Private Interest Foundations Seychelles

Seychelles also now offeres one of the opportunity to register Private Interest Foundations, thank to a new law passed by the National Assembly in December 2009.

The Seychelles Private Foundation (“PIF”) is a legal entity that can be created by either a natural person or a corporation that later transfers part or all of his/her assets to the Private Foundation so they can be managed and protected in favour of the Beneficiaries.

The Seychelles version of a Private Interest Foundation is based heavily on that of Panama and also channels Lichtenstein in places but has a number of advantages over its competitors particularly in terms of asset protection and tax reduction.

Why use a Trust / Foundation:Private Interest Foundation in the Seychelles
The reasons for establishing a Trust or Private Interest Foundation are many.

Asset Protection
When planning an asset protection structure and from a asset protection point of view it is one of the best opportunities to assure privacy, asset and equity protection. This vehicle has been used by many professionals for years with success, now it is even been more effective and with an additional layer of protection thanks to the Seychelles Private Interest Foundation instrument.

Privacy
Having your company shares, assets and other investments hold by a Trust or Foundation will provide an additional layer of privacy, actually you build a shield in front of your personal information which no one will be able to penetrate in one or another way.

Tax Planning and Avoidance
When planning your business or starting a new one or even plan to do Investments a foundations will often help you achieving a low tax to no tax at all, even though it is possible to obtain similar effects with regular IBC's a Private interest foundation helps to legally avoid tax.

Requirements to register for a Private Interest Foundation in the Seychelles

  • Copy of passport
  • Utility bill not older than 3 months

Our fee for the registration including government fees

EUR 3.250 including the preparation of documents as per agreement

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Learn more, visit out Foundation and Trust F.A.Q.

For more information or to order a Seychelles Private Interest Foundation please do not hesitate to contact us

PRIVATE FOUNDATIONS vs. TRUSTS

Although similar, Private Interest Foundations (“PIFs”) and Trusts have very clear differences: PIF’s are based on Civil Law and they are constituted by means of a public legal document and filed for registration, it is in fact, an existing legal entity, whereas a Trust is based on Common Law and are established by means of a private contract that does need to be filed with any government agency, it is not an existing legal entity, it is in fact tantamount to a legal contract. The difference between the Civil Law and Common Law is that Civil Law is based on written laws and can only be changed, modified or amended by means of a legislative act; it is less flexible than Common Law.

The latter is based on common knowledge, court interpretations and rulings, therefore is more flexible, but more volatile. Another difference is that the Foundation Charter does not need to specify the rights and obligations of every party involved that can be done by means of a private and confidential document, while a Trust deed has to be very specific and clear regarding the rights and obligations of the Trustee. In a PIF the assets are placed into the Foundation's name at the time of the transfer, while in a Trust, it is the Trustee who receives the assets to his or her name. As for administration fees, those of an estate in a Foundation are low, while in a Trust, the Trustee fees depend on the value of the estate: the heftier the estate, the bigger the fees.

Benefits of the Seychelles Private Interest Foundation:

  • Nil Tax: Complete exemption from Seychelles income or business tax, no WHT is levied when distributions are made and no stamp duties are applicable
  • Fast Registration and name approval: Seychelles structures can be incorporated within as little as 4 hours of request
  • Inexpensive:
  • annual government fee is only $200
  • Minimum initial capital required is just US$1 which can be paid after registration (contrast that with Panama where one must invest a minimum of US$10,000 to set up a PIF)
  • Easy to Establish: Requires only the registration of a Foundation charter
  • Simple to Structure:
    • Only one Councilor is required (which can be either a person or a corporate entity)
    • The Founder may also be a Councilor (but can’t be sole Councilor)
  • Easy to Administer:
    • No annual return need be filed
    • Accounts do not have to be audited
    • No requirement to file annul accounts
    • No annual meeting need be called
  • Asset Protection:The Act:
    • Specifically provides that a Seychelles PIF is a separate legal entity in its own right
    • Specifically provides that neither the Founder nor the Beneficiaries have any ownership interest in the Foundation assets
    • Specifically protects the transfer of assets to the PIF from attack by creditors of the Founder
    • Requires that any claims by a creditor of the Founder can only be brought within 2 years from the date of transfer of property to the PIF
  • Privacy:
    • A Nominee can sign the Foundation Charter
    • There is no requirement to file the Foundation’s regulations
    • There is no requirement to file the names of the Foundation Beneficiaries (or Protector).
    • Names of the Councilors do not have to be stated in the charter
  • Succession Planning:
    • Entitlement to benefit from Foundation assets can be passed from one generation to the next outside the bounds of the Founders will or personal estate
    • Seychelles law specifically excludes the operation of foreign laws as to forced heir ship
  • Founder can reserve specific powers to himself or to others including:
    • the right to appoint or remove Councilors
    • the right to ad or exclude Beneficiaries
    • the right to add or remove Protectors
  • A Protector can be appointed:
    • and can veto certain decisions (eg change of Councilors or Beneficiaries)
    • A Founder, a Beneficiary or a Councilor can also be appointed as Protector (but a sole Councilor or sole Beneficiary cannot act as Protector)
  • Flexible Uses: A Seychelles Foundation:
    • Can have beneficiaries; or
    • May solely be for a specified purpose (without beneficiaries); or
    • Can be for a specified purpose and have beneficiaries.

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