ECS Global Ltd Company Brochure

Transcription

1 ECS Global Ltd Company Brochure 1 Introduction 3 Why the Mauritian jurisdiction 7 Taxation 9 Work and live in Mauritius 11 Our solutions 16 Mauritius meets Europe 17 Mauritius meets Africa 18 Mauritius meets Asia 19 Contact Us

2 ABOUT US YAN BECHARD CHIEF EXECUTIVE OFFICER Mr. M.J.A.Yan Bechard is the Executive Director of ECS Global ltd. During his 25+ years career, he has been involved in all aspects of company formations, management, finance, administration and tax both on the local and international markets. He is an associate of the Institute of Chartered Secretaries and Administrators (ICSA) UK and was a former President of the ICSA (Mauritius) branch. He is also a member of the Mauritius Institute of Directors (MIOD). Our history ECS Global ltd is a fully licensed Trust and Company Service Provider in the International Financial Services Sector headquartered in Mauritius. Our company, which forms part of a group operating since 1989, obtained an offshore management license from the Financial Services Commission in 2013 to take full advantage of the provision of services to support the new and innovative offshore investment platforms and global business processes that have come to dominate the new way of doing business in the world. Our experience The group was established in 1989 with ECS Global ltd being the global business arm and is more than well equipped to advise our clients on matters regarding tax planning, global wealth structuring, asset protection and cross-border investments. Our mission To provide our clients with the highest level of service, delivered with commitment, professionalism and dynamism. To build solid and long-term partnership with our clients based on mutual respect and honest. Our vision To become the most trusted independent fiduciary service provider operating in the Mauritian financial sector. 1

3 Nivesh Ramdhony Head of Operations ECS Global ltd(mauritius) Mr. Nivesh Ramdhony is the Head of Operations at ECS Global Ltd. He has held various senior positions in the banking and global business sectors with Banque Des Mascareignes Ltd., KPMG and, Deutsche Bank where he worked in their offices in Mauritius, Guernsey, Jersey and Singapore. Nivesh has been involved in the management and structuring of global business companies, international SPVs and in providing banking, estate and wealth planning solutions to HNWIs around the world. Nivesh holds an Executive MBA and is a Fellow of the Institute of Chartered Secretaries and Administrators of the United Kingdom. He completed the ManageMentor Programme from Harvard Business School Publishing of Harvard Business School, U.S.A. He is a member of the Mauritius Institute of Directors (M.MIoD), the Society of Trust & Estate Practitioners (TEP) and the Chartered Management Institute (ACMI) of the United Kingdom. Clément Rey Director ECS Global ltd(mauritius) Mr. Clement Rey is the director of ECS Global. He holds a Bachelor s and Master s degree in Business Law from the UK. He was the former Head of Corporate Affairs within the Ciel Group and is a member of MIOD. Ashwin Motee Business Development Executive ECS Global ltd(mauritius) Mr. Ashwin Motee is the business development executive of ECS Global ltd. He has served in a number of industries including banking, engineering and offshore management. He has a proven background in advising clients for structures including SPVs in multiple jurisdcitions. He is a holder of a dual degree in engineering and is currently completing his MBA. Contents 1 Introduction 3 Why the Mauritian jurisdiction 7 Taxation 9 Work and live in Mauritius 11 Our solutions 16 Mauritius meets Europe 17 Mauritius meets Africa 18 Mauritius meets Asia 19 Contact Us Darshini Callichurn Head of compliance and MLRO ECS Global ltd(mauritius) Ms. Darsihini Callichurn is the head of compliance and MLRO of ECS Global ltd. She has a broad knowledge in legal aspects of company formation and administration in Mauritius. She is a holder of an LLB and is currently completing her LLM. She is also a member of ACAMS. Madhoori Runglollsing Client services executive ECS Global ltd(mauritius) Ms. Madhoori Runglollsing is the client services executive at ECS Global ltd. She has served the global business services industry for over 7 years in one of the biggest offshore management company in Europe. She is a holder of a bachelor degree in accounting and finance and is currently pursuing her studies in ICSA. The group was established in 1989 with ECS Global ltd being the global business arm and is more than well equipped to advise our clients on matters regarding tax planning, global wealth structuring, asset protection and cross-border investments. 2

