Local Company in Mauritius

What is a local company in Mauritius?

The local company, or domestic company, is an entity incorporated under the Companies Act 2001 to carry out commercial activities primarily on Mauritian territory. Unlike structures such as the Global Business Company (GBC) or the Authorised Company (AC), the local company is not supervised by the Financial Services Commission (FSC) and does not need to hold a financial services licence.

It is registered with the Registrar of Companies and falls under the general Mauritian company law. It is the most common structure for businesses wishing to develop commercial, industrial or service activities aimed at the local market.

Who is it suited for?

The local company is suited to entrepreneurs -- Mauritian or foreign -- who wish to operate directly on the Mauritius market. It is particularly appropriate for the following activities:

• Retail and wholesale trade: shops, import-export for the local market, distribution
• Business and consumer services: consulting, maintenance, IT services, marketing
• Food and hospitality: restaurants, guest houses, tourism services
• Real estate: property development, rental management, construction activities
• Industry and manufacturing: local production, processing, agri-food
• Technology and startups: software development, digital services for the regional market

Advantages of the local company

Setting up a local company in Mauritius offers several significant advantages:

• Direct access to the Mauritian market: you can carry out any legal activity on the territory without restrictions related to licence type
• Simplified incorporation process: registration is faster and less costly than a GBC, without FSC involvement
• No FSC licence required: regulatory obligations are lighter compared to global business structures
• 100% foreign ownership: no nationality restrictions on shareholders or directors
• Clear and predictable taxation: a single tax rate of 15 % on profits, without the complexity of partial exemption regimes
• Eligibility for sectoral incentives: certain industries benefit from specific exemptions or tax credits granted by the Mauritian government

Types of local companies

The Companies Act 2001 provides for several legal forms for domestic companies:

Private Limited Company

The most common form, it can have from 1 to 50 shareholders. Shares are not freely transferable and cannot be offered to the public. This is the preferred structure for SMEs and individual entrepreneurs.

Public Limited Company

Intended for larger-scale businesses, it can issue securities on the market and has no limit on the number of shareholders. It is subject to enhanced transparency and governance requirements.

Single Shareholder Company

A variant of the private limited company, it allows a single individual or entity to hold the entire capital. The sole shareholder may also be the sole director, simplifying governance.

Incorporation process

Company formation in Mauritius follows a structured process. For the local company, the steps are as follows:

1. Name reservation: checking the availability of the trade name with the Registrar of Companies and reserving it
2. Drafting of constitutional documents: preparation of the Constitution (articles of association) and registration form, including information on shareholders, directors and registered office
3. Registration: filing the application with the Registrar of Companies of the Corporate and Business Registration Department (CBRD)
4. Obtaining the BRN: automatic allocation of the Business Registration Number, the company's unique identifier
5. Tax registration: registration with the Mauritius Revenue Authority (MRA) for corporate tax and, where applicable, VAT
6. Bank account opening: opening a business account with a Mauritian commercial bank

Local company taxation

The tax regime applicable to local companies is as follows:

• Corporate tax: single rate of 15 % on net profits
• VAT: standard rate of 15 %. VAT registration is mandatory once annual turnover exceeds MUR 6 million, or voluntary below this threshold
• Withholding tax: no withholding tax on dividends distributed to resident or non-resident shareholders
• PAYE: employers must deduct employee income tax and remit it to the MRA monthly
• CSG (Contribution Sociale Generalisee): mandatory social contributions for employers and employees

Permits and authorisations

Depending on the nature of your activity, additional authorisations may be required:

• Sector licences: certain activities (food service, real estate, transport, tourism, education) require specific licences issued by the relevant authorities
• Residence permit: foreign nationals must obtain an Occupation Permit to manage or work in their company. See our page on the investor permit in Mauritius or the work permit for more details
• Environmental authorisations: activities with environmental impact may require an EIA certificate

Required documents

To incorporate your local company, the following documents are generally required:

• Certified copy of the passport of each shareholder and director
• Recent proof of address (less than 3 months) for each party
• Bank or professional references
• Detailed description of the planned activity and summary business plan
• Proof of the registered office address in Mauritius
• Where applicable, board resolutions of the parent company for subsidiaries

Comparison: Local company vs GBC vs AC