Mauritius has steadily grown in stature since taking the decision to promote international business services, first through the creation of one of the world’s first export processing zones, and then in the early 90s creating an international finance centre.

15 years or so on, Mauritius is the international business centre of choice for clients and professionals seeking to take advantage of its strategic position in the heart of the Indian Ocean region. Positioned between Asia and Africa, and benefitting from a time zone that places it between Europe and the dynamic economies of India and the Far East, Mauritius has developed one of the most open and stable economies in the region.

Mauritius has readily adopted international best practice both in terms of its governing financial services law, and through its regulation of the financial services sector by the Mauritius Financial Services Commission.

For many international investors, Mauritius’ extensive range of long standing double taxation avoidance treaties make it highly attractive to clients seeking to invest into India, China and many African nations.

Mauritius offers clients efficient structuring and tax planning opportunities through two vehicles known as global business companies. A qualified global business is defined under the Financial Services Act 2007 as a corporation holding either a Category 1 or a Category 2 Global Business Licence, and essentially this distinguishes between companies conducting business in Mauritius (Category 1 Global Business Licences), and those conducting business outside Mauritius (Category 2 Global Business Licences).

This distinction is important if it is desirable to take advantage of Mauritius’ growing network of tax treaties, a key issue for the many private funds and collective investment schemes based in the island.

GBC1s may also structure themselves as protected cell companies.

The Trusts Act 2001 provides a flexible framework under which assets can be sheltered through the creation of charitable, discretionary, purpose or trading trusts. Trusts can be registered, and may carry on as qualified global businesses after obtaining a Category 1 Global Business Licence. The act also provides flexibility around determining the governing law applicable to a trust.