Chinese Dilemma. Seychelles Solution

 Chinese Dilemma. Seychelles Solution

The number of High Net Individuals in China and South East Asia has been on a gradual rise. Old generation- self-made native millionaires are concerned of their wealth disbursement and cautious of external non- family business influences; their younger generation, with academic background from overseas universities is more broad minded, open to recruiting professional managers with expertise in business. The young generation is more adept and understanding of the offshore structuring and the related benefits of offshore Trusts and Foundations.

Mr. Chan is a middle aged successful Chinese business tycoon. He has owns multiple business like electronics, manufacturing goods, shipping and entertainment. Mr. Chan wants to plan his estate and arrange financial affairs over the longer term to optimize his tax exposure and enhance the long-term integrity of his assets.

structure

 

  • Mr. Chan is the Founder
  • The Foundation holds shares of underlying Offshore Holding Company
  • Offshore Holding Company holds the other group companies of Mr. Chan
  • Mr. Chan together with one other Individual(a Family Member) are  as Councilors
  • The Councilors manage & administer the Foundation
  • Foundation will have beneficiaries

Under the structure, companies currently owned by Mr. Chan are transferred to an offshore holding company. The offshore holding company holds the group companies Mr. Chan. On the top of these offshore companies, this recommended structure we will have an Offshore Foundation. Offshore Foundations are key tax exempt asset protection structures. Offshore foundation has its own legal personality. Foundation can be well mixed with offshore companies to maximize privacy, business confidentiality and to protect assets, accumulate and manage wealth.

Protector can be appointed to protect the interest of the beneficiaries. Assets of the Foundation (shares of an underlying company) will be held by the Foundation. Mr. Chan and the members of the family can be made beneficiaries and an entitlement which can also be fixed as per the wish of the Founder.