Private Foundation in Mauritius
Flexible wealth structuring under the Foundations Act 2012.
A private foundation in Mauritius is established under the Foundations Act 2012 and combines features of both a trust and a company. Unlike a trust, a foundation is a separate legal entity with its own legal personality — it can own assets, enter contracts, sue and be sued in its own name, and transact with third parties directly. Unlike a company, a foundation does not have shareholders: its assets are dedicated to defined objects for the benefit of specified beneficiaries or for a stated purpose.
Private foundations are particularly well suited for founders from civil law jurisdictions — such as France, Belgium, Luxembourg, and continental Europe — where the foundation concept is more familiar and more readily recognised than a common law trust. They are widely used for wealth management, succession planning, philanthropy, and as holding structures for family assets. The foundation is governed by a council (similar to a board of directors), which manages the foundation in accordance with its charter and by-laws.
A secretary must be appointed, and at least one council member must be a licensed management company in Mauritius. The charter is a public document registered with the Registrar of Foundations, while the by-laws — which contain detailed beneficiary information and governance provisions — remain private and confidential. Our experienced team manages the full setup process and provides ongoing administration, ensuring full compliance with the Foundations Act 2012 and FSC requirements.
Key Features of a Private Foundation in Mauritius
Separate Legal Personality
Unlike a trust, a foundation is a distinct legal person capable of owning assets, entering contracts, and transacting in its own name. This makes it more familiar to civil law counterparties and easier to deal with in jurisdictions that do not recognise trusts.
Foundations Act 2012
The Foundations Act 2012 provides a modern, dedicated legal framework specifically designed for foundation structures. It offers clear rules on formation, governance, amendment, and dissolution, providing legal certainty for founders and beneficiaries.
Civil Law Compatibility
Foundations are particularly well understood in civil law jurisdictions where trusts are not recognised. Mauritius foundations are an effective alternative for founders from France, Belgium, Switzerland, Latin America, and other civil law countries.
Wealth Succession Planning
Foundations are an effective tool for structuring the transfer of family wealth across generations, enabling the founder to define distribution rules, governance protocols, and succession arrangements in the by-laws without the complexities of probate.
Charitable & Philanthropic Use
A foundation can be established for charitable, humanitarian, or social purposes, with income and assets applied exclusively to the defined objects. This makes it suitable for structured philanthropy and social impact investing.
Flexible Governance Structure
The foundation council can be composed of family members, independent professionals, or a combination. The by-laws can prescribe voting rights, quorum requirements, advisory committees, and the role of a supervisory council.
Privacy of By-Laws
While the foundation charter is a public document registered with the Registrar of Foundations, the by-laws — which contain detailed provisions including beneficiary information, distribution rules, and governance details — are private and confidential.
No Shareholders
A foundation has no shareholders or members. Its assets are dedicated to its stated objects. This avoids the complexities of shareholder rights, dividend distribution, and ownership transfer that arise with company structures.
Asset Holding Capability
A foundation can hold any asset class directly in its own name, including shares in operating companies, real estate, bank accounts, investment portfolios, and intellectual property, making it a versatile vehicle for asset consolidation.
Endowment & Ongoing Contributions
The founder makes an initial endowment to establish the foundation and may make further contributions over time. Third parties may also contribute, making it suitable for family members or supporters to add assets to the foundation over its lifetime.
How to Establish a Private Foundation in Mauritius
Consultation & Structuring
We discuss your objectives, asset base, beneficiary profile, and jurisdiction considerations to determine whether a foundation is preferable to a trust or company structure and design the optimal governance framework.
Charter Drafting
We draft the foundation charter — the public constitutional document — specifying the foundation's name, objects, initial endowment, and the identity of the council members. This document is registered with the Registrar of Foundations.
By-Laws Preparation
We prepare the private by-laws, which contain detailed provisions on beneficiary entitlements, distribution rules, council governance, amendment procedures, and any supervisory arrangements. These remain confidential and are not publicly registered.
KYC & Due Diligence
We conduct KYC on the founder, all beneficiaries, and proposed council members in compliance with FSC AML/CFT requirements. We collect source of funds and source of wealth documentation and verify the identity of all parties.
Registration
We submit the foundation charter for registration with the Registrar of Foundations. Upon approval, the foundation is officially incorporated as a separate legal entity under the Foundations Act 2012.