4 About Mauritius Mauritius is situated in the Indian Ocean approximately 800 km off the East Coast of Madagascar. The island, which is of volcanic origin, covers an area of 1,800 sq. km. Mauritius has historically been known as the Star & Key of the Indian Ocean given its strategic location as an important trading hub between the East and West. The island s position in the region has been further consolidated with the development of the international financial services sector which is increasingly being favored by professionals and investors from a round the world. 3

5 Safe environment Mauritius international business sector is growing fast as Mauritius is increasingly recognized as a safe and well-regulated jurisdiction from which to conduct global business. It has all the ingredients necessary for that political stability, strategic location, excellent infrastructure and an efficient communication network. Mauritius was also one among the first jurisdictions to be included in the OECD White List. Mauritius offers an open and financially sound economy and the success of its economy is largely a result of its political and socio-economic stability. The country s adoption of international best business practices is acknowledged by international organizations such as the organisation for Economic Cooperation and Development (OECD), the Financial Action Task Force (FATF) and the World Bank (WB). Robust legal system The legal system of the Mauritius is well established and has its composite roots in the French Napoleon Code (civil law) and the British legal framework (common law). The government of Mauritius has been very clever and has emulated the legislation of a number of countries thereby having and implementing the best that is available. International protection The Investment Promotion and Protection Agreements provide for free repatriation of investment capital and returns and guarantee against expropriation. They also provide for a most favoured nation rule with respect to treatment of investors, and compensation for losses in case of war and armed conflict. They also include arrangements for the settlement of disputes between investors and the contracting states. At that date, Mauritius have concluded agreements with 27 countries with agreements with another 15 countries awaiting ratification. 4

6 Strategically placed Mauritius is strategically placed as an International Financial Centre situated in the Indian Ocean region about 1,200 km off the African coast, to the east of the island of Madagascar. Mauritius is located in a convenient time zone allowing for the conduct of business in the Far East in the morning, Europe during the early afternoon and the USA, later in the day. It remains one of the fastest growing international financial centre with a well regulated legislative framework, a pool of highly skilled professional, an international standard banking sector and ever growing network of double taxation treaties in place. A jurisdiction of substance, not a tax haven It is undeniable that jurisdictions such as the BVI and the Cayman Islands have more companies than people and the concept of substance is inexistent in constrast to Mauritius which has always been promoted as a jurisdiction of substance. To sustain its development as an International Financial Centre of Substance, Mauritius has already embarked on a strategy of enhancing its range of financial products and moving towards the provision of higher end and value added services. There are approximately 25,000 global business incorporated in Mauritius and 900 global funds registered here. It is relevant to make the comparison of the 25,000 global business companies registered in Mauritius to the 375,000 in the Cayman Islands, and more than 1 million in the British Virgin Islands. The Ex-Finance minister in Mauritius Xavier-Luc Duval rightly said "If we had wanted to be looking at quantity rather than quality, today we could easily have been at 250,000. But we decided to do otherwise" he also emphasises the government's policy push for companies registered on the island to have 'substance' to bring more to the economy of the island and to open substantial offices there and employ Mauritians. A concrete example of substance requirements is the condition of management and control in Mauritius. Resident companies availing tax benefits, GBC 1s must have two local Directors, a local Auditor, a principal bank account in Mauritius and board meetings held and chaired in Mauritius. Addtionally as from January 2015, the Financial Services Commission ( FSC ) recently amended the Guide to Global Business requiring a Category 1 Global Business Company (GBC 1) to have presence which may be reasonably expected from a corporation managed and controlled in Mauritius. In addition to existing requirements, further criteria to be considered by the FSC include: having office premises, holding assets, employing staff and being listed in Mauritius. Mauritius has earned a reputation of being a jurisdiction of substance. Mauritius offers an ideal platform for investing into Africa and Asia. It provides a wealth of Double Taxation Treaties, which can be beneficial in cross border company structures. 5

