Copyright 2008 All Rights Reserved By Pamir

By By
Jason A. Blatt Jason A. Blatt
Pamir Law Group Pamir Law Group
jblatt@pamirlaw.com jblatt@pamirlaw.com
Curacao Private Foundation
Curacao Private Foundation
Old Chinese Saying:
Wealth Cannot Last Three Generations
But in the West, Wealth Often
Lasts Many Generations
Rothschilds, Rockefellers, DuPonts
Wealth Is Institutionalized and
Professionally Managed
Intelligent Use of Offshore Structures
Private Bankers and Advisers Help Families
Establish Financial Dynasties
Legal Preservation of Assets and Investments
Tax Planning
Transfer Ownership of Assets and Investments Into
Offshore Vehicle
Use a Vehicle Reducing Tax Burden on Persons
Receiving Distributions
Generation-Skipping Considerations
Protection Against Creditors
Important Objectives
Important Objectives
Protect Privacy
Choose a Vehicle Ensuring Confidentiality
Flexible Structure That Can Evolve, Change
According to Changing Needs
Family Realities
Project Realities
Business Realities
Protect Privacy
Choose a Vehicle Ensuring Confidentiality
Important Objectives
Important Objectives
Structure That Separates, Yet Controls Different
Projects
Different Projects Kept Separate to Reduce Risk
Financial Problems Within One Project Will Not Affect
Other
Different Projects Kept Separate for Different
Beneficiaries
Important Objectives
Important Objectives
Estate Planning
Use a Vehicle Enabling Orderly and Quick Transfer
of Assets to Beneficiaries
Vehicles Flexibility Important:
Investor Needs to Retain Full Control
Add or Remove Assets at Any Time
Add or Remove Beneficiaries at Any Time
What Kind of Vehicle Can Achieve
All of These Objectives?
The Curacao Private Foundation
Curacao is a Tax Haven and Financial
Services Center Based In the Southern
Caribbean Sea
As Part of the Netherlands Antilles, Curacao
Is European
Curacaos Financial Services Sector Performs
the Same Function That Hong Kong Performs
in Asia
Where is Curacao?
Where is Curacao?
Where is Curacao?
Where is Curacao?
A Separate Legal Entity
A Hybrid of a Company and a Trust
Holds Assets Under Foundations Name
Based in Curacao, Netherlands Antilles A
Stable Tax Haven and Financial Services
Center
What Is a Private Foundation?
What Is a Private Foundation?
Confidentiality
Control
Flexibility
Low Cost
Key Advantages of Private Foundation
Key Advantages of Private Foundation
Private Foundation vs. BVI Company
Foundation Separates Different Business Interests
Different Projects, Interests Not Mixed Together: This
Reduces
Convenience of Management
If Founder Does 20-30 Projects Over a Lifetime, One
Private Foundation Can Accommodate Them All
Under BVI Company Structure, Each Project Would
Have to be Organized Under a Different BVI Company
Private Foundation vs. Traditional Vehicles
Private Foundation vs. Traditional Vehicles
BVI is the Most Popular Site of Offshore Companies
Serving Asian Businesses
BVI Starting to be Abused
No Longer Low-Profile
US, OECD Countries Increasing Pressure on BVI to
Share Corporate Records
Risk of Losing Confidentiality in BVI Companies
Degree of Suspicion Involving BVI Companies Among
US, OECD Countries
Curacao Enjoys a Much Lower Profile Than BVI
A Part of the Netherlands, European Union
Much Smaller Scale of Asian Business Presence in Curacao
Hong Kong Has Tax Treaty Benefits With China
Ideal For China-Related Businesses
But Inherent Risk of Chinese Government Examining
Corporate Records
Solution:
Curacao Private Foundation Owns Hong Kong
Companies Doing China-Related Business
Companies Not Doing China Related Business Not
Registered in Hong Kong, Kept Separate Under
Curacao Private Foundation
Private Foundation vs. Hong Kong Company
Private Foundation vs. Hong Kong Company
Operation of Private Foundation Highly Similar
to a Trust
Legal System in Curacao Provides More
Protections For Founders
Private Foundation is Multi-Generational, No Limit on
Duration
Private Foundation is More Flexible
Founder Retains Full Control
Founder May Add, Remove Assets and Beneficiaries At
Any Time
No Taxes on Private Foundations in Curacao
Private Foundation vs. Trust
Private Foundation vs. Trust
Ensure Founders Confidentiality
Minimize Taxes on Assets and Investments
Protect Assets and Investments From Creditors
Manage Assets and Investments
Defer Income
Preserve Family Assets Over Multiple Generations
Make Distributions to Beneficiaries Like a Trust
Orderly and Quick Distribution of Assets to
Beneficiaries Upon Founders Passing
What Can Private Foundations Do?
