Anguilla Foundations

Anguilla Foundations are enacted under the Anguilla Foundation Act of 2008, recent legislation in terms of enactment, but the concept of the foundations is centuries old. The Anguilla foundation integrates age old principles of the foundation and applies “offshore” characteristics. As such, Anguilla foundations benefit from – tax exemptions; easy and flexible set up (with minimal requirements), easy administration, enhanced privacy and confidentiality. These are the key characteristics of offshore jurisdictions such as Anguilla. As such the Anguilla foundation is particularly attractive to investors who wish to take advantage of “offshore” features and have the functionality of a foundation.

Foundation have a broad range of uses, in that they are a legal entity that can enter into contracts, own property, invest and open bank accounts. Mainly, offshore foundations are used to hold and manage assets, for family or business purposes or used for philanthropic/charitable purposes among others. Anguilla foundations can be ordinary, charitable or non-charitable foundations and regardless of the use and purpose, they are all 100% tax free. Any and all revenue generated by the foundation (regardless of the foundations purpose, i.e. non-charitable, charitable or ordinary purposes) is tax free. This income cannot be raised, sourced or generated in Anguilla, nor can the Anguilla foundation have any profit making business interest in Anguilla.

The main parts of the foundation are:

  1. The founder or creator of the Foundation; can be one or more persons, can be a group of people, can be a corporate entity;
  2. The foundation council, this is the management body of the foundations (a minimum of one member required, which means a foundation can be set up with just one member, in Anguilla agents provide council member services, which means you can have a foundation under which your are not named in any documentation, but you ultimately retain full control of the foundation;
  3. The beneficiaries, the ultimate beneficial owners of the assets. The beneficiary can be named (can be the founder) or identified by a class or a relationship. This information is private;
  4. The Declaration of Establishment (DOE) is the official documents establishing the foundation. It will contain the name of the foundation, the founder details, initial endowment values (since assets can be added during the life of the foundations) name of other officers and other stipulations. The DOE is NOT a public document;
  5. All Anguilla Foundations must have a registered Anguilla agent and a registered Anguilla office (this is a service provided by the agent);

Optional components of Anguilla Foundations:

  1. By- Laws, a separate set of laws, rules or regulations that pertain to more specific management and administrative details of the foundation;
  2. A secretary is required only if – no one on the council members is an Anguilla resident. This is a service generally provided by the agent, and the secretary cannot be the only member of the council;
  3. A guardian – this is a person who appointed by the founder whose roles and powers are set by founder, and can be considered the watch dog of the foundation;

Anguilla foundations can own assets such as companies and can provide key asset protection. If you set up an offshore company in which you are the beneficial owner of the company, but the directors listed are nominee directors (you have control, but your name not on documentation) you may then transfer the shares (ownership) of that company to the foundation; at this point the foundation (of which you are a beneficiary) is the legal owner of that company; you use the company for profit making business activity, so as the profits of the company grows, the assets of the foundation grows, in a tax free entity; if there are any claims/settlements against you (individual) the assets in that offshore foundation cannot be included in any settlement as

  • They do not legally belong to you
  • Cannot be directly traced to you

Under Anguilla Offshore Foundation law, disclosure of private and confidential information pertaining to the establishment, the administration, the management and the maintenance of the foundations is forbidden, and any one or company breaching this law is subject to stiff fines and the possibility of imprisonment.

Once your Anguilla foundations is set up, you will receive ad certificate of Establishment indicating the formal registration of the entity, the date of establishment and the foundation registration number.

Restrictions: Anguilla foundations cannot conduct any business in Anguilla nor have any part of the foundation assets in Anguilla property.