How to set up a foundation in Mauritius?

A foundation is a non-profit organization created by one or more individuals who transfer their assets to the foundation. Foundations are increasingly used by individuals to manage and protect their assets, as they offer significant tax and legal protection. StraFin helps you understand the process of setting up your foundation in Mauritius.

How StraFin can help you create a foundation in Mauritius

StraFin simplifies the process of setting up a foundation in Mauritius by taking care of all the essential steps. For instance:

  • We take care of registering the foundation with the Registrar of Companies in Mauritius;
  • We provide comprehensive services, such as a local company secretary and registered address;
  • We facilitate the appointment of a local management company and registered agent;
  • We provide nominee founder services to ensure confidentiality;
  • And we provide annual accounting services to ensure your foundation’s regulatory compliance.

Overall, we are committed to making the process of setting up your foundation in Mauritius as smooth and efficient as possible.

Important

According to the Mauritius Foundations Act 2012, all foundations in Mauritius must have a Foundation Board to administer the foundation’s assets.

Requirements for setting up a foundation in Mauritius

The requirements for setting up a foundation in Mauritius are as follows:

  • All Mauritian foundations must end with the word “Foundation” or the equivalent in another language and may not contain the terms “limited” or “partnership”, which would generally indicate a for-profit organization.
  • Founders need to appoint a local management company as the foundation’s secretary. This company can also be a qualified local resident authorized by the Financial Services Commission (FSC) to hold such positions.
  • It is compulsory for foundations to have a registered office address in Mauritius and to appoint at least one member of the Foundation Board who is resident in Mauritius.

Why choose a foundation over a corporation or a trust?

There are many benefits to creating a foundation in Mauritius instead of a company or a trust. In fact, foundations are an ideal choice for wealth management and asset protection. Firstly, foundations in Mauritius guarantee lower compliance costs and more advantageous tax rates. They are less expensive, simpler, and quicker to set up for foreigners compared to creating a Global Business Company (GBC). Licensed companies, on the other hand, are unsuitable for this purpose due to their prohibition on providing financial services. Moreover, such companies are subject to higher tax rates due to the absence of tax exemptions.

In addition, foundations offer greater liability protection and legal certainty than trusts. As a legal entity separate from the owner, they limit the liability of advisors or owners, providing greater security. The superior continuity offered by foundations for long-term estate planning is another major benefit. Once established, they have an infinite duration that distinguishes them from trusts. In fact, trusts are generally subject to a limited period.

Foundations also benefit from Mauritius’ favorable government policies and attractive economic climate. Ranked as the best place to do business in sub-Saharan Africa, Mauritius also stands out for its low corruption level. Moreover, the government’s continuous efforts to expand financial services options, including the Mauritius Foundations Act 2012, testify to its commitment to economic growth and diversification.

Mauritius’ well-regulated and transparent financial sector also offers a conducive environment for foreign investment and securities. This stability enhances certainty and security for foundations, ensuring their compliance with European Union anti-money laundering and anti-terrorist financing laws. In short, foundations in Mauritius are an exceptional option for wealth management and asset protection, benefiting from a unique combination of tax, legal and economic advantages.

The benefits of operating a foundation in Mauritius

Our international clients choose Mauritius to set up their foundations, as the island guarantees protection and ease of long-term wealth management through efficient tax planning. Once a Mauritian foundation has been set up, you can own and manage companies, family businesses or property.

Asset protection and confidentiality

Mauritian foundations benefit from a high level of asset protection and confidentiality under Mauritian privacy laws. Information provided to the Corporate and Business Registration Department is not accessible to the public.

Tax exemptions

Mauritian foundations enjoy tax exemptions in Mauritius when the founder and beneficiaries are non-residents, and there are no inheritance or succession taxes.

Retirement planning and Mauritian residency

Setting up a foundation in Mauritius also makes it possible for foreigners to acquire Mauritian residency, providing a range of benefits, such as a high quality of life, socio-political stability, as well as modern public services and infrastructure.

Summing up

StraFin offers comprehensive, personalized support for the setting up of foundations in Mauritius. Our services range from initial registration with the Corporate and Business Registration Department to continuous management of administrative and financial aspects of your foundation. Thanks to our compliance with strict conditions and our expertise, we make the whole process more straightforward for our customers. StraFin ensures that your foundation benefits from a solid framework that complies with Mauritian legal requirements without unnecessary hassle. Contact us now to discuss your specific needs and begin your journey toward creating a successful foundation in Mauritius.