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Foundation in Mauritius – Guide 2026

September 19, 2020 - 14 min read

Table of contents

Last updated on / Mise à jour le: 30 April 2026

Key takeaways

Legal personality: A Mauritius Foundation is a separate legal entity that holds assets in its own name, offering a familiar structure for those from civil law jurisdictions.

Asset protection: The Mauritius Foundations Act 2012 protects Foundation assets from foreign forced heirship claims and creditors.

Tax efficiency: Foundations can benefit from an 80% partial exemption regime (effective tax of 3%) or be entirely tax-exempt if charitable or non-resident.

Speed of setup: The Registrar typically completes registration within 3 to 5 business days once you finalise all documentation.

Founder control: Founders can retain significant oversight by sitting on the Foundation Council or reserving specific powers in the Charter.

Redomiciliation: Foreign Foundations can seamlessly migrate to Mauritius to take advantage of its reputable International Financial Centre (IFC) status.

Mauritius has established itself as a premier International Financial Centre (IFC), strategically positioned between Africa, Asia, and Europe. While the jurisdiction has long been famous for its Trust regime, the introduction of the Foundations Act 2012 added a sophisticated dimension to its wealth management toolkit.

A Foundation in Mauritius provides a robust, transparent, and flexible alternative for those seeking to protect assets and plan for future generations.

Understanding the legal nature of a Mauritius Foundation

The Foundations Act 2012 governs foundations in Mauritius. This legislation provides the statutory backbone for the structure. It ensures that a Foundation is a valid legal person from the moment the Registrar issues its certificate of registration. Crucially, the Act was designed with modern wealth challenges in mind, offering clear rules on governance, privacy, and asset segregation.

Unlike a Trust, which is a fiduciary relationship between a Trustee and a Settlor, a Foundation is an entity that can:

own property,
enter into contracts, and
litigate in its own name.

This makes it particularly attractive to individuals from civil law backgrounds, such as those in Europe, the Middle East, or much of Africa, where the concept of “split ownership” in a Trust can be complex to navigate.

While a Mauritius Trust can have a long duration, a Foundation is naturally perpetual. It does not expire unless specifically stated in its Charter, making it a “living legacy” that can protect a family’s values and wealth for centuries.

Why choose a Foundation over a Trust and a Company?

Foundation versus Trust

A Trust is a well-established vehicle, but it is not a separate legal entity. The Trustee holds assets in their name, and the Settlor’s direct authority over those assets is substantially limited once transferred. This is a particular concern for Founders from civil law jurisdictions, including much of francophone Africa and continental Europe, where relinquishing control over family wealth is both culturally and practically difficult. The Mauritius Trusts Act 2001 makes no provision for reserved powers, which further limits the Settlor’s ongoing involvement.

A Foundation resolves both of these issues. As a fully incorporated legal entity, it holds assets in its own name and can enter into contracts and legal proceedings independently. Through the Charter, the Founder can reserve specific powers, serve on the Council, and even be named as a Beneficiary. A Foundation is also perpetual by nature, whereas a Mauritius Discretionary Trust has a maximum duration of 99 years, making the Foundation a more enduring vehicle for multigenerational wealth preservation.

Foundation versus Company

A Global Business Company (GBC) is designed for commercial activity. It is subject to a corporate tax rate of 15% and must meet ongoing economic substance requirements to maintain its tax residency status, including local directors, board meetings held in Mauritius, and prescribed levels of local expenditure. Annual audit and financial reporting obligations add further administrative complexity. These requirements are appropriate for a trading or investment business, but disproportionate for a structure whose primary purpose is to hold and protect private wealth.

A Foundation carries none of these burdens. It has no shareholders, no profit motive, and is not subject to the same substance and reporting obligations as a GBC. Its governance is built entirely around the Founder’s intentions as defined in the Charter, and its details do not appear in any public register, offering a level of privacy that a corporate structure cannot match by default. For families seeking to preserve and transmit wealth on their own terms, it is a structurally cleaner and more cost-effective solution.

