Offshore Incorporation Services

Offshore incorporation services are offered in the offshore jusdictions or tax havens. Offshore...

Offshore Foundations

Offshore foundations are offshore entities which are used because of their ability to provide...

Offshore Companies

Offshore companies are business companies which are incorporated in offshore jurisdictions or tax...

Offshore Foundations

Offshore foundations are offshore entities which are used because of their ability to provide excellent asset protection. Foundations were first used in Europe by extremely wealthy families as a means of managing assets and for protection as well. Today foundations are basically used for the same purpose but they can be registered as offshore entities. Offshore tax havens with legislation for the registration of offshore foundations are Nevis, Panama, Bahamas and many others.

Offshore company incorporation has led lots of families to other estate and tax planning answers. For years we have recommended economic citizenship programmes which promote freer travel due to fewer visa restrictions, safety from social unrest and owning a second home. We put clients in contact with a registered agent who gives informed advice on second citizenship requirements.

There are two types of offshore foundations which can be formed in the offshore tax havens; the private foundations and charitable foundations. The offshore private foundations are formed by individuals who wish to protect and manage assets and wealth for beneficiaries and future generations and the offshore charitable foundations as the name suggests are set up for charitable purposes which will benefit a large section of a society which do not necessarily have to be in the jurisdiction of foundation registration.

Offshore foundations can be used for a number of purposes including protecting wealth against forced heirship, for tax planning (to minimize or eradicate inheritance tax and other forms of taxation), to control the outcome of wealth over long periods of time among others. A person wishing to form an offshore foundation can prepare a letter of wishes which will be used to manage the assets in an offshore foundation. The offshore foundation itself cannot get involved in any commercial activity or undertake business operations but is allowed to participate in activities which will generate benefits for the beneficiaries. For example a foundation can be the shareholder of a company which will be able to carry out normal business activities and operations.

For the registration of an offshore foundation the following parties are needed; the Founder, Foundation Council, Protector and the Beneficiaries. The founder is the persons wishing to register the offshore foundation and submits the Foundation Charter (registration information or document) with the authorities. The Foundation council is the person who oversees the objectives of the foundation. They role is similar to that of company directors and may not be less than three (3) persons. Some offshore jurisdictions allow corporations to be foundation council members. The Protector of the offshore foundation is the person who is in control of the foundation and manages the assets placed in the offshore foundation. The beneficiaries are the persons who will inevitable inherit the assets of the foundation.

For offshore foundation incorporation a Foundation Charter is submitted with the name of the foundation, the assets being placed in the foundation, how assets are to be distributed, the names of the beneficiaries, the names and addresses of council members and founder, the objectives for forming the foundation, the length of time the foundation will be in existence for and the name and address of the registered agent.

Offshore foundations are tax exempted entities so therefore they will pay no local taxes on incomes and other assets which are generated from outside of the offshore jurisdiction of registration. Assets in the offshore foundations are protected by strict laws in the offshore tax havens.

Back to Top