Password must be 8-15 alphanumeric characters with these requirements
- Minimum one number (0-9)
- Minimum lowercase letter (a-z)
- Minimum one uppercase letter (A-Z)
- Minimum one special character "#?!@$%^&*-+<=>"
- Example password 99azTR?!@
What is an offshore foundation? What are its origins? Why would I need a foundation? Is it legal to form a foundation? Is it private? How can I protect my assets?
The origin of offshore foundations arises in the Principality of Liechtenstein in 1926, in order to safeguard the interests of a group of people. An offshore foundation can be defined as an entity between a Trust and a company registered outside the residence country of the founder(s) and whose main purpose is to benefit and protect a group of individuals in financial sense.
In offshore foundations, the founders, administrators or beneficiaries are completely separated. They do not have owners, shareholders, participants or partners; they cannot carry out any type of commercial activity on a continuous basis since the statutes of the foundation indicate the purpose for which it was founded. However, they can own shares of other companies, receive dividends and participate as shareholders in any company or foundation.
An offshore foundation operates in a following way: the founder forms a foundation, for example in Panama, and transfers the assets or rights to its foundation that in its turn creates an international business company (IBC). The company (IBC) buys bearer shares in an investment fund that will pay the dividends annually to the IBC company whose owner is a foundation. In this way, the foundation will not have beneficiaries until the founder is absent. An offshore foundation is not required to have a physical office in the country where it is incorporated but the information about the board of directors, the promoter and the first shareholder does appear in the commercial register. As a general rule, the foundation agent appointed by the founders will appear in the registry. The Panamanian laws do not require any information related to final beneficiary to be included in the articles of incorporation of the foundation and, as a result, it is difficult to know his identity.
The founder, who is the maximum authority, has the following rights: to concede, to sell, to transfer or donate the goods, but not to create debts. The founder can maintain total anonymity of the beneficiaries, be the only beneficiary and avoid paying taxes to the founders or beneficiaries of the entity.
The latest events related to the Panamanian papers, have shown the usage that has been given to the Panamanian foundations by certain individuals through negligence. Forming an offshore foundation is legal and its purpose is not to pay taxes but, on the contrary, to protect the assets of one or more people. Nevertheless, the future of offshore foundations is bright. According to the latest regulations on automatic information exchange, the benefits generated by these foundations can be repatriated to the country through double taxation treaties where the founder is obliged to pay the income tax, but the protection of heritage is still strong and cannot be broken.
The uses that can be given to an offshore foundation are the following:
In reference to the latest international regulations for the prevention of tax fraud and automatic information exchange treaties, banks will have a right to report information as long as these four conditions are met: