Foundation with IBC combination for brokerage accounts

[kyler565]

I want a safe place to keep investments (dividend stocks or farm land purchases) where I can open at least one or multiple brokerage accounts . I wont be reciving payments or doing any crypto so the transactions on the banking side should be few.

What are the options that should work well for the type of banking/ brokrage account setup I mentioned above

List of options:

Panama foundation w/ Panama IBC
Panama foundation w/ Florida/Wyoming llc
Panama foundation w/ UK or Scotland Lp
Panama foundation w/ Freezone company
UAE foundation w/ freezone company
Other

 

[Jerry1911]

I would personally avoid UK/Scotland/Florida/Wyoming due to lack of privacy. Canada LLP might be an alternative.

edit: Sorry I meant UK because of privacy and Florida/Wyoming because of IRS and their ever changing multi-thousand pages long tax code.

 

[kyler565]

I would personally avoid UK/Scotland/Florida/Wyoming due to lack of privacy. Canada LLP might be an alternative.

I dont think privacy is a concern for me at this point since the foundation will be the owner and Benifisiry of the corprate inenty and in this case the Benifisiry of the Foundation will be a charity. I wont be owner or Benifisiry of anything. I will just be controlling it and making the investment decisions.. The primary concern is I want ease of opening and keeping brokrage/bank accounts and also would be nice if accounting/ tax filings are simple

 

[JohnnyDoe]

I dont privacy is a concern for me at this point since the foundation will be the owner and Benifisiry of the corprate inenty and in this case the Benifisiry of the Foundation will be a charity. I wont be owner or Benifisiry of anything. I will just be controlling it and making the investment decisions.. The primary concern is I want ease of opening and keeping brokrage/bank accounts and also would be nice if accounting/ tax filings are simple

Makes sense, but you need some good money for this structure to be accepted. For >$10m I can give a good recommendation

 

[kyler565]

Makes sense, but you need some good money for this structure to be accepted. For >$10m I can give a good recommendation

Less than that. Around $2m would be in the brokrage account.. but could be >$10 someday if the investments work out. I'm curious what you recommend for more than $10m

 

[JohnnyDoe]

Less than that. Around $2m would be in the brokrage account.. but could be >$10 someday if the investments work out. I'm curious what you recommend for more than $10m

A bank that doesn’t give a f**k as long as you have enough money…
Some might already know which bank it is, but you need to pick the right country branch

 

[Silvio]

I dont think privacy is a concern for me at this point since the foundation will be the owner and Benifisiry of the corprate inenty and in this case the Benifisiry of the Foundation will be a charity. I wont be owner or Benifisiry of anything. I will just be controlling it and making the investment decisions.. The primary concern is I want ease of opening and keeping brokrage/bank accounts and also would be nice if accounting/ tax filings are simple

"Ease of Opening" and "Foundation owned by freezone" is not something you want to put in the same sentence.
Why are you doing this if privacy is not a concern?

I would find some bank in Switzerland\Liechtenstein, approach them with the idea and find out first what structures THEY WILL ACCEPT, and maybe they can even set up the structure for you so you ensure that it will be onboarded. Either way it won't be cheap and It's not clear why you want to do through this complicated route.

There were also a carribean broker that accepted complicated structures, I don't remember the name but they were mentioned here. Of course at higher monthly costs and more risky jurisdiction. If you have $2m to invest I would NOT put them into some shitty carribean broker even if it's a Saxo whitelabel, but instead go for CH\LI.

 

[Fred]

If you structure things right you can go with ADGM/DIFC/RAKICC Foundation owning a FZCO in Dubai and getting it banked with Swissquote DIFC or even Emirates NBD + IBKR.

Further LLB in the DIFC.

LGT, UBS, CS won't touch this structure below 5m$ and Citibank Private Bank not below 10m$.

Be careful with all the small CH/LI Private Banks like @Martin Everson mentions all the time - hard times for there business and endless compliance doesn't have anything to do with a proper compliance.

VP Bank is pretty good as well with 5 full banking license across BVI/CH/LI/SG/LU but they don't touch UAE actually due to FATF Grey Listing (Group Policy)

I would go with Swissquote and ENBD + IBKR as backup or to use it to buy with IBKR and transfer to Swissquote - so you end up paying nothing for this compliance intensive structure.

When reaching 10m$ I would ask myself twice if it's worth it getting ripped off from the bigger players unless they offer you some really unique and solid private placements where there fees don't eat all the profits.

Ps: UAE is only in with Residence Visa of course which you get through the FZCO anyway.

Channel Island Banks would work as well like the already discussed Nebank Private Wealth.

 

[kyler565]

"Ease of Opening" and "Foundation owned by freezone" is not something you want to put in the same sentence.
Why are you doing this if privacy is not a concern?

I would find some bank in Switzerland\Liechtenstein, approach them with the idea and find out first what structures THEY WILL ACCEPT, and maybe they can even set up the structure for you so you ensure that it will be onboarded. Either way it won't be cheap and It's not clear why you want to do through this complicated route.

There were also a carribean broker that accepted complicated structures, I don't remember the name but they were mentioned here. Of course at higher monthly costs and more risky jurisdiction. If you have $2m to invest I would NOT put them into some shitty carribean broker even if it's a Saxo whitelabel, but instead go for CH\LI.

