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Mauritius GBC1 with Collective Investment Scheme(CIS) Managaer License

Mauritius GBC1 with CIS Manager License

Synopsis

Mauritius GBC1 SetupA GBC1 can carry out any business activity such as asset management, credit finance, distribution of financial products, factoring, leasing, pension fund administration, registrar and transfer agencies, treasury management and such other financial business activities as may be permitted by the FSC.

A GBC1 is considered to be a tax resident in Mauritius and enjoys benefits under the extensive DTA network of Mauritius. Income is taxable at a maximum effective rate of 3%. However, a GBC1 cannot transact with Mauritian residents unless permission is obtained from the FSC. A GBC1 is generally used when overseas income is predominantly in the form of dividends, royalties, interest and capital gains, when DTA benefits are needed and it is necessary to have a physical presence and show substance in Mauritius for tax reasons.

The Securities Act 2005 and rules & regulations made under it allow for Fund or CIS Manager Companies to be set up and licensed in Mauritius. These are particularly beneficial for Investment Houses who manage Offshore Funds or Fund sponsors who have Offshore Funds set up worldwide. Mauritius has the advantage of having a modern and flexible securities law, it issues clear Fund Manager licenses within a reasonable time, requires reasonable minimum capital requirement, charges low license fees and has a low tax rate.

Mauritius is one of the best place to save on costs for Investment Houses and Fund sponsors and at the same time enjoy the array of fund administrators, service providers and fund lawyers in the country. A CIS Manager is authorised under the Securities Act to carry out the following activities for the management of a Collective Investment Scheme including:

  • all administrative services required by the scheme
  • provision of registrar and transfer facilities
  • distribution of the securities of the scheme
  • maintaining accounting records of the scheme
  • giving investment advice in relation to the scheme
  • managing the portfolio of the scheme

Global Business Companies - Category1 with CIS Manager License

Type of License Required: The company must be registered as a GBC1 to be eligible

Shareholders: The company can be wholly owned by 1 shareholder. Bearer shares are not allowed. Details of the shareholders must be reported to the Companies Registry and to the Financial Services Commission.

Directors: A company shall have at least one director who shall be ordinarily resident in Mauritius.Corporate directors are not permitted. A director is required to give his consent to act as director by filing form 7 with the Registrar of Companies. It is important to note that if the company wishes to access the taxation treaties then 2 Mauritius resident directors, who are approved by the Financial Services Commission, must be appointed.

Officers/Secretary: A qualified resident company secretary must be appointed.

Staff Qualification: Staff employed must have relevant experience and qualification as required under the Securities Act.

Minimum Capital Required: A CIS Manager needs to have a minimum capital fully paid. MUR 1,000,000 –circa USD 31,000.

Timescale: Incorporation will take 2- 3 weeks.

Insurance Cover Required:A CIS Manager is required to subscribe to an insurance policy against the following risks:

  • fraudulent activities of employees
  • fraudulent instructions
  • losses arising from the malicious or fraudulent corruption of electronic data or electronic transactions
  • legal liability to third parties arising from breaches of professional duty.

Taxation:Maximum of 3% on profits.

Financial Statements Filing:A CIS manager shall file with the Commission interim financial statements prepared in accordance with IFRS within 45 days after the closing date of each quarter.

Every CIS manager shall, within 90 days of its balance sheet date, file with the Commission an annual report which shall include audited financial statements prepared in accordance with IFRS and audited in accordance with the International Standards on Auditing.

Company Renewal:Renewals for Mauritius GB1 Companies to be done before 30th of June irrespective of the date of incorporation. In case of late renewal, government and service charges shall be applicable for late payment of it’s annual license.

Requirements:
KYC Documents for individual Director/Shareholder

  • KYC of Directors/Shareholders/Ultimate Beneficial Owners
  • Detailed Business Plan
  • Details of the arrangements to be put in place with respect to the day-to-day administration and management
  • Draft manual of internal control and compliance procedures
  • Details of professional indemnity insurance cover
  • Draft Investment Management Agreement
  • Copy of any other material contract agreements to be entered between the applicant and other party
  • Details of measures to be put in place with regards to infrastructure, security and safety of securities/assets.
  • Details of arrangements to ensure confidentiality, security and reliability of client information
  • Copy of any promotional materials to be used in connection with the proposed business of the applicant
  • Complaints handling process in the course of conducting its business
  • Evidence of the source of capital/fund to be contributed to the company (whether proprietary or non-proprietary of others)
  • The directors, shareholders and officers of the applicant may be required to submit a morality certificate

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.