There is a growing demand among the global broker community for Mauritius investment dealer licenses. This type of license is valid under the Mauritius Securities Act 2005 and the 2007 Securities Licensing Regulations. Applying for an investment dealer license it is also required to have a GBL license.
Mauritius offers high quality services and the presence of only highly qualified professionals in keeping with its reputation as an international financial center.
Investment dealer licenses issued by the Mauritius Financial Services Commission are gaining popularity among brokerage house representatives globally.
The law regulating the field of financial services, which was adopted in 2007, significantly simplified the regulation procedure and consolidated the legislative framework of the global business environment. Thus, the 2005 Law and 2007 Regulations remain the primary regulatory framework that governs the regulations and sets the parameters for all operations.
There are 3 types of investment dealers that are issued in accordance with the provisions of the Law governing securities transactions, in particular the following:
- Investment dealer, which assumes a full range of services.
(a) in particular, underwriting has powers to:
- be an intermediary in transactions related to securities;
- to trade securities in the role of a principal with the aim of reselling them to the public;
- distribute or sign securities, acting on behalf of and at the direction of the issuer or holder;
- provide investment advice;
- manage client portfolios.
The amount of the minimum unimpaired capital that must be declared is 10,000,000 MUR or an equivalent amount. In addition, professional reimbursement coverage is required, depending on the volume of activities performed and risks directly related to the business.
(b) The exclusion of underwriting does not entitle the licensee to distribute or sign securities on behalf of and at the direction of the holder or issuer.
The amount of the minimum unimpaired capital that must be declared is 1,000,000 MUR or an equivalent amount. In addition, professional reimbursement coverage is required, depending on the volume of activities performed and risks directly related to the business.
- Investment dealer – broker.
The authority to execute orders from clients, manage their portfolios and advise clients on transactions in securities – primarily derivatives.
The amount of the minimum unimpaired capital that must be declared is 700,000 MUR or an equivalent amount. In addition, the capital must meet the minimum requirements for the competence of its representatives and officials.
- Investment dealer – discount broker.
The right to fulfill orders from customers, but not to consult.
The amount of the minimum unimpaired capital that must be declared is MUR 600,000 or an equivalent amount. In addition, the capital must meet the minimum requirements for the competence of its representatives and officials.
Important indicator is taxation in Mauritius. Find below advantages of it.
- There is no capital gains tax.
- Tax levy on payment of interest, dividends or royalties – none.
- Stamp or capital levies – none.
- No inheritance tax.
- The corporate tax rate is 3%.
Administrative base in Mauritius is different from another one.
- Each of the categories is required to file an audited financial statement within a period of six months from the end of the financial year.
- Employees who are hired must have experience in the relevant field and the necessary qualifications that comply with the requirements of the Securities Act.
- The company must hire two resident directors. A council meeting must be organized and held in Mauritius.
- The company must have an office that would be registered in the territory of Mauritius. Statutory documents and accounting records are kept in the office.
In conclusion, we would like to add that Investment Dealer license is one of the best options for starting your own business. Do not hesitate to contact us for applying for it or purchasing a ready-made one.
For details: a.shevchuk@eternitylaw.com / Telegram @anastasiiaeternitylaw
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