Seychelles Foundation

What is a Foundation?

A Foundation is a civil law concept, previously used for public and charitable purposes. Over a period of time, this concept has been extended to wealth management. The Foundation acts like a trust and functions like a company, effectively combining the best features of both.

When assets are endowed to the Foundation (by the Founder), they become the property of the Foundation with full legal and beneficial title. They are no longer considered to be the assets of the Founder. The beneficiaries of the Foundation have no legal rights to these assets and they cannot exercise any control over its decisions.

How can you use Foundation as an entity?

It is possible to use a foundation for private, charitable or a specific purpose. Else, it could be a combination of any. Some prominent usages of Foundations are for:

  • Estate planning
  • Asset protection
  • Charitable and Cultural purposes
  • Company purposes
  • As part of a structure to protect underlying assets / companies of a group
  • Staff welfare foundations where both employer and/or employees contribute
  • Tax incentives

Why Seychelles Foundation?

The Seychelles Foundation is a separate legal entity (similar to a company) but with beneficiaries rather than shareholders (like a trust). The foundation acts like a trust and functions like a company. A Seychelles Foundation can be ideal in many cases, though it is not intended to engage in commercial activities on a daily basis. But the main advantage is that there are no restrictions on the trading activities of companies owned by the Foundation.

Key Features of Seychelles Foundation

 

Minimum initial assets required
  • USD 1
  • Tangible assets: Real estate, inventories, vehicles, equipment, buildings, currencies, and precious metals
  • Intangible assets: Goodwill, patents, intellectual property such as software and copyrights
  • Financial assets: Accounts receivable, shares, bonds, options
Constitutional document
  • The Charter is the constitutional document of the Foundation
  • It details its purpose, term, appointment and removal of councilors, beneficiaries, etc
  • It is registered with the Authorities
  • Regulations detailing other internal procedures are optional
Duration of Foundation
  • Fixed period; or
  • Indefinite period
Re-domiciliation
  • Permitted
Taxation
  • Tax exempt in Seychelles:
    Income Tax
    Capital Gains Tax
    Withholding Tax
    Inheritance Tax
    Stamp Duty
Annual Requirement
  • Required to maintain books of accounts at the registered office
  • No annual filing
Local Requirement
  • Registered agent
  • Registered office
Restrictions on Foundation/Trade
  • Unlawful, immoral, or activities contrary to public policy
  • Business in Seychelles
  • Holding immovable property in Seychelles
Limitations
  • Foundations limit their commercial activities to non-habitual activities to achieve their purpose, orderly investment & management of assets
  • Subsidiaries however can conduct any commercial activity

 The Offshore asset protection trust – An overview of our benefits

  • A separate legal entity
  • Provides protection for forced heir ship, litigations and bankruptcy
  • Can be used as an investment purpose vehicle
  • No reporting requirement in country of residence
  • Underlying companies owned by a Seychelles Foundation can get benefits of DTA agreements
  • Founder can retain the rights for management of the assets
  • Can clearly outline the beneficiaries and hence acts as a substitute for a will while ensuring proper maintenance of the underlying assets
  • Fully exempt from Tax
  • Possibility of redomiciling a foreign foundation

The Abacus Advantage

Abacus Seychelles has a priceless expertise in the designing and delivery of the right Foundation for individual needs. Sometimes, a Foundation works better when it is integrated with other tools such as IBCs or Seychelles licensed mutual funds. Abacus provides you solutions for your individual needs. Please contact us at www.abacus-offshore.com, or at +248 461 0780, to talk to us. We would be happy to help!
For Enquiry:  enquiry@abacus-offshore.com