Core structural takeaways
Mauritius AC vs GBC – Key Differences Explained
GBC vs. Authorized Company Comparison Matrix
| Parameter | Global Business Company (GBC) | Authorized Company (AC) |
|---|---|---|
| Regulatory Status | Tax resident company licensed by FSC | Treated as non-tax resident under local law |
| Tax Treaties (DTAA) | Full access to 40+ double taxation treaties | No access to DTAA networks |
| Local Substance | Required (2 resident directors, local office/staff) | Minimal (managed via registered agent) |
| Audit & Filing | Audited accounts required annually | Financial summary filing only |
| Ideal Use Case | International holding, funds, regional headquarters | Private asset holding, international consulting |
Set Up a Mauritius AC Low-Cost Offshore Company
Deep Dive: Global Business Company (GBC)
The GBC is built for serious cross-border commerce, private equity, and institutional capital flows. Because it holds official tax residency status in Mauritius, it can utilize international tax treaties to optimize withholding taxes on dividends, interest, and royalties.
Key compliance requirements
- Must maintain a minimum of two resident directors in Mauritius.
- Must execute core income-generating activities (CIGA) locally.
- Subject to a headline 15% corporate tax rate, reducible to an effective 3% via the partial exemption regime.
- Mandatory submission of audited financial statements to the FSC.
Deep Dive: Authorized Company (AC)
An Authorized Company represents a lean and cost-effective structure for international entrepreneurs whose business activities and clients reside entirely outside Mauritius. It avoids heavy substance costs while still providing a secure, regulated framework.
Key compliance requirements
- Business operations must be conducted strictly outside Mauritius.
- Must retain a licensed Management Company in Mauritius to act as registered agent.
- Enjoy 0% corporate tax on all foreign-sourced income.
- No requirement for local resident directors or mandatory full-scale audits.
Tax Framework & Treaties
Mauritius features an investment-friendly tax code backed by an extensive global treaty network. There are no capital gains taxes or withholding taxes on outbound dividends paid to foreign shareholders.
- Authorized Company: Completely exempt (0%) from domestic tax on foreign earnings.
- Global Business Company: Reaps an effective 3% tax rate using the 80% partial exemption mechanism.
- Treaty Shield: GBCs shield cross-border investments against double taxation across multiple continents.
Incorporation Roadmap
Authorized Company Setup Workflow
Name Clearance
Submit and clear your corporate name via the CBRD platform.
Agent Onboarding
Engage a licensed Management Company and complete client due diligence.
License Issuance
Receive your official incorporation certificate and trade authorization.
Residency Pathways & Relocation
Founders setting up operations in Mauritius can transition their status via the **Occupation Permit (OP)** scheme, enabling investors, senior professionals, and self-employed individuals to live and work seamlessly on the island.
Making Your Final Decision
When keeping overhead low and operations external is key
- Pure international trading & consulting
- Lean structures without physical office mandates
- Zero tax on offshore revenues
When institutional credibility & tax treaties matter
- Private equity funds and structured asset holdings
- Active leveraging of 40+ double taxation treaties
- Strong corporate substance profile
Frequently asked questions
Shiraz Waheed, MCSI, ACMA, CGMA
Founder & CEO of SetupHero, Shiraz is an experienced finance and business advisory professional with a strong background in corporate structuring, accounting, and international business setup. He helps entrepreneurs and companies establish and grow their businesses across 25+ countries, providing practical guidance on company formation, compliance, banking, and ongoing corporate services. His experience combines global professional standards with hands-on expertise in helping businesses expand internationally.