Family businesses are known to account for a significant contribution to global GDP and in some countries, family businesses are the backbone of the economy.
Family businesses are passed from one generation to the next and sometimes the 1st generations act as mentors to the 2nd generations that own and manage the businesses.
Survival rates remain a challenge for family businesses as a result of economic and regulatory changes, tax reforms, geopolitical developments and other risk-prone factors. Added safeguards and good governance are therefore necessary to break that ‘shirtsleeves to shirtsleeves’ paradigm.
Any family business needs a structure that will stand the test of time and a family office plays a crucial role in structuring family’s wealth. It is not only a tax-driven vehicle but one that integrates a range of complementary benefits, primarily effective implementation of good governance that handles emotional and jarring family and business issues within a formalised and robust framework.
Single and Multiple Family Office
In its mission for continuous development and modernisation as an IFC, Mauritius introduced two Family Office licences: the Family Office (Single) licence and the Family Office (Multiple) licence in 2017. The Financial Services (Family Office) Rules followed through in 2020.
According to the rules, an application for a Family Office (Single or Multiple) must be made by a person with relevant experience in the field of wealth management, private banking, investment management or related fields and shall have only family as clients. The family office may be wholly-owned by family clients and controlled exclusively by family members/entities.
The services of a Family Office (Single or Multiple) may include inter alia:
- administration and management of investments, assets and/or estate(s)
- administration and management of concierge services
- management of accounting and reporting
- administration and management of philanthropic services
- providing training and development to the incoming generations
- administration and management of disaster recovery planning
- administration of risk management
- provision of administrative support
- ensuring compliance with domestic and international legislation
- establishing family governance, wealth strategies, family board(s) including family charter(s)
- providing tax advisory and compliance services
- advising on wealth planning and protection
- A Family Office (Single) shall, at all times, maintain a fully paid minimum stated unimpaired capital of at least USD35,000.
- A Family Office (Multiple) shall, at all times, maintain a fully paid minimum stated unimpaired stated capital of at least USD70,000.
- The value of the assets and/or investments under the management of each family shall be more than USD 5 million.
- Shall have a designated officer who shall be part of senior management. The designated officer shall be the point of contact between the FSC and the family office.
- Shall at all times have a Money Laundering Reporting Officer and Deputy Money Laundering Officer who shall be approved by the FSC.
- Shall subscribe to a Professional Indemnity insurance cover.
Family office licence holders are eligible for tax holidays for a period of five years if they:
- have a physical office in Mauritius
- employ at least one professional resident in Mauritius if the licence holder is a Single Family Office
- employ at least three professionals who are resident in Mauritius for a Multiple Office licence holder
Why should you choose Mauritius?
The family office is structured with an evolving approach to managing family assets that are usually embodied in various types of entities. It is clear that a family office should be located in an International Financial Center (IFC) that would facilitate the implementation and administration of structures as the family business evolves.
Records are not accessible for public inspection for the global entities established in Mauritius and being managed by the family office.
A five year year tax holiday. No capital gains tax and withholding taxes on distribution in Mauritius.
Way less costly compared to other jurisdictions in terms of set up, office space, payroll and operations.
Ranked 1st in Africa for ease of doing business.
Ranked 1st in the latest MO Ibrahim Africa Governance Index.
Mauritius does not impose any exchange control regulations.ors.
High-level professionals with postgraduate academic background and industry recognition.
Offshore specialists with over 20 years experience in Mauritius, Guernsey and other jurisdictions.
Identifying and meeting customers needs is our priority. We are diligent in maintaining trust and customers satisfaction.
Enriched knowledge base and constant monitoring of regulatory changes and directives across different IFCs.