What is Stichting Particulier Fonds?

Answer 1

In contrast with a common foundation, a Private Foundation can make to the discretion of the Director distributions to its incorporators or to others, out of its income or its assets. It can have any legal purpose, however it may not perform any commercial business. Yet, holding and managing its own assets is allowed. * Incorporation is quick * Formalities are few * Great degree of flexibility * Ability to form for an unlimited period * Complete exemption of all taxes in the Netherlands Antilles * Ability to make private distributions * Only one director is required * The founder does not have to be disclosed * Beneficiaries do not have to be named or informed * Transfer of domicile is also allowed

A Private Foundation is established by means of a Founding Deed that has to be executed in the presence of a Civil Law Notary practicing in the Netherlands Antilles. Furthermore, the PF must be entered in the Commercial Registry at the Chamber of Commerce. Moreover, the Articles of Incorporation must regulate the appointment and dismissal of the Managing Board. It is not required to prepare financial statements or to file tax returns, because the PF is fully exempt of all taxes, including withholding taxes and succession duties. Gifts to a Private Foundation by non-residents are exempt from gift taxes as well. Formation of a Private Foundation takes about 3 business days. The Private Foundation can be used for: * Estate planning; the establishment of a Private Foundation can be attractive both from a fiscal as well as a controlling point of view;

* Protection of assets; by transferring ownership of the assets to a Private Foundation the assets can be protected against political or economic instability; * Income deferral; as long as no distributions are made, income generated from the transferred assets will not be taxed;

* Maintaining control of a company; a Private Foundation is an ideal vehicle against (hostile) takeovers, as it has neither shareholders nor members.

A Private Foundation can have any lawful purpose, but may not be involved in operating a business with a profit motive. The words "stichting particulier fonds" or a translation thereof must be part of the name of a PF.

A tax exempt vehicle for separating the legal and beneficial ownership of your assets:

* Corporate entity, not a trust * Separates ownership of assets and liabilities * Tax-exempt structure * No shareholders, only directors * Flexible distribution of income and assets * No obligation to prepare annual accounts and file tax returns * Privacy and confidentiality maintained the Netherlands Antilles

More information can be found on the site Trustmoore.com.