Mauritian Foundation

Definition

The Mauritian foundation is a legal entity endowed with legal personality, created by one or more founders who transfer assets to it for a purpose set out in its charter. Once transferred, the assets become the property of the foundation itself, and no longer that of the founder or of the designated beneficiaries. The foundation is administered in accordance with its charter and by-laws, which set out its purpose, governance, and the rights of beneficiaries. It constitutes an alternative to the trust for persons from civil-law jurisdictions, where the concept of trust is not always recognised.

Framework in Mauritius

In Mauritius, the foundation is a structure recognised under Mauritian foundations legislation and supervised by the Financial Services Commission (FSC), the regulator of non-bank financial services. Its incorporation and administration are carried out through a management company licensed by the FSC, which acts as registered agent and ensures compliance with regulatory obligations. The foundation must have a charter filed with the authorities, and may adopt more detailed by-laws, which remain confidential. A council or a protector may be appointed to oversee the actions of the administering bodies, depending on the chosen structure.

In practice

The Mauritian foundation is used to organise the transmission of family wealth, to structure the holding of assets (shareholdings, real estate, philanthropic projects), or to legally separate assets from the founder's personal estate. Setting one up requires precisely defining the foundation's purpose, identifying the beneficiaries or categories of beneficiaries, and choosing its governing bodies (council, protector, registered agent). As with any structure administered by a management company licensed by the FSC, the foundation is subject to Know Your Customer and Anti-Money Laundering (KYC/AML) procedures, and its eligibility is assessed case by case according to the situation of the founder and beneficiaries. It guarantees neither a given tax outcome nor absolute asset protection, and must never be presented as a tool for automatic optimisation or for sheltering disputed assets.

Related terms

The foundation differs from the trust in that it has its own legal personality: the trust rests on a fiduciary relationship between a trustee and beneficiaries, with no separate legal entity, whereas the foundation itself holds title to its assets. Its creation and administration, like those of a GBC or an Authorised Company, are carried out through a management company licensed by the Financial Services Commission (FSC), and involve the same Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.

Related terms