Announcement of Fee Adjustment in October 2022
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From
US$ 4500International Foundations and Trusts are used for asset protection, gain control as to how those assets are passed on to future generations while making them flexible, reliable and tax efficient. Should one opt for a Foundation or a Trust, depends on one’s requirement. The table below gives an indication of some of the factors one needs to consider before opting of either.
Seychelles has traditionally been a cost effective jurisdiction in terms of International Business Companies which are amongst the most competitively priced in the world and very popular in China as well. Services around trusts and foundations are also typically competitively priced with other comparable markets. This should not be confused with a low level of service however as many Seychelles firms are associated with international trust services providers, law firms and otherwise have highly competent and trained professional staff who are members of the Society of Trust and Estate Practitioners for example. Seychelles Foundations in particular are a good value when factoring the quality of the law, low government fees and typically competitive fees from the services providers.
Seychelles Trust | Seychelles Foundation | |
---|---|---|
Initial assets required | Minimum US$ 1 | Minimum US$ 1 |
Governing Law | International Trusts Act, 1994 | Foundation Act 2009 |
Currency Permitted | Any | Any |
Incorporate Time | 7-10 days | 7-10 days |
Constitutional document | Trust deed (not filed with the authorities)No names are available to public | The Charter is the constitutional document of the Foundation. It details its purpose, term, appointment and removal of councillors, beneficiaries, etc.It is registered with the Authorities Regulations detailing other internal procedures are optional an is not required to be filed with the authorities |
Succession Planning | Can be used for succession planning | Can clearly outline the beneficiaries and hence acts as a substitute for a will while ensuring proper maintenance of the underlying assets |
Duration | Trusts in Seychelles can be authoritiesformed for a period of 100 years A charitable trust can be formed for perpetuity | Fixed period; or Indefinite period |
Re-domiciliation | Can be challenging | Permitted |
Taxation | Tax exempt | Tax exempt for a period of 20 years in Seychelles: Income Tax Capital Gains Tax Withholding Tax Inheritance Tax Stamp Duty |
Annual Requirement | Required to keep accounting records, no filing requirement | Required to maintain books of accounts at the registered office No annual filing |
Local Requirement | Qualified trustee | Registered agent and Registered office |
Restrictions on Trust/Trade | Trust cannot hold immovable property in Seychelles. It cannot own shares of domestic companies registered in Seychelles. Settlor cannot be resident of Seychelles.Settlor cannot be sole beneficiary of Trust. An underling IBC of the trust can conduct business activities. | Unlawful, immoral, or activities contrary to public policy. Business in Seychelles Holding immovable property in Seychelles. Underlying companies owned by a Seychelles Foundation can get benefits of DTA agreements |
Confidentiality | No filing with Seychelles authorities. Trust register is not accessible to public.No disclosure of names of settlor or beneficiaries to regulator required | Name of the founder is stated in the charter which is filed with the authorities |
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