Offshore Foundations

Offshore Foundations

Setting up an Offshore Foundation with EFSAG

EFSAG consultants are experienced in the formation and management of offshore foundations and can assist you every step of the way, from finding the most favorable jurisdiction that offers you complete asset protection to the effective administration. EFSAG can assist all individuals, family members, organizations or corporate entities, seeking a tailor made solution.

Select from our available jurisdictions to learn more:

belize foundationBelize liechtenstein foundationLiechtenstein panama foundationPanama

Why Form an Offshore Foundation

Offshore foundations can be described as a trust in a corporate shell. They adopt their own legal personality and are in most cases considered the corporate alternative to a trust. However, it can only be formed in certain jurisdictions that provide the necessary foundation law.

As mentioned, an offshore foundation is considered as a highly effective corporate alternative to an offshore trust and is typically established for charitable purposes however non charitable foundations may also be created. There are many reasons why individuals, family members and organizations may decide to form one, some of which are detailed below:

High levels of asset protection
Heightened privacy and confidentiality
Tax planning
Charitable causes
Considered a legal entity and can sue third parties
The assets are protected against creditor claims towards the foundation owners
Foundations can open bank accounts under the name of the foundation and can own multiple corporations
Avoidance of forced heirship rules in certain jurisdictions
Effectively offer a centralized system to manage assets
Tax free donations

The main uses of an Offshore Foundation

The primary uses of an offshore foundation are for the protection of personal and corporate wealth.  Estate management and tax planning can also be achieved and allows for the most efficient and profitable outcome for your wealth in a legitimate and secure environment.  Not only do they protect the property it holds but it prevents forced heirship rules from coming into place and staking claims on the foundation’s assets.

Foundations are a widely used for:

Pension fund schemes
Employee share option schemes
Charity groups
Art collections
Stock option schemes
Insurance plans

The types of assets which can be held in an offshore foundation include but are not limited to;

Shares and stocks for private and public corporations
Portfolios of investment plans
Real estate
Intellectual property
Bank deposits
Life assurance policies

Foundations, like trusts, keep a high level of confidentiality for all parties involved and this is a very much desired feature for potential offshore investors.  Furthermore, they are generally quick and easy to create and allow for tax deductable donations, hence why they are so popular among charitable organizations.

How an Offshore Foundation is created

An offshore foundation requires the following four main parties; “founder”, “protector”, “beneficiary” and “council members”.  The founder is the individual or group who establishes the foundation and transfers the property into it. The protector (like in a trust) acts as a supervisor for the application and maintenance of the foundation, ensuring strict compliance while the beneficiaries are the individuals who are benefiting directly from the foundations operations. Lastly, the council members are those who implement and supervise the foundations activity and purpose. There is however, no requirement for a foundation to have trustees, members or shareholders, allowing for the formation to be a less complex process and created in a timely manner.

Depending on the type of foundation you wish to create and the selected jurisdiction it will be established in, the set up procedure will vary accordingly. However in principle, the above mentioned four parties will always be required to create a fully functioning offshore foundation.

Setting up an Offshore Foundation with EFSAG

EFSAG consultants are fully equipped to draw on international resources and provide comprehensive guidance on where to form an offshore foundation, which type to create and how to administer the foundation in line with the relevant laws. Our dedicated and specialist consultants can advise you every step of the way and will support you with the initial filing of documentation and application forms through to the effective tax planning and asset protection of your foundations property.

To learn how EFSAG can assist you, complete our online Contact Form