Mauritius GBL1 vs Seychelles CSL Company, which is best?

[Fliba]

Have been looking into this for some time, we are planning to offer some financial services for our existing clients (investments) the project is not public, now I was wondering, I read that a Mauritius GBL1 company is the best and widely most used company type when it comes to financial corporations, at the other hand, I was reading about the Seychelles CSL company which is much cheaper and faster to incorporate, any ideas what the best is?


Please answer with up's and down's not just that Mauritius or Seychelles is the best, thank you.

 

[MiltonStone]

You may be interested in reading about the Seychelles Special License Companies (“CSLs”) as the‌ below,

The Seychelles Special License Company – (or "CSL" as it is better known) -‍ is a relatively new product which came about by virtue of the passing of the⁠ Seychelles Companies (Special Licenses) Act in 2003.

Having seen the success enjoyed by the Mauritius⁤ International Financial Services sector (which utilized its “DTA” - its Double Tax Avoidance Treaty -⁣ with India as the basis for creating a lucrative company product) Seychelles, with a number⁢ of favorable DTAS (including with behemoths China and Indonesia) saw the potential for creation of︀ a similar product hence the passing into law of the Seychelles Companies (Special Licenses) Act.︁ (A copy of the Act can be viewed by visiting the Downloads section of our︂ website at Our Services).

Of added advantage is the CSL’s ability to sidestep blacklisting by︃ onshore jurisdictions by virtue of its classification as a low-tax (as opposed to zero-tax like︄ the IBC) Domestic Company. This helps facilitate easier conduct of its business abroad, attracting less︅ suspicion and unwanted attention.

The CSL also has significant appeal to multi-national players as a︆ tax-efficient vehicle for use in a number of areas including as an Intellectual Property Holding/Licensing︇ company, as an intermediary holding company and/or as a services company (eg for provision of︈ management services, consultancy services and more). You will want to look into the CCLOGIC who︉ is offering a very competive plan for the formation of a Seychelles Special License company!︊

 

[MiltonStone]

I would also like to draw your attention to the outlined benefits below:

The Main‌ Benefits of the CSL include:

• Substantial Tax Savings on Withholding Tax (“WHT”) when repatriating‍ dividends etc to clients investing in countries where Seychelles has favorable DTA treaties (Seychelles has⁠ extremely favorable treaties with China, Indonesia, South Africa, UAE and Belgium, amongst others, and soon⁤ will have a more favorable treaty with India than Mauritius once that treaty runs its⁣ term)

• Limited Physical Presence is required in Seychelles. The Company simply requires a Registered⁢ Office, a Local Secretary and two Local Directors (which can be Nominees)

• Ownership Privacy︀ is Guaranteed – Details of beneficial owners are not publicly available and Nominee Directors can︁ be used

• Nil Business Tax in real terms – Although the base rate of︂ taxation is 1.5% a 100% credit is available for any taxes paid abroad which in︃ the vast majority of cases results in a nil rate of taxation in Seychelles (and︄ no WHT is applied when funds depart the Seychelles/CSL entity)

• Residency rights are available︅ in Seychelles making it an extremely effective option for clients looking to shift their personal︆ or Company’s place of tax residence

• No Personal Tax in Seychelles meaning dividends paid︇ to owners living in Seychelles can be received tax free

• Low Cost: For clients︈ looking to shift residence the cost is around a third of what it costs to︉ set up tax residence in Dubai (and about a tenth of what it costs to︊ shift to say Monaco).

Categories of Business that may be established as a CSL

Seychelles CSLs can carry on business in a number of specified categories including as:

• An︋ international holding company

• A headquarters company

• A franchise company

• A marketing company︌

• A human resource services company

• A company holding intellectual property

• A Company︍ in the business of providing investment management and advice

• An Offshore Bank

• An︎ Offshore insurance/reinsurance company

• An investment company

• An International Trade Business (eg re-export, international️ trading in goods and services etc)

Directors & Secretaries

• 2 Directors are required as‌ a minimum (NOTE: Corporate Directors are not permitted - only Natural persons can act as‍ a Director of a Seychelles CSL)

• Directors need not be Seychelles resident (NOTE: It⁠ would be advisable for all or at least a majority of Directors to be Seychelles⁤ resident where a CSL is being established to gain access to a Seychelles Double Taxation⁣ Avoidance Treaty)

• Director’s meetings can be held anywhere

• Director’s names are recorded on⁢ a Public Register

• A CSL must have a Seychelles resident Licensed Company Secretary and︀ a Registered Office in Seychelles

source: Seychelles CSL Company | offshore-company-formation

It has massive benefits︁ compared to the Mauritius GBL1 company.... consider it.

 

[bizman]

I seeking some information on the Mauritius GBL1 company, so that we have something to‌ compare in this thread. Thank you surender for sharing your information..... 🙂

 

[Fliba]

Have already been looking at the informaton provided for the Seychelles CSL but still, I‌ need to know what is better, the Mauritius GBL1 or the Seychelles CSL not sure‍ at all about it.

