Peer-to-Peer Lending Licence

Since 2017, the MIFC has launched its own regulatory framework for Peer-to-Peer (“P2P”) lending also known as crowdfunding which enables a person to lend funds through an online portal or electronic platform matching lenders and borrowers.

By virtue of having its activities being carried out substantially out of Mauritius, the P2P operator would also be required to apply for a Global Business Company (“GBC”) license in Mauritius.

Administrative aspect 

As per the Financial Services (Peer to Peer Lending) Rules 2020, companies holding a P2P Lending Licence shall:

  1. Have a minimum unimpaired stated capital of Rs 2 million or its equivalent in any other currency
  2. Be managed by a board of directors consisting of a minimum of three directors, one of whom shall be an independent director and a resident of Mauritius
  3. Establish an office and have in place relevant Information Technology infrastructure for the carrying out of its business activities within Mauritius
  4. Have a reimbursement period not exceeding 84 months
  5. Make funds available to borrowers only after the required total funding has been pooled or raised
  6. Obtain the consent of borrowers for the purpose of ascertaining their credit profiles from a credit information bureau and upon the grant of funds to the borrowers, forthwith provide particulars of the borrowing to the credit information bureau, as may be required.

The Applicant shall ensure that a lender:

  • shall not lend more than MUR 1.5 million (in the aggregate) through P2P Operators in any 12 month period, if the lender is a natural person; and
  • shall not lend more than MUR 3 million (in the aggregate) through P2P Operators in any 12 month period, if the lender is a legal person.

The lending limits shall not apply to expert investors lending through P2P Operators to borrowers who are residing in or outside of Mauritius.

The Applicant shall ensure that a borrower:

  • shall not borrow more than MUR 1 million (in the aggregate) through P2P Operators, at any time until at least one third of the amount borrowed is reimbursed, if the borrower is a natural person; and
  • shall not borrow more than MUR 5 million (in the aggregate) through P2P Operators, at any time until at least one third of the amount borrowed is reimbursed, if the borrower is a legal person.
Restrictions on activity

A P2P Operator shall be restricted from undertaking the following activities, in its own name:

  • deposit taking business, in any form;
  • lending; and
  • providing or arranging for any credit enhancement or guarantee.

 

The activities of a lender on a Peer-to-Peer Lending platform shall exclude any deposit taking business, in any form.

Taxation aspect
  • Liable to corporate tax at the rate of 15 % but P2P licensees may benefit from a relief of 80% under the Partial Exemption Regime
  • No capital gains tax
  • No withholding tax on dividend or interest in Mauritius

 

Statutory Fees
  • Application Processing Fee to Financial Services Commission: US$ 1,000
  • Annual P2P License Fees to Financial Services Commission: US$ 2,000
  • Annual Variable Fee to Financial Services Commission 0.35% of gross fees from P2P Lending Activities