What Can Private Foundations Do?
Founders Identity Kept Private
Foundation Opened and Registered in Curacao
Attorneys Name, Not Founders Name
Curacao Attorney Doesnt Even Know Founders
Name
Founder May List Self as Beneficiary But List of
Beneficiaries Not Public
Founders Name Separated From Ownership of
Assets
Assets Are Owned by the Foundation, Not the Founder
Confidentiality
Confidentiality
Founders Identity Protected Behind Foundation
Structure Layers
Attorney-Client Privilege No. 1 Between Founder and
Pamir Law Group
Attorney-Client Privilege No. 2 Between Pamir Law
Group and Curacao Attorney
Curacao Management Company Listed As
Foundations Director
Management Companys Address Listed as
Foundations Address
Confidentiality
Confidentiality
Founder
Pamir Law Group
Attorney-Client
Privilege
Curacao Attorney
Curacao Management Company
Curacao Private Foundation
Attorney-Client
Privilege
Anonymity
The Outside World Sees This:
What Information Is Made Public?
What Information Is Made Public?
Name of Foundation
Date Foundation Established and
Registered
Management Companys Address
in Curacao
Management Companys Name
Listed as Director
Curacao Foundations Register
Structure of the Private Foundation:
How Does The Private Foundation Work?
How Does The Private Foundation Work?
Investment and
Holding
Companies
Holding Tradable
or Non-Tradable
Securities
Asset Protection Deferral of Income Estate Planning
Board of Directors:
Manages Foundation
(Optional) Supervisory Board:
Controls and Supervises Board of Directors
Founder
Distributions: Made as Instructed by
Letter of Wishes and Letters of Instruction
Appoints/Dismisses
Appoints/Dismisses
Protector: Appoints, Dismisses and
Instructs Board of Directors and
Supervisory Board on Behalf of Founder
Holds Assets Directly,
or Through Other Entities
Holding Land
Letter of Wishes:
Sets structure,
functions, powers, assets and
beneficiaries.
Founder may modify at any time.
Beneficiaries
Private Foundation:
Investment Vehicle
Roles of Pamir Law Group, Curacao Attorney and Curacao
Management Company:
Protector
(Pamir Law Group)
Board of Directors
Carries Out Founders Wishes
Law Office
(in Curaao)
Carries Out Founders Wishes
Appoints Board of Directors, (optional) Board of Supervisors
Based on Letter of Wishes or Letters of Instruction
Founder
Retains Power to Appoint or Dismiss
Layer 1 of Attorney-Client Privilege
Layer 2 of Attorney-Client Privilege
No Public Records of
Connection Between
Founder and Private
Foundation
Founders Identity
Remains Confidential
Under Attorney-Client
Privilege
Protectors Identity Also
Remains Confidential
Investment and
Holding
Companies
Holding Tradable
or Non-Tradable
Securities
Asset Protection Deferral of Income Estate Planning Holding Land
Private Foundation
(Investment Vehicle)
Tax Benefits
Tax Benefits
Income Deferred Into Foundation Not Taxable as
Personal Income
Curacao Does Not Tax Foundations on Income,
Dividends or Payouts to Private Foundations
From Assets and Investments
Control
Control
Founder Retains Control Over Foundation
Through Pamir Law Group
Founder Signs Contract With Pamir Law Group
Pamir Controls Foundation, But May Only Act Upon
Written Letter of Instruction From Founder
Curacao Management Company May Only Act Upon
Written Instructions From Pamir Law Group
Founder May Add, Remove Assets At Any Time
Founder May Add, Remove Beneficiaries At Any
Time
Flexibility
Flexibility
What Kinds of Assets Can Private Foundation Hold?
