A foundation is a hybrid offshore vehicle immensely suitable for wealth protection, succession planning and forming tax effective structures. A foundation functions like a company, through councillors (instead of directors) and, like a trust, has beneficiaries instead of shareholders. A foundation is a separate legal entityand reflects the wishes of the founder, who may be an individual or another legal entity

Why choose a Seychelles Foundation?

• The identities of the founder or beneficiaries can be kept confidential
• Foundation assets hold full legal and beneficial title
• Forced heirship judgments are specifically excluded
• Exempt from all taxes (income, capital gains, stamp duty, withholding) subject to limiting period specified in the Foundations Act 2009
• The founder can reserve certain rights in the foundation
• Re-domiciliation, merger or consolidation of the foundation is permitted

Features of a Seychelles Foundation

• The founder can be a sole beneficiary provided another beneficiary is instated at the time of founders death or legal incapacity
• A foundation can own property and other assets world-wide, other than in the Seychelles
• A foundation can hold shares /debentures or other interests in a Seychelles IBC, CSL, PCC, LP, Trust, MF * or any funds in an account of a bank licensed under the Financial Institutions Act
• Statutory protection against forced heirship rules. Disclosure of information or documents relating to a foundation can only be effected in extenuating circumstances involving criminal activity
• No requirement to file financial statements with the authorities
• Exempt from CGT on the disposal of foreign assets. Full exemption from business tax, social security tax, foreign exchange control and stamp duty in Seychelles.

How Foundations differ from Trusts

• Consolidations and mergers are possible. Trusts cannot be merged
• A foundation’s lifespan is not limited. A trust’s lifespan is limited
• A founder can assign/reserve rights, obligations and power in the charter. A settlor in a trust cannot
• A foundation is managed by the council, and is required to maintain minutes of the meetings. In a trust, the trustee manages the trust and is not required to hold meetings.

For further information click here

Call Anglo on: +44 (0) 1473 249 024

* International Business Company, Company Special License, Protected Cell Company, Mutual Fund