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Setup of an Trusts as the top Holding company!
- Thread starter clemens
- Start date
Well, everything went through as we expected, however, there where some huge delays because of an confusion on our side... we forgot to send the original documents for the account opening to their office, anyway, yesterday we received our original documents by Fedex. They are certified and notarized as expected... Now I only have to figure out what exactly I need to have in the "whish list".
The idea to have a Trust in Paramount and to have a Trustee and Setlor is to protect you from anyone accessing your assets and equity, if you just could act on behalf of the Trust as you like, the authorities in any country could just get their hands on it.
Bearer in mind, a Trust isn't like any regular offshore company and it is not for the small boys to play with.
Bearer in mind, a Trust isn't like any regular offshore company and it is not for the small boys to play with.
S
SysOp
Found some really good and informative information as per below.
The Trustees Law
This law is based on its English counterpart and on the English principles of equity which also form part of the legal system of Cyprus.
There are currently three forms of trusts which can be set up in Cyprus, namely:
(a) a Local Trust
The settlor, the trustees and the beneficiaries are Cypriots and the trust property may include immovable property in Cyprus.
(b) an Offshore Trust
The settlor and the beneficiaries must be non-resident in Cyprus. The majority of the trustees, whether individuals or trust companies (including offshore Cyprus trust companies) must be Cypriot. The trust must be located in Cyprus so that Cypriot law is applicable and the Cypriot courts have at least concurrent jurisdiction. The trust income must be generated from foreign sources, not from business or other origins in Cyprus, but the trustees may hold immovable property in Cyprus subject to obtaining the required permit from the Council of Ministers. The trust deed must be executed in Cyprus.
© an International Trust
It is regulated by the International Trusts Law, No. 69/92, which extended and modernised the existing legislation on trusts. This law reflects the policy of the Government to increase the attraction of Cyprus as an offshore jurisdiction, by offering incentives to foreigners for the establishment of trusts in Cyprus with certain features which were not available within the existing domestic law. The law defines an International Trust as being a trust in respect of which:
(i) the settlor is not a permanent resident in Cyprus
(ii) no beneficiary (other than a charity) is a permanent resident in Cyprus
(iii) the trust property does not include any real property situated in Cyprus
(iv) at all times there is at least one trustee resident in Cyprus.
A trust will still qualify as an International Trust even if the settlor, the local trustee or a beneficiary (or any combination of these) is a Cyprus offshore company or partnership. A trust which fails to qualify as an International Trust because it does not comply with one of the requirements of the International Trusts Law falls within the category of Offshore Trust.
The International Trust is more popular with non-resident individuals and entities, due to the role which it plays in international tax planning exercises. This factor, together with the flexibility, confidentiality and perpetuity and the diverse attractions of the island, makes international trusts extremely attractive to all settlors in the business and commercial sector.
The Trustees Law
This law is based on its English counterpart and on the English principles of equity which also form part of the legal system of Cyprus.
There are currently three forms of trusts which can be set up in Cyprus, namely:
(a) a Local Trust
The settlor, the trustees and the beneficiaries are Cypriots and the trust property may include immovable property in Cyprus.
(b) an Offshore Trust
The settlor and the beneficiaries must be non-resident in Cyprus. The majority of the trustees, whether individuals or trust companies (including offshore Cyprus trust companies) must be Cypriot. The trust must be located in Cyprus so that Cypriot law is applicable and the Cypriot courts have at least concurrent jurisdiction. The trust income must be generated from foreign sources, not from business or other origins in Cyprus, but the trustees may hold immovable property in Cyprus subject to obtaining the required permit from the Council of Ministers. The trust deed must be executed in Cyprus.
© an International Trust
It is regulated by the International Trusts Law, No. 69/92, which extended and modernised the existing legislation on trusts. This law reflects the policy of the Government to increase the attraction of Cyprus as an offshore jurisdiction, by offering incentives to foreigners for the establishment of trusts in Cyprus with certain features which were not available within the existing domestic law. The law defines an International Trust as being a trust in respect of which:
(i) the settlor is not a permanent resident in Cyprus
(ii) no beneficiary (other than a charity) is a permanent resident in Cyprus
(iii) the trust property does not include any real property situated in Cyprus
(iv) at all times there is at least one trustee resident in Cyprus.
A trust will still qualify as an International Trust even if the settlor, the local trustee or a beneficiary (or any combination of these) is a Cyprus offshore company or partnership. A trust which fails to qualify as an International Trust because it does not comply with one of the requirements of the International Trusts Law falls within the category of Offshore Trust.
