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By: Estefanía Alemán – Partner | Icaza, González-Ruiz & Alemán
This memorandum provides a comprehensive analysis of the legal framework governing trustee eligibility for Nevis International Exempt Trusts. It examines the interplay between two principal statutes — the Nevis International Exempt Trust Ordinance (“NIETO”), as amended through Ordinance No. 2 of 2015, and the Trust and Corporate Service Providers Ordinance, 2021 (the “TCSP Ordinance”) — to clarify who may lawfully act as trustee, under what conditions, and when a regulatory license is required.
Executive Summary
The NIETO requires that at least one trustee of a Nevis International Exempt Trust be a qualifying entity with a nexus to Nevis. Five categories of qualifying trustees are enumerated in Section 2 of the NIETO. A private individual may not serve as sole trustee but may act as co-trustee alongside a qualifying entity.
Separately, the TCSP Ordinance regulates the provision of trust services as a commercial activity. A Nevis corporation or LLC that is not licensed as a trust company may nonetheless act as trustee, provided it does not carry on “trust business” — defined as providing trust-related services for profit or reward. In practice, this means an unlicensed entity must operate within the parameters of what the industry describes as a Private Trust Company (“PTC”): serving only a specific family or related group of trusts, rather than the general public.
Legislative Framework
Two principal statutes govern trustee eligibility and the regulation of trust services in Nevis.
Nevis International Exempt Trust Ordinance (NIETO). Originally enacted in 1994 and most recently amended by Ordinance No. 2 of 2015, the NIETO establishes the legal framework for the creation, administration, and validity of Nevis International Exempt Trusts. Section 2 defines “international trust” and sets forth the categories of persons eligible to serve as trustee.
Trust and Corporate Service Providers Ordinance, 2021 (TCSP Ordinance). Administered by the Nevis Financial Services Regulatory Commission (“NFSRC”), the TCSP Ordinance regulates entities that carry on “trust business” in or from within Nevis. It defines “trust business,” prescribes the regulated activities, and mandates licensing for entities that provide such services for profit or reward to the general public.
Who May Act as Trustee Under the NIETO?
Section 2 of the NIETO provides that, for a trust to qualify as an “international trust,” at least one of its trustees must fall within one of the following five categories:
| # | Category of Qualifying Trustee | Governing Legislation |
|---|---|---|
| (i) | A corporation incorporated under the Nevis Business Corporation Ordinance | Cap. 7.01 (N) |
| (ii) | A limited liability company (LLC) formed under the Nevis Limited Liability Company Ordinance | Cap. 7.04 (N) |
| (iii) | A trust company licensed in Nevis | Applicable licensing legislation |
| (iv) | An attorney-at-law or firm of attorneys-at-law duly licensed by the Nevis Island Administration to carry on business as a registered agent | Registered Agents Licensing legislation |
| (v) | A multiform foundation established and registered under the Multiform Foundations Ordinance, 2004 | Multiform Foundations Ordinance, 2004 |
Note on the 2015 amendments: The 2015 amendments significantly expanded the original 1994 list, which had only permitted (i) a corporation incorporated under the Nevis Business Corporation Ordinance or (ii) a trust company doing business in Nevis. Categories (ii), (iv), and (v) were added by Ordinance No. 2 of 2015.
Provided at least one trustee meets the above requirements, additional trustees — including foreign entities, foreign trust companies, or natural persons — may also serve as co-trustees.
Can a Private Individual Act as Trustee of a Nevis Trust?
A natural person, in his or her personal capacity, does not fall within any of the five qualifying categories enumerated in Section 2 of the NIETO. Accordingly:
- A private individual may not serve as the sole trustee of a Nevis International Exempt Trust.
- A private individual may serve as a co-trustee, provided that at least one other trustee satisfies the qualifying requirements set forth in Section 2 of the NIETO.
