Setting up an Authorised Company (AC) and a Global Business Company (GBC) in Mauritius involves understanding their different purposes, activities, and tax implications.
An Authorised Company is primarily designed to conduct business outside of Mauritius. While it can be used for a variety of non-financial activities, it does not have access to the country’s network of tax treaties. ACs are exempt from profits tax but are subject to an annual licence fee based on their authorised share capital.
On the other hand, a Global Business Company can conduct business activities both inside and outside of Mauritius. It can be involved in various activities such as trading, services, financial services, and holding investments. GBCs are subject to a 15% profits tax rate but can benefit from a deemed foreign tax credit, leading to an effective tax rate as low as 3%. They also pay an annual license fee based on their authorised share capital.
Both types of companies have different regulatory requirements and benefits, making them suitable for different types of business operations and structures. When considering these options, the use of trusted business formation services in Mauritius can provide valuable guidance and support in selecting the appropriate company structure for your needs.