News & Insights

Why Mauritius for Fund Structuring?

 

​​Mauritius has become the jurisdiction of choice for fund managers, private equity sponsors, and institutional investors seeking a well-regulated and cost-effective platform.​​​​

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Key advantages include:​​

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• Low effective tax rate: Through the Partial Exemption Regime, the effective tax rate can be as low as 3%.

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• No capital gains tax and no withholding tax: on dividends, interest, or capital repatriation.

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• No exchange controls and unrestricted capital movement.

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• Access to 50+ DTAAs, providing strong treaty protection for cross-border investments.

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• Flexible fund structures, allowing incorporation as a company, trust, limited partnership, or protected cell company.​

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• Global recognition, with alignment to OECD and IOSCO standards.

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Types of Funds​

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Investment funds in Mauritius are broadly categorised as Collective Investment Schemes (CIS) or Closed-End Funds. These can be structured for retail, professional, or institutional investors.

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Common fund categories include:

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• Global Collective Investment Scheme (CIS): Fully regulated and open to the public.

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• Professional CIS: For sophisticated investors and private placements.

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• Specialised CIS: For specific asset classes such as real estate, derivatives, or commodities.

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• Expert Funds: For expert investors (minimum USD100,000 investment), offering lighter regulation.

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Funds may also operate under umbrella structures using Protected Cell Companies (PCCs) to segregate assets and liabilities between sub-funds.

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Legal and Regulatory Framework

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Funds are licensed and supervised by the Financial Services Commission (FSC) under the Securities Act 2005 and the FSC Rules. They must be administered by a licensed Management Company, like Intrasia Management, in Mauritius.​

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Key requirements:

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• Submission of an offering memorandum or prospectus outlining investment strategy, risk profile, and governance.

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• Appointment of a CIS Manager, CIS Administrator, Custodian, and Auditor (as applicable).

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• Minimum capital and subscription thresholds depending on fund type.

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• Regular reporting and annual audits to maintain FSC compliance.

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Common Fund Structures

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• Company: The most common form, suitable for both open- and closed-end funds.

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• Protected Cell Company (PCC): Allows multiple sub-funds or cells under one legal entity, each ring-fenced from the others.

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• Limited Partnership (LP): Favoured for private equity or venture capital structures offering flexible governance and profit allocation.

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• Trust or Foundation: Used for specific asset management or philanthropic investment mandates.

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Taxation

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• Corporate income tax: 15% headline rate; 80% partial exemption on qualifying income (e.g. dividends, interest, foreign branch profits).

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• No capital gains tax and no withholding tax on dividends or interest paid to investors.

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• Tax resident certificate (TRC): Available for funds meeting substance requirements, allowing access to DTAAs.

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