Glossary

Financial and legal terms explained simply, to help you understand the business environment in Mauritius.

A

Authorised Company (AC)

A Mauritian company that is not tax resident, reserved for activities conducted exclusively outside Mauritius and taxed only on its Mauritian-source income.

Anti-Money Laundering (AML)

A body of laws, regulations, and procedures designed to prevent the financial system from being used for money laundering, applicable to entities licensed by the FSC.

C

Common Reporting Standard (CRS)

An OECD standard organising the automatic exchange, between tax authorities of participating countries, of information on financial accounts held by non-resident persons.

D

Double taxation agreement

A double taxation agreement (DTA) is a bilateral treaty by which two States agree to prevent the same income from being taxed twice and to allocate their respective taxing rights.

E

Economic Development Board (EDB)

The Economic Development Board (EDB) is the Mauritian public body responsible for promoting investment and issuing occupation, residence and retirement permits to foreign nationals.

Economic substance is the requirement for a Mauritian company to demonstrate genuine activity on the ground — effective management, qualified staff and proportionate expenditure — a condition for the applicable tax regime.

F

Financial Services Commission (FSC)

The Financial Services Commission (FSC) is the Mauritian authority regulating non-bank financial services, responsible for licensing international structures such as the GBC and the management companies that administer them.

FATCA (Foreign Account Tax Compliance Act)

FATCA is a US federal law requiring foreign financial institutions, including Mauritian ones, to identify clients regarded as US taxpayers and report certain information about them to tax authorities.

Free float

Free float refers to the proportion of a listed company's capital actually available for trading on the market, excluding shares held on a lasting basis by reference shareholders, executives or the State.

G

Global Business Company (GBC)

The Global Business Company (GBC) is a Mauritian company holding a licence from the Financial Services Commission, tax resident in Mauritius, able to access double taxation treaties subject to substance requirements.

H

Holding company

A holding company is a company whose main activity consists of holding interests in other companies, in order to centralise their management, financing or control.

I

Integrated Resort Scheme (IRS)

The Integrated Resort Scheme (IRS) is a Mauritian property programme reserved for foreign purchasers, offering a right of residence subject to conditions, alongside the PDS, RES and Smart City schemes.

K

Know Your Customer (KYC)

KYC refers to the set of identity and source-of-funds checks that a management company licensed by the FSC must carry out before accepting a client or a structure in Mauritius.

M

Management Company

An entity licensed by the Financial Services Commission, the only type of entity authorised in Mauritius to administer Global Business Companies and Authorised Companies, including as registered agent.

Mauritian Foundation

The Mauritian foundation is a legal entity endowed with legal personality, separate from its founders and beneficiaries, used to organise, manage, and transmit assets according to a charter and by-laws.

Money Laundering Reporting Officer (MLRO)

The Money Laundering Reporting Officer (MLRO) is the person designated within a financial institution or management company to centralise the detection and reporting of suspicious money-laundering transactions.

N

Net Asset Value (NAV)

Net asset value (NAV) is the total value of an investment fund's assets, less its liabilities, divided by the number of units or shares in issue.

O

Occupation Permit

A permit issued by the Economic Development Board combining the right to reside and the right to work in Mauritius, intended for investors, salaried professionals and self-employed persons, under categories with their own conditions.

P

Protected Cell Company (PCC)

A Mauritian company structure divided into legally distinct cells, whose assets and liabilities are ring-fenced from one another, often used for funds or multi-compartment insurance structures.

Property Development Scheme (PDS)

A framework regulated by the Economic Development Board allowing foreign nationals to acquire residential property within approved projects in Mauritius, with access to a residence permit.

R

Resident Permit

A residence permit issued by Mauritius for retirees, premium visa holders or property investors, distinct from the Occupation Permit in that it does not carry an automatic right to work.

S

Special Purpose Vehicle (SPV)

A legal entity created for a specific, ring-fenced purpose, generally structured in Mauritius as a Global Business Company or an Authorised Company depending on tax residence needs.

Stock Exchange of Mauritius (SEM)

The Stock Exchange of Mauritius (SEM) is Mauritius's securities exchange, regulated by the Financial Services Commission, on which shares, bonds and fund units are traded.

T

Trust

A common-law legal structure whereby a settlor transfers assets to a trustee, who is responsible for managing them for the benefit of designated beneficiaries.

V

Variable Capital Company (VCC)

The Variable Capital Company (VCC) is a Mauritian fund structure with variable capital, organised into distinct compartments, allowing subscriptions and redemptions of units without amending the constitution, licensed by the Financial Services Commission.

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