Business Licences in Mauritius
Specific business activities in Mauritius are classified as ‘Regulated Activities’ that require clearance by specific licensing authorities. The licensing framework in sectors provides clear sets of licensing criteria and requirements within a well-defined and consolidated framework maintained by the Economic Development Board.
Sectors and business activities that require operating licences from relevant authorities in Mauritius are as follows:
Sovereign Mauritius offers full support with obtaining business licences for regulated activities in Mauritius. If your proposed business requires a licence, our team can handle the full application process, documentation and regulatory liaison, ensuring a smooth set-up and ongoing compliance.
Special Licences in Mauritius
The Financial Services Commission (FSC) Mauritius is the regulator for the non-banking financial services and global business. It is mandated under the Financial Services Act 2007 to license, regulate, monitor and supervise the conduct of business activities in these sectors.
This sector has grown significantly to become one of the main pillars of the Mauritian economy, offering sophisticated products, services and activities that have been instrumental in driving investments and growth.
Mauritius offers an effective legal system, a robust and compliant regulatory system, a highly competitive tax environment and an extensive network of double tax agreements. It also offers a ready supply of skilled and educated staff, a strong cohort of professionals services providers and some of the biggest and most reputable international banks. Mauritius permits bank accounts to be kept in all major currencies and does not have any exchange control regulations.
All these factors reinforce Mauritius’ position as a leading investment destination and domicile of choice for structuring cross border investment into Africa and Asia.
The Financial Services (Consolidated Licensing and Fees) Rules 2008 set out the licensing framework that provides for a codified list of financial services and financial business activities licensable by the FSC.
They are referred to as ‘specialised licences’ in Mauritius because they allow companies to carry out non-standard or advanced financial activities that go beyond traditional banking or general commercial operations.
These licences are tailored for specific functions within the financial services industry and typically require expertise, regulatory oversight and compliance with targeted rules. The scope is wide-ranging, covering Investment, Insurance and Pensions, Securities, Global Business and Non-Bank Financial Institutions (NBFIs). The main activities include:
In determining the fee structure, the FSC considers the level of development of the different sectors under its supervision, as well as the need to sustain the overall competitiveness of Mauritius as an international financial centre.
Tax benefits for Special Licences in Mauritius
The Mauritius tax framework is underpinned by a transparent system that provides for a level playing field and a competitive tax regime for businesses and individuals at a single rate of 15%. In addition, there is no capital gains tax or withholding tax on dividends and interest in Mauritius. This regime has successfully generated substantial economic activities across all sectors of the Mauritian economy.
An application for specialised non-banking financial services licences using a Global Business Licence (GBL) further entitles the applicant to take advantage of the preferential Global Business Company (GBC) partial tax exemption under which 80% of gross income is exempted from taxation.
The balance is designated as ‘taxable income’ and is subject to the standard tax rate of 15%, which reduces the effective income tax rate for GBCs to 3%. This partial tax exemption makes conducting these types of business in Mauritius even more commercially attractive.
In addition, the government has introduced a range of corporate and personal tax incentives to help develop and build capacity for the Mauritius IFC. Tax holidays of five to eight years in length are currently available in respect of the following special licences:
Qualifying conditions for Special Licences in Mauritius
To maintain a valid GBL and qualify for the exemptions, GBCs will have to satisfy the economic substance requirements by ensuring that, at all times, they are managed and controlled from Mauritius, they are administered by a management company in Mauritius, and their core income-generating activities (CIGA) are being carried out in or from Mauritius, by:
- Employing, either directly or indirectly, a reasonable number of suitably qualified persons.
- Incurring a minimum level of expenditure that is proportionate to the level of their activities.
In determining whether a GBC is managed and controlled from Mauritius, the FSC will consider whether the GBC:
- Maintains, at all times, its principal bank account in Mauritius.
- Provides for meetings of directors to include at least two directors from Mauritius.
- Keeps and maintains, at all times, its accounting records at its registered office in Mauritius;
- Prepares its statutory financial statements and causes such financial statements to be audited in Mauritius; and
- Has at least two directors, resident in Mauritius, of sufficient calibre to exercise independence of mind and judgment.
Obtaining 'Specialised Licences' in Mauritius
Authorised Management Companies (MCs), such as Sovereign Mauritius, are service providers that act as intermediaries between their clients and the FSC. MCs are licensed by the FSC under Section 77 of the FSA to set up, manage and provide nominee and other services to a corporation that carries on or intends to carry on any global business.
Beyond the application phase we also provide a full suite of services to provide ongoing support to your business. Anything from opening the corporate bank account, to accounting services and payroll, to specialist insurance services. We provide administration and management of these licences to ensure that clients maintain full compliance with all corporate and licensing requirements and to ensure that their affairs are properly managed and controlled from their place of incorporation.
Recent examples of non-banking financial services and Global Business lLcence applications in which Sovereign has assisted include:
- Investment Adviser (Unrestricted) Licence – Under section 30 of the Securities Act, licensees are authorised to manage, under a mandate, portfolios of securities and give advice on securities transactions other than corporate finance advisory, through printed materials or any other means. Applications must be made by a corporation under a Global Business Licence and will be granted subject to FSC approval.
- Insurance Brokerage Licence – in most appllcations that Sovereign has been involved with, the Investment Adviser (Unrestricted) Licence has gone hand-in-hand with the Insurance Brokerage Licence. An insurance broker is a person who arranges insurance business with insurers on behalf of prospective policyholders, or as a representative of a policyholder, and includes a reinsurance broker carrying on reinsurance brokering for an insurer.
- Payment Intermediary Services Licence – This licence will be of interest to businesses that wish to operate from Mauritius as an online Payment Service Provider (PSP). Applications must be made by a corporation under a Global Business Licence and will be granted subject to FSC approval. A licence holder can offer merchant online services for accepting electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer, and real-time transfer based on E-banking.
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