- December 20, 2022
- Posted by: audrey
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.
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.
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.
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.