New Legislation allows for the incorporation of Foundations in Mauritius

As many of our clients know – Middleton Katz doesn’t just focus on the Isle of Man as a jurisdiction. Putting together and administering the most effective structures for our clients often means using a mixture of different ingredients. Over the years we have built up an enviable network of reliable professional correspondents which allows us to set up and administer corporate entities internationally whatever our clients requirements.

 

Mauritius is an increasingly important jurisdiction as it benefits from an excellent range of double tax agreements; many of them focused on the growing economies in the Indian sub continent and Africa. Our correspondents in Mauritius are Imara Trust Company (Mauritius) Limited, and we are publishing the article below on their behalf…

 

The global financial and economic turmoil has caused many worlds’ High Net Worth Individuals, wealth managers and private bankers to look for alternative but trusted, well-established and less volatile jurisdictions.

 

Having sensed that concern for diversification and recognizing that the rapid changes in the wealth management industry mean constant innovation and optimisation of its product offerings, Mauritius has been proactive in furthering its position as a wealth management centre of choice for this part of the world. To this end, a new Foundations Act 2012 (the “Act”) has been enacted on 1st July 2012, thus bringing Mauritius at par with many competing jurisdictions including Jersey, Liechtenstein, Panama and Seychelles to mention but a few. This has reinforced our position as a proven centre for wealth management, estate and tax planning, asset protection, segregation of assets and registration of charities destination in countries based on the civil law system, like France and the USA.

 

It may also, upon application to the Financial Services Commission of Mauritius, hold a global business licence and may elect to be tax resident in Mauritius to benefit from the network of tax treaties which Mauritius has with 40 countries.

 

The salient features of the Mauritius Foundation are as follows:

 

(1) It could be set-up intervivos (by charter) or by will;

(2) It could be set-up to benefit persons, class of persons or to carry out a purpose which may be charitable, non-charitable or both;

(3) It would have to be managed by a Council which should comprise of at least one member ordinarily resident in Mauritius;

(4) It would require a secretary in Mauritius which would need to be licensed by the Financial Services Commission;

(5) It would need to have a registered office in Mauritius;

(6) When registered it would have a separate legal personality;

(7) It would need to keep proper books of accounts and keep its records in Mauritius at its registered office;

(8) It would not be subject to being set aside by a Mauritius Court and a Mauritius Court would not recognise the validity of any claim against the property of the Foundation pursuant to the law of another jurisdiction or the order of a court of another jurisdiction;

(9) Where the founder and all the beneficiaries are non-resident (or if set-up for a purpose, that purpose being carried out of Mauritius) it would be exempt from tax in Mauritius.

 

The Mauritius Foundations Act 2012 offers one of the most versatile and dynamic Foundations available from any jurisdiction and further promotes Mauritius as a platform for wealth management services, succession and estate planning.

 

Note: This article has been contributed by our colleagues at Imara Trust Company (Mauritius) Limited. For further information please contact:

Preetam Prayag

Chief Executive Officer

Imara Trust Company (Mauritius) Limited

1001 Alexander House, 35 Ebene Cybercity, Republic of Mauritius
Phone : +230 466 9171 I 464 9799 Fax : +230 466 0132 I 464 9798

Web: www.imara.mu

©2017 Middleton Katz Chartered Secretaries LLC is licensed by the Isle of Man Financial Services Authority

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