Private Foundation 

A private foundation is of great advantage as it is a legal entity, which is established like any other commercial organization. This entity acts like a trust and operates like a company. The major advantage of Offshore Foundation is the security of the inalienable rights like secrecy, confidentiality, anonymity and many more. 

Foundations and Banking Secrecy

The foundation may serve to protect your identity in any form of business activity selecting whichever currency for business transactions. The foundation is allowed to uphold full secrecy, confidentiality, and privacy and unlike trust there is no obligation to disclose all the activities, beneficiaries or to file the financial statement. Any type of audit of the financial statement is also not mandatory in such foundation. Large number of exemption regarding taxation is also provided to this type of foundation allied to any offshore business activity. The accounting books of these foundations may be kept anywhere in the world.

Technical Foundation Details

The founders, members of council, protectors of the foundation may be the resident of any country and of any nationality. The assets of the foundation can’t be used to dispose of the liability of the founders or beneficiaries. A foundation can be established by registering a Foundation Charter. One or more persons or any corporate body, which would be called founders, may create it. The administration in these foundations is simple and easy going. The law on inheritance related to beneficiaries domicile is not objectionable. It will also not affect the validity or fulfillment of its objectives.

The foundation charter includes:  

·          Name of the foundation (should comprise of the word ‘foundation’ may be in any language) 

·          Name and address of the members of Foundation council 

·          Initial capital and their structure of capita, it should be a minimum of $10000. 

·          Objectives and goals of Foundation, this should be reasonable, legal and moral 

·          The locality of foundation, its head office and registered office. 

·          The manner in which the assets of foundation will be used and the procedure of the estate to be liquidated in the event of wound up. 

·          The period of the foundation. 

·          The manner in which the beneficiaries will be selected. 

·          The name and address of Resident Agent of foundation. He must be a lawyer or a law firm. 

Foundation Council

There is no restriction regarding the members of foundation council. He may be a natural person of Juridical or of any nationality. It doesn’t require being of parent country. There is a provision to nominate members of foundation council as a nominee by paying an extra charge if desired so.

The foundation council has the following obligations and duties:

It should act in a manner to achieve the objective of the foundation. It would enter in contracts or business transaction in such a way that must proceed for fulfillment of the goals of the foundation. These acts must be legal, moral and reliable to the purpose.  

·          Usage of the assets of foundation should be in a manner that has been defined in the foundation charter and regulations. 

·          Operations that are permissible by foundation charter, rules and regulation & private foundation law should be performed. 

·          Information of the position of economic state of foundation should be provided to beneficiaries. 

·          To hand over to the beneficiaries the assets settled in favor of foundation. 

·          Carry out the act as reasonable and best in the interest of the beneficiaries. 

·          To fulfill all the legal formalities and other requirements while entering in any transaction and contract. 

Foundation Regulations

Besides the Foundation Charter the Optional Foundation Regulations can also be prepared that includes the information related to council’s attributes, frequency of statements, and manner of distribution of the Beneficiaries’ interest. It is not essential to appoint Beneficiaries in the Foundation charter but beneficiaries could also be appointed in the Foundation’s regulations.

Foundation Secrecy 

The members of the council shall maintain confidentiality, secrecy and privacy related to the activities of the foundation; breach of these will penalize i.e. punishment as well as imprisonment along with fine because these members are supervisory body of foundation as well as public servants.

Foundations and Philanthropy

One use of a foundation is to use it in a charitable way or to make donations to charities.  A foundation is ideal for making donations privately.  Most foundations are used for tax purposes, which ties nicely into philanthropic endeavors.