Mauritius announces new requirements to guide global business
The Financial Services Commission (‘’FSC’’) has recently issued a communiqué – Amendments to the Guide to a Global Business - in an attempt to position Mauritius as a jurisdiction of substance.
The amendments require companies holding a Global Category 1 Business License (GBC 1) to have presence which can be reasonably expected from a corporation managed and controlled in Mauritius.
The measures are being introduced to address the concerns of India and to address the concerns that the double tax avoidance agreement in place between India and Mauritius has been used by round trippers, where money has been moved out of India only to re-enter appearing as foreign capital.
All GBC1 companies have to comply with the new requirements by January 1st 2015.
Amicorp (Mauritius) are happy to assist any clients in structuring their corporate structures for substance purposes by implementing compliant corporate governance structures.
An overview of the new requirements
Current Tax Residency Certificate
A Tax Residency Certificate (“TRC”) is a certificate issued by the Mauritius Revenue Authority (“MRA”) to demonstrate that the company is managed and controlled in Mauritius and thus tax resident in Mauritius.
Criteria for tax Residency Certificate
- Shall have at least 2 directors, resident in Mauritius, who are appropriate qualified and are of sufficient caliber to exercise independence of mind and judgement;
- Shall maintain at all times its principal bank account in Mauritius;
- Shall keep and maintain at all times its accounting records as its registered office in Mauritius;
- Shall prepare or propose to prepare its statutory financial statements and cause or propose to have such financial statements to be audited in Mauritius; and
- Shall provide for Meetings’ of Directors to include at least 2 directors from Mauritius.
Amendments and additional criteria
Apart from the existing TRC Conditions, a GBC1 needs to comply with at least one of the six mentioned requirements:
- To have premises in Mauritius; or
- To employ on a full time basis at administrative/technical level, at least one person who shall be resident in Mauritius; or
- To provide for a clause in its constitution whereby all disputes arising out of the constitution shall be resolved by way of arbitration in Mauritius; or
- To hold within the next 12 months, assets (excluding cash held in bank account or shares/interests in another GBC1) which are worth at least USD 100,000 in Mauritius; or
- To have its shares listed on securities licensed by the FSC; or
- To have a yearly expenditure in Mauritius which can be reasonably expected from any similar corporation which is controlled and managed from Mauritius
It is also noted that if a GBC 1 is authorized/licensed as a collective investment scheme, closed end fund or external pension scheme, the FSC shall take into consideration whether the GBC1 is administered in Mauritius.
Amicorp (Mauritius) Limited is licensed by the Financial Services Commission of Mauritius to provide company fund and trust set up services as well as management / administration services including providing directorship, corporate secretarial, registered office, book keeping, accounting and any and all related administrative services.