Cook Islands Foundations – Frequently Asked Questions
What is a Cook Islands Foundation?
A Cook Islands Foundation is a civil law style entity established under the Foundations Act 2012. It combines features of both trusts and companies:
- Like a trust, it separates assets from the founder’s personal estate.
- Like a company, it has legal personality and can enter contracts in its own name.
Foundations are increasingly popular for asset protection, succession planning, philanthropy, and wealth structuring.
Why establish a Cook Islands Foundation?
Key benefits include:
- Legal personality – the Foundation itself, not its members, owns the assets.
- Strong asset protection – foreign judgments are not enforceable in Cook Islands courts.
- Perpetual succession – Foundations can last indefinitely, making them ideal for intergenerational planning.
- Control options – founders can retain oversight through a Council, a Guardian, or reserved rights.
- Flexibility – Foundations can be used for private wealth, charitable purposes, or both.
How does a Cook Islands Foundation differ from a Trust?
While both are asset protection tools, key differences are:
- A Trust is a legal relationship; assets are held by a trustee for beneficiaries.
- A Foundation is a separate legal entity, similar to a company, but without shareholders.
- Foundations are often preferred by clients from civil law jurisdictions who may not be as familiar with common law trusts.
Who can establish a Cook Islands Foundation?
Any individual or legal entity may establish a Foundation. Common users include:
- Families seeking succession planning across generations.
- Philanthropists establishing charitable or hybrid foundations.
- Entrepreneurs and investors looking for international asset protection.
- Clients from civil law countries preferring a familiar structure to a trust.
What assets can a Cook Islands Foundation hold?
A Foundation may own a wide range of assets, including:
- Investment portfolios and bank accounts.
- Real estate and private companies.
- Intellectual property rights.
- Insurance policies and annuities.
- Family businesses or operating entities.
How is a Cook Islands Foundation managed?
A Foundation is governed by its Charter or Rules, which are private documents. Management typically involves:
- A Council – responsible for day-to-day administration.
- A Enforcer – oversees the Council and ensures the Founder’s intent is respected.
- The Founder – who may reserve certain powers, depending on the Foundation’s design.
Are Cook Islands Foundations legal?
Yes. Foundations are fully recognized under the Cook Islands Foundations Act and widely accepted internationally. They are lawful tools for estate planning, philanthropy, and wealth protection when established correctly.
What taxes apply to a Cook Islands Foundation?
The Cook Islands does not levy income, capital gains, inheritance, or estate taxes on Foundations conducting business outside the Cook Islands. However:
- Founders and beneficiaries must comply with tax laws in their own jurisdictions.
- International reporting standards such as CRS and FATCA may apply.
Independent tax advice is recommended before establishing a Foundation.
How private is a Cook Islands Foundation?
Privacy protections are strong:
- While a Foundation must be registered, only limited information is filed with the Registrar.
- The Charter and Bylaws are not public documents.
- Details of the Founder, beneficiaries, and Guardian remain confidential.
How does a Cook Islands Foundation compare to other jurisdictions?
Cook Islands Foundations offer several advantages:
- One of the strongest asset protection frameworks globally.
- Independence from foreign court judgments.
- Flexible structuring options for family, business, and charitable purposes.
- Ability to operate indefinitely without succession concerns.
- Clear legislation supported by a stable legal system.
Why combine a Foundation with a Cook Islands Trust or LLC?
Many clients use a multi-layered structure:
- The Foundation serves as the top-level holding entity.
- An LLC manages underlying assets and operations.
- A Trust can provide an additional discretionary layer for distributions.
This combination maximizes asset protection and estate planning flexibility.
Why Choose Ora Partners for Your Cook Islands Foundation?
As a licensed trustee and fiduciary services provider, Ora Partners delivers more than registration — we provide a full suite of services to ensure your Foundation is effective, compliant, and aligned with your long-term goals.
Our strengths include:
- Specialised expertise — Decades of experience in establishing and registering Cook Islands Foundations, with a deep understanding of how to tailor constitutional documents to client needs.
- End-to-end administration — We provide ongoing management, and compliance oversight, ensuring your Foundation continues to meet regulatory requirements while serving its intended purpose.
- Tailored structuring — Whether for estate planning, business succession, or philanthropic initiatives, we build frameworks that reflect your objectives and values.
- Discretion and professionalism — Client confidentiality is safeguarded at every step, supported by one of the world’s most respected offshore regulatory environments.
- Local presence, global perspective — With a long-standing base in the Cook Islands and experience working with families and advisors worldwide, we bring both jurisdictional strength and international coordination.
At Ora Partners, a Foundation is never just a document — it is a flexible, future-proofed structure designed to protect assets, preserve legacy, and advance your objectives with confidence.
Contact Ora Partners today to learn more about establishing a Cook Islands Foundation.