Mauritius is well-known for its banking and offshore financial services, and it’s one of the most reputable licensing jurisdictions in the world. If you’re looking to expand your payment intermediary service (PIS) business into new markets, Mauritius should be at the top of your list.
In this article, we’ll take a look at why Mauritius makes an excellent choice for PIS and what you need to do to get licensed.
Also known as Payment Intermediary Services PIS, licences issued in the island, which is known for its stability, strong regulatory framework, and pro-business environment – all of which make it an attractive destination for PIS. The jurisdiction has also been designated as a “white-listed” country by the Financial Action Task Force (FATF).
The financial procedures of Mauritius are supported by a transparent system that provides for a viable tax bracket for businesses and individuals at a single rate of 15%, which has been reduced to 10% for individuals should they meet threshold requirements. This regime has successfully generated substantive economic activities across all sectors of the Mauritian economy. The Mauritius Financial Services Act has established the island-state as an international financial services powerhouse. It’s been recognized by sophisticated professionals everywhere.
Mauritius has created the ideal business environment with taxation is at competitive rates, combined with this there are no capital gains taxes on corporations operating offshore, making it a desirable place to establish your company if you wish protect its assets from litigation or other legal proceedings abroad where they may not receive full protection under international law – which can be difficult due the country’s registration process when entering judgments into local courts.
Corporate entities may apply for licensing in respect of payment systems, clearing systems or settlement systems. Additionally, entities can offer merchant online services for electronic payments by a variety of payment methods with this licence. It must be noted that holders of a PIS licence issued by the FSC shall conduct business exclusively outside Mauritius. They are typically supported by acquiring and issuing banks in their intermediary roles.
Substance requirements include:
- A registered place of business within Mauritius
- The company has to ensure that its staffing requirement and estimated operating costs are in line with the size of business.
- A CEO and other senior officers with the relevant experience and qualifications that operate in a full-time capacity.
- Monitoring systems in place specifically but not limited to anti-money laundering, combatting the financing of terrorism, combatting the financing of terrorism and other monitoring systems in line with the size and function of the business as is reasonably expected within the payment service provider sector
To ensure that a company’s operations are being monitored and controlled effectively, the Bank of Mauritius (BoM) will often require at least 3 members on board. One of which must be independent.
The minimum capital threshold for PIS has been increased from MUR 500 000 to MUR 2 000 000 (or its equivalent in another currency).
The process of obtaining a licence from the government is both cost effective and quick.
In fact, many top payment service providers around the world have their licences issued in Mauritius!
You will need to complete the following:
- Application form as issued by the FSC
- A declaration of shareholders
- A letter of comfort from shareholders
- A letter of comfort from partnerships or body corporates
- A certified copy of the board resolution
- Regulatory requirements include:
(i) the authorisation of operators of payment systems, clearing systems or settlement systems (authorisation)
(ii) licensing of payment service providers (licence)
(iii) the form and manner for applying for an authorisation or a licence
(iv) the applicable fee for obtaining an authorisation or a licence
If you are looking to operate as an online payment provider, then the Payment Intermediary Services License is of interest. With this licence your company can offer services for accepting electronic payments by various methods including credit card or bank-based transactions using direct debit from a checking account with no additional cost involved in processing these types of funding sources! The main customer base usually consists mainly of merchants who sell through websites, trading primarily online.
However, it is that you want to function within this space we supply the insights you need to make sure you are compliant and understand fully the jurisdiction.
Loita Management Services is here to take the burden off your shoulders. We will assist you in establishing a payment service provider, the licensing process and make sure that when it comes time for transition to island life you have all the necessary support on hand.
By Shanil Ramtohul