OUR OFFICES: LONDON, UK Office | +44 20 3769 1690  –  CORK CITY, Ireland Office | +353 21 202 8069  –  Contact Monday to Friday: 9 am to 6 pm GMT time  –  Skype: CALL | CHAT

OUR OFFICES:
LONDON, UK Office | +44 20 3769 1690
CORK CITY, Ireland Office | +353 21 202 8069
Contact Monday to Friday: 9 am to 6 pm GMT time 
Skype: CALL | CHAT

BENEFITS
TO REGISTER YOUR FOUNDATION
IN THE ISLE OF MAN (IOM)

SETTING UP YOUR
FOUNDATION IN THE
ISLE OF MAN

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Isle of Man Foundation
Benefits

The Isle of Man (simply called “Mann”) is a British crown dependency, but self-governed. Located between England and Ireland on the Irish Sea. English is its official language along with Manx.

An Isle of Man Foundation is a legal entity benefiting a natural person or a class of persons and/or to complete a specific purpose. While a foundation is similar to a trust and a limited company with limited liability. A foundation can hold assets, engage in trade, raise money, sue and be sued in a court of law. In addition, a foundation can have a perpetual duration available for generations of beneficiaries.

Historically, wealthy families in Europe have established Family Foundations incorporated in the Principality of Liechtenstein (a Neutral jurisdiction for purposes of wars, etc.) for the purpose of estate planning and succession, to ensure the safe transition of assets to the family’s beneficiaries.

A Foundation is often described as an incorporated trust.  It is a legal entity which combines favourable attributes of both a company and a trust which are potentially advantageous for individuals in civil law jurisdictions as they do not recognise the autonomous legal status of a trust or follow the law of equity.

The Isle of Man Foundations Act of 2011 (the Act) became effective in 2012 and governs the formation, activities, and dissolution of foundations in the Isle of Man.

Benefits 

The Foundation’s separate legal personality means all liabilities remain corporate liabilities of the Foundation and do not attach to Foundation members.  This limitation of liability:

  • provides the ability to hold potentially riskier assets, which trustees may be unwilling to hold.
  • removes the complications of trustee indemnities on retirement or distribution of assets.
  • Unlike some other offshore jurisdictions, the Isle of Man Foundation does not require the Foundation Council to comprise local licensed individuals.
  • The Founder can be a member of the Foundation Council and also the Enforcer and is thus able to retain an element of ‘control’ over the Foundation’s assets and activities.

Further relevant advantages an IOM Foundation can offer you:

  • Foreign Owner: A foundation can be owned by foreigners.
  • Asset Protection: As a separate legal entity, the foundation owns all assets it holds further insulating the settlor (founder) and the beneficiaries from the assets.
  • Estate Planning: An ideal estate planning tool as a foundation can provide for the settlor’s heirs and beneficiaries for unlimited generations without dealing with timely, costly probates.
  • Perpetuity: A Foundation does not have a perpetuity period, which trusts currently are required to include.
  • No Taxation: Completely tax-free income and profits
  • Limited Liability: Foundations enjoy the same limited liability rights as a limited liability company (LLC).
  • Trading: Unlike most countries, an Isle of Man foundation can engage in trading and commercial activities.
  • Privacy: The names of the founder and beneficiaries are never included in the public records.

The content of this article is intended to provide a general guide to the subject matter.
Technical advice should be sought about your specific needs and requirements.

The content of this article is intended to provide a general guide to the subject matter.
Technical advice should be sought about your specific needs and requirements.

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