The Securities Act 2005 coupled with the Securities (licensing) Rules 2007 remain the main legal framework governing the provisions and setting the parameters within which a GBC 1 with an Investment Dealer license can operate. Application for Investment Dealer license must be made under a Category 1 Global Business Company and license is granted subject to the approval of the Financial Services Commission.
Key Features
An investment dealer in a broad sense acts as an intermediary in the execution of securities transactions for its client. Given that such activity has several specialized functions, each type of activity has been brought under separate licence in Mauritius where each category of licence has its own scope of activity.
License categories:
- Full Service Dealer (Including Underwriting)
Such licence allows the licensee to trade in securities as principal with the intention of reselling these securities to the public, to underwrite or distribute securities on behalf of an issuer or a holder, to give investment advice which is ancillary to the normal course of its business activities and to manage portfolio of clients.
Minimum unimpaired stated capital of MUR 10 million or an equivalent amount in a major currency and shall have a Professional Indemnity cover that varies with the volume of activities and risk of its business.
- Full Service Dealer (Excluding Underwriting)
As opposed to the Full Service Dealer Including underwriting, this category of licence does not allow the licensee to underwrite or distribute securities on behalf of an issuer or a holder.
Minimum unimpaired stated capital of MUR1 million at all times or equivalent amount in a major currency. The licensee is also requested to have a Professional Indemnity cover that varies with the volume of activities and risk of its business.
- Investment Dealer – Broker
An Investment Dealer – Broker licence allows the licensee to execute orders for its clients, to manage portfolio of clients and to give advice on securities transactions to its clients.
Minimum unimpaired stated capital of MUR 700,000 or equivalent in any major transaction and it should also comply with the minimum competency standard requirements for its representatives and officers.
Legal Requirements
|
Requirements |
Description |
|
General |
|
|
Category 1 Global Business Company |
|
No |
|
Share capital or equivalent |
|
|
· Minimum paid up capital |
None |
|
Directors |
|
|
2 |
|
Yes |
|
Yes |
|
Shareholders |
|
|
2 |
|
Yes |
|
No |
|
Service Providers Required |
|
|
Yes |
Tax Treatment
- A GBC 1 benefits from a deemed tax credit so that it will end up paying a maximum effective tax rate of 3% on its tradable profits;
- There is no capital gains tax and no withholding tax on dividends, interest and royalties paid by a GBC 1 company;
- As soon as a GBC 1 is qualified as tax resident in Mauritius, it will benefit from the tax treaty network;
- There is no withholding tax on dividends, capital gains and interests.
Duration to Set Up
Around 3 months
Distinctive Benefits of Licence
- Ease and speed of establishment
- Flexible structuring of the entity
- Favourable compliance restrictions
- Friendly regulatory environment
The Valsen Advantage
- End to end comprehensive service
- Speedy and efficient service
- Expert advice on structuring options
- Dedicated ongoing compliance support
- Extensive network pool of service providers