by Geofferey Pagel published September, 2015
Anchor Business Solutions recently sponsored a golf day along side a lovely charity called Partners in Progress at Woodhill Country Club in Pretoria, for those of you who don’t know, Partners in Progress is a trust that was set up to seek and manage funding for investments into skills development and sustainable development.
If you would like more information you can have a look at their website which is www.partnersinprogress.co.za.
At the golf day there was a lot of interest about how to set up offshore companies so I decided to give a little more information regarding these companies in the hope that it may be useful. This is the first in a series as I will try to be as comprehensive as possible.
The first thing you will probably come across is the choice between “GBC1” and “GBC2”, GBC stands for Global Business Company and then the number stands for the type. Type one companies are resident in Mauritius for tax purposes, and can take advantage of the double taxation treaties that are in place. Type 2 GBCs are tax-exempt and used when no tax treaty benefits are sought. According to SARS “the purpose of the agreements between the two tax administrations of two countries is to enable the administrations to eliminate double taxation”.
Other than the tax benefits, an offshore company is exactly like an onshore company and can perform all the same functions and the liability is, in general, limited to the amount of capital that the shareholders invest.
The main reasons for people wanting to use offshore accounts are to save tax, to avoid unnecessary bureaucracy, reduce costs, protect assets and reduce risk and because offshore companies have a very sound reputation of maintaining privacy. All very important factors, I’m sure you’ll agree, to any businessman or woman.
The main uses of an offshore company in Mauritius are:
- International e-commerce operations
- Investment holding
- Ship management and yacht owning
- Property investment
- Consultancy and professional services
- Patent, royalty and copyright holding
I hope this clears up some of the questions regarding offshore companies in Mauritius, there are very many more rules and regulations regarding these companies and if you have any questions or would like to set up a company please feel free to give us a ring or pop us an e-mail and we would be happy to help you in any way we can.
Please take a moment to browse through our website www.anchorbs.co.za and if you require any of our services or have any queries please feel free to contact us on +27 (0) 11 704 6207 or send us an e-mail firstname.lastname@example.org.
Anchor Business Solutions. For all your fiduciary, company secretarial, administration, payroll and corporate social investment (CIS) needs.