Domestic Companies

A domestic company (also referred to as a local company, is a company incorporated under the laws of Mauritius and governed by the Mauritius Companies Act 2001. The domestic company is resident in Mauritius and eligible 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.

Key Features:

  1. Tax-resident of Mauritius eligible to benefit from the network of Double Taxation Avoidance Agreements (DTAAs)
  2. Taxed at 15 %
  3. No Tax on dividends, interest and payables
  4. No capital gains tax
  5. No stamp duties
  6. No inheritance tax
  7. No exchange control
  8. Holding immovable properties like villas or apartments
  9. Operations within and from Freeport zone
  10. Transacting with Mauritian and foreign companies
  11. Can be a base entity for Protected Cell Company

A domestic company can either be:

  1. Private Company
  2. Public Company

There are three types of domestic companies in Mauritius:

  • 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.

  • 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.

  • Limited by both shares and guarantee

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.

Mauritius is a flourishing democracy with an independent legal system and, thanks to its stability, an economic success. Precisely for these reasons, many South Africans have chosen to emigrate to Mauritius on a permanent basis to benefit from the country’s financial and tax securities.

Furthermore, Mauritius’ infrastructure, reliable private and public facilities, and free access to public education has made the country even more attractive to South African nationals who are seeking for a place not far from home with better service delivery for one’s children and elderly. To add to the financial and tax benefits, and increased quality of life, it provides a beautiful sight and a taste of island life.

Taxation:

One of the greatest benefits of living in Mauritius is the competitive tax rates.

A Permanent Residence Permit (PRP) is a permit for people looking to live and work in Mauritius. 

There are 4 options open to expats looking to immigrate to Mauritius:

  • Retired Non-Citizen

If you are 50 years or above and retired, you may apply for a Mauritius Residence Permit as a Retired Non-Citizen.

This permit is valid for 10 years and may be renewed.

Requirements:

  • Initial transfer of USD 1500.
  • Monthly Income of at least USD 1500 (R22 800) – This will need to be proved annually at the end of each year.

Restrictions:

A Retired Non-Citizen is not allowed to engage into gainful activity in Mauritius. However, the Retired Non-Citizen may invest in any business venture provided that he is not employed in the business, does not manage the business, and does not derive any employment benefits from the business.

Family:

The following members of the holder of a Mauritius Residence Permit as a Retired Non-Citizen’s family may also apply for residence permit:

  • His spouse or common law partner
  • His child, stepchild or lawfully adopted child under the age of 24, or the child of his spouse
  • His parents



  • Non-citizen holding immovable property:

Should you acquire residential property worth more than USD 375 000 (R 5 600 000.00) you will be eligible for a residence permit as long as the property is purchased under the Mauritius Property Development Scheme or under the Mauritius Smart City Scheme

This permit is valid for as long as the property is held. The holder of this permit may invest and work in Mauritius without needing a work permit.

Restrictions:

There is no restriction on the rental of the property.

Family:

The following members of the holder of a Mauritius Residence Permit’s family may also apply for a residence permit:

  • His spouse or common law partner
  • His child, stepchild or lawfully adopted child under the age of 24, or the child of his spouse
  • His parents


  • Work Permit

Work permits may be granted to foreign workers in industries where labour is in short supply. The employer would apply for a Mauritius work permit on behalf of the prospective employee.

Foreign workers are normally allowed to work for a period of up to four years. Beyond four years, they are required to swear an affidavit that they will not apply for Mauritian citizenship.

The dependents of the non-citizen may be allowed to stay in Mauritius subject to having adequate means to maintain himself or herself and his or her family.

  • Occupation Permit – up to 10 years

Professional: A Professional is a non-citizen employed in Mauritius by virtue of a contract of employment, who derives a basic salary of at least MUR 60,000 (R22 000), except if employed in the ICT sector where the basic monthly salary should be at least MUR 30,000 (R11 000).

A Professional may invest in any business provided that he is not employed in the business, does not manage the business and does not derive any employment benefits from the business.

Occupation Permit – Investor: An Investor is a shareholder and director in a company incorporated in Mauritius, engaged in an approved business activity. In general, an initial transfer of USD 50,000 (R782 000) would need to be made, and the business activity would be expected to generate an annual turnover at least MUR 3 million (R1,1 mil).


  • Permanent residence permit:

Investor:  Invested USD 375 000 (5,8mil) into a qualifying activity. Eligible to live and work in Mauritius for 20 years.

Holder of an Occupation Permit: Expires after three years but if one of the following 3 conditions are met the permit may be extended to 10 years:

  • Investor: The company’s turnover exceeded a cumulative amount of MUR 45 million, for any consecutive period of 3 years, in respect of each shareholder of the company.
  • Professional: The monthly basic salary is at least MUR 150,000 for three consecutive years immediately preceding the application for a Permanent Residence Permit.
  • Self-Employed: The business Income of the applicant is at least MUR 3 million per annum for the 3 consecutive years immediately preceding the application for a Permanent Residence Permit.

Information Coming Soon