Seychelles Trust & Foundations
International Foundations and Trusts are used for asset protection, gain control as to how those assets are passed on to future generations while making them flexible, reliable and tax efficient. Should one opt for a Foundation or a Trust, depends on one’s requirement. The table below gives an indication of some of the factors one needs to consider before opting of either.
|Seychelles Trust||Seychelles Foundation|
|Initial assets required||Minimum USD 1||Minimum USD 1|
|Governing Law||International Trusts Act, 1994||Foundation Act 2009|
|Incorporate Time||4-5 days||4-5 days|
|Cost||Higher setup cost||Lower setup cost when compared to a Trust.|
|Constitutional document||Trust deed (not filed with the authorities)No names are available to public||The Charter is the constitutional document of the Foundation. It details its purpose, term, appointment and removal of councillors, beneficiaries, etc.It is registered with the Authorities
Regulations detailing other internal procedures are optional an is not required to be filed with the authorities
|Succession Planning||Can be used for succession planning||Can clearly outline the beneficiaries and hence acts as a substitute for a will while ensuring proper maintenance of the underlying assets|
|Duration||Trusts in Seychelles can be formed for a period of 100 years
A charitable trust can be formed for perpetuity
|Fixed period; or
|Re-domiciliation||Can be challenging||Permitted|
|Taxation||Tax exempt||Tax exempt for a period of 20 years in Seychelles:
Capital Gains Tax
|Annual Requirement||Required to keep accounting records, no filing requirement||Required to maintain books of accounts at the registered office
No annual filing
|Local Requirement||Qualified trustee||Registered agent and Registered office|
|Restrictions on Trust/Trade||Trust cannot hold immovable property in Seychelles.
It cannot own shares of domestic companies registered in Seychelles.
Settlor cannot be resident of Seychelles.Settlor cannot be sole beneficiary of Trust. An underling IBC of the trust can conduct business activities.
|Unlawful, immoral, or activities contrary to public policy. Business in Seychelles
Holding immovable property in Seychelles. Underlying companies owned by a Seychelles Foundation can get benefits of DTA agreements
|Confidentiality||No filing with Seychelles authorities. Trust register is not accessible to public.No disclosure of names of settlor or beneficiaries to regulator required||Name of the founder is stated in the charter which is filed with the authorities|
|Reservation of Rights||Settlor of the trust cannot reserve rights||A founder may reserve, in the charter or regulations, for the founder or any other person, any of the following rights, namely, the right to direct or approve the following ─a. investment activities of the Foundation;
b. amendment of the charter or regulations;
c. appointment or removal of a councillor;
d. appointment or removal of any supervisory person;e. rights, entitlements and restrictions of a beneficiary;
f. addition or exclusion of a beneficiary;