Mauritius: Mauritius Captive Industry

Last Updated: 20 July 2016
Article by Marc Hein

1. Describe the current Mauritius captive industry

Although Mauritius is a well-known international financial hub, the captive industry has failed to develop as expected, especially due to a lack of effective legislation. The legislative framework for captives has been in place since 2001 when the Financial Services Development Act 2001 provided the foundation for the captive insurance industry in Mauritius. This was later followed by the Financial Services Act 2007 and the Insurance Act 2007; designed for the local insurance industry, under which captive insurance was operating.

This flashback reveals that the captives industry, a decade ago lacked a robust regulatory framework that would regulate its establishment and practice more concretely. However, in 2015, the Mauritius captive industry underwent major changes with the adoption of the Captive Insurance Act 2015. The new Act whose main purpose is to provide an efficient regulatory framework to the captive insurance industry is indeed a stepping stone for companies wishing to gear their business focus in establishing their own captives and be self-insured for the ultimate purpose of managing their risks more efficiently.

With the implementation of the new Captive Insurance Act 2015, the captive industry in Mauritius shall be more efficiently regulated by the Financial Services Commission.

2. What are the proposed changes? When is it set to come into law?

The Captive Insurance Act 2015 came into force on the 16th January 2016.

The adoption of the new law has brought changes that shall enhance the efficiency of the captive industry in Mauritius. The new Act only applies to "pure captives" meaning; the business of undertaking liability restricted to the risks of parent and affiliated corporations.

The Insurance Act 2005 which was previously governing captives has been duly amended and the enactment of the Captives Insurance Act 2015 provides for changes such as:

  • The Second Schedule to the Act amends the Income Tax 1995 to provide for an attractive tax holiday for a period not exceeding ten years on income derived by captive insurers.
  • The licensed captive insurer which will be a corporate resident of Mauritius will also benefit from the Double Taxation Agreements (DTA) and the Investment Protection and Promotion Agreements (IPPA's) enjoyed by Mauritius internationally.
  • The Act only regulates 'first party' and not 'third party' captives for now. Captives under the Act will only be able to underwrite or reinsure general insurance business and not long term life insurance business.

3. How will the changes impact the captive insurance industry in Mauritius?

Mauritius is today a well-known international financial hub which holds high international standards and complies with the OECD rules. The adoption of the Captive Insurance Act 2015 shall bring more value and more substance to its financial and corporate services sector. These changes will definitely bring a positive impact on the Mauritian economy and will enhance its international reputation. Mauritius also has in place specific legislation allowing for protected cell companies under the Protected Cell Companies Act 1999. The protected cell legislation complements well the development of the captive industry.

4. What are the advantages of Mauritius and how are the proposed changes expected to make Mauritius more competitive?

Mauritius has positioned itself as the gateway to Africa and holds major attributes for doing business such as:

  • Being an attractive, secure and competitive location for cross-border investment.
  • Being a stepping stone for foreign investment in both African & Asia.
  • Always been at the top of investment indices for good governance and ease of doing business in Africa.
  • Offering low corporate tax and attractive fiscal policies
  • Having in place a network of Double Taxation Avoidance Agreements with many countries
  • Having in place 38 bilateral Investment Promotion and Protection Agreements
  • Providing qualified labour force in a favourable time zone

Mauritius holds a modern, efficient and well regulated financial services centre where the rule of law, democracy and political stability prevail. Its jurisdiction guarantees confidentiality in legitimate banking and business transactions. Mauritius has a strong international presence on the international platform as being a country cooperating with international organizations such as the OECD, FATF as well as the United Nations and its agencies. Moreover, Mauritius also has a comparative advantage since there is no capital gains tax, withholding tax on outbound payments or tax on dividends.

Amongst others, the entry of the Captive Insurance Act 2015 provides a more regulated framework for the captive insurance industry, and furthermore will be a plus for the diversification of the financial services sector in Mauritius. The adoption of the Captives Insurance Act 2015 will also enhance competition within the captives industry in Mauritius.

5. Do you expect to see an increase in captives being licensed in Mauritius after the update?

There will definitely be an increase in the number of captives, especially for those aiming at the African continent. The Financial Services Commission is currently preparing an amendment to the Captive Insurance Act 2015 to allow the registration of "third party captives" and the Financial Services Promotion Agency has already started marketing Mauritius as a captive insurance hub.

In the coming years, the popularity of captive industries is expected to increase even more among stakeholders in Mauritius. In any event, we have no choice than to diversify the financial and corporate services industry of Mauritius; hence, this is a good timing for the enactment of the legislation.

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
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