Isle of Man is a preferred location for the formation of investment vehicles and wealth management structures. Investors can open a foundation in the Isle of Man by following the guidelines set forth in the Foundations Act.
The main uses of a foundation target family and estate planning but these structures can also be used for charitable purposes. Our Isle of Man company formation agents can help you open a foundation and handle all of the registration requirements.
Table of Contents
The uses of a foundation in the Isle of Man
The foundation can be seen as an alternative to opening a trust in the Isle of Man and it is a suitable choice for individuals who wish to benefit from largely the same asset protection services without entering into a trustee relationship. As such, foundations in the Isle of Man may be used for the same purposes as trusts. These include:
- wealth planning for families and succession;
- business succession planning;
- personal assets protection;
- tax reduction;
Like the fund, the foundation has a flexible duration. However, instead of having to create a determined relation between the beneficiary and the trust manager, in case of the foundation, the founder may choose his level of involvement. If you want to open a foundation, we can also present the steps for opening a bank account.
The foundation is a separate legal entity; however, it does not have shareholders but beneficiaries. This legal structure can be used to hold assets, for the purpose for which it was created (which can be charitable or non-charitable). Our agents who specialize in offshore company formation in the Isle of Man can give you further details on the characteristics of the foundation.
The establishment of a foundation in the Isle of Man
An Isle of Man foundation is incorporated through an application submitted to the Registrar or Foundations. The application is submitted by a registered agent (an individual who is authorized to occupy this function) and it will include the name and business address of the foundation, the registered agent’s and the council member’s personal identification details and information about the objectives of the foundation.
For more information on setting up a company in the Isle of Man or for more details about foundations and trusts, please do not hesitate to contact us.