A Strategic Tool for Protecting and Structuring Wealth

As private wealth grows, so do the risks that come with it.

Beyond investment performance, high-net-worth individuals and families must navigate succession planning, family dynamics, regulatory change, and the increasing complexity of holding assets across borders.

Foundations have emerged as a highly effective solution to these challenges — offering asset protection, long-term control, and clarity across generations. When established in a well-regulated jurisdiction such as Mauritius, they provide both legal certainty and international credibility.

 

What is a Foundation

A foundation is a standalone legal entity created to hold and manage assets for a defined purpose or for the benefit of designated persons.

Once assets are transferred:

  • Ownership moves from the individual to the foundation
  • Assets are governed by clearly defined constitutional documents
  • Control and purpose are separated from personal ownership
  • Unlike trusts, they have their own legal personality. This makes them particularly well suited for long-term wealth structuring, succession planning, and governance.

 

Why Foundations Matter

1. Robust asset protection

By distancing personal ownership from control, foundations help shield wealth from:

  • Business and personal creditor risk
  • Matrimonial or family claims
  • Exposure arising from operating activities
  • They are especially effective for entrepreneurs and investors with concentrated or operational risk.


2. Clear and controlled succession planning

Foundations allow founders to determine — with precision — how wealth is managed and preserved over time. They:

  • Reduce reliance on local inheritance regimes
  • Minimise the risk of family disputes
  • Ensure continuity in the event of death or incapacity
  • This delivers certainty for founders and stability for   future generations.


3. Managing regulatory and political exposure

Shifts in regulation, taxation, or capital controls can materially impact private wealth.

A foundation introduces:

  • Jurisdictional diversification
  • A stable legal holding environment
  • Greater resilience to sudden policy changes

This is about preservation and planning, not circumvention.


4. A single structure for international families

For families with assets, businesses, and beneficiaries spread across jurisdictions, foundations provide:

  • Centralised governance
  • Consistency despite changes in residence or nationality
  • Long-term operational continuity


5. Purpose-driven wealth planning

Foundations are ideal for clients who want their wealth to reflect more than financial returns. They can support:

  • Family education and welfare
  • Philanthropic initiatives
  • The preservation of family values and legacy

 

Mauritius Foundations

Mauritius foundations are established under the Foundations Act 2012.

Once registered, a foundation has full legal personality and can own assets, enter into contracts, and conduct business both in and outside Mauritius. Where required, a foundation may also apply for a Global Business Licence.

Some key information about Foundations in Mauritius:

Charter

  • A foundation’s charter is mandatory written document setting forth the rules and procedures, administration, management, appointment of interested parties, acceptance of assets, distribution of income and assets to the beneficiaries, and all other important functions.
  • Charters must be signed by the founder (if natural person) or by an authorized signor for a legal entity.
  • Charters may be amended according to the terms of the charter.
  • Charters can have articles (bylaws) but those are optional.


Founder

  • A Founder is a person who empowers a foundation with its initial assets
  • A Founder can be a beneficiary and has no obligation to reside in Mauritius.


Council

  • Foundations must appoint a council who will manage and administer all assets and carry out the foundation’s purposes
  • At least one member of the council must be ordinarily resident in Mauritius.


Founder Control

The Founder will be permitted to appoint his close aides on the Council and thus retain full control over the Foundation’s assets


Secretary

  • A secretary is required to be appointed by every foundation
  • Secretaries must be local residents who will either be a Management Company, or an individual authorized by the Financial Services Commission.


Registered Office

  • Foundations must have a local registered office to receive all legal notices
  • Any change of registered office address must be filed with the Registrar


Protector

  • The founder has the option to appoint a protector with powers to oversee the Council and protect the fulfilment of the foundation’s purposes.
  • The protector can be one or more persons or legal entities (Committee of Protectors).
  • The Charter should highlight the relationship of Protector or Committee of Protectors with the Council whilst in office.
     

Taxation

Charitable Foundations
A foundation whose exclusive object is of a charitable nature qualifies as an exempt body and is exempt from income tax in Mauritius.


Non-Charitable Foundations
A resident foundation which is not charitable does not qualify for exemption and is therefore liable to income tax at the standard rate (currently 15%), subject to any applicable reliefs or partial exemptions under the Income Tax Act 1995.

A foundation is considered to be resident in Mauritius where:

  • It is registered in Mauritius; or
  • Its central management and control is exercised in Mauritius, which is the case where the founder is resident in Mauritius and a majority of the beneficiaries are resident in Mauritius.


A foundation is not a short-term solution or a tax product. It is a long-term planning tool, designed to protect wealth, family harmony, and legacy.

 

Our Services

We can assist you with the following:

  • Advisory services in relation to foundations
  • Drafting of Charter and Articles
  • Application for registration of the Foundation
  • Acting as cCouncil Member (at least a councillor to be resident in Mauritius)
  • Acting as Secretary (must be local resident who can either be a Management Company or an individual authorised by the FSC)
  • Provision of Registered Office
  • Accounting and bookkeeping services
  • AML Risk mitigation