A DOMESTIC COMPANY IS REGISTERED WITH THE REGISTRAR OF COMPANIES AND GOVERNED UNDER THE COMPANIES ACT 2001.
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.
A domestic company can apply for a Freeport Licence for warehousing, transshipment, and/or transformation of products in the Freeport sector.
A domestic company authorized 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 preferences of Mauritius.
However, if the Freeport Licence Company has an activity of transformation with a value added characteristic to its product, the company will be taxed at 15% on the profits generated by that activity. The Freeport Licence Company can also sell part of its products on the local market. It also has the right to have a trading activity without the physical transfer of goods to Mauritius (valid under certain conditions).
In addition to the tax advantages that a Freeport Company can benefit, it will be exempted of custom duties on the importation of its equipment and raw materials, as well as reduced port handling charges amongst others.
It 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.
Other Features of a domestic company
It is not mandatory for a domestic company to adopt a Constitution with the proceedings of the Company, The Company can be governed by the Companies Act 2001.
- 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.
A Domestic Company must appoint at least one (1) director resident in Mauritius
Capital Horizons Ltd can provide for resident directors if required.
A minimum of one (1) shareholder (individual or corporate) is required. The shareholder of a domestic company can be non-resident of Mauritius.
- Bank Accounts
Bank accounts for the company can be opened in foreign currencies and Mauritian rupees with any commercial bank operating in Mauritius.
- 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 an annual return with the Registrar for registration,
Auditing of the financial statements is not compulsory unless the turnover of the Company is at least Rs.50 millions.
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 domestic company is liable to Mauritian income tax at the rate of 15%.