If you want to create a mutual fund in Mauritius and need assistance, our company formation specialists are at your service.
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What category of investment funds is the mutual fund in Mauritius?
Mutual funds are open-ended Collective Investment Schemes (CIS).
What are the main features of a mutual fund in Mauritius?
The following:
- it can be created as a company with legal personality, trust, or other entity without legal personality;
- its purpose is to gather money from investors, which is pooled in a securities portfolio made up of financial or debt instruments, but also real estate or other types of assets, as deemed by the investment manager;
- it has variable capital which relies on the net asset value (NAV) of the fund.
What are the requirements to open a mutual fund in Mauritius?
The following:
- local substance: the fund must have a registered address in Mauritius, at least 2 resident directors, and a local bank account;
- manager: the management of the mutual fund must be ensured by a Mauritius-licensed investment manager;
- officers: a Mauritius mutual fund must have a local auditor and custodian.
What are the legal forms under which I can open a mutual fund in Mauritius?
There are several types of structures that can be used for this purpose, and among them are:
- companies,
- limited partnerships,
- trusts,
- protected cell companies.
Our Mauritius company formation agents can assist with the registration of any of the above-mentioned entities.
How do I register a mutual fund in Mauritius?
The first step is to choose the business form under which it will operate and register it with the Companies House. Then, the company must file for authorization with the Financial Services Commission. The authorization from the FSC depends on whether the fund will operate in Mauritius or outside it.
A mandatory requirement when creating a mutual fund in Mauritius is to appoint a fund manager. There are specific requirements to be met by the fund administrator which can be a management company incorporated under the Financial Services Act.
The management company can be appointed as the secretary of the Mauritius mutual fund.
In the case of funds operating outside Mauritius, a Global Business License must be obtained aside from the authorization that needs to be sought with the FSC.
Are there any minimum capital requirements to open a mutual fund in Mauritius?
No, there are no minimum capital requirements imposed on CIS.
Are there any registration requirements to comply with when opening a mutual fund in Mauritius?
Yes, the fund vehicle must be registered with the Companies Registrar in Mauritius.
What are the conditions imposed to the fund manager?
The FSC requires the fund manager to meet the following requirements:
- be a registered legal entity that has a main activity of fund management;
- the directors, officers, and owners must meet the fit and proper criteria;
- the staff of the company must be qualified for the services the entity provides;
- to have a minimum capital of 1 million MUR or the equivalent in another currency;
- to be licensed by the FSC;
- to have in place specific rules of internal control and an ethics code.
Do licensing requirements apply when opening a mutual fund in Mauritius?
Yes. The license is issued by the Financial Services Commission (FSC).
What are the documents required to obtain an FSC license for a Mauritius mutual fund?
The following:
- the offering documents;
- the private placement documents;
- the investment strategy;
- the governance paperwork;
- risk management and internal compliance procedures;
- Anti-Money Laundering and Know-Your-Client policies;
- the investor onboarding documents;
- the custody agreements;
- internal reporting procedures.
With respect to the documents that need to be prepared when it comes to the incorporation of the entity under which a mutual fund in Mauritius can operate, the following are needed:
- the Articles of Association in the case of a company registered under the Company Law;
- the limited partnership agreement and the investment management contract for a limited partnership;
- the trust deed and the subscription agreement in case of the creation of a Mauritius trust.
How long does it take to open a mutual fund in Mauritius?
The creation of an investment fund in Mauritius takes around 2 months when it comes to authorization with the Financial Services Commission.
If you want to open a mutual fund in Mauritius, please contact us.
