Seychelles Foundation

Main Features of Seychelles Foundations

Foundations are the latest addition to the Seychelles portfolio of financial services products. The Seychelles Foundation is a separate legal entity. Once the founder transfers assets to a foundation, those assets become the sole property of that foundation with full legal and beneficial title and do not form part of the founder’s personal estate.

The assets of a Seychelles Foundation cannot include any immovable property based in Seychelles. The foundation may however hold interests in Seychelles IBCs, Limited Partnerships and Seychelles licensed mutual funds. It may also hold an interest or entitlement as a beneficiary under a Seychelles Trust or another Seychelles Foundation.

A Seychelles Foundation may be used for a host of purposes, but it is not intended to engage in commercial activities on a daily basis. However, there are no restrictions on the trading activities of companies wholly or partly owned by the Foundation.

Key features of Seychelles foundations:

Registering a Foundation in Seychelles
Most Relevant Advantages

Registering a foundation in Seychelles offers a variety of advantages, making it an attractive option for individuals and entities looking for efficient wealth management, asset protection, and tax planning. Here are the most relevant advantages:

Tax Efficiency

• Tax Exemption: Seychelles foundations are exempt from local taxes on income, profits, dividends, and capital gains derived from activities outside Seychelles.
• No Withholding Tax: No withholding tax is imposed on payments made to beneficiaries.

Asset Protection

• Strong Legal Framework: Seychelles’ Foundation Act 2009 ensures a high level of protection for assets held within the foundation.
• Creditor Protection: Assets transferred to the foundation are protected from creditors of the founder after two years.
• Ring-Fencing of Assets: The assets held in the foundation are legally separated from those of the founder, beneficiaries, and council members.

Privacy and Confidentiality

• Non-Disclosure of Beneficiaries: Details of beneficiaries, council members, and protectors are not part of the public record.
• Anonymity for Founders: The founder’s identity is not disclosed in public documents.
• Discretion: Seychelles ensures high levels of confidentiality under its legal framework.

Flexibility and Control

• Multi-Purpose Use: Foundations can be used for wealth management, estate planning, charitable purposes, and holding investments.
• Founder’s Rights: Founders can retain control over the foundation during their lifetime by appointing themselves as council members or protectors.
• Tailored Structure: The charter and regulations can be customized to meet the specific needs of the founder.

No Minimum Capital Requirements

• There are no minimum capital requirements, making the formation process affordable and accessible.

Simple Formation and Maintenance

• Fast Registration: Establishing a foundation in Seychelles is straightforward, often completed within a few days.
• Low Costs: Registration and annual maintenance costs are relatively low compared to other jurisdictions.
• No Complex Reporting: No annual financial statements or audits are required unless stipulated in the foundation’s regulations.

Perpetual Existence

• A Seychelles foundation can exist indefinitely unless otherwise specified, ensuring long-term planning for wealth and assets.

Favorable Legal and Political Environment

• Stable Jurisdiction: Seychelles is politically stable and has a robust legal system based on English common law and French civil law traditions.
• Internationally Recognized: Seychelles is a reputable offshore financial center with a positive image globally.

Versatility

• Multi-Jurisdictional Use: Seychelles foundations can hold assets and investments in any country.
• Beneficiary Structure: They allow multiple beneficiaries, including individuals, charities, or companies.

Avoidance of Forced Heirship

• Seychelles foundations are not subject to forced heirship laws, allowing the founder to freely determine how assets are distributed upon death.

Seychelles offers a balanced mix of tax benefits, asset protection, legal certainty, and governance flexibility, making it an attractive jurisdiction for those considering the establishment of a foundation. Whether for wealth management, philanthropy, or succession planning, Seychelles provides a solid legal and financial environment to support these goals.

However, as with any jurisdiction, it is important to consult with our Legal and Financial Advisors Team who are familiar with Seychelles’ specific laws and regulations to ensure compliance and optimal structuring.