Nevis

The registration of companies in Nevis does not impose an obligation on them to form share capital. Its value is determined by the founders themselves. The minimum composition of the company is one individual. Offshore companies in Nevis are registered in the form of an LLC. They are similar to LLCs, for which there are no restrictions on the number and nationality of employees. The legislation provides for the issue of shares — registered, bearer shares. The activities of non-resident companies are subject to a zero rate of income tax.

The area is optimal for the development of shipping companies. The legislation is particularly loyal to the building of international relations and close cooperation between representatives of different jurisdictions.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Jurisdiction advantages

  1. The country remains politically stable.
  2. The government is interested in financial investment and is taking measures to support the business community for this purpose.
  3. There are no taxes on income, wealth, inheritance or capital gains.
  4. Offshore companies do not pay income tax if they derive their income from trade with Canada and the Caribbean.
  5. There are no annual financial reporting obligations, which may change in the near future (if the Nevis Income Tax Act is passed).
  6. No minimum amounts for share capital or residency of shareholders.
  7. 100% foreign ownership of a business, including by a single person, is allowed.
  8. No currency restrictions.
  9. It is possible to register a company on the island of Nevis remotely, which also applies to opening a corporate account with a bank in the jurisdiction.
  10. A foreign founder can easily transfer his or her business to and from Nevis, which is allowed by local law.
  11. Information security. There is no requirement to disclose the personal details of the founders here. They are not entered in the register and are not subject to disclosure.
  12. Limited liability. The LLC does not provide for liabilities outside the company's assets in the event of arrears. Business owners in such a situation will not be responsible for their own real estate and other liquid assets.
  13. Simplicity. Registration of a company in Nevis does not require personal presence. We will do all the work and send the documents by DHL.
  14. Loyalty to legislation. A flexible management system significantly expands the competence of management bodies. The company has the freedom to develop without strict constraints.

General information on registration

In order for a foreign company in Nevis to become active internationally in just a few days, you should follow the established algorithm of actions:

  1. Register a unique company name.
  2. Prepare documents as required to form a business in Nevis.
  3. Obtain a seal for the company, which will be required to register a bank account.
  4. Apply for a business licence from the Ministry of Finance or the Finance Commission (only applies to certain areas of business).
  5. Open a corporate account.
  6. If you plan to operate directly on the island of Nevis, the next step is to register as an employer with the Social Security Administration.

Note: For offshore companies planning to do business outside Nevis, points 3, 4 and 6 are excluded.

Registering a business in Nevis: Documents

The list of documents for forming an international company on the island of Nevis may be edited by the country's regulatory authorities, which is better to clarify in advance. The standard set of documents includes:

  1. A copy of the passport of each founder, shareholder and director of the company, translated into the state's official language and certified by a notary. For residents of the USA, Canada and EU countries, a copy of your driving licence is permitted.
  2. A copy of the client's bank certificate of financial solvency.
  3. Utility bills, which must include the residential address and the name of the payer.
  4. A letter of recommendation from a lawyer, accountant, employer or business partner.
  5. Application in the prescribed form.

Taxation

In March 2020, the island nation's Ministry of Finance announced that the federal government of St Kitts and Nevis was committed to amending the Income Tax Act by the end of the year. This should provide a clear definition of tax residency based on centralised management and control.

In simple terms, according to the recommendations of the OECD and the FATF, the government decided to supplement the internal regulations with a number of points:

  1. If the main management and control of the business is in Nevis and St Kitts, the company is subject to corporation tax on worldwide profits;
  2. if the centralised office is located outside the jurisdiction, the tax will remain at the same level – 0%.

If an offshore company is recognised as a tax resident of Nevis, the company will have to file a declaration by 15April of each year.

Important! At the time of writing, Nevis has not yet passed an amendment to the tax legislation, which preserves the previously established rules on the taxable income of all incorporated foreign companies.

International companies in Nevis do not pay tax on profits earned in another state and are exempt from declaring income and financial reporting.

Royalties, dividends and interest are tax-free.

Also in 2020, foreign founders have a unique opportunity to open a tax-exempt trust on the island of Nevis.

Registration of LLC

An LLC is a limited liability company that can be easily set up as a trust company in Nevis and used extensively for business purposes. Corporate requirements for the formation of an LLC in the Caribbean island state (Nevis) in 2020:

  1. Share capital – not applicable.
  2. Restrictions on trading activities: Transactions within the Federation of St Kitts and Nevis.
  3. An LLC may not engage in banking, insurance, fund management, collective investment schemes or exercise trust management.
  4. Like any other company registered in Nevis, an LLC must have a local office from a licensed service provider.
  5. Shareholder and director – at least one individual/legal entity of any nationality and residence.
  6. In Nevis, the use of a nominee service is allowed, which will completely close the information about all shareholders.
  7. Publicity of data – the following information is transmitted to the public register of companies
    1. name of the corporation;
    2. registered agent;
    3. address;
    4. the total number of shares the corporation is authorised to issue;
    5. the purpose, preferences, restrictions and relative rights in respect of each class of shares;
    6. the number of registered shares, if bearer shares are authorised, the rights and obligations of bearer shareholders;
    7. the names and addresses of the original directors and the name and address of the founder;
    8. Articles of association
  8. Shareholders' meeting – any country in the world, including remote conference format.
  9. Income tax – 0%.
  10. An annual declaration is not filed, nor is an audit carried out.
  11. The company name may be in English with the obligatory indication of the form of business (LLC), but without the use of word forms such as: "Assurance", "Bank", "Building Society", "Royal", "Trust Company", "Trustee Company" and other licensed activities.

International Business Company Corp (IBC)

One of the most common forms of business on the island of Nevis in the Caribbean is an IBC, which has its advantages:

  1. Zero corporate tax rate.
  2. Asset protection.
  3. Prospects for trade and investment activities in an international format.

IBC companies in Nevis: requirements

  1. The share/authorised capital of a Nevis Business Corporation is 100,000 USD and the minimum paid-in share is only 1 USD.
  2. All types of shares are available – with or without par value, registered, with voting rights, preference shares and bearer shares. The latter must be kept at the registered office.
  3. BC companies in Nevis are not allowed to trade within the place of business incorporation, including St Kitts, and are also restricted in their licensed areas of operation.
  4. A registered office and a local agent are 2 mandatory requirements.
  5. The Director of a BC in Nevis is 1 person, including the corporate manager of a foreign country.
  6. The shareholders of the company are a minimum of 1 citizen or legal entity.
  7. There are no requirements for annual accounts, tax returns, audits, foreign exchange controls, or local shareholders' meetings.
  8. The company name must include "Limited", "Corporation", "Incorporated", "Societe Anonyme", "Sociedad Anonima" or Ltd, Corp, Inc, S.A., and not echo other corporations.

Background: To protect a company's corporate name, an IBC can apply for a trademark (TM), thereby obtaining the intellectual rights to a unique name.

Multiform Foundation registration

In 2020, you can register a Multiform Foundation in Nevis, and then transform it into a trust, partnership, international company, or charitable foundation.

Nevis's Multiform Foundations have their own characteristics:

  1. Foundation registration requires a founder (individual/legal entity), secretary, registered agent.
  2. The purpose of forming this form of business can be any of those available, except those prohibited by law.
  3. The secretary can be either an individual or a legal entity, but is not entitled to remain the sole member of the board of directors.
  4. A minimum of 2 meetings per year in the country of registration is mandatory.
  5. Minutes of meetings and conferences should be documented by the secretary.
  6. Foundation activities and property rights shall have no economic presence in Nevis and shall be located only outside Nevis.

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