Setting up your Foreign Investment Dealer Licence in Mauritius
Contributed by Atrium Legal Lab
26 March, 2020
Become an own brokerage institute and offer managed accounts, self-trading accounts for customers and enable trading activities in CFDS, FX, Commodities, Shares, Bonds, and others.
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With leverage restrictions on the rise throughout Europe and major regulatory changes underway in Australia, both established and new forex brokers alike are drawing their attention to Mauritius.
Greater flexibility in leverage, competitive capital requirements, and tax optimization are just a few reasons Mauritius has grown in popularity over the past few years. If your forex broker is interested in applying for a license in Mauritius, Atrium Legal Lab has the necessary experience and industry knowledge to help you along each step of the process.
Mauritius Foreign Investment Dealer Brokers
License and Capital Requirements
There are basically five categories of Investment Dealers under the Securities Act; however, the most commonly used for its wide range of business activities and smaller capital requirements, and the most suitable and recommended license for Forex Trade is the Investment Dealer Full Service License, excluding underwriting, duly authorized to execute orders for clients, to manage portfolios of clients and to give advice on securities transactions to clients.
Full-Service Dealer without Underwriting Authorised Activities
Act as an intermediary in the execution of securities transactions for clients;
An Investment Dealer (Full-Service Dealer excluding Underwriting) is authorised to conduct the following activities:
- act as an intermediary in the execution of securities transactions for clients;
- trade in securities as principal with the intention of reselling these securities to the public;
- give investment advice which is ancillary to the normal course of his business activities; and
- manage portfolios of clients.
Minimum Capital requirement
Excluding Underwriting - Company all times to show minimum capital requirement at least MUR 1,000,000 equivalent to approx. USD27,000
- Corporate vehicle permitted: Category 1 Global Business Company
- Local physical office: Yes, office premises in Mauritius
- Capital requirement: Each category of Investment Dealer needs to have a minimum capital.
- Directors and Shareholders: Min 2 resident directors with board meetings held in Mauritius; Min 1 shareholder, no nationality restrictions
- Regulating Authority: Mauritius Financial Services Commission (FSA)
- Service Providers Required: Yes
- Time Frame: 2 - 3 months
- Financial Statements Filing: All categories are required to file audited financial statements within 6 months of financial year end.
- Staff Qualification: Staff employed must have relevant experience and qualification as required under the Securities Act Minimum Capital Required
- Accounting requirements: Quarterly should be done from Mauritius, local auditor is a must
- Tax Treatment: The Mauritius GBC1 is set up under the Companies Act 2001 and licensed under the Financial Services Act 2007 - so a 3% tax will apply to your business what is very low compared to FX entities to be registered in Europe or South East Asia. A Mauritius GBC1 is considered as a Mauritius tax resident company (and therefore have access to the double tax treaties of Mauritius) if its management and control is exercised from Mauritius (what we will arrange in our setup package).
Professional Expertise for your Financial Business
Should you have any question or matter you would like to discuss or clarify with us or should you like to receive further Information about our application services and fees, our Business Development Managers Team will be ready to guide and assist you!
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