What assets can a Mauritius Foundation hold?

A Mauritius Foundation owns its assets directly, not through a Trustee, which gives it a distinct advantage in asset management and succession planning. Because legal ownership rests with the Foundation itself, changes at the Council level do not affect the title of underlying assets, reducing administrative burden and cost.

Provided they are specified in the charter, a Foundation can hold:

Tangible assets including real estate, yachts, private aircraft, and art collections.
Financial assets such as shares, bonds, investment portfolios, insurance policies, and fund interests.
Business ownership stakes and intellectual property rights.
Future or contingent assets: expected inheritance or royalty streams.

This combination of legal clarity and asset flexibility makes the Mauritius Foundation one of the most practical structures available for High-Net-Worth Individuals and families.

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What are the benefits of operating a Foundation in Mauritius?

A stable, well-regulated environment

The Mauritius Foundation is governed by the Foundations Act 2012 and overseen by the Financial Services Commission (FSC), providing legal certainty and institutional credibility. Mauritius has established itself as one of Africa’s most reputable international financial centres, with a legal and regulatory framework (compliant with international standards) specifically designed to support sophisticated wealth structuring; and therefore sits as a credible jurisdiction in the eyes of banks, counterparties, and regulators worldwide.

Tax efficiency

A Foundation established in Mauritius and administered correctly can benefit from the island’s competitive tax framework, including access to its extensive network of Double Taxation Avoidance Agreements (DTAAs) with over 40 countries. There is no inheritance tax, no capital gains tax, and no gift tax in Mauritius, which significantly enhances its appeal for estate and succession planning.

Confidentiality with accountability

While Foundation details are not publicly registered in the same way as company directors, the structure still operates within a regulated environment. This strikes a balance between the privacy founders require and the transparency demanded by modern compliance standards.

Geographic and strategic positioning

Situated between Africa and Asia, Mauritius serves as a natural bridge for Founders with interests across both continents. Its time zone, bilingual professional environment, and established financial services sector make it a practical base for managing cross-border family wealth.

Flexibility in structuring

The Foundations Act 2012 allows for considerable customisation, including the ability to define objects broadly, reserve specific powers for the Founder, appoint a Protector, and tailor the charter to reflect the family’s specific values and objectives.

Uses of a Mauritius Foundation for HNWIs and corporates

Succession planning and estate planning

For international families with members living in different jurisdictions, the Mauritius Foundation acts as a unifying structure. It prevents the fragmentation of family wealth that often occurs when the assets are split among heirs in different countries with varying inheritance laws.

Asset protection and forced heirship

Mauritius law is explicit: a Foundation cannot be set aside because it contradicts the forced heirship laws of a foreign country. This “firewall” protection is a cornerstone of the Mauritius Foundations framework, ensuring that a Founder’s true intent is protected from external legal challenges.

Charitable and philanthropic endeavours

Many of our clients use Foundations to manage their global giving. A charitable Foundation can be established for the advancement of education, the protection of the environment, or the relief of poverty. These entities are highly regarded for their transparency and are automatically exempt from income tax in Mauritius.

Corporate applications (SPVs)

Beyond wealth planning, Foundations are increasingly used as “orphan entities” in corporate finance. Because a Foundation has no shareholders, it is ideal for holding assets in securitisation transactions or acting as a neutral vehicle for employee benefit schemes and pension funds.

Other uses of Foundations

Private wealth management;
Tax planning;
Pension schemes;
Housing intellectual property; and
Holding assets such as real estate (commercial or residential); shares in companies, funds, unit Trusts, investments, and insurance policies amongst others.

What are the requirements for setting up a Foundation in Mauritius?

