An Investment Company incorporation in Mauritius needs to be approved by the Commission before it commences business. In considering an application, the Commission needs to be satisfied about the following:
– the track record and credentials of the promoters;
– the fund structure;
– the objectives of the fund;
– the investors and the market targeted;
– types of investment the fund will be dealing in;
– the track record of the investment manager, custodian, and administrator;
– compliance with regulations in third countries, as appropriate (e.g. SEBI’s approval if investment is to be made in India).
Once the Commission is satisfied with the above, it may issue an approval in principle so as to enable all constitutive documents to be prepared and the company to be incorporated.
The Commission generally wishes to satisfy itself that, as far as possible, the administration of the fund is in Mauritius. To this end, the Fund must have a local administrator and a local auditor. The requirement that central administration is situated in Mauritius implies that:
– the accounts are kept and the accounting documents are available in Mauritius;
– the share register is kept in Mauritius;
– issues and redemptions of shares are carried out in Mauritius;
– the calculation of the Net Asset Value (NAV) is carried out in Mauritius.
– The above does not exclude the possibility of the Fund obtaining assistance for the management of its assets from an investment adviser established overseas, nor does it prevent management decisions in relation to investment and disinvestment being executed overseas.
– Also the requirement for the location of the issuance and redemption of shares in Mauritius does not preclude foreign intermediaries from participating in the placing and redemption operations as distributors or nominees. The Commission insists on the independence of the manager, the trustee and the custodian.
– In appropriate circumstances, it is also possible to establish a management or advisory company in the sector to take advantage of the beneficial tax regime.