An Investment Banking Licence issued by the Financial Services Commission (FSC) of Mauritius empowers financial institutions to offer a diverse array of specialised financial services. These services include underwriting, mergers and acquisitions (M&A) advisory, IPOs, and securities trading. This licence is essential for professionals to engage in sophisticated financial transactions and support the capital-raising needs of businesses.
Advantages of Applying for an Investment Banking Licence in Mauritius
5 in 1 Licence
Holders of an Investment Banking Licence in Mauritius can engage in a diverse range of activities:
- Investment Dealer (Full Service Dealer including Underwriting): Offering a full spectrum of investment services including trading, market making, and underwriting.
- Investment Adviser (Unrestricted): Providing comprehensive investment advice without restrictions.
- Corporate Finance Advisory: Specialising in corporate finance strategies, mergers and acquisitions, and capital restructuring.
- Asset Management: Managing assets on behalf of clients to achieve specific investment goals.
- Distribution of Financial Products: Distributing financial products to investors.
Investment banks play a pivotal role in helping companies raise capital by underwriting new stock issues, bond issues, and other financial instruments. This enables businesses to access the necessary funds for expansion and growth. By acting as intermediaries between issuers and investors, investment banks ensure that businesses can secure the financial resources they need to pursue strategic initiatives, invest in new projects, and drive innovation.
Tax Benefits
Mauritius offers a significant tax incentive to holders of an Investment Banking Licence with a 5-year tax holiday. This means that for the first five years of operation, licensed entities are exempt from paying corporate tax. This substantial tax cut provides the Investment Banking licensee with a unique opportunity to reinvest savings into growth and development, enhancing their competitive edge in the market.
Strategic Location and Market Access
Mauritius serves as a gateway to Africa, providing access to a market of over 1 billion people. With its membership in regional organisations like the African Union(AU), Southern African Development Community (SADC), and Common Market for Eastern and Southern Africa (COMESA), Mauritius offers unparalleled access to emerging markets in Africa. Businesses can leverage this strategic location to tap into new growth opportunities and expand their client base.
Application Process for an Investment Banking Licence
Applying for an Investment Banking Licence in Mauritius involves several steps to ensure that applicants meet the stringent regulatory requirements set by the FSC. Here’s a simplified overview of the process:
- Incorporation: The applicant must be a company incorporated under the Companies Act of Mauritius or registered as a branch of a foreign company.
- Submission of Documents: Applicants must submit various documents including the company’s constitution, corporate governance infrastructure, and internal procedures manual. These documents should demonstrate the company’s ability to prevent conflicts of interest, money laundering, and financing of terrorism, as well as protect client interests.
- Financial Resources and Management: The FSC requires evidence of sufficient financial resources, organisational structure, and management capacity.
- Minimum Capital Requirements: The applicant must maintain a fully paid minimum stated unimpaired capital of at least 50 million rupees or as determined by the FSC.
- Board of Directors: The company must have a board of directors consisting of at least five natural persons, with40% being independent directors.
- Compliance with Regulatory Standards: The applicant must comply with relevant Acts, codes, and guidelines issued by the FSC.
Don’t miss out on the opportunities that Mauritius has to offer. Contact us today to learn more about how we can help you secure your Investment Banking Licence and unlock new growth potential for your business.
