Company Set Up - Intrasia Corporate Services Ltd

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.

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.

Our main role is to guide our clients with their projects and provide reengineered and restructuring solutions adaptable to the changing environments, determining factors and times, to suit and match each and every client’s requirement and ambition.

Other Features of a domestic company

Constitution

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.

Directors

A Domestic Company must appoint at least one (1) director resident in Mauritius Intrasia Corporate Services Ltd can provide for resident directors if required.

Shareholders

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.

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 domestic company is liable to Mauritian income tax at the rate of 15%.

PARTNERSHIPS (SOCIÉTÉS) IN MAURITIUS ARE GOVERNED BY THE MAURITIUS CIVIL CODE (CODE CIVIL MAURICIEN) AND THE MAURITIUS COMMERCIAL CODE (WHICH IS CALLED THE CODE DE COMMERCE).

A société is comprised of at least two partners and its terms are governed by a partnership deed. The liability of each partner is limited to its ownership share, unless otherwise provided for in the partnership deed. With the exception of unregistered partnerships (sociétés en participation), a société is vested with legal personality as from the date of its registration with the Registrar of Companies. Sociétés have a legal personality that is they have a name and a nationality with a life period of 99 years.

Tax exemptions and concessions

A resident société is not liable to tax. Instead, every associate of the société is liable to tax on his share of income, whether distributed or not. However, where a société owns immovable property and the property is thereafter sold or transferred, the tax on the gains derived thereon is payable by the société. The Tax rate on Gains from immovable property is 10%.

Annual returns

A resident société is required to fill in and submit its annual return of income (IT Form 6) to the MRA not later than 31 March.

A foundation is a vehicle designed to bring flexibility in the existing Mauritius corporate sphere and may be used to carry on or undertake any business or activity in or outside Mauritius, entering into any transactions and holding assets or for private wealth management and estate planning by high net worth individuals. Foundation in Mauritius are governed by the Foundation Act 2012.

A Foundation may be set up to achieve both charitable and non-charitable objects and can be either to benefit a person or class of person or to carry out a specified purpose. It acts through its council, which is the body in charge for the administration of the Foundation’s assets and the attainment of its objects.

COMPANY SET-UP (Mauritian Entities)

Mauritius Domestic Company

Societé (Partnership)

Mauritian Foundation

Other Features of a domestic company