Choosing the Right Structure
When incorporating a company in Mauritius for international business, the two main options are the Global Business Company (GBC) and the Authorised Company (AC). Both structures are governed by the Companies Act 2001 and regulated by the Financial Services Commission (FSC), but they serve different purposes and come with distinct advantages.
This guide provides a detailed comparison to help you make an informed decision based on your business model, target markets, and fiscal objectives.
Comprehensive Comparison
| Criteria | Global Business Company (GBC) | Authorised Company (AC) |
|---|---|---|
| FSC Licence | Global Business Licence required | Registration only |
| DTA Access | Yes — 45+ treaties | No |
| Effective Tax Rate | 3% (partial exemption) | 0% on foreign income |
| Resident Directors | Minimum 2 required | Not mandatory |
| Substance Requirements | Full substance: directors, bank account, records, decisions in Mauritius | Minimal — can be managed from abroad |
| Annual FSC Fee | USD 1,950 | USD 300 |
| Incorporation Cost | USD 3,000 – 5,000 | USD 1,500 – 2,000 |
| Annual Running Cost | USD 8,000 – 15,000+ | USD 3,000 – 5,000 |
| Audit Requirement | Mandatory annual audit | Only if turnover > MUR 100M |
| Setup Time | 2 – 4 weeks | 1 – 2 weeks |
| Minimum Share Capital | No statutory minimum (USD 1 accepted) | No statutory minimum |
| Activities | International and domestic (with licence) | International only (outside Mauritius) |
When to Choose a GBC
The GBC is the right choice when:
Your business requires international credibility, access to tax treaties, or plans to invest in Africa and Asia through Mauritius.
Specific scenarios favouring a GBC:
- Investment holding — Holding shares in companies located in DTA partner countries (India, South Africa, China, France, UK, etc.) to benefit from reduced withholding taxes
- Fund management — Operating regulated investment funds that require FSC licensing
- Financial services — Insurance, pension administration, fintech, and other regulated activities
- Africa strategy — Using Mauritius as a gateway to African markets, leveraging the extensive DTA and IPA network
- Substance-driven structures — Businesses that benefit from having verifiable substance in a well-regulated jurisdiction
When to Choose an AC
The AC is the right choice when:
Your business operates internationally without needing treaty access, and you prioritize simplicity, speed, and cost efficiency.
Specific scenarios favouring an AC:
- E-commerce and digital businesses — Online platforms, SaaS companies, and digital service providers
- Consulting and freelancing — International consultants, IT professionals, and freelancers
- IP holding — Simple intellectual property holding without treaty optimization
- Trading companies — International trade without involving DTA partner countries
- Startup vehicle — Early-stage companies that may upgrade to a GBC later
Tax Comparison in Detail
GBC Tax Treatment
The GBC is subject to the standard Mauritius corporate tax rate of 15%. However, through the partial exemption regime, an 80% exemption applies to specified foreign-source income categories:
- Foreign dividends
- Interest income from foreign sources
- Royalties and licence fees from abroad
- Income from provision of services to non-residents
- Profits from foreign establishments
This results in an effective rate of 15% x 20% = 3%. Additionally, no capital gains tax applies, and dividends paid to non-residents bear no withholding tax.
AC Tax Treatment
The AC is taxed at 15% on Mauritius-source income only. Since the AC operates exclusively outside Mauritius, its foreign-sourced income is generally not subject to tax in Mauritius. This results in a 0% effective tax rate on foreign operations.
Cost Comparison
| Cost Item | GBC (USD) | AC (USD) |
|---|---|---|
| Incorporation | 3,000 – 5,000 | 1,500 – 2,000 |
| Annual FSC fee | 1,950 | 300 |
| Resident directors | 2,000 – 4,000/year | Not required |
| Annual audit | 1,500 – 3,000 | Not required* |
| Annual compliance | 3,000 – 5,000 | 1,500 – 2,500 |
| Total Year 1 | 11,450 – 18,000+ | 3,300 – 4,800 |
*Audit required only if turnover exceeds MUR 100 million.
See full details on our formation costs page.
Converting Between Structures
It is possible to convert between structures:
- AC to GBC — Apply for a Global Business Licence from the FSC. You will need to meet substance requirements (resident directors, local bank account, etc.)
- GBC to AC — Surrender the Global Business Licence and register as an AC. This may be appropriate if treaty access is no longer needed.
Decision Matrix
Budget under USD 5,000/year
Choose an AC. Lower running costs make it ideal for startups and small businesses.
Need DTA access
Choose a GBC. Only the GBC can access Mauritius's treaty network for reduced withholding taxes.
Digital/remote business
Choose an AC. No need for local substance and 0% effective tax on foreign income.
Investing in Africa/Asia
Choose a GBC. Treaty access and international credibility are essential for cross-border investments.
Not sure which structure is right for you? Our team of experts can assess your situation and recommend the optimal vehicle. Contact Sunibel for a free consultation.