CIS Fund in Mauritius
Open-end Collective Investment Schemes for global distribution.
A Collective Investment Scheme (CIS) in Mauritius is an open-end investment fund that allows investors to subscribe and redeem units or shares at the prevailing net asset value on a regular basis. CIS funds are licensed and supervised by the Financial Services Commission under the Securities Act 2005 and the Financial Services Act 2007, providing a regulated framework that protects investor interests while enabling a wide range of investment strategies. Mauritius offers two primary CIS categories: the standard CIS, which may be distributed to retail investors and is subject to full FSC disclosure and conduct requirements, and the Professional CIS, which is available exclusively to sophisticated or professional investors and operates under a lighter regulatory framework with greater investment flexibility.
CIS funds are suitable for equity, fixed income, balanced, money market, and alternative investment strategies. GBC-licensed CIS funds can access Mauritius's network of 45 double taxation agreements in force (MRA, 2026) and the partial exemption system on qualifying foreign-source income โ subject to meeting the applicable substance conditions โ making Mauritius a tax-efficient domicile for funds investing in treaty partner countries. The combination of FSC regulation, DTA access, a familiar English common law framework, a cost-effective operating environment, and Mauritius's strategic location between African and Asian markets makes it a compelling domicile for international fund managers targeting both asset classes and geographies.
Our team manages the full CIS setup process โ from structuring and FSC application to fund launch and ongoing administration.
Key Features of a Collective Investment Scheme (CIS) in Mauritius
Open-End Liquidity Structure
Investors can subscribe and redeem at NAV on a regular dealing day basis, providing transparency and liquidity. The dealing frequency โ daily, weekly, or monthly โ is specified in the fund's prospectus and determined by the liquidity profile of the underlying investments.
Securities Act 2005 Regulation
CIS funds are licensed and supervised by the FSC under the Securities Act 2005, providing a robust regulatory framework that gives institutional investors, distributors, and regulatory counterparties confidence in the fund's oversight and governance.
Retail and Professional Distribution
Standard CIS funds may be distributed to retail investors, subject to FSC disclosure requirements. Professional CIS funds are restricted to sophisticated investors but offer greater flexibility in terms of investment strategies, concentration limits, and leverage.
DTA Access for GBC-Licensed Funds
CIS funds licensed as GBCs can claim benefits under Mauritius's 45 double taxation agreements in force (MRA, 2026), reducing withholding taxes on dividends, interest, and other income received from treaty partner countries, enhancing net returns to investors.
Partial Exemption on Qualifying Income
GBC-licensed CIS funds may apply the 80% partial exemption on qualifying foreign-source income categories โ foreign dividends, interest, royalties โ subject to substance requirements, potentially reducing the effective tax rate on qualifying income.
Flexible Investment Strategies
Mauritius CIS funds are suitable for equity, fixed income, balanced, multi-asset, money market, real estate, and alternative investment strategies. The investment strategy must be fully disclosed in the prospectus and fall within the scope of the FSC licence.
Multiple Share Classes
CIS funds can issue multiple share classes with different fee structures, currencies, distribution policies, or investor eligibility criteria, enabling the manager to offer a range of investment options to different investor segments from a single fund.
Variable Capital Company Option
A CIS can be structured under a Variable Capital Company (VCC), allowing multiple sub-funds with different strategies under a single legal entity with segregated assets and liabilities, reducing overhead for managers running multiple strategies.
Independent Fund Administration
FSC regulations require an independent fund administrator for CIS funds, providing investors with the assurance that NAV calculations, investor records, and regulatory filings are independently overseen rather than managed by the investment manager alone.
No Capital Gains Tax
Mauritius does not levy capital gains tax, meaning gains realised by the CIS fund on disposal of investments are generally not subject to tax at the fund level. This is a significant structural advantage for growth-oriented equity and alternative investment strategies.
How to Set Up a CIS in Mauritius
Strategy and Eligibility Review
We review the investment strategy, target investor base, and distribution plans to confirm whether a standard CIS or Professional CIS licence is appropriate and to identify any specific FSC requirements applicable to the proposed strategy.
Fund Vehicle and Structure Design
We design the fund vehicle โ standalone GBC company, VCC, or PCC โ and share class structure, advising on fee arrangements, hurdle rates, dealing frequency, and NAV calculation methodology appropriate to the investment strategy.
Service Provider Appointment
We assist in selecting and appointing the custodian, auditor, legal counsel, and investment manager. We coordinate the negotiation of service provider agreements to ensure all regulatory requirements are met and terms are commercially appropriate.
Prospectus and Document Preparation
We coordinate preparation of the prospectus or offering memorandum in compliance with FSC disclosure requirements, the fund's constitutional documents, the investment management agreement, and the custodian and administration agreements.
