Nevis Multiform Foundations Ordinance
The New Multiform Foundations Ordinance put into effect on October 1, 2005 provides a flexible hybrid multiform of foundation into the Nevis international financial services sector. The Nevis Multiform Foundation is a legal entity where a subscriber can personally develop the shape of the foundation, taking in mind the rules that define it. Therefore, each Nevis foundation will have a stated multiform meaning that the foundation`s constitution will state how it should be treated (as a company, a trust, a partnership, etc.). The identity of the foundation can be changed throughtout its lifetime through the multiform concept. This allows more flexibility in the use and applications.
The Nevis Multiform Foundations Ordinance allows entities to be transformed, continued or joined into Nevis Multiform Foundations. An entity set up in another country can be converted into a Nevis foundation. An existing Nevis entity can be converted into a Nevis Foundation. And any two or more entities from abroad or from Nevis can join into a Nevis Multiform Foundation. These characteristics make the Nevis Multiform Foundations Ordinance an interesting asset protection tool. Thera are many other characteristics that make the Nevis Multiform Foundations Ordinance interesting. The Nevis Multiform Foundation Ordinance provides confidentiality, transparency and corporate governance. As a result, the Ordinance states that the Nevis Multiform Foundations will be used for charity, financing, estate planning, investment holding, etc. The Nevis Multiform Foundation Ordinance includes a section on forced heirship making it known that any multiform foundation governed by Nevis cannot be void, voidable, or liable to be set aside or defective in any manner by reference to the law of foreign jurisdiction. The Ordinance states that the Foundation can become a tax resident in Nevis subject to an annual fee of USD$1,000.00. The Multiform will be subject to a 1% corporation tax of net income with a minimum tax payable of US$1,000.00 per year. This is especially important to some jurisdictions since it increases their flexibility.
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