This is the most common type of trading company in Mauritius. Once registered under the Companies Act 2001 and the Business Registration Act 2002, a domestic company allows you to conduct business locally and/or internationally.
Different company structures exist. The most commonly adopted is “Limited” or “Ltd” meaning that the liability of shareholders is limited to their contribution to the company’s share capital.
There is no minimum share capital however if you incorporate a domestic company to obtain your investor visa, you will have to prove an initial payment of USD 100,000 to the company’s current account.
You can hold all the shares of the company’s capital. If you are resident in Mauritius, there is no obligation to appoint a Mauritian secretary or director for an annual turnover of less than Rs 6,000,000 (approximately € 150,000).
VAT on the turnover made in Mauritius is 15%.
Taxation is without comparison with European taxation in general and French taxation in particular since profits will be taxed at a flat rate of only 15%.
If you choose to take a salary, it will not be subject to social security contributions. The 15% tax will be levied “at source”.
A flat tax rate of 5% will apply to income above Rs 3,500,000 (approximately €87,500).
As a tax resident of Mauritius, you will not be subject to wealth tax (ISF) on your assets in Mauritius. You will also not be taxed on capital gains and your assets will be transferable without inheritance tax.
The Mauritian domestic company, in addition to bringing you certain advantages in terms of flexibility and operating costs, offers you an exemption from VAT on the turnover made outside Mauritius up to Rs 6 000 000 (approximately € 150 000).