A trust is a relationship whereby a party called a trustee holds property, for the benefit of other parties or persons, or for some purpose permitted by law.
A Foundation is governed by the Mauritius Foundations Act 2012 and is a legal entity without members and with its own structure, the ownership of which is to achieve a certain specific purpose by means of contributions made. A Foundation enjoys legal personality which fulfils related functions as those of a trust, but with the administrative flexibility of a company.
A foundation shall be a charitable foundation where it has the following exclusive purpose or object:
A Mauritius Foundation is required to be registered and issued with a certificate of registration by the Registrar of Companies (ROC).
Members of a Foundation Council have no personal title to a Foundation’s property, either as individuals or jointly as a body, and with no personal liability in the absence of fraud or negligence for any breach of that Foundation’s obligations.
The Foundation assets can consist of:
A Foundation created in Mauritius allows for, inter alia:
A foundation may apply for a GBL1 with the Financial Services Commission should it wish to be tax resident in Mauritius for the purposes of accessing the network of Double Taxation Agreements.
A Mauritius Foundation can elect to be non-resident by the Council filing a declaration to that effect with the Mauritius Revenue Authority (MRA) and be exempted from all income tax. All distribution made to non-resident beneficiaries of the Foundation are also exempt income tax.