7 International benchmarks Mauritius is recognised by international organisations for continuous improvement in its doing business regime. The country is today acclaimed as a leading investment destination ranking 19 in the world and first in in Africa for ease of doing business as well as ranking first in Africa for Mo Ibrahim Index of African Governance, Global Enabling Trade Index, Global Competitiveness Index , Global Enabling Trade Report 2014 World Economic Forum and Forbes Survey of Best Countries for Business This has only been possible with Mauritius being member of numerous organisations involved in regulating financial services products (insurance, securities and others), combatting financial crime, and above all developed-developing economies cooperation agreements. Competitive investment location One of the unique elements that make Mauritius a competitive investment location is the preferential market access to the EU (under the Cotonou Agreement), US (under the Africa Growth and Opportunity Act- AGOA) and Africa (under the Common Market for Eastern and Southern Africa - COMESA and under the Southern African Development Community - SADC). Life in Mauritius The population of Mauritius is diverse, tolerant, and peaceful, and now stands at about 1.3 million. Ethnic groups make up the population today as follows: Indian (Hindu majority) 68%, Creole (African descent) 25%, Chinese 3%, Franco (French descent) 2%, with the remaining 2% made up of a mix of expatriates. French, Creole, and English are widely spoken by the people of Mauritius, with English being the official business language. The climate in Mauritius is a tropical luxury. It is hot and humid from November to March and warm and mild the rest of the year. Mauritius is susceptible to cyclones from December to March, but construction standards are sound and early warning services are efficient. The island is covered in beautiful trees and flowers, and anywhere bougainvilleas flourish is a pleasant place to be. Retired life mostly revolves around golf and boating, though ocean swimming, snorkelling, scuba diving, and kite surfing are also popular. Mauritius offers many quality golf courses, and the ocean provides a haven for boating, sailing, and fishing. Domestic workers are inexpensive and generally reliable. The island is well-connected by flights to Africa, Europe, and Asia, making travel convenient. As a small island, social life can be somewhat limited, but Mauritius serves well as a base from which to travel. Infrastructure in general is well-developed, with an adequate network of paved roads and reliable water and power supply systems. The island also enjoys the benefits of competent medical and dental facilities, with qualified practitioners from India, France, China, and South Africa. the new way of doing business in the world. In an effort to diversify the economy and to attract foreign capital, the Mauritian government has facilitated a program that grants permanent residence to anyone who purchases residential property for a minimum of US $500,000 in several specifically designated locations under their IRS (Integrated Resort Scheme) and RES (Real Estate Scheme) schemes. Upon purchase of property under these schemes, which is on a free-hold, outright ownership basis, permanent residence is automatically granted without any requirement to stay in Mauritius for a minimum period of time. Mauritius was made first, and then heaven, and that heaven was copied after Mauritius Quoted from Mark Twain 6

8 Tax planning for the future The taxation of income of both companies and individuals is governed by the Income Tax Act 1995 which is substantially based on UK tax law. Mauritius has a global system of taxation as opposed to a schedular system. Under this system, income from all sources is added up and the appropriate tax rate or rates a reapplied after reckoning all allowable deductions and exemptions. Taxation of global business companies The rate of corporate income tax in Mauritius is 15% on chargeable income. However, varying rates apply to Global Business Companies (i.e. Offshore Companies ) from zero or 3%. Mauritius GBC 1 Companies are resident in Mauritius and consequently subject to tax. However, they benefit from both tax credits and a longstop tax rate of 3%. Correctly structured and managed Mauritius GBC 1 companies may access Mauritius' network of 43 tax treaties. Neither capital gains nor withholding taxes are levied. A GBL1 is used generally when income from overseas is mainly in the form of dividends, interest, royalties and capital gains and when Double Taxation Agreements needs to be accessed for tax planning benefits. A GBL1 is also used for engaging in financial services business such as insurance, investment management,investment advisory, fund management and collective investment schemes. A GBL2 is the ideal vehicle for holding and managing private assets. It is also commonly use for trading and non-financial consultancy business. It is a non-resident company and therefore fully tax exempt. Such a company cannot access to the Double Taxation Agreements in force in Mauritius. 7

