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Finance & Tax — Mauritius

Cash Management and Treasury Services

For Mauritius holding companies, family offices and investment vehicles, optimising idle cash through structured treasury management — including short-term investment, currency hedging and liquidity monitoring — adds meaningful value alongside tax and operational efficiency.

Mauritius structures frequently accumulate cash balances from dividend receipts, loan repayments, investment exits or operational flows awaiting deployment. Without active cash management, this liquidity sits in low-yielding current accounts. Our cash management and treasury service assists clients in implementing an investment mandate appropriate for the structure's risk profile, time horizon and currency requirements — whether that means term deposits, money market funds, short-duration bonds or other liquid instruments available through Mauritius banks and investment platforms. We coordinate with the client's investment advisers, banks and trustees to ensure that cash is optimally deployed within the constraints of the structure's constitutional documents and any regulatory requirements.

Cash Management and Treasury Services

Treasury Policy and Investment Mandate

We assist in drafting a treasury policy and investment mandate for the entity, specifying permitted instruments, counterparty credit quality requirements, maximum concentrations, currency limits and target liquidity levels. This policy is adopted by the board and guides all cash deployment decisions.

Short-Term Cash Investment

We coordinate with the company's bank to place cash into higher-yielding short-term instruments — term deposits, notice accounts, money market funds or government treasury bills — appropriate to the entity's risk appetite and cash flow requirements. We monitor maturity dates and reinvestment requirements.

Liquidity Management

We maintain a cash flow calendar for the entity, projecting upcoming liabilities — service fees, tax payments, investment calls, dividend distributions — against available cash balances, and alerting management where liquidity shortfalls or surpluses are anticipated. This forward-looking view avoids both operational disruption and missed investment opportunities.

Multi-Currency Management

For entities with income, expenses and liabilities in multiple currencies, we maintain a currency exposure report and assist in implementing currency hedging arrangements where material mismatches exist. We coordinate with the entity's bank treasury desk for spot, forward and option contracts as appropriate.

Intercompany Loan Management

Where a Mauritius holding company deploys cash through intercompany loans to subsidiaries, we manage the loan documentation, disbursement scheduling, interest accrual, repayment tracking and transfer pricing review to ensure that the financing arrangement is properly documented and economically appropriate.

Cash Flow Reporting

Monthly cash management reports are prepared for the board and beneficial owner, showing opening and closing balances, cash movements by category, investment returns on deployed cash, and a forward-looking 12-month cash flow forecast. This reporting integrates with the entity's broader management accounting.

Bank Account Sweep and Pooling Arrangements

For groups with multiple Mauritius entities or accounts, we can implement notional pooling or physical sweep arrangements to centralise excess cash into a master account, maximising interest earned on aggregate balances while maintaining appropriate legal separation between entities. These arrangements are coordinated with the group's principal banker in Mauritius and documented to satisfy transfer pricing and economic substance requirements.

How We Implement Your Treasury Framework

01

Treasury Diagnostic

We review the entity's existing cash balances, bank accounts, historical cash flow patterns and any existing investment or treasury arrangements. We identify idle cash, sub-optimal placements and currency mismatches, producing a short diagnostic report with immediate recommendations.

02

Policy and Mandate Drafting

We draft a treasury policy and investment mandate tailored to the entity's risk profile, liquidity requirements and constitutional constraints. We present this to the board for discussion and adoption — ensuring that all subsequent cash management activity is governed by a clear, board-approved framework.

03

Bank and Platform Setup

We liaise with the entity's bank and any investment platforms to establish the agreed instruments — term deposit facilities, money market fund accounts, sweep arrangements. Where additional counterparties are required, we assist with the onboarding and KYC process.

04

Initial Deployment

We execute the initial cash placement in accordance with the approved mandate — placing excess liquidity into term deposits or money market funds, establishing any currency hedges required, and setting up the cash flow calendar with all known upcoming obligations.

05

Ongoing Monitoring and Reporting

We monitor the portfolio on an ongoing basis — tracking maturities, reinvesting proceeds, adjusting positions to reflect changes in the entity's liquidity needs, and delivering the monthly cash management report to the board. Annual reviews of the treasury policy are conducted to ensure continued appropriateness.

Key Requirements

  • Board-approved treasury policy and investment mandate
  • Authorised investment counterparties listed and approved
  • Cash flow forecast template maintained and updated monthly
  • All investment instructions authorised in accordance with the signatory mandate
  • Intercompany loan agreements executed, registered with relevant authorities where required, and transfer pricing compliant
  • Monthly bank reconciliation and cash management report provided to directors
  • Annual review of treasury policy by the board

Indicative Annual Fees

Fees depend on the number of entities, volume of transactions, complexity of currency exposures and frequency of reporting. All fees are exclusive of bank charges and third-party investment platform costs.
Item Indicative range
Treasury policy drafting and mandate setup (one-off) USD 1,500 – 3,000
Cash management and monitoring (single entity, simple) USD 2,400 – 5,000 per year
Cash management with multi-currency hedging coordination USD 5,000 – 10,000 per year
Group treasury management (3+ entities, sweep/pooling) USD 10,000 – 22,000 per year

Frequently asked questions

What returns can a Mauritius company earn on deposited cash?
Returns depend on currency, duration, counterparty credit quality and market conditions. In the current rate environment, USD term deposits at Mauritius banks offer rates broadly comparable to international equivalents. For longer durations or higher-quality instruments, money market funds and short-duration bond funds are also accessible through Mauritius investment platforms.
Is investment income from cash management taxable in Mauritius?
Interest earned by a GBC from foreign sources qualifies for the 80% partial exemption under the Mauritius Income Tax Act, resulting in an effective Mauritius tax rate of 3%. Interest earned from Mauritius-based deposits is subject to withholding tax at source, but this may be offset against the company's overall tax liability. Trusts and foundations have their own specific treatment, which we assess on a case-by-case basis.
Can a Mauritius trust also use cash management services?
Yes. Trust cash management is particularly important where the trustee holds significant liquid assets pending investment decisions by the protector or investment manager. We provide cash management services for trusts in coordination with the appointed trustee and investment adviser.
Do you provide investment advice?
We do not provide regulated investment advice. Our cash management service is limited to treasury management — cash placement in bank deposits and money market funds, currency management and cash flow reporting. For portfolio investment management, we work with the client's appointed investment managers or can introduce specialist Mauritius-based investment advisers licensed by the FSC.
How does cash management help with Mauritius economic substance requirements?
Active, board-governed treasury management — documented through a formal policy, board resolutions and regular reporting — demonstrates that genuine decision-making occurs in Mauritius. This supports a GBC's economic substance profile for the purposes of the FSC's substance requirements and reduces the risk of challenge by treaty partner tax authorities. Cash management is not a substitute for substance, but it is an important component of a properly governed Mauritius structure.
The information on this page is provided for general guidance only and does not constitute legal, tax or regulatory advice. Always seek professional advice specific to your situation.