Announcement of Fee Adjustment in October 2022
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A trust is a relationship where a property is held by one party for the benefit of another party. A trust is created by the owner, also called a "settlor", "trustor" or "grantor" who transfers property to a trustee, The trustee holds that property for the trust's beneficiaries.
Foundation is a type of entity that is a cross-breed between a trust and a corporation, however, it is neither, rather as a separate legal entity, has the capacity to execute rights and acquire obligations. It is created by a declaration of the Founder and generally has as a purpose the preservations of assets for benefit of the Founder or Beneficiaries.
The trust can avoid inheritance tax, gift tax, wealth tax, transfer tax, and the beneficiaries can receive income and assets free of income taxes. However, U.S. taxpayers and others in countries taxing global income must report all income to their tax agencies.
Trusts assets are beyond the reach of the settlor’s and beneficiaries creditors
Since trusts are not registered with the government, there are no public records about them.
There are no corporate taxes or income taxes or any other tax. However, U.S. taxpayers and those from other countries taxing global income are required to disclose all income to their tax authority.
The settlor can be from any country along with the beneficiaries and the trust properties can also be located in other countries.
Confidentiality from the Trustee, Trust Agent, and the Registrar.
Secures succession plans and helps to make use of the IHT allowances and reliefs which are available and protect the economic value of everything from exposure to inheritance tax (IHT).
The owner of certain assets ("Settlor") transfers these assets to an independent third party ("Trustee"). The Trustee, in turn, is legally bound to maintain and manage these assets for the benefit of another person or group of persons ("Beneficiaries")
Structuring advice on how to use in the most efficient manner.
Provision of trusteeship services, secretarial service, corporate or individual members of the Council.
Provision of registered office
Drafting, structuring and establishment
General administration.
Book-keeping, Preparation and filing of tax return with relevant authorities (where required).
Forming a Hong Kong trust offers the following benefits: 100% ownership, settlor retains control, no taxation, privacy, asset protection, estate planning, and English is the second official language.
The income of the trust is reported directly on the tax return of the current beneficiaries. Because it is a grantor trust, which is a trust in which the creator (or grantor) keeps some interest in the income and funds inside of the trust. It is not recognized as a separate taxable entity separate from the grantor for tax purposes. It is, thus, “Income Tax Neutral” to the grantor. So, the for tax purposes, it is equivalent to holding the funds in your name. From an asset protection standpoint, however, it is the difference between keeping and not keeping your own money. It can also pass real estate tax deductions and mortgage interest deductions to your personal tax return.
A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.
A General Trust Licence holder is an entity which holds a valid general trust licence as prescribed by the Banks and Trust Companies Act, 1990 and enables the holder to carry on trust business without restrictions. Trust business as defined by this Act means "the business of (a) acting as a professional trustee, protector or administrator of a trust or settlement, (b) managing or administering any trust or settlement, and (c) company management as defined by the Company Management Act, 1990.
A Restricted Trust Licence holder is an entity which holds a valid restricted trust licence as prescribed by the Banks and Trust Companies Act, 1990 and allows the holder to carry on trust business with restrictions specifically providing trustee services to a
A registered agent as defined by the International Business Companies Act ("IBCA") means "the person who is at any particular time performing the functions of registered agent of a company incorporated under this Act pursuant to subsection (1) of section 39" (of the IBCA).
An Authorised Agent is a person designated by a trust company to act as an intermediary between the licence holder and the Commission.
A principle office is the office of the Company Manager or Trust Licence holder with a physical presence in the (British) Virgin Islands.
A Trust Company is a company that carries on trust business as defined in (2) above.
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