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25 October 2018
Foundation companies are a unique structuring option in the Cayman Islands for wealth planning and also serve as holding and special purpose vehicles for commercial transactions and cryptocurrency offerings.
Although a foundation company may be used as an alternative to a Cayman trust, a number of features specific to Cayman trust law have been incorporated into the foundation company vehicle which should prove beneficial to investors and private clients.
Foundation companies may be an attractive alternative to trusts, particularly those in civil law jurisdictions where the tax treatment of trusts is a concern. Clients from common law jurisdictions may also be attracted to a foundation company for holding higher-risk assets (eg, shares in family businesses).
The combination of traditional and innovative features in foundation companies means that the Cayman Islands has introduced a flexible vehicle that is a valuable addition to all sectors of the financial services industry.
The following aspects of foundation companies are worth noting:
For further information on this topic please contact Anthony Partridge, Giorgio Subiotto or Fraser Allister at Ogier by telephone (+1 345 949 9876) or email (firstname.lastname@example.org, email@example.com or firstname.lastname@example.org). The Ogier website can be accessed at www.ogier.com.
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