9 Planning ahead International tax planning is a lawful, legitimate activity that seeks to minimise the risks of international double taxation and recognise the territorial limits or boundaries of a given national tax jurisdiction. Taxation of trusts Trusts are usually liable to income tax on its chargeable income at the rate of 15% per annum and are required to submit annual tax returns not later than 31st March of each year. Trusts holding a category 1 global business licence, shall be subject to an effective income tax rate pf 0-3%. Such trusts shall have access to tax treaty network of Mauritius. A trust of which the settlor and beneficiaries are non-residents in any income tax year or hold either Category 1 or Category 2 Global business licence can annually elect to be non-resident in Mauritius for tax purposes, hence not liable to income tax in Mauritius. Any distribution from a trust is deemed to be dividend, hence not taxable in the hands of the beneficiaries in Mauritius. Tax residency conditions The Income Tax Act 1995 defines a resident company as one which is incorporated in Mauritius, or if it has its central management and control in Mauritius. The place where central management and control is located would be determined by such factors as where the board meetings are held and hence where decisions are taken and orders given. Residence in respect of an income year means an individual who has his domicile in Mauritius unless his permanent place of abode is outside Mauritius; or been present in Mauritius in that income year for a period of, or an aggregate period of 183 days or more; or been present in Mauritius in that income year and the 2 preceding income years, for an aggregate period of 270 days or more. 8

10 Relocation services: Occupation and residency permit In its pursuit to become a high-income economy, Mauritius is actively encouraging foreign talents, know-how and investment into the country. Whether you are an investor, a professional, a self-employed or a retired non-citizen, there are a number of compelling reasons to consider Mauritius as your location for doing business and living. Foreign nationals wishing to work, live or retire in Mauritius may explore various avenues either through the Occupation Permit, the Residence Permit or the Permanent Residence Permit. They are also eligible to acquire property in Mauritius under prescribed conditions. The Permanent Residence Permit allows a non-citizen to work and live in Mauritius for a period of ten years. Eligibility criteria are as follows: 1. An investor who invests at least 500,000 US dollars in a qualifying business activity. 2. A self-employed who holds an Occupation Permit and where the annual income exceeded MUR 3 million for three consecutive years. 3. A professional having a valid Occupation or a Work Permit and whose monthly basic salary exceeded MUR 150,000 for three consecutive years immediately preceding the application A retired non-citizen who has held a Residence Permit for three years and has transferred 40,000 US dollars annually to his account in a local bank during each of these three years.

11 Asset protection trust An asset protection trust is essentially a discretionary trust where the assets are placed to shelter them from potential future claims. These have increased in use in recent years with the rapid increase, primarily in the USA, of litigation against professional firms and the medical profession. A trust is created when assets are transferred to a trustee. The trustee becomes the legal owner and is responsible for managing the assets and distributing them to the beneficiaries of the offshore trust (which may include the person or corporation which transferred the assets to the trustees) in accordance with the terms of the trust deed. The terms on which the Trustees administer the trust assets are detailed in a trust deed and trust legislation to govern trusts has been enacted in many common law jurisdictions. Main Features This straight forward trust is set up to provide protection from any type of future claim, including creditors claims, claims in a divorce settlement and judgments. In order for this trust to provide the maximum level of protection, it needs to be an irrevocable discretionary trust. This means that the power to appoint any part of the trust fund will remain at the full discretion of the trustee. Depending on the proper law under which the trust is set up, the assets transferred into trust will be sheltered from any potential claim after a set number of years. Who is it for? Those who are at the front line and vulnerable to litigation claims and those who are involved in various business deals and who wish to protect assets from the claims of creditors. Trustees and their duties Trustees have a general duty in the exercise of their functions to observe the utmost good faith and to act with due diligence with care and prudence and to the best of their ability and skill. Trustees must execute and administer the trust, and exercise their functions in accordance with the Act and the terms of the trust and only in the interest of the beneficiaries or in fulfillment of the purpose of the trust. Settlor Any person who has the legal capacity to contract may create a trust. The settlor may be a natural person or a body corporate. A settlor may also be a trustee, a beneficiary, a protector or an enforcer, but cannot be the sole beneficiary of a trust of which he is a settlor. The settlor can guide the trustee as to how to invest and distribute the assets by way of a letter of wishes. Beneficiaries Any person, whether natural or corporate, entitled to benefit under a trust, or in whose favour a power to distribute trust property may be exercised may be a beneficiary. A beneficiary must be identifiable by name or ascertainable. 10

