IN082 - Use of a Managed Trust Company or Corporate Service Provider in Nevis

The Concept

Many banks, accountancy, legal, fiduciary and financial service firms have considered creating their own trust company in a tax-efficient jurisdiction, such as Nevis, but have concluded that the expense involved in setting up such an operation would not be justified.

An alternative is to establish a managed trust company. The benefits of an internal trust company can be enjoyed without incurring the high initial set up costs associated with forming your own office. Dixcart is able to assist in creating such a managed trust company in Nevis, a jurisdiction which does not appear on either the FATF or OECD black lists.

Benefits

• Additional revenue, and therefore profit opportunities, are available through the creation and administration of companies and trusts in Nevis.


• There are no costs in setting up a new office, in renting premises or recruiting staff.


• The managed trust company can have the same name as the professional firm. The clients are therefore satisfied that their affairs are kept within the responsibility of the same group.


• The managed trust company will be administered by professional and qualified staff with experience in international business.


• Client confidentiality and confidence is maintained.


• A wider range of services may be provided to target markets and existing clients.

How does it work?

An international business company established in Nevis would be incorporated to act as a trust company. For example, if ABC Limited wishes to establish a trust company in Nevis it will create ABC Trust Company (Nevis) Limited. Dixcart will administer the trust company on behalf of the parent, using Dixcart’s own qualified and experienced staff.

The clients of ABC will still be dealing with the ABC Group. A management agreement will be drawn up between ABC and Dixcart, which states that Dixcart will provide day to day support services with the ability to represent the trust company and deal with client relationships.

ABC may decide that it wants to deal directly with the client and will simply pass on routine advice to the trust company with regard to client matters, or it may decide that the Nevis Trust Company should have full responsibility for dealing directly with clients.

A licence under the corporate service provider legislation is required for the provision of trustee services if you are acting as a corporate service provider on the island. However, should you wish to act as a trustee, without establishing a physical presence on the island, a simple IBC can be formed with no requirement to be licensed.

Establishing a Corporate Service Provider in Nevis

Corporate service provider legislation is exacting in terms of the procedures necessary to operate from Nevis. Full background checks are undertaken to determine the integrity of the service provider. This is because the Island aims to appeal only to premier league international advisers.

Dixcart will deal with the application on your behalf. Amongst other things, we will need to provide the regulator with the following:-

• A list of the proposed shareholders, including proof of identification.


• A list of the proposed directors, together with their full names, addresses and nationality.


• A bank reference for each of the shareholders and proposed directors.


• A police report from the country of residence of each of the shareholders and directors, confirming the absence of any criminal convictions.


• A copy of the proposed manager’s CV, together with personal information, including their Social Security number and Driving Licence number.


• The name and address of the proposed bankers and auditors.


• A detailed proposal of the intended activities, due diligence procedures of the company, management structure and a financial forecast of the first year’s activity.

Establishment Costs

To cover the costs of the application and initial organisation of the company, we ask for a deposit of funds, which are held in our client account to meet the disbursements requested by the Government and the initial application fee.

The amount of the deposit will depend upon the level and complication of the application and the number of shareholders on whose behalf the application is being made. A guide to these costs is as follows:

A non returnable application fee, payable to the Nevis Government - *EC $1,500.00

Costs of a background check charged by the Nevis Financial
Investigation Unit - US $2,500.00

Landholding Licence (per shareholder) - *EC $250.00

Estimate of Dixcart time costs - US $5,000.00

(*East Caribbean Dollars)

Ongoing Costs for the Organisation of the Trust Company/Corporate Service Provider

An annual fee is payable to the Government of US $560. In addition, Dixcart Nevis would charge an annual management fee to deal with the day to day management and organisation of the company.

Our fees would be charged as agreed with you prior to commencement of the service. Typically, fees would be charged on either a participation basis or time occupied basis, or a combination of the two.

Summary

Many benefits can be generated by operating a dedicated trust company in Nevis. These benefits can be enjoyed without the costs of establishing a new office through the creation of a managed trust company.

Such a business will generate income for your firm while your clients’ affairs are kept under your firm’s umbrella, with management by experienced, professional Dixcart staff.

This is a practicable and cost effective way for your firm to extend the services you offer and the choice of jurisdictions available.

Contact

If you would like more information on this subject, please speak to John Terry at Dixcart Management Nevis Limited, or your usual Dixcart contact.