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Netherlands Foundation (Stichting)
It is one of the most commonly used entities in asset protection structures.
The Stichting has legal personality and is an equity separated from its owners. The Stichting has no shareholders and no members but it can if required issue certificates which provide the owners with entitlement to the economical benefits of the revenues of the Stichting.
The Stichting is not legally regulated but instead leaves great flexibility to the articles adopted by the incorporators of the Stichting. The voting power of the Stichting rests with a board of directors, which is appointed upon incorporation.
An important feature of the Stichting is that it will only become subject to Dutch corporate tax to the extent it actually conducts a business. The term "business" is for this purpose defined as any activity through which the foundation competes with other enterprises; basically every activity which exceeds the level of a portfolio investment is to be considered a business. Hence, only the passive ownership of assets does not constitute a Dutch corporate tax liability.
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