In today’s evolving wealth management landscape, Mauritius foundations have emerged as a compelling alternative to traditional trust structures. Their hybrid nature - combining elements of both trusts and companies - offers flexible, robust asset protection and cultural familiarity, particularly for high-net-worth individuals from civil law jurisdictions.
As global families seek greater control, transparency, and succession planning tools, the Mauritius foundation is increasingly being recognised as a preferred vehicle.
Historical Context and Legal Framework
The concept of foundations was formally introduced in Mauritius through the Foundations Act 2012. This legislation expanded the jurisdiction’s wealth management toolkit, complementing the pre-existing Trusts Act 2001. While trusts had long been a staple of common law jurisdictions, their adoption in civil law countries remains limited due to conceptual unfamiliarity and concerns over control. The introduction of foundations addressed this gap, offering a structure that is legally recognised as a separate entity—capable of owning assets, entering contracts, litigating in its own name and providing for succession planning.
Mauritius foundations can be established for both charitable and non-charitable purposes or a mix of both. They are governed by a charter, and articles if so required, and managed by a council, with the option to appoint protectors and beneficiaries. Importantly, they are not required to be regulated by the Financial Services Commission unless they hold a Global Business Licence, which adds flexibility and confidentiality to their use.
Why Choose Foundations Over Trusts?
The choice between a foundation and a trust often hinges on legal tradition, control preferences, and the nature of the assets involved. Trusts require the settlor to transfer control of assets to a trustee; relinquishing control under a trust can be a deterrent for clients in civil law countries or cultures where retaining authority over family wealth is paramount.
Foundations, by contrast, offer a structure where the founder can retain influence through the council and charter, while still achieving asset protection and succession planning goals. They are particularly attractive for clients who prefer a corporate-style governance model, with clear roles and responsibilities. The legal personality of a foundation also simplifies asset ownership and management, especially for tangible assets like real estate or intellectual property. The foundation is also a perpetual vehicle, while the Mauritius discretionary trust has a duration of 99 years.
From a tax perspective, Mauritius foundations offer notable efficiencies. Non-resident foundations are taxed only on Mauritius-sourced income, while resident charitable foundations approved by the Mauritius Revenue Authority enjoy full tax exemption. This flexibility allows for strategic planning across jurisdictions, especially for families with global footprints.
Current Trends and Adoption
Since their introduction, Mauritius foundations have gained traction among international families, entrepreneurs, and wealth managers. This growth reflects rising demand for structures that combine privacy with transparency, control with governance, and flexibility with compliance. Foundations meet these needs by offering a tailored approach to wealth structuring, often in combination with other vehicles such as trusts, companies, and family offices.
Mauritius’ reputation as a stable, well-regulated International Financial Centre has further bolstered confidence in its structures. With the Judicial Committee of the Privy Council (JCPC) in the UK as the final court of appeal for Mauritius, investors are guaranteed unbiased protection in their affairs. The jurisdiction continues to attract clients from Africa, Asia, and Europe seeking comprehensive solutions for succession planning, philanthropy, and asset protection.
How We Can Help
At Trident Trust, we offer a full suite of services to support the establishment and administration of Mauritius foundations. Our team in Mauritius combines deep local expertise with global experience, ensuring that every foundation is structured to meet the founder’s objectives while complying with regulatory requirements.
We assist with:
- Formation and registration
- Liaison with lawyers for the drafting of charter, articles if any, and governance frameworks
- Provision of council members and protectors
- Ongoing administration and accounting
- Tax residency and compliance guidance
- Integration with other structures such as trusts, companies, and family offices
Whether you are planning for succession, protecting assets, or establishing a philanthropic legacy, our team is here to help you navigate the complexities with confidence.