Tag Archive for: Mauritius License

Cultivate Wealth with Mauritius Forex License: Low Tax, Privacy, and Asset Protection

Preface: Fiozna Consulting specializes in assisting international clients with the establishment of a Mauritius Investment Dealer company. Our comprehensive services encompass obtaining the necessary licenses, including the Global Business Corporations (GBC) license and the Investment dealer license from the Financial Services Commission (FSC) Mauritius. These licenses enable our clients to engage in legal forex and security transactions in Mauritius. Under the Mauritius Securities Act 2005, there are three categories of Mauritius Forex Licenses, each with specific authorized activities, minimum capital requirements, and government fees.

Types of Mauritius Forex License

Full Service Dealer:

  1. Allows intermediary roles in securities transactions for clients.
  2. Permits trading in securities as principal with the intention of resale to the public.
  3. Provides investment advice as an ancillary service.
  4. Allows portfolio management for clients.

For Full-Service Dealer (excluding underwriting), the minimum stated capital is US$25,000, with a registration fee of US$750 and an annual fee of US$2,500. Additionally, Professional Indemnity insurance is required based on business volume and risk.

Full-Service Dealer with underwriting requires a higher minimum capital of approximately US$250,000, a registration fee of US$3,000, and an annual fee of US$9,000.

Broker:

  • Allows execution of orders for customers.
  • Permits portfolio management for customers.
  • Provides advice on securities transactions to customers.

The minimum stated capital for a Broker is approximately US$17,000, with a registration fee of US$500 and an annual fee of US$2,000.

Discount Broker:

  • Permits execution of orders for customers without providing advice.

The minimum stated capital for a Discount Broker is approximately US$15,000, with a registration fee of US$250 and an annual fee of US$1,500.

Benefits of the Mauritius Forex License

  1. Low Corporate Tax Rate: Mauritius offers a 3% corporate tax rate, with an 80% tax exemption for firms that meet certain domestic presence requirements.
  2. Double Taxation Avoidance Agreements (DTAAs): Mauritius has DTAA agreements with 46 countries, preventing double taxation of earnings.
  3. Privacy and Asset Protection: GBCs in Mauritius provide owners high levels of privacy and asset protection.
  4. Favorable Business Climate: Mauritius ranks high in the World Bank’s Ease of Doing Business Index and is known for its low corruption levels.
  5. Established Banking Infrastructure: Many international banks, including HSBC, Barclays, and Standard Chartered, operate in Mauritius, facilitating foreign investment.

Other advantages of the Mauritius Forex License

The license is reputable and transparent, aligned with international financial standards.

It offers a cost-effective and faster application process compared to other jurisdictions.

How to Register a Mauritius Investment Dealer Company with Fiozna Consulting

  • Requirements for the Global Business License:
  1. All applications must go through a Management Company (MC).
  2. Due Diligence and Know Your Customer checks are conducted.
  3. A GBC requires a minimum of two directors, with financial and bank records maintained in Mauritius.
  4. Submit Form B, Checklist Form A, and a declaration of accuracy.
  5. Notarized copies of passports, proof of address, and criminal records.
  6. Educational certificates, character reference letters, and bank references.
  7. Detailed Curriculum Vitae, business plan, and relevant manuals.

The license can be obtained within 4 working days if the application is complete and satisfactory.

  • Opening an Operational Bank Account:

Fiozna Consulting leverages its network of international banks to open a corporate bank account for operational purposes.

  • Attaining the Forex License:

Submit a detailed business plan, organizational structure, and financial forecasts.

Appoint necessary roles, including investment dealers, compliance officers, and auditors.

  • Final Steps:
  1. Open a separate client account.
  2. Ensure compliance with financial reporting and taxation procedures.
  3. File annual tax returns with the Mauritius Revenue Authority and prepare audited financial statements.

Conclusion:

Fiozna Consulting has a wealth of experience in guiding clients through setting up financial services businesses in Mauritius. Our team manages the entire setup, from company incorporation to license acquisition, ensuring compliance with regulatory requirements.