If you want an excellent asset protection tool, you can set up a trust in Mauritius. With in-depth experience in company registration procedures, our local specialists can also assist clients who decide to create a trust in this jurisdiction.
| Quick Facts | |
|---|---|
| Specific law applicable to trusts (YES/NO) | The 2001 Trust Act. |
Participants in a trust | – settlor, – trustee, – beneficiaries. |
Types of trusts available for creation in Mauritius | – charitable, – purpose, – corporate, – private. |
| Documents required for establishment | – the trust deed, – identification papers of all parties in the trust. |
| Assets to be held in a trust | – money, – real estate, – jewelry, – artwork, – company shares, etc. |
| Requirements to create a trust | The names of all parties involved must be mentioned in the trust deed, and the assets must be identified. |
| Possibility to hold assets in countries other than Mauritius | Yes. |
| Taxation of trusts | Trusts are not taxed if created for charitable purposes. In other types of trusts, the trustees may be subject to income tax. |
| Recognition of foreign trusts in Mauritius | Yes, foreign trusts are recognized in Mauritius. |
| Possibility to create offshore trusts (YES/NO) | Yes, it is possible to establish offshore trusts in Mauritius. |
| Other means to create trusts (if available) | – through a settlement contract between the creator and the trustee, – through a will. |
| Lifespan | 99 years or less. |
| Advantages of opening a trust in Mauritius | – simple process, – several tax advantages, – good asset protection and estate planning tools, – it can be used as an investment management company. |
| Trustee services availability (YES/NO) | Yes, dedicated trustee services are available. |
| Trust creation services availability (YES/NO) | Yes, our company formation agents in Mauritius can help you create a trust in this jurisdiction. |
Table of Contents
Can I set up a trust in Mauritius if I am a foreigner?
Yes, you can.
What are the conditions to create a trust in Mauritius?
The following:
- all parties in the trust must be identified and go through the Know-Your-Client assessment;
- the purpose of the trust must be established before its creation;
- the settlor must appoint a trustee (in Mauritius, you can benefit from professional trustee services);
- to draft the creation deed, the assets to be put in the trust must be accounted for.
In Mauritius, it is forbidden to offer any financial services without a license obtained through the Financial Services Commission. Sanctions are issued for breaking this regulation.
Find out more on this topic from the infographic below:
What are the mandatory parts in a Mauritius trust?
As mentioned previously, all parties in the trust must be identified. These are:
- the settlor – the creator of the trust;
- the trustee – the party ensuring the management of the trust;
- the beneficiaries – those who will benefit from the assets in the trust.
What are the steps to open a trust in Mauritius?
The following:
- establish the details of the trust;
- choose the trustee (you can also choose more than one trustee; however, at least one of them must be a Mauritius resident);
- have the trustee complete the due diligence checks;
- create the trust agreement;
- complete the transfer of assets.
What are the procedures to establish a trust in Mauritius?
There are two ways of setting up a Mauritius trust. The first one implies drafting a document, called a declaration of trust, that is signed by the trustee and that states the terms under which the trustee will administer the assets in custody.
The second way of setting up a trust in Mauritius is by settlement. This procedure implies drafting an agreement that is signed by the settlor (investor) and the trustee.
With the help of our company registration consultants in Mauritius, the creation of such a structure is simple.
What types of trusts can I create in Mauritius?
Here are the options:
- the charitable trust which can be created with the purpose of helping a charitable organization;
- the purpose trust which focuses on the reasons for creation of the trust and not its beneficiaries;
- the corporate trust which has as a main purpose corporate services related to pension and employment benefits;
- the private trust which is one of the most employed types of trusts in Mauritius as it relies on the accumulation and protection of assets.
The private trust in Mauritius is further divided into the discretionary, asset protection, and fixed trust.
What types of assets can I put in a Mauritius trust?
You can put various types of assets, starting with money, jewellery, works of art, and up to company shares, if you want.
Is it necessary to register a Mauritius trust with any authority?
No; however, you can optionally enter the trust in the Registrar General.
How long does it take to create a trust in Mauritius?
You can expect the procedure to be completed in about a month.
How are trusts taxed in Mauritius?
Here is a comparison between the tax regulations imposed by the Mauritius Revenue Authority on individuals and companies and the taxation of trusts:
- it applies a 15% rate on corporate income of businesses in Mauritius;
- individuals are also subject to personal income tax at a rate of 15%; however, a lower rate of 10% is also available;
- by comparison, trusts are exempt from taxation when created for charitable purposes;
- trusts can also benefit from Mauritius network of more than 30 double tax treaties.
Another interesting jurisdiction for setting up a trust is Hong Kong. Here, there are two types of trusts, charitable and non-charitable trusts, the registration of a trust is made with the Companies Registry, and special tax rates apply to certain types of trusts. If interested, please find more details from our local partners at –OpenCompanyHongKong.com.
If you are interested in setting up a trust in Mauritius, please contact our local representatives.