FSC CIS Licence Application
We compile and submit the CIS licence application to the FSC, including all required KYC documentation for promoters and key personnel. We manage all FSC queries and provide regular progress updates to the fund manager.
Licence Receipt and Operational Setup
Upon FSC approval, we set up the fund on our administration platform, open custody and bank accounts, establish the investor register, and complete all pre-launch operational preparations.
Fund Launch and Investor Onboarding
We manage the fund launch process โ receiving and processing initial investor subscriptions, completing KYC, issuing confirmation statements, calculating the initial NAV, and coordinating with the custodian for the first investment cycle.
Ongoing Administration and Compliance
We provide ongoing fund administration โ NAV calculation, investor servicing, regulatory filings, accounting, and compliance monitoring โ ensuring the fund meets all FSC requirements and investor obligations throughout its life.
Requirements for a CIS in Mauritius
- Detailed investment strategy, asset classes, geographic focus, and investment restrictions
- Target investor base and minimum subscription amount
- Proposed share class structure and fee arrangements (management fee, performance fee)
- KYC documentation for all promoters, investment personnel, and key management
- Track record or investment history of the proposed investment manager
- Details of proposed custodian and auditor (or request for assistance in selecting them)
- Risk management framework and investment risk disclosure
- Draft prospectus or PPM outline (or request for preparation assistance)
- Details of distribution channels and target jurisdictions for investor marketing
- Organisational structure of the fund management group
Estimated Costs of a CIS in Mauritius
| Item | Estimated Range |
|---|---|
| CIS structuring and FSC application preparation | USD 5,000 โ 12,000 |
| Prospectus / offering document preparation | USD 5,000 โ 15,000 |
| FSC licence fee (government) | USD 1,000 โ 3,000 |
| Annual fund administration fee | USD 18,000 โ 60,000 |
| Annual audit fee (estimated) | USD 5,000 โ 15,000 |
| Annual FSC regulatory fee | USD 1,000 โ 3,000 |
Frequently Asked Questions About CIS Fund in Mauritius
What is the difference between a CIS and a closed-end fund?
A CIS (open-end fund) allows investors to subscribe and redeem at NAV on regular dealing days, providing ongoing liquidity. A closed-end fund has a fixed term and does not offer regular redemptions โ investors commit capital for the fund's life and receive returns through distributions and final liquidation proceeds. CIS structures are better suited to liquid asset strategies, while closed-end funds are typical for private equity, real estate, and venture capital.
Can a CIS be marketed to retail investors in Mauritius?
Yes. A standard CIS licensed by the FSC may be distributed to retail investors in Mauritius and internationally, subject to compliance with the FSC's disclosure requirements and applicable distribution regulations in each target jurisdiction. Marketing to retail investors requires a fully compliant prospectus meeting all FSC content requirements.
What is a Professional CIS?
A Professional CIS is a lighter-regulated fund category available only to sophisticated or professional investors, typically defined by minimum net assets or investment amounts. It offers more flexibility in investment strategies, concentration limits, and reporting obligations, making it better suited for institutional and high-net-worth investor bases with more complex or less liquid strategies.
How are CIS distributions taxed?
The tax treatment of distributions from a Mauritius CIS fund to investors depends on the investor's jurisdiction and tax status. At the fund level, Mauritius does not impose withholding tax on dividends paid to non-resident investors. Investors should obtain tax advice in their home jurisdiction on the treatment of distributions received from a Mauritius CIS fund.
What ongoing reporting is provided to investors?
CIS investors receive regular NAV statements, periodic holding statements, transaction confirmations for all subscriptions and redemptions, annual audited financial statements of the fund, and any required tax documentation. The frequency and format of reporting are specified in the prospectus and the investor service agreement.
Is there a minimum fund size for a CIS?
The FSC does not prescribe a minimum fund size for all CIS categories, though practical economic viability typically requires a minimum AUM to cover operational costs. Certain categories may have minimum stated capital requirements. We advise on the optimal launch size and fundraising strategy for your specific fund and investor base.
Can a Mauritius CIS invest in African markets?
Yes. A Mauritius CIS fund can invest in listed and unlisted securities across African markets. Mauritius has double taxation agreements with several African countries including South Africa, Zimbabwe, Mozambique, Rwanda, and others, which may reduce withholding taxes on dividends and interest from those markets. Mauritius is a well-recognised domicile for Africa-focused funds.
What is the role of the custodian?
The custodian holds the fund's assets in safekeeping, independently of the investment manager. This separation of custody from investment management is a key investor protection requirement under FSC regulations. The custodian also performs cash monitoring and verifies that investment transactions comply with the fund's investment guidelines and the FSC licence conditions.