Investment Fund in Seychelles
INVESTMENT FUND IN SEYCHELLES
Seychelles may be interested in a wide range of investors with the ability to protect, save, plan and redistribute assets. For example, for this purpose, you can use the services of local Funds, structures with the advantages of trusts, but at the same time with another form of organization. They have no shareholders, but they have the status of a legal entity. These funds have the establishing structure of founders and beneficiary parties – beneficiaries and managing trustees.
The main feature of the Funds in Seychelles is the possibility of alienation of ownership rights to all transferred assets from the founders. The structure, after becoming the owner, releases the creator from any claims from the shares of heirs, laws of other states, creditors, etc.
The work of funds is controlled by the regulations of the Seychelles since 2009. They require that the fund have at least one beneficiary and a founder in the form of a private or legal person. The legislation also requires the presence of members of the council and the guarantor, who will actually manage the whole structure.
Although the foundation does not own someone specific, but it can have in its possession various assets, for example:
– Securities, including shares of public and private companies.
– Investment portfolios and deposits.
– Objects of real estate and intellectual property.
– Companies, insurance policies, etc.
– Disposal of assets is by means of instructions or directives, that the structure with trusts is inflated. These documents should be written in the constituent documentation. On its behalf, the Fund may enter into agreements and be used for:
– Safe Asset Management.
– Safety and reliable protection of property against encroachments.
– Since payments and incomes of beneficiary from abroad are not subject to additional cathedrals, tax planning is possible.
– Charity Goals.
– Family needs or the needs of heirs and any specific persons.
ADVANTAGES OF FUNDS IN THE SEYCHELLES
In addition to the well-known comfort of the local tax system, the island provides creators of funds a lot of nice bonuses. Here it is possible by contributing assets from the management practically guaranteed to secure them and at the same time leaving an opportunity to control them.
Local authorities are extremely sensitive to confidential information about the founders, beneficiaries or directorate. It can only be disclosed for agent registration. In case of use of services of the nominee founder, data of trustees and beneficiaries do not fall into the state register at all.
The country has treaties to avoid double taxation with many countries including China, Monaco, Cyprus and the UAE. Also, Seychelles Funds have other useful advantages:
– There is no need to provide the country with its financial statements on a regular basis.
– Wide opportunities for hereditary and tax planning.
– Possession of property in fact without any restrictions on characteristics.
– The highest degree of protection with the country.
– Easy and fast registration.
– Simple and transparent control.
– No currency control.
– The tax system provides zero tax rate on capital and profit of the firm. All who contribute to the Fund have the right to exclude them from their taxable base.
REGISTRATION AND CREATION OF THE FUND
Several different types of structures are available in this jurisdiction. Private and public Funds can be created by investment structures, individuals or their groups. State Funds can be created exclusively by the authorities, and the mixed structures assume the presence of any composition of the creators. Among the basic parameters of structure it is necessary to allocate:
– There should be a reference to the form (foundation) in the title and there are no other symbols.
– Should be a legal address.
– Goals should have clear description, that is all, except business and commercial goal. Property management and profit distribution must be mandatory.
– Activities in the Seychelles are prohibited.
– It can function for an unlimited period of time, limited (activity stops after circumstances).
– The founders can retain their powers.
The fund, as entities, is obliged to submit the founding documents to the register of companies. Such a contract is a public document, so it may not determine the members of the Council, beneficiaries, distribution of property and other private information. Such data shall be in the provision (internal documentation) and shall not be publicized. The Charter contains information on the purpose, type and the creator of the Fund. It is made only in French or English, but may have an application translated from another language.
The structure acquires legal personality only after the issuance of the Certificate of Incorporation. The Fund for full functioning should have such documents:
– Certificate of registration.
– Regulations and Charter.
– The Register of the members of the Council and the Minutes of its first meeting.
– The list of trustees and agents together with the decision on appointment.
– The decision on registration of the account.
MANAGING BODIES OF THE FUND
The Fund, except for the creators, is obliged to have the Council represented by one person or group of persons, and the presence of natural and legal persons is possible. It may include the founders of the foundation, but other participants should also be present. As a rule, the local registration agent acts in this role. The work of the structure is managed with the help of the Council, but the Council itself can be controlled by an external protector. The trustee must observe the correctness of the will of the founders of the Fund and the conformity of activities to the stated goals. Its functions can be performed beneficiary (if it is not one), founders or members of the Council.
The foundation shall create and properly conduct all accounting and financial documents, which reflect the obligations, profits, sales, etc. It is stored either to the legal address or to any other place specified by the Council. These documents are not subject to publicity and are not available to any third parties. They may be presented exclusively to the founder, trustees or the Council itself. No reporting to local authorities is foreseen.