🇲🇺 Annual Compliance — Mauritius

Assuming the India capital gains exemption still applies to new investments

Fix: The India–Mauritius DTAA was amended effective April 2017. Capital gains on the sale of Indian shares acquired after 1 April 2017 are now taxable in India. Mauritius remains relevant for dividend withholding tax reduction and other treaty benefits, but the capital gains route is no longer available for new investments.

Setting up a GBC without adequate substance in Mauritius

Fix: Ensure your GBC has at least two Mauritius-resident directors, a registered office with real activity, board meetings held in Mauritius, and local management and control. The FSC and treaty partners scrutinise substance. A shell structure without genuine Mauritius management risks treaty denial.

Choosing the cheapest management company without checking their regulatory track record

Fix: Your management company is your compliance lifeline. Review their FSC licence status, ask for references, and confirm they have experience with your specific structure type (fund, holding, trading). A management company failure can jeopardise your licence.

Underestimating annual compliance costs for a GBC

Fix: Budget USD 5,000–15,000 per year for management company fees, local director fees, audit, tax filing, and registered office. The GBC is not a set-and-forget structure — ongoing compliance is essential to maintain the licence and treaty access.