Establishing a foundation is a crucial step in preserving your assets and managing your wealth across generations. However, choosing the proper foundation structure is vital to get the maximum benefits. Choosing Nevis as the location opens up avenues for a unique structure, a Nevis multiform foundation, or a Nevis foundation. Yes, it’s a hybrid structure that can change form through its tenure, i.e., it can operate as a corporation, trust, or partnership.
Have we piqued your interest? Let’s learn more about it.
What is Nevis Multiform Foundation?
The word multiform is a defining feature of the Nevis Multiform Foundation. According to the Multiform Foundation Ordinance of Nevis, this foundation has the option to operate as a corporation, trust, or partnership. Thus, the chosen multiform determines the functioning of the entity. Aside from this, the law deems it a separate and independent legal entity that can sue and be sued in its own name.
A foundation in Nevis can be established for any purpose, such as charitable, non-charitable, commercial, or non-commercial, with no requirement for a beneficiary.
Requirements for a Multiform Foundation in Nevis
The Nevis Financial Services Regulatory Commission states five requirements that a foundation must meet to be a Nevis multiform foundation:
Nevis-Based Registered Agent
The Multiform Foundation Ordinance requires a registered agent. This agent acts on behalf of the foundation's promoters and subscribers and fulfills all legal formalities.
Nevis Registered Office
The foundation in Nevis must have a registered office space through which all the legal communication can take place.
A Unique Business Name
The name of the Multiform Foundation in Nevis shall end with the word ‘foundation’ or the abbreviation 'FDN'. The name should be unique and must not mislead the audience. A registrar may refuse to register in case the name is found to be misleading and undesirable.
Aside from this, if a multi-form foundation chooses to operate as a trust, it must include the word 'trust’ in its name before the word 'foundation'. Similarly, a corporation multiform foundation must consist of L.C., LLC, L.L.C., or LC (with or without brackets) prior to the word foundation. Moreover, it must add the word 'partnership' before the terms 'foundation' or 'FDN' when used in a partnership multiform foundation.
Management Board and Secretary
The business affairs of this foundation must be managed by the management board, which may consist of one or more persons. Unless the constitution provides otherwise, every member of the management board shall have an equal vote at any proceedings.
Memorandum of Establishment
It is an important document that every multiform foundation must have. It includes the name of the foundation, the address of the registered office in Nevis, the name and address of the promoter or subscriber, the purpose or object of the foundation, a list of assets and property, whether the foundation is revocable or irrevocable, and if revocable, who holds the power.
How to Set Up a Nevis Multiform Foundation?
There are two ways to incorporate a Nevis foundation:
Established by Will
A multiform foundation in Nevis can be established by a duly executed will of the deceased. A foundation established by will must meet the following requirements:
- It must have one subscriber.
- It must appoint a board of management.
- It must appoint a supervisory board.
- It must appoint a secretary.
Voluntary Setup
The following steps must be taken to set up a multiform foundation in Nevis voluntarily:
Prepare Constitution
The first step in registering a foundation in Nevis is preparing the constitutional documents, such as the memorandum of establishment and bylaws. The documents must be in English and meet the statutory requirements.
Fill Out the Form
Duly fill the form for forming a Nevis Foundation. Typically, the form includes the name and registered office address, initial subscription, details of the registered agent, information about the first management board and supervisory board (if any), secretary, and the statement of initial multiform (trust, corporation, or partnership).
Submit the Documents to the Registrar
You must submit the original memorandum, bylaws, and the form to the registrar.
Pay the Prescribed Fees
Once you have submitted, pay the prescribed fees.
Registrar Review
After receiving your application, the registrar will review the form and the accompanying documents. After confirmation, the registrar will allocate a registration number and issue a certificate of establishment stating the name, registration number, date, and initial multiform.
The mutliform foundation in Nevis is an ideal structure that can indulge in commercial activities. Whether you want to protect your assets or invest, this is the perfect structure to meet your multiple requirements. How do I get started? Contact us and begin your trust and foundation formation journey.
