As mentioned in past issues of our newsletters relating to the changes emanating from the Finance Act 2018 and in line with the Financial Services Act, a corporation shall apply for a Global Business Licence (GBL) or an authorisation to operate as an Authorised Company (AC) from the Financial Services Commission (FSC) where:

• the majority of its shares / voting rights / the legal / beneficial interest are held or controlled, as the case may be, by a non-citizen of Mauritius; and
• such corporation proposes to conduct or conducts business principally outside Mauritius or with such category of persons as may be specified in the FSC Rules. ¹

Prior to the Finance Act 2018, non-citizens could set up a domestic company (i.e. companies not holding GBL1 or GBL2) to carry out business principally outside of Mauritius if they so wished.

As from 1 January 2019, foreigners wishing to carry out business predominantly outside of Mauritius need to apply for either a GBL or AC.

However as at 31 December 2018, there were already a number of domestic companies, owned in majority by foreigners, which were transacting mostly outside of Mauritius. The Finance Act 2018 is silent on the way forward for these corporations.

The FSC has now issued the Financial Services (Global Business Corporations) Rules 2019 (hereinafter referred to as the “Rules") to clarify on the types of resident corporations that shall not be required to apply for a GBL.

It is not a mandatory requirement for the following resident corporations to apply for a GBL:

• Corporations incorporated before 31 December 2018 not holding GBL1 or GBL2;
• Corporations incorporated after 31 December 2018 having investors or proposed investors that include Development Financial Institutions (DFIs), multilateral agencies and sovereign funds. An approval must be sought from the FSC through an application² to be submitted in the name of the corporation;
• Trusts established in Mauritius and governed by the laws of Mauritius;
• Foundations established in Mauritius and governed by the laws of Mauritius.

The Rules come into operation as from 1 January 2019 .

Can foreigners still set up a domestic company to do most or all of their business in Mauritius?

Yes.

Notes:

¹ According to the Rules, the category of persons include:

• A holder of GBL
• An Authorised Company
• A holder of a GBL1 or GBL issued on or before 16 October 2017