PRIVATE INTEREST FOUNDATIONS SEYCHELLES
The Seychelles private interest foundation is becoming a very popular type of asset protection as the years go by. It is based on the Panama foundation and the German Liechenstein model, but it has its own unique modifications, making it very attractive for foreign investors. The primary reason why it is so popular is because of the tax exemption benefits as well as financial protection. The foundation law of the country has drafted in so that all activities within the foundation remains legal. It provides a dual structure when used as an offshore holding company, making it impossible for threats to attack your shares.
Benefits of the Seychelles private interest foundation
Investors who invest in the private interest foundation have absolute anonymity and the names of the directors or founders need not be put down in the registry. The foundation is free from Seychelles income, stamp or business tax, and no Withholding Tax is levied when distributions are made. Registration is easy and only requires the name of a foundation charter. The process from thereon out is extremely simple and efficient. The government fee to initiate the foundation is $200 and the minimum initial capital is but $1.
The structure of the foundation is very comprehensive. Only one councillor is required and can be either a person or a corporate entity. The Founder may be a councillor but not a sole councillor. No annual return needs to be filed, no accounts have to be audited, and there is no need for annual meetings.
The Foundation Act provides that a Seychelles PIF is a legal entity without any ownership interest in the assets of the foundation. It protects the transfer of assets within the foundation and it requires any claims by a creditor of the founder can only be brought within 2 years of the setup of the foundation.
A nominee can sign the foundation charter and there are no requirements to file the foundation’s regulations. The names of the beneficiaries may also be withheld and they do not have to be stated in the charter. The founder has the right to appoint or remove councillors, beneficiaries, or protectors. Protectors may be appointed in order to veto decisions, but a sole councillor may not act as a protector of the foundation.
Documents needed to open a Seychelles private interest foundation
The documents that are needed to open a Seychelles private interest foundation are the following: a certificate of registration, a sealed/stamped copy of the charter, foundation regulations, resolution to open a bank account, appoint a lawyer, and appoint an accountant, and a template letter of the wishes of the foundation.