The Investment Dealer License in Mauritius is regulated by the Securities Act 2005 and the Securities (Licensing) Rules 2007. To conduct securities transactions or act as an intermediary, a person must be licensed as an Investment Dealer or a representative thereof by the Financial Services Commission (FSC). Only corporate entities can apply for this license.

Prior Experience:

Applicants must provide details on the following:

• Experience: Shareholders and directors must have a background in managing client money, forex trading, investment management, or financial derivatives.

• Director Track Record: Evidence of at least 3-5 years of financial performance prior to applying.

• Dealing Desk requirement: It is required to have two dealing desk officers - one senior and the other - deputy. Both should demonstrate previous dealing desk/ risk management experience in the regulated financial services for at least 4-5 years. 

Investment Dealer License Categories:

1. Full Service Dealer (including underwriting):

   • Allows intermediary activities, securities trading, underwriting, i.e. creating own securities and offering them to the public, and portfolio management.

   • Paid-up Capital: Approx. US$333,333.

2. Full Service Dealer (excluding underwriting):

   • Same as above, but excludes underwriting or distributing securities that are not traded on regulated exchanges.

   • Paid-up Capital: Approx. US$33,333.

3. Broker:

   • Executes orders for clients, manages portfolios, and offers securities advice.

   • Paid-up Capital: Approx. US$20,000.

4. Discount Broker:

   • Executes orders for clients without providing advice.

   • Paid-up Capital: Approx. US$18,000.

License Application Requirements:

The application must include the following:

1. Board resolution authorizing two members to sign the application.

2. Company constitution and documents.

3. Description of activities, products, and services offered.

4. Details of shareholders and share distribution.

5. Portfolio management contract model (if applicable).

6. Internet trading contract (if applicable).

7. Internal procedures manual.

8. Membership details with exchanges, clearing facilities, or self-regulatory organizations.

9. Anti-money laundering and conflict of interest policies.

10. Personal questionnaires for all officers, shareholders, and beneficial owners.

For an entity not yet legally constituted, draft documents may be submitted, but final approval is only granted when all documents are finalized.

Timeframe and Structure:

• Incorporation + License: Takes 4-8 months (excluding bank account opening time).

• Paid-up Capital: Varies based on the license type (typically US$33,333 for dealers market makers).

• Company Structure:

  • At least 1 shareholder (no nationality/residency restrictions).

  • 1-2 executive directors from the applicant's side, plus 2 resident non-executive directors provided by the company.

  • A head of dealing desk and an assistant (KYC required).

• Office: Must be set up within 6-12 months of receiving the license, though it can be small initially.

• Compliance: Must be done in Mauritius, either in-house or outsourced.

Additional Requirements:

• Secretary/Resident Agent: Required.

• Registered Office: Required.

• Beneficial Owner and Shareholder Details: Not part of public record.

• Director’s Details: Part of public record.

Bank Account Opening:

• Takes 3-4 weeks after providing due diligence documents and bank reference letters.

Taxation:

• A 3,4% tax is levied on net audited profits annually, starting from 2025 the rate should fall back to 3%.