I have been sort of semi-retiremeid since covid I have sold my business in Canada and moved to a laid back low cost of living country in South America. And with all the BS happening in Canada (becoming a communist country) I don't think it's a safe place to keep money at all. I have been Reading about Panama charitable foundations and panama private intrest foundations im attracted to the low oversight structures especially the charitable one because i liked the idea of not having wealth in my name and taking a small wage for managing the charity.. i don't know if they will really able to work meaning I can get a good brokerage account like Interactivebrokers which is more safe than any Canadian bank IMO (our Canadian housing bubble could popl) . Then it's kind of usless and it seems like the responses so far have been quite skeptical so maybe it's best to just keep my IB account in my personal name and forget about foundations?

 

[kyler565]

If you structure things right you can go with ADGM/DIFC/RAKICC Foundation owning a FZCO in Dubai and getting it banked with Swissquote DIFC or even Emirates NBD + IBKR.

Further LLB in the DIFC.

LGT, UBS, CS won't touch this structure below 5m$ and Citibank Private Bank not below 10m$.

Be careful with all the small CH/LI Private Banks like @Martin Everson mentions all the time - hard times for there business and endless compliance doesn't have anything to do with a proper compliance.

VP Bank is pretty good as well with 5 full banking license across BVI/CH/LI/SG/LU but they don't touch UAE actually due to FATF Grey Listing (Group Policy)

I would go with Swissquote and ENBD + IBKR as backup or to use it to buy with IBKR and transfer to Swissquote - so you end up paying nothing for this compliance intensive structure.

When reaching 10m$ I would ask myself twice if it's worth it getting ripped off from the bigger players unless they offer you some really unique and solid private placements where there fees don't eat all the profits.

Ps: UAE is only in with Residence Visa of course which you get through the FZCO anyway.

Channel Island Banks would work as well like the already discussed Nebank Private Wealth.

Thanks for the bank recommendations . But looking at the VP bank website i dont know if they have a self directed broker . Im not intrested in the high fee wealth management stuff lots of risk and small reward. The NebBank looks interesting as well as a saxo bank account.. I can prove my funds are legit so I might have a chance opening a decent bank/broker account or does the panama foundation make it hard? I don't want to shoot myself in the foot

 

[Fred]

Thanks for the bank recommendations . But looking at the VP bank website i dont know if they have a self directed broker . Im not intrested in the high fee wealth management stuff lots of risk and small reward. The NebBank looks interesting as well as a saxo bank account.. I can prove my funds are legit so I might have a chance opening a decent bank/broker account or does the panama foundation make it hard? I don't want to shoot myself in the foot

VP Bank is used for self directed investors as well with normal brokerage platform - see there mobile app.

Of course something like a Foundation is compliance intensive and the risk/reward for something like IBKR is horrible.

From what I can read in-between your lines - forget about the foundation. It sounds fancy but people underestimate the structure maintenance and attached fees.

 

[kyler565]

I looked at other structures and read allot here on the forums for the last week straight and reached out to some forgin banks and forgin lawyers. But im still feel most comfortable with the Panama Foundation in particular im learning on the Panama foundation w/Wyoming disregarded llc . I fully understand that dealing with the IRS will be a nightmare if you file incorrectly or late. But the access to us banks and brokrages is most important...

Can someone confirm short and long term capital gains including gains for stocks gains on futures contracts or options contracts are not taxed at the Disreguarded LLC level?

I know FDAP income like dividends form US companies or intrested gains on US bonds is taxed at 30%

 

[lostguy]

Thanks for the bank recommendations . But looking at the VP bank website i dont know if they have a self directed broker

they are a good bank, I once paid them a visit but it went out not to be for me.

 

[Candoit]

If you structure things right you can go with ADGM/DIFC/RAKICC Foundation owning a FZCO in Dubai and getting it banked with Swissquote DIFC or even Emirates NBD + IBKR.

Further LLB in the DIFC.

LGT, UBS, CS won't touch this structure below 5m$ and Citibank Private Bank not below 10m$.

Be careful with all the small CH/LI Private Banks like @Martin Everson mentions all the time - hard times for there business and endless compliance doesn't have anything to do with a proper compliance.

VP Bank is pretty good as well with 5 full banking license across BVI/CH/LI/SG/LU but they don't touch UAE actually due to FATF Grey Listing (Group Policy)

I would go with Swissquote and ENBD + IBKR as backup or to use it to buy with IBKR and transfer to Swissquote - so you end up paying nothing for this compliance intensive structure.

When reaching 10m$ I would ask myself twice if it's worth it getting ripped off from the bigger players unless they offer you some really unique and solid private placements where there fees don't eat all the profits.

Ps: UAE is only in with Residence Visa of course which you get through the FZCO anyway.

Channel Island Banks would work as well like the already discussed Nebank Private Wealth.

Hi Fred, independently come to a similar setup solution as you but in my structure it's the RAK foundation that will own the sharedealing account with the agent being the 2 resident Councillors but delegating the online banking and sharedealing to me. It avoids doubling the costs and hassle of also having to manage a FZCO? I'll continue to be non-resident so I don't need the FZCO visa. What are the downsides of this please?