Fund managers in Mauritius: an environment conducive to growth
Mauritius attracts a growing number of international fund managers, drawn by the unique combination of a solid regulatory framework, competitive taxation (effective rate of 3% via the DFTC) and privileged access to the emerging markets of Africa and Asia. The Securities Act 2005 and the FSC Rules provide a clear and predictable framework for establishing and operating fund management activities. The typical legal structure is the GBC (Global Business Company), which gives access to the DFTC and to tax treaties.
Whether you are an established manager looking to build a presence in the Indian Ocean, a new manager launching your first fund targeting Africa or India, or an existing manager wishing to re-domicile your activities, Mauritius offers the infrastructure needed to succeed — on the regulatory, human and technological fronts alike.
The CIS Manager licence
Types of licences available
The FSC issues several categories of licences for management and investment advisory activities:
| Licence type | Description | Minimum capital | Authorised activities |
|---|---|---|---|
| CIS Manager | Management of CIS and/or CEF | Rs 1,000,000 (~USD 22,000) | Portfolio management, investment decisions, operational management of the fund |
| Investment Adviser (Unrestricted) | Unrestricted investment advice | Rs 500,000 (~USD 11,000) | Advice on all asset classes, no discretionary management |
| Investment Adviser (Restricted) | Advice limited to certain categories | Rs 200,000 (~USD 4,500) | Advice limited to specific asset classes or markets |
| Distribution of Financial Products | Distribution of fund units | Rs 200,000 (~USD 4,500) | Placement agent, distribution of units to investors |
Licence application process
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FSC pre-consultation (1-2 weeks)
Informal discussion with the regulator to present the project, clarify specific requirements and identify any points requiring attention. Strongly recommended for foreign managers.
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File preparation (2-4 weeks)
Incorporation of the company in Mauritius, drafting of the detailed business plan, preparation of compliance policies (AML/KYC, risk management, conflicts of interest), collection of CVs and references of the directors.
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Submission and FSC due diligence (3-6 weeks)
Filing of the complete application together with payment of the fees. The FSC carries out a thorough fit and proper test on all directors and significant shareholders (background, qualifications, integrity).
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Approval and issuance
Issuance of the CIS Manager licence, subject to satisfaction of the preconditions (paid-up capital, PI insurance, staff in place, operational systems). The CIS Manager can then start managing funds.
Governance requirements
A CIS Manager licensed in Mauritius must meet strict governance requirements, proportionate to the size and complexity of its activities:
- Board of directors — Minimum two directors, including at least one qualified Mauritian resident in fund management or finance
- Compliance Officer / MLRO — A dedicated, qualified and trained person, responsible for regulatory and AML compliance
- Risk Manager — Risk management function independent from the investment function (may be outsourced for smaller structures)
- External auditor — An audit firm approved by the FSC for the annual audit of the CIS Manager's accounts
- PI insurance — Professional Indemnity / E&O cover mandatory
- Code of ethics — Conflicts of interest policy, code of conduct, personal dealing policy
Operational setup in Mauritius
Infrastructure and offices
Establishing a CIS Manager in Mauritius requires an adequate physical presence, in line with the FSC's economic substance requirements:
- Offices — Space in the business districts of Ebene Cybercity, Port Louis CBD or Moka Smart City. Rents: USD 10-25/m2/month, significantly lower than London, Singapore or Luxembourg
- Connectivity — High-speed fibre optic internet (up to 1 Gbps enterprise), access to Bloomberg and Reuters platforms via local operators
- IT support — Local providers specialising in technology infrastructure for financial services, Tier III certified data centres
- Coworking spaces — Flexible solutions available for start-up phases
Recruitment and human resources
Mauritius has a pool of qualified talent in the financial services sector, trained at local and international universities, with recognised qualifications (CFA, ACCA, CIMA, CPA).
