Nevis Multiform Foundations

Often, when discussing Nevis Multiform Foundations, we describe the benefits of the Nevis Multiform Foundation Ordinance of 2004 for asset protection, as well as the advantages and possibilities of these structures.

Nevis Multiform Foundations are becoming increasingly popular among businesspeople worldwide because they are independent and self-sustaining structures. This jurisdiction is a very attractive option for setting up in Nevis, offering strict privacy laws, asset protection, and other benefits such as favorable tax rates. We have a lot of experience assisting people in establishing themselves in Nevis in various ways, and we are here to help. In this article, we will provide more details on the requirements and documents needed to register a multiform Nevis foundation.

So, what exactly is a Nevis Multiform Foundation? The answer is in the name. Multiform foundations registered in Nevis can take any of the following forms very quickly and at any time: an ordinary foundation, a trust foundation, a company foundation, or a partnership foundation. This provides you with flexibility in your operations, among many other benefits. Our expert service can help you establish such a foundation on Nevis, assist you in determining if it’s exactly what you need, and explore other options related to setting up on this beautiful island, such as registering an LLC in Nevis.

Key Takeaways

• A Nevis multiform foundation offers multiple structural options. It may function as either a foundation, trust foundation, company foundation, or partnership foundation.
• The most common reasons people choose this type of foundation are to preserve wealth when moving assets internationally, to plan their estate, to create a succession plan for their businesses, and to hold assets.
• Nevis provides a modern legal environment, strong privacy protections, and flexibility in selecting the appropriate governing structure for your qualifying entity.
• To qualify under the laws of Nevis, you need to have a registered agent, a registered office, a Memorandum of Establishment, board members, and other documents, which may include a copy of each director’s and officer’s passport.
• Professional legal and tax guidance is still required to make sure you comply with all applicable domestic and international filing requirements.

What Is a Nevis Multiform Foundation?

A Nevis multiform foundation is an all-inclusive type of legal structure created by the Nevis Multiform Foundation Ordinance 2004. The Nevis Multiform Foundation will have the flexibility to include the features of corporations, companies, trusts, foundations, and partnerships at any point in time during its life. This ability to change legal forms allows the Nevis Multiform Foundation to grow with the needs of the owners of the company, including but not limited to changes in ownership, succession planning, and future goals related to their business.

The Nevis Multiform Foundation can include any type of assets, such as investments, stock in private businesses, patents and trademarks, real property (as permitted by law), etc.

Requirements for establishing Nevis Multiform Foundations

The list of requirements for setting up a Nevis Foundation includes having:

1. A board of directors and a secretary.
2. A registered agent in Nevis.
3. A registered office in Nevis.
4. A memorandum of establishment.
5. An appropriate name.

When creating a Nevis Multiform Foundation, you can:

• Use the standard set of bylaw documents or develop your own.
• Appoint a supervisory board or protector.
• Decide whether to publish bylaws and board data or not.
• Choose how you will subscribe to assets or property and for what amount.
• Choose legislation.
• Choose the beneficiary rights.
• Choose the multiform type.

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Check the list of required documents, and get the details of the process, terms, and costs.

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Continuation, transformation, conversion, consolidation, and merger

A Nevis Multiform Foundation is a very flexible tool available to you. A Nevis Foundation can operate both on the island and off the island. It also allows for:

• Continuation: A foundation from a foreign jurisdiction can continue its activities on the island of Nevis already as a multiform foundation.
• Transformation: Any organization outside the island jurisdiction can transform into a Nevis Foundation. For example, a trust in Jersey could be converted into a multiform foundation in Nevis.
• Conversion: An existing Nevis entity can be converted into a Nevis Multiform Foundation.
• Consolidation or merger: Any two or more organizations may merge to form a Nevis Multiform Foundation.

Documents required for registration of a Nevis Multiform Foundation

If you’re interested in establishing a Nevis Multiform Foundation, our team can help you navigate the process and support you at every step. If you allow us to help you, we will ensure that all documentation and compliance requirements are met and that the process goes as smoothly as possible. While the process is more straightforward than in many countries, certain requirements can still cause delays. However, here is an overview of the documentation requirements to get started.

Application form

An application for registering a Nevis multiform foundation must contain the foundation’s name, which must end with ‘FND’ or ‘Foundation,’ and the details of the beneficiaries, managers, secretary, and members of the supervisory board (if applicable).

If a multiform foundation has taken the form of a Nevis trust foundation, it is required to have beneficiaries and contain the word “trust” in its name. The beneficiaries’ names will not be made public unless you indicate otherwise.

To create a revocable foundation, you need to specify who has the right to revoke it and under what circumstances in the application form.

A Nevis Multiform Foundation and its beneficiaries are exempt from income and capital gains taxes, provided that the foundation’s founder, beneficiaries, property, assets, and contributions originate from outside the island of Nevis. A Nevis foundation can become a tax resident of this jurisdiction and pay taxes at a maximum rate of 1%. In this case, it is necessary to submit a tax return to the registrar annually. The tax is calculated on undistributed accumulated net profit. If you want to create a foundation as a Nevis tax resident, this must also be indicated on the application form.