Where a private individual or family wishes to maintain closer control over trust administration, the common practice is to establish a Private Trust Company (“PTC”) — a Nevis entity formed for the sole purpose of acting as trustee. This structure allows the individual to control the PTC (and thus the trust) while satisfying the statutory requirements. This mechanism is discussed in detail below.
Licensing Requirements Under the TCSP Ordinance, 2021
Definition of “Trust Business”
Section 2 of the TCSP Ordinance defines “trust business” as the business of engaging in the activities outlined under Section 6 of the Ordinance for profit or reward.
Regulated Activities (Section 6)
Section 6 identifies the following as trust business:
- Acting as a professional trustee, or arranging for another person to so act;
- Acting as a protector of a trust;
- Managing or administering any trust;
- Providing any other services on behalf of a beneficiary or purpose of a trust in a fiduciary capacity.
Licensing Prohibition (Section 7(1))
Section 7(1) provides: “No person shall carry on any regulated activities or hold themselves out as carrying on such activity in or from within Nevis unless that person holds a valid licence.”
License Classes
| License Class | Scope of Permitted Activities |
|---|---|
| Class II (Restricted) | Register trusts and provide registered office / registered address services for trusts only. |
| Class II (Unrestricted) | All activities permitted under a Restricted license, plus carrying on trust business — i.e., acting as professional trustee, protector, administrator, and other fiduciary services for clients on a commercial basis. |
Unlicensed Nevis Entities Acting as Trustee: The Private Trust Company (PTC)
The PTC Is Not a Statutory Form
“Private Trust Company” or “PTC” is not a legal form defined or required by any Nevis statute. It is an industry label — a functional description used by practitioners to describe a Nevis entity whose sole purpose is to act as trustee of a specific trust or group of related trusts, without providing trust services to the general public.
The Legal Test: “Trust Business for Profit or Reward”
The licensing requirement under the TCSP Ordinance is triggered by two cumulative elements:
- The entity engages in the activities listed in Section 6 (acting as trustee, protector, administrator, etc.); AND
- It does so “for profit or reward” — meaning on a commercial, compensated basis to the general public.
An unlicensed Nevis corporation or LLC may therefore lawfully act as trustee when its activities do not constitute “trust business” as defined — specifically, when it does not provide trust services for profit or reward to the general public.
Scenarios Where No License Is Required
| # | Scenario | Rationale |
|---|---|---|
| 1 | Family PTC — A corporation incorporated solely to act as trustee of a specific family trust or group of related trusts | Does not conduct trust business with the general public for profit or reward. |
| 2 | Single-Purpose Corporate Trustee — A corporation established to act as trustee of one specific trust, without offering services externally | Not engaging in commercial trust business. |
| 3 | Related-Group Trustee — A corporation serving as trustee for a series of trusts settled by the same settlor or related settlors for connected purposes | Trust services are confined to a related group; no public offering of trust business. |
Services a PTC May Provide Without a License
Within the permissible scope, an unlicensed PTC may provide the full range of trustee services for its designated trusts, including:
- Fiduciary services — holding legal title to trust assets;
- Investment advisory and management — making investment decisions for the trust;
- Wealth management — overseeing trust portfolios;
- Administrative services — maintaining trust records, accounts, and correspondence;
- Banking operations — opening and operating offshore bank accounts and brokerage accounts in a fiduciary capacity on behalf of the trust;
- Asset holding — holding specialized or unconventional assets (works of art, family businesses, real estate portfolios, etc.).
Typical PTC Structure and Governance
| Element | Details |
|---|---|
| Eligible Entity Type | Nevis International Business Corporation (IBC) incorporated under Cap. 7.01 (N), or Nevis LLC formed under Cap. 7.04 (N). |
| Board of Directors | May include the Settlor, family members, trusted advisors, or nominee directors. |
| Shareholders | At least one shareholder; a nominee shareholder may be used for arm’s-length purposes. |
| Ownership Structure | The PTC itself may be owned by a Purpose Trust or a Foundation for additional layers of confidentiality and succession planning. |
| Director Privacy | In Nevis, there is no public record of company directors, ensuring a high degree of confidentiality. |
| Professional Oversight | A professional service provider typically acts as administrator to assist the board with corporate governance and trustee compliance considerations. |
| Incorporation Timeline | Typically 1–2 business days; shelf companies are also available. |
When Is a License Required?
