The following describes what constitutes trust in Mauritius and a foundation in Mauritius, as well as what advantages they provide to the trust manager, the founder of the foundation and the beneficiary. We will study together how to create trust and foundation in Mauritius, and what requirements need to be met in order to establish an offshore trust or foundation.
Creating an offshore trust in Mauritius
The following describes what constitutes trust in Mauritius and why Mauritius is a favorite place for offshore founders to create a trust. The purpose and types of trusts in Mauritius are described, as well as the main advantages of trusts in Mauritius. This section can serve as a guide for potential offshore founders when deciding on the most appropriate jurisdiction. It should be noted that the founders need to clarify the distinction between offshore and offshore trusts: in an offshore trust, assets are stored in another country, and the trust is created according to the laws of an offshore jurisdiction. Learn more here https://offshorecitizen.net/offshore/asset-protection-trusts/.
What is a trust in Mauritius?
A trust in Mauritius must have a trustor, a trustee, beneficiaries and a guarantor. The founder must be an authorized person during the creation of a trust, and the trustee must be of full age in his right mind, who in good faith disposes of the founder’s assets. The main obligation of the trustee is to fulfill the requirements contained in the declaration of trust in the interests of the beneficiaries. The guarantor monitors the trust’s activities and ensures that the trust declaration complies with it, and also ensures that the trust functions in a satisfactory manner. The created trust does not acquire the qualities of a legal entity but allows the founder to transfer its assets from personal property to the ownership of the trust.
Trusts in Mauritius are governed by the Mauritius Trusts Act 2001, which allows for the creation of offshore trusts of various kinds, namely discretionary, charitable, targeted, commercial and foreign. The existence of trusts in Mauritius is 25 years for charitable trusts and up to 99 years for all other trusts. One of the prerequisites for creating trust in Mauritius is an oral or written statement of such an intention. However, trusts must be registered with the Financial Services Commission. Trusts in Mauritius provide a high degree of confidentiality in terms of the founder’s and beneficiary’s personalities, the avoidance of the right to an obligatory share in the hereditary mass, the possibility of moving a trust. In addition, charitable trusts are exempt from taxation.
Why create an offshore trust in Mauritius?
The activities of trusts in Mauritius are regulated by the 2001 law on trusts. Here it is allowed to create trusts, both residents and non-residents, which indicates the intention of the legislator to make trusts accessible to all. The confidentiality of trusts in Mauritius is protected very strictly, in accordance with the law of 2001. There is no requirement to disclose the beneficial owner. In addition, if a trust is created by a non-resident of Mauritius, then it is exempt from taxation and may not be registered. Mauritius occupies one of the first places in the world in the number of offshore entrepreneurs, signed agreements to avoid double taxation with China, Singapore and India, which opens up investment prospects on an international scale. Trusts in Mauritius enjoy a high degree of anonymity. Mauritius is a stable and well-developed financial center where you can safely place your assets. Asset protection in Mauritius is well known due to a stable and balanced legal system.
Assignment of trusts in Mauritius
– Asset protection – usually trusts are used by rich people to efficiently manage their property
– Planning of inheritance – the founders want to freely dispose of their condition, avoiding the right of heirs to an obligatory share in the hereditary mass
– Benefits for children
– Benefits for employees.
Types of trusts in Mauritius
The most popular trusts in Mauritius:
– Discretionary trusts
– Trust Trusts
– Commercial trusts
– Foreign Trusts.
Advantages of offshore trusts in Mauritius
– High degree of confidentiality – disclosure of the identity of the founder and beneficiaries is prohibited
– Effective tax planning
– Low trust creation costs
– Protection from creditors
– Asset protection – claims against assets can only be brought in the first 2 years after placing them in a trust
– The costs of creating a trust are small
– Minimum trust registration and reporting procedure
– Property Management.
– The absence of the right to an obligatory share in the mass of hereditary
– Trusts created by residents use agreements on the avoidance of double taxation
– Trusts in Mauritius can be created both by residents and non-residents
– According to the Mauritius Trusts Act (2001), a founder or trustee may also be the beneficiaries
– There is no need to register a declaration of trust.
Creating an offshore fund in Mauritius
What is a foundation in Mauritius?
To create a foundation in Mauritius, 4 basic elements must be observed. First, the founder of trust management is necessary, i.e. The person initiating the creation of a fund The beneficiaries are the second element of the fund. In addition, the fund needs a guarantor (with the same functions as in the trust). Finally, board members monitor and control the fund. the work of the foundation. Funds are usually created when jurisdictions do not fully recognize trusts. Funds in Mauritius are an excellent means of effectively managing assets and assets.
A distinctive feature of the fund is that it acquires the rights and obligations of a legal entity immediately after its creation, which allows the fund to own many companies, act as a plaintiff and defendant in court and enter into agreements with third parties.
In the near future, a law on foundations of 2009 will be adopted in Mauritius, which will ensure the availability of a regulatory framework for foundations, as is already the case for trusts. The foundation in Mauritius is the same trust that has the status of a company and is an independent legal entity.
Types of funds in Mauritius
– Public fund – created by families, groups, etc.
– Private fund – created by private individuals, usually they are represented by private investment funds.
– State Fund
– Mixed Fund – can be created by any of the above-mentioned persons, has properties of a trust and is liable in the amount limited by the guarantees of its members.
Foundation Assignment to the Marshall Islands
– Asset Protection
– Efficient property management
– Protection against claims of creditors
– Protection from the unstable political situation
– Tax planning
– Centralized corporate control
– Profit participation schemes for employees
What assets can be held in an offshore fund in Mauritius?
– Investment portfolios
– Real Estate
– Intellectual property, including patents and copyrights
– Shares and securities of private and state companies
– Bank deposits
– Life insurance policies
Advantages of an offshore fund in Mauritius
– Are legal entities and can enter into agreements with third parties
– Can open bank accounts
– Tax haven
– Ensuring strict confidentiality
– Formation and development of relations with the state and the public
– The strategic geographical position contributes to the development of international relations and relations with other countries around the world, with the result that the fund is located within the international financial center
– The requirements for the foundation are fulfilled in the same way as in the declarations of trust, reflecting the requirements of the founder.