Recently, The Financial Services Commission (FSC), which regulates financial services except banking and global business in Mauritius, issued a communiqué – Amendments to the Guide to a Global Business – in an attempt to position Mauritius as a jurisdiction of substance. It is estimated that 40% of the investment into India is structured through Mauritius holding companies. In addition to existing requirements, other conditions which will be considered by the FSC include inter alia: having office premises, holding assets, employing staff and using the services of local providers. The draft also proposes that listing on stock exchanges could be one of the ways of meeting so-called economic substance requirements. The GBC1s have to comply with these new requirements by 1 January 2015.
Holding companies in Mauritius may have to comply with these norms to obtain a tax residency certificate (TRC). This is a precondition for availing the benefits under the Indian-Mauritius tax-treaty. As per Circular 789 issued in 2000 by India’s Central Board of Direct Taxes, the TRC issued by the Mauritius Revenue Authority is sufficient evidence for claiming tax treaty benefits.
The new tightened regulation in Mauritius open opportunities for The Dutch Caribbean Securities Exchange to offer holding companies the possibility to list their equities and/or bonds on the stock exchange to obtain economic substance for their corporations and to comply with the amendment to the Guidelines to Global Business in Mauritius.
The DCSX is an accessible international securities exchange, supervised by the Central Bank of Curacao and Saint Martin. The DCSX listing rules and disclosure obligations are based on international standards, which allow listings and trading of all type of international securities. The DCSX offers a well regulated and recognized jurisdiction and framework that guarantees visibility for the issuers, transparent handling of securities and transmission of every listed security. The DCSX represents a suitable option for the holding companies in Mauritius to structure, to issue and to list their shares on a stock exchange abroad in order to raise foreign capital.
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