Closed-end FundMauritius

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A closed-end fund (CEF) can be established in Mauritius to raise a fixed amount of capital mainly outside of Mauritius through an initial public offering and subsequent closings or as private placements for the purpose of investing in a portfolio of securities, or other financial assets, real estate property or non-financial assets approved by the FSC.

A fund incorporated as a Global Business Company benefits from preferential rates available under Double Taxation Avoidance Agreements Mauritius has signed with 44 countries.

A CEF that makes a takeover offer by way of an exchange of securities or whose securities are listed on a securities exchange in Mauritius or has not less than 100 participants is subject to the reporting issuer disclosure requirements.

A CEF can also qualify as a Special Purpose Fund (SPF). The SPF is a tax-exempt entity set up as non-resident in Mauritius under the Financial Services Act to invest solely in countries that do not have treaty benefits with Mauritius. It is advisable to perform a tax and cost-benefits analysis when considering an SPF as besides being not entitled to tax treaty benefits with treaty countries, the SPF must invest primarily in tax-exempt securities and all investors shall be pension schemes or entitled to tax exemption.

SPF can also invest in Mauritius while enjoying the benefit of being tax-exempt.

tax effectiveness

Claim foreign tax credit on withholding tax suffered on foreign-source income

Opportunity to further reduce the 3% tax rate.

No capital gains tax and withholding taxes on distribution in Mauritius.

free consultation

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Very focused and responsive. The team at Blue Azurite made sure we were guided as per our business model. We were amazed by the level of professionalism and we are to looking forward to working with the team for many years to come.

Corporate client

Looking at setting up your closed-end fund in Mauritius now?