- August 12, 2020
- Posted by: Editor
- Category: Law
Mauritius is not only an appreciated offshore destination but also a recognized asset protection one. Local and foreign citizens and investors have various tools they can use in order to protect their estate. Among these, one can decide to set up an offshore company or a trust in order to protect their assets, however, it should be noted that the right tool should be chosen based on the goods one wants to protect.
Below, our company formation specialists in Mauritius provide key information on the best asset protection tools in this country. If you need assistance, you can rely on our agents for various services.
Ways of protecting one’s assets in Mauritius
Here are the main tools through which asset protection can be ensured in Mauritius:
- the trust which is one of the most employed types of estate planning tools in Mauritius;
- the corporation which can be registered as a domestic company with the Trade Register;
- the offshore company which is often employed by foreign investors coming to Mauritius;
- the foundation which is another popular asset protection tool in Mauritius.
Among these, the trust and the foundation are often the choices of local and foreign investors who want to protect their assets. It should be noted that there are several types of trusts that can be set up in Mauritius and our local advisors can provide more information on them.
Also, if you want to open an offshore company or bank account in Mauritius, our consultants are at your service.
The main features of Mauritius-based trusts
Trusts are regulated by the Trust Act of 2001, which is important to note as not all countries have laws to provide for the creation of such entities. According to the law:
- a trust can be set up by a resident or non-resident citizen of Mauritius;
- there is no need to register the trust with any register, as there isn’t one in Mauritius;
- it can be set up as a discretionary, charitable or directly as an asset protection trust;
- it can have a trustee in Mauritius, however, the settlor can also appoint a manager in another country.
If you need more information on the legislation related to the creation of trusts or their characteristics, you can direct your questions to our Mauritius company formation agents.
Creating a trust for asset protection in Mauritius
The trust can be created through a deed of trust or will and implies drafting an agreement between the settlor (the person creating the trust) and the trustee (the person or company in charge of the administration of the assets mentioned in the agreement).
No matter the document used for the creation of the trust, it must contain the following information:
- the names of the settlor, trustee and beneficiary;
- the intention to create the trust;
- the assets that will be protected through the trust;
- the duration and other mentions on the administration of the respective assets.
The local legislation provides for several types of trusts can be set up in Mauritius, however, all of them will provide the same benefits and privacy when it comes to the assets protected through them.
We can assist with the creation of various types of trusts, however, we can also provide guidance on business registration in Mauritius.
The foundation as an asset protection tool in Mauritius
Another way of ensuring effective asset protection in Mauritius is the creation of a foundation. This type of entity is regulated by the Foundations Act of 2012 and respects the Commonwealth regulations, considering Mauritius was a British Colony.
Just like the trust, a foundation can be created by foreign citizens who want to protect their assets. It is common for this entity to be used for estate planning purposes especially associated with the enhanced protection of real estate property.
No matter the asset protection tool you want to use, our company registration agents in Mauritius can help you set it up.
Economic freedom of Mauritius
Mauritius ranks pretty high in the Heritage.org survey on economic freedom, ahead of various European countries.
According to the report, Mauritius has scored 74.9 points in the 2020 Index, ranking 21st. Its overall score increased by 1.9 points since last years in important sectors like:
- property rights which scored 75.8 points;
- governmental integrity which has scored 53.3 points;
- business freedom with a score of 82.5 points;
- fiscal health with a score of 79.3 points;
- Mauritius also ranked 1st among all 47 Sub-Saharan African countries.
If you want to set up a trust for asset protection purposes, our agents at your service, so do not hesitate to contact us. You can also rely on for full company formation services in Mauritius.