Mauritian companies can be set up for investment and asset holding, as closed-ended and open-ended funds, as SPVs for commercial and financial transactions and as trading companies. International Proximity provides advice on the appropriate structure to meet the client's needs.
International Proximity advises on the appropriate form for the client's Mauritian company and whether it should be set up as, for example, (i) an investment holding company, (ii) a collective investment scheme or (iii) a closed-ended fund.
(i) The investment holding company is the simplest type of entity which can be used for investment holding. It is a useful type of entity where there is a fund vehicle at the parent level and it is not felt necessary to reproduce the same structure, as a fund, at the Mauritian level. When shares of an investment holding company are redeemed or bought back, the solvency test has to be satisfied, unless the company satisfies the definition of an "investment company" under the Companies Act 2001.
(ii) The collective investment scheme (CIS) is an open-ended fund vehicle under the Securities Act 2005. It is exempted from the requirement to satisfy the solvency test when its shares are redeemed and so is often used for foreign institutional investment in India. Shares of a CIS have to be redeemed at NAV and there are certain licensing requirements, including the requirement to have an investment manager and custodian, which have to be satisfied.
The expert fund is a variation of the CIS which was introduced by the 2008 fund regulations and which provides for a simpler and lighter regulatory framework for a CIS whose investors are sophisticated investors.
(iii) The closed-end fund under the Securities Act 2005 is appropriate for closed-ended structures and is suitable for sophisticated investors and for investment in asset classes such as real estate.
The professional CIS, again introduced under the 2008 fund regulations, is a simpler and lighter regulatory framework for a closed-end fund that would not qualify as a CIS and therefore would not be an expert fund, but whose investors are also sophisticated investors or which is not sold to the public.
International Proximity also forms and administers trading companies and companies which can access the benefits of Mauritius' Freeport.