Global Business Companies
Prior to the Finance Act 2018 (the Act), Global Business Companies used to be of two types, namely the Category 1 Global Business Company (GBC1) and the Category 2 Global Business Company (GBC2). However, with the enactment of the Act, the GBC1 and GBC2 regimes have been abolished (phased abolishment) and the following have been introduced:
Corporations licensed as a GBC1 on or prior to 16 October 2017 are grandfathered and will continue to hold their GBC1 licence up to 30 June 2021. As from 01 July 2021, the licence will be automatically converted from a GBC1 to a Global Business Licence. A corporation licensed as a GBC1 after 16 October 2017 will be automatically converted to a Global Business Licence as from 01 January 2019.
As regards the GBC2, licences issued on or prior to 16 October 2017 will lapse on 30 June 2021 and licences issued after 16 October 2017 will lapse on 31 December 2018. Once the licence has lapsed, a GBC2 will continue to remain subject to the obligations of the GBC2, comply with the terms and conditions imposed by the Financial Services Commission (FSC) and will be required to comply with the directions of the FSC for the orderly dissolution of its business and the discharge of its liabilities.