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Private Family Wealth Structures with Full Legal Personality

Unlike a trust, a Mauritius non-charitable foundation possesses full legal personality, it owns its own assets, endures independently of any individual, and provides families with a civil-law-friendly wealth holding vehicle recognised across continental Europe, Latin America, and the Middle East.

Overview

What is a Non-Charitable Foundation?

A non-charitable (or private) foundation established under the Mauritius Foundations Act 2012 is a civil-law-inspired legal entity designed to hold and manage private family wealth. It differs fundamentally from a trust in that it is a separate legal person, it owns its own assets, acts in its own name, and is not dependent on the legal relationship between a trustee and beneficiaries.

Unlike a charitable foundation, a non-charitable foundation has no requirement to serve a public benefit purpose. It can be established for a wide range of private objectives, holding shares in family businesses, managing investment portfolios, owning real estate across jurisdictions, or serving as the apex holding entity in a family wealth structure. This flexibility makes it particularly suitable for high-net-worth families from civil law countries, where the trust concept may not be recognised or understood by local advisers and courts.

Beneficiaries of a non-charitable foundation are not recorded on any public register, and the foundation's internal governance documents are private. This combination of legal robustness, civil law recognition, and strong confidentiality protections has made the Mauritius non-charitable foundation increasingly popular among families from France, Belgium, Brazil, the UAE, and across the GCC.

Aurevya advises on the full lifecycle of private foundation structuring, from objectives definition and charter drafting to council appointment, asset transfer, and ongoing governance, ensuring each foundation is purpose-built and aligned with the family's long-term wealth management strategy.

Civil
Law Friendly Structure
Recognised and understood in civil law jurisdictions across Europe, Latin America, and the Middle East, far more so than the Anglo-Saxon trust concept.
100%
Asset Ownership by Foundation
Assets are legally owned by the foundation itself, not by any individual, providing robust ring-fencing from personal creditors and succession disputes.
Strong
Confidentiality Protections
Beneficiary registers and internal governance documents are not publicly accessible, maintaining the privacy that private families require.

Key Features

What a Non-Charitable Foundation Delivers

01
Legal Personality & Asset Ownership
The foundation is a distinct legal entity that owns its own assets, shares, real estate, cash, and investment portfolios are all held in the foundation's name, providing clear legal title and robust separation from personal assets.
02
Private Purpose Flexibility
No public benefit requirement applies. The foundation can be established for any private family purpose, including holding company functions, succession planning, education funding, or acting as the apex of a multi-entity family structure.
03
Civil Law Recognition
For families from France, Switzerland, Luxembourg, Brazil, the UAE, and other civil law jurisdictions, the foundation concept is familiar and legally recognised, avoiding the complexities that arise when civil law courts are asked to interpret a common law trust.
04
Confidential Beneficiary Register
The identities of beneficiaries are not filed on any public register. Confidentiality is maintained at both the structural and operational levels, with disclosure limited to regulatory authorities and professional advisers under duty of confidence.
05
Family Governance Rules
The charter and supplementary by-laws can encode detailed family governance protocols, including investment mandates, distribution criteria, dispute resolution procedures, and succession to council seats, providing a durable governance framework for multi-generational families.
06
Protector Oversight
An optional protector or supervisory council can be appointed to oversee the governing council, providing an additional layer of family oversight and the ability to remove and replace council members if necessary.

Process

How It Works

01

Objectives Definition

We work with the founder to map the family's assets, identify the primary wealth planning objectives, and determine whether a non-charitable foundation is the most appropriate vehicle, having regard to the founder's domicile, tax position, and the jurisdiction of the underlying assets.

02

Charter & By-Laws Drafting

A bespoke foundation charter is drafted, defining the foundation's purpose, governance structure, council composition, beneficiary class, distribution rules, and any founder reserved powers. By-laws provide the operational detail that complements the constitutional framework.

03

Council Appointment

The initial council is appointed, with at least one Mauritius-resident council member. Founders may serve on the council. Independent council members with relevant expertise, legal, financial, or governance, can be appointed to complement family representation.

04

Registration with Registrar of Companies

The foundation is registered with the Registrar of Companies in Mauritius. The charter is lodged as part of the registration process. Upon approval, the foundation is assigned its registration number and legal standing, and is ready to own assets and enter into contracts.

