Setting Up an Investment Fund in Mauritius — A Gateway for Global Capital

Opening an investment fund in Mauritius has become a strategic move for many international companies seeking to expand in today’s interconnected financial world. The island has earned a strong reputation as a hub for fund registration thanks to its wide network of double taxation treaties and a legal framework aligned with international standards. Establishing a fund here offers clear advantages: access to investors from multiple regions, reduced operational costs, and greater appeal to global partners. Mauritius has built a full-scale financial infrastructure — from established banks and fund administrators to experienced law firms and corporate advisors — making it easy for fund managers to operate efficiently.

In short, Mauritius stands out as a jurisdiction that blends practicality with opportunity — a place where financial institutions can grow internationally while maintaining legal certainty and fiscal efficiency.

How the Legal Side of Fund Registration Works in Mauritius

Setting up an investment fund in Mauritius isn’t just about choosing a good location — it’s about knowing the rules that make the place work. The whole system rests on a few key laws that keep the market fair and predictable.

The Securities Act of 2005 is where it starts. This law explains how investment products can be issued, who’s allowed to sell them, and what must be shown to investors. It’s also what keeps financial reports and audits transparent, so fund managers can’t play with numbers or hide details.

Then comes the Financial Services Act of 2007, the rulebook for all non-bank financial institutions. It gives real authority to the Financial Services Commission (FSC) — the island’s main financial watchdog. The FSC can grant licenses, check how companies are run, appoint independent auditors if needed, and even pause operations when something goes off track. These controls are what make Mauritius respected by international investors rather than just another offshore stopover.

Another key piece is the Companies Act of 2001. It governs how a business is actually built — from registering shareholders and organizing meetings to defining what directors can and can’t do. If you’re planning to open a fund here, this act is your blueprint. It keeps companies accountable and transparent, which matters even more in a global market where trust is currency.

Two more acts give extra freedom to fund creators — the Trusts Act of 2001 and the Limited Partnerships Act of 2011. They allow different ways to structure funds, combine investors, and bring in capital. That flexibility is one reason Mauritius has stayed attractive to managers looking for efficient setups that still meet international standards.

Mauritius built this system not to complicate life for investors, but to keep the playing field clean. The laws protect both the market and the people who trust it with their money. For anyone planning to launch a fund here, understanding these rules isn’t red tape — it’s part of what makes Mauritius such a stable and trusted base for international finance.

Types of Investment Funds You Can Launch in Mauritius

Mauritius follows the same fund classifications used in most international financial centers — mainly divided between open-ended and closed-ended structures. The difference between them comes down to liquidity and flexibility.

Open-ended funds let investors come in and out freely. Shares can be redeemed at market value, giving participants a quick way to withdraw capital. This model suits people who prefer mobility and want their money to stay flexible. Such funds are often used for portfolios made up of securities, currencies, and other liquid assets. The management company is obliged to buy back shares from investors at the fund’s current price, keeping the structure fluid and responsive to market changes.

Closed-ended funds, on the other hand, operate under fixed rules. Investors put money in at the beginning, and withdrawals happen only after a set term or once the underlying project is completed. These funds are typical for long-term strategies such as real estate, energy, infrastructure, or venture capital. They carry higher risk but also greater potential rewards since the capital goes into assets that are harder to sell but more strategically valuable.

For foreign investors setting up a fund in Mauritius, the choice between open and closed structures depends on their goals — whether they prioritize liquidity, steady income, or stronger control over assets. Many firms create both models in parallel to balance different investor needs. Open-ended funds often benefit from tax advantages through Mauritius’ network of international treaties, while closed-ended funds are a better fit for large institutions that value stability and long planning horizons.

Funds in Mauritius are also grouped by how investors can access them: private or public.Private funds are open only to a limited circle of participants — typically qualified professionals or institutional players. Their benefits include:

• simplified disclosure rules;
• lighter reporting requirements;
• less direct supervision from the regulator.

Public funds are available to the wider market, including retail investors. Because of this, they face stricter oversight from the Financial Services Commission (FSC). Such funds must:

• publish regular financial reports;
• disclose their investment strategy;
• maintain full transparency of operations.

Launching a public fund in Mauritius therefore requires precise legal preparation, professional auditing, and compliance with international standards from day one.

The Mauritian financial system is flexible enough to accommodate new formats, including specialized and hybrid funds. Specialized funds target specific sectors such as renewable energy or infrastructure and have become popular with the global shift toward ESG-driven investing. Hybrid funds combine traits of different models — they can mix open and closed structures or merge the characteristics of private and public funds. This adaptability keeps Mauritius at the center of the evolving global investment landscape, offering room for both traditional capital and innovative financial ideas.

Choosing the Right Legal Form for Your Fund in Mauritius

The legal form of a fund determines how transparent its management will be, how easily it can attract investors, and how well it protects the interests of its beneficiaries. Mauritius, known as one of the most trusted financial hubs, offers several options that fit both institutional and private investors.

