For the purpose of increasing substance, a Mauritian resident may be allowed to hold shares in a GBC2 if it can demonstrate that the overall group structure has strong economic impact in Mauritius. The FSC Mauritius will consider, whether the proposal will generate revenue in Mauritius; whether the proposal is likely to create employment in Mauritius; or the impact of the proposal on the development of the country.
The Guide to Global Business (Chapter 3) distinguishes the salient features of Category 2 Global Business Companies (GBC2s), indicating inter alia that ‘Mauritian residents may not hold beneficial interest’ in a GBC2.
The Guide to Global Business (Chapter 3) distinguishes the salient features of Category 2 Global Business Companies (GBC2s), indicating inter alia that ‘Mauritian residents may not hold beneficial interest’ in a GBC2.
By its very nature, GBC2s have their central management and control located outside Mauritius, are not liable to local tax, and therefore shall not be beneficially owned by Mauritian residents. The Financial Services Commission, Mauritius (‘FSC Mauritius’) has been adopting a look-through approach to global business to encourage more economic substance, and encouraging GBC2s to be used as special purpose vehicles in group structure. Therefore, to the extent that GBC2s demonstrate that management, control and ownership are maintained outside Mauritius, Mauritian participation will be considered in a GBC2.
No comments:
Post a Comment