Domestic Company

A domestic company is registered with the Registrar of Companies and governed under the Companies Act 2001.

A domestic company can be set up for various activities including Trading, Investment Holding, and Consulting Services amongst others. The activities can be conducted with residents of Mauritius as well as with non residents of Mauritius.

MITCO Corporate Services Ltd can assist you with the set up and administration of a domestic company.

  1. Constitution
    The Company is not obliged to adopt a Constitution with the proceedings of the Company, the directors and the shareholders to be governed by Schedule 2 of the Companies Act 2001.

  2. Stated Capital
    There is no minimum stated capital required. Unless advised to the contrary, the Company can be incorporated with a Stated Capital of MUR 100 representing 100 Ordinary Shares of MUR1.

  3. Directors

    • A Domestic Company must appoint at least one (1) director resident in Mauritius

    • MITCO Corporate Services Ltd can provide for resident directors if required.

  4. Shareholders

    • A minimum of one (1) shareholder (individual or corporate) is required.

    • The shareholder of a domestic company can be non resident of Mauritius.

  5. Principal Place of Business
    A Domestic Company requires a Trade Licence from the Municipal Council / District Council pertaining to the location of its principal place of business.

  6. KYC documents
    For the set up of the Company KYC documents will be required for the shareholders and Directors. Those documents for an individual typically comprise ID, proof of residential address, bank reference letter, and professional profile amongst others.

    For a Corporate shareholder the documents concerned include Certificate of incorporation, constitution, register of members and directors, and financial statements amongst others.

  7. Lead Time
    The lead time for the incorporation of a domestic company by the Registrar of Companies is 3 working days once all pertaining documents have been submitted.

  8. Bank Accounts
    Bank accounts for the company can be opened in foreign currencies and Mauritian rupees with any commercial bank operating in Mauritius.

  9. Accounting and audit
    Annual financial statements duly signed by at least one Director of the Company are required to be filed with the Registrar of Companies.

    Every company shall, once in every year, file with the Registrar for registration, an annual return.

    Auditing of the financial statements is not compulsory unless the turnover of the Company is at least Rs. 50 millions.

  10. Taxation
    A domestic company has to submit an annual tax declaration to the Mauritius Revenue Authority [MRA]. Quarterly tax declaration ‘Advance Payment System’ [APS] submissions will be required for any domestic company with an annual turnover exceeding Rs.2 millions [USD 66K].

    VAT registration of company is compulsory for any domestic company with turnover exceeding Rs. 2 millions.

    A Corporate Social Responsibility [CSR] tax of 2% is applicable to chargeable income of domestic companies.

Domestic Company with Freeport Licence
 

The Mauritius Freeport is a Logistics and marketing hub enabling Mauritius companies to trade in the region and benefit from Mauritius strategic position in the Indian Ocean between Asia, Africa, Australia and Europe. The Freeport sector under the management of Freeport Developers provides logistics and warehousing facilities for activities of transhipment, storage, packaging, simple assembly, bulk breakage, sorting, grading and minor processing of goods. A domestic company authorised to operate in the Freeport zone can obtain significant fiscal and commercial advantages by combining the benefits of COMESA and SADC membership, the double tax treaties and commercial preference agreements of Mauritius.

The Freeport Company benefits from a number of incentives including tax exemption on certain activities for a prescribed period, duty-free and VAT free for goods imported into the Freeport Zones, reduced port handling charges and the possibility of doing Paper Trading activities amongst others.

MITCO Corporate Services Ltd can process the application for the incorporation of the domestic company and the application for a Freeport Licence on behalf of its client as well as provide administration services for the management of the Company. A domestic company with a Freeport Licence under the Freeport Act 2004 can benefit from preferential access to market of member countries of the Common Market of Eastern and Southern Africa (COMESA) and Southern Africa Development Community (SADC).

Mauritius is a founder member of the COMESA and SADC, and the Mauritian Freeport may be used to conduct activities which enable goods to satisfy the rules of origin for preferential access to the COMESA markets. Furthermore, given that Mauritius benefits from trade agreements such as the Cotonou Agreement, the Generalised System of Preferences (GSP) and the Africa Growth & Opportunity Act (AGOA), preferential access for goods of Mauritian origin to the European Union and the United States is possible.

The Freeport legislation enables the investor to access a cost-effective logistics platform with advantages including:

  • Zero Corporate tax on profits and free repatriation of profits and capital

  • Exemption from customs duties on goods and equipment imported into the Freeport zone

  • Modern and customised infrastructural facilities in the Freeport zone including warehouses for dry goods, cold storage rooms, offices, showrooms and exhibition centres amongst others

  • Reduced port handling charges for goods destined for re-export

  • Access to the local market

  • Possibility of doing Paper Trading activities

  • Modern computerised stock management and other support systems