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Offshore Trusts Formed in Mauritius

The Mauritius Trust is governed by the Trust Act of 2001. A Mauritius trust can be set up to for placing assets which will be protected by the very competent laws of the offshore tax haven of Mauritius. Legislation provides protection against forced heirship for Mauritius trusts. Mauritius trusts are formed in very little time in the tax haven of Mauritius.

The creation of a Mauritius offshore trust requires preparing a trust document which must be done in writing or else the Mauritius offshore trust will not be recognized. In the tax haven of Mauritius a number of different types of Mauritius offshore trusts can be created including charitable trusts, spend thrift or protective trusts and purpose trusts. A Mauritius charitable trust can be created for one of the following purposes: advancement n education, relieving poverty, the protection of the environments and human rights or any other purpose which may be beneficial to the society. A charitable trust in the tax haven of Mauritius has perpetual duration, the non charitable trusts will cease to exist after 25 years of existence whilst other trusts can only last for a maximum of 99 years.

The Mauritius offshore trust must have for it to be considered legal the following parties: trustee, beneficiaries, a settlor. A Mauritius offshore trust can have no more than four (4) trustees. Out of these trustees at least one (1) must be licensed by the Mauritius Financial Services Commission to act as a trustee in the tax haven to do business which pertains to offshore trust. The beneficiaries are the individuals who will at some point in time inherit the assets placed in the Mauritius offshore trust.

For the formation of a Mauritius offshore trust a trust instrument has to be made up and must included the information such as the following for it to be considered: the name of the trustee, a declaration by the settlor that he/ she is creating a trust or the trustee of the trust may also declare that the property being held is being done on trust, state the date the trust is expected to be dissolved, name the properties being held in the trust and name the beneficiaries of the trust. It is important to note that assets held in a Mauritius offshore trust cannot be fixed properties in the tax haven of Mauritius.

The tax haven of Mauritius is known for providing high levels of confidentiality for its offshore business companies and Mauritius offshore trusts receive the same treatment. There is no registrar of trusts in the tax haven of Mauritius therefore there are no need to make the names of trust beneficiaries and known to any board or authority in tax haven Mauritius.

Mauritius trusts have the benefits of payiwng very low taxes in the tax haven and can also enjoy the many tax treaties that the offshore jurisdiction has signed with very important trading partners in the world. A nonresident or offshore Mauritius trust can operate tax free in Mauritius. Resident trusts in tax haven Mauritius will pay a moderate tax rate of 15 % and take advantage of tax treaties.