Mauritian economy has certain regulations to induce business flexibility. And the dynamics result in excellent profits for both charitable & non-charitable organizations. The Foundation Act of 2012 governs the setting of a foundation under the regulations of the Register of Companies (ROC).
Potential of Mauritian Foundation
Strict rules make certain foundations suitable for specific purposes. Like –
- Wealth accumulation
- Asset Preservation
- Succession Planning
- Off-balance transaction
- Corporate financing
But no foundation can directly engage in commercial activities. Of course, special regulations can permit otherwise for specialized foundations.
Mauritian Foundation Characteristics
- It’s the property dedication to a certain entity towards a particular purpose.
- Ownership of relevant assets gets transferred by founders to the foundation.
- Either charter or will setup remains available to benefit person/persons.
- Any registered foundation has to come with a separated legal personality.
- Management of accounting books & relevant records at the office is a must.
Main Features of Mauritian Foundation
Name – Proposed name has to end with ‘Foundation’, excluding several corporate words like limited/partnership/Societe/company.
Charter – It’s the primary constitutional document of any foundation. There are several inter alias included in black & white.
Objects – Objects & purposes can immediately define the foundation. The most important objects have to include –
- Foundation Type (Charitable/Non-Charitable)
- Benefactors (Person/Persons/Groups)
- Charter Provisions
- Valid & Enforceable Actions
Beneficiaries – One foundation comes with one or numerous individual beneficiaries. But they barely have any legal/beneficial interest in the foundation’s assets.
Protector – At least one protector or a committee of protectors comes with certain permissions. It includes power, duty, function, responsibility & remuneration.
Property – Vested properties primarily concern with legal & beneficial assets. It also includes the transferred assets of the founder/founders.
Secretary – Every single foundation has to appoint one secretary by the founder. Management company or Mauritian residents can get the authorized appointment.
Accounts – Foundations have to keep books & records of their financial actions. The books won’t get opened for public view. But it remains accessible to councilors, supervisors, inspectors & founders.
Tax Exemption – Exemption comes with a certain business license like GBC1. It requires the deposition of a certain amount of declared money.
Registered Office – Every foundation requires one particular office inside Mauritius. Its registry is important to get all the notices & maintaining communication.
Registration of Foundations
A registered agent has to extract the necessary particulars from the charter. Fulfillment of all the requirements of relevant Acts will get the foundation registered. Of course, the founders have to pay the contemporary registration fee ($300 or MUR 9000).
Renewal Fee – The foundation will have to pay the annual fee to renew the registration. It’s the same as the original registration fee, before 20th January of the new year.
Movemomaurtius.mu Services on Setup
Intuitive experts of Movemomaurtius.mu are ready to help with the setting of new Mauritian foundations. There are several steps involved in which you can use the assistance. The basic steps include –
- Filling the application form.
- Providing KYC docs to all parties.
- Drafting of foundation charter.
- Charter implementation.
- Filing & registration of charter.
You better start saving precious time, money, effort & thoughts on simplifying the process with Movemomaurtius.mu right away.
Related Tag: Permanent Residence in Mauritius