The dividing line between permissible unlicensed trustee activity and regulated trust business is determined by the nature and scope of the entity’s activities. A Nevis corporation or LLC must obtain a Class II Unrestricted license from the NFSRC when:
- It acts as a professional trustee for unrelated third parties;
- It markets or holds itself out as providing trust services to the general public;
- It charges fees for acting as trustee to clients who are not part of the family or related group;
- It provides trust services for profit or reward in any capacity that constitutes “trust business” under Section 2 of the TCSP Ordinance.
Critical distinction: The NIETO’s inclusion of a Nevis corporation (sub-paragraph (i) of Section 2) and an LLC (sub-paragraph (ii)) as qualifying trustees is separate from and independent of the licensing requirement under the TCSP Ordinance. A corporation or LLC may satisfy the NIETO’s trustee eligibility requirement without holding a license, provided it does not engage in trust business for profit or reward.
Summary Table
| Scenario | Permitted? | License Required? |
|---|---|---|
| Private individual as sole trustee | No | N/A |
| Private individual as co-trustee (with a qualifying Nevis entity) | Yes | No |
| Licensed trust company acting as trustee | Yes | Yes (held by the trust company) |
| Licensed attorney / registered agent acting as trustee | Yes | Licensed as registered agent |
| Nevis corporation (IBC) acting as trustee of a family / related trust (PTC) | Yes | No |
| Nevis LLC acting as trustee of a family / related trust (PTC) | Yes | No |
| Multiform foundation acting as trustee | Yes | No |
| Nevis corporation or LLC offering trust services to the general public for profit | Only with license | Yes (Class II Unrestricted) |
| PTC owned by a Purpose Trust or Foundation for additional confidentiality | Yes | No |
Frequently Asked Questions
Can a foreigner be a trustee of a Nevis International Exempt Trust? Yes, as a co-trustee. Foreign individuals, foreign entities, and foreign trust companies may all serve as co-trustees, provided that at least one trustee satisfies the qualifying requirements under Section 2 of the NIETO.
What is the fastest way to establish a qualifying trustee in Nevis? Incorporating a Nevis IBC or LLC to serve as a Private Trust Company is typically the most efficient path. Incorporation can be completed in 1–2 business days, and no trust license is required for a family PTC.
Does a Nevis PTC need to be managed from outside Nevis? For the PTC to remain outside the scope of “trust business” under the TCSP Ordinance, it should not hold itself out as offering trust services to the general public or charge commercial fees to unrelated third parties. Management location is a factual consideration that should be reviewed with qualified Nevis counsel.
Can the Settlor also control the PTC? Yes. The Settlor may serve on the board of the PTC or hold (directly or indirectly) its shares, allowing a high degree of retained influence over trust administration while satisfying the NIETO’s trustee eligibility requirements.
Conclusion
The Nevis legislative framework provides significant flexibility in the appointment of trustees for International Exempt Trusts. The NIETO permits five categories of qualifying trustees, while the TCSP Ordinance draws a clear regulatory boundary between private trust activities and commercial trust business.
For clients seeking to maintain direct control over trust administration without the cost and regulatory burden of a licensed trust company, the establishment of a Private Trust Company — structured as a Nevis IBC or LLC — offers a practical and legally sound solution. The PTC may serve as trustee of a family trust or a related group of trusts without requiring a license, provided it does not offer trust services to the general public for profit or reward.
Icaza, González-Ruiz & Alemán has advised on Nevis trust structures for clients across Latin America, Europe, and Asia since 1920. We recommend that clients considering this structure engage qualified legal counsel to ensure compliance with both the NIETO and the TCSP Ordinance, and to tailor the PTC’s corporate governance framework to the specific needs of the trust arrangement.
