Domestic Company

A domestic company is an onshore company established in Mauritius by Mauritian citizens and foreigners to carry out a wide range of commercial activities.

The domestic company is allowed to trade on the local market as well as outside of Mauritius if it is controlled by non-Mauritius citizens. However, the status of a domestic company is not valid if it is controlled by non-Mauritius citizens and its business is primarily geared toward the overseas market. If the criteria to meet the domestic company status no longer apply, establishing a Global Business Corporation (GBC) is the appropriate course of action. Converting from a domestic company to a GBC can take place at any time.

A domestic company is required to hold a trade licence according to its activity. A physical office in Mauritius is needed to be granted a trade licence and a special license is required if the company offers financial services and products both locally and offshore.

Director

At least one Mauritius resident director is to be appointed on the board of a domestic company. The appointment of a corporate director is not allowed, however, a nominee director may be appointed. Board meetings should be held from within Mauritius.

Taxation

The domestic company is charged a flat rate of 15% income tax and a Corporate Social Responsibility (CSR) tax of 2% on its chargeable income. The CSR tax may vary depending on the nature of the business.

VAT is charged at 15% and registration is required according to the activity of the company. The VAT registration is compulsory if the company generates a minimum of MUR6 million turnover per annum.

Double Tax Treaty

The domestic company is classified as a Mauritius resident company and has access to the Double Taxation Avoidance Agreements (DTAA) network in force with several countries. The DTAA is essential to eliminate and/or reduce double taxation when investing abroad.

Accounts

The accounts of a domestic company needs to be audited from the time its turnover reaches MUR50 million and such audited accounts are filed annually with the Registrar of Companies.

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