The most common model is a fund structured as a company, registered as either a private or a public corporation. This setup appeals to global investors because of its clear hierarchy, defined board of directors, and consistent reporting obligations. Corporate funds operate under the supervision of the Financial Services Commission (FSC), which enforces local corporate law and ensures that governance standards remain high. This structure works best for large-scale or publicly managed investment vehicles that need accountability and clear administrative rules.

Another widely used form is the trust. It’s based on a relationship of confidence between the settlor, the trustee, and the beneficiaries. A trust structure suits private investment projects where confidentiality and asset protection are priorities. It’s especially useful for family offices, wealth preservation, and long-term estate planning. At the same time, trustees must follow FSC regulations carefully — poor administration or lack of transparency can lead to legal issues, including suspension or closure of the fund.

A third option gaining popularity is the Limited Liability Partnership (LLP). This format combines management flexibility with legal protection for its participants. Each partner’s liability is limited to their contribution, while the management process is governed by a partnership agreement. That agreement defines how decisions are made, profits distributed, and members may exit. LLPs work particularly well for joint ventures and collective investment projects that involve higher risk or require more adaptive management.

How to Register an Investment Fund in Mauritius — Step by Step

Opening an investment fund in Mauritius starts with thorough preparation. The first stage is assembling a full documentation package. Founders must provide the company’s founding acts, articles of association, and details about shareholders and managers. A clearly written investment strategy is also required, describing how the fund plans to operate and ensuring it complies with international financial standards. Applicants must prove the legal origin of their capital and confirm that all income sources meet global KYC, AML, and CFT requirements.

The Financial Services Commission (FSC) says that all papers must be in English and follow their formatting requirements. Usually, the application contains copies of each founder's passport and evidence of domicile, as well as thorough information about the risks, goals, and management procedures of the venture. A well-organized company plan with growth projections makes it far more likely that the review will go smoothly.

Once submitted, the FSC begins its due diligence — one of the most critical parts of the process. The regulator evaluates:

• the financial stability of the applicants;
• their professional qualifications and reputation;
• whether the fund’s goals comply with local legislation;
• and the adequacy of the fund’s corporate governance system.

This verification includes checking the internal control framework and compliance mechanisms. Every fund must appoint an officer responsible for overseeing daily operations and preventing regulatory breaches. This structure is one reason Mauritius is trusted worldwide — funds registered here operate under clear oversight, which reassures investors that their capital is protected by an independent authority.

If any gaps or inconsistencies are found, the FSC may request extra documents, ask for clarifications, or suggest adjustments to the founding materials. Such feedback keeps the system balanced: it protects investors while allowing fund managers enough flexibility to finalize their structure.

Once the review is complete and the application meets all standards, the FSC issues official approval. The entire process typically takes up to three months. However, simple funds with straightforward ownership structures can be approved in about one to one and a half months. Larger or more complex projects, especially those involving multiple jurisdictions or layered management systems, usually require additional time for examination.

The licensing procedure in Mauritius may seem detailed, but that’s what gives it credibility. Each approved fund emerges from a process designed to ensure transparency, sound governance, and investor protection — qualities that continue to make Mauritius a leading destination for international investment funds.

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Licensing Investment Funds in Mauritius

Getting a license for an investment fund in Mauritius is not a simple administrative step. It’s proof that the company meets international standards and that its operations are transparent for both regulators and investors. A license shows that the fund is managed responsibly and follows the same rules used by the world’s leading financial centers.

When planning to set up a fund, founders should think not only about its structure and business model but also about the type of license that best fits their investment goals. Mauritius offers several categories of authorization, each suited to a different part of the financial market. This flexibility helps investors choose the right format and explains why Mauritius remains a top choice for establishing investment funds under FSC supervision.

The licensing process requires careful preparation. Founders must present the memorandum and articles of association, a detailed business plan, proof of where the capital comes from, and information about directors and senior managers. The Financial Services Commission (FSC) pays close attention to the fund’s financial reputation, the qualifications and experience of its management team, and the clarity of its investment strategy.

Applicants also need to prove that the company can meet its tax duties and maintain reliable internal controls. Once the documents are submitted, the FSC begins its review, analyzing compliance with AML and KYC rules and evaluating the effectiveness of corporate governance. The review period usually lasts from six to twelve weeks, depending on how complex the fund’s structure is and how quickly any questions from the regulator are answered.

When the FSC completes its assessment and confirms that all requirements are met, the fund receives official authorization to operate. This license is more than a formality — it’s a signal of credibility and compliance that helps funds build trust with partners, attract international investors, and maintain access to global financial markets.

Taxes in Mauritius — Why Investors Love This System

Mauritius has built a tax model that actually works for investors, not against them. That’s why so many international funds end up here — the rules are simple, the rates are fair, and the government doesn’t punish success.

The most common structure is a company with a Global Business License (GBL). These firms don’t pay corporate income tax the usual way. If their income comes entirely from outside Mauritius and they meet the basic substance rules — meaning they actually have some presence on the island — their tax rate can drop to zero. Profits aren’t taxed at the company level, only at the level of its owners, which makes the setup ideal for managing foreign capital.

