Forex license in Mauritius
As the financial sector in Europe becomes more and more regulated, international entrepreneurs are considering alternative jurisdictions for registering companies. The state of Mauritius is one such prospect. The main reasons for the popularity of this small territory are the loyal attitude of the government towards foreign investors, clear and stable legislation, minimum requirements for authorized capital, and document circulation.
Forex transactions are classified as financial services, therefore, they fall into the class of regulated ones. This sector of the economy is overseen by the Financial Services Commission. To provide a full range of FX dealer services, act as an intermediary when making transactions with securities, trade securities, manage client portfolios, and advise on investment issues, you need a forex license in Mauritius.
It is worth choosing this country for a number of reasons. It is much cheaper and easier to get a license here. At the same time, a member of the Forex market has the right to provide brokerage services in most of Europe, Africa, and the countries of the Asia-Pacific region. The legislation allows for higher leverage with a small deposit. The territory ranks 13th in the Doing Business ranking. The country is not included in the “black lists” of unreliable, and the time difference with Europe is only 2 hours, which is also very convenient for serving an international clientele.
Benefits of Obtaining a Forex License in Mauritius
Mauritius license provides the following advantages:
- Advantageous tax structure;
- Includes all relevant forex activity;
- Potential to capitalise on 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 the moment, there are 2 types of permits available – investment dealer without underwriting and with underwriting. The difference in the amount of the authorized capital. In the first case, it is around $250,000, in the second, it is 10 times less. An underwritten license allows you to operate as a brokerage firm under the A-Book Broker model, while the second type is suitable for a B-Book Broker.
To become the owner of the official status of a broker, you will have to incur the following costs. This is the registration of the company plus the initial capital (approximately $20,000). The state fee is small – only about $750. The annual renewal fee starts from $2,500.
Requirements for Obtaining a Forex License in Mauritius
Basic requirements for documents are standard. It is essential to supply copies of the passports of the first persons of the organization, confirm the address of the firm and obtain a recommendation for trustworthiness from the bank. If the company has been operating for at least 1 year, you must show proof of fine standing. You should also design a business plan for the next 3 years.
As in many other countries, it is imperative to have a real office on the island, as well as local citizens as directors and corporate secretaries. Of course, the company should be managed by persons with practice in the securities market and an impeccable reputation without criminal records.
Also, the national regulator asks for documentary confirmation of the sources of funds, risk management policy, and AML regulations. Requires an agreement with a liquidity provider. All companies must have a designated international auditor.
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Fintecharbor employs truly qualified advisors. We have applied for a brokerage permit. In the process, the lawyers told us about changes in legislation and tax nuances. Very high-quality consulting and legal support!
A multilingual team of experts is in touch 24/7. I don’t know when these guys sleep, but they are real pros when it comes to financing and investment. They informed us about every stage of obtaining a license and were always in communication. Everything went very smoothly, and we have already started work.
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.
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