A Mauritius Foundation is a versatile legal vehicle that blends the best features of a trust and a company. It is ideal for wealth structuring, succession planning, asset protection, and charitable purposes. Governed by the Foundations Act 2012, the Mauritius Foundation offers high levels of confidentiality, control, and flexibility — making it a preferred choice for high-net-worth individuals, family offices, and international investors.
Key Characteristics
- A Foundation is a legal entity with separate legal personality, capable of holding assets, entering into contracts, and suing or being sued.
- It is established by a Charter and optionally guided by By-Laws, and is managed by a Council.
- Unlike a trust, a Foundation is not owned by anyone and does not issue shares — making it ideal for succession and estate planning.
- May have a Founder, Beneficiaries, and a Protector, each playing different roles in governance and oversight.
- Can be used for private benefit, charitable purposes, or both.
Common Uses
- Wealth and estate planning across generations and jurisdictions
- Asset protection from political risk or legal claims
- Family governance and intergenerational wealth transfer
- Philanthropic or charitable foundations
- Holding shares in private companies or special purpose vehicles (SPVs)
- As a succession tool in civil law jurisdictions where trusts are not recognized
Tax & Regulatory Benefits
- Tax-resident foundations benefit from Mauritius’s 15% flat corporate tax rate and may access Double Taxation Avoidance Agreements (DTAAs).
- Non-resident foundations (with no Mauritian source income) are not subject to Mauritian tax.
A Mauritius Foundation may elect to be tax resident or non-resident:
No capital gains tax, no estate duty, and no withholding taxes on distributions to non-residents.
High confidentiality: no public registry of beneficiaries, and internal governance documents are not disclosed publicly.
Governance and Setup
- Founder: Establishes the Foundation and sets its objectives.
- Council Members: Responsible for managing the Foundation in line with the Charter.
- Protector (optional): Provides oversight and ensures the Founder’s intentions are upheld.
- Secretary: Must be a licensed management company in Mauritius (such as Hammersmith Management Ltd).
- Assets may be held locally or internationally.
Why Choose a Mauritius Foundation?
- Combines the confidentiality of a trust with the structure of a company.
- Accepted in both common law and civil law jurisdictions.
- Flexible for multi-jurisdictional asset holding, succession planning, and private wealth structuring.
- Supported by a modern legal framework and politically stable environment.