Nevis
Nevis is an island of around 11,000 people located in the Caribbean. It forms part of a Federation with the larger sister island of St Kitts, and shares many laws with St Kitts but has its own parliamentary Assembly and can legislate for itself in certain areas. The local currency is the Eastern Caribbean dollar, which is pegged to the US dollar. The country was previously a British colony until gaining independence in 1983, when it adopted a democratic political system based upon the English Westminster model.
Southpac Trust Nevis Limited offers International Trusts, Limited Liability Companies (LLCs), Nevis Business Corporations (BCs) and Multiform Foundations in Nevis. It can also offer trust protector services, corporate managers for LLCs, corporate directors for BCs, and corporate management/supervisory board members and secretaries for foundations.
Legislation governing our Nevis products is available through the Nevis Financial Services Regulatory Commission website
Nevis International Exempt Trust
Key Features
- Assets settled into trust prior to a creditor’s cause of action accruing are fully protected from the date of settlement.
- Assets settled into trust more than one year after a creditor’s cause of action has accrued are fully protected from the date of settlement.
- Any creditor seeking to claim trust assets must pay a USD100,000 bond into the Nevis High Court prior to commencing proceedings.
- For a fraudulent transfer claim to be successful, the creditor must prove to the Nevis High Court, beyond reasonable doubt that the disputed transfer was made by the settlor with principal intent to defraud that particular creditor and had the effect of leaving the settlor unable to meet the creditor’s claim.
- Foreign judgments are not recognized to the extent they are inconsistent with Nevis trust legislation.
- Nevis international trusts are not subject to forced heirship legislation in jurisdiction of settlor or any trust beneficiary.
- Trusts may be of perpetual duration, allowing for the creation of multigenerational dynastic trusts.
- Robust confidentiality provisions make it an offence to disclose information relating to an international trust to a third party unless authorized or required by law to do so.
- Multiple trustees are permitted and while trust legislation does not make specific provision for custodian trustees, these are not precluded.
- A Nevis BC, LLC or foundation may act as a private trustee company of an unlimited number of trusts.
- Records of all trust assets and transactions must be retained at registered office of Nevis trustee or at such other place as the trustee(s) think fit.
Nevis LLC
Key Features
- Offer standalone creditor protection, and ‘double lock’ protection when used in conjunction with a trust.
- Dispositions of property to LLCs are protected from creditor clawback by fraudulent transfer provisions closely based on those found in Nevis trust legislation.
- Legislation allows single-member LLCs which can be member- or manager-managed.
- Sole remedy available against LLC member is a non-renewable three-year charging order over membership interest, with no power to force distributions, interfere in management decisions or cause the LLC to be liquidated. This remedy is available only from the Nevis High Court: foreign judgments are not enforceable.
- Any creditor seeking to enforce a judgment against an LLC or LLC member in Nevis must pay a bond into the Nevis High Court prior to commencing proceedings, with the Court determining the amount of the bond.
- Identity of managers, members and beneficial owners is held by Nevis registered agent and is not retained in any centralized register.
- LLC accounts and transactional records must be retained by Nevis registered agent or at such other place as LLC management thinks fit.
- LLCs must file a Simplified Tax Return in Nevis each year which confirms where the LLC is managed and controlled from and therefore where it is tax resident. Only LLCs which are tax resident in Nevis are liable to Nevis income tax.
Nevis Business Corporation
Key Features
- Lower levels of formality, filing and regulation compared to many other international company jurisdictions.
- Sole shareholders and directors are permitted and directors need not be resident in Nevis. Secretaries are optional.
- Identity of directors, shareholders and beneficial owners is held by Nevis registered agent and is not retained in any centralized register.
- Business Corporation accounts and transactional records must be retained by Nevis registered agent or at such other place as directors think fit. BCs must file a Simplified Tax Return in Nevis each year which confirms where the BC is managed and controlled from and therefore where it is tax resident. Only BC which are tax resident in Nevis are liable to Nevis income tax.
Nevis Multiform Foundation
Key Features
- Assets transferred to foundation prior to a creditor’s cause of action accruing are fully protected from the date of transfer.
- Assets transferred to foundation more than one year after a creditor’s cause of action has accrued are fully protected from the date of transfer unless that creditor has already commenced proceedings against the founder in respect of that cause of action.
- Assets transferred to foundation within one year of a creditor’s cause of action accruing are fully protected if the creditor fails to commence proceedings in respect of that cause of action within six months of the date of transfer.
- Flexible legislation allows foundations to take the form of a trust, company or partnership but remain subject to foundation legislation.
- Foreign judgments are not recognized.
- Foundations are not subject to forced heirship legislation in jurisdiction of founder or any beneficiary.
- Foundations may be established for indefinite periods.
- Foundations may be for charitable or non-charitable, and commercial or non-commercial, purposes.
- Robust confidentiality provisions make it an offence to disclose foundation information without authorisation.
- Foundation powers are exercised by a management board, which may be single-member, with optional oversight by a supervisory board. A secretary must be appointed and must be a person or entity other than a sole member of a management board.
Additional Advantages of Nevis
- Applications for Mareva Injunctions against Nevis international trusts are not permitted.
- Income generated from international trusts and foundations is not subject to Nevis income tax, although must generally be reported and may be taxable in the home jurisdictions of settlors, beneficiaries and/or other controlling persons.
- Nevis does not have beneficial ownership registers. Beneficial ownership information must be retained by trustee companies/registered agents and disclosed to the Nevis authorities on request.
- Proximity and similar time zone to east coast of USA makes maintaining contact with trustee/registered agent easier.