9th April 2018
Sarah Barrington (WEBSTER)
With the Paradise papers leak in 2017 and the infamous Panama papers leak the year before, it has become increasingly more important to choose the right destination for offshore investment. MSI's Anguilla law member WEBSTER provides further insight.
It will require careful consideration, planning and skilful professional advice. It will also no doubt require a jurisdiction with a politically and economically stable environment, sound legislation, low tax (or zero tax), a solid banking framework and a discreet environment. The good news is that Anguilla is such a jurisdiction and, depending on your situation, offshore investing can offer many advantages.
Anguilla offers a wide range of investment vehicles and strategies to capitalize on the advantages not offered in an investor’s home country. The favourable tax rates in Anguilla are designed to promote a healthy investment environment.
Anguilla is a popular location for restructuring ownership of assets. Through trusts, foundations or corporations, individual wealth can be transferred to other legal entities.
In addition, Anguilla has laws establishing strict corporate confidentiality with serious consequences for any breach of confidentiality. Importantly, although Anguilla is a discreet jurisdiction, its laws will allow the High Court to order disclosure to third parties in cases of illegal or other wrongful activity. For the high-profile investor keeping his or her identity confidential whilst purchasing shares in a company offers a significant legal and financial advantage.
The procedure for creating an Anguilla trust is extremely simple and certainly no different from doing so in many Common Law jurisdictions. All that is required is the execution of a trust instrument appointing the trustee(s) and setting out the terms of the trust, coupled with the payment or transfer of a fund (which may be no more than nominal at the outset) to the trustee(s). There are no other formalities.
The Anguilla Foundation
This is a vehicle that is well suited to entrepreneurs seeking to provide for the welfare of successive generations of their family, particularly but not exclusively in civil law jurisdictions, as well as the ideal vehicle for managing a “family office.” Its layer of corporate personality essentially acts as a corporate veil.
The Anguilla Foundation is a versatile vehicle for Estate Planning and Asset Protection. It is different from a trust in that although it has the same rights and duties as a Trustee, it is capable in its own right to transact business and enter into legally binding contracts. It has a separate legal personality, the ability to hold assets in its own name and the ability to contract with third parties and to sue and be sued in its own name. Foundations hold assets for the benefit of beneficiaries or purposes.
With careful drafting of the Foundation’s declaration of establishment or by-laws, the assets of the foundation are available for distribution to a beneficiary and not capable of being alienated or passed by bankruptcy, insolvency or liquidation, or liable to be seized, sold, attached, or otherwise taken in execution by process of law. In addition, an Anguilla Foundation is irrevocable and not subject to any perpetuity periods.
In brief, the Anguilla Foundation is one of the most straightforward and yet sophisticated foundation models available in the world today.
Read the full article on Foreign Investment in Anguilla here.
WEBSTER is a leading law firm in Anguilla and Nevis, providing global reach through quality associations worldwide, while delivering the highest standards of advice and service.
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