Asset Protection And Probate Avoidance Plan
Many people like the idea of transferring their wealth into a trust but are hesitant to do so simply because, once they've given their wealth away, they can't get it back.
The APPA (Asset Protection and Probate Avoidance plan) is designed to overcome this problem.
Instead of your wealth being in the name of a trust, you put it in the name of a company and you retain exactly the same rights over that wealth that you would do if it remained in your name.
Here are some specific advantages:
- If you hold investments in your own name in several jurisdictions such as Jersey, Gibraltar and the Isle of Man, then theoretically if you die, there must be probate proceedings in all three places.
But if the same investments are held in the name of a company, probate only has to take place where your shares are held i.e. in one place, not three. - If you are a doctor, dentist, auditor or other professional who, because of the nature of your job, may find yourself one day facing a law suit for malpractice or negligence, there are two ways a company can help you:
Firstly, if you suspect that you may be the subject of a law suit, simply put the shares of your Investment Holding Company into a trust. If there is only one lot of shares to be transferred, this can take place very quickly and under tight control. Of course you cannot take such action after you have been sued - that could be construed as fraud. But if you have numerous investments tidily owned by a single investment company, then it becomes a 24 hour job to transfer the investment company's shares into the trust.
Even if you decide you don't want to transfer the investment company's shares into a trust, the very fact that your personal wealth is not held in your own name, puts distance between you and your creditors. It simply makes it that much more difficult for them to pursue their claims; and hence they are more likely to reach an out-of-court settlement.
DON'T EXPOSE YOUR ASSETS TO UNNECESSARY RISK PUT THEM IN THE NAME OF YOUR OWN ASSET
PROTECTION COMPANY!
Asset Protection/Financial Privacy Package
This package is perfectly suited for individuals who are non-Gibraltarian nationals and/or non-residents of Gibraltar who value their financial privacy and are wishing to fine-tune their tax affairs. The package is structured so that the individual can take full advantage of the banking facilities on offer in Gibraltar and at the same time guarantee his financial privacy/anonymity.
The Package consists of:
- A Gibraltar Tax Exempt Company
Capital duty is payable at the rate of 0.5% of the authorised share capital. The minimum duty payable on incorporation is £10. For this reason, a Ready-Made/Shelf Company before Exempt Status, would be incorporated with a minimum Nominal Share Capital of £100, or up to £2,000. It is possible to increase the authorised share capital of the company, or to incorporate a new company with any particular share capital. The company would have in its Memorandum of Association, a primary object clause which would emphasize that it is to act as an Investment Company.
In order to apply for Tax Exempt status for Gibraltar companies, a reference from a Banker, Lawyer or Accountant is required for each of the Beneficial Owners confirming the individual's good character and financial standing. - One Nominee Shareholder
There is a statutory requirement for a minimum of one shareholder and for the details of shareholders to be put on public record. It goes without saying, that a watertight Investment Company for tax purposes, should not have any details pertaining to the private investor on public record. For this reason, we will provide you with a Nominee Shareholder with a view to securing your corporate and financial privacy/anonymity. - A Nominee Shareholders Agreement
Upon taking on the duties of Nominee Shareholder, we would hold your shares on trust in the form of a Nominee Shareholders Agreement or Trust Deed. Our Nominee Shareholders Agreement would serve the purpose of ensuring that your identity as Beneficial Owner(s) is only known to us as your Company Secretary, and not put on public record at the Company's Registry. The basic concept for our Nominee Shareholders Agreement is the same as for any Trust, and it performs precisely the same function. Our Nominee Shareholders Agreement comes together with the provision of a Nominee Shareholder and an original Share Transfer Form signed by the Nominee, but undated, so that you can have the security of being able to transfer the share at any time. - One Corporate Director
There is a statutory requirement for a minimum of one director, but a Company Secretary must also be appointed who cannot also be the Sole Director of the company. The details of directors are also to be put on public record.
Although it is true that Directorship does not necessarily indicate Ownership, by acting as a director of your own company, you could be leaving yourself open to the kind of scrutiny regarding your directorship and/or your relationship with the company which, for tax reasons, you would presumably be hoping to avoid. Therefore, upon opting for our Private Investment Package, we could, if you so wish, supply you with a Corporate Director so that your name does not appear on public record as a director of your company, thereby providing you with an additional level of corporate and financial privacy, together with an undated Letter of Resignation, signed by the Corporate Directors, so that you can replace your Nominee as and when you may feel it is in your best interest to do so. Upon provision of a Corporate Director, we would require you, as Beneficial Owner(s) of the Private Investment Company, to sign a Letter of Indemnity indemnifying our Nominee against all liabilities incurred by him by virtue of being so registered. - The Opening Of A Bank Account
Upon opting for our Asset Protection/Financial Privacy Package, you may take advantage of our experience regarding the different types of accounts and services offered by banks in Gibraltar. Actual management of your corporate account, of course, would be a completely different matter altogether. However, if attending to the maintenance or operation of your bank account proves to be inconvenient due to the infrequency of your visits to Gibraltar, or the large distances involved, we can provide a very basic management service for your account linked to our provision of corporate director services, which could, for example, involve any of the following:
- The transferral of funds from one account to another.
- The balancing of accounts.
- Establishing Standing Order Payments.
- Any other service involved with the maintenance or operation of the bank account.
A summary of the conditions for the opening of your company's bank account would be provided with the service.
Breakdown Of Start-Up And Annual Costs
Start-Up Services
Gibraltar Exempt Company £350.00
Nominee Shareholders Agreement £50.00
Opening Of A Bank Account £250.00Total Start-Up Costs £650.00
Annual Services
Annual Domiciliation Fee £300.00
(Including Services As: Registered Office , Company Secretary , All Other Statutorily Required Services Such As The Filing Of Annual Returns
And The Upkeep Of The Company's Register.)One Nominee Shareholder @ £100 Each £100.00
One Corporate Director @ £300 Each £300.00
Annual Government Fee For Tax Exempt Companies £225.00Total Annual Costs £925.00
* Please note that the prices listed above only apply in the context of the Form-A-Co (Gibraltar) Ltd. Asset Protection/Financial Privacy Package, and should not
be quoted outside of this context.