FUND SERVICE
The use of Mauritius as a fund domicile has known a recent surge in the wake of new funds and securities regulations bringing added confidence and impetus to Mauritius as a favoured jurisdiction for setting-up global funds. The combination of the relative low rate of taxation together with the access to the vast network of double taxation avoidance treaties, make Mauritius one of the preferred routes for foreign investment to emerging economies such as India and China, as well as countries on the African continent.
Legal and Regulatory Framework
A Global Fund may be set up as a company, a trust, a protected cell company or a limited partnership. A Global Fund that wishes to avail of the benefits of Double Taxation Agreements (DTA) will be specifically structured as a Global Business Category 1 (GBC1) Fund whereas those that propose to conduct investment solely in countries which do not have a DTA with Mauritius will be structured as a Special Purpose Fund. A Special Purpose Fund will be exempt from tax in Mauritius.
-
There are a number of different categories of investment funds which are regulated in Mauritius, namely:
Collective Investment Scheme (“CIS”)
A Collective Investment Scheme is a scheme:
whose sole purpose is the collective investment of funds in a portfolio of securities, or other financial assets, real property or non-financial assets as may be approved by the Financial Services Commission (“FSC”) - whose operation is based on the principle of diversification of risk
- that has the obligation, on request of the holder of the securities, to redeem them at their net assets value, less commission or fees and
-
A closed-end fund is a CIS that has a fixed number of shares. It is usually the favoured type of vehicle for Private Equity Funds. Close Ended Funds are exempted from a number of requirements normally applicable to Public CIS
- A PCIS offers its shares solely to sophisticated investors or as private placements. The PCIS is exempted from most ongoing obligations/ regulations generally imposed on Public CIS
-
A Specialised Collective Investment Scheme is restricted to investments in real estate, derivatives, commodities or any other product authorised by the FSC. In advance of applying for such a Scheme, prior approval has to be obtained from the FSC as to whether or not such a scheme would be authorised
- An Expert Fund is a fund which is only available to ‘Expert Investors’. An Expert Investor is an investor who makes an initial investment for his own account of no less than $100,000. The Expert Fund is exempt from most on-going obligations/regulations generally imposed on Public CIS