Another popular choice is the Collective Investment Scheme (CIS), a company-style fund with equally generous treatment. CIS funds pay no corporate tax and can apply an 80% exemption on income from interest, as long as they also meet substance conditions. It’s a clean, predictable system that keeps investors happy and paperwork light.

For other non-resident companies, the standard corporate tax rate is 15%, but it applies only to money earned inside Mauritius. Export-oriented firms get an even better deal — just 3% on profits. And there’s more good news: no capital gains tax, no tax on dividends sent abroad, and a simple GST of 15%.

Mauritius also has a long list of double tax treaties with countries around the world. That means you won’t get taxed twice on the same income, which is a big advantage for global businesses moving funds across borders.

It’s this mix of clarity and flexibility that keeps Mauritius on the map as one of the most investor-friendly places to build and run an international fund. You get a strong legal system, real banking infrastructure, and a tax policy that doesn’t eat into your returns — a rare combination in global finance.

Requirements for Fund Managers in Mauritius

The Financial Services Commission (FSC) holds fund managers in Mauritius to strict standards of competence, integrity, and transparency. These expectations are clearly stated across several laws, regulatory acts, and FSC guidance notes. Anyone planning to register a management company must follow these rules closely — full compliance during the application stage greatly increases the chance of approval and minimizes future legal risks.

A company applying to manage investment funds must prove both its financial stability and adherence to corporate governance principles. The fund must show authorized capital that matches its scale and planned assets under management. The FSC also looks at ownership transparency, requiring full disclosure of shareholders and beneficial owners while banning the use of nominee holders.

Managers themselves must demonstrate relevant experience in asset management, banking, or financial consulting. The FSC reviews professional history, academic background, and international qualifications that confirm expertise in investment analysis, risk management, and corporate finance.

The regulator also checks business reputation. Each applicant undergoes background screening for criminal records, bankruptcies, regulatory sanctions, or other violations in financial conduct. Fund management requires trust, and the FSC enforces that principle strictly.

To meet these expectations, many founders work with legal and compliance professionals familiar with Mauritian procedures. This helps prepare the documentation, select qualified personnel, and build a proper governance structure.

Fund managers carry significant responsibility for every aspect of operations. Their key duties include:

• developing and implementing investment strategies in the best interests of clients;
• maintaining transparent accounting and timely financial reporting;
• ensuring compliance with tax and regulatory obligations;
• enforcing rules against money laundering and terrorist financing.

Failure to meet these standards can lead to serious penalties. In certain cases, managers may face personal liability for misconduct committed during fund operations — a reminder that professional ethics and compliance in Mauritius are not optional but essential for long-term success.

Disclosure Rules for Investment Funds in Mauritius

For anyone planning to launch an investment fund in Mauritius, transparency isn’t optional — it’s the foundation of the entire system. Proper disclosure shows both investors and the Financial Services Commission (FSC) that the fund operates honestly and in line with the law. This level of openness is also what attracts global investors who use Mauritius as a bridge to African and Asian markets.

Every registered investment fund is required to provide regular reports that reflect its financial performance and internal control. The main categories include:

• Annual financial statements prepared under international accounting standards, confirming the fund’s financial position and results.
• Semiannual and quarterly reports showing portfolio performance, income distribution, and asset allocation.
• Audit reviews and opinions from independent consultants, verifying that asset records and valuations comply with regulations.
• Reports on investment strategy execution that detail how the fund manages risks and ensures effective internal oversight.

For fund founders, it’s important to set up accounting and monitoring systems well before registration. These systems make it possible to generate accurate reports on time and to keep all communication with the FSC smooth and consistent.

Ignoring deadlines or submitting incomplete data is a serious matter in Mauritius. The regulator can impose financial penalties, suspend a license, or restrict operations until full compliance is restored. Periodic reporting isn’t just paperwork — it’s a safeguard that protects investors’ interests and keeps the reputation of the Mauritian financial market strong.

A fund that handles disclosure properly earns more than regulatory approval — it earns trust. And in the world of investment management, that’s what keeps capital flowing.

Mauritius: A Safe Harbor for Serious Investors

Mauritius isn’t just another offshore location — it’s a place built for financial growth. The island offers stability, a clear legal framework, and real protection for investors. Its system connects smoothly to global markets and gives fund managers the structure they need to operate with confidence.

Success here depends on precision. Every step of registration — from choosing the right structure to securing the license — requires attention to detail and an understanding of local and international rules. Missing a single requirement can cause delays or even rejection, so proper legal guidance is essential.

Our consulting team helps make that process straightforward. We handle the documentation, ensure full compliance with Financial Services Commission (FSC) standards, and help shape the fund’s structure to fit its goals. We also review governance and tax obligations to make sure your setup is efficient and ready to grow.

For clients planning long-term operations, we offer strategic advice — how to attract investors, manage capital effectively, and build a presence that inspires trust. Mauritius rewards professionalism, and with the right support, your fund can become part of one of the world’s most respected financial environments.