Domestic Company

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.

Type and naturePrivate or Public company

Limited by shares
Limited by guarantee or Limited by both shares & guarantee
ResidencyResident in Mauritius for tax and non-tax purposes
Permitted ActivitiesTrading, Consultancy services & investment holding amongst others

May hold immovable property such as the Integrated Resort Scheme (IRS)
Restrictions on activitiesBusiness 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 companyDomestic companies whose turnover is less than MUR 50 million
ConstitutionOptional; if none adopted, company will be governed by the Companies Act 2001
MeetingsAnywhere for directors’ and shareholders’ meetings
RecordsPublicly accessible
RelocationMay transfer its seat to another jurisdiction
Income Tax15% corporate income tax; no entitlement to automatic remission of deemed foreign taxes paid
CSRA Corporate Social Responsibility (CSR) tax of 2% on chargeable income
Global businessMay be converted to a category one or category two global business company
Double taxation treatyAccess to double taxation treaties benefits

 

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