Seychelles Foundation
Acts like a trust, functions like a company

SEYCHELLES FOUNDATION

A 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, effectively combining the best features of both.

When assets are endowed to the Foundation (by the Founder), they become the property of the Foundation with full legal and beneficial title. They are no longer considered to be the assets of the Founder. The beneficiaries of the Foundation have no legal rights to these assets and they cannot exercise any control over its decisions.

How can you use Foundation as an entity?

It is possible to use a foundation for private, charitable or a specific purpose. Else, it could be a combination of any. Some prominent usages of Foundations are for:

WHY SEYCHELLES FOUNDATION

The Seychelles Foundation is a separate legal entity (similar to a company) but with beneficiaries rather than shareholders (like a trust). The foundation acts like a trust and functions like a company. A Seychelles Foundation can be ideal in many cases, though it is not intended to engage in commercial activities on a daily basis. But the main advantage is that there are no restrictions on the trading activities of companies owned by the Foundation.

KEY FEATURES SEYCHELLES FOUNDATION

General

Duration of Foundation	Fixed or Indefinite period
Re-domiciliation	Permitted
Tax exemption in Seychelles	Income Tax, Capital Gains Tax, Withholding Tax, Inheritance Tax, Stamp Duty
Restrictions on Foundation/Trade	Unlawful, immoral, or activities contrary to public policy Business in Seychelles Holding immovable property in Seychelles
Limitations	Foundations limit their commercial activities to non-habitual activities to achieve their purpose, orderly investment & management of assets Subsidiaries however can conduct any commercial activity

Corporate

Minimum initial assets required	USD 1 Tangible assets: Real estate, inventories, vehicles, equipment, buildings, currencies, and precious metals Intangible assets: Goodwill, patents, intellectual property such as software and copyrights Financial assets: Accounts receivable, shares, bonds, options
Constitutional document	The Charter is the constitutional document of the Foundation It details its purpose, term, appointment and removal of councilors, beneficiaries, etc It is registered with the Authorities Regulations detailing other internal procedures are optional

Local

Registered agent	Yes
Registered office	Yes

Annual

Maintainance of books of accounts at the registered office	Required
Annual filing	Not required

SEYCHELLES
FOUNDATION
ADVANTAGES

A separate legal entity

Provides protection for forced heir ship, litigations and bankruptcy

Can be used as an investment purpose vehicle

No reporting requirement in country of residence

Underlying companies owned by a Seychelles Foundation can get benefits of DTA agreements

Founder can retain the rights for management of the assets

Can clearly outline the beneficiaries and hence acts as a substitute for a will while ensuring proper maintenance of the underlying assets

Fully exempt from Tax

Possibility of redomiciling a foreign foundation

WHY US

Abacus Seychelles has a priceless expertise in the designing and delivery of the right Foundation for individual needs. Sometimes, a Foundation works better when it is integrated with other tools such as IBCs or Seychelles licensed mutual funds. Abacus provides you solutions for your individual needs. Please get in touch with us. We would be happy to help!