Private Foundations operates similar to trust but have recognised legal status. Foundations incorporate all of the benefits and advantages of a trust, into a simpler and more flexible vehicle. A Foundation is an independent legal entity with which assets may be irrevocably vested, those assets then belong to the Foundation which may do with them what it pleases provided that the guidelines of the Foundation charter are complied with. Foundations should technically exist for non-profit purposes; however, a Foundation may carry out commercial activities in its own right as long as the profits are for the Foundation's stated purpose, which can be very wide ranging. Alternatively, a Foundation may act as a "holding company" and own shares in company (for instance an Isle of Man company which is seen as far more acceptable to IOM/ UK lending banks in property structures), which in turn carry out trading activities. The profits derived from these trading entities must be used for the Foundation purpose.
MAIN FEATURES AND BENEFITS OF A PRIVATE FOUNDATION:
Foundation Charter registered at the public registry.
A Foundation is created under the law of a Sovereign State. A Foundation is a Corporate entity. A Foundation enjoys legal personality. A Foundation has no Beneficial Owner. A Foundation can have perpetual or limited life. A Foundation holds title to its assets. The minimum patrimony is $10,000. A Foundations Founder can be an individual or corporate entity. The Foundation Council can be located anywhere. Protector(s) can be appointed. Third Parties can be incorporated into structure. The Foundation Charter is in the public domain. The Foundation Regulations are a private document. The Foundation Council act according to Foundation Regulations. Beneficiaries are appointed via the Foundation Regulations. Beneficiaries can be individuals or corporate entities - could be another Foundation. Beneficiaries are not required at the outset. No Sham - Certainty is established upon registration.
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