In its broadest definition, a Foundation is a legal entity operating as its own organisation through a council but without members (shareholders). It must achieve a specific purpose by means of endowment made (usually by the Founder who endows assets to the Foundation).
A Foundation has the benefit of enjoying a "Legal Personality" which accomplishes similar functions as those of a Trust, but with the administrative suppleness of a Company.
A Foundation provides a legal and legitimate means to safeguard one's assets against personal liability, high taxes and the risk of seizure. It is an ideal vehicle used for succession planning and private wealth management. Foundations are very often used when structuring the ownership of family and corporate assets and may also be established for charitable purposes.
Every Foundation shall be liable to income taxes in Mauritius at the standard rate of 15% however, it shall be exempt from income taxes in Mauritius if the Founder is a non-resident of Mauritius or holds a GBL 1 and all the beneficiaries appointed under the terms of the Charter or by Will are, throughout an income year, non-resident or hold a GBL1 licence under the Financial Services Act
be used in cross-border structures that fall under
two categories: charitable and
A charitable Foundation has as its exclusive purpose or object:
Non - Charitable
A Foundation may engage in any lawful business, including asset or investment holding and trading. Foundations are commonly used by onshore clients and intermediaries based in civil law (including Islamic law) jurisdictions in the following structures:
Investment Structure: The ownership of the assets passes to the Foundation but the founder, as a member of the Council, retains a degree of control. An investment committee which reviews the investment policy of the structure may be set up and is supervised by the Council.