The Founder and an initial endowment

Every Foundation must have at least one Founder, who may be an individual or a corporate entity. The Founder formally establishes the Foundation by transferring an initial set of assets into it. This endowment is a legal prerequisite; a Foundation cannot be registered without it. The Act places no restriction on the value of the initial assets transferred. Notably, the Founder’s identity does not need to be disclosed in the Charter, offering a meaningful degree of privacy.

The Founder can be a member of the Council, a Beneficiary, and the Protector.

The Charter

The Charter is the primary governing document of the Foundation. Signed by the Founder, it sets out its name, its objects, the terms under which assets are held, and the rules governing its administration and distribution. It is the most consequential document in the structure and must be drafted with precision.

The Charter can specifically reserve powers for the Founder, such as:

The power to appoint or remove Council members.
The right to approve investment strategies.
The authority to amend the objects of the Foundation.

The name

The name of a Mauritius Foundation must include the word “Foundation” or its recognised equivalent in another language. Mauritian law prohibits terms such as “Limited” or “Partnership”, as these carry distinct legal connotations associated with commercial entities.

The Council

The Council is the governing body responsible for administering the Foundation’s assets and fulfilling its stated objectives. At least one Foundation Council member must be resident in Mauritius. Individuals who are minors, undischarged bankrupts, or who hold a conviction for fraud or dishonesty are disqualified from serving on the Council.

A licensed Secretary

Every Foundation must appoint a Secretary based in Mauritius. Either a licensed Management Company (MC) or an individual formally authorised and licensed by the Financial Services Commission (FSC) must hold this position. In practice, most Foundations engage a MC, such as Sunibel, to fulfil this role alongside broader administrative responsibilities.

A registered office in Mauritius

The Foundation shall have a registered address in Mauritius, which serves as the designated location for legal correspondence and the safekeeping of statutory records. This is typically provided by the appointed MC.

Due diligence and KYC documentation

As a regulated financial structure, a Mauritius Foundation is subject to formal identity verification requirements. All principal parties (including the Council members, authorised signatories, Founder and Beneficiaries) must provide the requisite documentation, including proof of identity, proof of address, and evidence of source of funds.

Optional: A Protector

Whilst not a statutory requirement, the appointment of a Protector is a common feature in well-structured Foundations. As an independent party, the Protector oversees the Council and ensures the Foundation operates in accordance with the Founder’s original intentions. This additional layer of governance is particularly valuable in multigenerational family wealth structures.

Step-by-step: setting up a Mauritius Foundation

Phase 1: Due Diligence (KYC): We collect and verify the necessary documentation for the Founder and officers. This is a critical step to ensure the integrity of the structure.

Phase 2: Drafting the Foundation Charter: This is the most important document. It includes the name, registered office, objects, and details of the initial endowment.

Phase 3: The Articles (Optional): While not mandatory, Articles can provide more detailed rules on the distribution of assets and the internal workings of the Council.

Phase 4: Registration: The applicant submits the application to the Registrar of Foundations. Once satisfied, the Registrar issues a certificate, usually within 3 to 5 business days..

Phase 5: Asset transfer: The legal transfer of assets starts once the Foundation is “live”.

Taxation of an offshore Foundation set up in Mauritius

Resident Foundations

Subject to a flat corporate tax rate of 15%. However, Foundations that hold a Global Business Company Licence may be entitled to an 80% Partial Exemption Regime on certain income types (e.g., foreign dividends, interest, etc.), leading to an effective tax rate of 3%, provided it meets the substance requirements.

Non-resident Foundations

If the Founder and all Beneficiaries are non-residents, and the Central Management and Control are located outside of Mauritius, it may be exempt from tax on its foreign-sourced income.

No Capital Gains Tax or Withholding Tax

Mauritius does not levy capital gains tax on the disposal of assets by a foundation. Furthermore, there are no withholding taxes on distributions made to Beneficiaries, making it a highly efficient vehicle for cross-border wealth distribution.

When it comes to Charitable Foundations, they are fully exempt from income tax.