12 Trading companies This company is designed to be used mainly by people engaged in import and export trading activities. Main Features The company is exempted from taxation, and hence adequate for repatriation of funds back to the beneficial owners country of residence. The net effect is taxation in only one state that is domicile of residence. It is a limited liability company, which has as its name says limited liability. Ownership is confidential. Back to back LC s using local trading commercial bank provides leverage for capital contribution by promoters. With consideration to transfer pricing rules, this company can effectively be used for transfer pricing between the importing state and the exporting state. Who is it for? Traders Businessman importing and exporting from a country, other than his resident country. Businessman looking for asset protection against potential liabilities Benefits Trade financed by LC, that is no capital contribution Tax minimisation Avoidance of double taxation Confidential vehicle 11

13 Holding companies A holding company is a company that owns other companies' outstanding stock. The term usually refers to a company that does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group. A holding company that owns enough voting shares to control the decisions and appointments of directors is called a parent company. Holding companies allow the reduction of risk for the shareholders. Offshore holding companies also decrease overall taxes and offer an additional level of anonymity to the end beneficiaries. The principal uses of Offshore holding companies is for investment, property, patent, royalty or copyright holding. The Mauritian offshore offers Holding Company regimes that are generally favourable with regards to the treatment of foreign sourced income and benefits through proper tax planning with our extensive double taxation treaty agreements. 12

14 Intellectual property Intellectual property holding companies are those specifically designed for owning another s intellectual property i.e. patents, copyrights, trademarks, service marks, trade secrets, etc. for the purpose of managing, selling and/or licensing same to third parties for the right to exploit said intellectual property in a given or agreed upon manner. The reason behind A business with a substantial amount of intellectual property may decide that an intellectual property ("IP") holding company will improve its ability to manage its intellectual property, while simultaneously reducing the tax burden on the business. In the IP holding company model, the parent company, the original owner of the intellectual property, establishes a wholly-owned subsidiary as a holding company and then transfers ownership of its intellectual property to the newly-created holding company. The advantage In addition to the tax benefits, the creation of an IP holding company can increase corporate efficiency in the operation of the business. By consolidating ownership of intellectual property, the separate entity can provide centralized management of IP assets worldwide with a more global view on the exploitation of the assets. Benefits: Cost and protection Segregating the IP assets also allows the cost/benefit analysis of the IP holdings to be more accurately calculated. Moreover, by placing the intangible assets into an IP holding company and appointing officers and directors different from the operating company's officers and directors, the parent company can insulate itself from involvement in the prosecution of lawsuits involving the intellectual property. 13

15 Company migration services Versatility A foreign company may transfer its seat to Mauritius and continue as a GBC1 or a GBC2 company and likewise a global entity in Mauritius transfer its statutory seat to another jurisdiction. Our migration services If you are interested in moving your activities here we can help you migrate your company from anywhere in the world to Mauritius with the following added value services provided by our partners and within our expertise: 14 Arranging office facilities Applying for residency and work permits for foreign workers and families Business facilitation with local commercial partners and distributors

