Curacao Private Foundation

Transcription

2 Old Chinese Saying: Wealth Cannot Last Three Generations

3 But in the West, Wealth Often Lasts Many Generations Rothschilds, Rockefellers, DuPonts

4 Wealth Is Institutionalized and Professionally Managed Intelligent Use of Offshore Structures Private Bankers and Advisers Help Families Establish Financial Dynasties

5 Important Objectives Legal Preservation of Assets and Investments Tax Planning Transfer Ownership of Assets and Investments Into Offshore Vehicle Use a Vehicle Reducing Tax Burden on Persons Receiving Distributions Generation-Skipping Considerations Protection Against Creditors

6 Important Objectives Protect Privacy Choose a Vehicle Ensuring Confidentiality Flexible Structure That Can Evolve, Change According to Changing Needs Family Realities Project Realities Business Realities Protect Privacy Choose a Vehicle Ensuring Confidentiality

7 Important Objectives Structure That Separates, Yet Controls Different Projects Different Projects Kept Separate to Reduce Risk Financial Problems Within One Project Will Not Affect Other Different Projects Kept Separate for Different Beneficiaries Estate Planning Use a Vehicle Enabling Orderly and Quick Transfer of Assets to Beneficiaries Vehicle s Flexibility Important: Investor Needs to Retain Full Control Add or Remove Assets at Any Time Add or Remove Beneficiaries at Any Time

8 What Kind of Vehicle Can Achieve All of These Objectives? The Curacao Private Foundation

9 Where is Curacao? Curacao is a Tax Haven and Financial Services Center Based In the Southern Caribbean Sea As Part of the Netherlands Antilles, Curacao Is European Curacao s Financial Services Sector Performs the Same Function That Hong Kong Performs in Asia

10 Where is Curacao?

11 What Is a Private Foundation? A Separate Legal Entity A Hybrid of a Company and a Trust Holds Assets Under Foundation s Name Based in Curacao, Netherlands Antilles A Stable Tax Haven and Financial Services Center

12 Key Advantages of Private Foundation Confidentiality Control Flexibility Low Cost

13 Private Foundation vs. Traditional Vehicles Private Foundation vs. BVI Company Foundation Separates Different Business Interests Different Projects, Interests Not Mixed Together: This Reduces Convenience of Management If Founder Does Projects Over a Lifetime, One Private Foundation Can Accommodate Them All Under BVI Company Structure, Each Project Would Have to be Organized Under a Different BVI Company

14 BVI is the Most Popular Site of Offshore Companies Serving Asian Businesses BVI Starting to be Abused No Longer Low-Profile US, OECD Countries Increasing Pressure on BVI to Share Corporate Records Risk of Losing Confidentiality in BVI Companies Degree of Suspicion Involving BVI Companies Among US, OECD Countries Curacao Enjoys a Much Lower Profile Than BVI A Part of the Netherlands, European Union Much Smaller Scale of Asian Business Presence in Curacao

15 Private Foundation vs. Hong Kong Company Hong Kong Has Tax Treaty Benefits With China Ideal For China-Related Businesses But Inherent Risk of Chinese Government Examining Corporate Records Solution: Curacao Private Foundation Owns Hong Kong Companies Doing China-Related Business Companies Not Doing China Related Business Not Registered in Hong Kong, Kept Separate Under Curacao Private Foundation

16 Private Foundation vs. Trust Operation of Private Foundation Highly Similar to a Trust Legal System in Curacao Provides More Protections For Founders Private Foundation is Multi-Generational, No Limit on Duration Private Foundation is More Flexible Founder Retains Full Control Founder May Add, Remove Assets and Beneficiaries At Any Time No Taxes on Private Foundations in Curacao

17 What Can Private Foundations Do? Ensure Founder s Confidentiality Minimize Taxes on Assets and Investments Protect Assets and Investments From Creditors Manage Assets and Investments Defer Income Preserve Family Assets Over Multiple Generations Make Distributions to Beneficiaries Like a Trust Orderly and Quick Distribution of Assets to Beneficiaries Upon Founder s Passing

18 Confidentiality Founder s Identity Kept Private Foundation Opened and Registered in Curacao Attorney s Name, Not Founder s Name Curacao Attorney Doesn t Even Know Founder s Name Founder May List Self as Beneficiary But List of Beneficiaries Not Public Founder s Name Separated From Ownership of Assets Assets Are Owned by the Foundation, Not the Founder

19 Confidentiality Founder s Identity Protected Behind Foundation Structure Layers Attorney-Client Privilege No. 1 Between Founder and Pamir Law Group Attorney-Client Privilege No. 2 Between Pamir Law Group and Curacao Attorney Curacao Management Company Listed As Foundation s Director Management Company s Address Listed as Foundation s Address

20 Founder Attorney-Client Privilege Pamir Law Group Attorney-Client Privilege Curacao Attorney Curacao Management Company Curacao Private Foundation Anonymity

