A domestic company is the best way to conduct business with Mauritian residents and is the preferred vehicle for investing in Mauritius. A company incorporated in Mauritius can be 100% foreign-owned and there is no minimum capital requirement.
The following types of company may be incorporated in Mauritius:
- Company limited by shares – the liability of its shareholders is limited by its constitution to any amount unpaid on the shares respectively held by the shareholder
- Company limited by guarantee – the liability of its members is limited by its constitution to such amount as the members may respectively undertake to contribute to the assets of the company in the event of it being wound up
- Company limited by shares and guarantee (hybrid) – the liability of its members who are shareholders, is limited to the amount unpaid, if any, on the shares respectively held by them and who have given a guarantee, limited to the respective amount they have undertaken to contribute, from time to time, and in the event of it being wound up
- Unlimited company – no limit placed on the liability of its shareholders
- Foreign company – a body corporate that is incorporated outside Mauritius and that has a place of business or is carrying on business in Mauritius
- Limited Life Company – the constitution limits the life or duration of the company to a period not exceeding 50 years from the date of its incorporation. This period may be extended to a maximum of 150 years.
All companies are required to have a minimum of one director. The Companies Act 2001 also requires all companies other than small private companies to have a secretary and to be ordinarily resident in Mauritius.
All companies must maintain statutory books and records that adequately show the transactions and financial position of the company. All companies, except for domestic private companies with turnover of less than MUR50 million, must have their financial statements audited. These must then be filed with the Registrar.
A domestic company is liable to tax at a flat rate of 15% on chargeable income. Dividends paid by a Mauritius-resident company are exempt from income tax. Foreign dividends are taxable but a foreign tax credit can be obtained for any foreign tax suffered. The foreign tax credit is limited to the amount of Mauritius tax on that income.
All resident domestic companies are eligible to the various tax reliefs that are available under any double tax treaties in place.