Financial Services sector

Like in most countries, the Financial Services sector is regulated in Mauritius. In comparison with European countries, the regulation is lean, less costly and much easier for SMEs to comply with. Providers of financial services find an excellent legal, financial and regulatory environment in Mauritius. See cost comparison below.

The Financial Services (Consolidated Licensing and Fees) Rules 2008 set out the licensing framework that provides for a comprehensive codified list of financial services and financial business activities licensable by the Financial Services Commission.

Types: Retail, professional, hedge, private equity and venture capital funds.

Licenses are available for a single fund, multiple funds and CIS/CEF as a Protected Cell Company.

Unit trust and partnership schemes and foreign recognized schemes may be registered in Mauritius.

Management company for a Collective Investment Scheme. The effective corporate tax rate is 3%.

The holder of a Mauritius Asset Management license is able to manage securities based assets and non-securities based assets for his customers.

The effective corporate tax rate is 3%.

Holding and investment companies may be used advantageously in conjunction with Mauritian double tax treaties, in view of the nil or low withholding tax rates on interest and dividends provided for in the treaties. Most treaties also avoid capital gains tax in the country of investment. Such holding companies enable accumulation of tax free or low tax income for reinvestment.

Mauritius insurance legislations allow establishment of offshore captive insurance and reinsurance companies. A captive insurance company can either be a wholly owned or controlled subsidiary of an industrial or commercial group established for the purpose of participating in the risks of the group, or an association of unrelated companies or individuals with the aim of insuring their risks.

Can be used for private equity funds and management companies.

Special legislation permits segregation of assets and related liabilities within a company into cells and limits the claim of a creditor against assets of the cell it has contracted with. The ring-fencing of claims is possible for offshore funds, captive insurance companies and investment holding companies. The PCC also simplifies administration and reduces costs of operation.

Securities or capital market intermediaries:

• Investment Dealer (Full Service Dealer including Underwriting)
• Investment Dealer (Full Service Dealer excluding Underwriting)
• Investment Adviser (Unrestricted)
• Investment Adviser (Restricted)
• Investment Adviser (Corporate Finance Advisory)
• Investment Dealer (Broker)
• Investment Dealer (Discount Broker)

The Investment Banking License is a powerful combined license that includes the following activities:

• Investment Dealer (Full Service Dealer including Underwriting)
• Investment Adviser (Unrestricted)
• Investment Adviser (Corporate Finance Advisory)
• Distribution of Financial Products
• Asset Management
• such similar activities as may be approved by the Financial Services Commission