Overview
The Mauritius Investment Dealer License (IDL) is issued by the Financial Services Commission (FSC) and authorizes firms to deal in securities, foreign exchange, contracts for difference (CFDs), and derivatives. Mauritius has established itself as a leading international financial center, particularly as a gateway to African and Asian markets.
The IDL is governed primarily by the Securities Act 2005 and the Financial Services Act 2007, which together form the regulatory backbone for capital markets activity in the jurisdiction. The FSC, established under the Financial Services Act, serves as the integrated regulator for non-banking financial services, including securities, insurance, pensions, and global business.
With an effective corporate tax rate of approximately 3% through the 80% partial exemption system, a network of 46 double taxation agreements, and relatively accessible capital requirements starting from MUR 600,000, the Mauritius IDL has become a popular choice for forex brokers, CFD providers, and securities firms seeking a credible yet cost-efficient regulatory framework.
Regulatory Framework
The regulatory architecture for investment dealers in Mauritius rests on several key statutes and the oversight of the FSC.
Primary legislation:
- •Securities Act 2005 -- defines investment dealer categories, licensing obligations, conduct of business rules, and market abuse provisions
- •Financial Services Act 2007 -- establishes the FSC, sets out licensing procedures, and governs global business corporations
- •Financial Intelligence and Anti-Money Laundering Act (FIAMLA) 2002 -- AML/CFT framework applicable to all licensees
- •Companies Act 2001 -- corporate governance and incorporation requirements
- •Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS) -- governs crypto-related activities under a separate regime
Regulator: The Financial Services Commission (FSC Mauritius) is the sole licensing and supervisory authority for investment dealers. The FSC is a member of the International Organization of Securities Commissions (IOSCO) and maintains compliance with FATF recommendations.
Licensees must operate through a Global Business Corporation (GBC) structure, incorporated via a licensed Management Company that acts as the intermediary between the firm and the FSC. The previous GBC1/GBC2 categories were replaced with the unified GBC framework following the 2018-2019 reforms.
License Types and Categories
The Securities Act 2005 defines four primary categories of Investment Dealer License, each with distinct permitted activities and capital thresholds.
1. Full Service Dealer (including Underwriting)
The most comprehensive license. Permits intermediation in securities transactions, proprietary trading, underwriting and distribution of securities, portfolio management, and ancillary investment advice. Suited for firms seeking the broadest possible scope of operations.
2. Full Service Dealer (excluding Underwriting)
Covers all activities of the full service category except underwriting and distribution. This is the most common category for forex and CFD market-maker operations, as it permits dealing as principal while maintaining a broad product scope.
3. Broker
Authorizes execution of client orders on an agency basis, portfolio management, and securities advice. This category is typically selected by firms operating STP (Straight Through Processing) or ECN models where the broker does not take the other side of client trades.
4. Discount Broker (Execution-Only)
The most limited category, permitting only the execution of client orders without any advisory services. Suited for platforms offering self-directed trading.
Some firms may also require a separate Investment Adviser license (advisory only, no dealing) or specific segment authorizations for currency derivatives and commodity derivatives.
Capital Requirements
Each IDL category requires a minimum amount of unimpaired capital to be deposited and maintained at all times. The requirements are set in Mauritian Rupees (MUR).
Minimum unimpaired capital by category:
- •Full Service (incl. Underwriting): MUR 10,000,000 (approximately USD 220,000-250,000)
- •Full Service (excl. Underwriting): MUR 1,000,000 (approximately USD 22,000-25,000)
- •Broker: MUR 700,000 (approximately USD 15,000-17,500)
- •Discount Broker: MUR 600,000 (approximately USD 13,000-15,000)
Capital must be deposited into a bank account in Mauritius prior to license issuance. The stated capital must remain unimpaired throughout the life of the license. USD equivalents fluctuate with the MUR exchange rate.
