Saint Kitts and Nevis became a synonym of asset protection. Everyone mildly familiarized with international business and finance knows that the Nevis trust is a privileged asset protection structure. Moreover, during these troubling times of statism and economic instability, more and more people are considering it.

What do the extremely wealthy have that those small middle-class businesspeople don’t have? Basically, tools to protect their assets. The world has told the middle class two lies: 1) That offshore structures are shady and illegal and 2) that only the wealthy can afford them. That’s not true, and Nevis proves it. In this article, we spoke about the Nevis trust, but here we come to show you an even more flexible structure to protect your assets in the offshore Caribbean paradise par excellence, Nevis.

Of course, we’re talking about Nevis’s foundations and, more specifically, the multi-form foundation. What does this mean? Simply, it is a structure that can take up different forms at different times and offers rock-solid asset protection. Thus, it is more flexible than a regular foundation and a trust while it offers the same level of asset protection.

We need a structure that can protect us from any possible threat to the assets, including creditors, bankruptcy officials, ex-spouses, and especially governments. Both the trust and the foundation in Nevis enjoy a high level of protection under the country´s legislation and this section is specially dedicated to the peculiar structure called a multiform foundation. 

Why Establish a Multi-Form Foundation in Nevis? 

- Foundations don’t pay taxes in St. Kitts and Nevis.

- The ownership of the property is separate from the owner. For example, if you put a house, stocks, or a bank account under a foundation and are sued by a creditor, they cannot take those assets away from you because they are not yours but the foundation's.

- Nevis has a common-law system with plenty of jurisprudence in asset protection, meaning that everything you put in a Nevis multi-form foundation is nearly untouchable. Say goodbye to angry creditors and bitter ex-spouses; your money is safe.

- Foreign judgments against foundations are not recognized in St. Kitts and Nevis.

- There is no other Foundation product like St. Kitts and Nevis Multiform Foundation. The flexibility of a Multiform Foundation provides founders with a wide-ranging scope on which to base their structure. Our experts offer clients a unique discounted package to easily register a Nevis Multiform Foundation. You can find all the information here.

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Set up a Multiform Foundation

The Foundation 

St. Kitts and Nevis is known for being one of the leading jurisdictions in registering a private foundation. Why? Because it is safe and secure, has a beneficial tax system, and offers prime asset protection. 

Besides this, it maintains the stability of the Eastern Caribbean Dollar (EC$), which is the national currency of most eastern Caribbean countries and is tied to the US Dollar. Also, St. Kitts and Nevis has a well-functioning democracy based on the British parliamentary system.

If you want to incorporate a private offshore foundation, St. Kitts and Nevis is a great option to consider.

Reasons to Establish a Private Foundation in St. Kitts and Nevis

Registering a private foundation in the Caribbean location of St. Kitts and Nevis has plenty of advantages. Specifically, an offshore foundation can become a useful tool for those looking to restructure their personal or corporate assets or to reduce the unnecessary tax burden when passing on assets to their family or business associates. Therefore, an overseas foundation combines some of the benefits of a charitable trust with those of a company. This can be a helpful and effective way to manage your estate.

Privacy is guaranteed: In general, it must be highlighted that you will have guaranteed confidentiality and privacy if you open your Foundation in this country. It is guaranteed in the St. Kitts and Nevis Confidentiality Act of 1985.

No requirement of a specific owner: This is one of the most important reasons for opening a foundation in St. Kitts and Nevis. Clients have no specific owner requirements since the assets registered with the Foundation are in a legal identity separate from the founder’s assets. With this option, the assets you put under the foundation are protected against creditors in case you may face a legal suit.

No taxes: Foundations in St. Kitts and Nevis are exempt from all taxes. This is one of its main perks for foreigners since it can be run from overseas and structured in several different ways. 

Not being subject to foreign judgments or laws: In St. Kitts and Nevis, the legal framework is built to be business-friendly, and they also welcome offshore foundations. When all requirements are met and a memorandum of establishment is submitted, the Foundation is free to engage in commercial activities worldwide. However, St. Kitts and Nevis foundations are not permitted to conduct business activities or trade regularly but can obtain earnings from sales, investments, and deposits. 

An entity incorporated overseas can be transformed into a St. Kitts and Nevis Foundation. Also, you can convert an existing Nevis entity into a Foundation; and any two or more entities from outside or within the country can merge into a national multiform Foundation.

Private Foundations in St. Kitts and Nevis

Unlike an offshore trust, a private foundation is not tied to an individual owner. As a result, foundations can offer much more security and privacy for the investor and allow for the long-term holding of safe assets and finances.

A private foundation in St. Kitts and Nevis, in a legal sense, has no owner; this is beneficial to many players. Consequently, it has assets not owned by any person but the entity itself. If you decide to use this entity, the property is separate from the owner, and no one can take the assets away. For instance, if you put a house, stocks, or a bank account under a foundation and you are sued by a creditor, they cannot take those assets away from you because they are not yours, but they belong to the foundation.

In other words, this means private foundations startups are an excellent way of storing assets overseas. In addition to this, a private foundation can be used for charities, pension funds, trusts, and several other purposes.

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What´s the Difference Between an Offshore Foundation and a Trust?

