Foundations in Mauritius

A Mauritius Foundation is a legal entity that combines elements of both a trust and a company.

Why set up a Foundation in Mauritius?

Confidentiality

The foundation offers utmost confidentiality. The founder and beneficiaries do not appear in any public records.

Tax Efficiency

A Foundation is liable to income tax in Mauritius on its chargeable income at the rate of 15% but may be subject to an effective income tax rate of 3% whey they hold a Global Business Licence. A foundation is exempt from tax if the founder and all beneficiaries are non-residents in Mauritius, or the foundation’s objective is being carried out overseas. A Foundation whose exclusive purposes or objects are of a charitable nature will also be exempt from tax in Mauritius.

Flexible Purposes

Can be used for both charitable and non-charitable purposes.

Common uses of a Foundation in?

Wealth Management

Protecting and managing family assets.

Charitable & Philanthropic Activities

Funding non-profit initiatives with structured governance.

Holding Structure

Owning shares in companies, intellectual property, or real estate.

Estate and Succession Planning

Assets are ring-fenced from claims against the founder.

Asset Protection

Assets are ring-fenced from claims against the founder.

Formation requirements for a Foundation in Mauritius

To establish a Foundation in Mauritius, the following conditions must be met:

A charter (founding document) outlining the Foundation’s purpose and governance.
A minimum of one council member (individual or corporate).
A registered office in Mauritius.
Appointment of a qualified secretary licensed by the Financial Services Commission (FSC).
Filing with the Registrar of Foundations under the Foundations Act 2012.

Key characteristics of a Foundation in Mauritius?

Separate Legal Personality

A Foundation can hold assets, enter into contracts, and sue or be sued in its own name.

Founder

The person (individual or corporate) who establishes the Foundation.

Council

Similar to a board of directors, responsible for managing the Foundation’s affairs.

Protector (Optional)

Supervises the council to ensure that the Foundation is managed according to the founder’s wishes.

Beneficiaries

Individuals or entities designated to benefit from the Foundation’s assets.

No Fiduciary Duties

The council’s duties are defined by the charter, not by fiduciary obligations toward beneficiaries.

FAQs about a Foundation in Mauritius?

Who can set up a Foundation in Mauritius?

Any individual or corporate entity - whether a resident or non-resident of Mauritius - can set up a Foundation. The founder does not need to be a Mauritian citizen, and the Foundation can be used for both domestic and international purposes.

Is a Mauritius Foundation a legal entity?

Yes, a Foundation is a separate legal person. It can hold assets, enter into contracts, sue, and be sued in its own name.

Can a Foundation be used for charitable purposes?

Yes. Mauritius Foundations can be established for both charitable and non-charitable purposes, or a mix of both. Charitable foundations often focus on education, health, or poverty alleviation.

What is the difference between a Foundation and a Trust in Mauritius?

A Foundation is a legal entity; a Trust is not.
A Foundation is managed by a Council; a Trust is managed by Trustees.
Foundations have no fiduciary duty toward beneficiaries; Trustees do.
Foundations offer more structure and transparency, whereas Trusts offer greater privacy.

Can the Founder retain control of the Foundation?

Yes, the Founder may retain certain rights or powers under the charter or by-laws, including the power to amend governing documents, appoint or remove council members, or oversee specific decisions. However, these rights must be clearly outlined.

Is the identity of the beneficiaries publicly disclosed?

No. The details of beneficiaries are not part of the public record in Mauritius, offering a high level of confidentiality and privacy.

How long does it take to set up a Foundation in Mauritius?

The process typically takes 5 to 10 business days, provided all documents are in order and regulatory approvals are promptly obtained.

Do Mauritius Foundations require a minimum capital?

There is no statutory minimum capital requirement, but an initial endowment or asset contribution is generally needed to operationalize the Foundation.

Can a Foundation own companies or real estate?

Yes. A Foundation can hold shares in companies, intellectual property, bank accounts, and real estate, both in Mauritius and abroad.

Can a Foundation be used for succession and estate planning?

Absolutely. Foundations are ideal vehicles for estate and succession planning as they allow assets to be transferred without going through probate, ensuring continuity and asset protection.

Is there a requirement to appoint a Protector?

No, appointing a Protector is optional, but it is often done for added oversight. The Protector may have powers to supervise the council or approve certain decisions.

Can the Foundation be terminated or dissolved?

Yes. A Foundation can be dissolved voluntarily by the Founder or Council, or mandatorily under law. Upon dissolution, remaining assets are distributed according to the Foundation’s charter.

How Renesis supports Foundation in Mauritius?

1. Renesis handles full foundation setup under Mauritius law, helping with:

legal incorporation,
drafting the Foundation Charter,
appointment of council members and overall governance setup
provision of resident council member
provision of registered office address
acting as Company Secretary
assist with the opening of the Foundation bank’s account
keeping of accounting records
preparation of financial statements
convening of council and founders meetings
liaison with regularity authorities
tax compliance