Eternity Law International — News — Private Foundation Setup

Private Foundation Setup

Published:
September 21, 2022

With more flexible mechanisms if compared to trusts, charitable or non-profit organizations are getting more and more approval because of their reduced costs, lenient regulative mechanisms, beneficial taxes, and strong security. Many individuals seeking for a structure to keep assets decide on trusts, and it’s particularly the case in Anglo-American legal systems. But private foundations setup, as applied in civil legal systems, has many benefits, and Anglo-American legal systems have recently amended laws to offer them as solutions for asset keeping or for purposes that benefit the community.

Main features of foundations

Contrary to trusts, the foundation has a legal personality and is administrated by a manager, who can often be a non-citizen or even a non-resident. The specter of legal responsibility for a trustee is mostly greater compared to a foundation manager, as the later is itself responsible for its operation. Hence, the core advantages of this vehicle are flexibility, favorable taxes, and a long list of respected jurisdictions.

Preferable jurisdictions

In general, to hold assets, investors decide on one of the below-mentioned territories:

  • The Cayman Islands;
  • Curacao;
  • the Isle of Man;
  • The Republic of Panama;
  • the Channel Islands;
  • Guernsey;
  • Liechtenstein.

Setting up private non-profit organizations: main peculiarities

  • Most above-mentioned countries have enacted and introduced laws aiming to ensure duly operation for structures in the respect of asset keeping or doing charity.
  • In all countries, a founder of a private foundation is required to pass through full Anti-Money Laundering/ Know Your Client processes to ensure a proper operation.
  • Obligations towards capital or assets do not differ a lot from country to country.
  • One of the territories with a reduced cost for formation and simplified administration obligations is Curacao.

When choosing the most suitable country for a private foundation set up, quality, time for responses and personalized, expert support offered should contribute as much to your final choice as the legal system and regulative peculiarities.

Classification of non-profit organizations

In terms of regulatory obligations, there are 2 main classes of non-taxable charitable institutions:

  1. Public charities (financed by a plethora of public sources) and
  2. Private foundations (privately financed or endowed).

Charities are freed from taxation, however, private foundations should pay at least 5% of their net investment assets every year in the form of charitable grants. This type normally directs ore regulative and supervisory regulations from authorities than public charities.

There is a condition that persons may receive tax deductions for making donates to charities to the extent of 60% of their income (AGI) for cash donates and 30% of income for gifts of appreciated assets, covering stocks and real estate. For contributions to private institutions, however, the borders are 30% of income for contributions and 20% of income for appreciated assets.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Company registration in Luxembourg

Luxembourg is a developed region with a stable economy and a transparent legal framework. This is the basis for entrepreneurs to be able to successfully conduct their activities here, earning a high income. However, it should be remembered that Luxembourg is not an offshore zone. Company forms and taxation In Luxembourg there is no offshore...

PSP license in Belgium

After the approval of the second EU Directive, in accordance with the Belgian law controlling the financial field of the jurisdiction, the possibilities of financial services and the establishment of such businesses for entrepreneurs from other countries were expanded. This type of activity is subject to FSMA licensing. Enterprises that operate in several areas at...

Canadian MSB licensed companies setup

Our group of experts can help you with setting up a money service business in Canada. It includes a procedure of legal application, regulatory interaction, the creation of required paperwork, and constructing the payment system, we recommend contacting our specialists to deal with it. Why Canada? This state encourages trade, and there are several fintech...

AEMI license in Ireland

This article provides info for business-companies thinking about applying for authorization as an AEMI. The Central Bank of Ireland is the appropriate body in Ireland for the authorization and inspection of e-money institutions. Principles of AEMI in Ireland for sale Bank of Ireland hopes that firms fully understand the risks associated with their business model...

The UK intends to simplify the confiscation of cryptocurrency

The UK wants to reproduce reported amendments to the cryptocurrency regulations in the UK – Economic Crime and Transparency law to permit the quick take of crypto-assets connected to terrorism. Who regulates the UK Crypto industry? The UK Financial Conduct Authority (FCA)has taken control of the British AML and CTF rules in operations related to...

SEMI license in Portugal

The investment industry is constantly evolving with the growth of cryptocurrencies and online payment systems. In this era of financial innovation, SEMI licenses are becoming the primary way to store and exchange alternative electronic money. With an excellent regulatory framework, Portugal stands out as a favorable location for companies looking to obtain a SEMI license...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360