Consent schedule

In this schedule, it is necessary to indicate the data of the secretary and board members, as well as the supervisory board (if it exists). All of these persons must be of legal age. The signatories of the consent schedule agree to act in the foundation, either as a secretary, a board member, or a supervisory board member.

Memorandum of establishment

The Foundation Memorandum of Establishment contains the following points:

• The Multiform Foundation name.
• The registered address of the Multiform Foundation in Nevis (registered agent address).
• That the main purpose and objectives of the Multiform Foundation are to obtain benefits for the beneficiaries mentioned in the statutory documents, or, in the event of the beneficiaries’ refusal, the purpose and objectives prescribed for Nevis Multiform Foundations by the law.
• The available multiform types (this information will be made public): ordinary, trust, company, or partnership foundation.
• The validity term: long-term or short-term.
• Whether it is a revocable or irrevocable Multiform Foundation.
• The legislation to which the Multiform Foundation will be subject.
• By-laws:

The requirements for filing information with the Register apply only to the foundation’s name, the chosen multiform type, the copy of the bylaws, and the registered office name. Bylaws will be protected until otherwise specified.

Typically, standard regulations are used, but founders may choose a law other than the Nevis Multiform Foundation Ordinance 2004 (MFO) to manage the entire business or a part of it. Therefore, at the registration stage, we will ask you to decide whether you want to subordinate the Nevis Multiform Foundation Ordinance completely. If you wish to choose a different law, you will be required to state the jurisdiction and the name of the law and indicate the foundational part that will be subject to the other jurisdiction’s law.

Applications

Appropriate applications are submitted if it is necessary to reorganize the Nevis foundation, change the multiform, the name, the secretary, the registered agent, etc.

Timing for registering a Nevis Multiform Foundation

Upon receipt of all required documentation and the original consent schedule, your Nevis Multiform Foundation will be registered within 10-15 days.

The principal member of the board may be a professional provided by the registered agent in Nevis. In this case, all registration documents will be signed on the island, and the foundation will be established more quickly, as there is no need to wait for the original documents. As soon as the Nevis Multiform Foundation is registered, the professional board member will resign their position in favor of the person(s) you specify. A board member can be either an individual or a legal entity (Nevis professional services). At least one board member is required.

Nevis Multiform Foundation vs Traditional Trust

While each of these types of entities is typically used to protect wealth, plan estates, and safeguard assets, they are not interchangeable. A traditional trust imposes a legally defined fiduciary obligation on the trustee to hold property for the benefit of named beneficiaries. In contrast, a Nevis multiform foundation is an independent legal entity that has the right to hold title to assets. Therefore, depending upon what you want to achieve with your objective, one type of entity may be better suited than the other.

One of the primary differences between a traditional trust and a Nevis multiform foundation is their flexibility. The Nevis multiform foundation can be converted into various legal forms (e.g., trust foundations, company foundations, partnership foundations, and ordinary foundations) without creating a new legal entity. This allows the Nevis multiform foundation to grow and develop along with your evolving business, investments, or succession plans. Regardless of whether you decide to use a traditional trust or a Nevis multiform foundation, there will always be unique aspects to your legal, tax, and estate planning situation that should be reviewed with a qualified attorney prior to making this decision.

Why Choose Nevis for a Multiform Foundation?

Nevis is becoming an increasingly popular jurisdiction for multiform foundations because it offers both a modern legislative system that protects assets internationally and a flexible set of laws governing foundations. The laws allow investors to be able to create a clear distinction between who owns (legally) the investment and who benefits from it and provide the investor with considerable flexibility as regards how they plan to manage their investments or transfer them after death.

There are several additional reasons why investors may prefer a multiform foundation in Nevis, including:

• Privacy protections for both founders and beneficiaries of the multiform foundation;
• The ability to select a variety of methods by which the multiform foundation will operate;
• Founders can convert their multiform foundation to another type of structure without having to establish a new entity;
• Neither income nor capital gains generated by a non-resident multiform foundation qualify for taxation in Nevis;
• Multiform foundations established in Nevis can be registered quickly;
• And that the laws governing multiform foundations are recognized universally.

Potential Nevis Multiform Foundation’s Limitations to Consider

Although Nevis Multiform Foundations have much to offer in terms of flexibility, it is not a viable option for all circumstances. The establishment and maintenance of an offshore foundation include continuing compliance obligations, professional service charges, and possibly tax reporting obligations in your home country. In addition, depending upon the taxing authority of the founder(s) or beneficiary(ies), there may be other reporting obligations arising from international transparency initiatives, including but not limited to the OECD’s CRS initiative or domestic foreign asset reporting legislation.

Professional legal and tax advice (for example, of Q Wealth) is therefore essential before establishing any offshore structure.

Conclusion

Need a structure that fits your goals and circumstances?

Your goals for an offshore structure, where you reside for income tax purposes, family status, and your succession plan, will determine which offshore structure is best suited to your needs. The Nevis multi-form foundation provides significant flexibility in international asset holding and estate planning; however, it must be used as part of a comprehensive legal and tax plan.

We are here to assist you in deciding if the establishment of a Nevis multi-form foundation is suitable to your situation, to provide information about the process of registering a foundation in Nevis, and to coordinate all aspects of forming a Nevis multi-form foundation through experienced Q Wealth professionals.

Frequently Asked Questions