Personal Investment Companies

Definition
A personal investment company (offshore corporation) owns assets and marketable securities. Thus as legal owner of assets (any type of investment) it is the recipient of the income produced by all assets. The entity may be an existing corporation or one created specifically for this purpose under the laws of the governing jurisdiction. Mercantil CTC only offers the personal investment company (offshore corporation) as an underlying company for a Trust or Private Foundation.

Advantages of Offshore Corporations
The advantages of a personal investment company (offshore corporation) are similar to an individual offshore trust, differing in one aspect that is crucial to most clients:

• The personal investment company (offshore corporation) deals directly with shares, providing protection and confidentiality on the nature of the assets
• Protection of assets from expropriation in the event of political/economical upheaval in the country of origin of settler
• Tax advantages that cannot be obtained through individual ownership
  

How it Works

• A foreign entity serving as a trustee holds the shares of a foreign corporation (which can be an already existing corporation owned by the settlor or a new entity)
• If the foreign corporation already exists, its ownership is transferred to the Trustee of the newly formed trust in compliance with the laws of the offshore jurisdiction
• The foreign corporation will hold the U.S assets. (which can include deposits in U.S. banks to U.S. stocks and bonds, and real estate)

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