Mauritius Trust Formation
DeltaQuest are equipped to provide comprehensive trust services to individuals and corporate entities in setting up and managing trusts in Mauritius. Our consultants will offer guidance to clients in how to manage their trust in accordance with the relevant trust laws. We will find you a tailored asset protection solution and will assist you in the formation of your Mauritius Trust.
In order to proceed with the formation of the Mauritius Trust, please complete our Trust Application Form.
Conditions for a Mauritius trust formation
Legal form: Trusts in Mauritius are governed by the Trusts Act, 2001. A trust can only be created by an instrument in writing which should state its object, subject, intention, duties & powers of the trustees. There is no register of Trusts in Mauritius nor is there any disclosure of beneficial owner to any authority. Trust is limited to 99 years in duration.
Types of Trust
Most offshore trusts fall into four broad categories:
- Private Trusts:
- Discretionary trust
- Accumulation and maintenance trust
- Life interest and fixed interest trusts.
- Corporate: including pension and employee benefit trusts.
- Charitable: solely for the benefit of charitable organizations.
- Purpose: trusts with no beneficiaries that are established for purposes that are certain, reasonable and certain.
Settlor: A settlor is any person who has legal capacity to contract may be a Trustee, Beneficiary or Protector. The settlor cannot be the sole beneficiary to the trust, of which he is the settlor. Where a non-citizen transfers or disposes of property in the trust, this transfer or disposition cannot be set-aside on the basis that the disposition or transfer is in breach of the local law of the Settlor’s domicile or nationality.
Protector: The terms of a trust may provide for the office of protector of the trust. The protector shall have the power to remove a trustee and to appoint a new or additional trustee. The Protector may also be the Settlor, the trustee or the beneficiary of the trust but in his capacity as protector he is not accounted or regarded as a trustee.
Trustees: A trustee can either be a person of full age who has legal capacity to contract, or alternatively be a corporate permitted under its statute to act as trustee. The number of trustees shall not exceed four. At least one should be a qualified trustee.
Beneficiaries: A beneficiary must be identified by name or ascertainable by references to a class or relationship to another person.
Taxation: A trust is liable to income tax at the rate of 15% if the settlor and beneficiaries are non-residents or hold a Category 1 or 2 Global Business license or is a purpose trust. However, such trust will be entitled to the presumed foreign tax credit of the higher rate suffered or 80% of its chargeable income, or may deposit a declaration of non-residence within 3 months after the expiry of the income year, it will then be exempt from income tax. Chargeable income shall be the difference between the net income derived by the trust and the aggregate income distributed to the beneficiaries under the terms of the trust. Any amount of income distributed to the non-resident beneficiaries shall be exempt from income tax in the hands of the beneficiaries.
Time needed for trust formation: Usually it is 3-4 weeks.
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