Professional Indemnity Insurance is also typically required by the FSC and is nearly always demanded by Mauritian banks. Coverage must be proportionate to the firm's business volume and risk profile.
Application Process and Timeline
The typical timeline for obtaining a Mauritius IDL is 3 to 6 months, with well-prepared applications completing in 3-4 months and more complex cases taking up to 6-9 months.
Phase 1 -- Planning and Structuring (1-2 weeks): Select the appropriate license category and design the business model, including product scope, target markets, and operational structure.
Phase 2 -- Company Incorporation (2-4 weeks): Incorporate a Global Business Corporation through a licensed Management Company. The GBL itself can be obtained within 4 working days if the application is complete.
Phase 3 -- Document Preparation (3-6 weeks): Prepare a comprehensive application package including a 3-year business plan with financial projections, AML/CFT manual, KYC policy, risk management policy, business continuity plan, complaints handling procedure, organizational chart, and trading platform technical documentation.
Phase 4 -- Capital Injection and Banking (4-8 weeks): Deposit the minimum capital and open local bank accounts. Banking setup can be a bottleneck in the process.
Phase 5 -- FSC Review (8-16 weeks): The FSC conducts an initial review over 4-8 weeks, followed by a detailed assessment period of 4-12 weeks. Applicants must respond to any queries raised during this phase.
Phase 6 -- Conditions Satisfaction and License Issuance (2-6 weeks): Satisfy any conditions imposed by the FSC and receive the license.
Key personal documents required: Certified and apostilled passport copies, proof of address, police clearance certificates, detailed CVs, professional references, and source of funds declarations for all shareholders, directors, and key personnel.
Fees and Setup Costs
FSC regulatory fees vary by license category:
Processing fees (one-time):
- •Full Service (incl. Underwriting): MUR 100,000 (approximately USD 3,000)
- •Full Service (excl. Underwriting): MUR 7,500 (approximately USD 750)
- •Broker: MUR 5,000 (approximately USD 500)
- •Discount Broker: MUR 2,500 (approximately USD 250)
Annual license fees:
- •Full Service (incl. Underwriting): MUR 290,000 (approximately USD 9,000-9,500)
- •Full Service (excl. Underwriting): MUR 75,000 (approximately USD 2,500)
- •Broker: MUR 60,000 (approximately USD 2,000)
- •Discount Broker: MUR 45,000 (approximately USD 1,500)
As of October 2024, the first annual fee is payable only upon grant of the license and is prorated based on the quarter of issuance.
Estimated professional and setup costs: USD 25,000-75,000, covering Management Company incorporation, legal fees, compliance consulting, and document certification.
Estimated annual operating costs: USD 30,000-100,000+, including Management Company fees, resident directors, MLRO, local office, annual audit, and professional indemnity insurance.
Permitted Activities
The Mauritius IDL provides access to a broad range of financial products and services under a single license.
Asset classes covered:
- •Securities (equities, bonds, and other listed instruments)
- •Spot forex and rolling spot forex
- •CFDs on forex, indices, commodities, and shares
- •Derivatives including currency derivatives and commodity derivatives (may require specific segment authorization)
- •PAMM and MAM managed account structures
- •Trading signals
Key operational flexibility:
Unlike EU jurisdictions subject to ESMA restrictions, Mauritius imposes no leverage caps and no bans on promotional activities such as deposit bonuses or trading incentives. This makes the jurisdiction particularly attractive for brokers targeting markets outside the EU.
Important limitation for virtual assets: CFDs on virtual assets or any crypto-related trading activities may require separate licensing under the Virtual Asset and Initial Token Offering Services Act 2021 (VAITOS). Firms planning to offer crypto products should confirm the applicable licensing requirements with the FSC.
Ongoing Compliance Obligations
Licensed investment dealers must maintain a comprehensive compliance program and meet regular reporting obligations to the FSC.
