entity, but it can have separate ‘cells’ each with their own assets, liabilities and investors.

- Each ‘cell’ issues its own dividends and financial statements, and has its own directors.

- Each cell can be liquidated when it outlives its financial usefulness – e.g. funds raised for a separate finite life project.

- Funds use this structure for different class of investors or for different class of investments.

Since all the administrative costs for each cell are the same as those for a company, only large financial systems use this structure.

General Business License 1 [GBL 1] company is a resident, 3% tax company, for investing in 28 countries where it has Double Tax Avoidance Treaties – prominent among them are India, China, Sri Lanka, Pakistan and South Africa.

The main features are:

- No withholding or dividend taxes.

- Easy investment into India, China and 26 other countries.

- Strict and detailed Know Your Client requirements as above.

- It is the cheapest option for a Mauritius offshore company formation.

- There is are no taxes.

- Information is not made public, and neither are audited accounts required.

- Corporate and nominee directors are allowed.

- Stricter Know Your Client laws make this a lesser used option for pure offshore companies which do not need the double tax treaty advantages.

Mauritius Offshore Company Formation: An Investor’s haven

The island of Mauritius has a total land area of around 784 square miles. The road and public infrastructure is well developed with 1,926 km of highway of which around 1868 km is paved. These highways are also equipped with around 44 km of expressways to ensure the fluidity of traffic circulation. Only around 58 km of roads in Mauritius have been left unpaved.

The island of Mauritius was known to Arab and Malay sailors as early as the 10th century. Mauritius was first explored by the Portuguese in 1505. Mauritius formally broke ties with the British Crown in March 1992, becoming a republic within the Commonwealth.

Since then Mauritius has progressed in leaps and bounds. Mauritius has attracted considerable foreign investment and now has one of Africa’s highest per capita incomes.

For attracting prospective investors Mauritius offers a range of very attractive investment incentives. The focus is on improving the financial sector and the various services provided by it, to make Mauritius offshore company formation a suitable option for investors all over the world.

The process of Mauritius offshore company formation is different from a lot of other countries. The company incorporation in Mauritius is known as GBL 1 which is an abbreviation for ‘global business license company category 1’.

The companies incorporated in Mauritius are entities increasingly opted for by non resident Indians (or NRIs) for tax friendly investment into India because of the double tax treaty between the two countries.

Mauritius is a safe country for offshore investment because of its vibrant democracy and political and economic stability.

Mauritius offshore company formation is usually more difficult in terms of legal requirements because the Government of Mauritius give special attention to the process of company incorporation in Mauritius.

The process of Mauritius company formation usually takes more time than the formation of companies in other offshore jurisdictions, but going through a Mauritius offshore company formation and setting up a corporation is well worth the time and effort required due to the various advantages offered by the Mauritius legislation.

The legislation governing companies in Mauritius can be easily recognized as having been descended from English law. Many Mauritian lawyers and attorneys have been trained in the UK. Mauritius offshore company formation and handling of other company affairs is regulated under the Companies Act 2001.

Formation of a company here is expensive and time consuming because of the extensive documentation required.

However the actual registration process for a Mauritius offshore company formation is quick, provided the Know Your Client documents are in order.

Mauritius facts: Currently, it is the only country that enjoys the special double tax treaty with India allowing resident Mauritius companies to avoid capital gains taxes on shares and withholding taxes on dividends

Mauritius is an archipelago (a cluster of Islands is known as an archipelago) formed almost 10 million years ago due to undersea volcanic eruptions but is now volcanically inactive. Together with Rodrigues and Reunion it forms the Mascarene Islands.

Talking about Mauritius facts, it is a tropical country – check out the current temperature below – and attracts a considerable amount of tourists during the summer months between May to November. Winter is not as harsh as in other countries but is rather dry. However cyclones tend to affect Mauritius between November to April.

Mauritius is known for its natural beauty and sea beaches. Port Louis is the capital and some of the other important towns are Curepipe, Flacq, Quatre Bornes, Rose hill, Vacoas and Phoenix. Mauritius facts also speak about places such as the Black river gorges known for its dense forests with different types of exotic birds and unique plant species.

Though officially known as the Republic of Mauritius it is also known by other fancy names such as ‘Pearl of the Indian Ocean’ and ‘Star of the Indian Ocean’. Regarded as one of the most sought after holiday destinations, its resort areas like Mont Choisy are very popular with tourists.

Similarly Flic en Flac is popular with scuba divers and Riviere Noire for deep-sea fishing.

Mauritius facts also shed light on some other interesting information about this Island. The ‘Dodo’ bird which became extinct used to live in Mauritius till its complete extinction from earth. Sega shows are very popular with tourists with shows being organized in coastal hotels. In fact Sega which has its roots in Africa found recognition in Mauritius. Traditional goat-skin percussion instruments are used to produce music for this unique dance and are played by men with women performing an accompanying dance.

Decorated with raw splendor and breathtaking beauty, Mauritius has been quite successful in preserving its resources.

Mauritius facts tell us that it is officially a part of Africa though it is quite far away from it, almost 1900 kms away. Located in the South West Indian Ocean it is also accessible from India.

The population comprises of Africans, Indians, Europeans and Chinese and it has the highest per capita income in the continent, mostly because of its business of company incorporation in Mauritius. The main industries of Mauritius are sugarcane farming and manufacturing and tourism.

Port Louis, its capital, is a busy port with a modern waterfront and bustling market. Mauritius has developed significantly since its independence in 1968. It has evolved from an agriculture based country into a diversified economy.

Mauritius facts point out that though the economy of this Island country relies on textile, sugarcane and tourism industries yet different sectors are also developing as well. Though the sugarcane industry brings about 25 percent of the total country’s income the government of Mauritius is now focusing on the foreign investment sector and the offshore Mauritius banking sector to further strengthen its economy. With offshore company administration becoming the preferred choice for investors, Mauritius, with its investor-friendly investment policy is attracting people from all over the globe.

A Management company incorporation in Mauritius is liable to a tax rate of 15% on its chargeable income.

- Business plan with three years forecast figures.

- Details and track record of promoters (including future Directors) and support documents.

- Relevant expertise of promoters in international business, company and trust formation and administration.

- Support documents on promoters’ network, affiliation, niche markets or targeted clients.

- Support documents indicating that promoters have necessary infrastructure and expertise in place to apply due diligence and know your client principle.

Applications may be submitted directly to the Commission although it is appropriate to channel the application through a local representative for better coordination.