Talk:Offshore foundation

The Netherlands Antilles ‘Stichting Particulier Fonds’ (Private foundation)

The Netherlands Antilles entity Stichting Particulier Fonds or in short SPF is one of the a special purpose legal entity, the Foundation offers an adoptability of a trust and a flexibility of a corporation. The Private Foundation offers an alternative to Anglo-Saxon concept of the trust. One of the essential difference between a Trust and a Private Foundation is that a Trust a can be established by private deed and is not a legal entity a Private Foundation is a legal entity, which allows for separation of assets and limitation of liability.

Establishing a Private Foundation is very simple like most of the Netherlands entities; the Private Foundation could be established through notarial deed and is registered in the Foundations Register of the Chamber of Commerce. The names of the founder and board members are registered in the Foundations Register. The principal is free to determine the continents and the structure of incorporation.

Uses of a Private Foundation.

•	The Founder in a letter of wishes can express the dispensation of assets of the Foundation.

•	The Private Foundation could be placed on top of the structure making it to receive dividends from the underlying companies.

•	Contributions made into and made by the Private Foundation by foreigners are tax exempt.

•	The Private Foundation can converted into a foreign foundation or even into another legal entity (e.g. limited liability company).

Characteristics,

The Private Foundation is a special kind of an entity when compared to Common Foundation “ Stichting”. There is no charitable purpose attached to a Private Foundation when compared to a Common Foundation. As incase of a Common Foundation, a Private Foundation will also be not allowed to undertake business activities. But the following activities are not considered as business activities.

•	Investing its capital regardless of the sort of investment. •	Acting as holding entity. •	Participating as a limited partner in a limited partnership.

All disbursements made by the Foundation are tax exempt in the Netherlands Antilles, provided that the private foundation has not undertaken business activities.

The Private Foundation is obligated to prepare annual accounts within eight months after the end of its book year. There is no obligation to file annual accounts with the Chamber of Commerce.

As discussed earlier the Private foundation exhibits both the qualities of a Trust and a corporate entity.

By

Madhusudhan A.N.V.

ULC Bangalore