Mauritius: Mauritius Regulatory Update

Last Updated: 19 August 2019
Article by Sharmilla Bhima

This is the first in a series of of Mauritius Regulatory Alerts in which we bring you an overview of the latest legal and regulatory developments in the offshore world, with a particular focus on Mauritius.

As a competitive offshore jurisdiction of choice, Mauritius continues to grow steadily to further promote its capabilities and opportunities to investors. This first edition captures new measures since 1 January 2019. As a result of the National Budget 2019-2020 which was tabled recently before the Mauritian National Assembly, it is anticipated that there will be further changes to the regulatory offshore landscape.

There have been a number of regulatory updates to the Mauritian legal framework across a number of sectors. The following provides a summary of these updates.

1. Non-Citizens (Employment Restriction) Exemptions (Amendment No. 2) Regulations 2019:

An amendment to the Non-Citizen (Employment Restrictions) Exemptions Regulations, published through GN 55 of 2019, removed foreign spouses of Mauritian citizens from the category of non-citizens who were exempted from the requirement of a work permit for working in Mauritius.
The new regulations will only apply for non-citizens being spouses of Mauritian nationals who have been residing and working in Mauritius after the 8th of March 2019, and a moratorium of 3 months is granted to employers to obtain a permit in respect of such non-citizens under the Non-Citizens (Employment Restriction) (Work Permit) Regulations 2017.

2. Immigration (Amendment) Act 2019:

The amendments brought to the Immigration Act apply retrospectively. Any person, not being a citizen but who enjoys the status of resident by being the spouse of a citizen, should not have been a prohibited immigrant at the time of becoming a spouse.

Furthermore, the definition of "prohibited immigrant" has been extended to include:

(i) persons who, from information or advice which in the opinion of the Minister is reliable information or advice, are likely to be undesirable inhabitants of, or visitors to, Mauritius; and

(ii) persons whose presence in Mauritius, from information or advice which in the opinion of the Minister is reliable information or advice, is likely to be prejudicial to the interests of defense, public safety, public order, public morality or public health.

3. Companies (Amendment of Schedule) Regulations 2019:

The proceedings at meetings of shareholders has been amended regarding the written notice of time and place of a meeting of shareholders which shall be sent to every shareholder entitled to receive notice of the meeting and to every director, secretary and auditor of the Company to not less than 21 days (previously 14 days) before the meeting.

4. Financial Services (Global Business Corporations) Rules 2019:

FSC rules made by the Financial Services Commission (FSC) under sections 71 and 93 of the Financial Services Act 2007.

A corporation shall apply for a global business license or authorised company if the majority of its shares are held or controlled by a non-citizen of Mauritius and such corporation proposes to conduct or conducts business principally outside Mauritius or with such category of persons as may be specified in the FSC Rules. However, since the 1 January 2019, the FSC has issued new rules which reinforced the government's objective to enhance business processes by stating that it is not a mandatory requirement for the following resident corporations to apply for a Global Business License:

– Corporations incorporated before 31 December 2018 not holding GBL1 or GBL2;

– Corporations incorporated or established after 31 December 2018 and which have amongst their investors or proposed investors development financial institutions, multilateral agencies or sovereign funds, provided that the resident corporations have been granted an approval by the FSC on such terms and conditions as the FSC sees fit;

– a trust established under the Trusts Act 2001 governed by the laws of Mauritius; and

– a foundation established or registered in Mauritius under the Foundations Act 2012.

5. Financial Services (Consolidated Licensing and Fees) (Amendment) Rules 2019:

On the 8 April 2019, the FSC recognised, as security, Security Token Offerings in its legislation but subject to the FSC's prior approval save and except in respect of offering to the following investors:

a. Sophisticated Investors;

b. Expert Investors;

c. Expert Funds;

d. Professional Collective Investment Schemes; and

e. Specialised Collective Investment Schemes.

Moreover, the FSC expanded the financial business market and activities to include Custodian Services involving digital asset. The Custodian Services (Digital Assets) License fee involves a processing fee of MUR 175,000 (USD 5,000) and a fixed annual fee of MUR 350,000 (USD 10,000). Holders of the Custodian Services (Digital Asset) Licence will have to comply with the applicable framework for AML/CFT, in line with international best practices.

