Products

Intercontinental Trust Limited :Products

Overview

Products

ITL is licensed by the Mauritius Financial Services Commission to provide a plethora of financial and fiduciary services such as:

  • Structuring, formation and administration of companies, trusts, limited partnerships, foundations and funds
  • Accounting and tax services
  • FATCA and Common Reporting Standards services
  • Expatriate/relocation services

Boasting over more than 15 years of experience, ITL is well-versed in the intricacies of the financial and global business industry. It delivers an unparalleled level of service to its client base tailored to each of their individual requirements.

20

Years
Of Experience
tailored financial and fiduciary solutions to meet your unique needs

Global Business Company & Authorised Company

As of 1 January 2019, the Category 1 Global Business Company (GBC 1) was renamed the Global Business Company (GBC), and the Mauritius Financial Services Commission (FSC) ceased issuing Category 2 Global Business Licences. A new entity type, the Authorised Company (AC), was introduced. GBC1 and GBC2 companies licensed before 16 October 2017 were grandfathered until 30 June 2021.

Both the GBC and the AC offer the highest degree of confidentiality and the choice between the two types will depend on a number of factors including the proposed activities of the company and the geographical area of operation. The GBC and the AC can undertake a wide range of activities ranging from investment holding (SPVs) to trading.

The GBC is resident for tax purposes in Mauritius and can thus avail itself of the benefits of the double taxation treaties signed by Mauritius. The GBC may conduct business in Mauritius provided that the majority of its transactions is done outside of Mauritius.

On the other hand, the AC is non-resident for tax purposes and is therefore not liable to pay income tax in Mauritius. The AC is typically used where no tax treaty benefits are sought.

Trust

Mauritius offshore trusts are legal structures used for asset protection, inheritance planning and wealth management purposes. The key point of the concept is the separation of legal and beneficial ownership: i.e. the property is legally owned by the trustees but is held and administered for the benefit of the beneficiaries or for a purpose.

Essentially, property or assets, whether tangible or intangible, are transferred by the settlor of the trust to the trustees, in accordance with terms set out in a trust deed, for the trustees to hold and administer for and on behalf of specified beneficiaries or for specific purposes.

Mauritius trust law allows for the formation of life interest trusts, discretionary trusts, fixed interest trusts, purpose trusts, charitable trusts, protective trusts, asset protection trusts.

Limited Partnership

A Limited Partnership is a blend of partnership with a private limited company. It gives owners the flexibility of operating as a partnership while having a separate legal identity. A Limited Partnership requires at least one General Partner (“GP”) and one Limited Partner (“LP”).

The GP is the deciding body of the Limited Partnership and has the authority to conduct and manage the business and affairs of the Limited Partnership and exercise all its rights, powers and authority. The GP is personally liable for partnership debts. The LP’s liability is limited to the capital contributed or agreed to be contributed in the Limited Partnership and cannot execute documents on behalf of the Limited Partnership nor bind the Limited Partnership.

A Limited Partnership can also apply for a Category 1 Global Business Licence.

Advantages of the Limited Partnership entity compared to other structures:
  • Limited Partnerships are tax transparent vehicles, i.e. the partners are liable to income tax on their share of income from the Limited Partnership. The Limited Partnership, however, may opt to be liable to income tax on its taxable income.
  • The liability of the LPs is limited to the amount which they have contributed to the Limited Partnership.
  • The liability of the LPs is limited to the amount which they have contributed to the Limited Partnership.
  • The day-to-day duties and responsibilites of the Limited Partnership are dealt by the GPs with minimal intervention from the LPs.
  • The LPs rank pari-passu in respect of their return of their contributions.

Protected Cell Company

PPC

A Protected Cell Company (“PCC”) is a corporate structure in which a single legal entity is comprised of a core and several self-contained Cells that have separate assets and liabilities for the purposes of separating and protecting individual Cell assets from the threat of contamination by the failure of another asset.

PCC in Mauritius is governed by the Protected Cell Companies Act 1999 and the Protected Cell Companies (Amendment of Schedule) Regulations 2005. Main Features of a protected cell company:

  • A PCC may create one or more Cells
  • A PCC is a single legal person
  • The creation of a PCC does not create in respect of that Cell, a legal person separate from the company
  • The assets of a PCC can be either Cellular assets or non-Cellular (Core) assets
  • A PCC may in respect of any if its Cells, create and issue shares (“Cell shares”)
  • A PCC may pay a Cellular dividend in respect of Cell shares
PCCs are perceived to be of interest to a wide variety of insurance companies – life insurance companies and general insurance companies, mutual funds or other forms of collective investment scheme for the following reasons:
  • Reduced administration costs
  • Reduced individual regulatory compliance
  • Better investment security environment
  • Better returns for the investor

Foundation

The Introduction of Foundations further reinforces Mauritius as a platform for wealth management, succession and estate planning. Endowed with legal personality, a Foundation is viewed as a combination of a Trust with certain characteristics of a regular company.
Basically, a foundation is established by a Founder who donates assets with which to achieve the objects of the foundation. The objects can be both charitable and non charitable, or both simultaneously, and can be either for the benefit of persons or class of persons or to carry out a specified purpose. The Founder’s intentions for the Foundation are set out in a charter to determine how the assets are to be dealt with, for what purpose or for whose benefit, although such objectives can be less specific provided the mechanism by which such decisions are to be made is clearly defined.
Foundations are usually used for asset protection, inheritance planning, wealth management, charitable purposes and general asset holding purposes.

Fund

In Mauritius, funds are generally structured as companies, limited partnerships and protected cell companies and are authorised to operate as either an open-ended fund or a closed-end fund under the Securities Act 2005.
A fund can be self-managed or appoint a CIS manager subject to the approval of the FSC. However, most funds choose to incorporate a CIS Manager, also known as a Investment Manager, in Mauritius in order to manage the CIS. Though this is not compulsory, it can help strengthen the tax residence of the CIS in Mauritius. The Investment Manager will have to demonstrate a proven track record in fund management to be granted a licence by the FSC.

Domestic Company

A domestic company, also referred to as a local company, is defined as being a company incorporated under the laws of Mauritius and governed by the Mauritius Companies Act 2001. The domestic company is resident in Mauritius and accesses to the Double Taxation Agreements (DTAs) which Mauritius has in place. It is also taxable at a flat rate 15% on chargeable income and is not subject to withholding tax on capital gains tax, dividends or exchange control in Mauritius.

PCC in Mauritius is governed by the Protected Cell Companies Act 1999 and the Protected Cell Companies (Amendment of Schedule) Regulations 2005.
Main Features of a protected cell company:

1

Limited by shares

Company limited by shares means a company formed on the principle of having the liability of its shareholders limited by its constitution to any amount unpaid on the shares respectively held by the shareholder.

2

Limited by guarantee

Company limited by guarantee means a company formed on the principle of having the liability of its members limited by its constitution to such amount as the members may respectively undertake to contribute to the assets of the company in the event of its being wound up.

3

Limited by both shares and guarantee

Also known as Hybrid. Company limited by shares and by guarantee means a company formed on the whose constitution limits its life to a period not exceeding 50 years from the date of its incorporation. However, this period may be extended to a maximum of 150 years. Its constitution contains the specific matters as laid down in the law.

Freeport Company

A Domestic company operating with a Freeport licence can benefit from significant fiscal advantage as well as gain commercial edge for export/import business.

Advantages of operating in the Freeport area:

  • Zero corporate tax
  • No custom duties on imports of raw materials/goods
  • Reduced port handling charges for re-export
  • Integrated logistics facilities
  • Access to preferential market conventions such as SADC/COMESA, AGOA, EU/EPA
  • No minimum capital for investment
  • Free repatriation of profitsted logistics facilities
  • Banking facilities
  • For category F Freeport Operators (manufacturing), up to 5% of their annual turnover can be sold on the local market, subject to the approval of the Board of Investment, but profits will be taxable at local rates. For all other types of Freeport Operators, up to 50% of the value of goods exported or 50% of their annual turnover of services can be sold / provided on the local market, subject to the approval of the Board of Investment, but profits will be taxable at local rates
  • Access to preferential market conventions such as SADC/COMESA, AGOA, EU-EPA

Captive Insurance

A captive insurance company is essentially a corporation whose primary purpose is to insure the risks of its owners and its affiliated companies. It is essentially a form of self-insurance where the insurer is owned by the insured.

A captive insurance company is a way for many companies and groups to take financial control and manage risks by endorsing their own insurance rather than paying premiums to third-party insurers.

Benefits of setting up a captive:

  • Reduce costs
  • Access to reinsurance market
  • Improve cash flow
  • Increased risk management control
  • Tailor made policies
  • Reduce risk of costly lawsuit
  • Diversification

The Captive Insurance Act 2015, operational as from 29th January 2016, provides for the licensing of pure captive insurance businesses and the legal framework for their operation. The Act currently regulates only pure captive insurance while other types of captive insurance businesses will continue to be regulated under the Insurance Act 2005. Captive insurers will be regulated by the Financial Services Commission. They can apply to be licensed as Global Business Companies Category 1 and to be structured as a Protected Cell Companies. The licensed captive insurer being a resident of Mauritius, will also benefit from the Double Taxation Agreements (DTAs) and the Investment Protection and Promotion Agreements (IPPAs) enjoyed by Mauritius internationally. Intercontinental Trust Ltd offers a range of captive formation, administrative and accounting services in Mauritius as well as captive insurance agent services.

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