Mauritius Forex License

Acquiring a forex license in Mauritius can bring several benefits to its brokerage:

• Access to a reputable and well-regulated financial center;
• Opportunity to tap into a growing market;
• Favorable tax regime;
• Political and economic stability;
• Global recognition;
• Covers all related forex activity.

Acquiring a license in Mauritius demands compliance with strict regulatory requirements. The Financial Services Commission (FSC) is responsible for issuing licenses and sets out the following criteria for applicants:

• Capital requirements: Forex brokers must have an authorized capital of approximately USD 24,000 to obtain a license from the FSC.
• Physical presence: Company will be obliged to rent a local office and appoint at least 2 local directors which will be a direct contact of the regulator.
• Fit and proper criteria: The FSC assesses the fitness and propriety of applicants and their key personnel, such as directors and senior management, to ensure that they are of good character and have the necessary skills and experience to operate a brokerage.
• Business plan: Applicants must submit a comprehensive business plan that outlines their proposed activities, organizational structure, and compliance arrangements.
• Anti-money laundering and counter-terrorism financing (AML/CFT) measures: Forex brokers must have adequate measures to prevent money laundering and the financing of terrorism. This includes conducting customer due diligence, maintaining records of transactions, and reporting suspicious activities to the authorities.
• Technology and risk management systems: Brokers must have robust systems in place to manage the risks associated with their business, including those related to technology, operational, and economic risks.

Mauritius’s well-developed legal system provides a robust framework for forex regulation. The primary legislation governing the economic sector, including trading, is the Financial Services Act 2007 (FSA). The FSA establishes the Financial Services Commission (FSC) as the primary regulator of the financial sector in the country.

The FSC oversees and regulates brokers operating in Mauritius, including issuing requests and enforcing compliance with regulatory conditions. The FSC also has the power to impose penalties and sanctions for non-compliance.

In addition to the FSA, some other laws and regulations govern forex trading in Mauritius, including:

• Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009: This law provides a legal framework for preventing and detecting money laundering and terrorist financing activities.
• Securities Act 2005: This law regulates the issuance and trading of securities, including derivatives such as contracts.
• Companies Act 2001: This law regulates the formation, operation, and dissolution of businesses in Mauritius.
• Income Tax Act 1995: This law governs income taxation in the country, including income derived from trading.

Forex brokers operating in the country must comply with these laws and regulations and adhere to the guidelines and directives issued by the FSC. Failure to comply with regulatory essentials can result in penalties, sanctions, and revocation of the Forex license.

Mauritius’s competitive tax regime makes it an attractive destination for brokers seeking to minimize tax liabilities. The tax system in Mauritius is controlled by the Income Tax Act 1995, which provides for a flat corporate tax rate of 15% on taxable income.

In addition to the low corporate tax rate, Mauritius also offers other tax incentives for businesses, including:

• Tax holidays;
• Double taxation avoidance agreements (DTAs);
• No withholding tax on dividends;
• No capital gains tax.

It is important to note that brokers operating in the country must comply with local tax laws and regulations, including submitting tax returns and paying taxes on time. Failure to comply with tax obligations can result in penalties, interest, and other sanctions.