 

[clemens]

Maybe you should check for yourself, here is a little information about the Mauritius GBL1,‌ I can already see why the Seychelles CSL is a better choice then the Mauritius,‍ can you?

Di you found the major difference? a Seychelles CSL is only liable for 1,5% where a︁ Mauritius GBL1 company has 15% - the 1,5% can be elimated by having a intermidary︂ Cyprus company!!!

 

[clemens]

Find it very interesting, a Mauritius GBL1 companu will costs you in average US$8.400 /‌ renewal US$ 6650.00 compared to a Seyhelles CSL EUR 2.500 - 3.000 / renewal EUR‍ 1.500 it is again a indicator for the Syechelles CSL to be the best!

 

[Fliba]

You have a point in the fee EUR 2.500 = US$3.450.00 thats half the price,‌ however, I'm not a huge fan of safing a few dollars here and there, as‍ it has been mentioned many times here on the forum, it is my business and⁠ it need to be hold by a management which is reliable and also will exist⁤ in 2 and 3 years.

I begin to get a picture of what the best⁣ might be for me, just keep the information stream coming. In regards to the 15%⁢ tax a Mauritius GBL1 company has to pay, does Mauritius don't have any double tax︀ treaties with European countries or the US? if so it should eliminate the tax somehow.︁

 

[flofi]

Can someone tell me how a Mauritius GBL1 vs Seychelles CSL differs from a Offshore‌ IBC? Don't have a clue at all!

 

[Fliba]

sure thing flofi 😀 For financial services and investments companies you will normally need a license,‌ the major benefits are as the below:

Category 1 Global Business Licence Company (GBL 1)‍

A GBL 1 is a company incorporated under the laws of Mauritius that holds a⁠ valid licence and carries out the activities approved by the regulatory authority, the Financial Services⁤ Commission (FSC). It is regulated by the Companies Act

2001 and the Financial Services Act⁣ 2007 and satisfies the following conditions:

- Carries business from within Mauritius with persons all⁢ of whom are resident outside Mauritius

- Transacts in a currency other than the Mauritian︀ rupee

- Is locally incorporated or registered as a branch of a foreign company Characteristics︁

This vehicle is widely used by tax practitioners and businessmen for corporate structuring. GBL 1︂ companies are resident in Mauritius for tax purposes and thus benefit from the country’s tax︃ treaty network.

- It is taxed up to a maximum rate of 3%. In fact︄ a GBL1 company is liable to tax at the rate of 15% on chargeable

income, but the company is entitled to credit for actual foreign tax suffered or if lower,︅ deemed tax of 80% of Mauritius tax

payable, which reduces the effective tax rate to︆ a maximum of 3%. <- Not sure why jPay says 15%, what is the true︇ figure we are looking at?

- No capital gains tax

- No withholding tax on︈ outward remittances

- No thin capitalisation rules

- No inheritance tax

- No minimum stated︉ capital

- No exchange control requirements

- Name of beneficial owners known only by the︊ management company, the bankers and the FSC who have all a duty of confidentiality

 

[JohnLocke]

The fact that it is not allowed to conduct business in the Seychelles nor Mauritius‌ which has character to be financial services or investments makes both company types very attractive‍ to certain business industries.

 

[Safa]

But some is allowed to do private investments right? Means if I want to do‌ Forex Trading or other investements with the company just for my own purpose it is‍ okay as far as I know.

 

[JohnLocke]

True, private Forex Trading for own purpose or Investments is not a problem with a‌ Seychelles IBC at all.

 

[MiltonStone]

Now we have been comparing the Mauritius GBL1 and Seychelles CSL (The Special License Company),‌ so what I was looking for is how long does it take to incorporate a‍ Mauritius GBL1 Company and how long does it take to incorporate a Seychelles CSL company?⁠

 

[MiltonStone]

I got informed that a Mutual Fund is the solution in the Seychelles for Forex‌ Trading, e-currencies and other financial business as long with the below information:

So that means I will have︋ to proof that I have USD 1 million if I was go to register a︌ Mutual Fund in the Seychelles for Forex trading / license, does anyone know how the︍ regulations are in Mauritius, Panama, Belize, Curacao, Singapor etc ?

 

[EliasIT]

Is a Mauritius GBL1 or GBL3 still valid?

 

[eddison]

Hi Fliba,

Ok you are⁠ way ahead of me here! could you explain what you mean in the above sentence⁤ please? How is Mauritius tax only 3%?

thank you

 

[Fliba]

You may consult a tax or legal advisor or the CSP who will help you‌ in Mauritius to setup a GBL1 or GBL 3! I must tell you that things‍ have changed since this thread have been started, still you can find benefits a GBL1⁠ / 3 offers.