05

Asset Transfer to Foundation

Assets are transferred into the foundation, typically shares in holding companies, investment portfolios, or cash. Transfer documentation is prepared by Aurevya's legal team, including any stamp duty or tax advice required in the asset's home jurisdiction.

06

Governance in Operation

The council meets regularly to oversee the foundation's assets, approve distributions, and ensure compliance with regulatory requirements. Aurevya's governance team supports minute-keeping, annual reporting, and the smooth operation of the council throughout the foundation's life.

Practical Considerations

Requirements & Eligibility

Regulatory & Structural Requirements

  • Minimum one council member resident in Mauritius
  • Registered office maintained in Mauritius
  • Foundation charter registered with Registrar of Companies
  • Annual compliance filings with Registrar of Companies
  • FATCA and CRS classification and reporting obligations assessed at establishment
  • Anti-avoidance considerations in the founder's home jurisdiction must be reviewed prior to transfer of assets
  • Substance requirements apply where the foundation is Mauritius tax resident

Founder & Beneficiary Considerations

  • Founders of any nationality and residency may establish a private foundation in Mauritius
  • Founders can serve as council members and retain significant operational influence
  • Beneficiaries are identified in the charter or by-laws, they do not need to be named publicly
  • No minimum asset threshold under Mauritius law, commercial viability typically from USD 500,000 upwards
  • Forced heirship exposure must be assessed in the founder's home jurisdiction before assets are transferred
  • Founder death and succession to foundation governance should be addressed in the charter from the outset

Common Questions

Frequently Asked Questions

A non-charitable purpose foundation is a legal entity established under the Foundations Act 2012 for private family purposes rather than public benefit. It possesses full legal personality, meaning it owns its own assets and acts in its own right, but unlike a charitable foundation, it is not required to pursue any publicly beneficial objective. Common purposes include holding family wealth, acting as the apex vehicle in a multi-entity family structure, facilitating succession planning, and holding shares in family businesses or investment portfolios.
The fundamental distinction is legal personality. A trust is a relationship, not a legal entity, between the trustee (who owns the assets) and the beneficiaries. A foundation, by contrast, is a separate legal person that owns its own assets. This makes the foundation a more natural concept in civil law jurisdictions, where the trust is unfamiliar or not legally recognised. Foundations also tend to provide a more institutional governance structure, with a council operating similarly to a board of directors, making them well-suited to families who want transparent internal governance rather than relying entirely on trustee discretion.
Yes. Unlike a trust where the settlor's involvement must be carefully managed to avoid sham trust risk, a founder of a non-charitable foundation can serve on the governing council and retain significant operational influence. The founder can also reserve specific powers in the charter, such as the power to amend the charter, appoint or remove council members, or direct investment decisions, without undermining the foundation's validity. This is one of the key advantages of the foundation structure for founders who wish to maintain a degree of control while still achieving the succession and asset protection benefits of a separate legal structure.
Yes. Beneficiary details are not recorded on any public register in Mauritius. The foundation charter, which is registered with the Registrar of Companies, sets out the foundation's purpose and governance structure, but detailed beneficiary information is typically contained in by-laws or supplementary documents that are not publicly available. Disclosure of beneficiary information is limited to regulatory authorities in the context of AML/CFT or tax information exchange obligations, and to professional advisers under strict confidentiality obligations.
A non-charitable foundation can hold virtually any asset: shares in family companies, investment portfolios (equities, bonds, alternatives), real estate (typically through locally incorporated subsidiaries), cash and bank deposits, private equity interests, intellectual property, and art or collectibles. For real estate in particular, it is common for the foundation to hold shares in a local company which in turn owns the property, maintaining clean legal title and limiting the foundation's direct exposure to local property laws in each jurisdiction.
Because the foundation is a separate legal entity that owns its own assets, the founder's death does not trigger a transfer of those assets, they remain in the foundation. The foundation continues to operate under its governing charter, with succession to council seats managed in accordance with the procedures set out in the charter or by-laws. This is one of the most significant advantages of the foundation structure for succession planning: it avoids probate and ensures continuity of management without the need for any asset transfer upon the founder's death.

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Structure Your Family Wealth with Confidence

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