The Global Business Category 2 Companies (GBL 2) provides greater flexibility and is a suitable vehicle for holding and managing private assets. It is similar to the IBC’s available in other jurisdictions. It is not allowed to raise capital from the public or to conduct financial services activities. The GBL 2 is not resident in Mauritius for tax purposes and is thus exempt from all taxes. It does not benefit from DTA relief under tax treaties but still benefits from the fact that there is no withholding tax on outward remittances.

Potential Uses

GBL 2 companies are the perfect holding companies often used as Special Purpose Vehicles internationally. They are user friendly and easy to incorporate.

They may also be used as trading companies for import and export of goods and can act as re-invoicing vehicles to facilitate transfer pricing.

In view of their flexible regime, GBL 2 companies can be used for treasury management and hedging in various currencies and can also hold assets and act as investment companies for high net worth individuals.

GBL 2 companies can be used in combination with offshore trusts to provide for flexibility and confidentiality of ultimate beneficial owners.

They can act as holding companies so that they will not be liable to any tax in Mauritius but can still have their board meetings held overseas.

GBL 2 companies are well suited for trading purposes, international contracts or holding of assets within the context of E.U directives on taxation of savings.

Suitable companies from other jurisdictions may be continued in Mauritius as GBL 2 companies.

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