6. Courts (Determination of Prescribed Amount) Regulations 1995:

The threshold to lodge a case before the Mauritian courts has been amended in relation to:

a. the Intermediate Court, an amount not exceeding 2 million rupees (USD 58,000); and

b. a District Court, to an amount not exceeding 250,000 rupees (USD 7,200).

Furthermore, the Chief Justice made rules, operative as from 1 July 2019, in order to introduce mediation before the Intermediate Court. As a result of these rules, the following will apply:

  • mediation may be initiated where either the Intermediate Court or any party to the proceedings is of the view that mediation will resolve the issue(s) between the parties;
  • the entire mediation process shall remain confidential and it extends to documents submitted during the process with the result that these documents may not be used against the interests of the party which submitted them during the mediation process;
  • the time limit for the conduct of mediation is 30 days, unless an extension has been granted on the grounds that it was necessary for the success of the mediation process.
  • the magistrate of the Intermediate Court in charge of the mediation process is entitled to appoint an expert to assist on technical points. The expert shall act independently and his costs shall be borne equally by the parties;
  • the magistrate in charge of the mediation process is entitled to ask a party to provide documents and a position paper concerning the stand of the party in relation to specific issues;
  • the magistrate responsible for mediation is entitled to suggest the terms of settlement for the parties with their consent;
  • any settlement reached by the parties must be recorded in writing and signed by the parties as well as the magistrate in charge of the mediation process; and
  • in the event that the mediation process did not result in a settlement by the parties, the matter will proceed to be heard on its merits.

Importantly, the rules contemplate the scenario that the outcome of the mediation process is that parties reached an agreement on specific issues only. Under such circumstances, the matter will proceed to be heard on the merits on the issues which could not be resolved by mediation.

7. Mauritius and Kenya have taken a commitment to cooperate in environmental protection, tourism, trade and investment :

Following the visit of President Uhuru Kenyatta to Mauritius on the 9 April 2019, six agreements were signed to consolidate Mauritius Economic and bilateral relations with Kenya following the Double Taxation Agreement (DTA) signed in May 2012.

8. Kenya–Mauritius Double Tax Agreement Invalidated in Kenya and replaced by new DTA:

Kenya and Mauritius entered into a DTA in May 2012 which was published by the Cabinet Secretary for Treasury on 23 May 2014 through a Legal Notice 59 of 2014. On the 15th of March 2019, the High Court of Kenya at Nairobi delivered a long awaited judgement in the petition challenging the validity of the DTA. The Court identified the following issues for determination:

a. whether the making of the DTA was a violation of the Constitution;
b. what are the laws that govern the making of DTAs; and
c. the merits of the petition.

The High Court of Kenya, in its judgement, found that the Petition lacked merit on the issue of constitutionality of the bilateral agreement subject of the petition. It is important to note that the High Court did not invalidate the DTA because of a provision(s) contained therein but purely on the grounds that the proper procedures in bringing into force the DTA was not followed. It is therefore open to the Cabinet Secretary for Treasury to publish the legal notice afresh before parliament for scrutiny in compliance with the current law. However, a new DTA was entered into by the Mauritian and Kenyan Governments during the State visit of President Uhuru Kenyatta in Mauritius in April 2019.

9. Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation (Miscellaneous Provisions) Act 2019:

The Act was enacted with a view to meeting international standards on anti-money laundering and combating the financing of terrorism and proliferation and in order to address threats to international peace and security in relation to the following:

(i) The Banking Act 2004 – Every financial institution and holder of a license including its branches and subsidiaries operating in a group structure shall implement group-wide programmes against money laundering and terrorism financing which include procedures to ensure group level compliance, audit and anti-money laundering with the power to request customer, account and transaction information from branches and subsidiaries as necessary to perform their functions to combat money laundering and terrorism financing.
(ii) The United Nations (Financial Prohibitions, Arms Embargo and Travel Ban) Sanctions Act 2019

The The United Nations Sanctions Act 2009 requires that no person shall deal with the funds that are owned or controlled by a designated/listed party or any other assets whether tangible, intangible, actual or potential, however acquired, of a designated/listed party. Designated party has been defined under the Act as a party who has committed or commits or attempt to commit, a terrorist act whereas a listed party means any party listed by or under the authority of the United Nations Security Council.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions