Although Mauritius is better known as a gateway for the structuring of investments into India and increasingly Africa, it is also increasingly being used by professional advisers and their high net worth clients as a jurisdiction of choice for private wealth management services. The enactment of the Foundations Act in 2012 has widened the choice of structures available to wealth management specialists in the context of private wealth management.
Key Features Of The Mauritius Trust | Foundation
Trusts in Mauritius are governed by the Trusts Act 2001 which allows for the setting-up of various types of Trusts. The salient features of a Mauritius Trust are:
- No registration or filing requirements;
- Anti-avoidance provisions in relation to forced heirship;
- At least one Trustee must be a regulated body;
- Extensive powers may be given to the Protector;
- Possibility to split Trusteeship into a Custodian;
- Maximum duration of 99 years;
- Non-resident trusts are tax-exempt;
- Trusts may apply for a GBC I license;
- Confidentiality is enshrined in the law.
Foundations are governed by the Foundations Act 2012 which allows for foundations to be set up to benefit persons, a class of persons or to carry out a purpose (including non-charitable purposes). The salient features of a Mauritius Foundation are:
- Has a separate legal personality;
- Foundation needs to be registered;
- Charter needs not be registered;
- The council may not be in Mauritius;
- Requirement to have a company secretary licensed by;
- the Financial Services Commission (FSC);
- Registered Office to be in Mauritius;
- Extensive powers may be given to the Protector;
- Non-resident foundations are tax-exempt;
- Foundations may apply for a GBC I license;
- Information filed in respect of offshore foundations not available for public inspections;
- Confidentiality is enshrined in the law.
Conclusion
A number of HNWI & UHNWI already use a Mauritius Trust for estate, succession planning and family office services. Foundations have some of the attractions of a trust vehicle and can thus potentially be used for purposes that trusts are used as described above. However, compared to the trust which is a common-law concept, the Foundation will appeal to clients based in civil law territories where they are less familiar with the trust concept. A Mauritius trust/foundation can be put to a number of possible uses, including but not limited to:
- Accumulation & Preservation of Wealth;
- Succession planning;
- Asset Protection;
- Tax Planning;
- Off balance sheet transactions;
- Corporate finance/asset financing;
- Securitization.
© Assad Abdullatiff TEP, LLB (Hons), LLM
Managing Director
AXIS Fiduciary Ltd
Note: This article is intended to provide general information only. It is not intended to offer, nor should it be interpreted as offering, legal advice. You must not act upon the matters referred to in it without taking specific advice.
