Comparison
Trust vs Foundation
Trusts and Foundations are both asset-protection vehicles, but they differ in legal structure, governance and适用 scenarios.
Key differences
| Attribute | Trust | Foundation |
|---|---|---|
| Legal personality | No (trustee holds legal title) | Yes (separate legal entity) |
| Tax residency | Tax treatment depends on residence, source and nature of income. A non-resident trust is generally taxable in Mauritius on chargeable income attributable to Mauritius-source income. Partial exemptions may be available on qualifying income subject to statutory conditions. | Tax treatment depends on residence, source and nature of income. A non-resident foundation is generally taxable in Mauritius on chargeable income attributable to Mauritius-source income. Partial exemptions may be available on qualifying income subject to statutory conditions. |
| Treaty access | No (trust itself is not a taxable entity) | No (foundation itself is not treaty-eligible) |
| Governance | Trustee holds legal title; beneficiaries hold equitable interests | Council administers for beneficiaries; founder endows assets |
| Directors / council | N/A — governed by trustee | ≥1 Mauritius-resident council member |
| Minimum capital | No minimum (settlor settles assets) | No statutory minimum (founder endows assets) |
| Audit | Not required (trustee accounting obligations) | Not required (council accounting obligations) |
| Registration | Not registered; details not publicly available | Registered with Registrar; FATCA/CRS classification applies |
| Governing document | Trust deed | Charter and regulations |
| Term | Up to 99 years (Mauritius) | Indefinite or fixed |
| Privacy | Not on public register; beneficial-ownership held with FSC | Registered with Registrar; less private than trust |
| Typical uses | Succession, wealth structuring, asset protection, family office | Civil-law wealth structures, succession, philanthropy, family-business holding |
| Setup time | 2–4 weeks | 4–6 weeks |
| Ongoing complexity | Low to moderate — trustee duties, deed maintenance, FATCA/CRS | Low to moderate — council governance, charter maintenance, FATCA/CRS |
Legal personality
Trust
No (trustee holds legal title)
Foundation
Yes (separate legal entity)
Tax residency
Trust
Tax treatment depends on residence, source and nature of income. A non-resident trust is generally taxable in Mauritius on chargeable income attributable to Mauritius-source income. Partial exemptions may be available on qualifying income subject to statutory conditions.
Foundation
Tax treatment depends on residence, source and nature of income. A non-resident foundation is generally taxable in Mauritius on chargeable income attributable to Mauritius-source income. Partial exemptions may be available on qualifying income subject to statutory conditions.
Treaty access
Trust
No (trust itself is not a taxable entity)
Foundation
No (foundation itself is not treaty-eligible)
Governance
Trust
Trustee holds legal title; beneficiaries hold equitable interests
Foundation
Council administers for beneficiaries; founder endows assets
Directors / council
Trust
N/A — governed by trustee
Foundation
≥1 Mauritius-resident council member
Minimum capital
Trust
No minimum (settlor settles assets)
Foundation
No statutory minimum (founder endows assets)
Audit
Trust
Not required (trustee accounting obligations)
Foundation
Not required (council accounting obligations)
Registration
Trust
Not registered; details not publicly available
Foundation
Registered with Registrar; FATCA/CRS classification applies
Governing document
Trust
Trust deed
Foundation
Charter and regulations
Term
Trust
Up to 99 years (Mauritius)
Foundation
Indefinite or fixed
Privacy
Trust
Not on public register; beneficial-ownership held with FSC
Foundation
Registered with Registrar; less private than trust
Typical uses
Trust
Succession, wealth structuring, asset protection, family office
Foundation
Civil-law wealth structures, succession, philanthropy, family-business holding
Setup time
Trust
2–4 weeks
Foundation
4–6 weeks
Ongoing complexity
Trust
Low to moderate — trustee duties, deed maintenance, FATCA/CRS
Foundation
Low to moderate — council governance, charter maintenance, FATCA/CRS
When to choose a Trust
You need flexible discretionary control
A Trust is a relationship where the trustee holds legal title to assets for the benefit of beneficiaries. It offers maximum flexibility in discretionary distributions.
Trusts are governed by the Trusts Act 2001 in Mauritius. The settlor can retain power through a letter of wishes while keeping assets ring-fenced from creditors.
Trusts are suitable for wealth planning, asset protection, and cross-border succession where flexibility is paramount.
When to choose a Foundation
You need a separate legal entity
A Foundation is a separate legal entity with its own personality, governed by the Foundations Act 2012. It holds assets in its own name rather than through a trustee.
Foundations offer a civil-law alternative to trusts, with a council structure and registered agent. They are preferred in jurisdictions that do not recognise trusts.
Foundations are suitable for charitable purposes, family wealth structures, and situations where a corporate-style governance is preferred.
At a glance
Governance
Trust: Trustee manages assets with settlor oversight. Foundation: Council governs the entity with its own legal personality.
Cost to run
Trusts have lower setup costs but ongoing trustee fees. Foundations have slightly higher setup costs but may have lower ongoing costs depending on structure.
Asset protection
Both offer asset protection, but Foundation assets are held in the entity's own name, which may provide stronger protection in some civil-law jurisdictions.
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