The continuing success and reputation of Mauritius as a regional financial services center has been strengthened by the firm commitment of the Government of Mauritius to promote and support its financial services sector.

The Island enjoys a number of advantages such as political and economic stability since its independence from the United Kingdom in 1968. It also has an enviable network of double taxation treaties which makes Mauritius an excellent tax planning jurisdiction (List of Double Taxation Treaties).

In the past, only certain prescribed activities qualified for a Global Business Licence. With the advent of the Financial Services Act 2007, there are no longer such restrictions, but a Global Business Licence will not be granted if the activity is unlawful, contrary to public interest or if it can cause serious prejudice to the good repute of Mauritius as a Financial Services Centre.

In line with the new legislation and Government policy, the FSC expects, and actively encourages, substance in Mauritius from GBC 1 companies.

Consequently, GBC 1 companies should not only be administered, managed and controlled in Mauritius, but also carry out the lion’s share of their activities within the borders of the island, thereby supporting their ultimate purpose in Mauritius.

A GBC 1 is best suited to conduct financial services e.g. fund management, insurance and pension funds, provided the requisite approval/registration is obtained under the relevant Acts. However, it may also engage in non-financial services as well. Audited financial statements of a GBC 1 need to be filed with the FSC on an annual basis.

Since a GBC 1 is tax resident in Mauritius, it may benefit from the advantages available under double taxation treaties (List of Double Taxation Treaties).

A GBC 2 may conduct any activity except Financial Services, Corporate Services and Trusteeship Services by way of business.

As a GBC 2 is not resident in Mauritius for tax purposes, it cannot benefit from double taxation relief under the available tax treaties. It is best suited for holding and managing private assets.