Mauritius Foundations: Now becoming an ideal structure for estate planning and private wealth management in Mauritius
16 February, 2015
Mauritius Private Foundation, commonly being utilized and specially appealing to High worth Individuals who find it to be an ideal structure for succession planning and private wealth management.
A foundation is basically a legal entity with hybrid features of a company and a trust. It has legal personality and fulfils similar functions as those of a trust, but with the administrative flexibility of a company. Foundations, pursuant to the law, may be set up by a charter or will, which specifies its beneficiaries, purposes and objects
A foundation has long been preferred by wealthy individuals and families as a vehicle for accomplishing their wealth and succession management strategies, corporate control and their charitable objectives.
Establishing a foundation in a reputable offshore jurisdiction such as Mauritius can afford numerous fiscal and non-fiscal advantages to a founder as well as beneficiaries.
- No forced heirship in Mauritius
- separate legal personality
- limited liability
- Managed by a foundation council which should comprise of at least one member ordinarily resident in Mauritius
- Local secretary duly licensed by the Financial services Commission should be appointed
- Books and records have to kept in Mauritius at its registered office
- Can be set up intervivos (by charter) or by will
- Can be set up for the benefit of persons, class of persons to carry out a purpose which may be charitable, non-charitable or both
- Can be re-domiciled
- Founder can be a beneficiary of the foundation
- A foundation would not be subject to being set aside by a Mauritius Court and the latter court will not recognise the validity of any claim against the property of a foundation pursuant to the law of another jurisdiction or the order of a court of another jurisdiction
- Where the founder and all the beneficiaries are non-resident it would be exempt from tax in Mauritius
- Can apply for a category one global business licence and take advantage of the treaty network of Mauritius
Uses of Private Foundations
- Accumulation & Preservation of Wealth
- Succession & Estate Planning
- Asset Protection
- Tax Planning
- As SPVs in off balance sheet transactions
- Corporate finance/asset financing
Mauritius foundation is being recognised as a very effective tool to set up vehicle because of inherent benefits that Mauritius has.
Mauritius has got compelling reasons to demonstrate that setting up a foundation in Mauritius is the best solution for your international asset protection structure.
Mauritius is an OECD member country with a respectable international image and is on the white list.
Mauritius Foundations are not subject to tax in Mauritius if the founder and all the beneficiaries or if the foundation is set up for a purpose that is being carried out of Mauritius. Besides, a Mauritius foundation may also claim tax benefits in other countries too. The foundation can be structured so as to be considered Mauritius resident for tax purposes. This enables it to claim benefits when receiving income from any other country that Mauritius has signed a double tax treaty with.
Mauritius foundation is allowed to carry any legitimate business activity and anywhere in the world.
A Mauritius foundation is affordable in terms of both setup and on-going maintenance. Professional fees in Mauritius also tend to be lower than anywhere else.
The proximity of Mauritius with emerging markets in these continents gives a relative advantage to other jurisdictions if one is targeting investments in these markets.
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