Mauritian Foundation

We also have the expertise required for the setting and administration of Foundation.
structure
Mauritian Foundation

Structure

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.

 
advantages
Advantages

Advantages

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.

 

Taxation
Taxation

Taxation

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

2007.

 

Foundations may be used in cross-border structures that fall under two categories: charitable and non-charitable

Charitable

A charitable Foundation has as its exclusive purpose or object:

  •  The relief of poverty
  •  The advancement of education,
  • The advancement of religion,
  • The protection of the environment,
  • The advancement of human rights and fundamental freedoms, or
  • Any other purpose beneficial to the public in general.

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:


  • Asset Protection: An asset protection Foundation will allow the founder to protect and preserve his assets from future creditors by placing the property and/or into a foundation so that the founder no longer has ownership of the endowed property and such property is therefore not available for creditors.
  • Shari’a Compliance: Since Foundations (as compared to trusts) are better understood by investors from civil law jurisdictions, foundations can be very useful in Sharia compliant structures. A Sharia qualified investment advisor is appointed as a member of the Council, the decision-making body of the Foundation.
  • Asset Holding and Succession Planning: A Foundation holds a number of underlying companies which, in turn, own diverse assets. Ownership of these assets is no longer with the founder, and the foundation can last in perpetuity.
  • 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.