Council Appointment & Asset Endowment
The council is formally appointed, and we facilitate the founder's endowment of assets to the foundation. This may involve transferring shares, cash, property, or other assets, with proper legal documentation in each relevant jurisdiction.
Bank Account & Operations
We assist with opening a bank account in the foundation's name, establishing investment management arrangements, and setting up accounting systems to track the foundation's assets, income, and distributions.
Ongoing Administration
We provide ongoing council secretarial services, annual accounting, regulatory filings, CRS/FATCA reporting where applicable, and periodic review of the foundation's charter and by-laws to ensure continued compliance and relevance.
Requirements for a Private Foundation in Mauritius
- Full details of the founder, including certified passport and proof of address
- Details of all intended beneficiaries (names, nationalities, relationship to founder)
- KYC documentation for proposed council members
- Source of funds and source of wealth declaration for the initial endowment
- Description and valuation of all assets to be contributed to the foundation
- Proposed foundation name (three options recommended)
- Founder's objectives and instructions for distribution rules and governance (for by-laws)
- Details of any advisory or supervisory committee the founder wishes to appoint
- Information on any related structures (trusts, companies) for coordination purposes
- Bank reference letter for the founder (may be required by certain banks)
Estimated Costs of a Private Foundation in Mauritius
| Item | Estimated Range |
|---|---|
| Foundation formation (charter & by-laws) | USD 3,000 – 6,000 |
| Registration fee (government) | USD 300 – 500 |
| KYC & due diligence (per party) | USD 300 – 600 |
| Annual administration & council secretarial | USD 3,500 – 8,000 |
| Annual accounting & financial statements | USD 1,500 – 4,000 |
| Asset transfer coordination | USD 500 – 2,000 |
Frequently Asked Questions About Private Foundation in Mauritius
What is the difference between a foundation and a trust?
A foundation is a separate legal entity with its own legal personality — it holds assets in its own name and can transact directly. A trust is not a separate legal entity; it is a fiduciary relationship where a trustee holds assets on behalf of beneficiaries. Foundations are more familiar in civil law jurisdictions, while trusts are a common law concept. Both offer confidentiality and succession planning benefits.
Can a foundation be used for charitable purposes?
Yes. A Mauritius foundation can be established for charitable, philanthropic, or social purposes. The charter sets out the charitable objects and governance framework. Foundations used for charitable purposes may qualify for tax exemptions on income applied exclusively to those purposes, subject to applicable Mauritius tax law and MRA approval.
Is the foundation's charter public?
The foundation charter is registered with the Registrar of Foundations and is a public document containing the foundation's name, objects, and basic governance information. The by-laws, however, are a private document and are not registered publicly. Beneficiary information, distribution rules, and detailed governance provisions are kept confidential in the by-laws.
Can the founder maintain influence over the foundation?
Yes, within limits. The founder may serve on the council, reserve specific powers (such as the right to amend the by-laws or appoint council members), and provide guidance through the by-laws or ancillary documents. However, excessive retained control may raise questions about whether the foundation genuinely holds the assets independently, so structuring advice is important.
Does Mauritius tax foundation income?
Mauritius foundations that are tax resident may be subject to the 15% corporate tax rate on Mauritius-source income. Income applied exclusively to charitable purposes may be exempt. The tax treatment of a foundation depends on its residency status, the nature of its income, and applicable treaty provisions. Professional tax advice is recommended for each specific situation.
Can a foundation hold shares in a GBC?
Yes. A Mauritius foundation can hold shares in a Global Business Company (GBC) or any other Mauritius or foreign entity. This is a common structure for family wealth consolidation, where the foundation holds shares in an operating GBC that in turn holds the family's investment portfolio or business interests.
How long does it take to establish a foundation?
Once all documentation is complete, registration of a Mauritius foundation typically takes 2–4 weeks, including charter drafting, KYC completion, and submission to the Registrar of Foundations. The timeline may be longer if the proposed governance structure is complex or if assets in multiple jurisdictions need to be transferred.
What ongoing compliance is required?
A foundation must maintain proper accounting records, prepare annual financial statements, file annual returns with the Registrar, and comply with FSC AML/CFT requirements. CRS and FATCA reporting may apply depending on the financial accounts held. The council must meet at least annually, and minutes must be maintained. We manage all ongoing compliance as part of our administration service.