Reporting requirements:
- •Audited financial statements submitted annually within 6 months of financial year-end
- •Quarterly financial returns due within 1 month of each quarter-end
- •AML/CFT annual report as prescribed by the FSC
- •Suspicious transaction reports (STRs) filed with the Financial Intelligence Unit on an event-driven basis
- •Annual tax returns filed with the Mauritius Revenue Authority
- •Independent compliance reports submitted to the FSC as required
Operational obligations:
- •Maintain segregated client money accounts at all times
- •Conduct ongoing sanctions screening against UN, EU, and OFAC lists
- •Deliver regular AML/CFT staff training for all relevant personnel
- •Maintain minimum unimpaired capital continuously
- •Hold board meetings in Mauritius to satisfy substance requirements
- •Appoint and maintain a resident Compliance Officer, MLRO, and Deputy MLRO
Key personnel requirements:
- •Minimum 2 directors resident in Mauritius who pass the FSC fit and proper test
- •Compliance Officer must hold a relevant degree with 4-8 years of industry experience
- •MLRO must have at least 5 years of relevant experience, or 3 years with an AML/CFT certification (ACAMS, ICA, or equivalent)
- •Company Secretary and External Auditor registered with the Mauritius Institute of Professional Accountants
Advantages of Mauritius Licensing
Mauritius offers a compelling combination of tax efficiency, regulatory credibility, and strategic positioning.
Tax efficiency:
- •Corporate tax headline rate of 15%, reduced to an effective rate of approximately 3% through the 80% partial exemption on qualifying foreign-source income
- •No capital gains tax on securities transactions
- •No withholding tax on dividends, interest, or royalties paid to non-residents
- •Tax Residence Certificates issued within approximately 7 days to claim treaty benefits
Extensive treaty network:
- •46 double taxation agreements currently in force, with particularly strong coverage across Africa (17 African countries) and Asia
- •28+ Investment Promotion and Protection Agreements (IPPAs)
- •Signatory to the OECD BEPS Multilateral Convention
Regulatory and structural benefits:
- •OECD compliant (cooperative) jurisdiction
- •FATF-compliant AML/CFT framework
- •IOSCO member regulator
- •Relatively low capital requirements compared to EU, UK, or Australian licenses
- •No leverage caps or restrictions on broker promotional activities
- •Broad product scope under a single license (forex, CFDs, securities, derivatives)
- •English and French bilingual jurisdiction with a common law legal system
- •Strategic GMT+4 time zone bridging Asian and European trading sessions
- •Gateway position for accessing African and Asian markets
- •Established international banking presence (HSBC, Standard Chartered, Investec)
Recent Regulatory Changes
The Mauritius regulatory framework continues to evolve, with several notable updates in 2024 and 2025.
2025 developments:
- •The FSC issued the Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2025 (GN No. 51 of 2025 and GN No. 132 of 2025), updating fee structures and licensing procedures
- •Financial Services (Framework for the Imposition of Administrative Penalties) (Amendment) Rules 2025 clarified penalty and settlement processes, strengthening the FSC enforcement toolkit
- •Certain 2024 fee amendment rules were revoked (GN No. 52 of 2025), indicating ongoing refinement of the fee regime
2024 developments:
- •Effective October 1, 2024: First fixed annual fee now payable only upon grant of the license (not at application), prorated by quarter of issuance
- •Securities Act amendments expanded definitions of closed-end funds and collective investment schemes to cover money market and debt instruments
- •Finance Act amendments refined the AML/CFT framework under FIAMLA
- •Increased FSC scrutiny on genuine local substance versus brass-plate structures
- •New requirement for licensees to submit independent compliance reports
Earlier foundational changes (2018-2021):
- •Unified Global Business Corporation framework replaced the former GBC1/GBC2 categories
- •80% partial exemption regime replaced the previous deemed foreign tax credit system
- •VAITOS Act 2021 established a separate licensing regime for virtual asset service providers and crypto-related activities