Foundation

A Foundation is a vehicle designed to bring flexibility in the existing Mauritius corporate sphere and may be used to carry on or undertake any business or activity in or outside Mauritius, entering into any transactions and holding assets or for private wealth management and estate planning by high net worth individuals. Foundation in Mauritius are governed by the Foundation Act 2012.

A Foundation may be set up to achieve both charitable and non-charitable objects and can be either to benefit a person or class of persons or to carry out a specified purpose. It acts through its council, which is the body in charge for the administration of the Foundation’s assets and the attainment of its objects.


SALIENT FEATURES

  • Has a legal personality with a Certificate of Registration
  • Must have a secretary in Mauritius from a Management Company
  • Migration from or to another jurisdiction is possible
  • Shall keep proper accounting and other records at its registered office in Mauritius
  • Hold all property transferred to it with good title in such property
  • Council must have at least 1 member ordinarily resident in Mauritius

ADVANTAGES

  • Setting up can be through a Will
  • Control may be maintained by the founder who may be the sole member of the Council
  • The Founder may be the sole beneficiary of the Foundation
  • Is the appropriate vehicle for inheritance tax planning

FOUNDATION REGISTRATION

A Mauritius Foundation is required to be registered and issued with a Certificate of Registration by the Registrar of Companies.


FOUNDATION CHARTER

A Foundation Charter is a written document setting forth the rules and procedures, administration, management, appointment of interested parties, acceptance of assets, distribution of income and assets to the beneficiaries, and all other important functions.


CHARITABLE FOUNDATION

A Foundation shall be a Charitable Foundation where it has the following exclusive object:

  • the relief of poverty,
  • the advancement of education,
  • the advancement of religion,
  • the protection of the environment,
  • the advancement of human rights, or any other purpose beneficial to the public

TAXATION

A Mauritius Foundation can elect to be non-resident by the Council filing a declaration to that effect with the Director General of the Mauritius Revenue Authority and be exempted from all income tax. All distribution made to non-resident beneficiaries of the Foundation are also exempt income tax.