Company Set up

Hi,

In your post you don't mention your nationality, or more importantly your tax residency.  If you remain an Australian resident while working overseas, you must declare your worldwide income in your Australian tax return.  This could lead to being taxed both here in Mauritius and liable to tax in Australia too as there is no double tax agreement at present.
You should seek advice from an Australian tax specialist before contemplating the move.

Hi Ferby,

Thanks for the reply.

I'm an Australian citizen and currently an Australian tax resident. I'm in the motions of going through this with a tax specialist.

I'd be doing everything I could to increase the likelihood that I was not considered an Australian tax resident such as living in Mauritius for the majority of the year, possibly purchasing a home, getting permanent residency etc. Which is why I think the set up of the company in Mauritius is fairly crucial - it could only help the situation if I was working for a company established in Mauritius I would have thought, even if I did own it.

Hi LK19,

There are two schemes that enable non citizens to buy homes in Mauritius the IRS and RES schemes, alternatively if you fit certain criteria you may acquire an apartment in a building comprising ground plus 2.

To gain permanent residence you must of had an occupation/residence permit for 3 years, there are several ways of obtaining these, then you can apply for permanent residence (10 years renewable).

GBL 1 and 2 companies are offshore companies which are of main interest to international investors, and may not be what you are looking for or need.  Without a lot more details from yourself it would be remiss of me to advise which if any would suit your purpose.

Regarding occupational permits etc, I would suggest you look on the BOI website investmauritius.com/work-live/op.aspx , it is very good.

Rather us going back and forth on this medium, may I suggest you send me a private message with your contact details etc and I will try and help where I can.

Cheers

@ ferby > The forum is a free space that has been made available for the exchange of information between members.
Therefore, i encourage you to share information on the forum itself instead of communicating in private please.

Thanks

Priscilla 

Hi Priscilla,

I am more than happy to write on a public forum.  However, to give any realistic constructive advice to LK19.  Personal details etc would need to be divulged, which I am sure LK19, would not like to share publicly.
As you may understand, everyone's situation and requirements are different and I have found in my experience that a generic answer to a question will just bring up more questions leading to misunderstandings and poor advice.

Cheers

Hello,

You will have to open a Mauritian domestic company and obtain an occupation permit. Of course you can have a GBC1 or GBC2 but be careful, it costs so much (registration and yearly fee), that i always suggest to go for a local domestic company first and afterwards if you believe your turnover allows you to go for GBC1 then you go for it. The main advantage of GBC1 is that it is taxable at 3% only. In any case if you want to go for a GBC1 you will have to pass through a local management firm (who is licensed to carry out those activities) and they also provide for local resident directors, so there is solution regarding the local directors issue. In fact they insist you have them as director so that they can help you manage your account and at the same time ensuring themselves that you are not doing anything illegal.

keseena wrote:

Hello,

In fact they insist you have them as director so that they can help you manage your account and at the same time ensuring themselves that you are not doing anything illegal.

Is it rather not a law requirement than mere 'insistence' of Management company !?

No management company can help me better manage 'my account' than myself :-)  so this is definitely not an argument to present to any businessman / investor.

If you have a strong KYC no, otherwise many management do, so they mention in their Agreement as well.

I thought it was more a legal requirement under Mauritian offshore jurisdiction.

If we are talking in theory no, but in any case there is a need to have at least two resident directors, However in practice, due to the rise in Money Laundering cases, Management companies are more strict and vigilant (as per experience).

There is a need to have at least 2 resident directors. is this from Law?  Which Law ?

The purpose to have a GBC1 is to benefit from 3% taxation which you already know. On this basis as investor you would want to have a tax residency certificate which helps you benefit from Double Taxation Agreement (DTA). In order to obtain a Tax Resident certificate, you have to have 2 resident directors. That you will find on any management company's website as well. Now I am no expert in GBC1/2 but through previous experiences, it's a point which always pop up:)

Will the  opening of a GNC1/2 business allow me to qualify for a Mauritian passport as I am from South Africa?

Flipb4 wrote:

Will the  opening of a GNC1/2 business allow me to qualify for a Mauritian passport as I am from South Africa?

No business, on its own, can qualify you for a Mauritian passport.  Naturalisation is granted only on specific criteria (and the discretion of the Prime Minister, himself).

keseena wrote:

The purpose to have a GBC1 is to benefit from 3% taxation which you already know. On this basis as investor you would want to have a tax residency certificate which helps you benefit from Double Taxation Agreement (DTA). In order to obtain a Tax Resident certificate, you have to have 2 resident directors. That you will find on any management company's website as well. Now I am no expert in GBC1/2 but through previous experiences, it's a point which always pop up:)

I presume the 'you' you are referring to is 'the business'.  The people do not get tax residency certificate, the business does.  For people to get tax residency, they should be living in Mauritius for at least 183 days, right?

When referring to the 3% tax, is it the tax which gets 80% credits and then come to an effective 0% tax on profits?

Yes "you" will want to have a tax residency for the "Company"-GBC1.  It is 15 % tax with a 80% rebate which means maximum effective tax of 3% while for GBC2, the company is tax exempt .

Yes you are tax resident after 183 days, this is why as expats on professional occupation permit, their income was 15% taxable in the first six months and after 6 months, they benefit from the income threshold, we benefit as Mauritian. I believe it has not change.

Hi LK

Interesting that you are moving to Mauritius from Aus.  I am currently visiting Melbourne  weighing up the odd between Mauritius and Aus.  I am from South Africa and for the past three years have been working towards moving to Mauritius.
I am pleased to say that after my visit to Aus, I think Mauritius will still be the better option.  I have the name of two companies based in Mauritius that assist with relocation and setting up a company.  If you would like to inbox my on [email protected], I will connect you to them.
Jenny

Hi Jennifer

Could you pls forward the details of the 2 companies to me too.

For your information, we also provide such services.
(it would be foolish to stay silent and see others being recommended ...)  :-)

1) Joanne Kirk - Joanne assists with repatriation and her husband assists with business matters
[email protected]

Boris Pelegrin
Managing Director
BTG Management Services (Mauritius) Limited
1st Floor, Bld. B, Nautica Commercial Centre
Royal Road, Black River, Mauritius
Tel:  +230 483 1212
Fax: +230 483 1313
E-mail: [email protected]
Cell: +230 5256 0930
Skype: BTGMRU
Web: - btg-mauritius.com