Foundations

Considered to be an alternative vehicle to trusts, Foundations are set up to run like them while enjoying the benefits of separate legal entity, just like a corporation. Some of a Foundation’s features are:

  • It is set up to reflect the wishes of the Founder (the settlor in the classic trust)
  • The Founder can be an individual or a corporation
  • The Founder’s wishes are written in the Foundation’s Charter and Regulations
  • It has no members or shareholders
  • Foundations are set up for either charitable or family purposes, but not for profit-making purposes
  • Foundations’ lifetime can be for a fixed or indefinite time period
  • Consequently, Foundations offer a wide range of benefits, especially in terms of administrative flexibility.

Some of the advantages that they offer are:

  • High confidentiality through private relationship, for instance, the founder’s wishes are not disclosed by way of registration
  • Accumulation and protection of wealth
  • Succession and estate planning
  • Benefit from application of low tax rates (Estate, Inheritance among others)
  • Maintaining corporate control, despite being managed like a trust
  • Earning recognition as being a separate legal person in all jurisdictions
  • Possibility to hold multiple types of assets under one structure
  • Foundations are regulated by the Mauritius Foundations Act 2012 and through this legislation, Mauritius is being showcased as a platform to foster such services as wealth management services, succession and estate planning.
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