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What is a Private Interest Foundation?

bizman

Corporate Services
Need to know what a Private Interest Foundation is, I have learned much the last few years where I have been exploring all possibilities to avoid tax or at lease reduce it :) Now I found out that a Private Interest Foundation typically in Panama is what will protect you from predators, creditors and other discomforts!


What I do not understand it in details why a private interest foundation or a trust or a combination of both is better than have a regular offshore IBC?


I was always convinced that a offshore IBC is the ultimate solution one can get in asset protection, privacy and avoidance of tax, now I learned a new term please help :confused:
 

Safa

Corporate Services
Thats a really good question, was also already looking into this for a while, searching on google will bring up some results, now I learned that a Private Interest Foundation are used to be a vehicle which provides ultimate protection and anonymity, additionally with a private interest foundation a generation shift is piece of cake since you will not want to get troubles with any tax authorites if shares for instant in an offshore ibc are owned/hold by a private interest foundation.


Also from what I read, so far the only place to establish a foundation or trust which will help you to achieve all this is Panama no other jurisdiction will offer the same protection and benefits as an Panama private interest foundation will offer you.
 

Admin

Forum Moderator
Staff member
Elite Member
If you need actual details on a private interest foundation you may want to look at Private Interest Foundations Seychelles | offshore-company-formation due to some very new regulations in the Seychelles, Panamae has be defeated by the Seychelles, now it is possible to form a Seychelles Private Interest Foundation which offeres everything what a Panama foundation has to offer as well as an BVI foundation but also much more, best is, it is so much faster to form a Seychelles private interest foundation than any of the others furthermore it will provide you with a many new tools not know to be used before and not possible to convert with a Private Interest Foundation in Panama or BVI or anywhere else, the time for Panama has come to conclude that they was sleeping under a rock while other offshore jurisdictions made major improvements.
 
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Safa

Corporate Services
Also a offshore IBC is a first step in order to achieve a good offshore company structure, also, it will protect you from the most "discomforts" however, it will not be able to protect you the whole way down the road, if you really find youself in troubles because you have been "optimizing" your tax a little too much, a offshore ibc alone will not help you but is as mentioned a first step in the right direction.
 

bizman

Corporate Services
private interest foundation you may want to look at Private Interest Foundations Seychelles | offshore-company-formation due to some very new regulations in the Seychelles, Panamae
wow, another time you surprised me Admin, wasn't aware of this part of your website, thats some good reading, will have to find some coffee now :)


Thank you safa for your comments, this was exactly what I was looking for.


According you you guys then you say a Panama private interest foundation is a scrap which is more or less useless by now due to the Seychelles offering the exact same thing now + additional features, thats pretty cool to know, will have to explore it a little more.
 

bogart

Offshore Agent
When you say it will be easier with a “generation shift” does that mean you will already now have to insert your children’s in the letter of whishes?


Is it possible to buy shares in any company regardless of it’s location? Can it be used for investments too?


Sorry but this looks too good to be true, but I'm interested...
 

Admin

Forum Moderator
Staff member
Elite Member
1. The activities which a PIF can undertake are somewhat limited. It is designed as an asset holding entity not as a trading entity. It cannot undertake any activity that would require a separate license in Seychelles/. Please read the act attached which regulates what a Foundation can and can't do. See in particular section 7.

When you say it will be easier with a “generation shift” does that mean you will already now have to insert your children’s in the letter of whishes?
It can be changed during the years of living! however, we suggest you define this already now if possible.
Is it possible to buy shares in any company regardless of it’s location? Can it be used for investments too?
See my comment above point 1. But of course it can be used to invest in other companies, buy shares and stocks etc. I hope this note is useful. View attachment Foundations Act, 2009.pdf
 
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bizman

Corporate Services
Thank you for the information, almost a year now and I have successfully registered my foundation in Panama. Still apreciate your help and send in my application for the Seychelles IBC :thumbsUp:
 

redeye

Corporate Services
Mentor Group Gold
I was just wondering if you actually know what a foundaton is?


A foundatrion is the nearest civil law equivalent to the common law trust. A foundation consists of property that has been transferred into it to serve a particular purpose and is a seperate legal entity with no owners or shareholders. Foundations are ordinarily managed by a board of directors. Some civil law jurisdictions, such as Belgium and Poland, restrict foundations to public purpose (public foundations) while other jurisdictions, such as Austria, Germany, Greece, Italy, Liechtenstein, the Netherlands, the Netherlands Antilles, Panama, and Switzerland, allow foundations to be established to fulfil private purposes(privaye foundations). In many civil law jurisdictions, a foundation may engage in commercial activities.


Ordinarily, foundations are highly transparent and highly regulated vehicles that are required to register with the authorities, file annual financial statements and submit themselves to supervision by governmental authorities. In addition, there are safeguards in place to ensure that a foundaton is sufficiently independent from its founder.


The likehood of a foundation to be misused for illicit purposes increases when there is inadequate regulations or supervision over foundations or when founders are allowed to exert significant control over the foundation, which is the case for Seychelles foundations.


In the Netherlands, which does not require prior consent of the government or a certificate of incorporation to establish a foundation, the authorities have reported that foundations are increasingly used for criminal purposes. Never go where the crowd is find a place uknown to man ;)


In some civil law OFCøs, foundations are not supervised, few public disclosures are required, founders are allowed to excert control over the foundation, and a high degree of anonymity is offered. In Panama and the Seychelles, for example, government approval is not required for the establishment of a foundation or the amendment of its memorandum and there is no governement agency that supervises foundations. Furthemore, foundation documents containing the identity of beneficiaries (which may include the founder himself) are not required to be publicly filed and the foundation does not have to submit annual reports or accounts. The founder may also use a nominee to form the foundation, thereby ensuring that his identity is not revealed to the outside world.


The Liechtenstein foundation, in particular, has been alleged to have been frequently misused for illicit purposes, including to hide money of corrupt government leaders. Liechtenstein also offers the anstalt (establishment), a corporate vehicle that is a hybrid between a private limited company and a foundation. The anstalt, which offers founders strong anonymity protection, grants founders effective control over the foundation, and mandates few disclosure requirements, is also perceived to be misused frequently for illicit purpose.


I do hope the above brings up a picture in your mind how powerful such a foundation can be :)
 

nastathin

Offshore Agent
I'm astonished about your posts redeye your really helpful and spot the light where it is required. A foundation seems to be the ultimate choice if privacy and asset protection is a mile stone?
 

bizman

Corporate Services
I didn't know what a foundation was, now I know and now I own one :D Thanks all for the wonderful help here...Ihave learned soooooooo much.
 

tr92

Mentor Group Gold
Can Private Interest Foundation be used to shield UBO from CRS? offshoreincorporate.com says it can
 

sarkozy

Offshore Agent
Can Private Interest Foundation be used to shield UBO from CRS? offshoreincorporate.com says it can
Potentially, but it will need to be structured correctly. Will also depend on whether the Settlor is a beneficiary.
 
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