FOUNDATION SERVICES

The Parliament of Mauritius recently passed the Foundations Act (the “Act”) which aims at allowing for the setting-up of Foundations (“Foundation”) in Mauritius.

 

The Foundation is a wealth management vehicle which will appeal to clients who are based in civil law countries who are less familiar with the trust concept. Foundations have some hybrid features of a trust and a company The Act provides that a Foundation can be formed in Mauritius for such purposes as may be provided in its charter or established through a will.

 

The objects of a Foundation may be charitable or non-charitable (or both) for the benefit of a person. Furthermore, a Foundation can elect to have legal personality provided that it is duly registered with the Registrar of Companies (the “ROC”), which will be evidenced by a certificate of registration. For Foundations established by a will, there must be one founder who shall also be the testator Upon application to the Financial Services Commission (“FSC”), a Foundation can have a Global Business Licence (“GBL”) under the Financial Services Act 2007.

 

Key features

A Foundation can be established in Mauritius or elsewhere and registered in accordance with the Act

• A Foundation shall have, both in and outside Mauritius, full capacity to carry on or undertake any business activity or enter into any transaction.

• A charter of foundation must contain the following, amongst others:

  • Name of the Foundation

  • Purposes and objects of the Foundation

  • Particulars of the founder

  • Initial assets of the Foundation

  • Name and address of secretary

  • Registered office address of the Foundation

• Property of a Foundation must be managed and administered in accordance with its charter 

• In case a Foundation has a GBL, a management company must be appointed as secretary 

• Every Foundation must have a Council (the “Council”) which will administer its property and carry out its objects and at least one member must be resident in Mauritius

• Inspection of a Foundation’s register holding a GBL is not open to the general public unless approval has been given by the secretary or the FSC

• A Foundation can be either terminated by a winding up order of the court or by voluntary winding up