Investment brokerage license in Mauritius in 2022
Mauritius has been licensing brokerage companies since 2005. Among its advantages are flexible laws, quick issuance of license, stable economic and political situation, low tax rate - from 3 to 15%.
Advantages of Mauritius for a brokerage license
- Rapidly growing economy;
- Low taxes;
- Absence of currency control;
- Is in white list of EU;
- Developed banking sphere;
- Ability to work with different currencies;
- Strict confidentiality;
- Foreign brokerage firms recognize licensing of Mauritius, so they are easy to meet;
- The state has signed an anti-money laundering, anti-terrorist financing agreement, so there are no claims from international structures;
- English and French are the business languages;
- There is a two-hour difference with Central Europe, so it is easy to interact with European brokerage companies.
What a broker licensed on the island can do
It is important to know that brokerage in Mauritius has restrictions. The company cannot work with such popular pairs as EUR/USD, USD/MUR, GBP/USD, but with some currencies it is possible. It is also impossible to use the MetaTrader platform.
The limitations of brokers are not discouraging because they can:
- be an intermediary in transactions that involve securities;
- sell securities as a principal for the purpose of reselling them;
- sell or underwrite securities on behalf of the issuer or holder;
- handle client's portfolios.
Regulation of brokering in Mauritius
The work of a broker in Mauritius is regulated by 3 laws:
- The Financial Services Act;
- Insurance Act;
- Securities Act.
- Types of licensing available in Mauritius
Mauritius issues several types of licenses:
- Full-service dealer's license;
- Brokerage License;
- Discount Brokerage License;
- Unlimited and limited brokerage licenses.
Requirements for broker licensing
To become a broker, you must apply for an investment dealer's license, a type of "brokerage" license. The Financial Services Commission (FSC) is responsible for issuing it. It thoroughly checks the applicant, and will not give approval until it is satisfied that the applicant meets all the requirements.
Among them are the following:
- The business must be incorporated in Mauritius;
- There must be a physical office on the island with at least 1 employee, e.g. a secretary;
- Open a bank account;
- Adopt a charter;
- Minimum number of directors and shareholders is 2 each;
- Must be regional director, no local shareholder required;
- Provide resumes for all persons involved in the management of the company;
- Provide certificates that verify they have no criminal record;
- Must have the amount of minimum unimpaired capital required by the regulator. If the level falls below this, you must immediately inform the FSC;
- Develop internal rules against fraud, money laundering, etc;
- Provide a detailed business plan, including target market, financing methods, forecast for the next three years, etc;
- An important requirement for applicants for a brokerage license is the registration of a Global Business Company. This is the name of the first category 1 company type, which is convenient to use to provide financial services.
Broker licensing in Mauritius takes from 5 to 8 months after submission of all certificates. This period includes the registration of the company.
How to get licensed in Mauritius
To obtain a broker's license in Mauritius, contact IT-OFFSHORE specialists.