Update on the impact of the Finance Act 2018 for Domestic entities

You would recall that as per the Finance Act 2018, foreign shareholders [non-citizens of Mauritius] of Mauritius companies which main activities are conducted outside of Mauritius, will have to apply for a Global Business Licence [GBL].

We are pleased to announce that the Financial Services Commission (“FSC”) has now published the Financial Services (Global Business Corporations) Rules 2019 to clarify on the types of resident corporations that will NOT be required to apply for a GBL:

• A resident corporation incorporated or established on or before 31 December 2018 and which did not hold a Category 1 or Category 2 Global Business Licence on or before 31 December 2018;
• A resident corporation incorporated or established after 31 December 2018 and which has, among its investors or proposed investors, development financial institutions, multilateral agencies or sovereign funds, provided that the resident corporation has been granted an approval by the FSC on such terms and conditions as FSC thinks fit;
• A trust established under the Trust Act governed by the laws of Mauritius; or
• A foundation established or registered in Mauritius under the Foundation Act.

In this respect, a domestic company incorporated on or before 31 December 2018, owned in majority by foreigners and which transact principally outside of Mauritius, will NOT be required to apply for a GBL.

For any further clarifications, please feel free to contact your relationship manager at MITCO or the business development team on bd@mitcoworld.com