Introduction of the Global Shared Services License
Globalisation has enabled international companies to redesign and optimise their business processes. Over the years, many of these organisations have shifted their shared services functions to jurisdictions like Mauritius, where they can achieve more efficiency both in terms of cost and expertise.
In a bid to implement a framework for this business model which is increasingly being used by PE-backed corporate service providers having an international footprint, the Financial Services (Global Shared Services) Rules 2022 (hereinafter referred to as the “Global Shared Services Rules” or the “Rules”) were introduced in January 2023.
The Rules do not apply to holders of Management License issued under Section 77 of the Financial Services Act.
The salient requirements of the Global Shared Services Rules are tabled below:
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Requirements |
Remarks |
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Global Shared Services - Permitted Activities |
1. Records keeping 2. Financial Statements preparation 3. Invoicing and Payment of Bills 4. Periodic regulatory filings 5. Administration of Board proceedings 6. Tax support services 7. Debt collection 8. Data capture and reporting 9. Other services as may be approved by the Financial Services Commission
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Eligibility for application |
An entity whose main activity is to provide at least 3 of the above-mentioned services to a related entity (i.e. an entity forming part of the same Group) providing financial services outside of Mauritius
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Board of Directors |
Should comprise of at least 2 resident directors (1 executive and 1 non-executive)
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Physical Presence / Office |
Yes – required
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Employment and Expenditure |
Employ staff proportionate to the size, nature and complexity of its services
Incur expenditure proportionate to its activities
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Bank Account |
Its principal bank account should be in Mauritius
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Insurance Cover |
Professional indemnity cover is required and should commensurate with nature, scale and complexity of its services
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Internal control, Risk Management and Corporate Governance & Business Continuity /Disaster Recovery
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Required |
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Can the holder of a Global Shared Services License outsource any work?
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Yes – only those ancillary to the above-mentioned services |
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Can holder of a Global Shared Services License hold any other licenses, authorisations or approvals? |
No – unless as approved by the Financial Services Commission |
If you require any information on the Rules, you may reach out to us on bd@mitcoworld.com