Eight reasons why you should establish a foundation in Mauritius

Mauritius took a significant step forward in 2012 by enacting the Foundations Act, enriching its plethora of wealth management tools. Combining the features of trusts and companies, this inventive legal entity offers a flexible and diversified wealth management solution, particularly suitable for people from civil law jurisdictions unfamiliar with trusts. Thanks to its expertise and international network, StraFin is a leading player in the establishment of foundations in Mauritius to meet various needs, such as asset protection and philanthropy.

Understanding the nature and importance of a Mauritian Foundation

The Mauritian foundation is a hybrid version of a trust’s legal structure and a company’s administrative ease. It suits various purposes, including but not limited to the following:

Charitable and Non-Charitable Initiatives

Mauritian foundations provide a platform for funding charitable initiatives and non-charitable causes. This enables wealthy families and individuals to contribute positively to society and leave a lasting legacy.

Thus, Foundations play a crucial role in funding and supporting various charitable initiatives and non-charitable causes, channeling resources to important causes that have a lasting impact on a particular society or community.

Continuity of the founder’s legacy

Thanks to their organized approach to the management and intergenerational transfer of wealth, foundations ensure the preservation and perpetuation of the founder’s values, goals, and principles.

This structured management allows for the continuity of philanthropic activities or specific projects initiated by the founder, ensuring a positive long-term impact on society and the beneficiary communities.

The creation of a foundation also provides a unique opportunity for the founder to leave a significant legacy and mark on the world to be remembered beyond their lifetime.

Asset insurance

Asset insurance is one of the primary benefits of setting up a foundation in Mauritius. Indeed, these entities provide a robust mechanism for asset protection against potential legal disputes or economic uncertainties.

By establishing a foundation, the founders create a legal structure that preserves the entity’s assets from the risks associated with their own personal liability or that of other business entities.

In the event of a lawsuit or financial crisis, the foundation’s assets are kept safe to fulfill its intended philanthropic or wealth management objectives. Asset insurance, therefore, provides peace of mind to the founders and beneficiaries, ensuring the long-term protection of financial and physical resources dedicated to specific causes or wealth management activities.

See also How to set up a foundation in Mauritius

Private wealth

Mauritian foundations are ideal for managing private assets by ensuring confidentiality and total control over the distribution of wealth. This allows individuals and families to manage their assets efficiently while preserving their privacy.

By establishing a foundation, founders can decide on the management and distribution of their assets while maintaining a high level of confidentiality. This approach guarantees the protection of financial and personal information while ensuring that decisions regarding the distribution of assets are made in accordance with the founders’ and their beneficiaries’ wishes.

Moreover, Mauritian foundations are deemed appropriate for the management of large assets, providing a solid and flexible structure for managing diversified and complex portfolios. Thus, founders can benefit from professional and efficient asset management while maintaining their privacy and control over their assets.

Optimizing expenses

The optimization of expenses is another crucial aspect of Mauritian foundations. Thanks to strategic fund management, foundations are entitled to significant tax benefits through strict adherence to legal frameworks and international agreements. Foundations can thus maximize their financial efficiency while complying with legal requirements and taking advantage of various opportunities within the global tax environment.

Retirement solutions

Mauritian foundations can play an essential role in providing retirement solutions. They provide retirees with financial security by supporting pension schemes, thus ensuring a stable income and peace of mind during this important stage of life. Founders can, therefore, plan their retirement with confidence, knowing that the Foundation will take care of their financial needs.

By contributing to the retirees’ financial security, foundations also contribute to creating a more stable and prosperous society where individuals can enjoy their retirement years serenely.

Intellectual property management

Thanks to their centralized governance model, foundations provide an ideal framework for the ownership and management of intellectual property rights. This approach allows for efficient and consistent management, protection and optimal use of intellectual assets. As custodians of intellectual property rights, Mauritian foundations play a crucial role in preserving and enhancing these strategic assets, helping stimulate innovation and economic development.

Diversification of assets

Foundations have the ability to hold a variety of assets, such as real estate or financial instruments, to optimize investment portfolios. This approach allows the breakdown of risk and enhances returns by taking advantage of different classes of assets and their potential performance.

Foundations can achieve their long-term financial goals by investing in a diversified range of assets while minimizing the risks associated with market volatility. The diversification of assets, therefore, plays an essential role in the preservation and growth of foundations’ capital, ensuring their viability and ability to effectively support their philanthropic and asset management missions.

Summing up

For further information, check out our LinkedIn post “Wealth Management – The Strategic Potential of Mauritius Foundations“. To benefit from StraFin’s in-depth expertise in Mauritian foundations, contact us now.