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 subject to the supervision of 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 law applicable to Mauritian companies. It is the most common structure for businesses wishing to develop a commercial, industrial or service activity aimed at the local market.

Who is it suited for ?

The local company is aimed at entrepreneurs — Mauritian or foreign — who wish to operate directly on the Mauritius market. It is particularly well suited to the following activities :

• Retail and wholesale trade : shops, import-export for the local market, distribution
• Services to businesses and individuals : consulting, maintenance, IT services, marketing
• Catering 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 lawful activity on the territory without restrictions linked to the type of licence
• Simplified incorporation process : registration is faster and less costly than for a GBC, with no FSC involvement
• No FSC licence required : regulatory obligations are lighter than for global business structures
• 100 % foreign shareholding : no nationality restriction on shareholders or directors
• Clear and predictable taxation : a single 15 % tax rate 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 may have from 1 to 50 shareholders. Shares are not freely transferable and may not be offered to the public. It is the structure preferred by SMEs and individual entrepreneurs.

Public Limited Company

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

Single Shareholder Company

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

Incorporation process

The formation of a company 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 the registration form, including information on shareholders, directors and the registered office
3. Registration : filing of 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 : standard rate of 15 % on net profits (reduced rates exist for certain activities, for example the export of goods)
• 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 withhold employees' income tax and remit it to the MRA on a monthly basis
• CSG (Contribution Sociale Généralisée) : mandatory social contributions for employers and employees

Permits and authorisations

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

• Sectoral licences : certain activities (catering, real estate, transport, tourism, education) require specific licences issued by the competent 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 further details
• Environmental authorisations : activities with an 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 old) for each party
• Bank or professional references
• Detailed description of the intended activity and a 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