Offshore asset protection: the Nevis Multi-Form Fund

To protect offshore assets, we recommend registering a Nevis multiform fund rather than an LLC, partnership or corporation. This is a unique structure that allows the company to easily transform into the desired form of business - trust, LLC, partnership or other structure specified in the charter. The benefit is obvious: the foundation has no owner, so its assets are difficult to seize through the courts. Especially since Nevis recognizes only the decisions of its own courts, the statement of claim is expensive, the case is considered long, and the maximum limitation period is 2 years.

Nevis multiform fund: what is it

A Multi-Form Fund is type of offshore structure that is only found in Nevis. The person that founded it, as the founder, does not own the assets of the organization. Accordingly, if any property claims arise against the founder, there is nothing to give. If a creditor does file a claim, the founder can be temporarily excluded as a beneficiary while the lawsuit is pending.

Although the founder does not own the foundation, s/he can manage its structure, transform it into a trust, company, or partnership. The main thing is to indicate this in the charter. It is important to understand that the organization can have only one form for a certain period of time. To convert to another, you have to apply to the registrar.

Another plus - you can convert or transform an already existing organization, registered in another country, into a multi-currency fund. To do this you will need a certificate of termination in a foreign jurisdiction, revise the memorandum of incorporation.

Advantages of a Nevis multiform fund

• Full foreign ownership is allowed.
• Can engage in active business activities if the organization will act as a "partnership" or "company."
• Change of form at any time.
• Reliable protection of offshore assets from foreign court judgments.
• Confidentiality for founders and benefactors as the law prohibits disclosure of this information.
• Organization can choose which information to make public.
• Non-recognition of foreign court judgments.
• No taxes for offshore. If necessary, organization can become a resident. In this case tax is 1%, registration fee of $1k will be required.
• Closed registry, which allows the founder to remain unrecognized.
• Founder can determine who inherits assets.

Requirements for a Nevis multi-form fund

There are 4 basic requirements the organization must meet:

• Hire a registered agent, for which contact IT-OFFSHORE experts.
• Have a registered office on the island.
• Appoint a board of directors and secretary.
• Develop an articles of incorporation.

How to register a multiform fund

To register a multi-form fund in Nevis, you must first choose one of the following forms:

• LLC;
• partnership;
• company;
• trust.

At the end of the registered name must be "FDN" (Foundation). In the incorporation documents, it must be specified in what form the company will now be incorporated.

Once the form is determined, a registered agent must be engaged and the memorandum and articles of association must be filed with the Nevis Registrar of Companies. To open a multi-form company in Nevis, you will need the following information:

• The name of the foundation.
• The names and addresses of the board members and the persons who are on the supervisory board.
• An indication of whether the organization is offshore or a tax resident.
• Purposes of the company.
• Type of fund - revocable or not.
• Bylaws (if any).
• A statement stating what type of legal entity the company will have now, at the time of incorporation.
• Legal address.
• Duration - indefinite is allowed.

If the documents are in order, the founder receives a Certificate of Incorporation. The certificate confirms the registration and contains the date and number. Once the Certificate is issued, the organization becomes an independent legal entity.

Annual meetings can be held anywhere in the world, video or telephone is allowed. The company is required to keep accounting records. These records must be available to its board at all times, but not for public information.