One of the best ways of protecting one’s assets is through the creation of a trust. From this point of view, Mauritius can be a great destination for foreign citizens seeking not only to protect their estate, but also to secure various assets or looking for a long-term investment solution.
There are various reasons for creating a trust in Mauritius and if you are exploring this possibility, our specialists can offer more information on your options. You can rely on our company formation agents in Mauritius for guidance in setting up a trust or any other type of business entity.
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Compared to other jurisdictions, Mauritius has a specific law that provides for the creation of trusts. This is the Trusts Law of 2001, which covers various aspects associated with the establishment of such a structure.
| 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. |
Under the Trusts Act, there are several types of trusts that can be created in Mauritius and two ways of establishing them. The law also provides for the appointment of trustees, their powers and duties.
If you want to set up a trust in Mauritius, you can rely on the expertise of our local advisors. We can also assist if you want to open a company in Mauritius.
We can also help you open a bank account in Mauritius if you simply want to save money and want to benefit from interest to the amount you raise. The procedure is fairly simple and can be completed with the help of our local consultants. Get in touch with us for details on our services dedicated to natural persons.
As mentioned above, the creation of a trust in Mauritius implies choosing one of the available types of structure. Here are the options:
The private trust in Mauritius is further divided into the discretionary, asset protection and fixed trust.
If you want to set up a trust in Mauritius, there are various steps to consider, however, these are easy and fast to complete.
With the help of our company registration consultants in Mauritius, the creation of such a structure is even simpler.
In Mauritius, it is forbidden to offer any financial services without a license obtained through a Financial Services Commission. Sanctions are issued for breaking this regulation. Here, investment brokerage activities associated with the currency market are subject to the Mauritius Forex license, to name one of them.
As mentioned above, there are two ways of setting up a Mauritius trust. The first one implies drafting a document, called declaration of trust that is signed by the trustee and that states the terms under which the trustee will administer the assets in custody. Through the declaration of trust, the trustee also agrees for his/her particular assets to be verified and recorded, so that they do not mix with the ones held into management on behalf of the beneficiaries.
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. In this document, the settlor provides clear instructions on the administration of assets, the obligations of each party, as well as any other details with respect to the object and intention of the trust.
If you are interested in business registration in Mauritius, you can rely on our tailored solutions. We can also assist with the creation of an offshore company here. 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.
When opening a bank account in Mauritius, each client is required to submit a unique set of documents. Most people only need a scanned copy of their passport that includes their residence visa and local address. For corporate accounts, however, the list of documents is more extensive and the procedure can take longer.
Even if Mauritius is mostly known as an offshore destination, those who want to set up trusts here can also take advantage of various benefits. Some of them are mentioned below:
Our Mauritius company formation advisors can provide more information on the benefits of setting up a trust in this country. Our team is also able to help in opening a Mauritius offshore bank account.
As mentioned above, there are also some tax advantages related to the creation of a trust in Mauritius. For this purpose, we have made a comparison between the tax regulations imposed by the Mauritius Revenue Authority on individuals and companies and the taxation of trusts:
If you are interested in setting up a trust in Mauritius, please contact our local representatives. Gaining Mauritius citizenship is not an easy or straightforward process, and that, despite the law’s stipulation of the pathways for application, the decision to grant citizenship ultimately resides with the Prime Minister’s Office. This is why, in order to make sure you have a correct application, you can use our immigration services.
