Due to its healthy regulations, flexible company law, and securities and trust legislation, Mauritius is regarded as a leading financial hub.
Are you looking to become a brokerage firm and offer managed and self-trading accounts for customers and enable trading activities in CFDs, FX, Shares, Bonds, Commodities, …? Mauritius is the ideal financial center for you.
Mauritius offers the advantage of a modern securities law that is adaptive to several requirements, low corporate tax for a forex company, a reasonable timeframe for license issuance, as well as a competitive minimum capital requirement.
As a new forex broker looking to enter the foreign exchange market, applying for a license is mandatory. Outlined next is what you need to know about getting a forex license in Mauritius.
Mauritius investment dealer brokers license
According to Mauritius Securities Act, there are a few classifications of Mauritius Forex license. Each classification has its authorized activities, minimum paid-up capital, and government fees. However, the most generally used for its vast range of business activities and smaller capital requirements is the Mauritius “Investment Dealer License”.
The Mauritius Investment Dealer Licence, administered by the FSC (Mauritius Financial Services Commission), authorizes the holder to establish a trading platform in Mauritius and trade securities and related on behalf of clients.
The Mauritius Investment Dealer License is duly authorized to execute orders for clients, manage clients’ portfolios and give advice on securities transactions to clients.
Advantages of the Mauritius forex license
Being the product of such a well-regulated financial system, the Mauritius forex license carries the same reputability and transparency associated with the Mauritius financial system. In addition to this is a low corporate tax rate of 3%, privacy and asset protection, and favorable compliance restrictions.
Full-Service dealer authorised activities
A Mauritius Full Service Dealer license is the most ideal option for international clients, as it allows companies to conduct the full suite of activities.
The Mauritius Full Service Dealer license act as an intermediary in the execution of securities transactions for clients
The Mauritius Full Service Dealer license also allows the licensee
- to trade in securities as a principal with the expectation of reselling these securities to the public,
- to give investment advice that is secondary to the normal course of its business activities,
- to underwrite or distribute securities on behalf of an issuer, and
- to manage clients’ portfolios.
The licensee must have a Professional indemnity cover that differs according to the volume of activities and risk of its business.
Mauritius investment dealer broker license application requirements
- Capital requirement: firms applying for the Mauritius Full Service Dealer excluding underwriting license, must at all times show a minimum capital requirement of at least MUR 1,000,000 or an equivalent amount.
- A Corporate vehicle: firms applying for this license must also have a Category 1 Global Business (GB) Company – GB is a framework available in Mauritius to a resident company that proposes to perform business activities outside Mauritius. A 3% tax will apply to Mauritius Global Business, also Mauritius GB will have access to the double tax treaties of Mauritius.
- Directors & Shareholders: at least two resident directors with board meetings held in Mauritius, and a minimum of one shareholder are required. They can be of any nationality.
- Staff qualification and accounting requirement: the staff employed must have appropriate experience and qualification as required under the Securities Act Minimum Required. Also, quarterly accounting requirements must be done from Mauritius, so a local auditor is compulsory.
The firm is required to file audited financial statements within six months of the financial year’s end. Service providers and Local physical offices are also mandatory
Do you need help to incorporate your Mauritius company, opening your Mauritius corporate bank account, or securing the required licenses ? – Let’s go ahead and contact your Damalion expert now.
