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How to create a Cook Islands Trust in 2023
One of the most successful ways to rescue your acquisitions is to create trust-corp. With offshore trusts, their trustee is increased several times over. In such a case, you will not only secure the possible alienation of your assets, but you can also get certain tax benefits. Therefore, the demand for opening trust companies has recently increased dramatically.
Those wishing to create such a legal entity should decide on the country where such a company will be registered. The countries of Oceania are quite a good option. For example, it is not difficult to create offshore trust in Cook Islands. Here are very loyal laws for this area, because the provision of financial-services is the second most important article of revenue in the local budget after tourism. Therefore, local trust companies are considered to be one of the best tools to safeguard your acquisitions.
Why opening a trust in the Cook Islands is a good decision
Opening a trust company in the Cook Islands is primarily to protect your acquisitions from possible encroachment by creditors and in case of injunctions. The authorities of this small country were among the first in the world to think of legislative mechanisms in this direction.
The first legislation for this area dates back to 1984. The law is still in force today but has been amended in several ways, including the addition of more freedom for residents and other provisions to bring local legislation in line with international norms.
In proliferation to the basic law on the operation of transnational trust-companies, the Islands have also enacted legislation on:
- combating money laundering and the financing of terrorist organizations;
- the operation of a special Financial Supervisory Commission;
- the development of reports for trust companies.
As you can see, from the legal point of view, trust companies in this country are better protected than anywhere else in the world.
Edges of affirming trust in the Cook Islands
Incorporation of a trust-company in Cook Islands has some very nice godsends over registering in other states. For example:
- The legal system in this country is more favorable to the defendant. Local companies are not subject to orders or judgments from other countries. Accordingly, if your case has lost in a court in another countryside, the leads in the Cook Islands will not recognize it. To obtain a trust-company divestiture, the plaintiff will need to come to the islands, present a case and win it under local law. However, the plaintiff must have uncontested facts to prove his or her case;
- Statutes of limitations on claims. Local courts may consider claims against trust assets a year or 2 after the trial. After that, any claims against such assets simply may not be considered by the local-courts. This is serious conservation for the acquisitions of trust-company owners. In other countries this period is much longer;
- Trust companies rescue more than just tangible acquisitions. For local trust companies, the functionality is broader than in other regions. You can include liquid acquisitions (real estate, development, intellectual parcel, and even bank accounts) as trust parcels.
These godsends show that owners of such legal entities should consider the Cook Islands as a place of incorporation when arranging a trust.
Procedure for arranging a trust company
Registering a trust in the Cook Islands is very quick. However, it may involve several steps. The first step is to select trustees, identify them and delegate their roles. To do this, you need to determine the type of trust-company, the number of legatees, and who will be the beneficiary.
After that, it is essential to properly collect and submit to the local-authority the documents for the registration of the trust company. Specifically, you need to provide the following documentation:
- identification documents of the co-founders of the trust;
- trust form;
- documents confirming the existence of assets;
- letters of recommendation from the bank;
- documents confirming the right to trust assets;
- documents confirming insurance of assets;
- wishes letter solvency documents.
In individual cases, supervisory authorities may request additional documentation. If all the documents provided are correct, the trust company will be open.
Who can help with the execution of documents
The opening of such a company should not be attempted on its own. This is the worst decision for the creator of an offshore trust. This is a serious business and it is better to turn to companies that will help you simplify the process.
Our specialists have extensive experience working with the leads of these isles. We understand their requirements and will help you to properly prepare draft documents for quick registration and start functioning of the trust-company in this region. You will realize that you contain not made a mistake in choosing a consulting company.