No Limit:
Cash in Foreign or Local Bank Accounts
Certificates of Deposit
Interest-Bearing Claims of Any Denomination
Real Property
Intangible Property
Shares (Tradable and Private)
Beneficiary Interests
Example: Right to Receive Dividends
Different Assets Kept Separate:
Different Projects Kept Separate
Private Foundation Controls Entire Basket of Projects
Yet Projects Separated to Reduce Financial Risk
Different Beneficiaries For Different Projects
What to Do With Existing Offshore Companies?
Ownership Can Be Transferred to Private
Foundation
No Need to Change Offshore Companies Structure,
Simply Make Foundation the Owner
Who Would Benefit From Using a Private
Who Would Benefit From Using a Private
Foundation?
Foundation?
Persons Seeking to Manage Taxes
Persons Wanting to Consolidate Holdings Under
Single, Flexible Umbrella
Persons Wanting to Ensure Confidentiality
Persons Who Want a Discreet, Reliable Way to
Provide For Loved Ones
Persons Seeking a Vehicle For Retirement
Persons Seeking a Vehicle For Estate Planning
An International
An International
-
-
Style Law Firm and Business
Style Law Firm and Business
Consulting Firm Based in Greater China:
Consulting Firm Based in Greater China:
Taipei
Shanghai
Beijing
Provide Strategic Insights and Implement Practical
Provide Strategic Insights and Implement Practical
Legal and Business Solutions in Greater China
Legal and Business Solutions in Greater China
Thirty
Thirty
-
-
Year Track Record of Successfully Closing
Year Track Record of Successfully Closing
Transactions In a Broad Range of Industries In the PRC
Transactions In a Broad Range of Industries In the PRC
and Taiwan
and Taiwan
PAMIR Law Group
PAMIR Law Group
2004-2008
Direct Investment
Due Diligence Services
Portal
Project
In-House
Counsel Support
Network
Global
Network
Legal
Services
Government
Relations and
Law Reform
Legal
Partner
Matching
Services
Trade
Finance
Services
for Taiwan
Companies
in China
Fourth Link:
Cross Straits
Investment
and Trade
The China
Forum
Online
Speakers
Event
Management
Conferences
and Seminars
CXO
Learning
Journeys
Strategic
Market Entry/
Expansion Studies,
Plans and
Implementation
Global
Reach
CXO
Business
Consultancy
Services
PAMIR Law Group
Taipei-Shanghai-Beijing
PAMIR Law Group Is a Member Of the PAMIR Law Group Is a Member Of the Renaissance Renaissance
Network Of Co Network Of Co- -Counsel Spanning 20 Cities In China: Counsel Spanning 20 Cities In China:
Zhengzhou Zhengzhou Yantai Yantai Xiamen Xiamen Wuhan Wuhan Tianjin Tianjin
Taiyuan Taiyuan Wenzhou Wenzhou Suzhou Suzhou Shijiazhuang Shijiazhuang Shenzhen Shenzhen
Shanghai Shanghai Qingdao Qingdao Ningbo Ningbo Nanjing Nanjing
Haikou Haikou
Guangzhou Guangzhou Fuzhou Fuzhou Dalian Dalian Chengdu Chengdu Beijing Beijing
2004-2008
How To Obtain More Information?
How To Obtain More Information?
Contact Jason Blatt at Pamir Law Group:
jblatt@pamirlaw.com
Tel: (+886) 2-2531-5816, ext. 724
Contact Alexa Chiang at Pamir Law Group Shanghai Office:
achiang@pamirlaw.com
Tel: (21) 5256-9933, ext. 331/332