OFFSHORE FOUNDATION
What is an Offshore Foundation?
Offshore foundations are commonly used as effective offshore vehicles for asset protection, wealth management and estate planning. Offshore foundation are similar to trusts and formed out of a concept based on civil law, re-enacted in offshore jurisdictions. As offshore private foundations are set up in tax havens governed by offshore legislations, they are tax free entities benefitting from favourable conditions and treatments.
An offshore foundation is a legal entity that can hold, distribute and protect assets.
- When an offshore foundation is created (by a founder), the foundation will "hold" the assets/property that is endowed (put into) to it. The founder or other persons may put assets into a foundation upon creation and any time after.
- Once put into an offshore foundation the property/assets are no longer legally the property of the founder and therefore (the assets) are protected against claims or settlements made on the founder's estate.
- Acting on the founders wishes/instructions, the assets will be distributed to the beneficiaries.
Private foundations are rarely used for day to day business activity and in general earn income through contributions (family, estate), donations or passive income through investment activity.
Usually offshore foundations are established by an individuals, a group of individuals or a family and fall into one of four main categories but are not limited to:
- Private interest foundation: for estate planning asset protection, succession management
- Corporate - for the management of company pension and employee benefit schemes, for continuity of control
- Charitable - for the benefit of charitable organizations
- Special purpose - for philanthropic purposes, or other.
Private Interest Foundation Purposes
There is no limit or restrictions as to the uses of a private interest foundation or the objects/assets that can be put into (endowed) the foundation. Private foundations are set up with purposes of:
- Asset Management
- Asset Protection
- Estate Planning
- Social or charitable Philanthropy
- Tax planning
The private interest foundation generally should not be used for commercial or profit making business. Income of a foundation should be "passive income", example income earned from rent income, capital gains, interest or dividends and not income earned from running a business directly. If business activity is intended, we recommend the foundation own the shares of the company which runs the business. Order your offshore asset protection package today.
Offshore Private Foundation - Main Components
The main components, and people involved in the formation of a foundation are:
- Founder - the person who gifts assets to the Foundation
- Foundation Charter (also called the Declaration Of Establishment, or Memorandum of Establishment ) this is the official document creating and governing the foundation
- Foundation Council - the management body of the foundation
- Beneficiaries - the individuals or institutions who benefit from the Foundation.
The Founder establishes the foundation for a specific purpose. The Foundation Charter and articles (if any) will contain the purposes of the foundation. The Founder will appoint a Foundation Council, which will oversee and manage the foundation's assets in accordance with the founder's wishes. The council may distribute the assets, or a proportion to the beneficiaries. Order your offshore foundation today.
Offshore Foundations Advantages and Features
- Assets placed or endowed to a foundation can be of any kind: property, cash, art and any other assets (tangible, intangible).
- The foundation is like a corporation, it is a separate legal entity that can buy and sell property, can own assets such as shares in companies and other business entities, can open bank accounts, can enter into contracts or agreements;
- Foundations can be established as perpetual legal entities and can benefit beneficiaries who are yet unborn
- Earnings of an offshore foundation set up in Anguilla, Belize, Nevis and Panama are tax free.
- The document which identifies the beneficiaries and their entitlements are private, only limited information is submitted to the registrar (name, purpose, date of establishment and council details)
- The assets of a foundation are legally independent from the assets of the founder of the foundation, therefore assets within foundations are protected from insolvency or bankruptcy, seizure, claim or sale;
- Foundations can be formed by one or more individuals or corporations;
- A foundation can be used to orderly dispose and transfer assets to beneficiaries
- Your privacy and confidentiality is guaranteed - breach of confidentiality is penalized with stiff fines and imprisonment,;
- There are no reporting requirements;
- Assets placed in an offshore foundation (which is located in a tax-free jurisdiction) are not taxable.
We recommend that you always partner your offshore foundation with an offshore corporation such as an LLC or an IBC. If you want to have a protective entity (the foundation) but still have working operations, an offshore IBC owned by a foundation enables such functionality. The offshore company will be the "working" unit and the foundation will provide the privacy and the protection you need. Order your Asset Protection Package!
Our Offshore Foundation Services
At CCP Inc, we offer services for the fast formation and renewals of foundations in Anguilla, Belize, Nevis and Panama. We also provide a key service as council member which offers more privacy of ownership or involvement. Our jurisdictions are handpicked: Anguilla, Belize, Nevis and Panama; selected for favourable and encouraging investment conditions, also known for their sound reputation and modern legislations with special highlights such as:
- The Multiform Foundation in Nevis; able to have the structure of either a company foundation, trust foundation, partnership foundation or an ordinary foundation;
- Arbitration settlement allows for settling of disputes and controversy through the process of arbitration rather than going through the court (Anguilla and Belize);
- Confidentiality clauses that protect the identity of the founder and beneficiaries (all jurisdictions);
- Bond requirements to discourage frivolous law suits against the foundation, the founder, the council, the protector or the beneficiaries. Anyone seeking to commence action must first deposit the required bond amount to the registry. The bond value ranges from (but is not limited to) US 25,000 to US 50,000.
- Low maintenance, annual and administrative fees.
- Tax free offshore foundations.
All offshore companies and foundations, trusts, etc must be renewed each year to ensure the entity is in good standing. It is the job of the agent, us, to ensure your foundation is properly maintained each year, so you can continue to enjoy the benefits of offshore.
We also offer bank introductions, whereby you can have an offshore account established for your company and your foundation. With our invaluable bank introduction services, we make offshore banking much more accessible.
Offshore Foundations to Consider: