A domestic company, also referred to as a local company, is defined as being a company incorporated under the laws of Mauritius and governed by the Mauritius Companies Act 2001. The domestic company is resident in Mauritius and accesses to the Double Taxation Agreements (DTAs) which Mauritius has in place. It is also taxable at a flat rate 15% on chargeable income and is not subject to withholding tax on capital gains tax, dividends or exchange control in Mauritius.
A domestic company can either be a Private or Public Company. There are three types of domestic companies in Mauritius, namely:
1. Limited by shares
Company limited by shares means a company formed on the principle of having the liability of its shareholders limited by its constitution to any amount unpaid on the shares respectively held by the shareholder.
2. Limited by guarantee
Company limited by guarantee means a company formed on the principle of having the liability of its members 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 its being wound up.
3. Limited by both shares and guarantee (Also known as Hybrid)
Company limited by shares and by guarantee means a company formed on the whose constitution limits its life to a period not exceeding 50 years from the date of its incorporation. However, this period may be extended to a maximum of 150 years. Its constitution contains the specific matters as laid down in the law.
