Key considerations at a glance
Set Up a Mauritius AC Low-Cost Offshore Company
Mauritius Trust vs. Foundation Comparison
| Feature | Mauritius Trust | Mauritius Foundation |
|---|---|---|
| Legal Nature | Fiduciary relationship (not a separate legal entity) | Separate legal persona (corporate entity) |
| Governing Law Origin | Common Law framework | Civil Law framework (hybrid structure) |
| Asset Ownership | Legal title vested in the Trustee | Owned directly by the Foundation itself |
| Management Body | Trustee (Individual or Licensed Management Company) | Council of Founders & a mandatory Secretary |
| Founder Control | Limited (to avoid sham trust risks) | Greater oversight via Council or Protector roles |
Mauritius AC vs GBC – Key Differences Explained
What is a Mauritius Trust?
A Mauritius Trust is established when a settlor transfers legal ownership of assets to a trustee, who holds and manages them for the absolute benefit of designated beneficiaries. Governed by the Trusts Act, Mauritius trusts benefit from robust asset protection provisions against foreign forced heirship claims.
Core characteristics of trusts
- High degree of confidentiality regarding settlor and beneficiary identities.
- Flexible terms defined entirely within the trust deed.
- Can be established as discretionary, fixed-interest, or protective trusts.
- Requires a licensed Mauritius management company or qualified trustee.
What is a Mauritius Foundation?
Regulated by the Foundations Act, a Mauritius Foundation combines elements of corporate structures and trusts. It comes into existence with its own distinct legal personality, allowing it to sue, be sued, and hold properties in its own right without requiring a separate trustee owner.
Core characteristics of foundations
- Possesses an independent legal persona, appealing to civil-law jurisdiction clients.
- Managed by a Council operating under a Charter and Articles of Foundation.
- Allows the founder to reserve specific supervisory or beneficiary rights.
- Must maintain a registered office and a licensed management secretary in Mauritius.
Tax Framework & Exemptions
Both trusts and foundations in Mauritius enjoy a highly attractive tax landscape, making them exceptional vehicles for international estate preservation.
- Income Tax: Trusts and foundations are subject to a flat 15% rate, but can irrevocably elect to be exempt if all beneficiaries are non-residents.
- Zero Withholding Tax: No tax levied on dividends, interest, or royalties distributed to beneficiaries.
- Exemption on Successions: Transfer of assets into or out of the vehicle is free from estate or inheritance taxes.
Establishment Workflow
Trust Establishment Steps
Structuring & Drafting Deed
Define trust objectives, asset classes, and beneficiary clauses with advisors.
KYC & Trustee Appointment
Complete compliance checks and formally appoint the licensed trustee.
Asset Transfer & Registration
Execute settlement of trust property and registration with regulatory bodies.
Succession Planning & Control
Mauritius wealth structures provide robust protection against foreign court judgments and forced heirship rules. Both vehicles ensure smooth generational transfer of wealth without probate delays.
Which structure should you choose?
For common-law familiarity & utmost privacy
- Deeply rooted common law Anglo-Saxon framework
- Maximum confidentiality with no public registry of beneficiaries
- Flexible asset holding across multi-generational time horizons
For corporate personality & founder oversight
- Familiar entity structure for civil-law background founders
- Independent legal persona holding assets directly in its name
- Direct council participation and structured governance rules
Frequently asked questions
Shiraz Waheed, MCSI, ACMA, CGMA
Founder & CEO of SetupHero, Shiraz is an experienced finance and business advisory professional with a strong background in corporate structuring, accounting, and international business setup. He helps entrepreneurs and companies establish and grow their businesses across 25+ countries, providing practical guidance on company formation, compliance, banking, and ongoing corporate services. His experience combines global professional standards with hands-on expertise in helping businesses expand internationally.