International clients are now able to incorporate foundations in Mauritius, a flexible vehicle which expands the scope of financial services industry in Mauritius. A foundation is an entity which is incorporated and has a legal personality. It has its own specific and unique features even if it has some common features with limited companies and trusts.
A foundation is formed for the purposes provided in its charter, including carrying out the objects specified therein and according to Mauritius law. It may be charitable or non-charitable or both and for the benefit of a person or a class of persons or carry out a specified purpose or both. Foundations in Mauritius may also, upon application to the Financial Services Commission (‘FSC’), hold a Global Business Category 1 License (“GBL1”) and be entitled to have access to vast DTAA network of Mauritius.
$1 initial assets
An Individual or Legal Entity
Founder may be a Councillor but not the sole Councillor
May be natural persons or legal entities
A Founder, Councillor or beneficiary may be appointed as the Protector except that a sole Councillor or sole beneficiary shall not act as a Protector
Practical Uses of Foundations
- Private relationship: For example, the founder’s wishes are not publicly registered;
- Accumulation and preservation of wealth;
- Succession and estate planning;
- Avoidance of forced-heirship rules;
- Separation of voting and economic benefits;
- Employee share option schemes;
- Pension funds;
- Charitable purposes;
- International tax planning.
- Popular with those not familiar with the concept of trusts.
- Allows individuals an element of control over how assets are managed through the appointment of a guardian.
- Separate legal personality so that it may enter into contracts in its own right.
- More flexibility in than it can be established to reflect the characteristics of either a trust or company.
- The foundation council is not accountable to the beneficiaries.
The Valsen Advantage
- Speedy, Efficient and consistent Services.
- Relentless effort to obtain bank accounts.
- Expert advice on structuring options.
- Dedicated ongoing compliance support.