International Legal Services

mauritius GLOBAL BUSINESS COMPANY 1 (GBS1)

Mauritius Island is located in Indian Ocean. Its territory is 1865 sq km. Population – 1,250,000. The official language is English. Political system is independent state. The president is the head of the state. Legislative power is parliament. The head of the executive power is prime minister. The law system is based on English and French law.

1.	Advantages	- Advantages to use 18 double taxation avoidance treaties, including the one with Russia, which is supposed to ratification. - It is possible to select tax rate from 0% to 25%. - Political and economical stability
2.	Disadvantages	It is necessary to disclose information about beneficial owner of the Company. Tax law has been changed in 1998.
3.	Corporate Law	The Companies Act, 2001 Financial Services Development Act 2001
4.	The form of a tax-exempt company	Global Business Company 1, hereinafter – The Company.
5.	Permitted activities	Any activities permitted by law; Banking, trust, insurance, and reinsurance activities have to be licensed
6.	Prohibited activities	Transactions with Mauritius residents
7.	Taxation	1) The Companies licensed before 1^st July 1998 shall be taxed on net income at 15% effective 1^st July 2003. Between now and 30 June 2003, they can continue to elect their tax rate of 0 to 25% on a retrospective basis or an irrevocable rate of 15%. 2) Entities registered after 30 June 1998 are liable to tax at 15%. The deemed foreign tax credit (granted where actual foreign tax paid is not proven or is lower) on foreign source income currently is 90%, but will be reduced to 80% with effect from 1^st July 2003. There is no capital gain tax and withholding tax on Mauritius.
8.	The registration procedure	There are three stages in establishing a Company: 1) Obtaining the registration permit. It is necessary to present the following documents: - Information about beneficial owner of the Company (if company – audited balance for previous three years) - Bank reference for beneficial owner - Business plan of the Company 2) Registration 3) Obtaining a License (the list of requirements are available upon request)
9.	The period of registration	2-4 weeks
10.	The possibility to buy a shelf company	No
11.	The name of a Company	Should not be identical or similar to any existing one. The name should contain the words: “Limited”, “Corporation”, “Incorporated”, “Societe Anonyme”, “Sociedad Anonima”, “Aktiengesellschaft” or the abbreviations “Ltd.”, “Corp.”, “Inc.”, “A/S”, “GmbH”, “S.A.”. The words: “Assurance”, “Bank”, “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Insurance”, “Trust Company”, “Trustee Company” or other words and word combinations having the same meaning may not be used in the name of a Company.
12.	The documents for incorporation	Memorandum, the Articles of Association
13.	Who signs the documents of incorporation?	Two subscribers, who are responsible only for signing the documents of incorporation and appointment of the first director.
14.	The share capital of a Company	Share capital is declared. It is not mandatory to be paid. There are no minimum or maximum requirements.
15.	The recommended share capital of a Company	100,000 USD divided into 100 000 shares with nominal value 1 USD.
16.	Shares	Only registered shares with nominal value are permitted.
17.	Shareholders: - minimum number - Nominee	Two (may be individuals or legal entities) Yes
18.	Privacy of information about: - beneficiary	Beneficial owner of the Company is registered on Mauritius.
19.	Directors: - minimum number - ethnic origin and nationality - status	- Two private individuals - No requirements, but for using tax treaties it is necessary to employ two local directors - All rights except those within the exclusive competence of the shareholders (determined by the Articles of Association and/or law)
20.	The existence in the territory of: - registered address - registered agent	Obligatory Obligatory It is obligatory to have local secretary, local accountant, auditor and bank account with local bank.
21.	Meetings of: - shareholders - directors	For using tax treaties meetings of the directors and shareholders should take place on Mauritius. It is possible to authorize attorneys.
22.	The requirement of: - the accounting - preparing the annual report - submission of the auditors’ opinion	Yes Yes Yes
23.	The information available upon request of any third parties	Memorandum, Articles of Association, registered agent and address, subscribers and shareholders.
24.	Double taxation avoidance treaties	Botswana, China, Federal Rep. of Germany, France, Hungary, India, Indonesia, Italy, Kuwait, Libya, Luxembourg, Madagascar, Malaysia, Namibia, Pakistan, Singapore, Romania, South Africa, Swaziland, Sweden, Thailand, United Kingdom, Zimbabwe, Belgium, Sri-Lanka, Cyprus, Madagascar. Signed but not yet ratificated – Russia, Lesoto In process of negotiations, but not yet signed – Vietnam, Bangladesh, Malavi In process of negotiations: Canada, Greece, Portugal, Saudi Arabia, Zambia
25.	Currency control	No