The FSC says that, in future, provided all documentation is submitted correctly with an application, it will in future skip the 'Letter of Intent' stage of the application process and proceed directly to the issue of a licence.

The circular includes checklists of the documentation that is normally required, and a further checklist of documentation required for Category 1 Global Business Licence applications for Collective Investment Schemes, Private Equity Funds, Venture Capital Funds, Investment Companies, CIS Manager, and Investment Adviser/Managers.

Comments on the proposed licensing procedures and checklists should reach the Commission on or before 31 December 2006.

The Mauritius Financial Services Commission also recently issued a Circular to clarify its new rules for the issuance of Tax Residence Certificates. In an attempt to head off pressure from India to change the countries' Double Tax Avoidance Agreement, the government had announced that it will tighten up the rules, and in future will issue them for only one year at a time.

The Circular makes it clear that, while TRCs will be issued only after all requisite annual returns have been filed, this will not apply to new Global Business Companies, which would not have reached their first reporting deadline.

TRCs will in future be issued in relation to a specified Double Tax Agreement (suggesting that Certificates for some countries may be harder to get - India, anyone?).

Applications for TRCs lodged prior to the date of the Circular (3rd October) will be dealt with under the old rules.

The move to tighten up is also linked to the recent signing of a Protocol to the China-Mauritius DTAA. The Protocol amends the Capital Gains and Exchange of Information Articles of the DTAA, making harder for Mauritius based companies investing in China to get capital-gains tax exemption. It will come into force after both countries have completed the necessary internal legal procedures and notified each other of its completion.