Forex license in Mauritius

As the financial sector in Europe becomes more regulated, international entrepreneurs are considering alternative jurisdictions for registering companies. The state of Mauritius is one such prospect, especially for those looking to buy a forex license in Mauritius. The main reasons for the popularity of this small territory are the government’s loyal attitude towards foreign investors, clear and stable legislation, minimum requirements for authorized capital, and straightforward document circulation. Forex transactions are classified as financial services, falling under the regulated category. To offer services such as FX dealing, acting as an intermediary in securities transactions, trading securities, managing client portfolios, and providing investment advice, you need a forex trading license in Mauritius.

Mauritius is an appealing choice for several reasons. It is much cheaper and easier to get a license here compared to other jurisdictions. A member of the Forex market can also provide brokerage services in most of Europe, Africa, and Asia-Pacific countries. Additionally, the legislation allows for higher leverage with a small deposit. Ranked 13th in the Doing Business index, Mauritius is not listed as an unreliable territory, and with a time difference of only 2 hours from Europe, it is ideal for serving an international clientele.

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Our legal experts

Nick Dakhovskyi

Senior Lawyer

Alla Taburova

Lawyer

Benefits of Obtaining a Forex License in Mauritius

Obtaining a Mauritius financial license for forex provides the following advantages:

Advantageous tax structure;
Includes all relevant forex activity;
Potential to capitalize on the expanding market;
Worldwide acknowledgment;
Stability in both the political and economic spheres;
Access to a reliable and well-managed financial hub.

Costs and Fees for Obtaining a Forex License in Mauritius

At present, there are two types of permits available: investment dealer without underwriting and with underwriting. The key difference lies in the amount of authorized capital. For the first type, it is around $250,000, while the second requires significantly less. An underwritten license allows brokerage firms to operate under the A-Book Broker model, while the second type is more suited to the B-Book Broker.

To become the official owner of a broker license, the associated costs include company registration and initial capital (approximately $20,000). The state fee is around $750, with an annual renewal fee starting from $2,500. For those seeking assistance, Mauritius forex license consultancy services can simplify the process and provide guidance throughout the licensing procedure.

Requirements for Obtaining a Forex License in Mauritius

Basic requirements for obtaining a forex license in Mauritius are standard. It is essential to provide copies of the passports of key individuals, confirm the company’s address, and obtain a recommendation for trustworthiness from the bank. If the company has been in operation for at least a year, proof of good standing is also required. Additionally, a business plan covering the next three years must be designed.

As with many other jurisdictions, having a physical office on the island is mandatory, along with appointing local citizens as directors and corporate secretaries. The company’s management must consist of individuals with experience in the securities market and a clean reputation, free of criminal records.

Furthermore, the Mauritius forex regulation services require documentary evidence of the source of funds, a risk management policy, and AML compliance. The company must also have an agreement with a liquidity provider, and all entities must appoint an international auditor. For those unfamiliar with the process, forex license providers in Mauritius can assist in navigating these requirements efficiently.

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Process of Obtaining a Forex License in Mauritius

Obtaining a forex license in Mauritius involves several formal steps, ensuring full compliance with the regulatory framework set by the Financial Services Commission (FSC). Below is a detailed breakdown of the forex license Mauritius application process:

Collection of Information. The initial step includes performing due diligence and Know Your Customer (KYC) checks to verify the identity of the company’s shareholders and directors. A name check is conducted at the FSC to ensure the proposed company name is available and meets regulatory standards.
Preparation of Application Documents. During this phase, all necessary documentation is gathered to apply for a Mauritius GBL 1 Investment Dealer License (IDL). This includes providing the required forms, answering questions about the application process, and offering guidance on meeting the FSC’s requirements. Applicants should submit scanned copies of the completed forms via email, followed by the original documents via courier.
Filing the Application with the Mauritius FSC
Follow-up and Liaising with the FSC

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FAQ

What are the eligibility criteria for a Forex license in Mauritius?

To obtain a Mauritius license, you need to: register a brokerage company; open a local bank account for the business; hire at least two directors who are residents of Mauritius; at least two founders who have financial experience; have a physical local office; conclude employment contracts with local employees; develop and implement anti-money laundering and anti-terrorist financing rules; raise capital of USD 18,000; draw up a realistic business plan; hold frequent board meetings in Mauritius – all of these are mandatory.

How long does the Forex license application process in Mauritius take?

It only takes 3-4 weeks to officially incorporate in Mauritius, a jurisdiction with international recognition, provided that all necessary documentation is submitted and the FSC is happy with the application and supporting documentation. If the paperwork is in order and meets FSC requirements, you can obtain a Mauritian Full Service Dealer License in as little as 6-7 months.

What are the compliance and reporting obligations for Forex businesses in Mauritius?

For forex trading in Mauritius brokers must abide by all laws and regulations, including those pertaining to auditing, reporting, transparency, and other risk management procedures, in order to be granted a trade license in Mauritius. Any individual, whether natural or legal, who transacts in securities in Mauritius is required to abide by the legal requirements. This could entail getting permission to conduct transactions, making sure they are transparent, and adhering to rules for information sharing.