16 Protected cell companies Mauritius approved the Protected Cell Company Act 1999 (amended 2000) and came into force in January The PCC allows companies with a Category 1 Global business License to create cells for the purpose of segregating and protecting assets of one cell against failure of another cell. Risk management A Protected Cell Company is able to segregate its assets into different cells within that company and protects each cell from the liabilities of any other cell. This allows additional opportunities, flexibility and security for international investment structuring especially for an entity with various investment portfolios where each has its own investment strategy and risk profile. Ordinary shares are issued to control the core, these include voting shares. Cellular shares are issued relating to individual cells, these shares have no voting rights, The connection between the named cellular shares and cells to which they are related is set out in the Memorandum and Articles of Association of the PCC. Who is it for? Insurance companies (Life, captive, reinsurance, conglomerates) with a need for segregation of insurance policies Multi-nationals where companies can operate their captive insurance, treasury and other functions globally in a single entity using the same core capital. Global business funds - collective investment schemes with various classes of shares, umbrella or multi-class funds. 15

17 Mauritius meets Europe Foreign Direct Investments (FDIs) The level of FDI remains well above the 2005 level (MUR 9.5 billion in 2011, MUR 12.7 billion in 2012) with an average around 50% originated from the EU (with France, the UK and Switzerland as the leading investors). Mauritius companies are highly used for inbound investments in countries like Luxembourg, Italy, UK,etc. Likewise these European countries use Mauritius companies for outbound investments due to the favourable treaties that Mauritius has. Investment funds through Mauritius With the recent signing of the co-operation agreement with the European Securities and Markets Association (ESMA), will ensure that Mauritius-licensed funds can be marketed in the EU through private placement regimes following the recent implementation of the alternative investment fund managers directive (AIFMD). Strong ties with the European Union The country's political heritage and dependence on Western markets have led to close ties with the European Union and its member states, particularly the United Kingdom and France. 16

18 Mauritius meets Africa The obvious route Mauritius is serving the Global investors as a natural route to structure investments in Africa. There is no doubt that Africa will receive substantial amount of investment as the next emerging market in the next decades. Member of various organizations SADC (Southern African Development Community) COMESA (common market for Eastern and Southern Africa) Indian Ocean Rim Association of Regional Cooperation AGOA, i.e US Africa Growth and Opportunities Act Protection of investments towards Africa Mauritius has a network of double tax treaties with many countries in the African continent and includes Botswana, Lesotho, Madagascar, Mozambique, Namibia, Rwanda, Senegal, Seychelles, Republic of South Africa, Swaziland, Tunisia, Uganda and Zimbabwe and a few more under consideration of negotiation. Besides, Mauritius has also signed IPPA s, i.e Investment Protection and Promotion Agreements with a number of African countries which give protection of investments against expropriation or confiscation by governments as well as encouraging promotion between member estates. 17

19 Mauritius meets Asia Mauritius is a unique international financial centre with strong cultural and commercial ties with India and China. Using the Mauritius advantage - China Chinese companies are now predominantly structuring their Africa investments through Mauritius. Structuring their investments through offshore structures minimises the risk of investment failures and provides tax savings through the use of double tax agreements (DTAs). Using the Mauritius advantage - India India was the main target of investments routed through Mauritius, culminating in a double taxation avoidance agreement signed between the two nations in When liberalization and globalization swept India off its feet in the early 1990s, Mauritius became the primary investment gateway for the thriving sub-continent economy It is better to structure investments through a country with an investment treaty to ward off the risk of expropriation, especially when investing in small developing countries where there could be political risks involved or changes in government policies, according to Sumant Nayak, chief legal officer of the Indian infrastructure giant GMR Group. 18

20 GET IN TOUCH WITH ECS GLOBAL ECS Global Ltd 3rd floor Labama House, Sir William Newton Street, Port-Louis, Mauritius ecsglobalmu General queries: info@ecsglobalbusiness.com facebook.com/ecs linkedin.com/ecsglobal plusgoogle.com/ecsglobal