Valsen Fiduciaries Funds

Mauritius Specialised CIS Fund

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

About Mauritius Specialised CIS Fund

Specialized Collective Investment Schemes (“Specialized CIS”) are Collective Investment Schemes that invest in real estate, derivatives, commodities or other products authorized by the FSC. A Collective Investment Scheme that wishes to be designated as a Specialized CIS must apply to the FSC to be authorized as such. As part of this process, the FSC will decide which of the Regulations will apply to that Specialized CIS and whether any further terms and conditions should be applied.

Mauritius Specialised 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
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

No

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

No

      • Fund manager requires to be licensed
No
      • Eligible fund manager
Licensed Fund manager
    • Fund administrator
      • Fund administrator required
Yes
      • Local fund administrator required

No

      • Eligible fund administrator
Fit and proper Licensed Fund Administrator
    • External auditor
      • External auditor required
Yes
      • Local external auditor required

Yes

      • Eligible external auditor
Qualified Mauritian auditor who is approved.
  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
USD 100,000
  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 Licence (GBL) (as of 1 January 2019) are liable to tax at the rate of 15%.

GBL will qualify for an exemption of 80% of the specific foreign-source income (e.g. foreign dividend not allowed as deduction in source country, foreign interest income, foreign-source income derived by a Collective Investment Scheme [CIS], closed end funds, CIS manager, CIS administrator, investment adviser or asset manager licensed or approved by the FSC.

No credit shall 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 Specialised CIS Fund:

  • Ease and speed of establishment
  • Flexible structuring of the entity
  • Favourable compliance restrictions
  • Friendly regulatory environment
  • No exchange controls restrictions