International Corporate Services Ltd. (ICS) is a premier licensed International Financial Services provider in Belize. They focus on the formation of Belize IBC’s, Belize offshore trusts and private foundations in Belize. Below we’ll uncover some frequently asked questions about Belize foundations.
What is a Private foundation?
A private foundation is an independent self-governing legal entity that is set up and registered by an official body within a jurisdiction in order to hold an endowment for the benefit of beneficiaries. Private foundations do not engage directly in commercial operations and exists without shares.
Private foundations are like a hybrid between an offshore company and an offshore trust because it can take part in business transactions like an IBC and has beneficiaries like a trust. But an offshore foundation is developed separately from these entities and has its own special applications.
Why do I need a foundation?
Private foundations are a great way to protect assets against any future personal liabilities. By creating a Belize foundation and gifting these assets (endowments), they will become free and clear from any claims made personally against you.
Belize foundations can also be used to mitigate forced heir ship provisions. By forming a foundation to manage the assets, you are guaranteed that the assets will be distributed in accordance to your wishes.
Would I be able to regain control of my assets after forming the foundation?
You can still have control over your assets by naming yourself as the ultimate beneficiary of the foundation or by undertaking the role of the protector of the foundation. As the protector, you can override the powers of the foundation council.
Who is the protector of a foundation?
The protector of a foundation is someone that is appointed by the foundation’s creator. The appointed protector of the foundation will have the ultimate say in how the foundation is run. The protector can also be the founder of the foundation but not a member of the foundation council.
What is the legal status of a foundation?
All Belize foundations are legal corporate entities with a legal personality as well as rights and status of a separate and independent person. The private foundation can enter into contracts; sign agreements; own bank accounts; buy and sell, trade and conduct business; and own shares or interest in other companies.
Can a foundation be a shareholder of an offshore company?
Yes it can. A Belize foundation can be involved in any legal business activity, and this activity can in turn create wealth for the foundation.
What is the difference between a Belize foundation and an offshore trust?
Foundations and trusts have very similar qualities but they have very unique purposes. A foundation is a corporate entity with its own legal personality separate from its founders, councilors and beneficiaries. On the other a hand, a trust is a legal arrangement that involves a formal transfer of assets from settlor to the trustee for the benefit of a beneficiary.
The assets of a foundation are owned by the foundation and not by any one person. The assets of a trust are legally owned by the trustee and the beneficiary has beneficial ownership.
To remain valid, a foundation simply needs to be properly incorporated; but a trust must meet certain conditions at all times to be effective.
Contact ICS for more information on establishing Belize foundations and other offshore formations. ICS also provides offshore company formations in various jurisdictions including Anguilla, Seychelles, Nevis, Dominica, BVI and Panama.
