Mauritius foundations in 2021
Since 2003, Healy Consultants has been assisting high net worth individuals meet their individual and business financial goals. If properly structured, a Mauritius trust and foundation can be 100% foreign-owned, and legally tax-exempt.
Why set up a Mauritius foundation?
- The Mauritius Foundations Act of 2012 was introduced to enable high net-worth non-residents to conduct i) charitable activities and ii) non-charitable activities such as estate planning.
- A Mauritius foundation is an ideal vehicle to use to i) hold assets ii) hold other forms of investment and iii) carry out inheritance planning.
- A Mauritius foundation can also be used for owning private trust companies.
Key features of a Mauritius foundation
- Asset protection and privacy: Mauritius foundation is an ideal structure to facilitate the confidential management of global assets without disclosing details of the beneficiaries.
- Tax optimisation: A Mauritius foundation with either i) non-resident founder(s) or ii) a GBC1 licence are exempt from income tax for the financial year.
Requirements of a Mauritius foundation
- A Mauritius foundation must have a Charter. This is the main constitutional document governing the i) functioning of the foundation ii) reservation of rights and powers to the Founder and iii) details on the administration of assets.
- A Mauritius foundation must have a council, which oversees the administration of the assets and ensures they meet its underlined objectives as outlined in its Charter.
- Each Mauritius foundation must have at least one member who is ordinarily resident in Mauritius. Healy Consultants Group PLC will be pleased to provide our Clients with the same.
- Each Mauritius foundation is required to have a secretary. Healy Consultants Group PLC will be pleased to provide our Clients with the same.
Other important considerations regarding a Mauritius foundation
Why set up a Mauritius trust?
- A Mauritius offshore trust is attractive for family wealth management and asset protection purposes. They are also commonly used as special purpose vehicles for investment activities in Africa.
- If properly-structured, a Mauritius trust whose settlors and beneficiaries are foreign and not resident in Mauritius is legally exempt from Mauritian tax, and does not need to submit an annual tax return. Any distributions made by a Mauritius trust pays no tax in Mauritius.
- Mauritius trusts can apply for a Global Business License and enjoy access to the network of double tax agreements (DTAs) signed by Mauritius with countries around the world.
Key features of a Mauritius trust
- The most common types of trust structures in Mauritius are i) Asset protection trusts ii) Charitable trusts iii) Discretionary trusts iv) Trading trusts v) Purpose trusts and vi) Unit trusts.
Requirements of a Mauritius trust
- There is no need to register the Trust in Mauritius or appoint a local licensed trustee, although this is recommended for additional asset protection.