Foundation Jurisdictions
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Foundation Jurisdictions
As with any offshore situation it is important to consider the full legal and regulatory background of the jurisdiction chosen to host the structure. As mentioned earlier Liechtenstein was a pioneer in legislating the use of private interest foundations and that country has an exceptionally robust confidentiality regime. In 2010 Belize also introduced legislation (modeled by the experience of other jurisdictions in the field of foundations, particularly, Antigua, the Bahamas, Isle of Man and Anguilla) to allow foundations.
The following table gives comparisons of major elements of foundations in the three leading jurisdictions, Liechtenstein, Belize and St Kitts.
| Liechtenstein | Belize | St. Kitts | |
|---|---|---|---|
|
Types of Foundation |
Registered or unregistered |
Irrevocable, but the foundation charter may be amended by the Council or the foundation may be dissolved if absolutely necessary; charitable and non-charitable |
Ordinary (if not exempt) or Exempt (not liable for tax in St Kitts)
|
|
Minimum Capital |
CHF 30,000 (approx $US22,000) must be paid up or in kind |
No Minimum Capital Requirement |
No minimum capital requirement |
|
Taxation |
0.1% on declared net assets subject to minimum of CHF 1,800 |
Tax Exempted |
Taxable on domestic income only |
|
Accounting |
No audit requirement but returns must statement of asset must be made for annual capital tax |
Accounting Records Declaration |
No requirement |
|
Governance |
Foundation council with at least one individual qualified local member. Protector. |
Administered by a Foundation Council |
Foundation council which may be an offshore company or natural person. Guardian. |
|
Confidentiality |
No disclosure of founders or beneficiaries on public record. |
No disclosure of founders, or Beneficiaries, Members, or Protector on Public Records |
No names of beneficiaries or founders on public record.
|
|
Purpose |
Support of family, charitable or ecclesiastical |
May be established for a Charitable or non-charitable purpose of for both, or non-purpose, other than the benefit of a founder or beneficiary or both |
Typically for the cost of raising children, benefit of family or other natural legal persons |
|
Creditors |
Only foundation assets available to creditors in satisfaction of foundations own debts. |
Every plaintiff or applicant seeking to commence an action or proceeding against a foundation, founder, foundation council, member, protector or beneficiary for the avoidance of the foundation or the transfer, encumbrance, attachment or other restraint of the foundation endowment shall first deposit with the Registrar of the Court the sum of US$50,000 or any further amount determined by the Court, to secure the payment of all legal fees and costs that may become payable by the plaintiff or applicant in the even the action or proceeding is unsuccessful |
Only foundation assets available to creditors in satisfaction of foundations own debts |
|
Language |
German |
English |
English |
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Hong Kong New Limited Partnership Fund Law
Zetland\’s Personal Information Log (“PIL”)
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