How to Start a Hedge Fund in Mauritius
Updated on Wednesday 20th December 2017
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A hedge fund startup in Mauritius does not have to comply with a specific rule of law regulating this type of vehicle. However, hedge funds fall under the regulations applicable to exempt funds in Mauritius, registered as professional funds or expert funds, being regulated under the Securities Regulations 2008. These type of investment vehicles represent the most common structures chosen for incorporation in Mauritius.
Advantages of opening a fund in Mauritius
Hedge funds registered in Mauritius offer a set of advantages for the investors. The procedure on how to start a fund in Mauritius is regulated by the Financial Services Commission (FSC) and the Registrar of Companies. FCS regulates both the activities of local funds and foreign investment vehicles operating on the local market, which can benefit from the stipulations of the double taxation treaties signed by the representatives of the state.
Hedge funds incorporated in Mauritius are beneficiaries of the tax exemptions on capital gains tax and the withholding tax on dividends and most of the funds are taxed at a rate of 15%.
Also, the Mauritius hedge funds can be set up as open-ended or closed-ended vehicles, both being regulated by a large set of legal acts, such as the Financial Services Act 2007 and the Securities Act.
It is important to know that most of the hedge funds set up in Mauritius are registered as professional collective investment schemes (CIS).
Onshore hedge funds in Mauritius
Foreign investors interested in how to start an investment fund in Mauritius can also set up an onshore hedge fund, which is regulated under the legislation for retail funds. The manner in which such vehicles can be offered on the local investment market is provided by the Guidelines for Advertising and Marketing of Financial Products. In this case, the offerings have to be made by a licensed investment intermediary who received authorization from the FCS, but the fund manager can also perform this procedure under specific requirements.
Investors may address to our team of affiliates in Mauritius for more details on the registration procedure available for hedge funds.