Fund Management in Mauritius
Mauritius has developed a robust ecosystem for fund management, attracting managers focused on Africa, India, and emerging markets. The CIS Manager license, issued by the Financial Services Commission (FSC), authorises entities to provide investment management services to Collective Investment Schemes domiciled in Mauritius.
The combination of a 3% effective tax rate (through the GBC partial exemption regime), access to 45+ DTAs, competitive operating costs, and a skilled workforce makes Mauritius an attractive domicile for fund management companies. Over 1,000 investment funds are registered in Mauritius, managed by both local and international fund management teams.
CIS Manager License
License Requirements
To obtain a CIS Manager license from the FSC, an entity must demonstrate:
- Capital adequacy — Minimum unimpaired capital of MUR 1 million (approximately USD 22,000) or 25% of annual operating expenses, whichever is higher
- Competent officers — At least two directors with relevant experience in investment management, at least one of whom must be resident in Mauritius
- Compliance function — A designated compliance officer and documented compliance procedures
- Risk management — Documented risk management framework appropriate to the manager's investment strategy
- Business plan — Detailed business plan including investment strategy, target market, fee structure, and financial projections
- KYC/AML — Comprehensive AML/CFT policies and procedures
- Professional indemnity insurance — Adequate insurance coverage
Application Process
- Pre-application — We assess your business plan, team qualifications, and capital structure to ensure readiness for the FSC application
- GBC incorporation — We incorporate a GBC that will serve as the fund management company
- FSC application — We prepare and submit the CIS Manager license application with all required documents (business plan, compliance manual, KYC policies, director CVs, etc.)
- FSC review — The FSC reviews the application, which typically takes 4-8 weeks. The FSC may request additional information or clarifications
- License issuance — Upon approval, the CIS Manager license is issued, and the company can begin providing investment management services
- Fund launch — With the manager licensed, the fund itself can be established and licensed
Operational Structure
A typical Mauritius fund management company has the following operational structure:
| Function | Responsibility | Location |
|---|---|---|
| Investment committee | Investment decisions, portfolio allocation | Mauritius (substance requirement) |
| Portfolio management | Day-to-day investment management, trade execution | Mauritius (with possible delegation) |
| Risk management | Risk monitoring, limit compliance, stress testing | Mauritius |
| Compliance | Regulatory compliance, AML/KYC, FSC liaison | Mauritius |
| Client relations | Investor communications, capital raising | Mauritius and/or abroad |
| Operations | Trade settlement, reconciliation, reporting | Mauritius (or via administrator) |
Delegation of Investment Management
The FSC permits delegation of investment management functions to a foreign investment manager under a delegation agreement, subject to conditions:
- The delegation must be approved by the FSC in advance
- The Mauritius CIS Manager retains responsibility and oversight over the delegated functions
- The foreign manager must be regulated in a jurisdiction recognised by the FSC
- The Mauritius entity must maintain sufficient resources and expertise to monitor the delegate
- Investment decisions must involve genuine participation from the Mauritius entity (for substance purposes)
This delegation model is commonly used by international fund managers who want to domicile their funds in Mauritius while retaining their existing investment teams in London, New York, Singapore, or other centres.
Types of Fund Managers in Mauritius
Africa-Focused PE/VC
The largest category of Mauritius fund managers. Firms like Helios, Actis, and Development Partners International manage Africa-focused private equity and venture capital funds from Mauritius. The combination of African DTAs, 3% tax rate, and PE/VC fund expertise makes Mauritius the natural home for Africa-focused managers.
India/Asia Managers
Managers focused on Indian and broader Asian markets use Mauritius as their fund domicile. Despite the 2016 India DTA amendment, Mauritius remains attractive for dividend and interest income, CECPA benefits, and general tax efficiency.
Multi-Strategy/Global
Global fund managers use Mauritius as a cost-effective, well-regulated platform for their international fund structures. The GBC structure with partial exemption provides a competitive operating environment.
Real Estate Managers
Managers investing in African real estate (commercial, residential, and mixed-use) through Mauritius holding structures. The absence of capital gains tax makes Mauritius particularly attractive for real estate investment funds.
Conduct Requirements
CIS Managers must adhere to strict conduct rules set by the FSC:
- Best execution — Execute transactions on terms most favourable to the fund
- Conflict management — Identify, disclose, and manage conflicts of interest
- Fair allocation — Allocate investment opportunities fairly among funds and investors
- Personal trading — Control and monitor personal trading by staff to prevent insider dealing
- Record keeping — Maintain comprehensive records of all investment decisions, transactions, and communications
- Valuation policy — Apply consistent and fair valuation methodologies
Fees and Costs
| Item | Typical Range |
|---|---|
| GBC incorporation | USD 3,000 – 5,000 |
| CIS Manager license (FSC fee) | USD 3,000 – 5,000 |
| Annual FSC license fee | USD 1,950 |
| Compliance setup (manual, policies) | USD 3,000 – 8,000 |
| Annual compliance/administration | USD 5,000 – 15,000 |
| Office space (shared, Ebene) | USD 500 – 1,500/month |
Substance for Fund Managers
Fund managers must demonstrate genuine economic substance in Mauritius. This means having qualified investment professionals on the ground, conducting investment committee meetings in Mauritius, and maintaining adequate infrastructure. The FSC scrutinises substance during the licensing process and through ongoing supervision.
Set Up Your Fund Management Company
Sunibel Corporate Services provides end-to-end support for establishing a fund management company in Mauritius — from GBC incorporation and CIS Manager licensing to ongoing compliance and operational support. Contact us to discuss your fund management plans.