The International Trust is more popular with non-resident individuals and entities, due to the role which it plays in international tax planning exercises. This factor, together with the flexibility, confidentiality and perpetuity and the diverse attractions of the island, makes international trusts extremely attractive to all settlors in the business and commercial sector.
Just found a good article to this topic.
Establishment of foreign funds, also known as trusts, are becoming increasingly popular as the people realize that it is perfectly legal. We can in good conscience tell the local tax authorities that it has formed a foreign fund / trust, without it necessarily leads to unpleasant reprisals.
That, of course, requires the formation and operation of the Fund are made correctly (see below), and tax advice in connection with the formation, etc.. is therefore highly advisable.
What can I use a foreign trust and what are the benefits?
A foreign trust is typically used to either eliminate the tax, creditor protection or anonymity. It can also be a combination of all three things.
Tax Avoidance
Would you use foreign funds / trusts for tax elimination, there are four case groups, it is extremely important to be aware of:
• Capital Fund shall be irrevocably separated from its founder
• Fund capital may not be a form of capital transfer via a mediator (trustee)
• Tax at 20% in deposits
• Management seat
Concerning capital must be irrevocably separated from its founder
When you inject capital into a foreign fund, the capital must be irrevocably separated from the founder's fortune.
That means three things. First, it must fund the capital, according to the statutes could not be returned to the founders. For another, it means that the founder and his wife should not be added as a beneficiary under the statutes. The third founder may not even be introduced as manager of the fund.
Pins must contrast well determine who will manage the trust, in contrast to a local fund, where the majority of directors must be persons who are not elected by the pins.
Pins can also be employed by the trust and get the availability of trust funds is only just happening in the trust interest, and kept records of the use of funds in the trust.
As a beneficiary can be added all except the founder and founder's wife and dependent children under 18 years.
Concerning capital may not be a form of capital transfer via intermediary
When you deposit money in the fund must not be a disguised direct money transfer to the beneficiaries under the Statute.
This means that at the time of creating the trust, there must be uncertainty about how much each beneficiary receives the fund capital.
For example. write the statutes to fund capital shall be bound in 20 years. whereby fund capital shall be paid to children of founders who are alive at this point, then we met the above requirements. You know not which of the children who are alive in 20 years.
The current yield on the fund capital, by contrast, is easily distributed to the beneficiaries according to a fixed key.
Possibly, the Fund may pay out money to companies owned by the beneficiaries.
Ad Tax of 20% in deposits
When native Local people and companies transfer assets to foreign trusts / funds located in various low-taxing, and the Fund are not public charities must pay a fee of 20%.
To avoid the charge is forced to incorporate a foreign person or company to make payment.
Ad Management seat
If fund managers are based in a high tax country in Europe, the foreign fund will be considered as a Local fund and the fund must be taxed as ordinary Local funds.
It is therefore important that the foreign trust is a foreign manager who can handle the daily operations.
Foreign funds for creditor protection
If the founder of a foreign trust and inserts itself as a beneficiary, the tax authorities in a high tax country in Europe, refuse to acknowledge the fund.
This means that the pins will still include the return within the Fund for its taxable income. The fund is still an effective defense against possible future creditors.
Should the fund be used for creditor protection, it is nevertheless important to emphasize that it must be dynamic as well as static solvent at the time of creating the fund - even after the asset transfer to the fund.
However, this rule will only be able to provide the administrator of the fund money to that beneficiary under the statutes of the fund.
If you are so wealthy and do not want to see a possible future bankruptcy or damages shall deprive an all values, it is a foreign trust a good agent.
A wealthy person who is considering divorce, and only joint, can also with great advantage to create a foreign trust. The upcoming ex wife can, regardless of the number of lawyers do not get the values contained in the trust.
When the tax does not recognize the foreign fund, it has the advantage that if you transfer assets to the fund, which is a latent taxable profit, for example. shares, so it does not trigger taxation.
One can thus put its shares in the safety of a new legal entity - without triggering tax.
Who keeps control of the foreign fund / trust?
When you set up funds in a high tax country in Europe, Local Commerce and Companies Agency, Civil Directorate tax and keep control of the fund managers available funds in a manner that is consistent with the fund statutes and Local law.
With foreign funds / trusts, there is no public oversight, but the pins, however, have the opportunity to choose a protector that can perform this control function, if desired.
Establishment of foreign funds, also known as trusts, are becoming increasingly popular as the people realize that it is perfectly legal. We can in good conscience tell the local tax authorities that it has formed a foreign fund / trust, without it necessarily leads to unpleasant reprisals.
That, of course, requires the formation and operation of the Fund are made correctly (see below), and tax advice in connection with the formation, etc.. is therefore highly advisable.
What can I use a foreign trust and what are the benefits?
A foreign trust is typically used to either eliminate the tax, creditor protection or anonymity. It can also be a combination of all three things.
Tax Avoidance
Would you use foreign funds / trusts for tax elimination, there are four case groups, it is extremely important to be aware of:
• Capital Fund shall be irrevocably separated from its founder
• Fund capital may not be a form of capital transfer via a mediator (trustee)
• Tax at 20% in deposits
• Management seat
Concerning capital must be irrevocably separated from its founder
When you inject capital into a foreign fund, the capital must be irrevocably separated from the founder's fortune.
That means three things. First, it must fund the capital, according to the statutes could not be returned to the founders. For another, it means that the founder and his wife should not be added as a beneficiary under the statutes. The third founder may not even be introduced as manager of the fund.
Pins must contrast well determine who will manage the trust, in contrast to a local fund, where the majority of directors must be persons who are not elected by the pins.
Pins can also be employed by the trust and get the availability of trust funds is only just happening in the trust interest, and kept records of the use of funds in the trust.
As a beneficiary can be added all except the founder and founder's wife and dependent children under 18 years.
Concerning capital may not be a form of capital transfer via intermediary
When you deposit money in the fund must not be a disguised direct money transfer to the beneficiaries under the Statute.
This means that at the time of creating the trust, there must be uncertainty about how much each beneficiary receives the fund capital.
For example. write the statutes to fund capital shall be bound in 20 years. whereby fund capital shall be paid to children of founders who are alive at this point, then we met the above requirements. You know not which of the children who are alive in 20 years.
The current yield on the fund capital, by contrast, is easily distributed to the beneficiaries according to a fixed key.
Possibly, the Fund may pay out money to companies owned by the beneficiaries.
Ad Tax of 20% in deposits
When native Local people and companies transfer assets to foreign trusts / funds located in various low-taxing, and the Fund are not public charities must pay a fee of 20%.
To avoid the charge is forced to incorporate a foreign person or company to make payment.
Ad Management seat
If fund managers are based in a high tax country in Europe, the foreign fund will be considered as a Local fund and the fund must be taxed as ordinary Local funds.
It is therefore important that the foreign trust is a foreign manager who can handle the daily operations.
Foreign funds for creditor protection
If the founder of a foreign trust and inserts itself as a beneficiary, the tax authorities in a high tax country in Europe, refuse to acknowledge the fund.
This means that the pins will still include the return within the Fund for its taxable income. The fund is still an effective defense against possible future creditors.
Should the fund be used for creditor protection, it is nevertheless important to emphasize that it must be dynamic as well as static solvent at the time of creating the fund - even after the asset transfer to the fund.
However, this rule will only be able to provide the administrator of the fund money to that beneficiary under the statutes of the fund.
If you are so wealthy and do not want to see a possible future bankruptcy or damages shall deprive an all values, it is a foreign trust a good agent.
A wealthy person who is considering divorce, and only joint, can also with great advantage to create a foreign trust. The upcoming ex wife can, regardless of the number of lawyers do not get the values contained in the trust.
When the tax does not recognize the foreign fund, it has the advantage that if you transfer assets to the fund, which is a latent taxable profit, for example. shares, so it does not trigger taxation.
One can thus put its shares in the safety of a new legal entity - without triggering tax.
Who keeps control of the foreign fund / trust?
When you set up funds in a high tax country in Europe, Local Commerce and Companies Agency, Civil Directorate tax and keep control of the fund managers available funds in a manner that is consistent with the fund statutes and Local law.
With foreign funds / trusts, there is no public oversight, but the pins, however, have the opportunity to choose a protector that can perform this control function, if desired.
The flexibility, accessibility and effectiveness of trusts - whatever type of trusts there may be - depends on how smart your lawyer/banker is. Trusts are commonly known to be "safe" because they are afforded a separate legal entity. But the extent of control and protection your trust ultimately has depends on HOW it is set up, versus the laws under which it is set up.
S
SysOp
Very true, thats why you should only consider a Trust if it is registered in an Offshore / Low Tax Jurisdiction, like Seychelles or Cyprus and others.gwenpinay said:
Trust and Fund as paramount entity and trading / offshore company below that - It's a very well working offshore company structure in regards to everything most are seeking, no tax, 100% privacy and anonymity protection and asset protection. Further you can keep your Trademarks, Patents, licenses in one offshore company and charge the entire structure license fees 
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