The much-awaited enhanced substance requirements for Mauritius’ Global Business Corporations were announced in October, by way of two Circular letters issued by the Mauritius Financial Services Commission:
- The new enhanced substance requirements (CL1-121018)
- Indicative core income generating activities (CL151018)
Details of these circulars can be read in Maitland’s bulletin>
These Circulars give effect to reforms to the global business sector announced in the 2018/19 Budget, and brought into force by the Finance (Miscellaneous Provisions) Act 2018. The reforms aim to further enhance Mauritius’ reputation as a jurisdiction of substance. As part of the reform, the Global Business Corporation (GBC) replaces the Category 1 Global Business Company and s. 71 of the Financial Services Act 2007 has been amended, including insertion of sub-s. 71(3)(a) requiring a holder of a Global Business Licence to at all times carry out its core income generating activities in, or from, Mauritius by:
- Employing, either directly or indirectly, a reasonable number of suitably qualified persons to carry out the core activities
- Having a minimum level of expenditure, which is proportionate to its level of activities
Where to now?
An application to apply for a Global Business Licence needs to be facilitated via a suitably authorised Management Company. Furthermore the GBC should be administered by a Management Company. Maitland (Mauritius) is a licensed Management Company for these purposes.
Various grandfathering periods apply to existing GBC1s and Maitland will be contacting impacted clients to ensure that appropriate action is taken prior to the expiry of the respective periods.
Maitland (Mauritius) Limited is licensed by the Financial Services Commission, Mauritius.