Abacus (seychelles)Ltd.

Seychelles Foundation – Your Wealth Management Solution!

Seychelles adds another versatile investment vehicle to its financial services product portfolio, ‘The FOUNDATION’.

The Foundation is a civil law concept, previously used for public and charitable purposes. Over a period of time, this concept has been extended to wealth management.

The foundation acts like a trust and functions like a company. It combines the best features of both.

This entity has a separate legal existence and can hold assets for the benefit of another person with provision for future maintenance. The funds are endowed to the foundation for any of the following purposes;

Wealth and asset management

Succession planning

Investment holding

Charitable and Philanthropic purposes

Holding of intellectual properties

Efficient tax planning

Like a trust, a foundation holds assets endowed by a “Founder” for the benefit of beneficiaries. An advantage over trusts is the assets are held by a separate legal entity and managed by a council like the board of directors of a company. A protector is optional.

An additional advantage is that unlike a trust a founder may stay involved in its management.

These combined features make foundation the vehicle of choice for estate planning, asset protection.

Get acquainted with the Seychelles Foundation

A. Key elements of Seychelles Foundation

B. Foundation vs Trust

C. Foundation vs Company

D. Procedures to form the foundation

A. Key elements of Seychelles Foundation

Minimum initial assets required	USD 1
Constitutional document	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
Duration of Foundation	Fixed period; or Indefinite period
Re-domicilation	Permitted
Taxation	Tax exempt in Seychelles
Annual Requirement	Required to maintain books of accounts at the registered office No public annual filing
Local Requirement	Registered agent Registered office
Restrictions on Foundation/Trade	Business in Seychelles Holding immovable property in Seychelles

Parties to the foundation

Founder	The person who creates the foundation Founder can be a natural or legal person. Specific rights like appointment of the council, investment decisions, etc. can be reserved by the Founder The charter maybe signed by the founder or on his behalf He can be a beneficiary
Council	The council is the board which carries out the objects of the foundation in the manner prescribed by the charter/law Minimum 1 councilor required Can be a natural or legal person located anywhere The founder can be a councilor but not sole councillor
Protector	The protector monitors the management of the foundation and conduct of the councillor Appointment of a protector is optional Founder, beneficiary or councillor maybe appointed as protector
Beneficiary	Minimum one beneficiary required Founder can be a beneficiary

B. Foundation vs Trust

Features	Foundation	Trust
Separate legal entity	Yes	No
Functionaries	Council, protector, founder	Trustee, protector
Documents	Charter and regulation must be written	Can be oral or written
Merger and consolidation	Permitted under the law	If provided in the trust documents
Managing authority	Council	Trustee
Meetings	Required to maintain records of meetings	Meetings not mandatory
Duration	For perpetuity	Limited period
Reservation of rights/ powers	Founder can reserve rights	No
Can the creator retain control?	Yes, by being a councillor, beneficiary or protector	No

C. Foundation vs Company

Features	Foundation	Company
Issue of shares	Not required	Required
Supervisor (Protector)	Permitted	Not permitted
Succession	Only beneficiaries are successors	Through transmission
Purpose	Wealth management	Commercial
Statutory protection	Provided	Not provided
Key difference	Carry out wishes of founder	Conduct activities that directors and shareholders agree upon

D. Procedures to form foundation:

Seychelles foundation is quick and easy to form.

Our 4-step process:

1. Send us three choices of names for Foundation
2. Fill up our application forms and send us the scanned copies along with KYC documents
3. Preparation of Foundation Documents (Charter and Regulations)
4. Registration of the Foundation

Congratulations your foundation is set up!