The Financial Services Commission (FSC) Mauritius is the established authority overseeing the non-banking financial sector and global business activities within the Republic of Mauritius. Founded in 2001, FSC Mauritius takes the lead in issuing licenses, regulating, and supervising business practices in sectors like securities, insurance, private pension schemes, and virtual assets. FSC Mauritius also plays a crucial role in overseeing entities involved in opening an account in international payment systems, ensuring compliance and fostering a competitive financial services hub.
Reasons to Obtain an Investment License in Mauritius:
A holder of an Investment License in Mauritius avails several benefits:
A strategic geographical location that facilitates business with four distinct continents within a single day.
An extensive network of double taxation avoidance agreements with over 43 nations.
An array of investment promotion and protection agreements.
A well-capitalized and sophisticated banking sector, inclusive of local and international banks, that delivers a wide range of services like corporate banking and custodian services.
A competent and educated workforce fluent in English and French.
A hybrid legal system, drawing from English and French law, with the United Kingdom Privy Council serving as the highest court of appeal.
The freedom to select from over a hundred accounting and auditing firms for business partnership.
Authorized Activities.
The FSC Mauritius authorizes each license category for a distinct set of activities. When it comes to providing investment services, the key license categories are the Investment Dealer and the Investment Adviser.
What Makes the Mauritius Investment Dealer License Attractive?
There’s an escalating interest from the global brokerage community for the Mauritius Investment Dealer licenses. Governed by the Mauritius Securities Act 2005 and the 2007 Securities Licensing Regulations, this license also necessitates having a GBL license.
Mauritius, with its high-caliber professionals and exceptional services, upholds its reputation as a premier international financial hub. Investment dealer licenses granted by the Financial Services Commission Mauritius are fast gaining recognition amongst brokerage firms worldwide.
The adoption of the financial services law in 2007 has significantly streamlined regulatory procedures and consolidated the legislative framework governing global businesses. Hence, the 2005 Law and 2007 Regulations continue to be the core regulatory framework that dictates regulations and operational boundaries.
Three types of investment dealers licenses, as per the law governing securities transactions, are issued:
Full-service Investment Dealer. This category includes underwriting and permits a comprehensive range of services, including:
Acting as an intermediary in securities-related transactions.
Trading in securities as a principal for public resale.
Distributing or underwriting securities, working as per the issuer or holder’s instructions.
Offering investment advice.
Managing client portfolios.
The minimum unimpaired capital required for this category is 10,000,000 MUR or an equivalent amount, along with professional indemnity coverage depending on the volume and risk associated with the business.
Investment Dealer (Excluding Underwriting). This type doesn’t allow licensees to distribute or underwrite securities on behalf of the issuer or holder. The minimum unimpaired capital required is 1,000,000 MUR or an equivalent amount, with the need for professional indemnity coverage, as mentioned earlier.
Investment Dealer – Broker. Authorized to execute client orders, manage portfolios, and offer securities transactions advice, primarily derivatives. The required minimum unimpaired capital is 700,000 MUR or equivalent, with competency standards set for its representatives and officials.
Investment Dealer – Discount Broker. Authorized to execute client orders without providing consultation. The required minimum unimpaired capital is 600,000 MUR or equivalent, with similar competency requirements.
Taxation in Mauritius is another compelling aspect:
No capital gains tax.
No tax on the payment of interest, dividends, or royalties.
No stamp or capital levies.
No inheritance tax.
Corporate tax rate is 3%.
Administrative requirements in Mauritius differ:
Each category needs to submit an audited financial statement within six months of the financial year-end.
Hired employees must possess relevant experience and qualifications that adhere to the Securities Act.
Two resident directors must be employed by the company, and a board meeting must be held in Mauritius.
The company should maintain a registered office in Mauritius, where all statutory documents and accounting records are preserved.
In conclusion, the Mauritius Investment Dealer license offers an exceptional opportunity to kick-start your own business. Don’t hesitate to contact us for application assistance or to purchase an already established one.
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