Seychelles Private Interest Foundation (PIF)

New Offshore Foundation law in the Seychelles - PIF

The Seychelles Private Interest Foundation (“PIF”) is the latest new product offered by the tax free jurasdiction, Seychelles.

Passed in to law in December 2009 the Seychelles Private Interest Foundation, PIF, draws heavily on the more popular aspects of the Panama and Lichtenstein models, but includes its own unique features, sure to make it attractive particularly to those clients for whom asset protection and low taxation is a major focus.

The primary benefits of the Seychelles Offshore Foundation (PIF) are in terms of the opportunities it offers by way of Tax minimisation, Succession planning and Financial Privacy.
The law also contains some of the strongest asset protection provisions ever conceived for a structure of its kind. 

Neither the names of the person/s establishing the PIF nor the persons who are to benefit from the PIF have to be disclosed to the Registry and the structure is easy to register - achieved by  simply filing the Foundation Charter (which document does NOT have to include the Councilors’ names)

Features & Benefits of Seychelles Private Interest Foundations

Other features of Seychelles Private Interest Foundation include:

1.      Nil Tax: Complete exemption from  Seychelles income or business tax, no WHT is levied when distributions are made and no stamp duties are applicable

2.      Fast Registration and name approval: Seychelles Foundations can be incorporated within as little as 4 hours of request

3.      Inexpensive:

(a)   annual government fee is only $200
(b)   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)

4.      Easy to Establish: Requires only the registration of a Foundation charter

5.      Simple to Structure:

(a)   Only one Foundation Councilor is required (which can be either a person or a corporate entity)
(b)    The Founder of the PIF may also be a Councilor (but can’t be sole Councilor)

6.      Easy to Administer a PIF:

(a)   No annual return need be filed
(b)   Accounts do not have to be audited
(c)    No requirement to file annual accounts
(d)   No annual meeting need be called

7.      Asset Protection: The new Seychelles Foundation Act: 

(a)   Specifically provides that a Seychelles Private Interest Foundation - PIF, is a separate legal entity in its own right
(b)   Specifically provides that neither the Founder nor the Beneficiaries have any ownership interest in the Foundation assets
(c)    Specifically protects the transfer of assets to the Seycehlles PIF, from attack by creditors of the Founder
(d)   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

8.      Privacy of a Seychelles Private Interest Foundation (Anonymous Offshore Foundation): 

(a)   A Nominee can sign the Foundation Charter
(b)   There is no requirement to file the Foundation’s regulations
(c)   There is no requirement to file the names of the Foundation Beneficiaries (or Protector).
(d)   Names of the Councilors do not have to be stated in the charter

9.      Succession Planning via a Seychelles Foundation:

(a)   Entitlement to benefit from Foundation assets can be passed from one generation to the next  outside the bounds of the Founder’s will or personal estate
(b)   Seychelles law specifically excludes the operation of foreign laws as to forced heirship

10.  Founder can reserve specific powers to himself or to others, including:

(a)   the right to appoint or remove Foundation Councilors
(b)   the right to add or exclude Beneficiaries
(c)   the right to add or remove Protectors

11.  A Foundation Protector can be appointed:

(a)    And can veto certain decisions (eg change of Councilors or Beneficiaries)
(b)    A Founder, a Beneficiary or a Councilor can also be appointed as Protector (but a sole Councilor or sole Beneficiary cannot act as Protector)

12.  Flexible Uses: A Seychelles Private Interest Foundation (Offshore PIF):

•         Can have beneficiaries; or
•         May solely be for a specified purpose (without beneficiaries); or
•         Can be for a specified purpose and have beneficiaries.

Please do contact us for advise on how this form of offshore foundation, could benefit you, or your company structure. Please contact us via the contact form or call us free of charge.
 

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