One of the most prestigious jurisdictions for obtaining a permit is Mauritius. This state is a financial center for offshore companies, where a stable economy and politics will favorably influence business development. But for the firm to operate legally, obtaining a Mauritius forex license is necessary.
Benefits of licensing here
One of the main benefits is that having such a permit will automatically raise your company’s rating in the eyes of business partners. This is because this area is considered a prestigious and reliable jurisdiction. If a company can pass licensing, it complies with the strict laws that apply in the state. An innovative infrastructure has been created to ensure comfortable activities here, including telecommunication networks and the banking system.
The FSC regulator imposes precise licensing demands and actively supports organizations that have received permission to broker activities. Also, based on the regulatory framework, the organization’s confidentiality is ensured. It is worth noting that the minimum authorized capital is only 18,000 USD, and there is no income tax for offshore companies (non-residents of this area). There is only a meager corporate tax of 3%.
The Mauritian authorities have signed more than 30 agreements that eliminate the possibility of double tax. Also, the state does not provide for currency control, and the business can be managed remotely. You can register a company within a month; the licensing period lasts approximately three months.
Tax policy will increase profits
Thanks to attractive taxation, the firm is allowed to minimize tax payments. This area has an Income Tax Act that controls taxation in the state. Standard corporate tax is 15%, but for offshore companies, it is only 3%. In addition, the state offers other tax advantages:
- unique benefits from tax exemption;
- companies that are considered non-residents of this area are exempt from taxes;
- double taxation is excluded;
- there is no taxation on dividends;
- the company is exempt from capital gains tax.
Please note that it is critical to comply strictly with Mauritius’s legal requirements. This includes filing tax returns and paying them on time. If an organization does not comply with the established rules, fines and various sanctions will follow, and sometimes a ban on the company’s activities.
What services can a licensed company provide?
Having received a forex license from the FSC, the company will be entitled to provide the following services:
- management of clients’ investment portfolios;
- will receive permission to trade securities;
- will be able to provide advice and recommendations to its clients;
- be an intermediary in various transactions, including trading securities, currencies, and shares.
Thus, licensing opens up a wide range of services to organizations, allowing them to expand their business and increase capital.
How is regulation carried out?
The primary regulator of the financial non-banking sector is the FSC. Her responsibilities include issuing licenses and monitoring the activities of companies. In addition, FSC monitors financial crimes and errors made during operations. The primary responsibility of this Commission is to ensure the stability of the Mauritian financial market.
The legislative framework for regulating the financial sector includes the following laws.
Financial Services Act
It monitors the activities and compliance of licensed financial companies. This includes reporting, conducting audits, monitoring financial risks, and overseeing compliance with legal requirements.
Securities Law
The Law regulates the activities of companies related to securities: purchase/sale, issue, and exchange. The company must comply with the requirements in the Law, including obtaining permission for financial transactions and ensuring their transparency.
AML/FT
All financial organizations must implement an AML policy in their activities: carry out mandatory identification of clients, monitor financial transactions, and, if suspicious transactions are detected, report them to the competent authorities. It is also necessary to create an internal control system considering the occurrence of risks.
If the company plans to obtain a global business license (GBL1), it must apply to the FSC and provide evidence of financial activities outside of this state.