Seychelles Foundations
The Seychelles Foundation is an important wealth management and wealth preservation vehicle and offers a transparent and modern wealth-holding alternative to the trust.
A Foundation is particularly interesting for private clients resident in jurisdictions where the concept of the Anglo-Saxon trust is unknown. Foundations are bodies corporate – in effect companies without shareholders.
A Foundation focuses on the needs of the Founder. The beneficiaries of the Foundation lack the rights or protection of beneficiaries of trusts – unless the Founder wishes to provide otherwise. The regulations of the Foundation are contractual, unlike the equitable obligations which underlie the trust.
Typical use of a Foundation:
- To own offshore companies and therefore segregate such assets from the taxable estate of the Founder
- To consolidate the ownership of corporate groups
- To hold assets “off balance sheet”
- To avoid compulsory succession of valuable assets
- To protect individuals from related party disclosures in company financial statements under IFRS or IAS
The parties behind a Foundation:
A Foundation is managed by its Councillors (usually appointed by the Founder or by the terms of the Foundation Charter or Regulations) and there are no required qualifications or residence requirements. The Council must consist of at least one person, who may be a body corporate. The duties of the Council are to carry out the objects of the Foundation; to manage and administer the assets of the Foundation; and to do such other acts as may be provided by the Charter, Regulations and the Foundations Act. A Protector can be appointed to oversee the Councillors. The Founder may also reserve to him or herself certain rights, such as the right to direct or approve the investment activities of the Foundation, the appointment or removal of a Councillor, the appointment or exclusion of a beneficiary, or the dissolution of the Foundation.
A Foundation can be continued in another reciprocal territory, and a foreign registered Foundation can also continue in Seychelles.
Vistra Foundations (Seychelles) Limited is licensed and regulated by the Seychelles Financial Services Authority to provide foundation services.
