One of the benefits of establishing a company in Mauritius is that you can enjoy tax exemptions. Investors wishing to benefit from a five year tax holiday may apply for the following licences: Global Treasury Activities and Overseas Family Office.
Global Treasury Activities
The Mauritius Global Treasury Activities Licence gives multinational companies the opportunity to establish or relocate their regional treasury management services to Mauritius. Besides from the five-year tax holiday, they will be able to enjoy several other benefits. A corporation wishing to offer at least three of the following services to at least three related companies may apply for the Licence.
- Arrangement for credit facilities, including credit facilities with funds obtained from financial firms in Mauritius or from surpluses from network companies,
- arrangements for derivatives,
- corporate finance advisory,
- credit administration and control,
- guarantees, performance bonds, standby letters of credit and services relating to remittances,
- factoring, forfeiting and re-invoicing activities,
- management of funds for designated investments and
- other global treasury activities that may be specified in FSC regulations.
Moreover, besides the normal licensing requirements for Global Business companies specified by the FSC, the applicant must also have a physical office in Mauritius, must employ a minimum of four professionals with at least one at managerial level and it should incur an annual expenditure of at least MUR 2m (approx. USD 60,000).
What are the benefits of this licence?
Companies operating from Mauritius will have the opportunity to benefit from the country’s extensive range of bilateral and multilateral agreements. They can also enjoy a sound legal system, good corporate governance, a reliable banking infrastructure, a qualified, skilled and experienced workforce and no foreign controls. Additionally, if they meet all the requirements, companies with a Global Treasury Activities Licence can enjoy a tax holiday of five years on corporate income.
To apply for this licence, promoters must, through a management company, submit standard material contract(s) or agreement(s) to be executed with related companies, an internal controls manual, track record and credentials of the promoter, shareholders and general information regarding the company to the FSC. These must also be accompanied by a detailed business plan alongside other documents.
Overseas Family Offices
The Overseas Family Office Licence was implemented to cater for the domiciliation of high net worth family and multifamily offices. There are two types of this licence. They are the Single Family Office and the Multi Family Office. Both of them are regulated by the FSC. What are the features of Overseas Family Offices?
- Corporate tax residency in Mauritius,
- Work and live permit for immediate family members in Mauritius and
- Eligibility to acquire immovable properties in Mauritius.
As with Global Treasury Activities, if the licensee follows all the requirements set out by the FSC, he shall be granted tax holidays for a period of 5 income years.
If you wish to find more details on these licenses or you want to know more information on the application procedures, feel free to get in touch with us.