A trust is made when a legal element or an individual (known as the Settlor) transfers the legal possession and management of assets (known as Trust Property) to another individual or entity (the Trustee). Ordinarily, the trustee is tasked with ensuring that the trust property generates some value to other individuals (known as beneficiaries).
A trust is generally guided by terms and conditions included in the trust deed and the trust legislations of the jurisdiction where it is being organized. So, taking this into account, let us shift our focus to a particular jurisdiction – Seychelles. Offshore trusts have become extremely popular globally and more so in Seychelles.
What Is a Seychelles Trust?
Simply put, a Seychelles trust is a trust shaped in Seychelles. The tax-haven jurisdiction’s government drafted the Seychelles International Trusts Act of 1994, which was amended by the International Trusts (Amendment) Act of 2011. The enactment provides legal means by which people and entities can ensure their assets against high taxes, personal obligation, the risk of confiscation, and exchange controls.
Under Seychelles law, an international trust is characterized as a trust of which:
Seychelles international trusts are considered to be irrevocable naturally, yet revocable trusts are also permitted. Most of the Seychelles international trusts are formed as discretionary trusts, which allows for greater flexibility in managing changes in the beneficiaries' needs and situations.
The Act particularly provides for the following types of trusts:
However, the list above is not exclusive, and alternate trust varieties customized to client-specific needs are also accessible.
To continue with the incorporation of a trust business in Seychelles, one has to go through the steps mentioned below:
Primarily, it is recommended to continue ahead with expert guidance. One of the major reasons behind this is that being a foreign investor, it may end up being hard for you to understand the legal rules and regulations in one go.
At the same point, any restriction in the process may cut short the complete process. Thus, to play out the services more efficiently, most business investors like to take expert advice. Here's a guide on How Can a Foreigner Open an Offshore Company in Seychelles, which would give you better insights on the offshore company incorporation in Seychelles.
The secondary call is to be prepared and transparent in regards to the documentation process, which implies that the essential papers must be prepared. On account of a Seychelles Trust Company, the accompanying docs are required to be submitted:
When the documents referenced above are all prepared, they should be submitted to the business advisor. In the later process, these documents will be sent to the tax-haven jurisdiction's respective authorities to accept the necessary calls to endorse licenses. In case it is denied, you need to cross-check with your advisor and rectify the mentioned errors.
Additionally, you also need to open a bank account, which you can proceed in the same jurisdiction or choose any one among the popular offshore jurisdictions.
After acquiring the authorities' permissions and licenses, you can continue ahead with the concerning business operations.
With a heap of business incorporation and tax exclusion benefits, Seychelles is an ideal business destination to set up your offshore trust company. Prior to making any further legal strides that lead to business incorporation, it is advised to continue ahead with master guides who can assist you with the appropriate process in a problem-free way.
At Business Setup Worldwide, we deal with the customer's essentials and assist them with starting their offshore company in their preferred offshore destination. Our business advisors are well aware of the incorporation process and can help you by giving customized solutions accordingly. In case you are anticipating to start your offshore trust company in Seychelles, have a word with our business experts. Contact us today- we'd be happy to assist!