Enabling high-net-worth clients to retain control of their assets while keeping maintenance costs to a minimum, Client Directors, Jimmy How Saw Keng and Kenny Curpen continue to explore how the Mauritius Foundation presents a suitable alternative to trusts and private trust companies (PTC).
Mauritius Foundations: Giving flexibility for carrying charitable and non-charitable activities
Asian and African HNWIs in several civil code jurisdictions have the ingrained perception that a Foundation is meant for charitable causes only. It is so because, in most cases, their home jurisdiction does not cater for the setting up of Foundations for non-charitable purposes. There a number of benefits of establishing a Mauritius Foundation, including:
- Based on the Mauritius Foundation Act 2012, a Mauritius Foundation allows for the conduct of charitable as well as non-charitable activities such as estate planning (wealth and succession planning) and commercial activities (trading of goods and services, holding of investments, intellectual property or luxury assets, etc.).
- A Mauritius Foundation also permits the founder to appoint his close aides on the Council and thus retain full control over the Foundation's assets.
- Unlike a PTC, a Mauritius Foundation does not have to be established as a GBL Company or as an AC.
- They are not regulated by the FSC and is not subject to OECD BEPS substance criteria, audit requirement and annual regulatory fees.
With regard to tax, a Mauritius Foundation may elect to be tax-exempt if the founder and beneficiaries are non-resident in Mauritius. Owing to its inherent characteristics and the provisions of the law, the Mauritius Foundation presents an ideal alternative to Trust / PTC for high-net-worth clients wishing to retain control of their assets while minimising the annual maintenance cost of their structures.
As Mauritius aims to become a recognised wealth management jurisdiction, the Mauritius Foundation is set to attract the attention of a growing regional high-net-worth market segment already confident in the capabilities and reputation of the jurisdiction.
Ocorian works in partnership with your trusted advisors and family office to preserve and protect your wealth. We have extensive experience in establishing and maintaining a range of wealth management structures across several jurisdictions, including the setting up and administration of foundations, trusts and private trusts companies. Learn more about our private wealth services here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.