With the coming in force of The Foundation Act 2012 (the ‘Act’) on the 1st of July 2012, international clients are now able to incorporate foundations in Mauritius, a flexible vehicle which expands the scope of financial services industry in Mauritius.A foundation is an entity which is incorporated and has a legal personality. It has its own specific and unique features even if it has some common features with limited companies and trusts.
A foundation is formed for the purposes provided in its charter, including carrying out the objects specified therein and according to Mauritius law. It may be charitable or non-charitable or both and for the benefit of a person or a class of persons or carry out a specified purpose or both.Foundations in Mauritius may also, upon application to the Financial Services Commission (‘FSC’), hold a Global Business Category 1 License (“GBL1”) and be entitled to have access to vast DTAA network of Mauritius.
A Foundation created in Mauritius allows for, inter alia:
- Wealth protection
- Private relationship
- Being recognised in all common and civil law jurisdictions
- Holding assets which can be passed on from one generation to the next (estate planning)
- Minimizing estate taxes or other inheritance taxes
Avoidance of forced heirship rules
- Maintenance of corporate control
- Separation of voting and economic benefits
- Charitable purposes
- Charitable purposes>Used by corporations for employee benefit plans, retirement and stock option schemes, insurance plans and special financing arrangements
Every Mauritius Foundation shall have:
- A secretary which shall be a management company or be such other person resident in Mauritius as may be authorised by the Financial Services Commission.
- A Registered Office in Mauritius to which all communications and notices shall be addressed and which shall constitute the address for service of legal proceedings on the Foundation.
- A Foundation Council which shall administer the property of the Foundation and carry out the objects of the Foundation. A Foundation Council shall have at least one member who shall be ordinarily resident in Mauritius.
- A name ending with the word “Foundation” or a word in a foreign language which has the same meaning as the word “Foundation.
Non – Resident foundation is tax exempted in Mauritius.A Mauritius foundation can elect to be non-resident where the beneficiaries and settlor are non-resident.