Domestic Company
A domestic company, also known as a local company, is an entity incorporated under the laws of Mauritius by the Registrar of Companies and governed by the Companies Act 2001, the Business Registration Act 2002 and the Income Tax Act 1995, amongst other legislations.
A domestic company is a ‘small private company’ where the turnover is less than MUR50 million and it is not a GBC1. The use of a domestic company is the best way to conduct business with Mauritian residents and is the preferred route to investing in Mauritius but it can also be used for various other purposes.
General Description
Statutory Requirements
General Description
| Type and nature | Private or Public company Limited by shares Limited by guarantee or Limited by both shares & guarantee |
| Residency | Resident in Mauritius for tax and non-tax purposes |
| Permitted Activities | Trading, Consultancy services & investment holding amongst others May hold immovable property such as the Integrated Resort Scheme (IRS) |
| Restrictions on activities | Business can be conducted with local and non-local residents of Mauritius but cannot deal with global business companies of both categories, unless the GBC is authorised by the FSC |
| Small private company | Domestic companies whose turnover is less than MUR 50 million |
| Constitution | Optional; if none adopted, company will be governed by the Companies Act 2001 |
| Meetings | Anywhere for directors’ and shareholders’ meetings |
| Records | Publicly accessible |
| Relocation | May transfer its seat to another jurisdiction |
| Income Tax | 15% corporate income tax; no entitlement to automatic remission of deemed foreign taxes paid |
| CSR | A Corporate Social Responsibility (CSR) tax of 2% on chargeable income |
| Global business | May be converted to a category one or category two global business company |
| Double taxation treaty | Access to double taxation treaties benefits |
Statutory Requirements
| Director | At least one resident director required |
| Shareholder | Minimum 1 shareholder – individual or corporate – need not be resident in Mauritius. May be limited by share, by guarantee, both by shares and guarantee. It may be an unlimited company, a foreign company, a limited life company, a one-person or a small private company. |
| Stated Capital | At least 1 share, denominated in MUR. No minimum stated capital requirement |
| Currency | Stated capital in MUR – can be set up with 1 ordinary share or MUR 1 |
| Registered Office | Must at all times have a registered office in Mauritius where all statutory and accounting records are kept |
| Company Secretary | Other than a small private company, local companies must at all times have a qualified company secretary, who is resident in Mauritius, can be either an individual or a corporate body |
| Bank Account | May have bank accounts in any currency |
| Board meetings | Must be held and chaired in Mauritius |
| Filing of accounts | Annual financial summary if turnover is less than MUR 20 million Audited FS if turnover exceeds MUR 20 million – prepared by a local auditor |
| Annual return | Annual return to be filed within 28 days of annual general meeting. A small private company which has an annual turnover not exceeding MUR 20 million shall not be required to file an annual return, unless there is a change in its shareholding or in the composition of the board of directors or any other particulars in relation thereto |
| Filing with MRA/Taxation | Annual tax declaration to the Mauritius Revenue Authority (MRA). Quarterly tax declaration ‘Advance Payment System’ (APS) submissions for companies with an annual turnover exceeding MUR 6 million. |
| VAT registration | Compulsory where the turnover exceeds MUR 2 million |
| Mobility | May transfer its seat in another jurisdiction May be converted into a GBC1 or GBC2, subject to FSC approval |