Offshore Hedge Fund License

 Secqoia can assist international clients to set up Mauritius funds under Companies Act 2001 and Financial Services Act 2007. Mauritius funds are required to hold a Global Business Corporation (GBC) license and an activity license under the CIS regulations.

Over the years, Mauritius has introduced multiple regulations for the setting up of funds in the country. Coupled with low tax rates and availability of Double Taxation Avoidance Agreements (DTAAs), many investors are choosing Mauritius to set up their funds. In Mauritius, the income derived from Collective Investment Scheme (CIS) and closed-end funds enjoy 80% tax exemption.

There are two (2) types of funds in Mauritius, namely Collective Investment Funds and Closed-End Funds. It is essential for our international clients to understand the different categories of funds in order to proceed with the most suitable option.

A Collective Investment Scheme (CIS) is a scheme:

• Whose sole purpose is the collective investment of funds in a portfolio of securities or other financial assets, real property or non-financial assets as may be approved by the FSC;
• Whose operations is based on diversification of risks;
• That has the obligation, on request of the holder of securities, to redeem them at their net asset value less commission of fees; and,
• Where the participants do not have day to day control over the management of the assets.

There are in total five (5) types of Collective Investment Schemes (CIS) in Mauritius

Professional CIS

Professional CIS is exempted from most ongoing obligations provided that the shares acquired are not resold to the public and is not listed for trading on a securities exchange. You are required to notify FSC of its offering at least 15 days before the offering is made. At the same, you must file a copy of the prospectus. After the offering is concluded, you must advise FSC of the total amount and the value of shares sold. Professional CIS is required to notify FSC of any bankruptcy petitions.

Expert Fund

Expert Fund is only available to investors who make an initial investment of at least USD 100,000 from their own account. International clients can choose to appoint a licensed CIS in Mauritius or other regulated jurisdictions to manage the funds. Expert fund is exempted from many obligatory obligations from FSC.

Specialized Fund

Specialized fund is specifically used to target assets such as commodities, derivatives and real estate.

Retail scheme

Retail scheme targets retail investors and is subject to Investment Restrictions and Practices under CIS.

Global scheme

Global scheme is allowed to carry out the activities of a CIS but does not fall into specific categories such as Professional CIS, Expert Fund or Specialized Fund. Upon approval of FSC, a global scheme can appoint a CIS Manager from other regulated jurisdictions. Unlike the more specific categories, global scheme is required to adhere to most of the regulations set by FSC.

Closed-end Funds (CFE)

A Closed-end Fund (CFE) is commonly used for:

• Purchasing or subscribing to securities that have never been issued;
• Entering into agreements for the underwriting of securities;
• Distributing securities previously offered without a prospectus; and,
• Purchasing securities previously issued and held by a person, including an issuer, and where the offer or distribution is made from Mauritius or received in Mauritius.

Secqoia through CPT can help you acquire your Hedge Fund License in Mauritius and guide you through the authorization process.

Please feel free to contact us.