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.
The primary benefits of the Seychelles Private Foundation are in terms of the opportunities it offers by way of Tax deferral, Succession planning, and Financial Privacy. The applicable law also contains some of the strongest asset protection provisions ever conceived for a structure of its kind.
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.
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:
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.
Starting June 1, foreign investors and businessmen will be allowed to establish and fully own onshore companies without sponsor requirements from UAE National.