| Position | Indicative annual salary (USD) | Typical qualifications |
|---|---|---|
| Fund Manager / CIO | 60,000 - 120,000 | CFA, MBA, 10+ years' experience |
| Compliance Officer / MLRO | 30,000 - 60,000 | ICA, ACAMS, 5+ years' experience |
| Fund Accountant | 20,000 - 40,000 | ACCA, CPA, IFRS specialist |
| Investment Analyst | 15,000 - 35,000 | CFA Level II+, MSc Finance |
| Administrative Support | 10,000 - 20,000 | University degree, bilingual |
Competitive advantage: Salary costs in Mauritius are 60-70% lower than in London, Singapore or Luxembourg for comparable qualification profiles. The workforce is natively bilingual French-English, a major asset for managers targeting francophone Africa and French-speaking investors.
Organisational models for managers
Three main models are available to managers wishing to operate from or via Mauritius:
Model 1: Fully operational CIS Manager
The manager establishes the entirety of its operations in Mauritius with a full local team (management, analysis, compliance, operations). Maximum control, optimal economic substance. Recommended for managers with USD 100M+ in AUM.
Model 2: CIS Manager with delegation
The manager obtains a CIS Manager licence in Mauritius but delegates certain functions (research, execution, administration) to local or international providers. Flexibility while maintaining substance. Suited to USD 20-100M in AUM.
Model 3: Third-party (hosted) CIS Manager
The foreign manager relies on an existing licensed CIS Manager in Mauritius (management company). It acts as Investment Advisor under a delegation agreement. Minimal cost, ideal for emerging managers or smaller-sized funds.
Tax advantages for managers
Fund managers established in Mauritius benefit from a particularly attractive tax regime, applicable both to the management entity and to the personal income of expatriate directors.
| Tax item | Regime |
|---|---|
| Corporate tax on management fees (foreign-source) | 3% effective (DFTC) |
| Corporate tax on carried interest (foreign-source) | 3% effective (DFTC) |
| Capital gains on disposal of holdings | 0% |
| Withholding tax on dividends distributed by the CIS Manager | 0% |
| Personal income tax for expatriates (Mauritian income) | Progressive scale: 0% up to MUR 500,000, 10% up to MUR 1,000,000, 20% up to MUR 12,000,000, 35% beyond |
| Personal income tax for expatriates (foreign income not remitted) | 0% (remittance basis) |
| Tax treaties | 45 double taxation treaties (MRA, 2026) |
Carried interest: Carried interest income received by a GBC CIS Manager from foreign sources benefits from the DFTC, reducing the effective rate to 3%. This is one of the most competitive regimes in the world for private equity and venture capital managers.
Ongoing reporting obligations
A licensed CIS Manager must meet regular reporting obligations to the FSC:
- Audited annual financial reports of the CIS Manager (management entity), to be filed within 6 months of the financial year-end
- Quarterly reports on assets under management (AUM), the number of funds managed and significant changes
- Annual compliance report — Summary of the AML/KYC programme, incidents, training, and review by the compliance officer
- Annual economic substance declaration — Staff, expenditure, board meetings, decisions made in Mauritius
- Immediate notification of any significant change: directors, shareholders, compliance incidents, sanctions, litigation
Our support for fund managers
Our team offers comprehensive support to fund managers wishing to establish themselves in Mauritius, from project design to ongoing operational support:
- Obtaining the FSC licence — Pre-consultation, file preparation, follow-up of the process through to issuance
- Legal and tax structuring — Choice of the optimal structure for the manager and its funds, tax modelling
- Operational setup — Offices, recruitment, IT, selection of service providers (administrator, custodian, auditor)
- Compliance and governance — Drafting of AML/KYC policies, risk management, code of ethics, training programme
- Work permits — Obtaining professional Occupation Permits for expatriate staff and their dependants
- Ongoing support — Regulatory support, legislative monitoring, assistance during FSC inspections, annual compliance review
Launch your fund management activity in Mauritius
Whether you opt for a fully operational CIS Manager, a delegation model or a hosted arrangement, our team guides you at every stage. From the FSC licence to the first investment, we ensure a smooth and compliant launch.