Valsen Fiduciaries Funds

Mauritius Expert CIS Fund

Collective Investment Schemes are regulated by The Financial Services Commission (FSC). A Mauritius Expert CIS Fund is established by the Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008.

About Mauritius Expert CIS Fund

A CIS may apply to the Commission for authorisation as an expert fund. An expert fund shall only be available to expert investors, and an expert investor means:

  • an investor who makes an initial investment, for his own account, of not less than USD100,000; or
  • a sophisticated investor or any similarly defined investor in any other securities legislation

Mauritius Expert CIS Fund Legal Requirements

Requirements Description
  1. Applicable legislation
Securities (Collective Investment Schemes and Closed-end Funds) Regulations 2008
  1. Supervising Authority

Financial Services Commission of Mauritius

  1. Corporate vehicle permitted
The entity making the application is a Mauritius GBC 1 holding a Global Business Category One License (GBL1).
  1. Share capital or equivalent
    • Minimum subscription

USD 100,000

    • Minimum investors

None

  1. Directors / Partners / Trustees
    • Minimum number

2

    • Corporate Directors / Partners / Trustees allowed

Yes

    • Local Directors / Partners / Trustees required

2

  1. Fund functionaries required
    • Custodian
      • Custodian required
Yes
      • Local custodian required

Yes

      • Eligible custodian

A custodian shall be a bank, a trust company which is subsidiary of a bank or a trustee of a trust and which shall have and maintain a minimum stated unimpaired capital of Mauritian rupees ten million or an equivalent amount.

    • Fund manager / Investment manager
      • Fund manager required
Yes
      • Local fund manager required

No

      • Fund manager requires to be licensed

Yes

      • Eligible fund manager

Fund manager must be licensed and shall be a company which is incorporated and have its place of business in Mauritius;

Or,

A licence issued by a regulatory body in a jurisdiction having comparable regulation as Mauritius for investor protection.

    • Fund administrator
      • Fund administrator required
Yes
      • Local fund administrator required

No

      • Eligible fund administrator

Fund administrator must be licensed and shall be a company which is incorporated and have its place of business in Mauritius;

Or,

A licence issued by a regulatory body in a jurisdiction having comparable regulation as Mauritius for investor protection.

    • External auditor
      • External auditor required
Yes
      • Local external auditor required

Yes

      • Eligible external auditor

Qualified local auditor must be appointed

  1. Asset Requirements
    • Restriction on type of asset class invested

None

    • Asset diversification requirements

None

    • Limitation on size of the fund or total assets under management

None

  1. Local physical office required

No

  1. Prospectus / Offering Memorandum required to be filed

Yes

  1. Eligible for listing

Yes

  1. License fees
 
    • License application fee

USD 1,000

    • Annual license fee

USD 2,500

  1. Estimated license processing duration

3 months

Ongoing Obligations

Requirements Description
Monthly obligations
Office Required
Quarterly obligations
None
Annual obligations
File its audited financial statements and tax return within 12 months from its balance sheet date.
Other obligations
  • Maintain all the conditions set in the license approval letter at all times
  • Maintain 2 resident director in Mauritius at all times
  • The CIS manager where appointed, shall be responsible for ensuring that the provisions of the CIS Regulations applicable to expert funds are complied with
  • Maintain a CIS administrator with a place of business in Mauritius
  • The Board or CIS Manager must on board clients that they are satisfied are expert investor
Tax Obligations and Other Exemptions
Requirements Description
Business Tax

GBC1 companies renamed as Global Business License (GBL) (as of 1 January 2019) are liable to tax at the rate of 15%.

Profits derived from global trading activities are taxed at a reduced rate of 3%.

80% of the foreign-source income derived by a collective investment scheme (CIS), closed-end fund (CEF), CIS manager or CIS administrator is exempted from income tax.

No credit is be allowed on foreign source income where the 80% exemption has been claimed

Tax Residency in Mauritius
A company incorporated in Mauritius shall be treated as non-resident if its place of effective management is situated outside Mauritius, but shall still be required to submit a return of income in Mauritius
Corporate Social Responsibility
Companies may continue to contribute 50% of CSR (instead of 75%) to the MRA provided they receive approval from the National CSR Foundation
Capital Gains Tax
There is no capital gains tax on dividends and interest paid to non-residents.

Benefits of a Mauritius Expert CIS Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favorable compliance restrictions
  • Friendly regulatory environment
  • Favorable tax obligations