Tag Archive for: licensing strategy

Defining the appropriate licensing strategy is a critical step in structuring any regulated financial activity in Mauritius. In practice, licensing is not a procedural requirement. Iit is a defining element of how a business is structured, operated and supervised.

Regulatory authorities, including the Financial Services Commission (FSC) Mauritius, assess whether the proposed structure aligns with the nature of the activities to be conducted. As such, licensing considerations must be addressed at the outset of any structuring process.

Choosing the Appropriate Licence Category

Selecting the correct licence category is a foundational decision.

In Mauritius, regulated activities may fall under various frameworks, including:

• Investment Dealer licences
• Collective Investment Schemes (CIS)
• Investment management licences

Each category defines:

• the scope of permitted activities
• applicable regulatory requirements
• capital and compliance obligations

Incorrect selection often leads to inconsistencies between the business model and regulatory expectations, resulting in delays during the review process.

Aligning Business Model with Regulatory Framework

The business model must be structured in a way that is consistent with the applicable regulatory framework.

This requires:

• clear definition of services offered
• alignment between revenue model and licensed activities
• consistency across business plan, financial projections and supporting documentation

Regulators assess whether the structure is capable of operating within a supervised environment, not whether the concept is commercially attractive.

The Role of GBC in Licensed Structures

Global Business Companies (GBC) are commonly used in licensed structures in Mauritius.

They provide:

• tax residency
• access to treaty networks
• a regulated operational framework

However, their use requires compliance with the Financial Services Act 2007 and alignment with substance and governance expectations.

A GBC should be integrated as part of a coherent regulatory structure, not as a standalone vehicle.

Governance and Compliance Expectations

Licensing is closely linked to governance and compliance.

Regulators expect:

• effective board oversight
• clearly defined roles and responsibilities
• operational compliance frameworks
• AML/CFT alignment in accordance with the Financial Intelligence and Anti-Money Laundering Act (FIAMLA)

Governance and compliance must be operational from the outset, not implemented post-approval.

Common Structuring Errors at Pre-Application Stage

In practice, several recurring issues arise at the pre-application stage:

• misalignment between activity and licence category
• incomplete structuring prior to submission
• inconsistencies across documentation
• weak governance frameworks
• inappropriate use of GBC structures

These issues often result in extended review timelines and increased regulatory scrutiny.

Conclusion

Licensing strategy is not a final step in structuring. It is the starting point.

Defining the appropriate licence category and aligning it with the business model, governance framework and operational structure is essential to ensuring a smooth and efficient regulatory process.

In a regulated environment, structuring must follow licensing, not precede it.

Structured Support for Licensing Strategy and Regulatory Alignment
GWMS assists clients in defining licensing strategies aligned with structuring, governance and regulatory requirements. To discuss your project, contact our team on WhatsApp at (+230) 5936 4636 or request a confidential consultation.