Mauritius has established itself as a leading jurisdiction for the establishment and management of investment funds, particularly those targeting emerging markets in Africa, Asia, and beyond. The legal and regulatory framework for funds in Mauritius is robust, flexible, and globally aligned, offering fund promoters, managers, and institutional investors a secure and efficient platform for structuring private equity, hedge, venture capital, and mutual funds.
Legal Framework and Regulation
Funds in Mauritius are regulated by the Financial Services Commission (FSC) under the Securities Act 2005 and the Financial Services Act 2007. The two main types of funds include:
- Collective Investment Scheme (CIS) – Typically used for mutual funds and open-ended funds.
- Closed-End Funds (CEFs) – Structured for private equity, real estate, and venture capital investments.
Funds may be standalone or umbrella structures with multiple sub-funds. They can also be structured as Global Business Companies (GBCs) to benefit from Mauritius’s tax treaties.
Key Features
- Open-ended or closed-ended structures allowed
- Can be set up as a company, limited partnership, or trust
- Licensed fund managers and custodians are required for regulated funds
- Fully regulated funds may be offered to retail or sophisticated investors; unregulated or private funds may be structured for select investors with fewer compliance burdens
- Fund administration, accounting, and NAV reporting can be outsourced to licensed Mauritian firms
Tax Efficiency
- A fund structured as a GBC is taxed at a flat 15% corporate rate, but can benefit from up to 80% exemption on foreign-source income, bringing the effective tax rate to as low as 3%
- No capital gains tax, no withholding tax on dividends to non-residents
- Access to 40+ Double Taxation Avoidance Agreements (DTAAs)
- Funds electing non-residency may operate tax-free, subject to certain conditions
Advantages of a Mauritius Fund
- Strong regulatory framework aligned with OECD and IOSCO standards
- Low operational and compliance costs compared to EU or offshore hubs
- Access to experienced fund administrators, auditors, and custodians
- Ideal for targeting Africa-focused or emerging market strategies
- Flexible for private equity, hedge funds, real estate, debt, and ESG investments
How Hammersmith Management Ltd Supports Fund Setup
At Hammersmith Management Ltd, we guide you through every stage of fund setup and operation:
- Fund structuring advice (CIS, CEF, private fund)
- Incorporation and licensing with the FSC
- Drafting of offering documents and constitutive documents
- Appointment of fund managers, administrators, and custodians
- Ongoing regulatory compliance and reporting
- Substance and governance solutions to meet international standards