An offshore foundation can be compared with that of a trust. There are certain similarities between the two, for example, both a trust and a foundation offer high levels of confidentiality between the client and those responsible for administering the trust. However, a trust and a foundation have a number of differences, and are formed in different ways. For example, the registration and formation stages generally differ, along with the techniques employed to administer both entities.
A foundation is created by a founder, who will transfer the assets to the foundation’s council members. These members are responsible for administering the foundation for the benefit of the beneficiaries, who will ultimately be provided with the assets detailed within the foundation.
The first stage in creating an offshore foundation is to select an appropriate jurisdiction for your foundation requirements. The process of creating the foundation will vary from one jurisdiction to another, as each has its own rules and regulations in place with regards to the formation and administration of a foundation. Furthermore, the property that can be placed within the foundation will differ from one jurisdiction to another.
In setting up an offshore foundation, it is important to understand what assets, or ‘property’, can be placed within the foundation before forming your offshore foundation.
The types of property that a foundation can hold include, but are not exclusive to:
Although different types of property can be placed into a foundation, this will vary from one jurisdiction to another and will be dependent on the specific law in place within the foundation’s jurisdiction. Every offshore foundation that is created is tailor-made by the founder and therefore each foundation will vary in length, duration and content.
Starting Business can assist you with your offshore foundation requirements. For further information, please Contact Us.