Mauritius Funds

Why Mauritius Funds?

The use of Mauritius as a fund domicile has taken a new turn with the coming of the funds and securities regulations which have made Mauritius a favoured jurisdiction. The combination of relatively low rate of taxation together with the access to the vast network of double taxation avoidance treaties and an array of non-tax benefits 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.

Types of Mauritius Funds

1. A Collective Investment Scheme; and
2. A Closed-Ended Fund

1. A Collective Investment Scheme (CIS)

A CIS is defined under the Securities Act as one:

(i) 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 FSC.
(ii) whose operation is based on diversification of risk;
(iii) that has the obligation, on request of the holder of securities, to redeem them at their net asset value less commission of fees, and
(iv) where the participants do not have day to day control over the management of the assets

The Four CIS types

  • Professional CIS

  • • Exempt from most ongoing obligations provided that the shares acquired are not resold to the public and is not listed for trading on a securities exchange.
    • Must notify FSC of its offering a minimum of 15 days before the offering is made and must file a copy of the prospectus at the same time.
    • At conclusion of the offering, it must advise FSC of the total amount and value of shares sold.
    • Must give notice to the FSC of any bankruptcy or winding up petitions served on the CIS Manager/custodian and steps to protect interest of participants.
    • Shares acquired by participants are not to be resold to the public and participants are to be apprised of this restriction at the time of subscription.
    • Cannot be listed for trading on a securities exchange.
    • Minimum subscription amount shall be at least USD 200,000.

  • Expert Fund

  • A Fund which is only available to expert investors. An expert investor is an investor who makes an initial investment, from their own account, of not less than USD100,000 or a sophisticated investor
    • May appoint a licensed CIS in Mauritius or a manager with licence granted in a jurisdiction having comparable regulation for investor protection.
    • Exempted from certain obligations under the CIS Regulations subject to authorisation from the FSC

  • Domestic Retail Fund

  • • Target retail investors.
    • It is subject to Investment Restrictions and Practices under CIS Regulations
    • minimum amount of subscriptions of at least 5 per cent of the total amount to be raised from investors.

  • Global Schemes

  • • Authorised to carry out the activities of a CIS but does not fall into specific categories of a Professional CIS or Expert Fund.
    • Can appoint and retain a CIS Manager established in a foreign jurisdiction subject to the approval of the FSC.
    • Most of the CIS Regulations apply to Global Schemes.

2. A Closed Ended Fund

A CEF is one whose object is to invest in funds in which the subscriber is asked:

The Securities Act requires the Fund to have a:

(i) to purchase or subscribe to securities that have never been issued;
(ii) to enter into an agreement for the underwriting of securities;
(iii) to purchase securities underwritten;
(iv) to distribute securities previously offered without a prospectus; or
(v) to purchase securities, other than securities acquired on a securities exchange in normal market operations, previously issued and held by a person, including an issuer, and where the offer or distribution is made from Mauritius, or received in Mauritius.

The Two CEF Types:

  • Professional CIS

  • • cannot be a Reporting Issuer.
    • shares acquired by participants are not to be resold to the public and participants are to be apprised of this restriction at the time of subscription.
    • cannot be listed on a trading securities exchange.
    • who has less than 100 shareholders.
    • exempted from certain obligations under the CIS Regulations subject to authorisation from the FSC.
    • No minimum subscription amount.

  • Reporting Issuer

  • A Reporting Issuer is an issuer:
    • who by way of a prospectus, has made an offer of securities either before or after the commencement of the SA 2005;
    • who has made a takeover offer by way of an exchange of securities or similar procedure
    • whose securities are listed on a securities exchange in Mauritius; or
    • who has not less than 100 shareholders.
    • exempted from some of the obligations under the CIS Regulations subject to authorisation from the FSC.
    • subject to disclosure requirements as per the SA 2005, CIS Regulations, Securities (Disclosure Obligations of Reporting Issuers) Rules 2007.
    • No minimum subscription amount.

Tax Benefits

• A substantial network treaties & double taxation avoidance agreement in place
• Foreign source income derived by a Collective Investment Scheme (CIS) & Closed End Funds benefit from 80% tax exemption, subject to meeting the substance requirements
• Low tax rates
• No withholding tax on remittance of branch profits
• No withholding tax on payments of interest and royalties
• No withholding tax on distribution to shareholders/investors
• No capital gains tax, estate duty, inheritance taxes
• No thin capitalization rule
• No controlled foreign corporation (CFC) rules
• Royalties, interest and service fees payable to foreign reasonable & correspond actual expenses incurred
• No stamp duties, registration duties and levy
• Zero rated VAT for global business transactions

Please click on Fund Administrator Services to have more details of our Fund Administration services to Mauritius Funds and CIS Manager / Fund Manager Companies to have a brief on Mauritius CIS Manager / Fund Manager licences and advantages.

If you require a Mauritius Fund, please call our Expert Team who can assist you with your requirements. You are invited to call us at (230) 245 6703. You may send your enquiries by email: or by fax at (230) 245 6704.