Mauritius offers a stable and transparent tax environment that is fully compliant with international standards.

How much does it cost to set up a Foundation in Mauritius?

The cost of establishing a Mauritius Foundation varies depending on the complexity of the structure, the nature of the assets involved, and the level of ongoing administration required. Costs typically fall into three broad categories.

Setup costs

Cover the drafting of the Foundation Charter and, where applicable, the Articles, legal review, and the registration fee payable to the Registrar of Foundations. For straightforward structures, this process is efficient and cost-competitive compared to equivalent jurisdictions.

Annual administration costs

Include the fees of the registered agent, Council administration, accounting, and any compliance or reporting obligations. They will also include the retainer costs of the licensed Management Company (if applicable).

Advisory fees

They apply when you engage specialist counsel to advise on tax structuring, cross-border asset transfers, or the drafting of complex charter provisions.

Mauritius compares favourably with other international financial centres, both in terms of setup costs and the speed of incorporation. For a tailored cost estimate based on your specific situation, please get in touch with one of our advisors.

Redomiciliation: Relocating your Foundation to Mauritius

One of the most powerful features of the Mauritius Foundations regime is the ability for “migration.” A Foundation currently registered in another jurisdiction is seeking a more favourable or reputable environment, it can re-domicile to Mauritius.

This process preserves the Foundation’s history, legal identity, and existing contracts, avoiding the need for a costly liquidation and re-setup. Mauritius also allows for “outward” migration if a client’s needs change in the future.

How we can help you in setting up your Foundation in Mauritius

In a market dominated by large, institutional providers, Sunibel offers a different experience. Our Swiss heritage means we approach wealth with a focus on long-term stability, meticulous attention to detail, and a commitment to absolute confidentiality.

We don’t believe in “off-the-shelf” Foundations. Our approach is bespoke; we listen to your family’s unique story and draft structures that reflect your specific values. We understand that “inclusive wealth” means respecting diverse family structures, multi-national backgrounds, and varied philanthropic goals.

Regulated by the Mauritius Financial Services Commission, our services include:

Structuring advisory: Determining if a Foundation is the right vehicle for your specific goals.
Charter & articles drafting: Creating legally sound, customised constitutional documents.
Provision of Council Members: Supplying qualified, resident professionals to satisfy local substance requirements.
FSC-Licensed secretary services: Handling all regulatory filings, registers, and compliance.
Accounting & tax compliance: Ensuring your Foundation remains in good standing with the Mauritius Revenue Authority (MRA).
Registered office in Mauritius: Providing a physical presence for your Foundation in the heart of Mauritius.

Frequently Asked Questions (FAQs) about Mauritius Foundations

1. Can I set up a Foundation through my will?

Yes. The Act allows for “testamentary Foundations”, where the Founder’s will dictates the establishment of the Foundation after their passing.

2. Who owns the assets in a Foundation?

The Foundation itself owns the assets. It is an “orphan” structure, meaning it has no owners or shareholders. This is a key feature for asset protection.

3. Is the information about my Foundation public?

While the registration of a Foundation is mandatory, the law keeps the names of the Beneficiaries and the specific list of assets private.

4. How much does it cost to maintain a Foundation?

Costs vary based on the complexity of the assets and the level of management required. Annual costs typically include government fees, secretary fees, and accounting services.

5. Can a Foundation carry out commercial activities?

Yes. A Foundation can engage in commercial activities, though many use it as a holding vehicle for shares in active trading companies.

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Disclaimer

This article is provided for information purposes only. It is not intended to provide, and should not be used for, tax or legal advice. We may put you in contact with tax and legal advisers in this regard.

Although all information and opinions contained herein have been compiled from sources believed to be reliable and trustworthy, no representation or warranty, express or implied, is made as to their accuracy or completeness, and, to the extent permitted by law, Sunibel Corporate Services Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in the article or for any decision based on it. You should not act upon the information contained in this publication without obtaining specific professional advice.

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