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Mix and match for better asset protection

May 8, 2013 - by Nida U.

Asset Protection

As you already know, we offer a range of offshore investment and banking options, variety of the best jurisdictions to choose from, great choice of different asset protection vehicles and the best services that come along with it!

I wanted to draw attention from those readers, that haven’t yet heard about combined asset protection vehicles, as this is something our clients widely use, to ensure that they have done everything to add that extra layer of protection to their wealth.

Mainly this goes to those, who live in high-tax countries, countries that have the power to tax any offshore company which is managed and controlled from within the country. This is so called “mind and management” concept. In very simple terms, it means that a legal person (a business corporation) will be considered resident for tax purposes in the country where its mind and management is located – regardless of where the company was incorporated in the first place. E.g., if the owner of IBC from a high-tax country himself carries out the practical management of this IBC – then he is creating, at his own home, what the taxman calls “a permanent establishment” of the offshore company.

This is why we suggest and stress the benefits when in choosing professional company management. Classic professional management and something that comes in mind to everyone is nominee directorship and nominee shareholder services.

Now, for the ultimate asset protection we suggest our clients to consider establishing International Asset Protection Trust or International Asset Protection Foundations to hold the shares of their IBCs. As to the jurisdiction for your IBC, Trust or Foundation there are options to choose from, and for stronger twist we suggest to choose different jurisdictions for either vehicles, e.g., Belize International Trust holding the shares of a Seychelles IBC, Seychelles International Trust holding the shares of BVI IBC, Belize International Foundation holding the shares of BVI IBC etc..

I drew something (see below) to illustrate why is it better to establish Trust of Foundation to hold the shares of your IBC, you can see where are you and how visible are you in these different structures.

Asset Protection

You must be wondering what is your role in C or D? Here you have few options, to become beneficiary of the Trust of Foundation, not to become anyone, assigning as beneficiaries someone else, or establishing either – Foundation or Trust - for charitable purposes!

Like we say, buying an offshore company is easy, but running it in a proper, safe and smart manner is not that easy.

Thank you for reading my post! And you are welcome to leave comments, feedback, suggestions for other posts or contact me for more information.

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