Foundation

A Foundation is a vehicle designed to bring flexibility in the existing Mauritius corporate sphere. A Foundation is appealing to clients who are in civil law countries and who may not be familiar with the concept of trust.

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Salient features of a Foundation:

  • Has a legal personality upon registration

  • Must have a secretary in Mauritius which must be a management company

  • Migration from or to another jurisdiction is possible

  • Existence is successive until dissolution

  • Management is determined by the Charter

  • Must keep accounting records

  • Auditing of financial statements is optional unless the Foundation holds a Global Business Category 1 licence

Foundation
Foundation

Advantages of setting up a Foundation

  • Setting up can be through a Will

  • Control may be maintained by the founder who may be the sole member of the Council

  • The Founder may be the sole beneficiary of the Foundation

  • Greater management flexibility through the Charter and the Council

  • Holding asset can be passed on from one generation to the next

  • Is the appropriate vehicle for inheritance tax planning

Taxation

Tax efficiency is the prominent characteristic of a Foundation. A Foundation holding a Category 1 Global Business licence may elect to be tax resident in Mauritius to benefit from the network of tax treaties which Mauritius has with 36 countries. Under the tax treaties, a Foundation is eligible to benefit from the foreign deemed tax credit of 80% on foreign source business income thus reducing the payable tax rate to 0-3%

Government fees for Foundation

Registration Fees
USD
Annual Fees
USD
Setting up 325 325
If annual fees is paid after due date - 500

If the Foundation will hold a GBC 1 Licence, the following additional fee is payable upon registration

First Annual Fee
Month in which Application is made Licence
USD
July – September 2250
October – December 1815
January – March 1375
April – June 940

Annual Fees

If Annual Fee paid on Licence
Due Date 1750
Within 1 month after due date 1925
After 1 month, but within 3 months after due date 2190
After 3 months, but within 6 months after due date 2625
After 6 months, but within 12 months after due date 3500

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