Mauritius

Mauritius is a jurisdiction where there is minimal income tax and no capital gain tax.

overview

Mauritius

Fund Manager / Investment Adviser License requires a reasonable minimum Paid-Up Capital, and is issued within a reasonably short time frame.

Mauritius is one of the best places to save on costs for Investment Houses and Fund managers. Mauritius Funds benefit from the presence of a wide array of fund administrators, service providers and fund lawyers in the country.

Mauritius has complied with the international requirements on combating money laundering and terrorism financing, with the aim of increasing its credibility as an offshore heaven.

Category 1 Global Business Companies (GBC1) are exempted 80% of their income tax, effectively reducing tax rate from 15% to 3%.

Companies operating in Mauritius are also entitled to close to 40 Double Tax Agreements, alleviating the need to pay income tax twice in 2 different countries.

  • Time Frame: Approximately 4 – 6 Months
  • Taxation: 3% (Corporate Income Tax).
  • License:
    • Collective Investment Scheme (CIS) – Open End Fund
    • Collective Ended Fund (CEF) – Private Equity Fund

For each Director, Shareholder and Ultimate Beneficial Owner:

  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Proof of Address
  • Notarized / Certified True Copy of Bank Statement
  • Bank Reference Letter
  • Detailed CV dated and signed by the applicant


For each Corporate Shareholders of the company:

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of Associations
  • Register of Shareholdings
  • Register of Directors
  • Certificate of Good Standing (if the company is over 12 months old)


Other Documents Required:

  • Detailed Business Plan, including:
    • A description of the activities, targeted customers, products and services to be offered, target countries/geographical area of operations, risks associated with the model proposed, and measures to mitigate those risks
    • Process flow of funds and role of the company in the process with respect to the flow of funds
    • A copy of the contract to be signed between the company and the customers
    • Details on the mechanisms put in place to ensure the security of transactions
    • Proof of Source of Wealth
Company structure:
  • Minimum 2 Directors (with experience in Fund Management)
  • Minimum 2 Local Directors (Mauritius Residents, Offshore Tech & Intermediary Services will provide for you)

Taxation:
  • Standard Corporate Tax of 15% is reduced to a net effective rate of 3%
  • Free repatriation of profits, dividends and capital
  • No exchange control restrictions

Accounting requirements:
  • Audit should be done in Mauritius
  • Audited Financial Statements and Tax Return must be submitted within 3 months from its balance sheet date
  • Accounting records should be kept at the local office

Others:
  • Registered Agent – Required
  • Registered Office – Required
  • Company Secretary – Required
  • Professional Indemnity (PI) Insurance Cover – Required
Legal Framework: The Securities Act 2005

Regulatory Authority: Financial Services Commission of Mauritius (FSC)

Time Frame: Approximately 4 – 6 Months

Minimum Paid-Up Capital: MUR 1 million (approximately USD 25,000) (for CIS License)

CIS – Collective Investment Scheme:
  • Collective Investment Schemes (CISs), commonly referred to as Open-Ended fund, is a scheme constituted as a company, a trust, or any other legal entity approved by the FSC.

  • Close-Ended Funds (CEFs) whose shares are listed on a securities exchange are also considered CISs.

  • Its sole purpose is the collective investment of funds in a portfolio of securities, or other financial assets, real property or non-financial assets as may be approved by the FSC.

  • The operation of CISs is based on the principle of diversification of risk.

  • On request of the holder, a CIS is obliged to redeem the securities at their net assets value, less commission or fees.

CEF – Closed-Ended Fund:
  • A Closed-Ended Fund (CEF), commonly referred to as a private equity fund, is a scheme that invests in a portfolio of securities, or in other financial or non-financial assets, or real property, as may be approved by the FSC, with the objective of investing funds collected from subscribers or sophisticated investors.

  • An entity needs to be authorized as a CEF if it wants to invest funds collected from sophisticated investors in a portfolio of securities, or in financial or non-financial assets, or solicits another person to purchase or subscribe to securities that have never been issued previously.

  • An entity needs to be authorized as a CIS if its sole purpose is the collective investment of funds in a portfolio of securities or other financial assets, real property or non-financial assets and operates based on the principle of diversification of risk.

  • The primary difference between a CIS and a CEF is that a CIS has a variable share capital while a CEF has a fixed share capital and has the obligation, on request of the holder of the securities, to redeem them at their net assets value, less commission or fees.

Capital Requirement:
  • The minimum capital requirement for a CIS is currently set at MUR 1 million (approximately USD 25,000) or equivalent in other currencies, given the nature, complexity and risks associated with CIS activities.
  1. Compile and prepare all the application forms and documents for initial verification.

  2. Draft the Detailed Business Plan as requested.

  3. Perform due diligence on the Know Your Customer (KYC) documents of the Directors and Ultimate Beneficial Owners.

  4. Incorporation of a company in Mauritius.

  5. Submit the application of the CIS or CEF License to Financial Services Commission of Mauritius (FSC).

  6. Provisional approval will be granted by FSA if it is satisfied with our submission.

  7. We will liaise with FSC on follow-up actions, and submit additional documents that are requested.

  8. Fulfill all the conditions listed by FSA in order to obtain the License.
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