Forex Operations Licensing in Mauritius

Mauritius – financial space respected among island nations in the Indian Ocean. The Mauritius market has become one of the fastest growing in the world due to its efficiency, innovation and wide range of offshore services. Therefore, more and more investors are choosing this place, taking advantage of the favorable tax system and flexible rules that make Forex operations licensing in Mauritius quick and understandable.

Companies registered in offshore jurisdictions have general legal capacity and can conduct any activity that is not prohibited by law and does not require a special license. Conducting activities related to financial markets (forex, derivatives, securities, etc.) in most of these countries requires a special permit/license. Obtaining an offshore license from the country of registration of the company is required not only for direct participants in these markets, but also for the provision of professional intermediary services (financial intermediation, brokerage, professional advice, etc.). It is illegal for a company to operate without a license and subject to liability under local law.

Each type of financial license has its own requirements, and the list fixed in the regulations is not exhaustive. The Commission in each particular state, at its discretion, may request any other documents. That is why it is important to have the practical knowledge that the specialists of our company have in order to initially prepare the most complete and correctly executed set of documents in order to increase the chances of obtaining a license. When registering a company with a license, it is necessary to take into account the requirements for the type of registered company, the size of the authorized capital, the submission of further reports to state bodies, compliance with other conditions so that after the successful receipt of the license, it will not be revoked, etc.

Jurisdiction Advantages

• Low corporate tax of 3%.
• Western standards in the legal system.
• The jurisdiction is whitelisted internationally.
• Advanced banking infrastructure.
• Mauritius is a member of the ESAAMLG.
• Stable political system and sustainable economic growth.
• Dynamic economy.
• The government has developed a modern and flexible Securities Law.
• Developed infrastructure, high-tech ICT sector.
• Abundant pool of highly qualified specialists.

To register a firm with right to obtain a license, it is mandatory that majority of directors be residents of the Republic of Mauritius. Director must be qualified in finance or banking and have a good professional reputation. For traders, certificates are required as confirmation of their professional qualities. It is possible to combine some positions with one person.

There is a need to submit reports and audit on an annual basis. There is no possibility of using a nominal service. Nominee option is not accepted. Office demands: prerequisite for the establishment of a resident company GBC1 is the presence of a local registered office.

How to Get Forex Approval?

Applicant needs to find questionnaire forms and applications to fill out. Questionnaires apply to all shareholders and directors of the enterprise. It is important to attach notarized copies of documents confirming the career status of the fillers to the official forms.

Gathering the legal package: the Articles of Association of the applicant’s organization, the regulations for compliance with the rules on combating money laundering, an extract from the minutes of the meeting of directors, and so on.

• Appointment of the manager: there must be at least 2 directors with the citizenship of the specified country.
• Transfer of the applicant’s kit to the authorized body.
• Waiting for the results of the review. If, after detailed review, the package is approved, the licensee must establish a firm within the boundaries of the regulator.
• Getting permission.

The additional expenses that the applicant will have to make are also great. Spending concerns not only finances, but also time. Therefore, the applicant will need to personally find a compliance officer, hire employees to develop a business strategy and internal forms of the organization. As a rule, actions are performed jointly with other founders or shareholders; however, a person is needed who is able to clearly and competently prescribe a set of rules of the Charter and company policy. Outsourcing costs include:

• Hiring an analyst to prepare material forecasts.
• Hiring an accountant to conduct an internal audit.
• Hiring specialists who conduct a study on the compliance of the enterprise with the norms and charters of the state and demands of country’s tax service.

Commercial plan should include the following sections and data:

1. A) Objectives and clients: most detailed explanation of activities, its origin (including its legal structure and creation); goals (e.g., business opportunities, market share, objectives, assets under management); target market, key customers, distribution, products and prices; marketing strategy; the service that customers will receive; key dependencies and risks.
2. B) Personnel and management: details of proposed investment strategies, commission and remuneration policies, head-top structure and key personnel; experience of the company’s management in the regulated activities that they intend to carry out; the experience, professional experience and relevant qualifications of each person in a supervised or senior management function and how this will assist them in carrying out their functions; analysis of key risks of employees’ behavior.

FSC regulator has the right to revoke licenses if a brokerage company has been found to be in violation of regulations or fraud.

Summarizing the above, several conclusions should be drawn. Firstly, many have a certain opinion about regulators from offshore countries and FSC – a vivid example of such organizations. At the same time, do not forget that Mauritius has long been dubbed an excellent business center, and, we must pay tribute – not in vain. Every year the number of brokerage companies in this republic is only growing. Secondly, with regard to this particular regulator, funding is provided through the issuance of licenses to brokerage companies and dealing centers.