Seychelles private foundations

Seychelles private interest foundations

Seychelles National Assembly passed a new law that allows the registration of Private Interest Foundations, in December 2009.

Private Interest Foundations can be formed by a corporation or by a natural person to transfer his/her assets, in search of protection in favour of the beneficiaries. Seychelles PIF version, is largely based on Panama`s PIF version, and also shows some characteristics from Liechtenstein. Although Seychelles Foundations has a number of advantages over its competitors, especially in asset protection and tax reduction`s terms.

Seychelles PIF`s assets cannot include any immovable property within the territory, however, it can hold interests in Seychelles`IBCs, Limited Partnership and Seychelles licensed mutual funds. It may also hold interest or entitlement as a beneficiary under a Seychelles Trust or another Seychelles Foundation.

Features why Seychelles Private Interest Foundations are a good choice:

  • Asset Protection: Private Interest Foundations is one of the best opportunities to assure privacy. The Seychelles Foundations now provide an additional layer of protection, thanks to the Seychelles Private Interest Foundation instrument.
  • Privacy: having assets or investing through a Trust or Foundation will actually provide more privacy to your transactions, since it works like a shield in front of your personal information which no one will be able to penetrate in one or another way. The Foundation Charter establishes the Foundation and administrative provisions may be extended by regulations which are not available for public inspection.
  • Nil Seychelles Taxation: a foundation is exempt from Seychelles taxation on its income and its exempt from Seychelles witholding tax and stamp duty (except in relation to any permitted dealings in Seychelles real estate).
  • Tax Planning & Succession: through Foundations you will be able to achieve low tax or no tax at all when starting business or planning to invest. Since the founder and beneficiaries of a foundation have no ownership interest in foundation assets and as management and control of a foundation is vested in the foundation council. Its assets are not owned by the beneficiaries unless they are distributed according to the provisions of the foundation`s charter or regulations. Although IBCs have basically the same result, a Private interest foundation helps to legally avoid tax, plus the benefit of foundation assets can be passed on from one generation to the next, outside of the founder`s personal estate.
  • Founder`s reserve powers: A founder may reserve, in the foundation charter or regulations, to himself or for other persons, various rights – for example, the right to appoint or remove councillors, the right to appoint or remove protectors and the right to addt or exclude beneficiaries.
  • Easy Administration: no annual audit requirement; no requirement to file financial accounts or annual return in Seychelles; and no annual meeting requirement in respect to councillors, the founder/s or any protector.

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