21 What Information Is Made Public? The Outside World Sees This: Curacao Foundations Register Name of Foundation Date Foundation Established and Registered Management Company s Address in Curacao Management Company s Name Listed as Director

22 How Does The Private Foundation Work? Structure of the Private Foundation: Founder (Optional) Supervisory Board: Controls and Supervises Board of Directors Letter of Wishes: Sets structure, functions, powers, assets and beneficiaries. Founder may modify at any time. Holds Assets Directly, or Through Other Entities Appoints/Dismisses Board of Directors: Manages Foundation Private Foundation: Investment Vehicle Protector: Appoints, Dismisses and Instructs Board of Directors and Supervisory Board on Behalf of Founder Appoints/Dismisses Distributions: Made as Instructed by Letter of Wishes and Letters of Instruction Beneficiaries Investment and Holding Companies Holding Tradable or Non-Tradable Securities Asset Protection Holding Land Deferral of Income Estate Planning

23 Roles of Pamir Law Group, Curacao Attorney and Curacao Management Company: No Public Records of Connection Between Founder and Private Foundation Founder s Identity Remains Confidential Under Attorney-Client Privilege Protector s Identity Also Remains Confidential Layer 1 of Attorney-Client Privilege Layer 2 of Attorney-Client Privilege Founder Retains Power to Appoint or Dismiss Protector (Pamir Law Group) Law Office (in Curaçao) Board of Directors Carries Out Founder s Wishes Carries Out Founder s Wishes Appoints Board of Directors, (optional) Board of Supervisors Based on Letter of Wishes or Letters of Instruction Private Foundation (Investment Vehicle) Investment and Holding Companies Holding Tradable or Non-Tradable Securities Asset Protection Holding Land Deferral of Income Estate Planning

24 Tax Benefits Income Deferred Into Foundation Not Taxable as Personal Income Curacao Does Not Tax Foundations on Income, Dividends or Payouts to Private Foundations From Assets and Investments

25 Control Founder Retains Control Over Foundation Through Pamir Law Group Founder Signs Contract With Pamir Law Group Pamir Controls Foundation, But May Only Act Upon Written Letter of Instruction From Founder Curacao Management Company May Only Act Upon Written Instructions From Pamir Law Group Founder May Add, Remove Assets At Any Time Founder May Add, Remove Beneficiaries At Any Time

26 Flexibility What Kinds of Assets Can Private Foundation Hold? No Limit: Cash in Foreign or Local Bank Accounts Certificates of Deposit Interest-Bearing Claims of Any Denomination Real Property Intangible Property Shares (Tradable and Private) Beneficiary Interests Example: Right to Receive Dividends

27 Different Assets Kept Separate: Different Projects Kept Separate Private Foundation Controls Entire Basket of Projects Yet Projects Separated to Reduce Financial Risk Different Beneficiaries For Different Projects What to Do With Existing Offshore Companies? Ownership Can Be Transferred to Private Foundation No Need to Change Offshore Companies Structure, Simply Make Foundation the Owner

28 Who Would Benefit From Using a Private Foundation? Persons Seeking to Manage Taxes Persons Wanting to Consolidate Holdings Under Single, Flexible Umbrella Persons Wanting to Ensure Confidentiality Persons Who Want a Discreet, Reliable Way to Provide For Loved Ones Persons Seeking a Vehicle For Retirement Persons Seeking a Vehicle For Estate Planning

29 An International-Style Law Firm and Business Consulting Firm Based in Greater China: Taipei Shanghai Beijing PAMIR Law Group Provide Strategic Insights and Implement Practical Legal and Business Solutions in Greater China Thirty-Year Track Record of Successfully Closing Transactions In a Broad Range of Industries In the PRC and Taiwan

30 Strategic Market Entry/ Expansion Studies, Plans and Implementation Trade Finance Services for Taiwan Companies in China Legal Services Legal Government Relations and Law Reform In-House Counsel Support Network Direct Investment Due Diligence Services Partner Matching Services CXO Learning Journeys CXO Business Consultancy Services PAMIR Law Group Taipei-Shanghai-Beijing Event Management Conferences and Seminars The China Forum Online Speakers Global Reach Portal Project Global Network Fourth Link: Cross Straits Investment and Trade c

31 PAMIR Law Group Is a Member Of the Renaissance Network Of Co-Counsel Counsel Spanning 20 Cities In China: Beijing Chengdu Dalian Fuzhou Guangzhou Haikou Nanjing Ningbo Qingdao Shanghai Shenzhen Shijiazhuang Suzhou Wenzhou Taiyuan Tianjin Wuhan Xiamen Yantai Zhengzhou c

32 How To Obtain More Information? Contact Jason Blatt at Pamir Law Group: Tel: (+886) , ext. 724 Contact Alexa Chiang at Pamir Law Group Shanghai Office: Tel: (21) , ext. 331/332