Establishing a Private Foundation in Saint Kitts & Nevis

There are many locations around the world that offer the facility to set up offshore foundations, but one of the most popular is the island of Nevis, part of the small Caribbean nation of St. Kitts and Nevis.

Nevis is one of the leading jurisdictions in the world for registering a private foundation; it is safe and secure and has a beneficial tax system. As far as offshore foundations incorporation go, Nevis is an exemplary choice for you to consider.

Registering a foundation in Saint Kitts and Nevis can offer a variety of advantages, especially for those seeking a jurisdiction with strong asset protection, tax benefits, and a flexible legal framework. Saint Kitts and Nevis is a well-established offshore jurisdiction that provides a conducive environment for foundations, whether they are used for wealth preservation, succession planning, or charitable purposes. Here are some of the key advantages:

Favorable Tax Regime

• No Income, Capital Gains, or Inheritance Taxes: One of the biggest attractions of registering a foundation in Saint Kitts and Nevis is the absence of direct taxes. The country does not impose income tax, capital gains tax, inheritance tax, or estate tax, which can be a significant advantage for those looking to minimize their tax burden.
• Tax Exemptions for Charitable Purposes: Foundations that are established for charitable or non-profit purposes may qualify for tax exemptions, which further enhances the attractiveness of this jurisdiction for philanthropic activities.

Strong Asset Protection

• Protection from Creditors: Foundations in Saint Kitts and Nevis offer robust asset protection. The jurisdiction has strong laws that help shield the foundation’s assets from creditors, legal claims, or judgments, especially when the foundation is set up with proper legal structures.
• Separation of Assets: The assets held within the foundation are distinct from the personal assets of the founder. This separation provides a layer of security, ensuring that the founder’s personal assets are protected from legal actions or creditors.
• Protection from Forced Heirship Laws: Saint Kitts and Nevis allows for greater flexibility in succession planning. If you are from a jurisdiction that enforces forced heirship laws, a foundation can be a tool to ensure assets are distributed according to your wishes, bypassing local inheritance laws.

Confidentiality and Privacy

• High Levels of Privacy: Saint Kitts and Nevis offers strong privacy protections for foundation founders and beneficiaries. There is no requirement for the foundation to disclose the identity of the founder or the beneficiaries in public records. Only the foundation’s name, its registered address, and other basic details are required to be filed with the Registrar.
• Confidential Governance: The foundation can be structured in such a way that the founder retains discretion over the activities of the foundation without disclosing their identity, providing a high level of confidentiality.

Flexibility in Foundation Structures

• Purpose and Governance: The foundation laws in Saint Kitts and Nevis are flexible, allowing the foundation to be established for a wide variety of purposes—whether for wealth preservation, charitable work, or family governance. The founder can determine the specific governance structure, including the role of the council or board of directors, ensuring it meets their specific needs.
• Founder Control: The founder can retain control over the foundation even after it is established. Depending on the structure, the founder can appoint or remove the members of the foundation's council or board, giving them continued influence over the foundation’s direction.

Succession Planning and Estate Management

• Smooth Wealth Transfer: Foundations are an effective tool for succession planning, especially for individuals who wish to transfer wealth across generations without going through the probate process. The founder can set specific instructions regarding the management and distribution of assets, ensuring the wealth is transferred according to their wishes.
• Avoidance of Probate: Since a foundation is a separate legal entity, its assets can be passed to beneficiaries or heirs without the need for probate, saving time and money and reducing the risk of disput

Legal Certainty and Stability

• Common Law Legal System: Saint Kitts and Nevis operates under a common law system that is similar to the legal systems found in the United States and the United Kingdom, providing a high level of legal certainty for those who establish foundations there.
• Foundation Act (2003): The country’s foundation laws, particularly the Saint Kitts and Nevis Foundation Act (2003), provide a clear legal framework for the formation and operation of foundations. This ensures that foundations established in the jurisdiction are recognized under law, offering clarity and security for founders.

Reputation and Global Accessibility

• International Recognition: Saint Kitts and Nevis is a well-respected jurisdiction for offshore financial services. Its legal and regulatory framework is in line with international standards, which helps enhance the reputation of foundations established there.
• Global Business Opportunities: Being an international financial center, foundations in Saint Kitts and Nevis can engage in global business activities, including investment management and international charitable initiatives.

Cost-Effective

• Affordable Setup and Maintenance: Compared to other offshore jurisdictions, registering and maintaining a foundation in Saint Kitts and Nevis tends to be cost-effective. There are relatively low fees for foundation registration and minimal annual filing and maintenance costs.
• No Ongoing Reporting Requirements for Certain Purposes: If the foundation is established for non-commercial purposes, there are limited ongoing reporting and compliance requirements, reducing the administrative burden on founders.

International Asset and Investment Management

• Holding and Managing Investments: Foundations in Saint Kitts and Nevis can hold a wide range of assets, including real estate, stocks, bonds, and other investments. The flexibility in investment management allows founders to structure their foundation to meet their financial objectives.
• Philanthropy: For those interested in establishing charitable or philanthropic foundations, Saint Kitts and Nevis provides a platform for operating charitable activities while benefiting from tax exemptions and other incentives.

Ease of Administration

• Simple Setup Process: The process of setting up a foundation in Saint Kitts and Nevis is straightforward and can typically be completed in a short period. The documentation and filing requirements are relatively simple and designed to be accessible.
• No Requirement for Physical Presence: The foundation can be managed remotely, and the founder does not need to be physically present in Saint Kitts and Nevis to administer the foundation.

Strong International Asset Protection Laws

• Legal Protection Against Foreign Judgments: Saint Kitts and Nevis has strong laws protecting foundations from foreign judgments, ensuring that the assets held by a foundation are not subject to foreign court orders. This is a significant advantage for individuals or entities operating in multiple jurisdictions.

Saint Kitts and Nevis offers a highly attractive jurisdiction for registering foundations due to its favorable tax regime, robust asset protection laws, flexible legal framework, and high levels of privacy and confidentiality. Whether you are looking to preserve wealth, plan for succession, manage assets, or engage in philanthropy, the jurisdiction offers a comprehensive range of advantages. However, it is always advisable to consult our Legal and Financial experts familiar with Saint Kitts and Nevis to ensure that the foundation is set up in the most efficient and compliant manner for your specific needs.

Nevis Foundation requirements

Uses of a Nevis Foundation

A private foundation in Nevis in a legal sense has no owner; this is beneficial to many as the foundation therefore has assets that are not owned by any single person, but the entity itself. Critically, this means private foundations start-up 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.

Why register a Private Foundation in Nevis?

Legal requirements to register a Private Foundation in Nevis

This jurisdiction offers many advantages if you are looking to set up an offshore foundation, including exemption from local taxation, the ability to manage the foundation from overseas, and a guarantee of privacy for those setting up and running a foundation, thanks to the St. Kitts and Nevis Confidentiality Act 1985.

There are, however, certain legal requirements that you need to fulfill to set up a Nevis private foundation. Although a foundation can be created by just one individual, 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.

Why not contact TBA today to speak to one of our advisors on private foundation start-up in Nevis? Our experts will guide you towards the correct package for you and your foundation’s needs.