If you wish to start a business on the island of Mauritius, a domestic company is the most appropriate solution, provided the necessary permits are obtained. The domestic company, which can subsequently be transformed into GBCL, benefits in all cases from a stable, solid and dynamic environment.
The domestic company is the most common type in Mauritius; also, it makes it possible to conduct a commercial activity within the country and/or abroad. Its particularities are:
- Similarly to other types of businesses, it is governed by the “Companies Act 2001” and the “Business Registration Act 2002”.
- Incorporation of the company may occur in the absence of the shareholders.
- The name of the domestic company ends with “Limited” or “Ltd.”, referring to the limitation of the liabilities of the shareholders. with regards to their capital contribution to the company.
- No minimum capital required.
- No mandatory written Statute (Constitution).
- It is possible for investors to set up a domestic company to obtain an investor visa and, in such a case, the investor is required to pay 100,000 USD (approximately 89,500 euros) to the company’s current account.
- The investor may hold all the shares in the capital of the company.
- If the investor is a resident of Mauritius and has an annual turnover of less than Rs. 6,000,000 (approximately EUR 150,000), he is not required to appoint a Mauritian secretary or director.
- If the investor is not a resident of Mauritius, he must appoint at least one Mauritian director to be a member of the Board of Directors.
- 15%: this is the VAT on the turnover generated in Mauritius.
- Profits are taxed at only 15%.
- When the investor pays himself a salary, the latter will be exempt from Social Security contributions, however, it will be taxable at source, at 15%.
- Income exceeding Rs. 3,500,000 (approximately EUR 87,500) is taxed at 5 %.
- As a tax resident of Mauritius, the investor is exempt from capital gains taxes and inheritance taxes on its assets.
- Up to Rs. 6 000 000 (approximately EUR 150 000) of turnover generated abroad is exempt from VAT.
Incorporation of the domestic company
The investor or a professional representative can undertake the procedures to incorporate the domestic company at the Registrar of Companies, located in Port-Louis, the capital city of the island:
- Reservation of the name of the company is free and paid if the reservation of the name postponed (7 days maximum after incorporation),
- If the investor wants a “Constitution”, the document must be endorsed by a Mauritian lawyer, notary or solicitor who will issue a certificate of legality.
- Provide only original and signed documents
Allow 2 to 3 working days between the submission of the complete application and the receipt of the certificate of incorporation.
Documents to provide:
- Passport if the investor is a foreign national,
- National identity card if the director or shareholder is a citizen of Mauritius,
- Proof of residence of less than 3 months if the director is a Mauritian or a Mauritian resident
The costs amount to Rs. 3,200 + Rs. 200 for the “summary of the file”.