Several foreign companies routing their investments to India through Mauritius have opted for arbitration in the island country to satisfy the "substance" requirement.
The challenge from the Indian perspective is that once GAAR (General Anti-Avoidance Rule) is implemented in India, merely having an arbitration clause in the constitution documents might not protect these GBC1 companies. However, having a full-time employee or an office in Mauritius, or incurring expenditure within Mauritius might provide them better protection against GAAR.
1 comment:
Hi Amar. Absolutely right - the minimum required by the Mauritian regulator may not be the same as the requirements for a particular company or structure, depending on what it is for and where it will operate.
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