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Aspects of the Bahamas Foundation

Tax Exemptions

Tax exemptions that are made available to Bahamas foundations make it possible to conduct the affairs of the foundation in a tax free environment. This enables the members of the Bahamas foundation to profitably pursue the interests of the offshore foundation through a variety of offshore investment options.

Bahamas foundations receive tax exemptions on the basis that no beneficiary of the offshore foundation resides in The Bahamas, and that no founder, legal entity or natural person that contributes to the assets of the Bahamas offshore foundation qualifies as a resident of the Bahamas.

Taxes from which Bahamas foundations are exempted from by the Government of The Bahamas include income tax, distributions accrued or derived from the offshore foundation or from any transaction, withholding tax, rates, levies or other charges to the beneficiary, gift tax, profits tax, capital gains tax, exchange controls, inheritance and succession tax, stamp duty, estate duty asset tax, including other similar local taxes that may be imposed on assets or on revenue generated in a foreign country, or stamp duty on property transfer.

International foundation combined with permanent residence or a second citizenship builds a secure asset protection tool. Most families who apply for second passports usually want to safeguard their financial futures and persons physically. Heads of households who apply for St Kitts second citizenship and are entrepreneurs wish to do business in a friendly business climate with no capital gains tax and lower corporate tax rates.

In the absence of tax on estate and inheritance, property management and transfer are easier. Reputable, established second citizenship programs are in Dominica and St. Kitts. They are known by economic citizenship and citizenship by investment programs and are perfect investment channels.

Protection of Officers from Liability

All officers, supervisors and council members of the Bahamas offshore foundation are personally responsible for their own defaults, mistakes, criminal act, insolvency, loss or expense caused to and negatively impacting the offshore foundation as a result of their own actions or in the course of executing specifically delegated tasks.

Letter Heads

The legal name, address of registered office, registration number and place of offshore registration should appear on the letter head of all invoices, business letters and order forms of a Bahamas offshore foundation.

Officers and Contracts with the Offshore Foundation

Any officer that intends to propose a contract to the foundation is responsible for openly stating the nature of his interest in the proposed contract or informing the members about the terms and conditions of the contract at a meeting held with officers.

Seals

Bahamas foundations are required to have an official seal for use outside of the Bahamas. However, if desired and requested in the foundation charter, a copy of such can be made for use in The Bahamas.

Use of Foundation Name

The name of every Bahamas offshore foundation must be legibly engraved on a seal and printed or mentioned in all documents of trade (promissory notes, cheques, bills of exchange) that are signed by the foundation or on its behalf, as well as on formal publications and advertisements that are published by the foundation. No offshore foundation name shall be used to mislead the public.

Foundation Meetings

Meetings can be scheduled by offshore foundations to be held at any time and location as deemed fit. At least one meeting shall be scheduled for every year, and all officers, founders, council members and respective supervisory bodies must be notified. If not specified in the charter, in accordance with the Foundations Act, Bahamas foundation’s meetings can be called at least 7 days in advance and notifications can be delivered by post, electronic means, fax or hand delivered in person.

Liquidating an Offshore Foundation

Offshore foundations can be liquidated under a number of circumstances. These include whether the foundation was established for a limited amount of time/period, a unanimous decision was taken by the officers of the Bahamas foundation to have the foundation liquidated, if ordered by the Courts to so do, or if the foundation becomes unable to meet its financial obligations. With respect to the passing of a unanimous resolution to liquidate the Bahamas offshore foundation, first, provision for such action, that is, liquidating the offshore foundation by unanimous resolution must exist in the foundation charter.

To ensure that liquidation is carried out as stipulated by the charter, a founder, council member, beneficiary or other supervisory body can be appointed in the charter to act accordingly. Consequently, if for any reason the officers of the Bahamas foundation fail to liquidate the foundation in compliance with the provisions of the foundation charter, any of these members of the offshore foundation may present an order to the court to ensure that the Bahamas foundation is liquidated.

Any decision to wind-up an offshore foundation must be presented to the Court by petition in accordance with the Foundations Act, the regulations established for winding-up in the charter or as decided with a contingent, regular or prospective creditor(s).

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