A private foundation in St. Kitts and Nevis may require more proactive maintenance than a trust. Within the first two or three months of formation, the board must have a meeting. To properly comply with the law in the country, the people required for the two annual meetings are a founding member, the secretary, a registered agent, and the board of management.

However, legally speaking, the secretary cannot be the sole member of the management board. These meetings do not have to take place in the country, but it is required that all members are present, whether physically or through a conference call. Besides this, the Foundation should keep track of records, accounts, and minutes. This is a legal requirement and must be adhered to. It is not required that a St. Kitts and Nevis foundation files yearly tax reports, keeping the Foundation private and secure. Finally, unlike a trust, a foundation can open bank accounts, enter into contracts, own property, among other activities.

Establishing a Foundation in St. Kitts and Nevis

You need to fulfill some legal requirements to set up a private foundation in St. Kitts and Nevis: 

- Although one individual can create a foundation, a secretary, management board, and registered agent must also be named. 

- The Foundation must also convene two meetings every year, minutes must be kept of these meetings, and all accounts, minutes and records must be kept.

Besides this, the Foundation’s name must end in “Foundation” or “FDN”, or the equivalent in another accepted language. If it is a multipurpose foundation, it should be indicated in its name, e.g., Company Foundation, Trust Foundation, Partnership.

In St. Kitts and Nevis, the Foundation will need to be renewed every year, and the annual filing of accounts and foundation activities should take place. Besides this, the memorandum of establishment and the by-laws of the foundation sent to the Registrar must be in English.

What About Multiform Foundations in St. Kitts and Nevis?

There is no other Foundation product like the Nevis Multiform Foundation. The St. Kitts and Nevis Multiform Foundation is a legal entity shell into which a subscriber can self-design the Foundation’s form, subject to given rules that define it. 

Each St. Kitts and Nevis Foundation will have a stated "multiform,” which means that the Foundation’s constitution will state how it is to be treated whether as a trust, a company, a partnership, or an ordinary foundation. Through the "multiform" concept, the Foundation’s stated identity can be changed during its lifetime. Thus, this allows greater flexibility in its use and application. 

The St. Kitts and Nevis Multiform Foundation Ordinance (2004) provides for entities to be converted or transformed, continued, or consolidated or merged into a Nevis Multiform Foundation. This characteristic will make the St. Kitts and Nevis Multiform Foundations Ordinance an attractive asset protection vehicle. Even though the Nevis Multiform Foundation is governed by the Nevis Multiform Foundations Ordinance 2004 (MFO), also it may be governed by foreign law either completely or partly.

If you think this is an idea that perfectly suits you, do not waste more time and check our special packages for registering a Nevis Multiform Foundation. 

Registration Documents

In order to register a St. Kitts and Nevis foundation, some documents must be delivered to the Registrar. Some of them are the following:

1. An original copy of the memorandum of establishment and by-laws (if any) of the foundation.

2. A statement in the prescribed form signed by the subscriber and legally acknowledged, or signed by the registered agent on his behalf and duly witnessed, setting out:

(a) the foundation’s name and address of its registered office in Nevis;

(b) the particulars of the initial subscription transferred, or to be transferred, to the foundation;

(c) the particulars prescribed by the Registrar concerning the registered agent;

(d) the particulars prescribed by the Registrar concerning any person or persons who are to be the first management board;

(e) the particulars prescribed by the Registrar concerning any person or persons who are to be the first supervisory board;

(f) the particulars prescribed by the Registrar concerning any person who is to be the first secretary;

(g) an undertaking, in the case of a tax resident foundation, that the management board shall forthwith notify the Minister, by notice in writing, if the multiform foundation ceases to be a tax resident foundation;

(h) a statement as to its initial multiform;

(i) a statement as to whether or not the by-laws are to be made available for public inspection.

This especially applies to Multiform Foundations, and even though it might seem a lot, the process can run smoothly with the proper help. If you would like to ensure your success, our team of experts can provide you with excellent guidance and assistance. 

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Tax Benefits of a St. Kitts and Nevis Foundation

Choosing St. Kitts and Nevis offers many taxation benefits to international companies and foundations. There is no requirement for a stamp or capital gain tax on foundations in this country.

Additionally, there is no restriction on the accumulation of income on offshore foundations in Saint Kitts and Nevis. These may include exemptions from income tax, social security tax, capital gains tax, wealth tax, death duty, and inheritance tax. Still, in terms of foundations, it might be even more beneficial. 

In other words, founders or beneficiaries are not taxed on income provided to or derived from the Foundation. This is because there is no personal income tax in St. Kitts and Nevis. Capital gains taxes are not imposed on individuals in St. Kitts and Nevis; therefore founders or beneficiaries of the Foundation are not taxed.

What Can We Do for You?

St. Kitts and Nevis Private Foundations regime offers a robust and simple frame that provides strong asset protection. All the advantages, details, and information previously given to you are just a fraction of what you can obtain when setting a foundation in this amazing country. 

And, as usual, here at Mundo, we can help you with it. We work with some of the best asset protection experts in St. Kitts and Nevis, which can help you set up your Foundation quickly and easily. We offer all primary services regarding your Foundation, from drafting the charter and registration to acting as a secretary or local foundation council member and offering additional tax and asset protection advice. Contact us right now.

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