Foundations in Mauritius
The Foundations Act 2012 introduced a modern and flexible vehicle for wealth planning and philanthropy in Mauritius. A foundation is a legal entity with its own juridical personality, making it a compelling alternative to trusts for clients from civil law jurisdictions who may be less familiar with trust concepts.
A Mauritian foundation can be established for private wealth management purposes, charitable activities, or a combination of both. It offers the structural advantages of a corporate entity while maintaining the flexibility and confidentiality typically associated with trusts.
Key Features of a Mauritian Foundation
- Legal personality — The foundation is a separate legal entity that can own assets, enter into contracts, and take legal action in its own name
- No shareholders or members — Unlike a company, a foundation has no shareholders. It is managed by a council of foundation members
- Charter and by-laws — The foundation is governed by its charter (equivalent to a constitution) and by-laws (internal rules)
- Founder — The person who establishes the foundation and endows it with assets
- Council — The governing body that manages the foundation's affairs, similar to a board of directors
- Beneficiaries — The persons or purposes that benefit from the foundation's assets
- Guardian — An optional oversight role, similar to a trust protector
Types of Foundations
Private Foundation
Established for the benefit of named beneficiaries or a class of beneficiaries, typically used for family wealth management, estate planning, and asset protection.
Charitable Foundation
Established for charitable, educational, religious, or other public benefit purposes. Enjoys specific tax exemptions and can operate indefinitely.
Purpose Foundation
Established for a specific non-charitable purpose, such as holding a particular asset or achieving a defined objective. No beneficiaries are required.
Mixed Foundation
Combines private and charitable objectives, allowing the founder to provide for family members while also supporting philanthropic causes.
Tax Regime
| Element | Treatment |
|---|---|
| Non-resident foundation income | 0% |
| Capital gains | 0% (no CGT in Mauritius) |
| Distributions to beneficiaries | No withholding tax |
| Inheritance / estate tax | 0% (does not exist) |
| DTA access (via GBC) | 45+ agreements |
Establishment Process
- Consultation — Assessment of objectives, beneficiary structure, and the most appropriate foundation type
- Charter drafting — Preparation of the foundation charter defining the purpose, council composition, and beneficiary provisions
- Registration — Registration with the Registrar of Foundations and, if applicable, the FSC
- KYC/AML compliance — Due diligence on the founder, council members, and beneficiaries
- Asset endowment — Transfer of initial assets to the foundation
- Ongoing administration — Council meetings, accounting, regulatory filings, and beneficiary management
Foundation vs Trust
Which Structure is Right for You?
The choice between a foundation and a trust depends on your background, objectives, and the jurisdictions involved. For a detailed comparison, see our Foundation vs Trust analysis. Clients from civil law countries often prefer foundations, while those from common law jurisdictions may favor trusts.
Common Uses
- Family wealth management — Holding and managing family assets across generations
- Estate planning — Orderly transfer of wealth outside of probate proceedings
- Asset protection — Separating assets from the founder's personal estate
- Philanthropy — Establishing charitable programs and endowments
- Holding structures — Owning shares in GBCs and other companies
- Purpose vehicles — Special purpose entities for specific objectives
Sunibel Foundation Services
Sunibel Corporate Services Ltd provides comprehensive foundation establishment and administration services in Mauritius. As an FSC-licensed Management Company, we ensure proper governance, regulatory compliance, and the protection of beneficiaries' interests. Contact us for a consultation.