Establishing an investment dealer in Mauritius

Establishing an Investment Dealer in Mauritius in 2023

The Republic of Mauritius’ efforts in becoming a sound, reputable and competitive financial and investment services centre are of note. These have been significantly strengthened by the establishment, development and growth of the Financial Services Commission (FSC), Mauritius, the regulator tasked with the supervision of the non-bank financial services sector and global businesses.

The FSC Mauritius is committed to the development of a fair, transparent and efficient financial system by licensing, regulating and supervising the sectors of securities services, insurance services and virtual assets services. This has attracted the attention of startups, of existing financial groups and firms interested in expanding their reach and presence through this evolving part of the world.

In this article, the SALVUS Investment Firms Licensing team discusses the establishment of an Investment Dealer licensed entity in Mauritius, its advantages and other important information on this matter, as follows:

1. Why are businesses established in Mauritius?
2. What is the applicable Regulatory Framework for Investment Dealer licensed entities?
3. License Categories and Capital Requirements
4. What are the licensing requirements?
5. How SALVUS can support your licensing application


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1. Why are businesses established in Mauritius?

The Republic of Mauritius offers a unique combination of political, social and financial advantages from which an investment firm can benefit from. Mauritius is a member of the African Union, the United Nations, the World Trade Organisation, the British Commonwealth, the International Organisation of La Francophonie and the Common Market for Eastern and Southern Africa, among others.

The country maintains strong relations with countries from every continent, a fact confirmed by the extensive network of more than 40 double tax treaties and 28 investment promotion and protection agreements. Friendly relations with African states have allowed Mauritian-based investors and firms to enter African markets. Furthermore, the political heritage and dependence of Mauritius on western markets have resulted in the creation of substantial ties with the European Union Member States.

The strategic time zone enables business to be conducted with Africa, Europe, Asia and America on the same day. This is further strengthened by the skilled and well-educated bilingual workforce, speaking both English and French. Mauritius has developed a hybrid legal system based on English and French laws and has retained the United Kingdom Privy Council as its ultimate court of appeal.

Additionally, the well-capitalised and sophisticated banking sector facilitates the day-to-day operations of an investment firm with its clients and transactions with different providers around the globe.

2. What is the applicable Regulatory Framework for Investment Dealer licensed entities?

Operating under an Investment Dealer license in Mauritius requires compliance with the provisions of the Securities Act of 2005, as amended from time to time. The said Act is further reinforced by additional rules and regulations published by the FSC for matters concerning licensees in the securities sector. Such matters can be relevant, inter alia, to:

  • accounting and auditing standards,
  • the content and form of financial statements, annual reports and other documents,
  • requirements regarding the offer and issue of securities,
  • the applications for the grant or renewal of a license,
  • the criteria for granting securities licenses,
  • the determination of whether a person is fit and proper for the purposes of the Act.

In addition, any financial institution is subject to the requirements of the legislative framework developed for the prevention of money laundering, terrorist financing and corruption. This is comprised of the following acts:

  • the Financial Intelligence and Anti-Money Laundering Act of 2002,
  • the Prevention of Corruption Act of 2002, and
  • the Prevention of Terrorism Act of 2002.

3. License Categories and Capital Requirements

An Investment Dealer license provides permission to its holder to establish a trading platform in Mauritius and trade securities and similar products on behalf of clients. As per the table below there are three categories of Investment Dealer licenses that can be issued in the Republic of Mauritius, authorised to conduct different sets of investment activities.

License CategoryAuthorised ActivitiesCapital Requirements
Investment Dealer
(Full Service incl. Underwriting)
1. Act as an intermediary in the execution of securities transactions for clients;
2. Trade in securities as principal with the intention of reselling these securities to the public;
3. Underwrite or distribute securities on behalf of an issuer of a holder of securities;
4. Give investment advice that is ancillary to the normal course of business activities;
5. Manage portfolios of clients.
MUR* 10,000,000 (≈ USD 230,000)
Investment Dealer
(Full Service excl. Underwriting)
Authorised to undertake the activities listed above, except activity 3. Underwrite or distribute securities on behalf of an issuer or a holder of securities.MUR* 1,000,000 (≈ USD 23,000)
Investment Dealer (Broker)1. Execute orders for clients;
2. Manage portfolios of clients;
3. Give advice on securities transactions to clients.
MUR* 700,000 (≈ USD 16,000)
Investment Dealer (Discount Broker)1. Execute orders for clients without giving advice.MUR* 600,000 (≈ USD 13,800)

*MUR: Mauritian rupee

The minimum required capital stated for each Investment Dealer license is directly connected to the nature, scale and complexity of the services prescribed under each category. In each case, the applicant shall maintain the minimum stated unimpaired capital or its equivalent in another currency in order to initiate operations.

4. What are the licensing requirements?

There are several requirements for the Investment Dealer license regarding the organisational, compliance and operational aspects of the business, which include:

  • A carefully designed and composed, detailed business plan;
  • Information on the trading platforms to be used;
  • Details on the use of the services of a liquidity provider;
  • The applicant’s client target market;
  • Information on the persons that will comprise the investment dealer team;
  • Compliance with the AML/CFT framework;
  • Policies and procedures to be implemented;
  • Details regarding physical presence in Mauritius.

5. How SALVUS can support your licensing application

The SALVUS Investment Firms Licensing team has developed an effective project management approach targeting the specific characteristics of each licensing project. Due to our extensive knowledge and expertise, after discussing your business vision and objectives we provide you with the most suitable selection of license categories for your business plan.

We work in coordination with our client’s team to gather all the necessary information and prepare the required paperwork for the submission of a complete application, following regulatory guidelines. Furthermore, we support the efficient allocation of the entity’s financial resources by utilising a combination of human resources, outsourced arrangements and third-party providers.

If you are interested in applying for an Investment Dealer license or you would like more information about investment activities in Mauritius, contact us at [email protected] or call us at +357 7000 7898.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.

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